And HUD’s Introduction of Legacy Challenge
In a White House statement released Aug. 13 on allowing more housing types under HUD Code:
“Enabling more housing types to be built under the HUD Code. HUD anticipates finalizing a rule to update its Manufactured Home Construction and Safety Standards. Manufactured housing provides an essential path to increasing overall housing supply and offers significant savings over site-built housing. The HUD Code creates economies of scale for manufacturers, resulting in significantly lower costs for buyers. In addition to making changes that will increase the quality, energy efficiency, and resilience of manufactured homes, the new rule, if finalized, would enable duplexes, triplexes, and fourplexes to be built under the HUD Code for the first time, extending the cost-saving benefits of manufactured housing to denser urban and suburban infill contexts.”
HUD’s Challenge to Governors, Mayors
At the same time HUD announced the launch of a $250 million “Legacy Challenge” for transformative housing investments. Communities that receive direct annual awards through the Community Development Block Grant program to leverage low-cost, low interest loans for transformative housing investments. This program is a key lever that enables communities to take on legacy projects that will transform and revitalize neighborhoods. Up to $250 million in funding will be made available through the Section 108 Loan Guarantee to make transformative housing-forward changes in local communities across America.
HUD Acting Secretary Todman stated that “I’m challenging our nation’s mayors and governors to use this unique funding mechanism to build new housing.”
The funding can be used to make transformative changes in local communities through:
- Adaptive reuse, including commercial-to-residential conversion
- Preservation and rehabilitation of existing units
- Infrastructure to support housing production such as utility installation or upgrades
- Manufactured housing, including facilities to build new homes
- Eligible housing uses within mixed-use or transient oriented development projects
- Revolving loan pools to support local housing development
For communities that express interest by Nov. 1, 2024, HUD will offer additional repayment flexibilities, up to three years of interest-only payments, and waivers to streamline program requirements. HUD will invite applicants to participate in a technical assistance cohort and provide tools to support application development. On Aug. 29, 2024, HUD will host a kickoff webinar to share more about the Legacy Challenge.
