HUD taps NIBS to advance factory-built multifamily housing

The U.S. Department of Housing and Urban Development (HUD) has chosen the National Institute of Building Sciences (NIBS) to spearhead a new initiative aimed at increasing the adoption of factory-built construction for multifamily housing. This collaboration, which includes strategic partner MOD X, is designed to overcome existing barriers to offsite construction methods.

Factory-built construction, where buildings or parts of them are manufactured in a controlled environment before on-site assembly, offers potential benefits such as faster delivery and improved efficiency. However, challenges persist in areas like building codes, financing, insurance, and regulatory approvals, particularly for multifamily projects.

Over the next 12 months, NIBS and MOD X will convene experts from government, industry, finance, and code development to assist HUD in addressing these hurdles. A key focus will be establishing a more streamlined process for using manufactured housing in developments of five or more units. The initiative will also support HUD's planning for future pilot projects to demonstrate factory-built multifamily housing.

This effort builds upon previous HUD-funded research by NIBS and MOD X, including roadmaps and handbooks on accelerating offsite construction. George Guszcza, president and CEO of NIBS, emphasized the need to embrace innovative construction methods to meet the nation's growing demand for affordable and resilient housing, stating that success requires aligned standards, financing, insurance, and approval processes.

A significant aspect of the work will involve transitioning from prescriptive building codes to a performance-based framework. This approach would focus on a building's required outcomes, such as fire safety and indoor environmental quality, rather than dictating specific materials or methods. NIBS and its partners will draft a framework detailing safety, quality, and performance expectations for manufactured housing in multi-unit developments, along with methods for builders to demonstrate compliance and obtain independent review.

The project will also aid HUD in planning potential future demonstrations to assess how its housing programs, financing, and insurance requirements interact with factory-built construction. NIBS will provide technical review and expert input for these demonstrations, which HUD will lead. The initiative will examine both manufactured housing, governed by the federal HUD Code, and modular housing, typically subject to state and local codes, while also evaluating current financing, insurance, and approval processes.