HUD INCREASES PAYMENTS TO STATES REDUCING BARRIERS TO MANUFACTURED HOUSING AS AN AFFORDABLE HOUSING ALTERNATVE

In another example of HUD Secretary Ben Carson’s ongoing commitment to reducing barriers to the adoption of manufactured homes as an affordable housing alternative, the Department of Housing and Urban Development (HUD) has published a final rule in the Federal Register which provides a revised structure for the payments HUD makes to states participating as State Administrative Agencies (SAA) in the manufactured housing program.

SAAs in 33 states are fully or conditionally approved to carry out their manufactured housing oversight programs, and most of these states will see an increase in payments to administering their programs under the revised payment structure.

 

State Compensation To Ensure Safety And Affordability

“More than 22 million Americans have used manufactured homes as a means of attaining the stability and financial independence of homeownership, particularly in areas where housing affordability is a challenge. Making sure that states are appropriately compensated for the work they do to ensure the safety and affordability of these manufactured homes, for families within their communities, is both right and responsible,” said HUD Secretary Ben Carson.

The final rule revises the state payment formula contained in the Manufactured Home Procedural and Enforcement Regulations so payments are more in line with both the level of manufactured housing production, and the associated work performed in a state when a manufactured home is first produced and then installed in its permanent location.

HUD has increased production payments from the current $2.50 per section of home-produced to $14 per section while maintaining payments to states of $9 per section for manufactured home siting. In addition, for the first time in two decades, states that have received conditional approval of their state programs from HUD are now eligible to receive fiscal year-end supplemental payments for the work they are performing.

 

HUD/State Partnership Will Incentivize More Participation In The Manufactured Home Program At The Local Level

“This is another example of HUD reducing the barriers to the adoption of manufactured housing as an affordable housing alternative,” said Assistant Secretary for Housing Dana Wade said. “States are valuable partners in this process. We believe this change will strengthen existing partnerships, incentivize more states to participate in the program, and reduce the reliance on federal resources for activities that are more appropriately handled at the state and local level.”

In conjunction with the final rule, HUD also published an Advance Notice of Proposed Rulemaking to solicit public comment on additional refinements to state payments HUD may consider in the future. The considerations include additional options to fund state participation in a way that recognizes the contributions each state makes and to incentivize state participation in various elements of the manufactured housing program to the maximum extent possible.

According to a press release, HUD is also seeking feedback from the Manufactured Housing Consensus Committee prior to issuing a proposed rule on these refinements.

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