Congress May Miss Chance to Boost Affordable Homeownership

America's housing affordability crisis is intensifying, with home prices and rents escalating, pushing homeownership further out of reach for many. Manufactured housing presents a significant opportunity to address this crisis by providing affordable, non-subsidized homeownership options. However, current housing legislation being considered by Congress risks overlooking critical structural barriers that have historically suppressed the manufactured housing industry.

The primary obstacle highlighted is exclusionary zoning, which continues to prevent HUD Code manufactured homes from being sited in numerous communities. Despite federal preemption strengthened by the Manufactured Housing Improvement Act of 2000, many local jurisdictions reportedly disregard this law. The proposed legislation does not sufficiently reinforce the Department of Housing and Urban Development's (HUD) role in enforcing this federal preemption, thereby limiting access to affordable housing for millions.

Furthermore, the legislation fails to fully implement the "Duty to Serve" mandate, established nearly two decades ago. This mandate aims to increase the availability of financing for manufactured housing. Currently, approximately 70% of manufactured home buyers depend on personal property (chattel) financing. However, government-sponsored enterprises like Fannie Mae and Freddie Mac offer minimal support to this market. This lack of competitive financing results in higher costs and reduced qualification rates for families seeking homeownership.

Finally, the pending legislation leaves the manufactured housing industry exposed to potentially costly Department of Energy standards. These new standards could significantly increase the price of entry-level manufactured homes, undermining their affordability. By failing to address these three core issues—exclusionary zoning, inadequate financing support, and potentially burdensome regulations—Congress risks squandering a vital opportunity to expand affordable homeownership through the manufactured housing sector.