{"id":2554,"date":"2016-06-13T09:36:42","date_gmt":"2016-06-13T14:36:42","guid":{"rendered":"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/?p=2554"},"modified":"2016-06-13T15:17:36","modified_gmt":"2016-06-13T20:17:36","slug":"40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity","status":"publish","type":"post","link":"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/","title":{"rendered":"40th Anniversary of Manufactured Housing Reflections &#8211; HUD\u2019s Forty Years of Wasted Opportunity"},"content":{"rendered":"<p style=\"text-align: left;\" align=\"CENTER\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"><img fetchpriority=\"high\" class=\"alignleft size-full wp-image-2563\" src=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/MMarkWeissCEO-MHARR-ManufacturedHousingAssociationforRegulatoryReform-posted-IndustryVoices-MHProNews.png\" alt=\"MMarkWeissCEO-MHARR-ManufacturedHousingAssociationforRegulatoryReform-posted-IndustryVoices-MHProNews\" width=\"214\" height=\"267\" \/>In a 2015 address, <a href=\"http:\/\/manufacturedhomelivingnews.com\/hud-secretary-julian-castro-praises-quality-safe-and-affordable-manufactured-homes\/\" target=\"_blank\">HUD Secretary Julian Castro had glowing words for manufactured housing<\/a>. Calling HUD the \u201cDepartment of Opportunity,\u201d the Secretary spoke of manufactured homes as a \u201cvital solution\u201d to the nation\u2019s \u201caffordable housing crisis.\u201d In reality, though, HUD and the federal manufactured housing program have spent the last forty years \u2013 since the inception of the federal program in 1976 &#8212; wasting opportunities (or worse) when it comes to manufactured housing. While documenting all these wasted opportunities would take an entire book, some recent examples from the post-Manufactured Housing Improvement Act of 2000-era will illustrate the point.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">The Secretary\u2019s flowery prose regarding the \u201cvital\u201d role of manufactured housing &#8212; a role ironically <u>ignored<\/u> by HUD in its last two departmental strategic plans, where it actually counts \u2013 stands in sharp contrast with objective evidence of the Department\u2019s <u>actual<\/u> perspective on HUD Code homes and the role of the federal program. Like the illusionist\u2019s \u201cshiny object,\u201d used to distract an audience, political pronouncements are a diversion. Instead, the truth \u2013 and its real world consequences \u2013 are to be found in the concrete actions of program officials and, occasionally, in \u201cunder the radar\u201d HUD documents, which provide a less guarded insight into the institutional mindset that underlies and drives those actions.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><a href=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/Manufactured-Housing-Reflections-From-HUD-Leadership-50thanniversary-postedIndustryVoiceMHProNews-.pdf\"><img class=\"size-medium wp-image-2558 aligncenter\" src=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/ManufacturedHousingReflectionsFromHUDLeadershipGraphic-creditHUD-postedIndustryinFocus-MHProNews--500x329.png\" alt=\"ManufacturedHousingReflectionsFromHUDLeadershipGraphic-creditHUD-postedIndustryinFocus-MHProNews-\" width=\"500\" height=\"329\" \/><\/a><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">One such HUD document has just been published. Entitled \u201c<a href=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/Manufactured-Housing-Reflections-From-HUD-Leadership-50thanniversary-postedIndustryVoiceMHProNews-.pdf\">Manufactured Housing: Reflections from HUD Leadership \u2013 A HUD 50<sup>th<\/sup> Anniversary Publication\u201d (MH Reflections)<\/a>, it offers a simultaneously revealing and disturbing glimpse into the pathology of a misdirected and mismanaged HUD program that violates its governing law &#8212; to the benefit of industry competitors (site-builders, Realtors \u00ae, the rental housing industry, etc.) and the detriment of the HUD Code industry and its consumers &#8212; <u>every<\/u> <u>day<\/u>.