The Federal Housing Administration (FHA) launched a new product, the U.S. Department of Housing and Urban Development (HUD) stated. The new offering will provide an FHA-insured financing option for the purchase, refinance, and revitalization of manufactured home communities.
“Manufactured home communities offer a stable and affordable housing option for many families,” HUD acting Secretary Adrianne Todman said in a release. “HUD is providing new resources for preserving and revitalizing these communities by providing FHA-insured financing to mission-focused groups to buy or refinance and revitalize manufactured homes.
“This is just one of many ways HUD is empowering residents, industry leaders, and governments to expand access to innovative, affordable housing solutions, particularly in rural communities.”
Beginning June 4, entities like resident-owned manufactured home communities, cooperatives, non-profit organizations, state and local governments, community development financing institutions, and tribal communities were eligible to use the new program to finance the acquisition of or to improve existing communities. Improvements include making updates to common area resources and helping to maintain rent affordability.
“This tool provides an alternative to purchase of these communities by private equity funds and similar financial interests, whose track record reportedly includes unaffordable rent increases, failure to invest in community infrastructure, and regulations that don’t respect the community’s culture,” HUD stated.
The agency estimated more than 5,000 individuals and families, based on average community size, could benefit from the program over the next five years. The Manufactured Home Communities program will provide permanent mortgage financing for manufactured home communities that may have previously been ineligible, and for previously ineligible manufactured home cooperative borrowers, it will offer an opportunity to acquire and obtain financing for existing communities.
“With this product, HUD aims to support resident-owned communities and other mission-focused owners who are committed to high-quality, affordable manufactured housing that is not at risk of exorbitant land rent increases that jeopardize the stability of their homes and futures,” Federal Housing Commission and HUD Assistant Secretary for Housing Julia Gordon said.