No. It would violate California’s Factory-Built Housing Law to discriminate against modular construction versus other techniques. California Dept. of Housing and Community Development “Factory Built Housing Guide – Handbook for City / County Building Departments” has this to say:
“Factory-built housing can be installed where other similar types of housing units are built or exist. HSC Section 19993 allows local governments to exercise their local land use requirements with respect to factory-built housing, but the Attorney General has ruled that local governments may not require use permits for factory-built housing built in residential areas. Local requirements imposed on factory-built housing may not differ substantially from requirements imposed on other residential buildings of the same size.”