HUD: Manufactured Housing Safety and Affordability Strengthened with Revised Minimum Payments for State Oversight Programs

Final rule published today provides more equitable HUD funding for State Administrative Agencies

The Department of Housing and Urban Development (HUD) published today a final rule in the Federal Register which provides a revised structure for the payments HUD makes to states participating as State Administrative Agencies in the manufactured housing program. State Administrative Agencies in 33 states are fully or conditionally approved to carry out their manufactured housing oversight programs, and the majority of these states will see an increase in payments to administer their programs under the revised payment structure.

“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 own 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 that payments are more commensurate 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 $14.00 per section, while maintaining payments to states of $9.00 per section for manufactured home siting. Further, 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.

“This is another example of HUD reducing barriers to the adoption of manufactured housing as an affordable housing alternative,” said Assistant Secretary for Housing Dana Wade. “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, today HUD also published an Advance Notice of Proposed Rulemaking to solicit public comment on additional refinements to state payments that 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. HUD also looks forward to feedback from the Manufactured Housing Consensus Committee, a Federal Advisory Committee, prior to issuing a proposed rule on these refinements.

HUD’s Office of Manufactured Housing Programs administers the National Manufactured Housing Construction and Safety Standards Act of 1974 which authorizes HUD to establish federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. The Office’s standards are carried out directly or through states that have partnered with HUD to inspect factories and retailer lots, implement installation standards for the homes, and administer a dispute resolution program for defects.

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