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THE MANUFACTURED HOUSING IMPROVEMENT ACT

The Manufactured Housing Improvement Act continues to be the key legislative issue for the manufactured housing industry and we have made tremendous inroads towards its ultimate passage. On April 6, the U.S. House of Representatives passed H.R. 1776, the omnibus housing bill that includes Title XI, the Manufactured Housing Improvement Act. Then on May 4, the U.S. Senate passed by unanimous consent S. 1452, the Senate version of the Manufactured Housing Improvement Act. The next steps in the process are to first reconcile the few differences in the House and Senate bills in a "conference committee" made up of House and Senate members; then, the "conference report" must be passed by both the House and Senate; and finally, the bill must be signed into law by the President.

Once implemented, the Manufactured Housing Improvement Act will benefit industry and homeowners by providing a more effective method of establishing the standards to which manufactured homes are built. A private sector consensus committee will make recommendations to the Secretary of the Department of Housing and Urban Development (HUD). If the Secretary does not act on the recommendations within one year of receiving them, the recommendations will be implemented. This will allow the industry to keep up with the rapidly changing construction and safety technologies in order to provide consumers with the highest quality, cost-efficient homes possible. The legislation clarifies the scope of federal preemption and provides HUD with additional staff and resources. Furthermore, the industry will also benefit from the requirement for each state to institute an installation program and a dispute resolution program within five years of the enactment of the legislation. The installation program would include installation standards, licensing and training of installers, and installation inspections.

PATH APPROPRIATIONS

In October 1999, MHI successfully lobbied for full funding of the Partnership for Advancing Technology in Housing (PATH) program at the level of $10 million for the fiscal year 2000. Building on that achievement, MHI worked to add report language to the fiscal year 2001 appropriations bill. The language that has been included in the report directs HUD to recognize the role of manufactured homes in providing housing to Americans and the research value of the Manufactured Housing Research Alliance (MHRA). MHI worked with Rep. David Price (D-N.C.), member of the Appropriations Housing Subcommittee, Manufactured Housing Caucus and supporter of the Manufactured Housing Improvement Act, and Rep. James Walsh (R-N.Y.), chair of the HUD Appropriations Subcommittee and Manufactured Housing Improvement Act cosponsor, to include the language.

The language will ensure a greater role for the industry in the PATH program. In coordinating its efforts with PATH, MHRA can further its goal of generating the knowledge and innovations necessary for the manufactured housing industry to remain the nation's preeminent supplier of high quality, affordable housing.

OSHA REFORM

On November 23, 1999, the Occupational Safety and Health Administration (OSHA) published in the Federal Register a proposed rule on ergonomics standards to address the risk of work-related musculoskeletal disorder (MSD) injuries and illnesses in the workplace. The proposed ergonomics rule, which is opposed by the U.S. Chamber of Commerce and many other business groups, provides a sweeping set of standards designed to reduce injuries and illnesses in the workplace. OSHA has concluded that MSD injuries, which account for one third of all occupational injuries and illnesses, can be significantly reduced through the implementation of its proposed ergonomic program.

Since the manufactured housing industry employs assembly-line techniques and manual lifting jobs on a daily basis, the proposed ergonomics program may have a significant impact on assembly procedures for manufactured homes. All manufactured home producers and most product suppliers, as well as some retailers and community owners, would be affected by this proposed rule, making the ergonomics program a costly burden to the entire manufactured housing industry.

On May 9, MHI testified before OSHA in opposition to the proposed ergonomics rule. Comments in MHI's testimony include: 1) all MSDs are not work-related; 2) there is no manner to entirely eliminate the hazards associated with repetition, vibration and physical force required in manufactured home production facilities; 3) OSHA has chosen not to regulate the construction industry, and the only difference between site-built homes and manufactured homes is that manufactured homes are built under one roof; 4) actual costs for implementing the program will far exceed the estimates of OSHA; 5) there is no agreement in the scientific community on the cause and correction of MSDs; 6) employers will have to examine every workstation in manufactured home production; 7) there is no evidence that the proposed program will result in fewer complaints of MSDs, and 8) OSHA is attempting to preempt state workers' compensation laws by requiring that an employer pay 90 percent of wages and 100 percent of benefits for an employee who is able to find a health care provider that will deem any injury work related, even if the injury was the result of a recreational or other non-work activity.

PREDATORY LENDING

So called "predatory lending" bills have been introduced by the Ranking Minority Members of the Senate and the House Banking Committees. S. 2415, introduced by Senator Paul Sarbanes (D-Md.), and H.R. 4250, introduced by Rep. John LaFalce (D-N.Y.), are designed to amend the Home Ownership and Equity and Protection Act and the Truth in Lending Act to protect consumers against predatory, high-cost mortgage transactions.

These predatory loans are usually targeted toward homeowners with high equity in their homes. The owners secure loans using that equity as collateral. The predatory practices often include high fees, hidden costs, unnecessary insurance and larger repayments due in later years.

The bills would extend protections to more high-cost mortgage originations, refinancing, home equity loans and home repair loans. It would also expand consumer protections under the act to address additional lending abuses and strengthen consumer civil remedies against these practices. During a hearing, held by the House Banking Committee on May 24, Chairman Jim Leach (R-Iowa) commented that regulators have sufficient authority to curb abusive lending practices and any legislation will be at the margins. MHI staff will continue to monitor the legislation and work to ensure that our industry will not be unfairly targeted.

SOFTWOOD LUMBER

MHI continues to be a member of the American Consumers for Affordable Homes (ACAH), an ad-hoc alliance of business and consumer interests supporting free trade in lumber. The coalition is working for the elimination of the U.S.-Canada Softwood Lumber Agreement (SLA). The SLA subjects Canadian lumber imported by the U.S. to tariffs, which have significantly raised the cost of lumber and caused price volatility. This has raised the production cost for manufacturers and, ultimately, the sales price to consumers.

The ACAH submitted arguments to the United States Trade Representatives to allow the agreement to end when it expires April 1, 2001, and subsequently submitted rebuttal comments to arguments made in favor of extending the tariffs. Additionally, in order to gain political support within the Administration, the coalition worked with Members of Congress to introduce "Sense of Congress" resolutions in each body calling for a permanent end to the SLA. Although the Senate resolution was introduced only last month with eight cosponsors, the House resolution has over 100 cosponsors.

© 2000 by Manufactured Housing Institute. All rights reserved.