BOXABL's Innovative Modular Housing Line Sees Inspection Cuts in California

BOXABL Achieves Major Milestone in Modular Housing

In a groundbreaking development for the housing industry, BOXABL Inc., renowned for its pioneering approach to factory-built modular homes, has successfully reduced the inspection requirements for its Casita Studio products in California. As announced on February 18, 2026, the California Department of Housing and Community Development (HCD) has dramatically decreased the inspection load from 100% to just 25% for each unit shipped to the state. This monumental change is expected to streamline the delivery process significantly, enabling BOXABL to provide housing solutions more efficiently to those in need.

According to California regulations, new factory-produced models must undergo comprehensive inspections prior to public release. Traditionally, the first ten units of a new model must be fully inspected before any reduction in inspection frequency is considered. However, after extensive collaboration between BOXABL and the HCD, this requirement has been cut down to just a quarter of each unit. This shift not only accelerates the time-to-market for BOXABL products but also enhances customer accessibility to much-needed housing solutions.

Martin Costas, BOXABL's Chief Financial Officer, expressed his enthusiasm about this development: “Since obtaining our status as a 'Commercial Modular Manufacturer' last month, our team has shown exceptional product quality and rigorous quality control processes. Through our cooperative efforts with state officials, we’ve significantly reduced the inspection requirements, which is a game-changer for us in California, the largest housing market in the U.S.”

The urgency for housing in California cannot be overstated. With an estimated need for 2.5 million new homes to be built by 2032, the state is facing a dire housing crisis due to factors such as household growth, overcrowding, low vacancy rates, and affordability challenges across various income levels. Some estimates suggest a broader shortage of around 3 million units as of 2025. Accessory Dwelling Units (ADUs) like BOXABL's Casita Studio are increasingly recognized as a viable solution; in 2023 alone, California granted nearly 27,000 permits for ADUs, marking a staggering increase in public acceptance and approval of such housing solutions.

The efficiency of modular homes, particularly the BOXABL Casita Studio, aligns perfectly with California's objectives for faster deployment of housing units. The Casita is a compact, yet fully-functional studio unit equipped with a kitchen, bathroom, and all necessary utilities, unfolding on-site in less than an hour. BOXABL also plans to introduce the Baby Box, a smaller, 120 square foot version designed for simpler installations, along with other modular configurations to cater to various residential needs.

As BOXABL continues to develop its offerings in this critical market, the company is simultaneously moving forward with its proposed merger with FG Merger II Corp. This merger aims to provide BOXABL with the necessary resources to expand its production and reach across different sectors, enhancing its capacity to address the growing housing crisis sustainably.

With a commitment to innovation in modular construction and alignment with California's housing goals, BOXABL stands poised to make a significant impact in the fight against the state's housing shortage.

For more information on BOXABL and its innovative solutions, visit www.boxabl.com.