PATH (Partnership for Advancing Technol­ ogyin Housing) is a new private/public effort to develop, demonstrate, and gain widespread mar­ ket acceptance for the “Next Generation” of American housing. Through the use of new or innovative technologies the goal of PATH is to improve the quality, durability, environmental efficiency, and affordability of tomorrow’s homes. Initiated at the request of the White House, PATH is managed and supported by the Depart­ ment of Housing and Urban Development (HUD). In addition, all Federal Agencies that engagein housing researchand technology devel opment are PATH Partners, including the Depart­ ment-sof Energy and Commerce, as well as the Environmental Protection Agency (EPA) and the Federal Emergency Management Agency (FEMA). State and local governmentsand other participants from the public sector are also part­ ners in PATH. Product manufacturers, home builders, insurance companies, and lenders repre­ sent private industry in the PATH Partnership. To learn more about PATH, phase contact:

p;aTH

PliiXtil”,” WI r”;mc,NG r~i*:iJroi” IXH”,Ii”C ...... *.* . . . . . Suite B 133 451 7th Street, SW Washington, DC 20410 202-708-4250 (fax) e-mail: [email protected] website: www.pathnet.org Home Builders’ Guide To Manufactured Housing Preparedfor: U.S. Department of Housing and Urban Development Office of Policy Development and Research Washington, D.C.

Prepared by: NAHB Research Center, Inc. Upper Marlboro, MD

May 2000

Home Builders’ Guide To Manufactured Housing i This report was prepared by the NAHB Research Center, Inc., for the U.S. Depart­ ment of Housing and Urban Development, Office of Policy Development and Research. The contents of this report are the views of the contractor and do not necessarily reflect the views or policies of the U.S. Department of Housing and Urban Development, the U.S. Government, or any other person or organization. Trade or manufacturers’ names herein appear solely because they are considered essential to the object of this report.

Cover photograph and photos on pages 2 and 3 (left) provided cowtesy of the Manufactured Housing Institute. Diagram at bottom of page 20 and photo at bottom of page 21 provided courtesy of Mr. Stew Hullibarger

ii Home Builders’ Guide To Manufactured Housing Foreword

Most new homes in the United States are site-built to State and local codes, but an increasing number are “manufactured homes,” designed and constructed to meet the re­ quirements of the preemptive Federal Manufactured Home Construction and Safety Stan­ dards. For decades, manufactured housing has provided a low-cost alternative to conven­ tional site-built construction. Evolution of the manufactured home is eliminating many of the differences with site-built homes, and changes in zoning laws are allowing use of manufactured homes outside of land zoned for parks in a growing number of States. These developments are leading some home builders to consider using manufactured housing for entryAeve1 product, often with significant site-built improvements or enhance­ ments, instead of site-built homes. The result can be substantially lower production cost or other economic advantages for the builder and the consumer. This Guidebook provides conventional builders and land developers with an introduc­ tion to manufactured housing, focusing on differences between manufactured and conven­ tional homes that are likely to be encountered in practice. Chapters of the Guidebook describe various options for using these homes. The Guidebook covers finding a manufac­ turer, developing product specifications, potential contractual arrangements, local zoning and land-use planning considerations, installation and foundation options, site-built im­ provements, regulatory issues and consumer financing. Many references to more detailed resources are also included. Users of the Guidebook will find a wealth of information to assist in their business planning and support decisions about whether and how to make use of manufactured housing as part of a larger home building business.

Susan M. Wachter Assistant Secretary for Policy Development and Research

Home Builders’ Guide To Manufactured Housing A Quick Guide to the Guidebook

This book presentsinformation for site builders and kmd developersabout how they can use HUD-Code manufactured housing as part of their business operations.

If You Need an Introduction... If you need an introduction to the subject you should start with Chapter One, which describes the evolution of manufactured housing from a market and design standpoint, and Chapter Two, which discusses market positioning and the different types of business oppor­ tunities you may want to consider pursuing with HUD-Code homes. These chapters will help you determine which other parts of the Guidebook to review.

If You Have a Proiect in Mind... If you are generally familiar with manufactured housing and already have a tentative busi­ ness concept in mind, you can jump directly into the later chapters that present more de- tailed information about some of the key issues that may arise in connection with your project.

l Chapter Three goes into detail about identifying, selecting and working with a manufacturer to identify acceptable designsand strike an appropriate businessrelationship. Every builder who uses manufactured housing will need to addresstheseissues.

l Chapter Four discussesspecial zoning issuesthat may arise in projects to use manufactured housing, including state-levelrequirements for using manufactured units on land zoned for single family houses that should help you work within the local system.

l Chapter Five coversunit installation and site-built improvements such as attached garagesor decks, and how they diff er fr om conventional site-built construction.

l Chapter Six coversconsumerfinancing alternatives which are critical to any sale, including realand personal property financing.

l Chapter Sevenpresentscasestudies of someprojects that have used manufactured housing.

