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HUD Code Manufactured Home Production Rises Sharply

May 3rd, 2017 Comments off
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Credits: MHARR, HUD.

Washington, D.C., May 3, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production increased substantially again during March 2017.

These just released statistics indicate that HUD Code manufacturers produced 8,245 homes in March 2017, a nearly 16 percent increase over the 7,110 HUD Code homes produced during March 2016.

Cumulative industry production for 2017 now totals 23,384 homes, a 22.4 percent increase over the 19,101 HUD Code homes produced over the same period in 2016.

A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through March 2017 — with cumulative, monthly, current year (2017) and prior year (2016) shipments per category as indicated, are:

HUDCodeManufacturedHomeProductionSignificantIncreasesMarchReportcreditMHARR-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: MHARR.

The latest information for March 2017 results in no changes to the cumulative top ten list.

In its most recent edition of “Issues and Perspectives,” a newsletter that focuses on items relevant to the manufactured housing industry, MHARR tackled key issues, including the new tariff on Canadian soft lumber.

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MHARR President & CEO, Mark Weiss. Credit: MHProNews.

After threatening to impose trade duties on goods imported from China and Mexico during the presidential election campaign in 2016, the administration announced its first new tariff on imported goods in a statement issued by Commerce Secretary Wilbur Ross on April 24, 2017,” says MHARR in the report.

While the imposition of the Canadian lumber tariff caps a period of serious economic uncertainty for the residential construction industry, increases in home prices driven by higher supply costs for basic raw materials, such as wood, will have a magnified impact on the highly-priced sensitive manufactured housing market.”

For more from MHARR on the newsletter, click here. ##

 

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RC Williams, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

HUD Code Manufactured Home Production Double-Digit Growth, February Report

April 5th, 2017 Comments off
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Credits: MHARR, HUD.

Washington, D.C., April 4, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production increased substantially again during February 2017.

These just-released statistics indicate that HUD Code manufacturers produced 7,312 homes in February 2017, a 19.3 percent increase over the 6,129 HUD Code homes produced during February 2016. Cumulative industry production for 2017 now totals 15,139 homes, a 26.2 percent increase over the 11,991 HUD Code homes produced over the same period in 2016.

A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through February 2017 — with cumulative, monthly, current year (2017) and prior year (2016) shipments per category as indicated — are:

HUDCodeManufacturedHomeProductionDoubleDigitGrowthFebruaryReportcreditMHARR-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: MHARR.

The latest information for February 2017 results in no changes to the cumulative top ten list.

MHARR recently released its first edition of “Issues and Perspectives,” a newsletter that focuses on items relevant to the manufactured housing industry.M.Mark.WeissJDPresidentCEOMHARRManufacturedHousingAssociationforRegulatorReform-creditManufacturedHousingIndustryDailyBusinessNewsMHProNews

The edition of the newsletter addressed the need for manufactured housing to remain federally regulated, with MHARR President & CEO Mark Weiss stating, “In the natural world, the telltale scent of decay inevitably attracts predators and opportunists. Apparently, it’s no different with the decay of the HUD manufactured housing program over the past decade, and particularly over the past three years.

With the program in a steep decline under its present Administrator, talk has once again emerged about ‘sunsetting’ the program at HUD, along with its federally preemptive building code, removing this expenditure from the federal budget.”

 

For more from MHARR on the newsletter, click here. ##

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

HUD Code Manufactured Home Production Increases, January Report

March 6th, 2017 Comments off
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Credits: MHARR, HUD.

Washington, D.C., March 6, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production increased substantially during January 2017.

These just-released statistics indicate that HUD Code manufacturers produced 7,827 homes in January 2017, a 33.5 percent increase over the 5,862 HUD Code homes produced during January 2016.

MHARR says that the steady increase in HUD Code manufactured housing production since 2011 is “clear and indisputable evidence that manufactured homes not only continue to serve a vital role in the nation’s housing market, but that today’s high-quality manufactured homes are attracting ever-larger numbers of homebuyers.

MHARR’s analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through January 2017, with cumulative, monthly, current year (2017) and prior year (2016) shipments per category as indicated are:

The latest information for January 2017 results in no changes to the cumulative top ten list.

MHARR has long maintained that Fannie Mae and Freddie Mac cannot meet the mandate of “Duty to Serve” (DTS), and cannot adequately serve the manufactured housing market and the millions of moderate and lower-income consumers who rely on affordable, non-subsidized manufactured housing without manufactured housing chattel lending.

