In July, the manufactured housing industry secured a major policy win — the removal of the permanent chassis requirement — following the passage of the 21st Century ROAD to Housing Act.
Industry leaders argue the change will help manufactured housing gain greater acceptance in higher-density suburban, urban and infill markets, and better support the construction of multi-story homes.
However, they acknowledge that it could take at least a year, if not more, to begin realizing those benefits, as the U.S. Department of Housing and Urban Development (HUD) must first implement any changes to the manufactured housing HUD code before manufacturers can begin selling homes without a permanent chassis.
On Wednesday, HUD offered its first indication that it has begun that implementation process, with the release of its “Next Generation Manufactured Housing Action Plan.”
HUD’s plan details seven actions to modernize and improve the manufactured housing code, and ensure that the code is in compliance with the guidelines established under the 21st Century ROAD to Housing Act. Though the agency hasn’t said when implementation will wrap up, releasing the plan is a sign that the work is underway.
“The overarching goal is straightforward: preserve the strengths of the federal manufactured housing system while ensuring that it can support innovation and the next generation of factory-built housing,” the document read.
The seven actions in HUD’s plan
1. Update manufactured housing energy efficiency standards
HUD will conduct rulemaking to update 24 CFR Part 3280 energy efficiency standards for manufactured housing, as required by the 21st Century Road to Housing Act.
2. Update HUD code for chassis-free construction
HUD will revise the Manufactured Home Construction and Safety Standards in 24 CFR Part 3280 to accommodate homes built without a permanent chassis. This will include standards for structural design, transportation, lifting, connections and related technical requirements. The goal is to establish a clear framework for homes built with and without a permanent chassis that allows flexibility for new designs.
3. Update 24 CFR Part 3285 for foundations and installation
HUD will update the Model Manufactured Home Installation Standards in 24 CFR Part 3285 to address how chassis-free homes are supported and attached to the ground. HUD’s Manufactured Housing Consensus Committee will recommend changes related to foundations, anchoring, structural connections, setting procedures and other installation requirements. The update is intended to allow a range of support systems and new designs while ensuring safe and reliable performance.
4. Establish a multi-module construction pathway
HUD plans to create more flexible pathways for multi-module construction, accounting for situations where a home is built in multiple factory-made sections. With the chassis requirement removed, HUD will explore how these transportable sections can be designed, transported, assembled and completed on-site while preserving substantial factory completion. The end goal is expanding the range of housing types and designs that manufacturers can deliver.
5. Develop a performance-based code for buildings with five or more units
HUD will develop a performance-based federal construction and safety code, modeled on Part 3280, for residential structures containing five or more units. The plan notes that larger buildings introduce issues such as common corridors, stairs, accessibility, fire separation, shared systems and egress that are not fully addressed in the current standards. A performance-based code for five-plus-unit buildings would establish a national pathway for repeatable multifamily construction under a federal framework.
In accordance with this plan, HUD selected the National Institute of Building Sciences to support an initiative aimed at expanding the use of factory-built construction for multifamily housing.
The initiative comes after HUD updated its manufactured housing standards in 2024 to allow duplexes, triplexes and quadplexes.
6. Develop chassis-free case studies and disseminate lessons learned
HUD plans to document early projects that use chassis-free manufactured homes and share findings with the public. The case studies will cover design, transportation, foundations, installation, zoning, appraisal, lending, insurance and market acceptance, in an effort to help stakeholders understand how chassis-free manufactured housing operates in practice.
7. Create a manufacturer on-ramp to the HUD regulatory system
HUD will develop guidance and resources to help existing modular and other off-site construction manufacturers enter the HUD regulatory system. The support will cover factory certification, design approval, quality assurance and controls, state and third-party inspection, certification labeling and installation requirements. The stated goal is to reduce barriers to entry and make it easier for factory-built product manufacturers to produce HUD-regulated homes.
What comes after implementation
In a July interview with HousingWire TBD, Lesli Gooch, CEO of the Manufactured Housing Institute, explained that even after HUD finalizes rulemaking and implementation to modernize the HUD code, there will be more work to be done.
Once HUD completes the implementation process, manufacturers can then submit chassis-free designs to HUD-approved third-party inspection agencies for approval. Once approved, manufacturers can bring the homes without a permanent chassis to market.
The big manufacturers are already preparing for the change. At the 2026 Innovative Housing Showcase in Washington, D.C., held in the second half of September, Champion Homes unveiled a pair of new chassis-free, two-story home models aimed at urban infill development. Meanwhile, Cavco Industries debuted the Grande Arbor, its first manufactured home model built without a permanent steel chassis frame, at the showcase.
However, Cavco’s CEO William Boor, during a Q1 2027 earnings call on July 31, confirmed that there is no set timeline for when chassis-free models will hit the market.
“We’re not sitting on this end, sitting here doing projections about how much incremental volume this stuff will add over what time period, but directionally, I know it’s going to be helpful,” Boor said during the call, adding that “the benefits of this law will show themselves over time.”
