Modular Construction Insured Lending Demonstration - Sources Sought.pdf

Sources Sought Synopsis

The Department of Housing and Urban Development (HUD) is issuing this sources sought synopsis as a means of conducting market research to identify parties having an interest in and the resources to support this requirement for Modular Construction Insured Lending

Demonstration. The result of this market research will contribute to determining the method of procurement. The applicable North American Industry Classification System (NAICS) code assigned to this procurement is 522110 Commercial Banking – PSC code R711 Support -

Management: Banking Includes: Accepting and Cashing Government Checks and Other

Payment Instruments, Accepting Direct Deposits, Accepting Payments to The Government

From The Public.

There is no solicitation at this time. This request for capability information does not constitute a request for proposals; submission of any information in response to this market survey is purely voluntary; the government assumes no financial responsibility for any costs incurred.

If your organization has the potential capacity to perform these contract services, please provide the following information: 1) organization name, address, email address, website address, telephone number, and size and type of ownership for the organization; and 2) tailored capability statements addressing the particulars of this effort, with appropriate documentation supporting claims of organizational and staff capability. If significant subcontracting or teaming is anticipated in order to deliver technical capability, organizations should address the administrative and management structure of such arrangements.

The government will evaluate market information to ascertain potential market capacity to 1) provide services consistent in scope and scale with those described in this notice and otherwise anticipated; 2) secure and apply the full range of corporate financial, human capital, and technical resources required to successfully perform similar requirements; 3) implement a successful project management plan that includes: compliance with program schedules; cost containment; meeting and tracking performance; hiring and retention of personnel and risk mitigation; and 4) provide services under a performance based service acquisition contract.

Based on the responses to this sources sought notice/market research, this requirement may be set-aside for small businesses or procured through full and open competition, and multiple awards may be made. Telephone inquiries will not be accepted or acknowledged, and no feedback or evaluations will be provided to companies regarding their submissions.

Submission Instructions: Interested parties who consider themselves qualified to perform the above-listed services are invited to submit a response to this Sources Sought Notice by

<Monday, January 19, 2026, 2 PM ET >. All responses under this Sources Sought Notice must be emailed to <Dwayne.E.Gist@hud.gov>. Additional information on the required services is listed below.

If you have any questions concerning this opportunity, please contact: < Dwayne Gist at dwayne.e.gist@hud.gov>.

Modular Construction Insured Lending Demonstration

Background:

HUD’s Office of Policy Development & Research is seeking a Contractor to implement a demonstration to increase the availability of financing to developers/manufacturers of modular homes. HUD is interested in reducing the perceived risk of lending to developers/manufacturers of single and multifamily modular homes. The contractor will, in coordination with HUD, design a loan guarantee available to developers and manufacturers during the manufacturing period, a period which suffers from a perception of risk that makes it difficult to secure a loan for the expenses incurred during it. Federal funds would be used to support the contractor’s design, implementation and administration of the demonstration; the purpose would be to insure private lending so that access to capital increases, thus driving more volume and efficiency (faster, better, cheaper) in modular home manufacturing. To be successful, the demonstration contractor must show that its conceptual approach is viable and has the potential to improve the volume and efficiency of modular home production.

The government’s assistance, in the form of a loan guarantee product (which would be issued by the contractor) would cover the first loss tranche (or first loss position), up to a specified percentage. A private insurer would then take the second loss tranche and this can be up to 100% of the remainder of the loan. Given that federal funds would insure a certain percentage of each loan, the number of dollars committed to each loan will determine how many are made. Hence, the contractor would manage the iterative use of the demonstration’s funds and set up a system for managing and minimizing the risks associated with the loan guarantee. The demonstration is expected to increase access to capital which will lead to an increase in modular construction production and shorten the time for new project financing approval. HUD seeks a Contractor to design and establish this loan guarantee product and operate the program such that it sustains itself for two to five years.

The Contractor may charge a reasonable fee to cover its administrative costs. The Contractor will reimburse lenders for losses (in the event that a modular developer/manufacturer is unable to repay its loan), however, the Contractor is also expected to minimize such losses by creating parameters that define acceptable risks when selecting participants.

HUD will require the Contractor to provide regular updates on the progress of the demonstration and to work with an independent evaluator to monitor the progress of the demonstration and to evaluate its effectiveness.

The purpose of this RFI is to:

1. Determine the interest and qualifications of potential bidders to develop and implement this demonstration.

2. Solicit reactions to the concept of an insurance-like/guarantee for the purpose of modeling a way to provide reliable and accessible financing for modular home construction.

3. Solicit ideas for how to design a demonstration that would address the perceived problem of excess risks to lenders who typically finance modular home construction. We are interested in your reactions to this model and your suggestions for others.

4. Solicit feedback on the proposed vision to use government funds to address the perceived risk of lending to modular home manufacturers, and whether this intervention holds promise to increase access to capital which in turn increases volume and efficiency in the production of modular homes.

5. Solicit ideas about how HUD would most quickly and efficiently reimburse the contractor in the event that a contractor payout is required for a failed loan.

6. Solicit feedback on how to structure the requirements for bidders who could capably design and implement the demonstration—what qualifications should the government seek in picking a firm to design and implement the demonstration?

7. Are you interested in bidding on this work and what are your firm’s qualifications?

Set of skill categories required for the tasks listed above:

Not available at this time.

Contemplated performance metrics:

Contemplated report requirements:

Contemplated dollar value of the project:

Seeking a rough order estimate from industry partners.

Contemplated place of performance:

Contractor’s facility