Summary
The Board of Equalization accepted a report summarizing an earlier informational hearing on modular housing as a rapid, factory‑built option for disaster recovery and affordable units. Board members and presenters urged work on insurer classification, labor coordination and standardization of deployment processes.
The State Board of Equalization on Aug. 20 accepted a member‑led report on modular housing as a tool for post‑disaster recovery and for expanding housing supply.
Member Tony Vasquez presented the report, recounting testimony that factory‑built modular units can sharply cut construction time and, in some cases, reduce costs. “The magnitude of the reduction in cost and time speakers shared that modular homes could be built and installed in a matter of months, and for as low as $200,000 per unit,” Vasquez said in his summary of the earlier hearing.
The hearing found enthusiastic industry interest and practical hurdles. Members and witnesses noted recent advances in fire‑resistant panels and roofing systems, the feasibility of placing finished units on lots as temporary ADUs or permanent housing, and the potential for high‑volume production lines in existing manufacturing buildings. Vasquez described visiting a Watts facility where units were assembled on an industrial line and noted workers with aerospace backgrounds running the production.
Speakers and board members identified several follow‑up needs before broad deployment: (1) insurance companies must reliably classify modular homes and price coverage to reflect new fire‑resistant materials and construction methods; (2) labor organizations and manufacturers should coordinate to protect worker quality and wages while scaling factory production; and (3) state and local permitting and site‑installation processes must be standardized so a unit built for one jurisdiction can be placed and occupied quickly in another.
Board action: the board accepted the modular housing informational hearing report on a motion by Member Tony Vasquez, seconded by Vice Chair Eddie Lieber; the roll call shows unanimous approval.
Why it matters: faster housing deployment after fires, floods or other disasters can reduce displacement and speed recovery. Modular factory construction also offers potential cost and schedule benefits for affordable housing if insurance, labor and local permitting issues are resolved.
The board voted to accept the report and directed staff to consider next steps for follow‑up, including talking to insurers, labor representatives and building officials; no further binding policy changes were made at the meeting.
