The ROAD to Housing Act and Its Impact on Manufactured Housing Communities

The United States is facing a historic housing shortage. Home prices continue to rise, supply remains constrained, and millions of Americans are struggling to find affordable places to live. In response, federal lawmakers have introduced the ROAD to Housing Act — short for Renewing Opportunity in the American Dream to Housing Act.

While the bill covers a broad range of housing issues, it includes several reforms that could have a major impact on manufactured housing communities. If enacted, it would modernize outdated rules, unlock new financing pathways, and make it easier for operators and developers to preserve and expand communities nationwide.

What the ROAD to Housing Act Aims to Do

The legislation is designed to increase the supply of affordable homes, improve financing access, and streamline regulatory hurdles that slow down development. It focuses on everything from zoning and permitting reform to expanding access to federal loan programs.

For the manufactured housing industry, several key provisions stand out:

• Removal of the permanent chassis requirement: The bill would modernize the federal definition of manufactured housing by eliminating the rule that requires all HUD code homes to have a fixed steel chassis. This opens the door for new modular designs and construction efficiencies that can reduce production costs.

• Expansion of FHA and HUD lending programs: The Act directs federal housing agencies to revisit and raise loan limits for manufactured housing and expand access to property improvement financing. This would make it easier for both homeowners and park operators to fund community upgrades.

• Preservation and Reinvestment for Community Enhancement (PRICE) grants: A portion of the Act allocates grant funding to help maintain and modernize existing manufactured housing communities, particularly those serving low and moderate income residents.

• Zoning and permitting reform: The Act encourages local governments to simplify land use and environmental review processes that often delay or block the development of new affordable housing.

• Streamlined inspection and voucher flexibility: It aims to reduce delays by allowing federally assisted housing units that have recently passed inspections to qualify automatically for vouchers or other federal programs.

Why it Matters for MHCs

Manufactured housing has long provided one of the most affordable and stable housing options in the country, yet the industry has faced decades of regulatory and financing barriers. The ROAD to Housing Act seeks to address those challenges head on.

Lower Construction Costs and Design Flexibility: The removal of the permanent chassis rule could lower production costs significantly while allowing manufacturers to innovate. Without this outdated requirement, homes could be built using a wider range of materials and configurations, including multi section and modular layouts that blend more easily into traditional neighborhoods. This shift could also make it easier to bring new homes into existing communities or to develop new infill housing on underutilized land.

Expanded Access to Financing: Manufactured housing operators often face limited financing options for community improvements, infill, or infrastructure replacement. By expanding FHA and HUD lending programs, the Act could make it easier to access low cost, long term capital. This would support projects like road paving, water and sewer upgrades, and home replacements, which ultimately enhance both the resident experience and property value.

Preservation and Modernization: Through the PRICE grant program, operators could apply for direct funding to repair and preserve older communities. Many legacy parks across the country struggle with aging water systems, deteriorating roads, or outdated electrical infrastructure. These grants could help address those needs while keeping lot rents stable for residents.

Faster Development & Infill: One of the biggest obstacles to affordable housing growth is local red tape. Lengthy environmental reviews and zoning challenges often stall new projects for years. The ROAD to Housing Act aims to reward jurisdictions that reform these processes, clearing the path for faster development of new communities and the expansion of existing ones.

The Bigger Picture

If passed, the ROAD to Housing Act could mark a turning point for manufactured housing. By lowering costs, broadening financing, and encouraging modernization, it would strengthen one of America’s most reliable sources of naturally affordable housing. For operators and investors, the Act represents a rare alignment of policy and practicality. It signals federal recognition that manufactured housing is not a fringe solution but a cornerstone of the affordable housing ecosystem.

Communities that are well capitalized and forward thinking will be best positioned to take advantage of the new incentives. Access to lower cost financing and potential grants will create opportunities to modernize existing assets, infill vacant lots, and expand footprints in regions that have historically been restrictive toward manufactured housing. At the same time, the legislation could attract new institutional interest into the sector, driving competition and raising the standards of community operations across the country.

What to Watch: While the proposed bill is promising, a few realities remain important to monitor.

• Legislative uncertainty: The Act is still under consideration, and some provisions may be revised or delayed before passage.
• Implementation at the local level: Even if federal regulations change, state and city zoning policies will still determine how quickly projects move forward.
• Competition and consolidation: If more capital flows into the space, smaller owners may face pressure to sell or consolidate.

Despite these uncertainties, the long term trend is clear — manufactured housing is increasingly recognized as a practical and scalable solution to the national housing shortage.

The ROAD to Housing Act represents one of the most meaningful legislative efforts in decades to strengthen affordable housing across the United States. For manufactured housing communities, it could unlock a new era of growth, modernization, and investment. If implemented effectively, it will not only help preserve existing communities but also pave the way for thousands of new homes that working families can actually afford.

Sources

• Bipartisan Policy Center, What’s in the ROAD to Housing Act of 2025
• National Housing Crisis Task Force, Support for the ROAD to Housing Act
• HUD, Federal Manufactured Housing and Financing Overview
• Business Insider, The Future of Affordable Housing and Manufactured Home Reform