In recent times, wildfires in Los Angeles have destroyed thousands of homes, making post-disaster rebuilding a top priority. With inflation on the rise, modular homes unexpectedly have become the preferred choice for residents in disaster areas due to their affordability and quick assembly.
One of the modular home providers, Chesley Chao, introduced a “fireproof” modular home design specifically for post-disaster reconstruction. The house is assembled from three standard 40-foot shipping containers, with a total area of approximately 964 square feet. The interior design is compact and includes two bedrooms, a bathroom, a kitchen, a dining area, and a living room. The house is constructed with light steel structure and cement boards, with exterior walls meeting a two-hour fire resistance standard, suitable for California’s Accessory Dwelling Unit (ADU) regulations that limit the building area to no more than 1200 square feet in the backyard.
Chesley Chao stated that this solution not only meets the basic living needs of disaster-affected households but also helps residents generate additional income through short-term renting to alleviate the housing shortage issue.
The design, construction, and transportation of the “fireproof” modular home are all supported by the company throughout the process, with a completion timeline of about four months from ordering to finishing. After design completion at the production site, the house can be assembled on-site within about two weeks. Compared to traditional construction, modular homes avoid cost escalation due to rising labor expenses and significantly shorten the construction timeline.
ACG Founding President, Liu Yanqiu, mentioned that the government provides various assistance measures for disaster-affected households. Each disaster victim is eligible for a $770 emergency compensation grant. For homeowners with mortgages owned by Fannie Mae or Freddie Mac, repayment can be deferred for a year and foreclosure actions can be avoided. Homeowners can apply for up to $500,000 in reconstruction loans for renovations or rebuilding, with a grace period in the first year and repayment over 30 years at a fixed rate of around $2,300 per month (below 4% interest rate), without prepayment penalties.
For commercial loss loans, if businesses have not received other compensation (e.g., insurance claims), the interest rate is below 4%, with a maximum loan amount of $2 million to help with reconstruction or fire-related losses. If insurance claims were received, the additional loan’s interest rate will be 8%, with the first year interest-free, and repayment over 30 years at a fixed rate.
Liu Yanqiu advised disaster-affected households to be flexible in acquiring homes. For example, in the case of modular homes, they can choose between purchasing outright or renting. Renting provides more flexible options, and after five years, the property can be transferred to the tenant’s name. Direct purchasing is suitable for financially capable families, avoiding additional interest expenses. ACG Founding also offers a $5,000 grant specifically for rebuilding households opting for modular homes to ease the reconstruction burden.
Vice President of California Asian Insurance and Financial Professionals Association (CAIFPA), You Hui-ling, pointed out that traditional wood-framed houses have a high risk of damage in fires, leading to higher fire insurance rates compared to houses built with non-combustible materials. “Fireproof” modular homes using steel and cement materials not only reduce fire insurance costs but also effectively minimize disaster losses. They are a safe and economical choice for rebuilding. ◇