Model/Z Secures $32 Million for Modular Housing Units
The Los Angeles manufacturer will use the tax credits to accelerate affordable housing projects in Watts and South Los Angeles.
Updated on Oct. 19, 2026 in Manufacturing
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Model/Z has secured $32 million in New Markets Tax Credits to scale its production of modular housing units. The funding will support the construction of affordable and workforce housing throughout Watts and South Los Angeles.
Why it matters
Modular construction allows developers to complete site work while units are fabricated off-site, effectively compressing construction schedules and lowering overall project costs. This financing helps sustain the pipeline for thousands of new local units.
Model/Z has already produced more than 500 housing modules since its 2024 factory opening. The latest financed projects are expected to create or retain 117 jobs.
The players
Model/Z
This manufacturing firm specializes in modular, steel-frame housing construction and uses proprietary artificial intelligence to streamline its development process.
SoLa Impact
This organization is an investment firm focused on social impact and affordable housing, serving as the parent affiliate to Model/Z.
Greenline Community Development Fund
This entity provides financial resources through the federal New Markets Tax Credit program to stimulate development in low-income communities.
The details
Model/Z uses an artificial intelligence platform to manage site feasibility, design, permitting, and financial analysis for its steel-frame modules. The company is an affiliate of SoLa Impact, which recently closed on a total of $93 million in project financing.
Timeline
Congress created the New Markets Tax Credits program in 2000.
The program began funding community projects in 2002.
Model/Z opened its Watts modular housing factory in 2024.
SoLa Impact closed on $93 million in project financing in October 2026.
Model/Z expects to deliver 800 modular units over the next year.
Market Landscape
The expansion of modular manufacturing represents a growing shift toward industrialized construction in response to urban housing shortages. By leveraging federal tax incentives, firms like Model/Z are positioning themselves to compete with traditional developers on project speed and cost.
The increased production of affordable and workforce units aims to boost housing availability for local residents in South Los Angeles. The projects are also slated to support local employment by creating or retaining 117 jobs.
The takeaway
Modular construction significantly reduces the time required to bring new housing to the local market by overlapping site work with factory fabrication. This funding milestone ensures that hundreds of new units remain on track for delivery in the coming year.
Further reading
For more context on local production, see the Manufacturing section.
Source note: This article includes information reported by Propmodo.
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