HUD Proposes to Eliminate Permanent Chassis Requirement for Upper Floors of Multistory Manufactured Homes

HUD has issued a Notice of Proposed Rulemaking (NPRM) that seeks to amend the definition of a “manufactured home” to significantly reduce administrative expenses and lower construction costs. The proposed rule would clarify that the “permanent chassis” requirement under applicable statute applies to the completed structure as a whole, rather than to each individual section. As a result, transportable sections serving as upper floors in multistory configurations will no longer need to be built or transported on a permanent steel chassis.

HUD anticipates that this structural change will eliminate between $4,776 and $6,672 in material, labor, and transportation costs per consumer unit on multi-floor manufactured homes. Beyond immediate financial relief, the rule removes a critical barrier to cost-effective construction techniques. Currently, lower floors and foundations must be engineered to support the 2,500-pound weight of an unnecessary upper steel frame. By eliminating this redundancy, the proposal addresses unnecessary aesthetic and engineering challenges, such as constraints on staircase placement and unused inter-floor space, while maintaining Title I loan eligibility.

Interested parties are invited to provide feedback on the NPRM through August 11, 2026.  Comments may be submitted electronically via the Federal eRulemaking Portal at www.regulations.gov.