State board hears modular housing as fast option to rebuild wildfire-hit neighborhoods

At an informational hearing July 29, 2025, the State Board of Equalization heard experts and local leaders describe how modular homes and accessory dwelling units could speed rebuilding in wildfire‑struck communities and lower the cost of recovery. Board Member Tony Vasquez said the board should use the hearing to identify statutory and administrative fixes that would reduce rebuild timelines and costs.

Modular construction ‘‘is significantly less expensive and much more time efficient than traditional construction,’’ Board Member Tony Vasquez said. Witnesses described factory production, shorter site build time and standardized designs that could let homeowners return faster after a disaster.

The hearing focused on recent wildfires in Los Angeles County and the permitting, insurance and inspection barriers that speakers said keep many families from rebuilding. Bea Stotzer, founder and board chair of New Economics for Women, said 7,448 homes were lost in the unincorporated Altadena area and that 1,326 permit applications had been filed; of those, 134 building permits had been issued and only 15 were for ADUs. ‘‘We immediately received desperate calls from families who needed housing,’’ Stotzer said, and described plans to deploy factory‑built ADUs to speed returns.

Modular manufacturers and developers told the board that factory production compresses the traditional construction schedule because most mechanical, electrical and plumbing work is completed off site. One manufacturer said factory assembly can take roughly 10–14 days and on‑site installation can follow within weeks; witnesses generally framed typical end‑to‑end timelines at 60–90 days for a factory ADU when site work and permitting are in place.

Witnesses and board members identified the following recurring barriers: - Permitting and inspection delays: permitting often requires multiple signoffs (planning, fire, public works, building). Speakers urged expanded use of preapproved ADU plans and third‑party inspection programs so factory work does not wait months for on‑site signoffs. Stotzer proposed state pre‑approved, fire‑resistant ADU designs and ‘‘resiliency permit centers’’ to speed reviews. - Insurance and lending gaps: multiple witnesses said insurers and some lenders treat modern modular dwellings like older mobile homes, limiting insurance availability and construction financing. Stotzer and manufacturers asked the board to help coordinate conversations with the Department of Insurance and insurers about modern, fire‑resistant factory construction. - Manufacturer capacity and site logistics: witnesses said manufacturers’ production capacity and local site constraints (street width, crane access, utility work and debris removal) limit how quickly units can be delivered and installed.

Speakers offered several specific recommendations for state action that the board could pass along to legislators and agencies: - Allow third‑party inspection programs and expedite state HCD (Department of Housing and Community Development) preapproval of fire‑resistant modular ADU designs. - Create a wildfire ADU recovery revolving loan program administered by HCD or the state housing finance authority to provide 0%–low‑interest loans to underinsured homeowners. - Allow layering of targeted ADU construction grants with FEMA and CDBG funds and consider tax credits or forgivable loans to incentivize affordable ADU use. - Encourage preapproved multi‑generational plan libraries so homeowners can pick an approved design and avoid long custom plan reviews.

No formal votes were taken at the hearing; witnesses gave information and the board invited staff and members to continue coordinating with HCD, county assessors, the Department of Insurance and FEMA on next steps.

Why it matters: faster, lower‑cost housing replacements reduce the time families spend displaced and shrink the risk of long‑term housing loss and homelessness after disasters. Panelists said the people most affected are working‑class families and seniors who are least able to absorb multi‑year rebuild timelines and gaps in insurance payouts.

Board members said they will compile the testimony to guide future rule‑making, legislative referrals and interagency discussions rather than making immediate regulatory changes at the hearing.

Sources: testimony before the State Board of Equalization, July 29, 2025. Direct quotes and data come from witnesses at the hearing.