BOXABL gets 75% cut in California Casita inspections

Streamlining shipments as the company pursues its proposed merger with FG Merger II Corp.

Published on Feb. 22, 2026

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California's Department of Housing and Community Development has reduced the inspection burden on BOXABL's Casita Studio units by 75%, from 100% to just 25% of each unit. This will help BOXABL accelerate growth in the state's large housing market as the company continues its proposed merger with FG Merger II Corp.

Why it matters

The reduced inspections will allow BOXABL to deliver its innovative, factory-built modular homes to California customers more efficiently, supporting the state's efforts to address its severe housing shortage through solutions like accessory dwelling units (ADUs).

The details

Under California regulations, new models from manufacturing facilities must initially undergo 100% inspection, with the first 10 units fully approved before any reduction. After working with state officials, BOXABL has now secured a 75% reduction, with only 25% of each Casita Studio requiring state inspection. This will speed up deliveries to customers in the nation's largest housing market.

  • BOXABL received approval as a 'Commercial Modular Manufacturer' from the State of California last month.
  • The 75% reduction in inspections will take effect immediately.

The players

BOXABL Inc.

A leader in innovative, factory-built modular solutions transforming the housing market.

California Department of Housing and Community Development (HCD)

The state agency that regulates and inspects new modular housing units.

FG Merger II Corp. (FGMC)

A publicly traded special purpose acquisition company (SPAC) that BOXABL is pursuing a proposed merger with.

Martin Costas

Chief Financial Officer of BOXABL.

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What they’re saying

“Since we received our approval as a 'Commercial Modular Manufacturer' from the State of California last month, our team has demonstrated the quality of our products and the stringent quality controls we have in our production process. We have worked closely with state officials to streamline the process of getting our innovative solutions delivered and assembled by reducing state-level inspections to 25 percent of each of our Casita Studios.”

— Martin Costas, Chief Financial Officer of BOXABL (stocktitan.net)

What’s next

BOXABL continues its ongoing progress toward its proposed merger with FG Merger II Corp. (NASDAQ: FGMC), a publicly traded special purpose acquisition company. The proposed merger, which remains subject to customary approvals, could provide BOXABL with enhanced resources to scale production and expand its impact across diverse industries.

The takeaway

The 75% reduction in inspections for BOXABL's Casita Studio units in California represents a significant milestone that will help the company accelerate deliveries and growth in the state's large and underserved housing market. This development aligns with California's push for faster deployment of innovative, factory-built modular solutions to address the state's severe housing shortage.