FHA construction financing programs

(a) In general The Secretary shall conduct a review of Federal Housing Administration construction financing programs to identify barriers to the use of modular home methods. (b) Requirements In conducting the review under subsection (a), the Secretary shall— (1) identify and evaluate regulatory and programmatic features that restrict participation in construction financing programs by modular home developers, including construction draw schedules; and (2) identify administrative measures authorized under section 525 of the National Housing Act (12 U.S.C. 1735f–3) to facilitate program utilization by modular home developers. (c) Report Not later than 1 year after the date of enactment of this Act, the Secretary shall publish a report that describes the results of the review conducted under subsection (a), which shall include a description of programmatic and policy changes that the Secretary recommends to reduce or eliminate identified barriers to the use of modular home methods in Federal Housing Administration construction financing programs. (d) Rulemaking (1) In general Not later than 120 days after the date on which the Secretary publishes the report under subsection (c), the Secretary shall initiate a rulemaking to examine an alternative draw schedule for construction financing loans provided to modular and manufactured home developers, which shall include the ability for interested stakeholders to provide robust public comment. (2) Determination Following the period for public comment under paragraph (1), the Secretary shall— (A) issue a final rule regarding an alternative draw schedule described in paragraph (1); or (B) provide an explanation as to why the rule shall not become final.