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">The HUD manufactured housing program can \u2013 and should be &#8212; a model of successful collaboration; an example of what an effective partnership between federal and state governments, consumers and private industry can do to help lower and moderate-income Americans (who might otherwise be excluded from the housing market altogether) achieve the American Dream of home ownership and all of its benefits. As MHARR emphasized in its October 26, 2015 documented testimony to the House Financial Services Committee on \u201cInnovative Approaches to Address Housing Affordability:\u201d \u201cBy providing inherently affordable <u>home ownership<\/u> for individuals and families, rather than a form of direct or indirect government \u2018assistance,\u2019 or residence in publicly-owned housing, manufactured homes \u2026 offer the \u2018individuality, the human dignity, the respect for individual rights [and] devotion to individual responsibility\u2019 that President [Lyndon] Johnson envisioned at the signing ceremony for the legislation that created HUD\u201d fifty years ago. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">And, for sure, the need for <u>decent<\/u>, <u>affordable<\/u> home ownership in the United States has never been greater. Census Bureau data shows that the rate of home ownership in the United States fell to a 20-year low in 2014. At the same time, a February 2015 HUD \u201cWorst Case Housing Needs\u201d report found that nearly eight million lower-income American households in 2013 either \u201cpaid more than half their monthly incomes for rent, [or] lived in severely substandard housing, or both,\u201d nearly 50% higher than in 2003.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">These wretched statistics &#8212; along with the unprecedented contraction in industry production since the turn of the century &#8212; only make more damning the failure of the HUD manufactured housing program (ironically excused, supported, or even enabled by part of the industry) to carry out a fundamental element of the mission assigned to it by Congress in the <a href=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/Manufactured-Housing-Reflections-From-HUD-Leadership-50thanniversary-postedIndustryVoiceMHProNews-.pdf\">Manufactured Housing Improvement Act of 2000<\/a>. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">The HUD program, with authority over the nation\u2019s <u>most<\/u> affordable housing, should be playing a dynamic role in facilitating the <u>availability<\/u> of affordable manufactured homes for consumers and the <u>acceptance<\/u> of manufactured housing for all purposes within HUD as <u>commanded<\/u> by the 2000 reform law. With those twin \u201cfacilitation\u201d directives, the 2000 law (a unique law passed by Congress <u>unanimously<\/u>) fundamentally altered the one-dimensional focus of the original 1974 federal law. As congressional proponents of the 2000 reform law put it in a 2003 letter to HUD, \u201cthe 2000 Act \u2026 transformed the [1974] Act from solely being a consumer protection law to also being an affordable housing law.\u201d <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">To look at the actions of current program officials, however, and read the \u201creflections\u201d of post-2000 program \u201cleaders,\u201d one would think that the 2000 law \u2013 with its broader focus on <u>advancing<\/u> manufactured housing &#8212; had never been adopted. The <u>entire<\/u> focus of the HUD program &#8212; after <u>four<\/u> <u>decades<\/u> \u2013 remains on more and more needless regulation, with more and more competition and market-killing regulatory compliance costs (which disproportionately impact smaller industry businesses), even though by <u>all<\/u> available objective metrics, the consumer safety element of the program has <u>already<\/u> been fully achieved. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Put differently, nearly two decades after the 2000 reform law, the HUD program and its \u201cleaders\u201d are stuck in a \u201ctime warp\u201d where nothing has changed in decades. How else to explain the fact that nearly every \u201creflection\u201d in HUD\u2019s MH Reflections, involves <u>increased and expanded regulation<\/u>, with not one word about: (1) actions that HUD is taking (or could take) to <u>advance<\/u> manufactured housing as an affordable housing solution; or (2) how smaller industry businesses in particular are being strangled by layers of baseless new regulation that undermines their ability to compete, to enter or remain in new emerging markets, or even place homes in large swaths of the country, while HUD is either complicit or stands by and does nothing? <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">In case after case, the HUD program &#8212; and particularly its current Administrator &#8212; have either benefitted industry competitors (site-builders, realtors and the rental housing industry) by restricting the HUD Code industry\u2019s ability to compete effectively, or have unduly harmed smaller industry businesses which cannot amortize constantly increasing regulatory compliance costs over a much larger base of production. And there are plenty of examples to illustrate this. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Like the new HUD \u201con-site\u201d rule that will add millions in needless new bureaucratic costs while undermining a process meant to simplify Alternate Construction and enhance the industry\u2019s ability to compete with other homes in an important emerging market. Ignoring unanimous calls from <u>all<\/u> program stakeholders (prompted by MHARR) to delay implementation of the rule for 12 months while the MHCC re-examines its requirements and costs, the program Administrator presses forward. \u201cFacilitation?\u201d Hardly.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Like energy regulation. In MH Reflections, program leaders note that manufactured homes are \u201cnow \u2026 more energy efficient,\u201d a <u>fact<\/u> confirmed by Census Bureau data showing manufactured home energy costs either lower than or comparable to site-built homes. But what has HUD done to stop the U.S. Department of Energy from singling-out manufactured homes and manufactured homebuyers for crushing energy standards (strongly opposed by MHARR, but supported and advanced by MHI) that will far exceed standards imposed on million-dollar site-built homes and devastate the HUD Code market? In a word, nothing. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Like fire sprinklers. The \u201cleaders\u201d profiled in <a href=\"http:\/\/manufacturedhomelivingnews.com\/keeping-the-home-fires-from-burning-fire-safety-and-the-modern-manufactured-home\/\" target=\"_blank\">MH Reflections rightly emphasize improvements in the \u201cfire safety\u201d of manufactured homes. And again, data from the National Fire Protection Association<\/a> shows that HUD Code homes, in the key categories of fire occurrence, injuries and deaths <\/span><\/span><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"><u>are<\/u><\/span><\/span><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"> either safer than \u2013 or comparable to \u2013 site-built homes. But what has HUD done to put to rest constant calls for drastic fire sprinkler mandates? Again, nothing, while it currently works to <\/span><\/span><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"><u>include<\/u><\/span><\/span><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"> in the HUD Code \u2013 for the first time \u2013 a supposedly \u201cvoluntary\u201d sprinkler standard (strongly opposed by MHARR, but proposed and advanced by MHI). <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Like <a href=\"http:\/\/manufacturedhomelivingnews.com\/tornadoes-hurricanes-conventional-housing-and-manufactured-homes-video-report\/\" target=\"_blank\">wind resistance, anchoring and installation<\/a>. All have been significantly upgraded as correctly observed in HUD\u2019s MH Reflections. But what has HUD done to stop the baseless, discriminatory exclusion of HUD Code homes from jurisdictions around the country (rationalized by myths surrounding these issues) \u2013 as the industry and American consumers of affordable housing suffer \u2013 when it has all the power and authority, as well as the express statutory mission to do so (as fully explained in two recent \u201cMHARR Viewpoint\u201d columns)? <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">Like advancing the availability of financing and ensuring the establishment of a federal secondary market and securitization support for manufactured homebuyers as mandated by law. Chattel financing under the Federal Housing Administration (FHA) Title I program has fallen to insignificant levels as GNMA excludes finance companies under its unduly restrictive 10-10 rule. <u>Both<\/u> FHA and GNMA are <u>HUD<\/u> agencies. What has HUD done to change the devastating status quo? Nothing. Meanwhile, the Federal Housing Finance Administration (FHFA) &#8212; still lacking a final Duty to Serve\u201d (DTS) implementation rule &#8212; for the second time in five years has proposed a blanket exclusion of manufactured home chattel loans from DTS (strongly opposed by MHARR, but the subject of closed \u201cmystery meetings\u201d between MHI and FHFA officials). The response from HUD in two open rulemakings? Zero.