Issue link: https://read.dmtmag.com/i/733263
OCTOBER 2016 24 THE JOURNAL Ask Eddie: About Our Pari-Modular Homes BY ED HICKS DEVELOPMENT MARKETING I and my wife of 36 years, contentedly and safely live in a factory built house. We have happily made it our retirement home on a small, easy to maintain homesite. It is energy efficient, roomy, with all the features of a so- called modular at 2/3 the price. Or is it a pre- fab, sectional, modular, manufactured home, mobile home, trailer house, or a park model RV? Is it the terminology that is important, or the construction and intent for use of the dwelling itself? I refer to it as our "pari-modular home". That is to say, it has most of the important in- ternal and external characteristics of an IBC home (modular) but has been factory con- structed to the performance based HUD build- ing codes, rather than to the more expensive and prescriptive state modular or IBC codes. Where we live there are still some antiquated zoning restrictions on placement, however when conveyed to us with the land as real prop- erty, it is eligible for 30-year low interest fi- nancing loans. Pari passu and pari mutual are Latin phrases that literally mean: "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by ex- tension, "fairly", "without partiality". Hence the proposed use of "pari modular" to represent the non-specific up grading of options and fea- tures of HUD code homes to virtual standard for modular or IBC homes, albeit at substan- tially lower costs. If one is a "social" being, what our home is called could be important. But is it really important to us or others what nomenclature we give to the home we live in? Is, whether or not we own the land under it, or lease it instead important? Various types of factory built homes, primarily HUD code and modulars, are treated differently in so many ways, all of which may depend on: - construction building codes, method of transport to site, home size and configuration, zoning or land use restrictions, affixed to permanent foundation, titled as real property, titled as personal property taxed as real property, taxed as personal property All of the above differences may have an im- pact on: site location approvals financing term length of occupancy, financing interest rate, financing term length, mortgage type, resale financing, method of appraisal, sale/resale licensing, size modifications, allowable heating devices, In most US states and commonwealths, laws with regard to ownership, titling, financ- ing and other legal issues may apply differently; which begs the question: if it is safe enough to be sited in a separately zones parcel of land to live in, with virtually the same construction char- acteristics and appearance, as a site built, IBC or modular home, 'why-oh-why' should it be treated any differently when it comes to new fi- nancing, and refinancing terms when sold? In my opinion the availability and terms of refi- nancing HUD code homes may be the most im- portant factor which can negatively affect resale values. In so many high quality ground lease com- munities for seniors, all across the US these Paris-modular homes resell often at prices which challenge and frequently exceed this of area site built sticks and bricks. It is fortunate that so many seniors are able to use their previous homes equity upon sale to be able to purchase these well kept homes in such desire able com- munities. Quality trade publications like the Journal often feature front covers and other stories about the values of these "upper end" homes, to the delight of residents and community de- velopers. Although they are typically in resort locations, and in areas near some of our more populous cities and towns, there is the poten- tial for them to be built in almost any part of the USA. How about it members of our legislatures and finance bureaucrats? Edward Hicks, Lic. Mortgage Broker, Licensed RE Broker, since 1963 as a m/h retailer, home manu- facturer, community developer, and consultant. easteddie@aol.com, www.mobilehomepark.com, www.factorybuilthome.com 813 300-6150 T J