84th Recap: Industrialized Building and Housing

TMHA championed two identical bills with both House and Senate versions this session that would increase the total number of stories and height that modular building and housing can be built to in Texas. The origins of this bill came from several of our modular manufacturing members who want to enter the multi-family, hotel and assisted living markets. In particular the growing popularity of mix use structures that have first floor retail shops with three stories of apartment or condos above the retail floor. These structures have increased throughout many of the rapidly growing cities in Texas, and our modular builders wanted an opportunity to compete for these projects.

The problem we tried to solve was the limitation in the law that modular housing and buildings cannot exceed three stories or 49 feet. However, comparable construction site-built buildings have the ability to go to four stories or 60 feet.

We were pleased that both bills moved quickly through the legislative process. Ultimately, the Senate bill, SB 1264, moved slightly faster than its House counterpart. SB 1264 increasing the height maximum passed both chambers and was sent to the governor on May 7, which put it in the first 40 bills that passed in the 2015 Session..

The governor signed the bill into law on May 19, and it becomes effective September 1, 2015.

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