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4/4/24
The Cromwell’s, comprising James, his wife, and three children, were the fortunate recipients of this donation, becoming the inaugural family to move into this new dwelling. Located on the edge of a development in Keizer, the home provides a space for families to establish themselves while overcoming homelessness and establishing rental history, thanks to the collaborative efforts of Clayton Homes and Family Promise.
Cromwell's journey highlights the challenges many families face. Despite initially living in an apartment and maintaining stable employment, a series of unfortunate events, including a foot injury and the onset of the COVID-19 pandemic, led to financial strain and eventual eviction. The Cromwell’s found themselves burdened with debt and without a permanent residence, struggling to find stability for their family of five.
However, their fortunes changed when they connected with Family Promise in 2023. Through the program, they received temporary shelter and support from local congregations, offering them a lifeline during a tumultuous period. Despite initial apprehension about the program's structure, Cromwell recognized the importance of stability for his children's well-being and embraced the assistance offered by Family Promise.
Under the guidance of Family Promise staff, including Lindsay Savage, the Cromwell’s navigated through their challenges, including filing for bankruptcy to manage their debt. Savage noted the unique difficulties the Cromwell’s faced, particularly the exorbitant charges levied by their landlord during eviction proceedings.
The donation of the transitional home by Clayton Homes provided a beacon of hope for the Cromwell’s. Recognizing their determination to improve their circumstances and the obstacles they would encounter in securing traditional housing, Family Promise selected them as the ideal candidates for the new home. This gesture not only alleviated their financial burden but also provided a sense of security and stability for their family.
With their rent subsidized through a county program, the Cromwell’s now have the opportunity to rebuild their lives with a renewed sense of optimism. Cromwell, now employed at Dollar Tree, looks forward to a brighter future for his family. Their story serves as a testament to the transformative impact of community support and the invaluable contributions of organizations like Family Promise and Clayton Homes in empowering families to overcome adversity and achieve lasting stability.
4/2/24
In conjunction with this financial contribution, Groundworks has launched its esteemed Build Together 2024 initiative, empowering employees to actively participate in the construction process of 55 homes. This initiative signifies a collective effort to foster a sense of belonging and stability within communities nationwide.
For the third consecutive year, Groundworks is proud to extend its support to Habitat for Humanity through both financial backing and volunteerism. The company's dedication to enhancing the lives of community members underscores its core values and mission.
Matt Malone, the esteemed founder and CEO of Groundworks, expressed his sentiments regarding this noble endeavor. "Groundworks is deeply invested in safeguarding and enhancing our customers' most precious asset – their homes," he remarked. "Partnering with Habitat for Humanity aligns seamlessly with our mission, as we collectively strive to offer affordable housing options to those in need. We take immense pride in contributing to the realization of homeownership dreams for over 50 families within the communities we serve."
The inaugural home build supported by Groundworks is slated to commence on April 5 in Tennessee, where dedicated employees will collaborate with Knoxville Habitat for Humanity to construct a residence for a local family. This event marks the beginning of a series of scheduled home builds set to unfold across the nation in the ensuing weeks and months.
Reflecting on the impactful endeavors of the previous year, Jackie Hoffman, Groundworks' Director of Culture and Engagement, highlighted the transformative outcomes achieved through the Build Together program. "In the preceding year, Groundworks employees played an instrumental role in positively impacting the lives of 48 families residing in neighborhoods nationwide," she affirmed. "As we embark on this new chapter, we eagerly anticipate the participation of hundreds of Groundworks team members in volunteering alongside local Habitat for Humanity affiliates. Together, we are poised to create lasting, positive change within our communities."
Groundworks' unwavering dedication to philanthropy and community service serves as a beacon of hope, fostering a brighter future for individuals and families in need of safe and stable housing. Through collaborative efforts and compassionate initiatives, Groundworks continues to exemplify the transformative power of corporate social responsibility.
3/4/24
First, the U.S. Department of Housing and Urban Development (HUD) published a Final Rule raising loan limits for the Federal Housing Administration (FHA) Title I manufactured home single-family loan program. Loan limits for a home-only loan would rise from $48,600 to $69,687, the limit for lot-only loans would rise from $16,200 to $23,226, the limit for property improvement loans would rise from $7,500 to $25,090, and the limit for combined home and lot loans would increase from $64,800 to $92,904. To support this, the White House also announced revisions to Ginnie Mae’s eligibility requirements for Issuers of its Manufactured Housing Mortgage-Backed Securities program.
Inflationary adjustments for FHA manufactured home loans were required under the 2008 Housing and Economic Recovery (HERA) law and have been cited as one of the factors causing the Title I program to fall into disuse. MHI has advocated for action to revive the FHA Title I program for some time by updating FHA and Ginnie Mae rules and increasing the FHA loan limits. While this announcement does not include all of MHI's recommendations, it is a positive step toward ensuring the FHA Title I program is available for purchasers of manufactured housing.
The White House also announced a HUD Notice of Funding Opportunity (NOFO) for the availability of $225 million in Competitive Grants for certain manufactured home community (MHC) owners, pursuant to funding approved by Congress in 2023. Eligibility for the grants is limited to resident-controlled MHCs, cooperatives, non-profits, state governments, Indian Tribes, and Community Development Financial Institutions (CDFIs). MHI worked to secure authority for HUD to make for-profit MHC owners eligible for the grants when the program was passed in Congress. MHI is disappointed that HUD elected not to use that authority to make for-profit owners eligible.
