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HOA acceptance is more based on finished results than construction. There was an outfit in Bakersfield that was doing prefab metal module walls and roofs, delivered on flatbeds ready to install and paint. When the houses were finished, they matched the very exclusive neighborhood to the consternation of the HOA. Now if modular construction is short hand for mobile home trailer with wheels, yup, they might not be acceptable although in many US jurisdictions there is law in place that allows alternative methods of construction/ delivery.
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casual notes from the underground:There are some "experts" out there that in reality don't have a clue as to what they are doing.
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