HUD Announces Manufactured Housing Policy Guidance:

HUD Announces Manufactured Housing Policy Guidance: On May 21, 2009, the US Department of Housing and Urban Development released Mortgagee Letter 2009-16 on Federal Housing Administration (FHA) mortgage insurance eligibility for manufactured housing. The Housing and Economic Recovery Act of 2008 authorized HUD to make changes to manufactured housing for new and existing construction. FHA states that a manufactured home is a structure that is transportable in one or more sections, and is designed to be constructed to the Federal Manufactured Construction and Safety Standards and is so labeled. While modular housing is also factory built, FHA treats it as stick-built housing.

To be eligible for FHA insurance the manufactured home units and land must be classified as real estate although they need not be treated as real estate for state tax purposes. The borrower is required to have a 3.5 percent cash investment in the transaction and land equity may be used to satisfy this requirement. Gift funds from eligible sources are also permitted for the down payment. Individual units in condominium projects are now eligible for FHA insurance; however, the Spot Loan Approval process is not applicable.

Manufactured Housing Bill on House Committee Agenda:

HB 105, which establishes and clarifies obligations to maintain, care for, and remove trees of the owner/landlord of a manufactured home community and tenants of such community, is scheduled to be considered by the House Manufactured Housing Committee on Wednesday, June 10th 2009.

Manufactured Housing Bill Passes Senate with Amendment:

HB 107 requires any rental payments to be paid in equal installments over a calendar year. Senate Amendment 1 allows a tenant to request and the owner/landlord to agree, that rental payments can be made in a one-time lump sum, semi-annually or quarterly and allows a landowner to offer discounts as incentives to homeowners to pay annually, semi-annually or quarterly, provided that it is clear that homeowners are under no obligation to pay in any way except monthly. The bill is now again with the House for further consideration.