<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">And these are just <u>some<\/u> of the more recent examples of the failures of Washington, D.C. regulators. Many more could be cited. But the point is clear. Congress has given HUD a mandate concerning manufactured housing \u2013 in an outstanding, well-thought-out law &#8212; that HUD (with the tacit or active support of part of the industry) ignores every day. Consumers and smaller industry businesses suffer the consequences. Larger businesses, shielded by billion-dollar corporate mega-empires, at best, don\u2019t care. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">In MHARR\u2019s view, HUD has already wasted 40 years-worth of opportunities to help American consumers achieve the goal of affordable home ownership. And decades of \u201cgo-along-to-get-along\u201d have accomplished nothing. Instead, industry businesses and members that care should get behind MHARR\u2019s aggressive agenda to change the direction of this crucial \u2013 but \u201coff-the-tracks\u201d program. ##<\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\"><img class=\"alignleft size-full wp-image-2555\" src=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/M-MarkWeiss-MHARRPresident-ManufacturedHousingAssociationRegulatoryReform-posted-MHProNews-com-75x75-.png\" alt=\"M-MarkWeiss-MHARRPresident-ManufacturedHousingAssociationRegulatoryReform-posted-MHProNews-com-75x75-\" width=\"75\" height=\"75\" \/><strong>By M. Mark Weiss, <\/strong>JD, President and CEO of<strong> MHARR <\/strong>\u2013 the<strong> Manufactured Housing Association for Regulatory Reform<\/strong>. <\/span><\/span><\/span><\/p>\n<p align=\"JUSTIFY\"><span style=\"color: #000000;\"><span style=\"font-family: Tahoma, sans-serif;\"><span style=\"font-size: small;\">This article first appeared in the Journal, and is reprinted here with permission and the written request and consent of MHARR. The links and downloads in the above were editorially added to make referencing the various points in Weiss article easier for readers and researchers, as was the first few words in the headline: <b>40<\/b><sup><b>th<\/b><\/sup><b> Anniversary of Manufactured Housing Reflections.<\/b><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a 2015 address, HUD Secretary Julian Castro had glowing words for manufactured housing. Calling HUD the \u201cDepartment of Opportunity,\u201d the Secretary spoke of manufactured &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"ast-button\" href=\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/\"> <span class=\"screen-reader-text\">40th Anniversary of Manufactured Housing Reflections &#8211; HUD\u2019s Forty Years of Wasted Opportunity<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[2175,2177,2188,2189],"tags":[2196,2197,2200,2198,5,2199],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>40th Anniversary of Manufactured Housing Reflections - HUD\u2019s Forty Years of Wasted Opportunity | Industry Voices<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"40th Anniversary of Manufactured Housing Reflections - HUD\u2019s Forty Years of Wasted Opportunity | Industry Voices\" \/>\n<meta property=\"og:description\" content=\"In a 2015 address, HUD Secretary Julian Castro had glowing words for manufactured housing. Calling HUD the \u201cDepartment of Opportunity,\u201d the Secretary spoke of manufactured &hellip; 40th Anniversary of Manufactured Housing Reflections &#8211; HUD\u2019s Forty Years of Wasted Opportunity Read More \u00bb\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/\" \/>\n<meta property=\"og:site_name\" content=\"Industry Voices\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-13T14:36:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-06-13T20:17:36+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.manufacturedhomepronews.com\/industryvoices\/wp-content\/uploads\/2016\/06\/MMarkWeissCEO-MHARR-ManufacturedHousingAssociationforRegulatoryReform-posted-IndustryVoices-MHProNews.png\" \/>\n<meta name=\"author\" content=\"Soheyla Kovach\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Soheyla Kovach\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/40th-anniversary-of-manufactured-housing-reflections-huds-forty-years-of-wasted-opportunity\/\"},\"author\":{\"name\":\"Soheyla Kovach\",\"@id\":\"https:\/\/www.manufacturedhomepronews.com\/industryvoices\/#\/schema\/person\/0dea729f575e03819572c61f5fb100d7\"},\"headline\":\"40th Anniversary of Manufactured Housing Reflections &#8211; 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