Model/Z Secures $32 Million to Advance Modular Affordable Housing Production

Los Angeles-based Model/Z, a pioneer in housing innovation and volumetric modular manufacturing, has recently concluded a significant financing arrangement involving $32 million from the New Markets Tax Credit (NMTC) program. This funding is specifically aimed at propelling the company’s production of modular housing, which is vital for affordable and workforce housing projects.

The challenge tackled by this financing is a key hurdle for modular construction: obtaining funds to produce homes while they are still being built in a factory. Traditionally, lenders were hesitant to provide financing for modules that had not yet been delivered to a construction site and permanently fixed to the land. As modular construction becomes increasingly favored for its efficiency — allowing simultaneous construction of homes in a factory while site work is taking place — bridging this financial gap is crucial.

The new NMTC financing empowers Model/Z to manufacture housing modules ahead of their on-site construction schedule, thereby preserving the advantages of modular construction. The immediate result is an expected production of approximately 800 housing units between 2026 and 2027, along with an overall pipeline of 2,500 affordable and workforce housing units. This investment is anticipated to create and retain over 117 permanent jobs in the Watts and surrounding South Los Angeles regions.

Model/Z’s factory is not merely a production facility but also a catalyst for community development, offering career pathways in skilled trades such as plumbing, electrical work, and assembly. These opportunities are especially meaningful for individuals lacking a four-year college degree, aligning well with the socioeconomic dynamics of the area. “Housing affordability remains one of the biggest challenges facing California,” stated Martin Muoto, the founder of Model/Z. “This financing represents an innovative step toward solving the housing crisis.”

The NMTC allocation was made possible through key partnerships with Community Development Entities, including Greenline Community Development Fund and New Markets Community Capital. Together, they aim to catalyze private investment in economically distressed regions, enhancing development opportunities for underserved communities.

Specific projects already benefiting from this financing include the 90-unit affordable housing development known as 105th Central, led by Logos Faith Development, which exemplifies the successful intersection of mission, financing, and community enhancement.

Model/Z combines cutting-edge manufacturing techniques, standardization, and advanced AI design processes to mitigate development costs and timelines. By embracing these innovative methodologies, the company is redefining how affordable housing is designed and delivered.

In an era where the scale and speed of housing production are more critical than ever, Model/Z stands at the forefront, transforming the landscape of affordable housing. This latest funding milestone is not just vital for the company but also serves as a potential blueprint for others in the modular housing industry, showing how financing can be creatively structured to unlock faster production and construction timelines. Model/Z’s advancements are promising for California, aiming to deliver a scalable, economical approach to the housing crisis, benefitting the community at large.