A sweeping U.S. housing law is moving from Congress to the agencies, and factory-built homes are near the center of it. The 21st Century ROAD to Housing Act became law on July 11, 2026. A Congressional Research Service report published October 20 lays out what it does and when. For builders, lenders and investors, the law could change what a factory can produce and how it is financed.
The law arrives with construction under pressure. The Census Bureau and HUD reported a seasonally adjusted annual rate of 1,221,000 housing starts in September. That is 7.4 percent below September 2025, though the bureau’s margin of error means that decline is not statistically conclusive. Completions came in at a rate of 1,192,000, which is 14.0 percent below a year earlier. Building permits were at 1,400,000, or 3.0 percent lower.
What changes for manufactured homes
Manufactured homes are built in factories under a national code administered by HUD. Until now, federal law required them to be built on a permanent steel chassis. CRS notes that some argued the rule was outdated because most of these homes are never moved after installation.
Section 301 of the law allows a manufactured home to be built with or without a permanent chassis. CRS says this may reduce some costs and could allow more designs, such as basements or multiple stories. HUD must issue revised standards, including a label distinguishing the two types. States must certify by July 11, 2027, or two years after enactment if their legislatures meet biennially, that their laws treat both types the same. HUD must also adopt minimum energy efficiency standards for manufactured homes by July 11, 2027.
HUD had already moved in this direction. On June 12, it proposed a rule allowing upper floor sections to be transported and built without a permanent chassis. The agency says more than 20 million Americans live in manufactured homes.
Modular homes and financing
Modular homes are also made in factories but follow state and local building codes. Their costs tend to come earlier in a project than those of site-built homes, which can clash with traditional construction loan schedules. Section 302 directs HUD to review barriers in Federal Housing Administration construction programs and report by July 11, 2027. HUD must then begin a rulemaking on alternative loan draw schedules.
The law also directs HUD to issue guidance on single-stair apartment buildings of up to six stories, a design that supporters say cuts costs. The National Fire Protection Association and others have cautioned that two stairwells remain necessary for fire safety.
The limits of the law
CRS cautions that many provisions are not self-implementing. The law appropriates no funding for any section, and some directives may go unfulfilled without new money. The next steps to watch are HUD’s revised standards and state certifications.
