ROAD to Housing Act Changes Manufactured Home Rules
Nixon Peabody attorneys are advising clients on the bipartisan 21st Century ROAD to Housing Act, which removes the steel chassis requirement for manufactured homes.
Updated on Nov. 3, 2026 in Real Estate — General
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The 21st Century ROAD to Housing Act, a bipartisan multi-provision housing bill, was passed in July without President Trump's signature. It raises the public welfare investment cap for banks from 15% to 20% and removes the federal chassis requirement for manufactured homes.
Why it matters
The changes could drive billions of dollars in additional Low-Income Housing Tax Credit investment and potentially lower housing costs. Builders may be unable to build, sell, or install manufactured homes without a chassis if states fail to comply with the new requirements.
The ROAD Act lifts the bank public welfare investment cap from 15% to 20%, and the One Big Beautiful Bill Act made a 12% increase in 9% LIHTC allocations permanent while cutting the 4% tax credit bond threshold from 50% to 25%. States must certify consistent treatment of manufactured homes by July 11, 2027, though the projected dollar impact is not yet quantified.
The players
Nixon Peabody
Nixon Peabody is an international law firm with a Washington D.C. office whose attorneys are advising clients on the ROAD to Housing Act.
President Donald Trump
Donald Trump is the current President of the United States, whose decision not to sign the ROAD to Housing Act allowed it to pass into law in July.
The details
The ROAD Act removed the federal rule requiring manufactured homes to keep a steel chassis, and states must now treat all manufactured homes consistently in titling, financing, and taxation. Several cities, including Philadelphia, are also issuing housing bonds and establishing land banks.
Timeline
July 2025: The ROAD Act was passed without a presidential signature.
July 11, 2027: States must certify consistent treatment of manufactured homes.
Industry Dynamics
The ROAD Act builds on the One Big Beautiful Bill Act, which made a temporary 12% increase in 9% LIHTC allocations permanent and lowered the 4% tax credit bond threshold from 50% to 25%. Together, these measures signal a sustained federal push to expand tax-credit financing for affordable housing.
Buyers of manufactured homes may see changes in how these homes are titled, financed, and taxed as states implement the new certification rules. Prospective owners should check with local authorities on how their state is applying the ROAD Act before July 2027.
The takeaway
Homebuyers considering a manufactured home should confirm how their state is handling titling, financing, and taxation under the new federal rules before committing to a purchase. Changes are phased in through the July 2027 deadline, so timing matters.
What happens next
States must certify that manufactured homes are treated consistently in titling, financing, and taxation by July 11, 2027, or builders may be barred from building, selling, or installing chassis-free units.
Further reading
For more on how federal rules are reshaping home construction, explore Real Estate — General.
Source note: This article includes information reported by Bond Buyer.
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