Does Factory-Built Housing Work in Cities?

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Currently, only a handful of nonprofit groups use factory-built homes for urban projects, but many more are looking into the feasibility of using these technologies. The primary advantages of this type of housing are cost containment, quality control during construction, and ability to keep construction on schedule. In addition, factory-built houses require less onsite work and can be set, closed up, and secured in one day. Reflecting its strong commitment to improving the quality and environmental efficiency of affordable housing, HUD has published A Community Guide to Factory-Built Housing. The purpose of this comprehensive guide is to help nonprofit developers decide whether factory-built homes would provide a viable alternative to more traditional onsite construction for developing affordable urban and suburban housing.

A Community Guide focuses on two types of factory-built housing, manufactured and modular homes, because they are particularly well suited for scattered infill sites and small subdivisions within cities. Manufactured homes are built entirely in a factory in accordance with a federal building code (known as the HUD code). When manufactured homes arrive at the site, they are 80 to 90 percent complete and include appliances, carpets, paint, lights, and utilities ready for hookup. In contrast, modular homes are built in sections and are typically 70 to 85 percent completed before being shipped to a site where a contractor sets them on a foundation and completes construction. Many modular houses are two to three stories high and have two to six modules or sections.

The guide takes nonprofit developers through the entire development process:

• Finding a manufacturer.
• Finding a contractor to complete the house.
• Selecting the house.
• Determining the delivery date.
• Placing the order.
• Preparing the site.
• Building the foundation.
• Using finishing crews to complete utility connections and other elements.

A chapter focuses on obtaining permits for manufactured and modular homes. This typically takes more time than the permit process for site-built homes because local authorities may be unfamiliar with factory-built technologies.

In discussing strategies on how to work with neighborhood groups regarding factory-built housing, the report recommends that nonprofit developers conduct outreach and education for neighborhood residents about this type of housing becoming a part of their community. To counter negative stereotypes and misinformation that a "trailer home" is coming, the developer needs to assure residents that the factory-built houses will fit into the character of the area and not threaten property values.

Six case studies provide information on how different developers have used modular or manufactured homes to provide affordable housing. There are also useful appendixes, including a list of HUD administrative agencies for manufactured housing in each State and a resource list of industry periodicals and their websites.

A Community Guide to Factory-Built Housing is available from HUD USER for $5. Please use the order form. The report can also be downloaded from the HUD USER website at www.huduser.gov.