California Factory-Built Housing Law

The law can give first users an alternative to local inspection while limiting local permitting and inspection fees for factory-built housing. It applies statewide, including charter cities.

What the law does ​

• Requires the Department of Housing and Community Development to adopt standards, qualifications, oversight, and enforcement rules for quality assurance agencies conducting installation inspections by January 1, 2029.
• Lets a first user choose either the local enforcement agency or a department-supervised quality assurance agency for installation inspections after those rules take effect.
• Caps local installation-inspection and permitting fees at 50% of equivalent nonfactory-built housing fees, unless a locality formally documents higher reasonable costs.
• Bars local inspection fees when a quality assurance agency performs the installation inspection, while allowing fees for unrelated sitework such as grading, foundations, and landscaping.
• Prohibits local enforcement agencies and quality assurance agencies from disassembling, damaging, or destroying factory-built housing during installation inspections.

Who it affects ​

• First users of factory-built housing.
• Factory-built housing manufacturers and quality assurance agencies.
• Local enforcement agencies that inspect installations and issue permits.

Context ​

The local-choice and fee provisions do not take effect until the department adopts its required regulations.

Breakdown ​

Factory-Built Housing Inspections and Fees ​

AB 2058 expands who may inspect the installation of factory-built housing and limits certain local fees. After the Department of Housing and Community Development adopts required rules, a first user may choose a quality assurance agency to perform the installation inspection instead of relying only on a local enforcement agency. The bill also protects housing from being taken apart or damaged during these inspections.

Key takeaways

• The Department of Housing and Community Development must adopt rules for quality assurance agencies to conduct installation inspections by January 1, 2029.
• Once those rules are in place, a first user may choose a quality assurance agency to inspect the installation of factory-built housing.
• The bill sets maximum amounts that local enforcement agencies may charge for factory-built housing inspection or permitting and bars fees in specified circumstances.
• Quality assurance agencies and local enforcement agencies may not disassemble, damage, or destroy factory-built housing while inspecting its installation.
• The bill makes related definition and conforming changes, and its expanded local duties and criminal scope create a state-mandated local program.

Statewide Application ​

The bill declares that its proposed changes address a statewide issue, not a purely local city matter. As a result, the changes apply to every California city, including charter cities.

Key takeaways

• The bill makes findings that its changes concern statewide interests.
• The bill states that its changes are not limited by a city’s local-affairs authority.
• The bill applies its changes to all cities, including charter cities.

State Mandate Reimbursement ​

The bill says that no state reimbursement is required for certain mandated costs for a specified reason. If the Commission on State Mandates finds that other parts of the bill impose reimbursable state-required costs on local agencies or school districts, those costs must be reimbursed under existing procedures.

Key takeaways

• The bill excludes certain mandated costs from state reimbursement for a specified reason.
• The bill does not rule out reimbursement for all possible mandated costs.
• The Commission on State Mandates may determine whether other provisions create state-required reimbursable costs.
• Any other reimbursable costs identified by the commission must be paid under the state’s existing reimbursement process.