The U.S. Department of Housing and Urban Development (HUD) has introduced a comprehensive set of initiatives aimed at increasing the availability and affordability of manufactured homes. As part of the Biden-Harris Administration’s Housing Supply Action Plan, these actions are designed to support residents of manufactured homes and manufactured housing communities, including those that are resident-owned.
Key Highlights:
Launch of the PRICE Program: HUD has unveiled the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Program, a first-of-its-kind $225 million competitive grant. This program aims to preserve and revitalize manufactured housing and communities by funding repairs, rehabilitation, infrastructure upgrades (such as water, sewer, utilities, or broadband), and improvements to increase community resilience against extreme weather. It also supports services for homeowners, including housing counseling and activities that promote resident-owned management structures.
FHA Financing Enhancements: The Federal Housing Administration (FHA) has proposed new policies to promote stability and preserve affordability for owners of manufactured homes in existing communities. The draft policy allows resident-owned cooperatives and other mission-oriented borrowers to access FHA-insured financing under its Multifamily 223(f) program. This initiative provides additional options for purchasing or refinancing manufactured home communities, potentially reducing land rent costs and financing necessary community improvements.
Updated Title I Manufactured Home Loan Program: HUD announced new methodologies for calculating loan limits under the Title I Manufactured Home Loan Program to align with current market pricing. This update is expected to incentivize more lenders to participate and expand usage by borrowers to finance manufactured homes titled as personal property. FHA will also recalculate loan limits annually to keep pace with home price changes.
Ginnie Mae’s Support for Manufactured Housing: Ginnie Mae has revised its financial eligibility requirements for Title I Issuers to reduce barriers to entry and increase lender participation in its securitization program for Title I loans. This move is expected to expand access to capital and support the manufactured housing supply.
Implications for the Manufactured Housing Industry:
These coordinated efforts are set to significantly impact the manufactured housing industry by:
Expanding Affordable Housing Options: Providing financial support and updating loan programs will make it easier for individuals and families to access affordable, safe, and stable housing.
Supporting Community Revitalization: The PRICE Program will enable improvements in infrastructure and services within manufactured housing communities, enhancing residents’ quality of life.
Encouraging Lender Participation: Updates to FHA and Ginnie Mae programs are expected to incentivize more lenders to participate, increasing financing options for buyers and community owners.
Supporting Statements:
“Manufactured housing offers a proven solution to America’s affordable housing supply crisis,” said HUD Secretary Marcia L. Fudge. “Today’s actions bring us one step closer to a future where everyone has access to housing that meets their needs.”
Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development, added, “PRICE funding will enable manufactured homes and communities to remain affordable, safe, and sustainable for years to come.”
Read the full press release: HUD Announces New Actions to Support Affordability for Manufactured Homes and Communities
Looking Ahead:
These actions build on HUD’s ongoing commitment to supporting manufactured housing as a key component of addressing the nation’s affordable housing shortage. With over 22 million Americans living in manufactured homes, these initiatives are poised to make a significant impact on housing affordability and community revitalization.