Model/Z Secures $32 Million to Overcome Modular Housing Financing Hurdles

Traditional construction lending typically relies on buildings being affixed to real estate, a requirement that has long stalled the scaling of modular housing. Because lenders often refuse to advance funds while units are still in the factory, developers have been forced to carry significant production costs, which undermines the speed and efficiency advantages of modular building. This new capital injection allows Model/Z to manufacture modules ahead of on-site schedules, effectively bridging the gap between factory assembly and land development.

The financing, provided by Greenline Community Development Fund and New Markets Community Capital, is earmarked to support approximately 800 housing units scheduled for delivery through 2027. Beyond immediate production, the capital strengthens a broader pipeline of 2,500 affordable and workforce housing units. The initiative also aims to sustain over 117 permanent, skilled jobs at the company’s Watts facility—positions that prioritize accessibility for local South Los Angeles residents.

Founder Martin Muoto noted that the structure serves as a replicable blueprint for the wider industry, demonstrating how standardized manufacturing can align with complex financial instruments. The funds are already in use for projects such as the 105th & Central development, which utilizes church-owned land to provide 90 units of affordable housing. By leveraging AI-assisted design and standardized steel-frame configurations, Model/Z intends to reduce the project-specific risks that previously deterred traditional lenders from supporting modular construction.