If You Have Detailed Ouestions or Need More Information... The Appendices present other materials that you should find very helpful.

l Appendix A contains a list of manufacturing plants by state, city and manufacturer.

l Appendix B contains selected state-level market data and extensive information about state zoning requirements relating to manufactured housing.

l Appendix C contains a list of State Administrative Agencies that participate in enforce­ ment of the HUD regulatory system and may regulate installation or site alterations.

l Appendix D presents information about typical development standards for land-lease com­ munities of manufactured homes.

l Appendix E includes manufacturer contacts, producer web sites, state-level manufactured housing association web sites and other useful references.

iv Home Builders’ Guide To Manufactured Housing Table of Contents

Introduction ...... 1

BasicConsiderations...... 7

Selectingand Working with aManufacturer ...... 15

Zoning and Land-UseRegulation ..,...... +...... 25

Installation, Foundationsand SiteBuilt Improvements ...... 31

ExampleProjects...... 43

Appendix A: List of HUD-Code Manufacturing Facilitiesby Stateand City ...... 45

Appendix B: Market Information and Zoning Lawsby State ...... 49

Appendix C: StateAdministrative Agencies ...... 59

Appendix D: ManufacturedHome Community Developments...... 63

AppendixE: Resources...... 69

Home Builders’ Guide To Manufactured Housing ” List of Tables

Table 1 Publicly Traded Manufactured Home Producers: 1998 Data ...... 15

Table 2 StatesAdopting Revised Zoning Standards for Manufactured Housing, 1987-1999 ...... 26

Table 3 Summary of FHA, VA and RECD Real Property Loan Programs for Manufactured Homes ...... 38

Table 4 Summary of Secondary Market Criteria for Conforming Mortgages on Manufactured Homes ...... 39

Table 5 Summary of FHA and VA Personal Property Loan Programs...... 42

Table 6 Manufactured Housing Projectswith Exemplary Design or Site Characteristics ...... 44

vi Home Builders’ Guide To Manufactured Housing List of Figures

Figure 1 Percentageof New Conventional Home Salesbelow $100,000, 1982-1998...... 2 Figure2 Annual Shipmentsof SingleSectionandMulti-Section HUD-Code Homes, 198@1998...... 3 Figure3 Multi-Section HUD-Code shareofConventional Startsand Multi-Section Home Sales,1997-1998..,...... ,..4 Figure4 Reported Trends in HUD-Code Land/Home PackageMarket, 1996 ...... 9 Figure 5 ReportedTrendsin HUD-Code Infii Market, 1996...... 10 Figure6 ReportedTrendsin HUD-Code New Community Development,1996...... 12 Figure7 U.S. HUD-Code Manufactured Housing Plant Locations, 1999 ...... *...... 16 Figure 8 State Laws Regulating Local Zoning of Manufactured Housing, 1999 ...... 27 Figure 9 StatesClassifying Manufactured Homes on LeasedLand as Personal Property ...... +...... 40

Home Builders’ Guide To Manufactured Housing vii Introduction

The U.S. home building industry is of- builders have given little thought to using ten described as consisting of a conventional manufactured housing. or “stick-built” sector, that constructs new There is reason to believe the environ­ homes largely or entirely on site, and an in­ ment is changing. The traditional segmented dustrialized or “factory-built” sector that as­ view of the market dates back to the origins sembles homes in a plant, ships them to a of today’s manufactured housing, the travel point of sale or use, and installs them on a trailers and “mobile homes” of previous prepared site. Th ere are several different years, which were designed and sold as light- types of factory-built housing, but by far the weight, self-contained living units that could most common is “HUD-Code” or “manu­ readily be moved from one site to another factured” housing. HUD-Code manufac­ over the highways. These products were uni­ tured homes are so named because since formly viewed as a form of personal prop­ 1976 they have been required to be designed erty, similar to the automobile, not as im­ and constructed to the pre-emptive federal proved real estate. Manufactured Home Construction and Safety Standards, administered by the U.S. Department of Housing and Urban Devel­ opment (HUD). This legally distinguishes manufactured homes from factory-built “modular” homes aswell as site-built homes, both of which are required to meet appli­ cable state and local construction codes. This Guidebook provides information about HUD-Code homes to an audience of site builders and land developers. A com­ The appearances of mobile homes panion Guidebook aimed at HUD-Code evolved and production grew dramatically producers and containing information about through the 1960’s but the basic long rect­ working with site builders and land develop­ angular shape and flat roof line remained. ers is also available from HUD. Additional The industry underwent a regulatory trans- useful background information about the formation in the 1970’s and “mobile homes” site-built, modular and HUD-Code segments became “manufactured housing.” Yet older of the housing industry appears in a 1998 products remain in use even today, and atti­ study, Factory and Site-Built Housing: A Com­ tudes about manufactured housing some- parative Analysis, published by HUD. times reflect images of older trailer courts and mobile home parks where many such Why Should I be Looking at units are placed close together on small Manufactured Homes? pieces of leased land, and owned or rented While both stick-built and manufac­ predominantly by lower-income households. tured homes provide shelter for the own­ ers or occupants, there have historically been extensive differences between these two sec­ tors of the industry in terms of product features, zoning, marketing, financing and the economic structure of production. Market overlap between the two sectors has been considered as minimal due to dissimi­ larities in the underlying products and many 1960’s Mobile Home

