Federal Impacts

HUD Unveils Action Plan for Manufactured Housing Innovation

summary

  • HUD released its Next Generation Manufactured Housing Action Plan that provides guidance for manufacturered housing and encourages new types of factory-built housing. 

  • The plan builds on the 21st Century ROAD to Housing Act that removed the permanent steel chassis requirement for manufactured homes, opening the door to more flexible housing options that can better fit community needs.

  • Planners may need to review zoning and development codes that restrict manufactured housing, as federal policy shifts toward expanding where and how these homes can be used.

The U.S. Department of Housing and Urban Development (HUD) has released its Next Generation Manufactured Housing Action Plan, outlining steps to modernize federal standards and guidance for manufactured housing and encourage new types of factory-built housing. 

The plan builds on successful passage of the 21st Century ROAD to Housing Act, which removed the longstanding requirement that manufactured homes be built on a permanent chassis. This change creates an opportunity for innovation in how homes are designed, transported, assembled and regulated.

The Next Generation Manufactured Housing Action Plan outlines how HUD will:

  • Update energy efficiency standards for manufactured homes.
  • Remove barriers to build by addressing the design and construction of manufactured homes built without a permanent chassis.
  • Maintain safety by addressing foundation, anchoring, and installation requirements for chassis-free homes.
  • Create construction pathways to explore innovative housing types that work within the federal manufactured housing regulatory framework and that factories can realistically complete.
  • Develop a performance-based code for larger-scale buildings to examine a federal construction and safety framework for larger factory-built residential structures.
  • Develop resources for chassis-free construction to provide stakeholders with information on early projects, including design, transportation, foundations, installation, zoning, appraisal, lending, insurance and market acceptance.
  • Allow more manufacturers on board to increase housing supply by providing resources for existing modular and other off-site construction manufacturers who comply with the federal system. 

What This Means for Planners

For planners, the action plan signals increased momentum and federal support for off-site housing construction as a tool for addressing housing supply and affordability challenges.

The plan's focus on design flexibility and larger-scale factory-built housing could create more opportunities for communities looking to diversify their housing stock, expand attainable homeownership options and accelerate housing production. As new chassis-free housing options enter the market, planners will play a key role in helping local governments eliminate regulatory barriers and update local codes to maximize the potential of innovative new housing options. 

Housing Supply Accelerator Playbook

Housing Supply Accelerator Playbook cover

Increasing Local housing supply

Learn more about strategies and tools to create reforms that lead to a more attainable housing supply in communities nationwide by downloading the Housing Supply Accelerator Playbook.

Top image: iStock/Getty Images Plus - lucky-photographer


About the Author
Brenna Donegan is APA's public affairs program manager.

October 22, 2026

By Brenna Donegan