Boxabl Wins Major Inspection Relief in California as SPAC Merger Advances

New updates have been reported about BOXABL.

Boxabl secured a 75% reduction in state inspections for its Casita Studio units from the California Department of Housing and Community Development, cutting required checks to 25% of units and materially speeding deliveries into the company’s most important housing market. Under California Title 25 §3032, new modular models normally face 100% inspection for the first 10 units, but following Boxabl’s recent approval as a Commercial Modular Manufacturer and demonstrated factory quality controls, regulators agreed to the lower inspection rate, which CFO Martin Costas said will help accelerate growth in the state.

The relief comes as California targets roughly 2.5 million new homes by 2032 amid a broader shortage estimated at about 3 million units, with Accessory Dwelling Units such as Boxabl’s Casita Studio accounting for over 21% of new housing permits in 2023 and projected to exceed 30,000 ADU approvals annually. Boxabl views this regulatory easing, combined with rapidly expanding ADU demand, as a significant revenue opportunity for its factory-built modular housing platform, and continues to advance its proposed merger with SPAC FG Merger II Corp., which remains subject to customary approvals but is expected to provide additional capital to scale production, broaden its product lineup beyond the Casita and Baby Box, and expand into larger stackable and connectable housing configurations for residential and multifamily customers.