lntmduction I Designs and features of both site-built and The pace of change has been even faster manufactured homes have been changing in the HUD-Code sector. In the early 1980’s, over the decades. On the site-built side, eco­ nearly three-quarters of HUD-Code homes nomic and market forces have led new homes consisted of a single section, generally 12 to to become larger, better appointed and more 14 feet in width. Most new units were sited expensive than ever before. At the same time on leased land in a community of similar escalating costs have made it much more dif­ homes. But by 1998 over 60 percent of new ficult, even impossible in some areas, to build HUD-Code homes included two or more on-site for an affordable, entry-level market. sections designed to be joined at the site, Figure 1 shows the trend in the percentage and about 75 percent of new multi-section of new homes priced below $100,000. While homes were located on private land rather much of this decline represents inflation, than in a park. Shipments of single-section particularly during the 1980’s, it also reflects and multi-section HUD-Code units from a tendency for conventional builders who 1980 through 1999 are plotted in Figure 2 once produced starter homes for first-time (1999 shipments are projections based on buyers to target the move+ip, luxury and half-year data). The Figure clearly shows the custom marketplaces rather than concentrat­ substantial growth in multi-section ship­ ing on selling to a less affluent entry-level ments during the 1990’s. market. The shift towards multi-section homes has marked a fundamental transition for manufactured housing. Not only do two sections greatly increase living space, but the resulting structure has the rectangular foot- print and aspect ratio of a modest starter home or tract home of a previous era. At the same time there have been changes in interior finishes, siding, appliances and other products and materials that bring HUD- Code homes closer to what is standard in

Mid-range double-section home with garage the site-built sector.

1990’s multi-section home with site-built garage and roof section

1990 Some other innovations are equally sig Year nificant. Steeper roof pitches are becoming FIGURE 1 available, as well as chassis/floor systems de- Percentage of New Conventional Home Sales below $100,000 signed for perimeter support aswould be pro­ 1982-1998 vided by a site-built basement or crawl space,

2 Introduction rather than on rows of piers under chassis I- beams. The technology has led a few pro­ ducers all the way to two-story HUD-Code units, something that could only be imag­ ined a few years ago. Even as some manufactured homes take on more of the look and feel of some site- built homes, data from the Bureau of the Census indicates that the average HUD- Code unit retails for around $30 per square foot, and the average double-section home - = Multi - = Single 1980 1990 sold for about $52,000 in 1998. These sell­ Year ing prices include the cost of production, -1 manufacturer’s profit, cost of shipping, taxes, FIGURE 2 the retailer’s margin and the basic set-up but Annual Shipments of Single Section and Multi-Section HUD-Code Homes do not include land, site improvements or 1980-1998 the added cost of a permanent foundation or perimeter chassis design. The prices must be interpreted cautiously since they are for average units that would generally require upgrades to be comparable to site-built starter homes, but they are evidence of production cost economies. It is this combination of technical product improvement and low cost of production and distribution that is fuel­ ing growth in sales and presenting new op portunities. Row of Z-story units nearing completion in Orange County, California ily detached housing starts in 1997 and 1.16 million in 1998. Yet the shipment data also shows that the current market environment for HUD-Code homes varies significantly across the United States. Detailed factory shipment data indicates considerable varia­ tion between regions, as well as across states within any given region. Many sources compare total HUD-Code Two-story HUD-Code homes, Howard County, shipments to site-built housing starts, but for Maryland, 1997 purposes of this Guidebook it is more rel­ evant to limit this comparison to multi-sec­ What Does the Market Look Like Now? tion HUD-Code units versus conventional On a national basis, there were a re- homes. This is because the single-section ported 353,377 HUD-Code homes shipped market is far different and has significantly in 1997, (including 204,568 multi-section less overlap with the market for site-built units) and 372,843 shipped in 1998 (includ­ homes. Therefore, the map in Figure 3 shows ing 228,515 multi-section units). For com­ the ratio of multi-section HUD-Code homes parison, there were 1.03 million single-fam­ to total new homes (conventional starts plus

introduction 3 multi-section HUD-Code placements) by ally peaked in 1990 and dropped more than state for the years 1997-98. This ratio ranges 50 percent by 1996 before starting to in- from 1 percent or less in four U.S. states to crease again.

35 percent or more in other states. l The HUD-Code market in the West Coast states and Nevada is more than 90 percent multi-sections. This area has a long history of preferring multi-sections compared to other parts of the country.

l HUD-Code units are a large fraction of total starts in the mountain states, but overall sales are not large because total housing production in those states is of- ten very low. . Southern, South Atlantic and Midwest- ern states show a high penetration of multi-section shipments as a fraction of total housing starts.

