What is a Modular Home
A modular home is a type of prefabricated home that is built in sections (or modules) in a factory setting and then transported to the home site for final assembly on permanent foundations. Importantly, the construction of the interior of the home is almost completely assembled at the manufacturing facility.
Modular homes are typically built more quickly as compared to traditional site-built homes, are less likely to be impacted by labour shortages, are built in a controlled environment where weather is not a factor and are usually more energy efficient as compared to a traditional site-built home. These types of homes are attractive to those looking to build affordably and to those looking to quickly add additional residential units on to their land.
The Approval Process in Ontario
Several Ontario municipalities are adopting modular housing initiatives to facilitate the construction of these homes as a solution to affordable housing. If you are interested in this sort of development, you should be aware that there are provincial rules and requirements which you need to keep in mind.
The province authorizes municipalities to set their zoning bylaws and determine land uses within their jurisdictions. Municipalities make rules allowing residential building projects in some areas and not in others. They also make rules regarding the maximum size your house can be and can help you determine if the lot is suitable for the type of modular house you are considering.
Buyers of modular homes will want to confer with the local planning and building department to ensure the approvals required before the home can be installed. If a proposed design does not comply, you may still be able to construct it if you apply for a zoning by-law amendment or a minor variance application.
The Inspection Process
Once constructed and prior to leaving the factory, a modular home is inspected by an inspector accredited by the Standards Council of Canada. Buyers of modular homes are encouraged to ensure that the home is built in a certified factory. If this is not the case, local building officials from the municipality in which the modules will be installed can be engaged to complete the required inspection.
Once a modular home is on site and ready for installation, the home must again be inspected to ensure all notations within the building permit are in compliance with the minimum standards outlined in the Ontario Building Code.
Warranty on New Construction: The HCRA, Tarion and Considering "Who is the Builder?"
All "builders" of new construction homes must be registered with the Home Construction Regulatory Authority ("HCRA") and, if applicable, must be responsible to provide buyers of newly built homes certain financial protections and warranty coverage relating to construction defects and problems with workmanship, water damage and major structural issues.
Tarion Warranty Corporation is the administrator of the warranty plan. To qualify for Tarion Warranty coverage:
- the house must be new;
- the modular home must be built on a permanent foundation; and
- the builder or vendor must be licensed by the HCRA.
Where the landowner builds the foundation themselves and then hires a builder to build and assemble the modular home, Tarion Warranty coverage would not apply. In this case, the only warranty coverage available is that which is provided by the manufacturer of the home and stipulated in the contractual agreement relating to the home.
Those contemplating a modular home build are cautioned to consider carefully the role of their "builder". Some companies offering modular home manufacturing provide "full service" agreements such as applying for and obtaining permits, creating a design layout, providing the foundation or building a finished basement under the foundation, etc. Other companies offer limited services such as delivering the manufactured modules only to the development site.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
