Episode 61: Hagerty's Freedom to Build Act and Modular Reciprocity

Senator Bill Hagerty's Freedom to Build Act targets two of the most persistent drag points in modular project delivery: the absence of interstate regulatory reciprocity and pre-construction permitting delays that routinely run several months. The Modular Building Institute has announced strong support for the legislation, which would direct HUD to create a "Freedom to Build" designation for localities adopting pro-housing reforms — including alignment with ICC/MBI off-site construction standards — and prioritize those localities for competitive federal grants. For developers, contractors, and manufacturers moving modular projects across state lines, the bill's implications are direct and operational. Key Takeaways: The Freedom to Build Act was introduced in March by Sen. Bill Hagerty (R-TN) and directs HUD to create a new designation for reform-adopting localities. Modular manufacturers currently must obtain separate facility certifications in each of the 50 states they wish to ship into — the bill targets this with ICC/MBI standards alignment as a qualifying reform. The ICC/MBI 1200 and ICC/MBI 1205 standards cover planning, design, fabrication, assembly, inspection, and regulatory compliance for off-site construction. Designated localities receive prioritized access to competitive HUD grants — an incentive mechanism, not a federal mandate. The bill includes binding maximum timelines for permit decisions and inspections, which would add enforcement teeth absent from voluntary review windows. Washington State's House unanimously passed HB 2151 adopting ICC/MBI 1200 standards — state-level adoption and the federal incentive framework are advancing in parallel. The opt-in structure means non-participating jurisdictions face no change; adoption will be uneven across markets, at least initially. The Freedom to Build Act doesn't preempt state authority — it buys compliance with federal grant access. That's a slower path than a mandate, but politically it's the path that exists. Developers evaluating modular strategies in multi-state pipelines should track which jurisdictions pursue the HUD designation, since those markets will offer materially faster permitting timelines and more predictable regulatory environments. The bill's movement through the Senate is the next watchable event. Subscribe to Built Different for daily updates on Modular construction reality.