As previously reported, last month the National Modular Housing Council (NMHC) scored a major victory when the Federal Highway Administration (FHWA) clarified that state transportation agencies have the authority to permit the operation of “divisible loads” for the modular industry on the network of national highways. According to FHWA, states do have the authority to issue divisible load permits because the federal divisible load regulation does not apply to modular movements.

The divisible load provisions of the FHWA require that certain loads made up of two or more components be broken down into smaller loads if they exceed dimensional requirements. This can greatly increase the price of new modular homes for homebuyers.

In a letter dated August 15, 2005, FHWA Acting Administrator J. Richard Capka responded to a petition funded by the NMHC, and co-signed by the Building Systems Council and the Modular Building Systems Association, requesting that a rulemaking be initiated in order to resolve the problem regarding divisible loads for the modular industry. The industry petition was a response to state highway agencies applying the federal divisible load standards found in certain types of oversized modular movements. Contrary to former guidance issued by FHWA staff that state agencies do not have the authority to issue divisible load permits, FHWA has now reversed its position in response to the petition, and now concludes that federal divisible load regulations do not apply to the transport of modular homes and that states have the authority to issue such permits.

In its clarification, FHWA specifically states that the federal test for nondivisibility for the modular industry falls outside the scope of Federal regulation. Instead, approval of operation of these loads for the modular industry remains solely a decision for State agencies or permitting authorities to make.

The National Modular Housing Council has begun working with the state associations and other national groups to make sure this clarification is implementes at the state level effectively and uniformly.

The FHWA guidance (in PDF format) is available at for download by clicking here. This letter should be used by the industry when communicating with state authorities to request that they issue divisible load permits.

Please contact Thayer Long with any questions at (703) 558-0678 or tlong@modularcouncil.org