Washington, D.C. – Today, Rep. Stephen F. Lynch (MA-08) and Rep. Lisa McClain (MI-09), members of the House Financial Services Committee, introduced the Modular Housing Production Act, bipartisan legislation to facilitate the financing and construction of affordable housing nationwide. In particular, the bill would require the Department of Housing and Urban Development (HUD) to review all construction lending programs administered by the Federal Housing Administration (FHA) and promptly address barriers that currently limit construction financing for modular homes—highly-affordable single and multi-family dwellings that are built in sections and then assembled on a permanent site in accordance with state and local building codes. 

“Amid a national housing crisis that includes a severe shortage of more than 7 million affordable homes and single-family home prices that exceed the median household income five times over, the Modular Housing Production Act will better ensure that homeownership is attainable for America’s working families,” said Rep. Lynch.

“With new innovations in technology and materials, today’s modular housing presents a great opportunity to expand the availability of housing. As the Urban Institute and other nonprofit partners have reported to our Committee, the use of modular housing significantly reduces construction costs and building time and must be a key component of our national efforts to maximize home affordability for low and moderate-income families and first-time home buyers,” added Rep. Lynch. “I am proud to introduce this bipartisan legislation with my colleague Rep. McClain, and I am grateful to Ranking Member Maxine Waters and Chairman French Hill of the Financial Services Committee for their continued leadership in support of housing affordability.”   

“Washington’s outdated rules have made it too hard for families to buy a safe, affordable home. This bill cuts the pointless red tape and drives costs down for hardworking families. This is a commonsense fix that delivers more options and a fair shot at the American Dream,” Rep. McClain said.

The Modular Housing Production Act would specifically:

• Require the Secretary of HUD to review FHA construction financing programs to identify administrative, programmatic, and regulatory barriers limiting the construction of modular homes; 

• Require the Secretary of HUD, within one year of enactment, to issue a public report containing recommendations to facilitate modular home financing and construction; 

• Require the Secretary of HUD, in consultation with affordable housing stakeholders, to issue an agency rule to examine financing disbursement reforms to facilitate modular home construction; and 

• Authorize the Secretary of HUD to award a grant to examine the development of a standardized commercial code to streamline modular home construction.   

The Modular Housing Production Act has also been introduced by Sen. Elizabeth Warren (D-MA) as part of the bipartisan Road to Housing Act that passed the U.S. Senate in October of 2025.