Specific Manufactured Housing Provisions Address New Housing Supply & Preservation
On June 16, 2026, the House and Senate reached an agreement on a strongly bipartisan housing package – the 21st Century ROAD to Housing Act. Combining housing priorities from both chambers and the White House, the legislation seeks to increase housing supply, lower costs for hardworking families, sensibly cut red tape, and preserve existing affordable housing.
Next Step® Network commends the hard work of Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) and House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) in reaching this agreement – setting up passage of a legislative package broadly supported by the housing industry, advocates, and other key housing stakeholders.
“These provisions reflect exactly the kind of policy alignment that Next Step has advocated for – removing structural barriers so that factory-built homes can deliver real homeownership opportunities at scale,” said Stacey Epperson, Next Step’s President and CEO.
Reflecting the increased recognition of the role that modern factory-built homes play in our housing supply ecosystem, several provisions open clear pathways for expanding this critical, but currently underutilized, market.
- Section 301: New manufactured homes built on permanent foundations will have the option to be built without a permanent chassis – saving costs for homebuilders and consumers, creating greater design flexibility and new opportunities for urban infill and small-lot subdivisions, and improving a home’s curb appeal. Additionally, this provision requires HUD to update the energy-efficiency standards for all manufactured homes within one year, and every three years subsequently.
- Section 302: Directs HUD to review FHA’s construction financing programs to identify barriers for developers using manufactured and modular homes, making it easier for developers to enter this market.
- Section 303: Increases the loan limits of manufactured home loans insured by FHA and allows property improvement loans for Accessory Dwelling Units (ADUs).
- Section 304: Authorizes HUD’s Preservation and Reinvestment Initiative for Community Enhancement Program (PRICE)Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program to provide competitive grants to communities to stabilize manufactured homes and manufactured housing communities.
Additional provisions authorize an Innovation Fund to offer highly flexible funding for communities that are building more housing supply, and direct HUD to develop best practice frameworks for zoning and land-use policies, helping communities identify and overcome barriers to housing development.
We encourage swift passage of this legislation by both the House and Senate, sending this strong, bipartisan package to President Trump’s desk for signature.