Legislation Introduced to Ease Federal Restrictions on Manufactured Housing

On July 30, 2025, U.S. Senator Katie Britt (R-Ala.) joined a bipartisan group of lawmakers in introducing the Housing Supply Expansion Act of 2025, a bill that proposes lifting a longstanding federal requirement on manufactured homes. The legislation aims to give states more flexibility in how they classify and regulate these homes in an effort to broaden housing access and lower construction costs.

Background on the Regulation

The current federal regulation mandates that manufactured homes — also known as prefabricated homes — retain a permanent steel chassis even after installation. This component, originally intended to ensure the homes could remain portable, has come under criticism for limiting architectural design options and adding unnecessary cost.

Manufactured housing, which is factory-built and transported to its final location, has long been considered a cost-effective alternative to traditional site-built homes. Supporters of the new bill suggest that removing the steel chassis requirement could enhance the affordability and aesthetic integration of manufactured homes within residential neighborhoods.

Key Provisions of the Bill

Under the proposed legislation:

• States would have the option to recognize manufactured homes that do not include a permanent steel chassis as equivalent to those that do.
• To enact this change, states must submit a certificate to the Secretary of Housing and Urban Development (HUD) within one year of the law’s enactment.
• The change is not mandatory; each state can decide whether or not to participate.

Legislative Intent

According to a press release from Senator Britt’s office, the goal of the Housing Supply Expansion Act is to modernize federal housing policy and eliminate regulatory barriers that may inhibit homeownership.

“The Housing Supply Expansion Act of 2025 updates current law to reflect modern housing needs and reduces red tape to make housing more affordable for Americans,” Britt stated. She emphasized the legislation’s potential to support the development of more efficient, flexible, and affordable housing designs.

The release also highlighted that allowing manufactured homes without the steel chassis requirement could “expand consumer access to more efficient and cost-effective designs” and promote “greater architectural flexibility” for integrating these homes into existing communities.

Next Steps

The bill’s introduction marks the beginning of the legislative process. Should it advance through committee review and gain sufficient support in Congress, states could begin opting into the revised regulatory structure within a year of its passage.

For now, the bill represents a notable shift in the ongoing discussion around affordable housing and federal regulatory frameworks for manufactured homes.