l Over half of all HUD-Code shipments to the South Central states were single- FIGURE 3 section units. Multi-Section HUD-Code share of Conventional Starts and Multi-Section l There are very few HUD-Code shipments Home Sales, 1997-1998 to any of the New England states except In areas where multi-section manufac­ for Maine and Vermont. Modular con­ tured housing has a high share, this is good struction is relatively stronger through- evidence of a receptive market from the con­ out this region. sumer demand side. However, the high share might also indicate some level of saturation Who Should Use the Guidebook? as well as the potential for strong competi­ This Guidebook is written as a resource tion from an established HUD-Code retail­ for site builders and builder/developers that ing segment. On the other hand, a low share want to know more about how they may be for multi-section manufactured housing may able to take advantage of manufactured hous­ indicate buyer resistance, zoning and land ing as part of their ongoing business opera­ use impediments, or other causes. While a tions. Different builders inevitably will have low share may be evidence that using manu­ different motivations for investigating a new factured housing is not appropriate or viable strategic direction. The Guide can only sum­ in a given area, it can also be viewed as a marize the kinds of business approaches that sign of potential opportunity and unmet have been or could potentially be used by needs. Each builder must consider the im­ conventional builders interested in substitut­ plications of this statistic in any given mar­ ing a factory-built home for a site-built one. ket environment. While the use of manufactured housing In addition to data in the map, there strikes many home builders as a fundamen+ are several basic generalizations that can be tal change in operations, this is not neces­ made about the HUD-Code segment in dif­ sarily so. Most home building companies ferent parts of the U.S. already rely extensively on subcontractors to *The HUD-Code market has been perform construction work. Substituting growing in practically every state since 1991, factory built units for site-built homes can except in California where shipments actu­ be seen as another step in the same direc-

4 lnrroduction tion, where most aspects of unit construc­ the materials and methods used in site-built tion, code compliance and delivery to the housing construction, as well as the basics site are handled by the manufacturer. The of residential land development, zoning and building company may retain responsibility mortgage finance. Much of the informa­ for building a suitable foundation, on-site in­ tion in the Guidebook revolves around stallation and utilities, finish work, construc­ similarities and differences in these areas that tion of site-built amenities, marketing, con­ are likely to be encountered where manu­ sumer financing and closing of sales, as well factured housing is used in lieu of site-built as local zoning and environmental approv­ construction. The overall focus is on multi- als. Depending on the project, the builder section units installed on permanent foun­ or land developer also mayneed to arrange dations and upgraded with site-built ameni­ for any necessary subdivision development, ties, to be sold as fee-simple properties eli­ utility infrastructure, community facilities gible for conventional mortgage financing. and lot development. Several variations on this approach includ­ Not every firm will be interested in such ing land-lease developments are also ad- a change in their way of doing business. dressed. Some will conclude that obstacles in their Most builders who use the Guidebook market areas, characteristics of their buyers, should continue by reviewing Chapter 2, or essential features in the homes they want which describes alternative ways to use to market are not consistent with substitut­ manufactured homes, discusses product ing manufactured product for site-built hous­ selection and general market positioning, ing. But there is a growing body of experi­ and identifies key issues that arise under each ence showing that with careful planning and alternative relating to product technology, a cooperative manufacturer, HUD-Code zoning, land or site development, and fi­ homes can be an economical alternative to nancing. This information can help the certain types of site-built construction. builder to think about specific projects that The Guidebook presents a comprehen­ might make sense for their housing market sive introduction to the technical, market and target base of customers, and to begin and business issues relevant to the use of considering about the desired product de- manufactured housing. It identifies the key sign features and types of site amenities. questions to be asked and choices to be Once a project concept is tentatively se­ made, and includes various types of infor­ lected, users will want to review the more mation that can be used in developing a detailed materials appearing in Chapters 3, specific business model and evaluating op­ 4,5 and 6 in the context of that project. Of portunities for using manufactured homes. course, not all of the material in those chap Various specific projects illustrating differ­ ters is relevant to every project. Chapter 3 ent ways builders have used manufactured discusses the process of identifying and work­ housing are listed elsewhere in the Guide- ing with a producer to arrive at specifications book, along with references to further in- for HUD-Code units that meet your needs formation about each project. and expectations, and entering into an ap propriate business arrangement. Chapter 4 How Do I Use the Guidebook? covers local zoning and land use issues that The Guidebook is broad and general can make or break any project involving in coverage, designed to be useful to vari­ manufactured homes. Chapter 5 covers site ous types and sizes of building firms. Us­ planning, foundation construction, the ers are assumed to be generally familiar with transportation, delivery, installation and finishingprocesses, and issues relating to site- company. Appendix B has detailed state- built improvements. Chapter 6 reviews the level information on shipments, housing various methods available for consumer fi­ stock and zoning laws relating specifically nancing of manufactured home purchases. to manufactured housing. Appendix C is a list of State Administrative Agencies that participate in the HUD regulatory program on the state level, including contact names and phone numbers. Appendix D is a de­ scription of the types of development crite­ ria applied to land-lease manufactured home communities, and Appendix E lists printed and on-line resources that will be of assis­ tance to you as you get further into the sub­ ject. Building upon a review of the Guide- book, users will be in a position to develop more comprehensive plans for specific project opportunities, and can follow up by working actively with manufacturers, local Other resource materials also appear in officials and others to complete the plans and the Guidebook. Chapter 7 identifies a se­ assesstheir viability and economic potential. ries of selected projects that have used manu­ If the planning shows the project is viable factured homes with innovative designs or then execution of the plan can proceed. in unusual ways, or that otherwise combine Otherwise the user may wish to return to elements of site-built construction with Chapter 2 of the Guidebook, evaluate other manufactured housing. Appendix A gives a available project approaches, and pursue list of specific plants, sorted by state, city and those as appropriate through the Guidebook.

