Community Frameworks’
Next Step
Factory Built Housing
A New Delivery System for Factory-Built Housing
This Presentation
An introduction:
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What is factory built housing?
What are the advantages and
challenges?
What is the Next Step Network?
How is Community Frameworks working with Next
Step?
How can you participate in the Next Step Plus
Program?
Factory Built Housing 101
Mobile Home
A residential structure manufactured prior to the enactment of the
Federal Manufactured Housing and Construction Standards, also
known as the HUD Code, on June 15, 1976. Mobile homes are no
longer being constructed.
Manufactured Home
Single family residential dwelling built in compliance with the
Federal Manufactured Housing and Construction Standards, as
amended, also known as the HUD Code, after June 15, 1976. Built in
multi-sectional or single section units.
Modular Home
Homes built to the state Code where the home will be located.
Sectional units are built in a production facility, transported to the
site and assembled.
Where is Manufactured Housing?
Urban, Suburban and Rural
Communities across the US
What are the Advantages?
While important in rural areas, manufactured housing
(MH) also plays a critical role as a source of affordable
housing in metropolitan areas.
 MH is not reliant on public subsidies.
 With policy and financing reform, MH has potential to be a
scalable private sector model for delivery of affordable housing.
 With design and energy efficiency advances, MH today is
indistinguishable from site-built homes and more energy
efficient.
 MH can be constructed for less costs and in a climate controlled
environment with less waste.
As public funds are no longer assured, the need for a
new solution has never been greater.
The Challenges
 While Manufactured Housing (MH) is home to 17
million Americans, many challenges face this
affordable housing solution.
 The market system which produces and finances
these homes doesn’t always lead to the best
wealth/asset building strategy.
 Nearly 2 million pre-1976 mobile homes (the year the
HUD Code went into effect) still exist nationwide.
 Nonprofit developers need greater control,
predictability of costs, and green choices to meet
their affordable housing missions.
What do Practitioners Need to
Know?
Manufactured Housing is the largest unsubsidized
affordable housing stock in the US
 8.6 M Manufactured Housing “homeowners”
 Serving families with an average income of $29,000 (around 50%
of AMI)
 About 2.9 M own homes, but rent the land under them in
50,000 MH Communities
 High density, low impact development and efficient production
Subsidized Housing
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2.5 M LIHTC
2 M Section 8 Vouchers
1.2 M Public Housing Units
Total: 5.7 M
Who Lives in
Manufactured Housing?
Household Income, by Structure Type, 2009
$60,000
$50,000
$49,500
Median Income
$40,000
$30,000
$30,000
$27,000
$20,000
$10,000
$0
Non Manufactured Homes
Manufactured Homes
Household Housing Structure
HAC Tabulations of 2009 American Housing Survey Data
Manufactured Homes in MHC
Who Lives in
Manufactured Housing?
Housing Structure Type, Occupied Units, 2009
Mobile or
manufactured home,
6.2%
One unit detached,
63.2%
50 or more units, 4.5%
20 to 49 units, 3.3%
5 to 19 units, 9.0%
2 to 4 units, 8.0%
One unit attached, 5.8%
HAC Tabulations of 2005-2009 American Community Survey Estimates
What are the Advantages?
Despite the downturn in the housing industry,
manufactured homes continue to be appealing to
certain homebuyer demographics:
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Start-up families
First-time buyers
Low to moderate-income buyers
Retirees looking for smaller, more affordable homes
Workforce housing
Factory built homes today are higher quality and offer
more innovations than ever before.
Affordable housing providers can match factory-built housing
savings with innovative designs to create attractive, compact and
affordable smart-growth communities in metro areas.
What do Practitioners
Need to Know?
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Manufactured Housing is home to about 17 million
Americans.
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Manufactured Housing accounts for 43% of all
homes under $150,000.
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73% of manufactured home owners earn less than
$50,000 a year.
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The market system that produces and finances these
homes doesn’t always lead to the wealth building.
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Nearly 2 million pre-HUD Code mobile homes still
exist nationwide.
Next Step’s Theory of Change
When a home is done right every single time, we can
create an opportunity for systemic change.
Next Step believes:
 A manufactured home designed to balance quality with
affordability, built to ENERGY STAR standards and placed on an
FHA Title II Permanent Foundation is central to the appreciation
of factory-built housing values.
 Access to fair, fixed-rate home financing is essential to healthy
housing markets and the capacity to build wealth through
homeownership.
 Replacing pre-HUD Code mobile homes with ENERGY STAR
homes can significantly drive down the cost of home ownership
and reduce energy use.
The Next Step System
The Next Step System
This System for doing business includes:
1.
Homebuyers who are prepared and supported through certified
homebuyer education programs;
2.
Quality, ENERGY STAR homes on FHA Title II permanent
foundations;
3.
Sustainable financing: mortgages with fair terms that enable
families to earn wealth or preserve assets; and,
4.
“A Home is a Home” policy commitment advocating that owners
of manufactured homes have the same rights as owners of sitebuilt homes.
Network Members
Financing for the Family
Sustainable Financing: Mortgages with fair terms that
enable families to earn wealth or preserve assets.
How do you make financing work for the homebuyer?
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Rural Development 502 Direct Mortgage & 502 Guarantee.
Local banks.
