Powerful dwelling makers get a final minute break for brand spanking new requirements

The Ministry of Housing and Urban Development delayed the implementation of newly established housing standards for loan collateral from the Federal Housing Administration on Wednesday, citing supply chain issues.

HUD extended the deadline less than a week before new standards went into effect on March 15. The new effective date is July 12th.

The expansion shows how some prefabricated house restrictions remain in place, even though tracking numbers are showing signs of recovery.

"Many manufacturers are facing backlogs and supply chain challenges that make it difficult to get products that require the new regulations on time," HUD said in a statement published on the Federal Register.

Deliveries of prefabricated houses slumped after the pandemic outbreak last March and didn't return to prepandemic levels until November, data from the U.S. Census Bureau shows.

Although shipments are back on track, difficulties remain with obtaining certain materials.

"Bottlenecks have made it difficult for manufacturers to get carbon monoxide alarms, combined carbon monoxide and smoke detectors, doors, railings and other products required to comply with the Jan. 12 regulation," HUD said in its announcement.

Sourcing materials for house building is also challenging, but prefabricated houses are relatively easier to manufacture in some areas such as the south, Texas, Michigan, and California.

Traditionally, the FHA was primarily a state finance provider for prefabricated houses. More recently, Fannie Mae and Freddie Mac have also expanded the types of loans they will buy in this market.

The recent rise in prices and the relative shortage of housing stocks have made prefabricated homes attractive, as they sell for around $ 100,000 or less, compared to an average of $ 300,000 for traditional homes.

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