6 introduction Basic Considerations

The potential for expanded use of manu­ may be necessary to preserve or improve factured housing by today’s site builders rests profitability. The principal issues under this largely on the possibility of realizing signifi­ approach are the technical problems of cantly lower production cost, higher margins, achieving product comparability, the financ­ improved market share or some combination ing problems experienced by buyers with of these potential competitive advantages lower incomes and less perfect credit records, through the adoption of a substitute produc­ and availability of suitably zoned land for any tion and supply technology. Other factors expanded sales. that ultimately can contribute to achieving a competitive advantage include shorter cycle- Offer a more desirable product time, less waste at the site, minimizing labor at a similar price supply problems, reduction of the need to Under this approach the existing target find and coordinate subcontractors, shifting market of buyers would be retained and more of warranty responsibility for the factory-built sales could be made based on improved ap unit, and reducing the burden of multiple peal of the product. The buyer market would local code inspections required for site-built also be expanded to include purchasers that units. are attracted to added features or amenities that can be included in the manufactured How Can I Position Myself home without raising the cost above pre-ex­ in the Market? isting levels. Product desirability can be en­ hanced by specifying higher quality products, A simplified framework can provide a appliances and finishes and by providing at- basis for planning and market research. tractive site-built amenities. The profitabil­ Under this framework, there are three alter- ity implications depend on whether per-unit native possible ways a builder can take ad- margins can be preserved or increased. The vantage of manufactured housing technology principal issues under this approach are the within an existing business orientation: technical challenges of producing a more l offer a comparable product at a lower price, desirable product without sacrificing mar- *offer a better product at a similar price, or gins, and availability of suitably zoned land *offer a less desirable product at a signifi­ for any expanded sales. Financing issues are cantly lower price. less important under this approach, since the Each of these approaches to market posi­ target buyer market is not really changing. tioning is discussed in this section. Offer a lessdesirable product Offer a comparable product at a significantly lower price at a lower p-ice This strategy represents a clear shift to- This is a straightforward substitution ap­ wards supplying more basic, affordable hous­ proach, in which the builder’s current target ing particularly suitable for first-time buyers market of buyers would largely be retained, and others whose incomes cannot support but more sales could be made to such buyers the expense of conventional homes. While based on price competition. The buyer mar­ the product will typically be smaller and more ket would also be expanded to some degree economically appointed than other new because lower-incomecustomers at or near homes built today, it will probably resemble the margin of qualification would become entry-level site-built homes that were the eligible purchasers. Dollar margins will drop mainstay of the home building industry for at lower selling prices even if percentage much of the last 50 years. Technical issues margins can be preserved, so growth in sales are the least significant under this approach,

Basic Considerations 7 and financing problems are potentially the own the underlying land, the question re- greatest when doing expanded business with mains: who does? a significantly less affluent buyer group more What Types of Business likely to have sub-par credit and less access Opportunities Are Available? to market-rate mortgage money. Availabil­ ity of suitably zoned land is also a major is- Experience suggests there are several dif­ sue under this approach, because expanded ferent types of business opportunities for sales will be needed to compensate for lower site builders considering the use of manu­ margins on lower-priced product and be- factured homes. The most appropriate op­ portunities depend on factors such as the cause the product characteristics are most builder size, market location, target cus­ likely to trigger community opposition to any required zoning approvals. tomer market and current way of doing business. Guidebook users should review What Other Basic Choices Must I Make? the six approaches listed and discussed in Another basic issue you will face is be- this section to see which, if any, are appli­ tween focusing on selling homes together cable and of interest to them. The list is with the land as fee simple properties, ver­ diverse but not exhaustive; over time addi­ sus selling homes on leased land. Most site tional business models and applications are builders will be far more familiar with fee very likely to develop. simple transactions, and this approach to selling homes can be applied to manufac­ Atxwoach # 1: tured homes. However, experience shows Manufactured that there are clear opportunities for land- Homes on Scattered lease manufactured home community devel­ Rural or Suburban opment as well. This decision has many im­ Sites plications that you should consider. The de­ This approach mographic and economic characteristics of can be used by any potential customers will differ significantly size of building between fee simple and land lease sales, and firm, but is best this may affect your thinking about appro­ suited for smaller priate product design, amenities and mar­ builders that com­ keting. Zoning restrictions are sometimes monly use single less stringent for homes sold as real prop lots. The approach erty while homes on leased land may only is similar to that be permitted in communities zoned for generally used in HUD-Code homes. Conventional mortgage marketing modu­ financing may only be available for fee-simple lar homes. It is transactions, while personal property loans the easiest to implement in those states or with shorter terms, higher interest rates and localities where zoning permits use of manu­ quicker borrower qualification are the norm factured homes on any residential building for homes on leased land. Standards for land lot, but can be used in other areas unless development in a land-lease park can be sig­ prohibited by the zoning. nificantly less stringent than the subdivision The scattered-site approach has seen its development standards with which many widest use in rural areas where ranch-house builders are familiar. Owners of homes on type construction is already common and leased land may pay far less in local taxes zoning restrictions are less stringent. From than owners of homes classified as real prop a practical standpoint, in this type of small erty. And where the home owner does not volume application, the builder has few op-

8 Basic Considerations portunities to negotiate produc customization with the manufacturer out- side whatever range of options is already available from the factory. HUD-Code retailers currently sell sub­ stantial amounts of product onto private land using a related business model, al­ though usually the customer owns the land before buying the home. A 1996 survey reported that this land-home package mar­ ket was increasing in all but two of the 25 states that responded, as shown on the map in Figure 4.

