Historical Background

Codified as Chapter 1202 of the Occupations Code, the Texas Industrialized Housing and Buildings (IHB) statute first became effective on January 1, 1986. The statute regulates the construction of modular buildings, both residential and commercial, and modular components for the State of Texas.

As defined by Section 1202.002 of the Occupations Code industrialized housing means structures that are constructed in one or more modules or modular components built at a location other than the permanent site, which are transported to the permanent site and are erected or installed on a permanent foundation system. The term includes the plumbing, heating, air-conditioning, and electrical systems. Housing in excess of 4 stories or 60 feet are not covered. Industrialized housing may include multi-family residential buildings as well as one- and two-family dwellings.

As defined by Section 1202.003 of the Occupations Code industrialized buildings mean commercial buildings that are constructed in one or more modules or modular components built at a location other than the commercial site and include permanent commercial structures and commercial structures designed to be transported from one commercial site to another. The term includes the plumbing, heating, air-conditioning, and electrical systems. The term does not include buildings in excess of 4 stories or 60 feet, construction site buildings, or commercial structures installed on temporary foundations that are either not open to the public or are less than 1,500 square feet in total area and not used as a school or place of religious worship. Examples of industrialized buildings include equipment shelters, restaurants, offices, classrooms, medical complexes, hazardous storage buildings, and more.

As defined by Section 1202.001 of the Occupations Code modular component means a structural portion of any dwelling or building that is constructed at a location other than the installation site in such a manner that its construction cannot be adequately inspected for code compliance at the installation site without damage or removal of a part thereof and reconstruction.

Agency Responsibilities

The Texas Department of Licensing and Regulation (TDLR) is responsible for registering and approving persons engaged in the construction, selling, leasing, transporting, installing, and inspecting of industrialized housing and buildings. The department also issues decals and insignia for certification of modular housing, buildings and components; monitors the performance of third party inspection and review agencies; and acts as secretary to the Texas Industrialized Building Code Council (Council). The Council approves third parties, establishes procedures for inspections, and makes determinations concerning alternative materials or methods of construction. The decisions, actions, and interpretations of the council are binding on the department, third party agencies, municipalities, and other political subdivisions.

Legal Requirements

Industrialized housing and buildings must currently meet or exceed the requirements of the 2003 International Building Code (IBC), the 2003 International Plumbing Code (IPC), the 2003 International Mechanical Code (IMC), the 2003 International Fuel Gas Code (IFGC), the 2002 National Electrical Code (NEC), and amendments to these codes in accordance with department rule 70.101. Residential one and two family housing must comply with the requirements of the 2003 International Residential Code, the 2002 NEC, and amendments to these codes in accordance with department rule 70.101.

Manufacturers of industrialized housing and buildings must be registered and certified by the Department to build for the State of Texas – a list of certified manufacturers may be downloaded from our web site at http://www.tdlr.texas.gov/ihb/ihblists.htm. Modules and modular components constructed under the IHB program can be identified by the label [decal (see description below) or insignia] affixed to the module or modular component by the manufacturer. By affixing the IHB decal to the module or the IHB insignia to a modular component, a manufacturer certifies that the module or modular component is constructed and inspected in accordance with the approved design package, the mandatory building codes, and department rule 70.62 relating to in plant inspections. All modules or modular components built for Texas under the IHB program must have a decal or insignia affixed at the time the unit is shipped from the manufacturer.

Current Decal Description

For a description of past decals that may still be found on existing modular housing and buildings, or for a description of the modular component insigina, see IHB Bulletin #97-001 (form #033ihb) available on our web site.

IHB decal

The decal has a white background, a blue star and blue lettering, and is approximately 2” x 4.” If the product is tampered with the decal will chip away in tiny pieces. The decal is located on the house or building as indicated on the manufacturer’s approved plans.

A person who sells, leases, or installs industrialized housing and buildings must be registered with the department as an industrialized builder – a list of registered industrialized builders may be downloaded from our web site at http://www.tdlr.texas.gov/ihb/ihblists.htm. A subcontractor of an industrialized builder is not required to be registered. A person that does not purchase industrialized housing or buildings from a manufacturer for sale or lease to the public may file for an installation permit from the Department in lieu of registering as an industrialized builder.

Third party agencies, known as design review agencies (DRA's), involved in the plan review of construction documents for IHB manufacturers must be registered with the Department and approved by the Council – a list of approved DRA’s may be downloaded from our web site at http://www.tdlr.texas.gov/ihb/ihblists.htm. All modules or modular components built for Texas under the IHB program must be constructed to plans approved by a Council approved DRA. All pages of the designs, plans, and specifications that meet or exceed the mandatory building codes must bear the stamp of approval of the Council. The Council stamps of approval are shown below.

IHB Council stamp

IBC stamp

Third party inspectors involved in the in plant and site inspections of industrialized housing and buildings must be registered with the department and approved by the council – a list of approved third party inspectors and inspection agencies may be downloaded from our web site at http://www.tdlr.texas.gov/ihb/ihblists.htm. All modules or modular components to which decals or insignia are affixed must be inspected in the plant by council approved third party inspectors.

Authority Belonging to Municipalities

The local building official is responsible for all site inspections of industrialized housing and buildings sited within their jurisdiction. Local building officials may require an approved set of plans for review prior to issuance of a permit.

Except as provided by section 1202.253 of the Occupations Code, all local requirements and regulations shall be uniformly applied and enforced without distinction as to whether the unit was manufactured in a plant or constructed on site. Section 1202.253 of the Occupations Code permits municipalities to adopt ordinances that require compliance of industrialized housing installed within the jurisdiction of the municipality with certain provisions relating to the value of the house and the land, the exterior appearance of the house, and aesthetic standards.

A municipality may not require or enforce any amendments to the mandatory codes as a prerequisite for granting or approving any local building or construction permits or certificates of occupancy. A municipality may enforce local land use and zoning requirements, building setback requirements, side and rear yard requirements, site planning and development and property line requirements, subdivision control, and landscape architectural requirements, and any other requirements not in conflict with the IHB law or any other state law. A municipality may establish procedures for the inspection of the foundation and erection and installation of industrialized housing and buildings to ensure compliance with the mandatory building codes and approved designs, plans, and specifications.

Chapter 1202 of the Occupations Code also requires that an industrialized building be recognized as in compliance with a new mandatory building code or an amendment to the mandatory building code adopted by the Council provided that the building bears an approved decal or insignia indicating compliance with the mandatory building codes and provided that the building has not been altered or modified from its original construction. A building that has not been maintained shall be considered altered. Industrialized buildings that have been altered, or that will be altered, must be recertified in accordance with the Department rule 70.74.

Deed Restrictions

Chapter 1202 of the Occupations Code does not affect deed restrictions.

For Further Assistance

For more information or to file a complaint contact:

Texas Department of Licensing and Regulation
Industrialized Housing and Buildings
PO Box 12157
Austin, TX 78711
(800) 803-9202 [in state only]
(512) 539-5735
(512) 539-5736 [FAX]
IHBTech@tdlr.texas.gov