Doug Ryan Director of Affordable Homeownership Corporation for Enterprise Development
MANUFACTURED HOUSING? www.cfed.org @CFEDNews
MANUFACTURED Advantages HOUSING Design Improvements Design Improvements www.cfed.org @CFEDNews
MANUFACTURED Advantages HOUSING Cost Manufactured Housing: $41 per square foot Site- Built Housing: $83 per square foot Production Produced in one-fifth of the time required by site built – no weather delays or damage Precision construction produces very little waste, as little as a trash can full per home www.cfed.org @CFEDNews
MANUFACTURED Who lives in it? HOUSING • 17 million Americans in 6.8 million homes • In 2009, median income of households in manufactured homes was below $30,000; national median, $49,777 • Seventy-three percent of manufactured home households earn less than $50,000 • Median age over 50; older than American population www.cfed.org @CFEDNews
MANUFACTURED Challenges HOUSING Market Challenges • Manufactured housing is unfairly perceived as poor quality • Manufactured housing is thought as mobile – based on 1930s travel trailer • Community objections based on misconceptions about home values, quality www.cfed.org @CFEDNews
MANUFACTURED Opportunities HOUSING Promotion of Housing Quality • Since 1976, units have been subject to the only national housing code – one stricter than those in some localities • Energy-efficient units, such as those from Next Step™, save owners money and help ensure loan performance • HUD implemented installation standards, as required by the the Manufactured Housing Improvement Act of 2000 www.cfed.org @CFEDNews
MANUFACTURED Challenges HOUSING Financing Challenges • Most homes are financed by chattel, though most units are on private land • Limited consumer protections – eviction from rented land is a real threat for homeowners • Chattel financing and rented land limit asset-building • Limited secondary and refinancing markets www.cfed.org @CFEDNews
MANUFACTURED Opportunities HOUSING CFED Study on Manufactured Housing Mortgages • MH mortgages can perform as well as mortgages secured by site-built homes • MH mortgages, excluding USDA, performed slightly better that the OCC portfolio • OCC-regulated banks should be encouraged to look at MH mortgages to meet CRA and other obligations • NFCDCU members already make MH loans – and do so successfully www.cfed.org @CFEDNews
MANUFACTURED Achievements HOUSING • Since 2008, ROC USA has assisted nearly 3,000 owners in 45 communities in 13 states purchase communities • ROC USA set up a network of technical assistance providers and a specialized source of financing • One study of the model indicates that cooperatives lead to faster resales at higher prices, which supports CFED’s asset -building goals www.cfed.org @CFEDNews
MANUFACTURED Achievements HOUSING • ROC USA Capital is Wholly-Owned Subsidiary of ROC USA, LLC • 19 Communities Financed in 10 states, $58 Million Originated • 6 CTAPs Preserving over 1,770 homes • 84% Low-Income, 49% Very-Low Income (50% AMI) www.cfed.org @CFEDNews
MANUFACTURED Achievements HOUSING Next Step offers a national strategy and to bring factory-built homes to nonprofits nationwide. It aggregates demand by organizing, brokering and training nonprofits on the Next Step System for doing business A manufactured home designed to balance quality with affordability, built to ENERGY STAR standards and placed on an FHA Title II Permanent Foundation Access to fair, fixed-rate home financing is essential Replacing pre-HUD Code mobile homes with ENERGY STAR homes can significantly drive down the cost of home ownership and reduce energy use www.cfed.org @CFEDNews
MANUFACTURED Opportunities HOUSING Credit Unions are Already Active in MH • In 2012, a major credit union’s 750 conforming manufactured home loans had a delinquency rate of 4.71% • Helps those who live in rural areas, military families and expanded the CU’s membership base • Another large credit union’s MH portfolio performs similarly to its larger portfolio, while allowing it to expand its reach to LMI households www.cfed.org @CFEDNews
MANUFACTURED Opportunities HOUSING Expanded Opportunities for CUs • New CFED secondary market initiative for both real estate and chattel loans • As NFCDCU retools its mortgage purchase program, manufactured housing can be a piece of the puzzle • Expanding retail opportunities for CDCUs in ROC USA communities and with Next Step network members www.cfed.org @CFEDNews
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