Official Support for Manufactured and Modular Housing

by Dan Krell © 2010

Politicians don’t always vote along party lines. Take for example House Resolution 584, which passed the House of Representatives on vote of 408 to 4 (19 not voting). Timing notwithstanding, the resolution entitled “Recognizing the importance of manufactured and modular housing in the United States,” was overwhelmingly passed in anticipation of National Homeownership Month (which is June); and as of May 25th 2010, recognizes the third week of June as Manufactured and Modular Housing Week.

H. Res. 584 (thomas.loc.gov) recognizes that manufactured and modular housing is not only critical in meeting the housing needs of the country, but it is also a viable industry that employs approximately 70,000 factory and retail employees that generates annual sales of approximately $6Billion. Additional recognition is directed to the use of cutting edge technology and high production standards in the construction of manufactured and modular homes; production facilities adhere to the National Manufactured Housing Construction and Safety Standards Act of 1974, which governs construction, engineering, quality, safety, and systems performance, as well as promoting innovation in safety and efficiency.

According to the Manufactured Housing Institute (factorybuilthousing.com) and the National Modular Housing Council (modularcoucil.org), a manufactured home is built in a controlled environment and then shipped to the site for installation; modular homes are built from components that are fabricated in the controlled environment and then shipped to the home site to be assembled. The MHI includes panelized and pre-cut homes in the definition as manufactured housing. Manufactured and modular homes are built to meet or exceed state and local housing codes, as well as federal Manufactured Home Construction and Safety Standards (also known as “the HUD code”).

The benefits of manufactured and modular housing include affordability, quality, and amenities. Excluding the cost of the land, the MHI estimates that the cost of a manufactured or modular home could be 10% to 35% less than a home built on-site (depending on size and complexity); financing the construction of a manufactured or modular home is less expensive and may even eliminate any interim financing (such as a construction-permanent loan) that is typically required for on-site building.

Due to the fact that manufactured and modular homes are built in a controlled environment (essentially a “factory”), all aspects of quality is constantly and carefully controlled during construction. Unlike on-site construction, where quality inspections are random and inconsistent, manufactured and modular housing fabrication quality specialists constantly monitor fabrication to ensure the final product meets or exceeds all codes. Additionally, the controlled environment protects the materials from weather and almost completely eliminates construction delays.

Amenities and features are no longer absent from manufactured and modular homes. Although these homes are built with standard amenities and features; home buyers can choose options that meet their comfort level as well as meeting their family needs. Additionally, manufactured and modular housing industry proponents tout their high volume purchasing power to lower the cost of home buyer choices of appliances and upgrades.

Manufactured and modular housing is gaining wider acceptance because of affordability and durability. Consider that many national home builders use manufactured components in constructing their larger communities; while some custom home builders use manufactured components or modules to create some of the most luxurious and expansive homes in the area. Who knows; your current or future home may be partially or completely manufactured or modular.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of May 31, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell.