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The White House has announced a $2 Trillion American Jobs Plan which would allocate financing towards affordable housing, electric vehicles and repairing roads and bridges, among other investments in American infrastructure. As part of the plan, The White House plans to spend $213 Billion on affordable housing over the coming years. This would inject more than 3 times the Department of Housing and Urban Development’s (HUD) current $60B annual budget and immediately accelerate construction of affordable housing.
In this Customer Spotlight, we sit down with Offsight customers, David Kazibwe from Ritz Craft Corporation and Jag Singh from Angel Landings, to discuss how more affordable housing funding could benefit HUD single family and multifamily construction and how successful modular manufacturers are preparing to capitalize on this opportunity.
Q: David: This infrastructure plan will provide significant funding for affordable housing, but milestones and goals will be put in place. How will established modular manufacturers position themselves to deliver in this market? How can technology help manufacturers reach their goals?
The recent infrastructure bill will surely lead to an increase in demand for affordable housing given the lack of housing and increasing homelessness in many cities across the country. Modular construction has the added advantage of building homes at faster rates and significantly lower costs at scale than traditional construction methods.
Many established modular manufacturers with a track record like Ritz-Craft will have extended backlogs and Offsight’s software will definitely help us manage projects to effectively prevent backlog build up. Offsight’s production management capabilities provide crucial visibility to executives and our vendors to help us manage our delivery and output. We can make sure that before any product goes off the line we’ve completed full quality verification.
This verification is even more crucial when dealing with third party inspectors, State regulators and HUD requirements. These would all be required as part of undertaking affordable housing projects so having a solution in place like Offsight ahead of time is a huge advantage.
Q: Jag: Many owners eager to capitalize on the surge in affordable modular multifamily housing will need to find offsite manufacturers who have a deep understanding of stringent HUD building codes and quality requirements. What established processes have you built to address this need and provide confidence to owners that these criteria and quality requirements will be met during production?
We have, for one, finely engineered our product to be acceptable in 92% of States by HUD and local State building departments. Our homes & commercial buildings are also built to the new carbon net-zero standards expected for premium developers. In order to execute on our build strategy, we require a robust project management and quality inspection system to track our modules and Offsight’s solution will give our customers the confidence that we are building to the latest HUD and sustainable design standards.
Our partnership with Offsight gives Angel Landing the ability to easily scale up our business to address the surge of demand and coordinate growth plans with our partner factories and fabricators. We see Offsight’s management system as an effective tool to manage customized finishes for each client. This would also provide us with an edge as such a process would not be easily possible if this was done in a manual system, such as email trails or in excel spreadsheets.