The full MHARR report is linked here.

For more commentary from MHARR, including Ben Carson’s confirmation as HUD Secretary, click here. ##

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News, MHProNews

MHC Community Owners Seek Code Changes

February 7th, 2017 Comments off
MHCCommunityOwnersSeekCodeChangescreditBismarckTribune-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Bismarck Tribune.

In Bismarck, North Dakota, affordable housing is of vital importance.

And, according to the Bismarck Tribune, a group of manufactured home community owners are petitioning the city commission for the creation of a task force to keep manufactured home community living affordable.

 

These homes represent the most affordable unsubsidized housing in Bismarck,” the letter from community owners reads.

Unfortunately, Bismarck’s city policies unfairly burden the affordability of manufactured homes and impose on these homeowners costs which other homeowners are not asked to bear.

According to Myron Atkinson, spokesman for the group, and owner of Tatley Meadows, the issue is the manner in which costs for water, sewer, property taxes and other services are calculated.

The current calculation leads to a higher price per unit for those living in manufactured home communities versus those in other residential properties.

For example, sewer service is charged at a rate of $2.41 per unit for those with one to four families on a meter,” said Atkinson.

MHCCommunityOwnersSeekCodeChangescreditMHVillage-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: MH Village.

For those with five or more on a meter, the rate is $2.92 per unit, meaning mobile home [sic] owners pay a higher rate even though they each own their homes individually.

Atkinson shared that some progress has been made over the last year but there are still discrepancies.

Manufactured home owners were specially assessed at 200 percent of a special assessment basis, compared to 100 percent for a single-family dwelling.

While that percentage has been reduced to 150 percent, it’s still an issue for Atkinson.

We want our people treated like every other homeowner,” said Atkinson.

We [MHC operators] are expecting a sudden change in sanitary sewer rates being affected by federal environmental regulations, with rates expected to go from $2.56 to $2.92. It’s going to make a real difference in what rent increase is going to have to be.

And that rent increase has MHC owners concerned. Atkinson is estimating he will have to raise rents $15 per month just due to the sanitary sewer rates. By comparison, he says that he usually tries to keep increases below 3 percent annually as he adjusts for rising costs in employee salaries and services.

If you’ve got affordable housing, you should keep it affordable,” said Atkinson.

While the group has not heard back from city commissioners, Atkinson said that they are hopeful for a response soon, and that the proposed task force would include both residents and owners working with the city to find solutions to the challenges. ##

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

HUD Code Manufactured Home Production Continues Growth, December Report

February 6th, 2017 Comments off
mharr-hud-manufacturedhousingmonthlyproductionreport-manufacturedhousingindustryshipmentsdailybusinessnewsmhpronews

Credits: MHARR, HUD.

Washington, D.C., February 6, 2017 – The Manufactured Housing Association for Regulatory Reform (MHARR) tells MHProNews that, per official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production increased substantially again during December 2016.

These just-released statistics indicate that HUD Code manufacturers produced 6,995 homes in December 2016, a 23.6 percent increase over the 5,657 HUD Code homes produced during December 2015.

Cumulative industry production for 2016 was 81,136 homes, a 15 percent increase over the 70,544 HUD Code homes produced during 2015.

MHARR has provided cumulative annual industry production figures since 2008 for reference:

  • 2008 – 81,457 homes
  • 2009 – 49,683 homes
  • 2010 – 50,056 homes
  • 2011 – 51,618 homes
  • 2012 – 54,881 homes
  • 2013 – 60,228 homes
  • 2014 – 64,334 homes
  • 2015 – 70,544 homes
  • 2016 – 81,136 homes

MHARR’s analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through December 2016 — with cumulative, monthly, current year (2016) and prior year (2015) shipments per category as indicated, are as follows:

HUDCodeManufacturedHomeProductionContinuesGrowthDecemberReportcreditMHARR-postedtothedailybusinessnewsmhpronewsmhlivingnews

The latest information for December 2016 results in no changes to the cumulative top ten list.

MHARR says that while continued growth in manufactured housing production levels since 2010 is encouraging, given the high and growing demand in the United States for affordable housing and home ownership and other factors, annual production levels should be in the hundreds of thousands of homes.

The full report is linked here.

