Issue link: https://read.dmtmag.com/i/672763
MAY 2016 21 THE JOURNAL In case after case, the HUD program -- and particularly its current Administrator -- have either benefitted industry competitors (site-builders, realtors and the rental housing industry) by restricting the HUD Code industry's ability to compete effec- tively, or have unduly harmed smaller industry businesses which cannot amortize constantly in- creasing regulatory compliance costs over a much larger base of production. And there are plenty of examples to illustrate this. Like the new HUD "on-site" rule that will add millions in needless new bureaucratic costs while undermining a process meant to simplify Alter- nate Construction and enhance the industry's ability to compete with other homes in an impor- tant emerging market. Ignoring unanimous calls from all program stakeholders (prompted by MHARR) to delay implementation of the rule for 12 months while the MHCC re-examines its re- quirements and costs, the program Administra- tor presses forward. "Facilitation?" Hardly. Like energy regulation. In MH Reflections, program leaders note that manufactured homes are "now … more energy efficient," a fact con- firmed by Census Bureau data showing manufac- tured home energy costs either lower than or comparable to site-built homes. But what has HUD done to stop the U.S. Department of En- ergy from singling-out manufactured homes and manufactured homebuyers for crushing energy standards (strongly opposed by MHARR, but supported and advanced by MHI) that will far exceed standards imposed on million-dollar site- built homes and devastate the HUD Code mar- ket? In a word, nothing. Like fire sprinklers. The "leaders" profiled in MH Reflections rightly emphasize improvements in the "fire safety" of manufactured homes. And again, data from the National Fire Protection Association shows that HUD Code homes, in the key categories of fire occurrence, injuries and deaths are either safer than – or comparable to – site-built homes. But what has HUD done to put to rest constant calls for drastic fire sprinkler mandates? Again, nothing, while it currently works to include in the HUD Code – for the first time – a supposedly "voluntary" sprinkler stan- dard (strongly opposed by MHARR, but pro- posed and advanced by MHI). Like wind resistance, anchoring and installa- tion. All have been significantly upgraded as correctly observed in HUD's MH Reflections. But what has HUD done to stop the baseless, discriminatory exclusion of HUD Code homes from jurisdictions around the country (rational- ized by myths surrounding these issues) – as the industry and American consumers of affordable housing suffer – when it has all the power and au- thority, as well as the express statutory mission to do so (as fully explained in two recent "MHARR Viewpoint" columns)? Like advancing the availability of financing and ensuring the establishment of a federal sec- ondary market and securitization support for manufactured homebuyers as mandated by law. Chattel financing under the Federal Housing Ad- ministration (FHA) Title I program has fallen to insignificant levels as GNMA excludes finance companies under its unduly restrictive 10-10 rule. Both FHA and GNMA are HUD agencies. What has HUD done to change the devastating status quo? Nothing. Meanwhile, the Federal Housing Finance Administration (FHFA) -- still lacking a final Duty to Serve" (DTS) implemen- tation rule -- for the second time in five years has proposed a blanket exclusion of manufactured home chattel loans from DTS (strongly opposed by MHARR, but the subject of closed "mystery meetings" between MHI and FHFA officials). The response from HUD in two open rulemak- ings? Zero. And these are just some of the more recent ex- amples of the failures of Washington, D.C. reg- ulators. Many more could be cited. But the point is clear. Congress has given HUD a man- date concerning manufactured housing – in an outstanding, well-thought-out law -- that HUD (with the tacit or active support of part of the in- dustry) ignores every day. Consumers and smaller industry businesses suffer the conse- quences. Larger businesses, shielded by billion- dollar corporate mega-empires, at best, don't care. In MHARR's view, HUD has already wasted 40 years-worth of opportunities to help Ameri- can consumers achieve the goal of affordable home ownership. And decades of "go-along-to- get-along" have accomplished nothing. Instead, industry businesses and members that care should get behind MHARR's aggressive agenda to change the direction of this crucial – but "off- the-tracks" program. Mark Weiss is President & CEO of the Manufactured Housing Association for Regulatory Reform. MHARR is a Washington, DC-based national trade association representing the views and interests of independent pro- ducers of federally-regulated manufactured housing. Mark can be reached at 202-783-4087. HomeCarePlus "The Perfect Addition to Your Home Sales" An Exclusive Warranty For: Manufactured/Modular/ Park Model Homes "A Complete Package Designed for Today's Homes" HomeCarePlus A Warranty Program designed to eliminate Costly Repair Expenses on: Structure, Electrical, Plumbing, Heating, A/C & Appliances HomeCarePlus (800) 851-3738 Office (651) 458-2905 Fax diversifiedprofits@comcast.net No. 12 on Get It Quick Page \ 18 T J