Washington, D.C. – The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), has introduced a new loan product aimed at supporting manufactured home communities. This FHA-insured financing option will assist in the purchase, refinancing, and revitalization of these communities, ensuring they remain a vital source of affordable housing. HUD Acting Secretary Adrianne Todman announced this initiative today at the 2024 Innovative Housing Showcase on the National Mall in Washington, D.C.
“Manufactured home communities provide stable and affordable housing for many families. HUD’s new financing resources will help preserve and revitalize these communities,” said Acting Secretary Todman. “This effort empowers residents, industry leaders, and governments to expand access to innovative, affordable housing, especially in rural areas.”
Starting today, mission-focused entities such as resident-owned communities, cooperatives, non-profits, state and local governments, community development financial institutions, and Indian Tribes can use this program to finance the acquisition or improvement of existing communities. This includes updating common areas and maintaining affordable rents. The program offers an alternative to private equity purchases, which have been linked to unaffordable rent increases and neglect of community infrastructure.
This new financing tool complements HUD’s recently announced PRICE program, which provides competitive grants for investments in affordable manufactured home communities.
HUD estimates that over 5,000 individuals and families could benefit from this program in the next five years. The Manufactured Home Communities program leverages FHA’s Multifamily 223(f) program, extending permanent mortgage financing to previously ineligible manufactured home communities and cooperative borrowers.
“With this product, HUD aims to support resident-owned and mission-focused communities committed to high-quality, affordable housing without the risk of exorbitant land rent increases,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.
“This announcement marks an important step towards creating and preserving affordable manufactured home communities,” added Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman. “As the program evolves, we will continue to evaluate its scope and eligibility criteria.”
For more information, read the original press release from: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_137