Subsidies:
• USDA Housing Preservation Grant
• HOME
• State Trust Fund
• Federal Home Loan Bank
• NeighborWorks® America
• CFED I’M Home
• Institutional Donors; Service clubs, faith-based organizations.
• Rural Housing and Economic Development Grants
How Financing Affects the
Development Process
What is an FHA Title II Foundation?
A type of HUD FHA insured loan for manufactured housing—Real
Estate Mortgage for homes on permanent foundations approved to
FHA standards and by a structural engineer.
 Meets highest quality standard for permanent foundation and all
lender requirements.
 Must meet all standards and be on a permanent foundation in
compliance with the Permanent Foundation Guide for
Manufactured Housing.
 A licensed professional engineer's seal and signature are required
to indicate compliance with the Foundation Guide.
 The lender should furnish the appraiser with a design engineer's
inspection of the foundation prior to the appraisal.
Next Step’s Mission
Our mission is putting sustainable homeownership
within reach of everyone, while transforming the
manufactured housing industry one home at a time.
Community Frameworks’
Next Step
Factory Built Housing
A New Delivery System for Factory-Built Housing
Tools of the Trade
Factory Built Housing:
A Vital “Tool” for
Fulfilling our Missions
as They Relate to
Providing Quality, Affordable Housing
to Low Income Individuals and Families
Why You Should Care!
Affordable Housing - Challenges:
 Increasing Governmental Regulations
 Increasing Production Costs
 Increasing Land Costs
 Increasing Demand
 Decreasing Funding
 Decreasing Quality/Quantity of Trades People
Factory Built – Systems Built –
Prefab
Manufactured
Modular
 HUD Code
 IRC – State Amendments
 Cost < Site Built
 Cost = Site Built
 Minimal Design Flexibility
 Maximum Design Flexibility
 Energy Efficient with Energy
 More Energy Efficient
Star
 Appraisal < Site Built
 *Limited Financing Options
 Appraisal = Site Built
 Traditional Lending Sources
Production Partners
Manufacturing Facilities in the Northwest:
HUD Code Manufactured Homes (also do modular):
5 – Oregon
4 – Idaho
1 – WA
Modular Homes:
2 – ID
1 – OR
Boutiques (Low Volume – Direct to Consumer)
3 – WA
1 - OR
What are the Advantages?
Benefits:
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Shorter Build Time
Environmentally Sensitive
Exempt from “Prevailing Wages”
Superior Interior Sound Abatement
Less Site Disruption/Neighbor Annoyance
Higher Quality Construction
Ideal for Tight/Urban and Remote Sites
Mitigated Risks of Weather Damage
Inherently More Green
Stronger Structure
Pacific Northwest Leaders
Northwest Examples:
 NeighborWorks Umpqua and NeighborWorks Montana
 OPAL Community Land Trust
 Olympic Community Action Programs
 Kodiak Island Housing Authority
 WA State Migrant Council
 Salish and Kootenai Housing Authority
 Nez Perce Tribe
 Whitman County Community Action Center
 Native American Youth Family Center
What are My Options?
Factory Built Applications
 Replacement of Old “Trailers”
 Alternative to Traditional Site Built
 Urban Infill
 Multi-Family Development/Snr. Housing/Mixed Use
 Infill at ROC’s/NP Owned Parks
 Park Development
 Elder Cottages
MH Example 1
MH Example 2
MH Example 3
Modular Example 1
Modular Example 2
Modular Example 3
Modular Example 4
Modular Example 5
Modular Example 6
Mobile Home Replacement:
The Problem
Mobile Home Replacement
Efforts
The Stringer Family approached NeighborWorks® Montana for
assistance to weatherize their pre-HUD Code mobile home. Since
the home was beyond repair, NeighborWorks Montana helped Ms.
Stringer finance a new, ENERGY STAR certified manufactured home.
Before
After
MH Interior
Mod Set 1
Mod Set 2
Mod Set 3
Mod Set 4
Mod Set 5
What are the Advantages?
Extreme Homebuilding with CRHDC
The holiday season, record lows and 2 feet
of snow and frost didn’t slow down
Community Resources and Housing
Development Corporation in Colorado from
setting 11 modular homes.
Just one example of how the
factory-built construction process
won’t come to a stand-still when
weather, however extreme, hits.
Bremerton Mod
Bremerton Mod
Bremerton Mod
Bremerton Mod
Bremerton Mod
Bremerton Mod
Bremerton Mod
Bremerton Mod
Hinged Roof
Plant 1
Plant 2
Plant 3
Plant 4
Plant 5
Plant 6
Plant 7
Plant 8
Plant 9
Plant 10
Plant 11
SFR / Townhomes
Multi-Family
Senior Housing
OlyCAP Senior Housing
MF Set 1
MF Set 2
MF Set 3
MF Set 4
MF Set 5
MF Set 6
MF Set 7
ROC USA® – Infill Efforts
NeighborWorks® Montana is providing new homes in
ROC USA® Communities, where the residents collectively
own the land (cooperative) and individually own their
homes.
Elder Cottage 1
Elder Cottage 2
Elder Cottage 3
Elder Cottage 4
Contact Information
Thank you for your interest and participation!
For further information, contact:
Mark Wilson
Community Frameworks
509.484.6733 x108