HUD and FHFA Bring Manufactured Housing into Affordable Housing Conversation at Senate Hearing

On Thursday, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the “Oversight of Federal Housing Regulators.” HUD Acting Secretary Adrianne Todman and the Director of the Federal Housing Finance Agency (FHFA), Sandra Thompson, were witnesses at the hearing. In their written statements submitted in advance of the hearing, both Acting Secretary Todman and Director Thompson brought manufactured housing into the conversation about affordable housing.

“Manufactured housing also plays an important role in building the supply of single-family affordable housing – not only in rural areas on privately held land and in manufactured housing communities (MHCs), but also in fee-simple subdivisions and infill housing in urban areas,” wrote Director Thompson. “The future potential for manufactured housing extends beyond manufactured housing communities and personal property financing, including through its use for affordable infill opportunities with 2-4 unit homes as well as single-family detached homes that can be financed as real property. FHFA supports the responsible growth of the manufactured housing market, as this represents an opportunity to help address the nation’s affordable housing supply challenge,” she continued. Acting Secretary Todman highlighted the actions taken to support programs targeted toward affordable housing such as changes to the HOME program and FHA Title I.

During the hearing, Senator Menendez (D-NJ) said that HUD has primary statutory responsibility for regulating manufactured housing and has been working on updates to energy efficiency and other construction standards for manufactured homes, and the Department of Energy has been working in parallel on their own energy efficiency updates. He asked for an update on HUD’s energy efficiency and construction standards.

Acting Secretary Todman responded that the DOE was compelled by legislation to work on energy standards for manufactured housing. She said that HUD has a draft rule, and they are trying to balance the need for energy efficiency along with housing affordability. Todman said HUD has been working with the Department of Energy to do meet that goal.