Doug Ryan Director of Affordable Homeownership Corporation for - - PowerPoint PPT Presentation

Doug Ryan Director of Affordable Homeownership Corporation for Enterprise Development

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MANUFACTURED HOUSING?

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MANUFACTURED HOUSING Advantages

Design Improvements

Design Improvements

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MANUFACTURED HOUSING Advantages 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

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MANUFACTURED HOUSING Who lives in it?

• 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

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MANUFACTURED HOUSING Challenges

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

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MANUFACTURED HOUSING Opportunities

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
• wners money and help ensure loan performance
• HUD implemented installation standards, as required by the

the Manufactured Housing Improvement Act of 2000

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MANUFACTURED HOUSING Challenges

Financing Challenges

• Most homes are financed by chattel, though most units are
• n 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

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MANUFACTURED HOUSING Opportunities

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

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• 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

MANUFACTURED HOUSING Achievements

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• 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)

MANUFACTURED HOUSING Achievements

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• 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

MANUFACTURED HOUSING Achievements

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MANUFACTURED HOUSING Opportunities

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

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MANUFACTURED HOUSING Opportunities

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