INDIANA UTILIZING MANUFACTURED HOUSING TO ADDRESS WORKFORCE HOUSING SHORTAGE
The Indiana Housing and Community Development Authority (IHCDA) recently awarded two non-profits $500,000 each to provide factory-built housing for workforce population in Marion and Elkhart, Indiana through a pilot project developed and led by Indiana’s Manufactured Home Association Executive Director Ron Breymier. (Reported by Manufactured Housing Institute (MHI) and on-line news services).
Working with Indiana-based manufacturers, the two non-profits will utilize factory-built, modular homes to help alleviate the workforce housing shortage in the cities of Marion and Elkhart. Using a revolving fund, proceeds from the sales of these modular, single-family homes will go to support additional single-family construction (AMI).
“Hoosiers have an internal solution for the workforce housing crisis,” said Ron Breymier. “Indiana has 7 factories producing attractive quality constructed, affordable modular homes. The cost of modular homes is between 20% and 30% less per square foot than site-built homes. A key advantage to the homeowner is modular homes are built in an indoor, quality controlled environment using the same building materials as site-built. An added advantage is the home can be move-in ready in a matter of weeks as opposed to several months to construct site-built.”
With the average price of a new home well-beyond reach for many workers, Indiana – like many other states across the country – faces a shortage of attainable housing for workplace populations. A recent report from Indiana University’s Kelley School of Business outlined how manufactured housing is one solution with tremendous potential. For more information on the Kelley Report, click our recent report, “Indiana University Study Touts Manufactured Homes in Solving Workplace Affordability Crisis”
The two not-for-profit organizations will construct the modular homes on Blight Elimination Program (BEP)* lots in Marion and Elkhart, respectively.
* In 2014, IHCDA made $75 million available through the Hardest Hit (IHF) to establish the nation’s first statewide BEP to reduce foreclosures and stabilize property values. Funding was awarded to more than 40 communities who have together demolished more than 2,500 vacant and blighted homes since.
“Across the state, there is a shortage of affordable, workforce housing,” said Indiana LT. Governor Suzanne Crouch who serves as board chair of IHCDA. “This funding will allow for the construction of modular single-family homes built by Indiana-based manufacturers. To ensure this is done strategically, the responders are using Bright Elimination Program lots and working with a broad spectrum of local and state partners.
MHI and members of the manufactured home industry commend the efforts and leadership shown by Mr. Breymier in developing the pilot project and his work to make the dream of homeownership attainable for working families through factory-built housing.