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The National Manufactured Housing Construction and Safety Standards, commonly referred to as the HUD code, has adopted changes relevant to builders and the propane industry. The code changes reduce the need for Alternative Construction (AC) letters for tankless water heaters and allow manufactured housing producers to install propane tankless water heaters on the production line rather than as an upgrade at the point of sale and installation.
This change allows homeowners to reduce the cost of the equipment since housing manufacturers can install tankless water heaters, furnaces, stovetops, and fireplaces in the home before it leaves the factory. Propane and natural gas-powered tankless water heaters provide homeowners with a desirable amenity that improves energy efficiency and offers continuous hot water.
This change is part of a broader update to HUD’s manufactured home construction and safety standards. It’s important that manufactured housing developers and builders understand the new HUD policy so they can then educate their buyers about mortgage benefits as well as the benefits of propane equipment.
Manufactured Housing Builders Benefit
The current HUD code for gas storage tank water heaters in manufactured housing requires:
- Access panels vented to the outdoors.
- A pan installed under the heater for leak protection.
- A unit that is field convertible from natural gas to propane—the conversion kit must be included.
There are limited models of HUD-compliant gas storage tank water heaters, which has increased the cost of the equipment. Tankless water heaters can be used, but have previously required onerous paperwork.
“For years, manufacturers have incorporated tankless water heaters into HUD Code manufactured homes,” says Lesli Gooch, CEO of the Manufactured Housing Institute. “However, because the HUD Code did not formally recognize these systems, manufacturers were required to go through the Alternative Construction (AC) process. This process, designed to support innovation and new technologies, added time and cost. To comply, manufacturers’ engineers had to develop a detailed design package demonstrating that the system met or exceeded HUD Standards. This package then needed approval from a third-party Design Approval Production Inspection Agency before being submitted to HUD.”
The new updated standards will eliminate the costly and burdensome AC process, streamlining production.
Homeowners Benefit
Homeowners stand to gain significantly from a more efficient manufactured home production process, as well as energy-efficient propane appliances. As manufacturers adopt innovative components and cost-effective construction techniques, these advancements help reduce overall production costs. Those savings are then passed on to homebuyers, making manufactured homes even more attainable.
”Once these updates are finalized and integrated into the standard process, manufacturers will be able to streamline operations, reduce material waste, and ensure consistent, high-quality production,” Gooch says. “This not only lowers costs but also improves the reliability and performance of the final product. As a result, homeowners benefit from more affordable, higher-quality homes that incorporate the latest technologies — making manufactured housing one of the most attainable and value-driven options on the market today.”
In addition, consumers will also benefit from more attainable housing options. This update to the HUD Code marks the first time that the production of 2–4-unit manufactured homes is permitted. These homes have the potential to significantly expand the nation’s affordable housing supply. Thanks to an existing regulatory waiver from HUD, manufacturers can begin building these multi-unit homes now.
Propane Appliances Further Lower Costs for Homeowners
When propane appliances and amenities are installed in manufactured homes, the benefit is two-fold for homeowners. Propane allows them to make a smart housing decision financially and power their household appliances with an energy that lowers their total cost of home ownership.
Propane is energy-efficient and an economical method of heating a home, which lowers monthly utility bills. It’s also a reliable source of energy for heating and cooking, as it is independent of the electric grid. Propane furnaces produce more comfortable, consistent heat with fewer emissions than electric furnaces, while tankless water heaters save energy by heating water only when it’s needed.
With propane appliances, manufactured and modular home builders can offer clients affordability, versatility, and reliability–all rolled into the mortgage.
