Let’s clear up a misconception first, this bill only blocks private equity firms from purchasing SINGLE FAMILY homes, it does nothing to stop them from purchasing manufactured home communities like ours. We have some work to do so we can block private equity firms from buying communities like ours in the future.

This bill’s goal is to boost housing supply through improvements to existing programs, unlocking private capital and reducing federal regulatory barriers.

This is a summary of this large bill…

• It expands federal housing finance, new competitive grant programs including one making grants $250,000 to $10 million to jurisdictions that increase housing supply (Lake Ridge owns farm lands next to us that were planned someday to grow this community). Community Development Block Grant funds can now be used for the construction of affordable housing (cap of 20%). HOME investment program is reauthorized and reformed, being able to use funds for infrastructure (water, sewer, roads).

• Streamline permitting and environmental reviews, HUD is directed to classify a range of housing-related activities as exempt under the National Environmental Policy (NEPA), including rehabs of small residential buildings. HOME-assisted activities are made exempt from environmental review including new-construction infill housing and acquisition for affordable housing.

• Expanding housing financing options. HUD must propose a pilot program to encourage small-dollar mortgage lending for loans less then $100,000.
  

• Manufactured and factory-built housing. The definition of a “manufactured home” is revised to permit homes built with our without a permanent chassis. HUD must issue updated construction standards for homes built without a chassis. States must certify that they treat chassis-free homes on par with traditional manufactured homes (if they do not, the state must prohibit the manufacture, installation or sale of such homes in that state). FHA Title 1 loan limits for manufactured homes and property improvements are increased. The law also directs reviews of FHA construction-financing programs to reduce barriers for modular/manufactured home developers and creates grants to preserve and improve manufactured home communities.

• Reauthorizes the PRICE Grant Program: Authorizes the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Act to provide vital grants supporting manufactured housing communities.

  • The last round of PRICE Grants awarded $38 Million to ROC, that helps private equity owned communities buy them and turn them into Resident Owned Communities (ROC’s).

While this is not a 100% win for manufactured home communities, it clearly gives us some added options. Some of this will have to wait for HUD to write rules and regulations and set up new PRICE award guidelines. We may be able to apply for a grant either directly with PRICE or through ROC.