Valley Center council approves first reading to allow 'residential-design' modular homes citywide

Valley Center's City Council approved the first reading of ordinance 1445-26 on a vote tonight, advancing a text amendment that would add a new "residential-design modular home" definition to the zoning code and allow those homes across the city's residential districts.

City staff outlined eight specific criteria that the proposed definition would require, including a minimum roof pitch and traditional roofing materials, non-reflective siding materials customarily used on site-built houses, a continuous concrete or masonry foundation around the perimeter, a minimum 25-square-foot landing at the main entrance, factory certification that the structure meets the current International Residential Code, and compatibility requirements where a modular home is placed in an established neighborhood. Staff said the change follows a Planning and Zoning recommendation to send the amendment to council after public hearing.

Steve Elmire of Prime Craftsman Homes, who introduced himself and described a philanthropic effort to deliver lower-cost single-family homes, told council the company expects to offer starter homes at about $200,000 rather than typical starter-house prices that he said now approach $300,000. "We're passionate about building single-family homes," Elmire said. "We're going to do this right. It's going to be high quality and it's going to be a showpiece." He said factory construction yields energy-efficiency gains and faster build times; in his presentation he cited factory-built energy savings of 30–40 percent and a roughly five-week factory build time for a house shell.

Council members pressed on neighborhood compatibility, resale and rental risks, and appraisal/valuation methods. Staff told the council that if a modular home is installed in an existing neighborhood, the zoning administrator would require rooflines, porches or garages to align with neighborhood characteristics when 50 percent or more of residences on the block share those features. On enforcement, Elmire said he intends to use contract provisions on title work to discourage short-term resale or conversion to rental, including a five-year clawback where half of any gain from an early sale would be directed to the Valley Center Community Foundation.

Council also discussed how county appraisal standards would treat factory-built houses and heard that accessory dwelling units are allowed in larger lots and otherwise by special use permit. The council approved the ordinance on first reading; a subsequent reading and final adoption remain to be scheduled.

The change would amend the zoning code's definitions and add the new residential-design modular-home standard to the R1A/R1B and related residential zoning districts. The city packet included a redline text showing the amendments and a staff note updating a reference to the HUD model installation standards for modular home installations.

The council's action was limited to first reading only; the ordinance will return for the required further reading and any additional public input before final adoption.