Avvroach #2: FIGURE 4 Reported Trends in HUD-Code Land/Home Package Market, 1996 Manufactured Homes on Urban row lots may require single-section homes. Infill Sites Shipping large floor sections for infill use Urban infill into otherwise crowded urban areas can projects represent a raise uniquely difficult logistical issues. substantial oppor­ Zoning in urban areas may also prohibit tunity for manu­ the use of manufactured housing outside factured housing, of land zoned for rental communities or particularly in parks, so special zoning approvals may be older cities, required. though experience Infill applications are reported to have using HUD-Code been going on over the last two decades on homes in this ap the west coast, but there is much less experi­ plication is relatively limited. Not only are ence in most eastern cities. The Manufac­ public utilities readily available, but the abil­ tured Housing Institute and other organiza­ ity to place and secure a finished unit tions have been collaborating for several years quickly can be especially advantageous in on an “Urban Design Project” with demon­ urban areas where site-built homes face pro- stration homes in five different cities, dis­ longed exposure to theft of materials and cussed in a subsequent Case Study. HUD vandalism. Special financial incentives may has also sponsored research into develop be available for qualifying construction in ment and prototype production of a “Next older cities through the federal HOME pro- Generation” of manufactured home designs, gram or other state or local sources. including single section designs intended for There is a clear need, but there are also urban environments. This work is docu­ special difficulties in this application. One mented in research reports published by of the obstacles to infill projects is that most HUD, and some of the results have been homes in urban environments are on small used in the Urban Design Project. lots and are at least two stories in height. Figure 5 summarizes survey data indicat­ The limited availability of manufactured ing that as of 1996, HUD-Code home usage home designs that will blend gracefully with on infill sites was expanding in 13 of 25 adjoining buildings in urban areas is a ma­ states that responded, and constant in the jor impediment to this type of project. Nar- other 12 states.

Basic Considerations 9 or no savings on land or infrastructure. However, economies in unit construction may still lead to production cost savings, and cycle-time can be reduced. Larger sub- divisions can also justify some design revi­ sions or enhancements at the manufactur­ ing level based on the anticipated volume of production and fill rate. There are variations on this approach where the builder mixes HUD-Code, modu­ lar and/or site-built homes within a single subdivision. This offers more product choice to buyers and potentially expands the mar­ ketability of the subdivision, but presents more logistical issues to the builder similar to those associated with site-built subdivi­ sions in general. FIGURE 5 Reported Trends in HUD-Code Infill Market, 1996 Avvroach #4: Subdivision Development and Annroach #3: Lot Saks Fee Simple One of the Manufactured principal im­ Home pediments to Subdivisions growth in manu­ Some of the factured housing innovative recent is the high cost projects that use of land and scar- manufactured city of suitable homes involve sites. As a re­ entire subdivi­ sult, most sales sions of HUD- in the current HUD-Code market are made Code homes in- to buyers who own their own land, or in stalled on perma­ connection with an available for-rent space nent foundations and sold as fee-simple real in a land-lease community. estate. These projects range from small sub- The approach described here is a pure divisions with a handful of lots to larger land development approach. It provides an subdivisions with shared community facili­ alternative to retailers by offering lots in a ties. Building firms with experience in land development that may have superior appeal development and subdivision planning are to manufactured home purchasers com­ the logical firms to pursue these opportu­ pared to either a leased park site or an un­ nities. developed piece of rural property that hap Lot sizes and densities in a fee-simple pens to be available. It is suited for the land subdivision of manufactured homes ordi­ developer who would ordinarily sell finished narily will be required to be the same as for lots to builders or consumers, particularly site-built homes, meaning there will be little in a market with ample land supply. The

10 Basic Considerations terrain in the development must be suit- ongoing costs of debt service plus land rent, able for manufactured homes, which is but it can greatly reduce the up-front cost somewhat more restrictive than for site-built of down payment, loan origination fees and homes, and the zoning must allow fee other closing costs associated with real prop simple manufactured homes. erty transactions that constitute a substan­ The developer pursuing this approach tial barrier to achieving home ownership. will likely want to record a set of covenants A second advantage of land-lease devel­ that impose technical and aesthetic restric­ opment reflects special development stan­ tions on the types of homes that will be dards that often apply in land-lease com­ allowed in the subdivision, similar to most munities. These include density limits that other subdivisions. Permanent foundations are considerably higher than in fee simple may or may not be required. The main dif­ subdivisions, as well as relaxed infrastruc­ ference compared to other approaches is ture requirements for street widths, unit that under this pure landdevelopment ap setbacks and related facilities. These differ­ preach the responsibility for customer mar­ ences can substantially reduce the per-unit keting, factory orders, installation and fi­ cost of community development. nancing rests with the manufactured home One major downside of the land lease retailer. This means the developer loses the approach is that many potential buyers will opportunity to capture the retailer’s mar- not seriously consider purchasing a home gin as part of the overall business plan. In without also buying the land on which it sits. areas with a competitive retail environment This may reflect concern about rent increases for manufactured homes it may be most over time or opportunities for resale, as well effective to make lots available through as a desire for a more traditional ownership multiple retailers. In other cases it may be arrangement. Another problem is that in better to work more closely with a single some states manufactured homes on leased retailer. land are not eligible for real property mart- gages, because they do not constitute real Avvroach #5: property. In other states this is not a prob­ Development of lem. In addition, this approach requires New Land-Lease “patient capital” since the builder must buy Communities and improve the land but does not sell it. Part of the The long-term returns can be very high, but affordability ad- the builder/developer loses the chance to vantage of manu­ cash out of the property and use the pro­ factured housing ceeds to move on to another deal. reflects the con­ From a design standpoint, land lease tinuing practice communities can range from the subdivi­ of selling homes sion-like “neo-traditional” design found in separate from New Colony Village in Howard County, any interest in Maryland, all the way to a more conven­ land, and plac­ tional mobile home park design and appear­ ing the homes ance. At one extreme the homes would be on leased land. installed on permanent foundations, sited This practice and equipped to resemble site-built homes, does not neces­ and sold together with a transferable long- sarily reduce the term lease. At the other extreme, non-per-

