Program Serves Government, Cooperative, Non Profit, Community Development Finance Institution, and Resident-Owned Efforts
The U.S. Department of Housing and Urban Development has unveiled a new manufactured home community loan product that will provide an FHA-insured financing option for the purchase, refinance, and revitalization of manufactured home communities.
HUD, which announced the program to kick off the Innovative Housing Showcase on the National Mall, takes the action as a measure to “help entities to preserve, stabilize, and revitalize these vital sources of affordable housing.”
“Manufactured home communities offer a stable and affordable housing option for many families. Today, 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,” HUD Acting Secretary Adrianne Todman said. “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.”
Mission-focused entities such as state, local, and tribal governments, cooperatives, non-profit entities and consortia, community development financing institutions, and Indian Tribes, will be eligible to use this program to finance the acquisition of or to improve existing communities, including making updates to common area resources and helping to maintain rent affordability.
The permanent financing tool complements HUD’s recently announced PRICE program, which offers competitive grant opportunities for investments in affordable manufactured home communities.
HUD stated that about 5,000 individuals and families, based on average community size, could benefit from the program within the next five years. The program leverages FHA’s Multifamily 223(f) program, which will now provide permanent mortgage financing for manufactured home communities that may have previously been ineligible, and for previously ineligible manufactured home cooperative borrowers to be eligible to acquire and obtain financing for existing communities.
“Today’s announcement is an important first step for a program that we hope will provide a meaningful path to both affordable manufactured home community creation and preservation,” Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman said. “As we progress with the program implementation, we will continue to assess both its scope and entity eligibility.”
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