Model/Z Secures $32 Million in Financing for Modular Housing Production
Housing manufacturer Model/Z has closed a $32 million tax credit transaction to finance modular housing. The funding aims to accelerate factory-built home production and address industry financing challenges.
Los Angeles-based Model/Z, a company specializing in housing innovation and modular manufacturing, announced the closing of a $32 million New Markets Tax Credit (NMTC) transaction. The financing is intended to support the production of modular housing for affordable and workforce housing developments.
The funding addresses a persistent barrier in modular construction: how to finance homes while they are being built in a factory, before delivery to a site and permanent installation. Traditional construction financing often hesitates to fund modules still within the factory, creating delays and cost increases for developers and manufacturers.
Model/Z's NMTC financing provides a working capital line to begin manufacturing modules ahead of project schedules. This allows developers to leverage the speed advantages of modular construction, while enabling Model/Z to maintain consistent factory output, improve efficiency, and reduce costs.
The financing is expected to support approximately 800 units for delivery in 2026–27 and facilitate Model/Z's pipeline of around 2,500 affordable and workforce housing units. The investment is also projected to create or retain over 117 permanent jobs, accessible to residents of Watts and surrounding South Los Angeles communities. Since its factory opened in 2024, Model/Z has produced over 500 housing modules.