S. 2489 – Modular Housing Production Act

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Updated November 23, 2025 at 11:09 PM UTC

The Modular Housing Production Act requires the Department of Housing and Urban Development (HUD) to review Federal Housing Administration (FHA) construction financing programs for obstacles that limit modular and manufactured home developers, and to propose changes. HUD must issue a report within a year and begin rulemaking on an alternative loan draw schedule within 120 days of the report. The bill also allows HUD to fund a study on creating a standardized coding system for modular home components to improve design, construction, and financing.

Key Provisions

HUD must conduct a review of FHA construction financing programs to identify regulatory and programmatic barriers for modular home developers, including construction draw schedules.
Within one year of enactment, HUD must publish a report describing the review findings and recommending policy changes to reduce identified barriers.
Within 120 days after the report, HUD must start rulemaking on an alternative loan draw schedule for modular and manufactured home projects, and either issue a final rule or explain why it will not be finalized.
HUD may award a grant to study a standardized uniform commercial code for modular homes, evaluating its usefulness for serializing modules, streamlining design and construction, and linking to financing incentives, with appropriations authorized as needed.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

July 28, 2025

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SenateIntro Referral

Introduced in Senate

July 28, 2025

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

July 28, 2025

Bill Text

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Introduced in SenateIssued July 28, 2025

II

119th CONGRESS

1st Session

S. 2489

IN THE SENATE OF THE UNITED STATES

July 28, 2025

Ms. Warren (for herself and Mr. Banks) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To conduct a review of Federal Housing Administration construction financing programs, and for other purposes.

1.

Short title

This Act may be cited as the Modular Housing Production Act.

2.

Definitions

In this Act:

(1)

Manufactured home

The term manufactured home has the meaning given the term in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).

(2)

Modular home

The term modular home means a home that is constructed in a factory in 1 or more modules, each of which meet applicable State and local building codes of the area in which the home will be located, and that are transported to the home building site, installed on foundations, and completed.

(3)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

3.

FHA construction financing programs

(a)

In general

The Secretary shall conduct a review of Federal Housing Administration construction financing programs to identify barriers to the use of modular home methods.

(b)

Requirements

In conducting the review under subsection (a), the Secretary shall—

(1)

identify and evaluate regulatory and programmatic features that restrict participation in construction financing programs by modular home developers, including construction draw schedules; and

(2)

identify administrative measures authorized under section 525 of the National Housing Act (12 U.S.C. 1735f–3) to facilitate program utilization by modular home developers.

(c)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall publish a report that describes the results of the review conducted under subsection (a), which shall include a description of programmatic and policy changes that the Secretary recommends to reduce or eliminate identified barriers to the use of modular home methods in Federal Housing Administration construction financing programs.

(d)

Rulemaking

(1)

In general

Not later than 120 days after the date on which the Secretary publishes the report under subsection (c), the Secretary shall initiate a rulemaking to examine an alternative draw schedule for construction financing loans provided to modular and manufactured home developers, which shall include the ability for interested stakeholders to provide robust public comment.

(2)

Determination

Following the period for public comment under paragraph (1), the Secretary shall—

(A)

issue a final rule regarding an alternative draw schedule described in paragraph (1); or

(B)

provide an explanation as to why the rule shall not become final.

4.

Standardized uniform commercial code for modular homes

(a)

Award

The Secretary may award a grant to study the design and feasibility of a standardized uniform commercial code for modular homes, which shall evaluate—

(1)

the utility of a standardized coding system for serializing and securing modules, streamlining design and construction, and improving modular home innovation; and

(2)

a means to coordinate a standardized code with financing incentives.

(b)

Authorization of appropriations

There is authorized to be appropriated such funds as may be necessary to carry out subsection (a).