For the MHProNews preview of the HUD housing numbers, click here.

The Daily Business News also recently covered MHARR’s statement that President Donald Trump’s regulatory orders will have a direct impact on manufactured housing. That report is here. ##

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Tough Times for Tiny Home Builders

January 23rd, 2017 Comments off
ToughTimesforTinyHomeBuilderscreditDailyRecord-postedtothedailybusinessnewsmhpronewsmhlivingnews

A tiny home in progress. Credit: Daily Record.

While tiny homes may be all the rage in popular culture, local governments and regulations have made things tough in Washington State.

It hasn’t been easy to start a tiny house manufacturing business. There is a stigma against tiny houses from many local governments,” said Darin Tusler.

He helped start Union Gap-based Yakima Canyon Tiny Homes in December 2015.

According to the Daily Record News, the company has faced push back from counties classifying the homes as recreational vehicles and not permitting them for full-time occupancy, since they are built on trailers.

It’s still too new and so you can call two days in a row and get two different answers (from counties),” said Tusler.

Paul Billings, Tusler’s partner in Yakima Canyon Tiny Homes says that the homes are built to standards.

The homes technically are RVs, but are built to housing standards and beyond,” said Billings.

ToughTimesforTinyHomeBuildersDarrenTuslerPaulBillingscreditDailyRecord-postedtothedailybusinessnewsmhpronewsmhlivingnews

Darin Tusler and Paul Billings discuss progress inside of a home. Credit: Daily Record.

The homes have to travel down the road and so everything is screwed in for the most part and strapped down, it’s even stronger than you normally have in a home.

In Kittitas County, building official Mike Flory provided some clarity on the rules in his county.

It isn’t illegal to build a tiny house in the county, but there is a difference between a recreational vehicle and a home,” said Flory.

If you want a tiny house you can have one. I can show you how to get one under 200 square feet.

County ordinances state that a home has to have a foundation, a roof structure and meet size requirements of at least 70 square feet for bedrooms and bathrooms, which was reduced from 120 square feet in 2015.

ToughTimesforTinyHomeBuildersMikeFlorycreditLinkedIn-postedtothedailybusinessnewsmhpronewsmhlivingnews

Mike Flory. Credit: LinkedIn.

So the code is actually following the trend,” said Flory.

But, according to Flory, Billing’s comments about his tiny homes technically being RV’s create an issue.

A recreational vehicle, though, is not a house. Companies manufacturing tiny houses are building them on car trailers and calling them recreational vehicles, because if it was called a manufactured or modular home, it would need to be inspected and meet certain building code requirements that recreational vehicles don’t need to meet,” said Flory.

They’re building houses on something that was never designed to have a house on it.

Recreational vehicles are not meant for full-time occupancy.

Flory says that while some counties allow people to live in recreational vehicles, Kittitas County does not due to health concerns, with FEMA homes after Hurricane Katrina used as an example.

Flory also cited what ended up being a $170,000 misunderstanding.

After spending $70,000 on a tiny house, a man bought a piece of land, put in a sewage and water line and placed the tiny house on the lot–without getting the proper county permits.

It turned out that the tiny house did not meet county code, and wasn’t allowed. So the homeowner had to take the tiny house off of his lot and put in storage.

It cost him around $100,000.

That’s a hard pill to swallow it really is,” said Flory.

ToughTimesforTinyHomeBuildersPaulBillingscreditDailyRecord-postedtothedailybusinessnewsmhpronewsmhlivingnews

Paul Billings. Credit: Daily Record.

 

State Requirements

For Yakima Canyon Tiny Homes, the pain isn’t just limited to county ordinances.

In order for the company to manufacture tiny houses, it needs a license from the Washington State Department of Labor and Industries, has to be listed in the Yellow Pages, operates with regular full-time hours, have signage by the road and have a direct phone line.

In addition to those requirements, the annual cost of renewing the company’s manufacturing license is nearly $20,000 per year.

The company has yet to turn a profit.

It’s been a nightmare. Going through the state has sucked,” said Tusler.

The license from the state does allow the company to manufacture anything permissible by Labor and Industries, including manufactured homes. This means it could design a tiny house as a manufactured home. ##

(EDITOR’S Note: MHLivingNews has covered the “tiny home” movement extensively, including the potential for big legal trouble for owners and a detailed side-by-side comparison with manufactured homes, highlighting function and value versus fashion.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.