Basic Considerations 11 manent foundations and short-term land is more similar to multifamily properties leases can be used. Many special zoning than to production and sale of site-built issues arise in considering land-lease devel­ homes. opments and approvals can be difficult or impossible to obtain in communities that Avvroach #6: do not relish additional “mobile home Redevelopment or parks.” In effect the site must be zoned (or Expansion of rezoned) for ownership as a single parcel Existing eligible to be used for manufactured homes. Land-Lease Parks The manufactured housing industry Tens of and certain Real Estate Investment Trusts thousands of (REITs) are actively pursuing development land-lease parks of new rental parks on “greenfield” sites. exist around the Producers thereby seek to expand the sup­ United States and millions of homes occupy rental sites in these parks. California alone is reported to have over 4,000 parks. Many ex­ isting parks are older facilities located in the suburban fringes of major metropolitan areas. Ap pearance standards, target customer market and amenities vary widely. Some existing parks may currently be zoned for expansion. While most parks are located in less desir­ able locations, communities also change as -_-__-- they grow, so this is not always the case. PltiUKE 6 Reported Trends in HUD-Code New Community Development There is a slow but steady turnover of 1996 rental sites in most land-lease parks. The high cost of relocating a home usually leads ply of home sites, while the REITs are in­ to houses being sold in place, but some terested in the very attractive long-term re- homes are moved to other sites upon ter­ turns for investors in successful parks. A mination of the land lease. While many map showing reported trends in commu­ park owners engage in retailing within their nity development by state is in Figure 6. own rental communities, others do not. There are additional issues associated The phased redevelopment of existing with the ongoing management of a land-lease land-lease parks offer excellent opportuni­ community that need to be considered. ties for use of new HUD-Code products, These include most of the usual landlord- with the type of product dependent upon tenant considerations, rent controls in some the nature of the park and the surrounding areas, and other regulations unique to the community. The land is, by assumption, operation of manufactured housing parks. zoned for HUD-Code homes so there is In many respects this type of development little or no controversy over land use. Com-

12 Basic Considerations munities that resist permitting new park de­ vestigating manufacturers within the region, velopment might be expected to welcome selecting a specific manufacturer and manu­ park redevelopment. Upgrading the park facturing facility, and negotiating a suitable will support higher rents, particularly if business arrangement addressing a range of there is little competition from affordable issues. If you cannot identify a willing new home or apartment construction in manufacturer and suitable product design, the area. then there obviously can be no project. See You will need to work with the current Chapter 3 for information about identify­ park owner or acquire the property in order ing manufacturers, product specification to pursue this approach. You will also need and business arrangements. to deal with existing tenants and leases dur­ Stev 2: ing the redevelopment process. The oppor­ tunities are greatest for parks located in the Identify Suitable Buitiing Sires fringes of expanding urban areas where new You will need to identify or develop site-built homes are relatively expensive. building sites that are suitable for use with HUD-Code homes. Most single-family lots How Do I Plan For a Project Using will be technically suitable, except those on Manufactured Homes? steep terrain or where access to haul in and Once you have tentatively chosen a basic place the unit is problematic. The usual approach to using manufactured housing development constraints relating to traffic, and identified a site where the project might easements, availability of water and sewer, be located, you can begin looking at the wetlands, storm water runoff and other fed­ specifics in more detail in order to see if eral, state and local environmental regula­ your concept is feasible. A feasibility tions will apply here as for any other single- assessment will help to screen out projects family housing. In addition, it is very im­ with little chance of success before portant to review the local zoning and land substantial resources must be invested in use requirements as they apply to the site, planning or execution. Ultimately you will along with any covenants or deed restric­ need to develop a comprehensive business tions of record, to ensure that manufactured plan for a project of any significant size. The homes are a permissible use or to identify business plan needs to address many things, specific legal restrictions on their use. If including the sequence of activities required HUD-Code units are not permitted by the to bring the project to market. This series zoning then a rezoning, special exception of activities is presented here as four key or variance would be required in order for steps that must be addressed in most cases. the project to proceed. Chapter 4 includes Further chapters cover these topics in more information about zoning and land use regu detail. lations as they apply to manufactured homes on land zoned for residential use. Stev 1:. ldentifr Basic Product Characteristics Step 3: and Select Manufacturer Plan for Foundation Construction, Installation Unless your sole interest is land devel­ and Site-Built Zmprovements opment, you will need to review potential You will need to decide on the type of sources of supply and identify a suitable foundation construction to be used for the HUD-Code product or products that meet home. Several alternatives will usually be your basic requirements. This calls for in­ available, but typical foundations used in

