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San Francisco commission weighs how local code should apply to modular housing amid industry assurances and union support
Summary
At an informational hearing the Building Inspection Commission heard DBI staff and industry speakers describe how state factory inspections and local plan checks intersect, discussed risks (offshoring, inspection limits for finished interiors), and received broad public comment from labor, manufacturers and housing advocates urging modular as a tool for affordable housing.
Deputy Director Ed Sweeney told the Building Inspection Commission that modular (factory-built) housing is increasingly used in the Bay Area and that the state inspects factory-built units while local building departments inspect site installation and foundations.
"These units come prefinished and they're inspected in the factory," Sweeney said, explaining DBI also inspects foundations, stair and exit configurations, fire dampers, sprinkler coverage and other life-safety systems after installation.
Industry speakers urged the commission to allow modular projects with concurrent local review. Larry Pace, who identified himself as a lead at Factory OS and Cannon Constructors, said his firms have inserted San Francisco permit sets into factory submissions so local inspectors can see what will be assembled and that "everything that we're building is to code." Pace invited commissioners to tour the Vallejo factory and said many projects reflect roughly a 20% cost savings and faster delivery timelines compared with conventional construction.
Labor and housing advocates framed modular as a way to increase housing supply while preserving local jobs. Dan Calamucci, a District 1 resident and researcher with Carpenters Local 22, said "there's no empirical evidence that this product, factory built housing, generates any more complaints, inspections, safety and health violations than any other traditional type of construction." Jacob Adiardi of the Northern California Carpenters Council described union organizing in two Bay Area factories and argued factory production can provide stable local jobs.
Commissioners pressed DBI staff and industry on several practical points: whether interiors finished at the factory are subject to local inspection; whether plan checks for mechanical, electrical and plumbing (MEP) could be required at the factory; how warranties and wrap insurance would work; and how to avoid units built overseas or in other states where California inspectors cannot easily oversee work. Tom Hui, DBI director, encouraged site and factory visits and said DBI would continue to require plan checks and inspections where appropriate.
Several commissioners suggested next steps. Commissioner Gilman asked staff for a memo outlining a framework to ensure life-safety compliance for factory-built housing in San Francisco; Gilman also suggested a resolution urging that publicly funded projects include mechanisms to ensure local code compliance. Commissioners agreed to consider follow-up meetings and factory/site visits before taking action.
The session was informational: DBI did not adopt a new regulation and no formal vote on modular policy was taken. Commissioners said staff should return with written recommendations and that the agency should coordinate with planning, fire, and the mayor—9s office on next steps.
