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Commission hears staff on factory‑built housing rules; trade and public speakers urge stronger local oversight

Building Inspection Commission · June 15, 2016
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Summary

Deputy Director Sweeney summarized California’s factory‑built housing law and HCD jurisdiction; speakers and inspectors raised quality and safety concerns about finished, HCD‑approved units produced offsite and asked the city to pursue local amendments or state changes to ensure San Francisco standards are met and that city inspectors have meaningful oversight.

San Francisco — The Building Inspection Commission on June 15 took up a presentation and public comment on factory‑built and modular housing, a growing construction method that can speed delivery but also raised questions about quality control and local oversight.

Deputy Director Ed Sweeney briefed the commission on state law: factory‑built housing is regulated under the California Factory Built Housing Law administered by the Department of Housing and Community Development (HCD). Sweeney said HCD or HCD‑approved third parties review and approve unit plans and put HCD insignia on approved modules; local building departments may inspect installation and site work but generally may not re‑review unit plans already approved by HCD except for local design loads or architectural/location standards.

Several commissioners and speakers pressed on practical concerns: Chief Plumbing Inspector Steve Penelli and trade representatives documented issues found in offsite modular builds — concealed wiring, missing nail plates, lack of fire caulking, and mold in sealed wall cavities — and warned about longer‑term repair burdens for unit owners if installations do not meet local standards. "These pictures demonstrate that the factory built housing electrical construction would have not met national, state, or local electrical codes," a trade representative said.

Commissioners noted examples of successful modular projects that involved close local coordination — including projects where city inspectors visited factories and developers adopted local amendments — and asked staff to return with policy options. Staff said the department inspects foundations, podiums, hold‑down and marriage‑plate connections, life‑safety systems in common areas and utility hookups, but that interior unit work approved by HCD is outside the city’s plan‑check authority.

Several public commenters urged state‑level action or local code amendments if possible so that modular units built offsite must meet San Francisco standards and be inspected to the same level as site‑built construction. Union representatives recommended requiring factory work to be performed to the city’s standards and inspected by local authorities or to use local amendments when allowed.

Why it matters: Modular construction is being used to accelerate housing production. Commissioners and trade representatives said San Francisco’s dense, seismically active environment and local code expectations call for clarity on inspection authority and an approach that preserves safety and long‑term maintainability for residents.

What’s next: The commission agreed to continue the discussion at a future meeting (the August meeting was suggested) and asked staff to compile options, examples from other cities and potential local amendments.