WASHINGTON – Senator Ruben Gallego (D-AZ) introduced two bills to update outdated and redundant federal regulations and make it easier to build more affordable housing.
The bipartisan Housing Supply Expansion Act would modernize the federal definition of “manufactured housing” to include modular or prefabricated homes built without a permanent chassis. By allowing off-chassis manufactured homes, the bill expands consumer access to more efficient and cost-effective designs, providing greater architectural flexibility to better integrate into existing neighborhoods.
“Manufactured homes are some of the most affordable housing solutions on the market, but outdated laws are preventing newer, safer models from becoming widely available,” said Senator Gallego. “Our bipartisan bill makes a simple update to allow for greater design flexibility and bring down the cost of manufactured homes.”
The bill is endorsed by the Manufactured Housing Industry of Arizona, National Low Income Housing Coalition, Chamber of Progress, and Up for Growth.
“The Housing Supply Expansion Act of 2025 is a smart step toward solving our housing crisis. It empowers the manufactured housing industry to deliver creative, innovative, and affordable solutions that expand access to homeownership. By removing the outdated chassis requirement, we can unlock bold new ideas, open new markets, and make the American Dream more accessible to families across the country. We commend Arizona’s own Senator Ruben Gallego for his leadership in championing this vital effort,” said Thomas Dunn, President, Manufactured Housing Industry of Arizona
The bipartisan Streamlining Rural Housing Act would streamline rural housing regulations between the Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) by requiring the two agencies to enter into a memorandum of understanding (MOU) to align housing standards. Rural housing projects that utilize federal funding sources, such as HUD’s HOME Investment Partnerships Program and USDA’s 538 loan program, require slightly different environmental reviews and inspection standards that must be completed separately to meet both agencies’ requirements. By requiring HUD and USDA to enter into a MOU, this legislation simplifies the rural housing regulation process, lowering the cost and shortening project timelines for developers.
“Americans are facing an affordable housing crisis. We need to build more housing and build it fast to bring down costs and get more people into homes,” said Senator Gallego. “Government should be part of the solution, but right now it’s part of the problem. By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”
The bill is endorsed by the Council for Affordable and Rural Housing (CARH).
Senator Gallego has made lowering the cost of housing a key priority in the Senate. Earlier this year, he introduced the bipartisan Housing Affordability Act to increase the Federal Housing Administration’s multifamily housing loan limits help developers access the financing they need to build more housing; the Stop Predatory Investing Act and Humans Over Private Equity (HOPE) for Homeownership Act to go after the hedge funds that own and control large parts of the housing market; and the Housing Vouchers Fairness Act to make sure fast-growing cities like Phoenix get their fair share of federal housing assistance.
7/24/25