The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), has launched a new loan product aimed at providing affordable financing for the purchase, refinance, and revitalization of manufactured home communities. The initiative seeks to preserve, stabilize, and revitalize these housing options across the country.
HUD Acting Secretary Adrianne Todman announced the program during a media preview for the 2024 Innovative Housing Showcase on the National Mall in Washington, D.C. "Manufactured home communities offer a stable and affordable housing option for many families. Today, HUD is providing new resources for preserving and revitalizing these communities by providing FHA-insured financing to mission-focused groups to buy or refinance and revitalize manufactured homes," said Todman. She added that this effort is part of HUD's broader strategy to expand access to innovative, affordable housing solutions, particularly in rural areas.
Eligible entities include resident-owned manufactured home communities, cooperatives, non-profit organizations, state and local governments, community development financing institutions, and Indian Tribes. These groups can now use this program to finance acquisitions or improvements of existing communities. The financing aims to update common area resources and maintain rent affordability while offering an alternative to private equity funds known for raising rents and neglecting infrastructure.
This new tool complements HUD’s PRICE program which offers competitive grants for investments in affordable manufactured home communities. According to HUD estimates, more than 5,000 individuals and families could benefit from this initiative within the next five years.
The Manufactured Home Communities program leverages FHA’s Multifamily 223(f) program to provide permanent mortgage financing for previously ineligible manufactured home communities and cooperative borrowers. "With this product, HUD aims to support resident-owned communities and other mission-focused owners who are committed to high-quality, affordable manufactured housing that is not at risk of exorbitant land rent increases that jeopardize the stability of their homes and futures," said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.
Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman described the announcement as "an important first step" towards creating and preserving affordable manufactured home communities. He emphasized ongoing assessments of both the scope of the program and entity eligibility as implementation progresses.
