From Local to Federal: The Relocatable Sector Can Foresee Regulatory Issues

Changing Codes

Arevalo mentions that another important way in which MBI is being proactive is by working in partnership with the International Code Council (ICC). “MBI is working with the ICC to create a document that gives guidance for modular inspections and approvals. The goal is to have every jurisdiction across the country adopt those guidelines, so there’s consistency everywhere — which makes it a lot easier to set up modular programs.”

Currently, Arevalo is working with the Division of the State Architect, which oversees all public school construction in California. He’s helping them tailor the guidelines for how to check whether existing buildings meet the current energy code, and how to enforce the code. He says there’s an estimated 40- to 50,000 relocatable classrooms on school sites in the state, and nobody wants school districts to have to replace all of them. “Instead, schools need a reasonable path to compliance. Rather than a prescriptive code that says a building must have features x, y, and z, it’s better to measure compliance by overall performance,” Arevalo explains. “This means that if the HVAC is upgraded, the building can be in compliance, even if the walls are not ideal. Performance averages out over the different building systems. We’re trying to have the state understand that the performance method of ensuring compliance is acceptable.”

MBI’s knowledge of the relevant codes and regulations and the organization’s connections with government officials can help when a modular company runs into an issue. Arevalo recalls that last year, one of his company’s sales representatives couldn’t get a building approved in a Californian city; the city was saying the building wasn’t allowed. “I called Jon [Hannah-Spacagna] and asked for his help. Jon called his contact at the State of California Housing and Community Development and explained that they’d be violating state law by not approving the building,” Arevalo explains. “That solved the problem, and the building was approved.

The Relocatable Side of the Modular Industry

Arevalo’s view is that the relocatable building sector can be a bellwether for the rest of the modular industry. Because relocatable buildings are leased out to numerous sites in different cities and states, companies in this space see a lot of different regulatory issues crop up at the local level — issues that can eventually surface at the state and federal level, affecting more members of the industry. Arevalo’s now the Chair of MBI’s Relocatable Buildings Council.

“An engaged Relocatable Building Council helps MBI be even more proactive, by keeping our eyes open at the local level — like being scouts for the state and federal level.”

The regulatory problems that Arevalo has in mind often involve unpredictable judgements from local code officials. “Too often, whether a relocatable building can be placed on a particular site has been up to a local code official’s discretion or interpretation of the building code,” he explains. “Being subject to the inconsistent judgements of local officials is risky and it can get to the point where it stops you being able to do business. Having a uniform code that applies consistently from one town to the next is so important.”