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Modular homes are built to the same local and state codes as traditional stick-built homes. The way they differ is how and where they are built.
Factory Eco-Friendliness  | 
  This historically inspired traditional modular home design incorporates such green elements as fiber cement lap board siding, fiber cement exterior trim, metal roofing with high recycled content, and a covered porch to provide shade from hot high summer sun and allow passive solar gains from low winter sun. (c) New World Home photo
 | As their name implies, modular homes are built as three-dimensional “modules,” or boxes. Each module is fully complete with electrical, plumbing, drywall and some fixtures. The modules are built to design specifications. Instead of being “stick-built” on a home site, modular homes might be up to 90 percent “systems-built” in a factory then transported to the site, assembled and finished.
Because they are factory-built, modular homes have several eco-friendly advantages over site-built homes. Factories provide a secure and dry construction environment. Computer-assisted drawings and the efficiencies of the production line allow for more precise access to and use of materials. Because everything is based at one site, certain materials can be purchased in bulk and, if there is any excess, it can be reused onsite. When modules are transported to the site to be assembled on a permanent foundation and completed, there is less environmental disturbance.
Stick-built construction must deal with problems associated with an outdoor site. There may be a large amount of waste as materials left unused are often disposed of instead of recycled. Inclement weather and inadequate storage can damage materials. Lumber and other supplies must be dealt with where they are dropped off by supply trucks. Open sites are vulnerable to theft and vandalism. Also, those working on the house must deal with inclement weather such as cold, high heat, high humidity and rain.
New Certification Process “The new green aspect to consider is that the industry is working closely in developing the only green certification process for manufactured and modular homes,” says Thayer Long, executive vice president of the Manufactured Housing Institute in Arlington, Va. 
  LivingHomes are warm, modern, prefab homes that include sustainable materials such as concrete floors with radiant heating, Forest Stewardship Council-certified woods and indoor gardens to improve indoor air quality.
 |  | “These homes will be built to the new National Association of Home Builders’ green building standard that site-built homes also will meet,” Long says. “In addition, the new industry process will include certifying that the home meets Energy Star requirements.”
The separate certification process specific to the industry is expected to be rolled out in 2009. It will apply not only to modular homes but to all factory-built homes. Long expects that primarily modular homes will undergo the first certifications.
LEED Verification Some modular home companies are already pushing the green envelope. One company is LivingHomes of Santa Monica, Calif. It distinguishes itself from traditional modular builders by integrating a comprehensive environmental program in all of its homes, says CEO Steve Glenn.
“LivingHomes include sustainable building materials, technologies and fixtures that minimize energy and water use and that generate energy from renewable resources, as well as materials that reduce indoor air pollution,” he says. “We also design our homes to maximize natural light and ventilation. All LivingHomes are built to receive a U.S. Green Building Council LEED (Leadership in Energy and Environmental Design) rating of Silver or above to verify that they are built in a sustainable way.”
Taking eco-friendliness to new levels, these modular homes use sustainable materials for framing, exterior or interior cladding, floors, cabinets and countertops. They are even built with greywater-ready plumbing, which means there is separate plumbing from sinks, showers and laundry that can be filtered and reused to irrigate landscaping.
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