Both state modular programs and local building departments play essential roles in approving container-based structures.
The state certifies the building itself; the local Authority Having Jurisdiction (AHJ) approves the site: foundations, utilities, and zoning.
Understanding this split early prevents costly delays and red tags at the finish line.
Many project owners first hear about state modular programs and assume that once a structure has a state insignia, it’s simply approved for installation anywhere in that state.
Unfortunately, that’s not quite true.
State modular approval covers structural and life-safety compliance within the factory. But local authorities having jurisdiction (AHJs) still control where and how the building sits on a site. Ignoring that local authority can lead to one of the most frustrating project outcomes imaginable: a brand-new, state-approved facility sitting idle with no occupancy permit.
“People think the state stamp is the finish line. It’s really just one leg of the race.” — Stephen Shang, CEO, Falcon Structures
State modular programs exist to streamline building review for structures built off-site, like shipping-container modules.
Here’s what happens during that process:
Once that insignia is applied, the module is legally considered a code-compliant building component, ready to ship and install anywhere within the approving state.
Learn more: FIELD NOTE 08 - The Secret Power of State Certification for Container-Based Modular Buildings
But the state’s jurisdiction stops at the structure itself. It does not include:
That’s where the local AHJ steps in.
Local governments hold power over the site itself.
Even though a container module might arrive fully certified, it still needs local approval to occupy that piece of ground. Local AHJs typically handle:
This two-tier system — state for structure, local for site — can be confusing, but it actually prevents duplication. The state doesn’t recheck every bolt; the city doesn’t re-review every drawing. Each focuses on its area of authority.
Falcon sits in a unique position, with deep experience in state modular programs and firsthand understanding of how local permitting processes intersect with certified modular construction. Our certification in 13 state modular programs means we can:
In practice, Falcon acts as a technical bridge between state modular approvals and local understanding. We provide clear documentation and technical context to help local officials interpret state insignias and ICC materials like ESR-4163 (our AC462 compliance report from ICC-ES), while customers retain responsibility for local permitting, site approvals, and AHJ coordination
“When we show up on-site, we bring a language that both sides speak. The state trusts us because we’ve passed their audits. The local officials trust us because we show up prepared.” — Stephen Shang, CEO, Falcon Structures
Skipping either authority can lead to costly downtime.
When both reviews are respected, projects proceed efficiently with parallel paths instead of bottlenecks.
Often caused by unpermitted foundations or missed site reviews. Falcon provides documentation showing what has already been approved at the state level and supports the customer as they work through required local corrections with the AHJ
We provide ICC documentation and state program references to help officials confirm compliance. Once they understand the modular process, most AHJs become allies rather than obstacles.
Because Falcon holds certifications in multiple states, we adapt submittals to each state’s requirements and confirm reciprocity where possible.
For customers operating in multiple regions, Falcon helps establish a repeatable permitting framework, reusing documentation to simplify and streamline future approvals.
When executed in tandem, this approach eliminates redundant reviews and keeps construction timelines predictable.
Few states illustrate the balance (and tension) between state and local authority as clearly as Massachusetts.
Unlike many other states, Massachusetts operates under a “home rule” system, meaning local governments retain broad control over building enforcement even when state modular rules apply. A manufacturer can hold full state certification, but if a town’s building commissioner decides additional review is needed, that local decision stands.
“In Massachusetts, you can have a state insignia, and a local inspector can still say, ‘Not on my watch until I see your site drawings.’ They have that right under home rule.” — Stephen Shang, CEO, Falcon Structures
While this can feel frustrating for builders, it reflects a legitimate concern: Local inspectors want assurance that state-certified modules integrate safely with their community’s infrastructure.
That’s why Falcon encourages customers to treat local engagement as a parallel process, not a postscript.
Use this checklist early, before design is finalized or fabrication begins, to help prevent jurisdiction-related delays.
☐ Confirm which state modular program applies (if any)
☐ Identify the local AHJ (city, county, or authority) with site control
☐ Determine if additional agencies are involved (fire marshal, health department, zoning board)
More than one AHJ can have authority; clarity upfront avoids conflicting directives later.
☐ Structural design and container modifications
☐ Life-safety systems reviewed at the factory
☐ Third-Party Inspection Agency (TPIA) requirements
☐ State insignia issuance process and timing
State approval ends at the module, not the property line.
☐ Zoning compliance for the intended use
☐ Site plan approval (setbacks, access, drainage)
☐ Foundation and anchoring permits
☐ Utility connections and inspections
☐ Final Certificate of Occupancy (CO)
Even a fully state-approved module cannot be occupied without local sign-off.
☐ Submit modular plans to the state or TPIA
☐ Submit civil, foundation, and site drawings locally
☐ Coordinate timelines so fabrication and site work overlap
☐ Track approval milestones on both paths
Parallel permitting is one of the biggest schedule advantages of modular construction. Intentional planning makes the most of this opportunity.
☐ State insignia details
☐ ICC-ES documentation (e.g., ESR-4163, AC462 compliance)
☐ Structural and anchoring details
☐ Clear scope boundaries showing what was reviewed by the state vs. local AHJ
☐ One party responsible for communicating with both state and local authorities
☐ Clear process for addressing corrections or questions
☐ Consistent documentation shared across agencies
☐ State approval secured or scheduled
☐ Local permits issued for site work
☐ Installation and inspection sequence confirmed
☐ Occupancy requirements clearly defined
Check all these with diligence, and your project will be well positioned to install once and open on time.