Federal Law Removes Steel Chassis Mandate for Manufactured Homes

The 21st Century ROAD to Housing Act has removed a 1974 federal mandate requiring manufactured homes to be built on nonremovable steel chassis. This regulatory shift allows for the construction of two-story and multi-family manufactured homes, which are easier to stack and cheaper to produce. Industry experts estimate the change could reduce construction costs by $5,000 to $10,000 per unit.

Despite the federal change, the Pew Charitable Trusts estimates that approximately 30 states must update outdated statutes to align with the new definitions by July 11, 2027, or 2028 for biennial legislatures. North Carolina, Tennessee, and Texas have already modernized their definitions. Additionally, Kentucky has banned local ordinances that unreasonably restrict home placement or impose design standards higher than those for non-manufactured homes.

Industry leaders and policy experts suggest the law provides an opportunity to reclassify manufactured homes as real estate rather than personal property. Such a shift would grant homeowners access to traditional mortgage financing and potentially override restrictive local zoning. UMH Properties, Inc. plans to utilize the rule change to develop duplex units and two-story homes to increase housing density on existing land.