Whether they know it or not, modular manufacturers around the country are responsible for complying with an obscure but extremely important regulation governing the transport of homes. Modular homes, which are produced in a facility and generally shipped in two or more sections to the construction site, are usually transported on a removable undercarriage. However, very often manufacturers will ship other components of the house, such as porches and dormers, within the modules.

The divisible load provisions of the Federal Highway Administration ("FHWA"), many of which are adopted by the States, require that the unit and the dormers be transported on separate vehicles. Compliance to this “divisible load” regulation, as the issue is commonly referred to, can present tremendous added cost to the price of new modular homes for new homebuyers.

Last fall the modular committee staff met with the Department of Transportation in order to seek resolution to the divisible load issue and begin a dialogue with regulators to enlist their support of such change. Staff also sought and retained the counsel of Paul Borghesani and Motor Carrier Services, LLC, a consulting and law firm specializing in transportation issues of the modular industry.

The modular industry and Motor Carrier Services, LLC developed a White Paper outlining the industry position and possible strategy. The threshold objective is to enable the States to permit the movement of divisible modular units and/or structural components on a single chassis without violating the legislative prohibition noted above. The following alternatives warrant consideration:

·Regulatory – Petition the FHWA to institute a Rulemaking proceeding to expand the exception noted the present definition of "nondivisible" to allow the state to treat vehicles transporting multiple modular units and/or appurtenant structures/materials as nondivisible vehicles or loads. The institution of a Rulemaking proceeding is discretionary with the Secretary and could involve a substantial amount of delay and possible opposition by various safety-minded groups.

·Legislation – Seek to have the "nondivisible" definition amended by Congress in legislation that may be introduced. Develop alliances with other housing and consumer groups.

The Modular Housing Committee is continuing to pursue the issue and the best possible course for the modular industry. An update will be conducted at the next Modular Housing Committee meeting on June 13, 2004 at the Summer Meeting at Capitol Hilton, in Washington, DC, where staff also hopes to have a strategy in place.

For more information contact Thayer Long at (703) 558-0678 or tlong@modularcouncil.org