HUD grants would be used for “critical investments such as repairs, infrastructure improvements, upgrades to increase resilience, services like eviction prevention and housing counseling, and planning activities.” Of the total grants available, $25 million is set aside under a pilot for redevelopment of manufactured communities as replacement housing that is affordable.
To complement these grants, FHA also published a draft Mortgagee Letter reactivating the FHA Section 227(f) loan program for manufactured home communities, which the same entities eligible for the grants announced today could use in conjunction with the grants.
2/20/24
The Manufactured Housing Institute reported recently in a newsletter to members that Rep. Ralph Norman of South Carolina sent a letter to the House Appropriations Committee urging it to include the manufactured housing energy standards limitation amendment he sponsored be included in the Fiscal Year 2024 Energy and Water Appropriations bill.
The language has been adopted by voice vote during House considerations on the topic.
“Manufactured housing is truly one of the best opportunities for helping families make the dream of home ownership a reality,” Norman stated in the letter. “As a representative of South Carolina, a state with the largest proportion of manufactured housing in the country, I cannot allow ill-advised DOE energy standards to inappropriately threaten the affordability of these homes.”
The letter was signed by 23 other law makers:
Rep. Andy Barr of Kentucky
Rep. Larry Bucshon of Maryland
Reps. Tim Burchett, Diana Harshbarger, Andrew Ogles, and John Rose of Tennessee
Reps. Bill Posey Byron Donalds of Florida
Rep Earl L. Carter of Georgia
Rep. Jeff Duncan of South Carolina
Rep. Scott Fitzgerald of Wisconsin
Rep. Mike Flood of Nebraska
Rep. Lance Gooden, Troy E. Nehls, Randy K. Weber, Sr., and Pete Sessions of Texas
Rep. French Hill of Arkansas
Rep. Michael V. Lawler of New York
Rep. Dan Meuser of Pennsylvania
Rep. Mary E. Miller of Illinois
Rep. Alex X. Mooney of West Virginia
Rep. Ann Wagner of Missouri
Rep. Rudy Yakym III of Indiana
2/5/24
“The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation,” Jerome Powell, the chairman of the Federal Reserve, said in his statement following the meetings. “We are highly attentive to the risks that high inflation poses to both sides of our mandate, and we are strongly committed to returning inflation to our 2 percent objective.”
4/10 Exciting News from MHInsider for 2024!
Manufactured Housing Set to Soar in 2024
A Strategic Overview of Opportunities, Challenges for Investors
By Berkadia Manufactured Housing Senior Managing Director Kevan Enger
2024 is starting off strong in the manufactured housing space.
Over the past 12 months, the commercial real estate market has been perfecting the art of a patient yet watchful holding pattern. Increasing interest rates, two wars, and tight capital markets kept the commercial property investment collective on the sidelines holding their breath for a soft landing.
That soft landing is now on the horizon.
While most commercial real estate asset classes fared relatively well considering the low trading volumes experienced in the past year, the often under-the-radar manufacturing housing category is flying above expectations.
Fundamentals for the asset class are holding up with exceptionally high demand and not much new supply becoming available, keeping the balance in favor of investors and sellers alike.
Positive rent growth has been buttressed by several broader market trends, including record-high multifamily rents, soaring prices, and high interest rates for prospective single-family rental homebuyers, and the lack of affordable housing.
Meanwhile, cautious capital has prompted owners of all sizes to focus on shoring up operations while the proverbial dust settles. In-place yields have taken the place of cap rates on the scale of importance as investors seek to manage the impact of debt.
Looking forward, there are several developing trends manufactured housing community owners will want to keep an eye on for potential opportunities and challenges.
National Attention on Affordable Housing
Affordable housing has taken center stage at the national level. A recent U.S. Government Accountability Office (GAO) report points to the 24 percent increase in rents as a call-to-action as “many low-income renters face shortages in affordable housing.”
Several national agencies are tackling the affordability and supply problem on multiple fronts, identifying manufactured housing as important in “meeting the nation’s affordable housing needs,” implementing several initiatives that are already underway. These initiatives include efforts to make manufactured home loans more affordable, the opening of the Office of Manufactured Housing Programs under HUD, incentivizing the easing MHC permitting restrictions, and Fannie Mae and Freddie Mac initiatives to expand their suite of manufactured home and community offerings.
The increased attention, resources, and mainstreaming could bring new opportunities as well as competition into the space.
Local Attention on Affordable Housing
Affordable housing isn’t only garnering increased focus at the national level, local governments are also turning their attention to the issue. As the manufactured housing product evolves, national incentives trickle down, and public outcry over affordable housing grows, so will attention at the local level. Owners will want to monitor local multifamily supply in the pipeline, keep a sharp ear tuned into the potential easing or tightening of relevant zoning regulations, and stay informed and connected to hear of upcoming federally boosted opportunities.
Insurance
In the past 12 to 18 months, insurance costs have become a thick thorn in the side of all commercial property owners, especially in the Sun Belt. This issue will remain a challenge for property owners with costs seeking an outlet that will typically be passed through to residents. We don’t think this issue has come to a head yet so owners will want to maximize operational and financial efficiencies wherever possible.
The growing attention on capital, yield, efficiency, and supply is one of the reasons for our team’s recent move to Berkadia. At Berkadia, we have the tools to address the lifecycle needs of manufactured housing community owners, investors, and sellers that begin with either the disposition or acquisition of their MHC assets.
As the MHC landscape continues to evolve, would-be investors would be wise to not expect any fire sales in the space. The manufactured housing community asset remains strong and on solid ground. The recent holding patterns are being left behind as investors once again pull up to the runways and gear up for takeoff.
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