The National Institute of Building Sciences (NIBS) has been selected by the U.S. Department of Housing and Urban Development (HUD) to support a new initiative to expand the utilization of factory-built construction for multifamily housing.
Factory-built construction involves producing all or part of a building in a controlled setting before transporting and assembling it on site. Although these methods can make housing construction faster, more consistent, and more efficient, multifamily developments still face obstacles related to building codes, financing, insurance, and regulatory approval.
During this 12-month initiative, NIBS and its strategic partner MOD X will work with experts from government, industry, building science, engineering, finance, and code development to help HUD address these challenges. The work will focus on creating a clear pathway for manufactured housing in the development of five or more homes and supporting HUD’s planning for future demonstrations of factory-built multifamily housing.
The current award builds upon research completed by NIBS and MOD X, and funded by HUD’s Office of Policy Development and Research (PD&R) that includes the Offsite Construction for Housing: Research Roadmap; HUD’s Past, Present, and Future Role in Accelerating Offsite Construction for Housing; and HUD Breakthrough Pilot Handbook: Growing Offsite Construction for Housing Through Regional Pilot Projects
“America has a growing shortfall in resilient and affordable housing. Meeting the needs of individuals, families, and communities across the nation requires us to boldly embrace proven ways of designing, producing, and delivering quality, resilient, and affordable homes,” said George Guszcza, president and CEO of NIBS. “Factory-built, offsite, panelized, and industrialized construction offers tremendous potential, but innovation cannot succeed without standards, financing, insurance, and approval processes that align. This initiative will help the nation understand those connections and identify practical ways to move the housing industry forward”.
Creating a Clearer Path for Innovation
Most building codes describe specific materials and construction methods that must be used. A performance-based approach instead focuses on what a building must accomplish, such as protecting occupants from fire, withstanding wind and other hazards, and providing a healthy indoor environment.
Under the HUD award, NIBS and its partners will develop a draft framework describing the safety, quality, and performance expectations manufactured housing must meet when used in developments of five or more units. The framework will also outline how builders can document their designs, demonstrate that required outcomes have been achieved, and obtain an independent technical review.
This approach could provide manufacturers with greater flexibility to use new designs, materials, and production methods while maintaining strong expectations for public safety and building performance. The work is intended to give HUD a technical foundation for future consideration and does not change existing federal requirements.
“Building codes and standards must protect individuals and families, but they also must be able to keep pace with innovation for the benefit of the community,” Guszcza said. “By focusing on building performance, we can create better opportunities for construction methods that prioritize safety, quality, resilience, and long-term value.”
Helping HUD Plan for Future Demonstrations
The project will also support HUD as the agency plans potential future demonstrations of factory-built multifamily housing. These demonstrations could help HUD understand how its housing programs, financing tools, and insurance requirements interact with construction methods that differ from traditional, site-built development.
HUD will lead the development and implementation of the demonstration effort. NIBS and its partners will provide technical review and expert opinion, including identifying potential barriers, reviewing HUD-developed materials, advising on risks, and recommending ways HUD could measure the results of future demonstrations. NIBS will not construct, operate, or implement the demonstration projects under this award.
The work will consider both manufactured housing, which is regulated under the federal HUD Code, and modular housing, which generally is reviewed under state and local building codes. It will also examine practical questions affecting real-world projects, including whether existing financing, insurance, approval, and evaluation processes appropriately account for factory-built construction.
The initiative builds on previous HUD-supported research into off-site construction and advances NIBS’ congressionally established role in bringing the public and private sectors together to improve the safety, performance, and affordability of the nation’s-built environment.