Basic Considerations 13 site-built homes are often not suitable for Stev 4: most HUD-Code units. Most foundation Plan for Marketing and Financing of Sales designs should be engineered for the spe­ You will need to market the units to cific unit design, soil type and local frost consumers, help arrange financing for the depth. Either you or the manufacturer will purchaser and settle the transaction, unless need to arrange for transportation of the you are partnering with a retailer who per- unit from the factory to the building site. forms these functions. In principle, manu­ You will need to have a qualified crew place factured housing can often be financed with the unit on the foundation, connect multi- mortgage instruments similar to those used section units and perform various other for site-built homes. In practice, financing exterior and interior finishing tasks associ­ manufactured homes often differs substan­ ated with installation. A local installation tially from financing site-built homes. Fi­ permit may be required for this purpose. nancing options often depend on whether You will also need to develop designs and the unit is on a permanent foundation and secure required local permits for any site- is classified as real property by state law. built improvements to the unit other than Chapter 6 describes the types of available routine installation work. financing and some considerations relating to different financing alternatives. Examples of work requiring permits would be site-built attached porches, Comvletine a Business Plan garages, fireplaces and other improvements In order to complete a business plan for that attach to or impose loads on the HUD- a specific project, you will also need to do Code unit. Such improvements may need market studies in order to understand the to be designed jointly with or reviewed and size and nature of the HUD-Code market in approved by the manufacturer’s engineer­ the area, and you will ultimately need to es­ ing staff and third-party design approval timate unit selling prices, development costs agency in order to ensure acceptable per­ and other hard and soft costs, along with formance and avoid disputesover warranty absorption rates, in order to develop cash coverage. Chapter 3 covers the design flow projections and estimate the project issues and Chapter 5 covers foundations, return on investment. These tasks are simi­ delivery, installation and site-built improve­ lar in nature to those required for any home ments. building project.

14 Basic Considerations Selecting and Working with a Manufacturer

Everv builder who uses manufactured HUD-Code housing will be dealing with a specific manu­ Name Units Plants Retailers facturer and specific production facility. Selecting the right manufacturer and factory Fleet-wood 65,500 36 1,470 is a critical decision. Individual producers may vary widely in their interest, experience, market orientation and capability for work­ Cavalier 24,400 23 1,000 I ing. with builders rather than through the existing retailer network. Individual facto­ Skyline 17,800 19 1,300 ries will also differ in their production ca­ I pacity, overall utilization, product mix, and technological capabilities. American Homestar 12,300 14 520 I

Who Are the Major Producers? Southern Energy 8,900 9 588 I As of 1999 there are nearly 100 U.S. firms that manufacture HUD-Code homes using a total of over 300 manufacturing fa­ cilities located around the country. Some regions and states have far more production facilities and competing manufacturers than TABLE 1 others. This segment is dominated by a rela­ Publicly Traded Manufactured Home Producers: 1998 Data tively small number of large firms that each operates multiple plants and does business in many states. There are many other manu­ How Do I Find Out My Supply Options? facturers that do only regional or even state- As an interested builder you don’t need level business. to know everything about the industry, but In recent years, four companies ac­ at an early stage you will need to identify counted for more than 50 percent of ship and learn more about all the manufacturers ments and 10 companies accounted for and the production facilities located within about 70 percent. A total of twelve manu­ a reasonable shipping distance of your tar- facturers are publicly traded, accounting for get market. The more firms and plants that nearly 270,000 units in 1998 as shown at the meet this criteria the more they are likely to right. Considerable business and financial compete for your business, and the more op­ information about these publicly held firms portunities you will have to work out prod­ is available in annual reports to sharehold­ uct designs and business arrangements that ers or filings to the Securities and Exchange are acceptable to both of you. Commission. Many of the largest compa­ The map in Figure 7 shows the approxi­ nies also have subsidiaries that handle financ­ mate locations of HUD-Code production ing and insurance, and there is a growing facilities around the United States as of late trend towards selling homes through com­ 1999. Individual plants are marked with pany-owned retailers. The Internet web sites stars. Most plants tend to be located in ru­ of most firms list plant locations, retail out- ral areas with good access to major transpor­ lets and contact names. Additional infor­ tation routes. Areas where many production mation is available from the Manufactured facilities are concentrated are shown in Fig­ Housing Institute (MHI) and state-level MHI ure 7 as ovals (e.g., northern Indiana, north- affiliates. See Appendix E for various types west Alabama and southern Georgia), along of contact information. with an approximate count of plants in the

Selecting and Working with a Manufacturer 15 area. Fully 80 percent of all plants are lo­ didate sources of supply. Appendix A lists cated in the oval regions shown on the map. production facilities shown on the map, Builders near such areas will have many al­ sorted by state, city and manufacturer name. ternative sources of product. There are also You can use the list in conjunction with the large areas with few or no manufacturing fa­ map to track down more information about cilities, particularly in some of the western plants within a reasonable distance of the states. There are no plants in Alaska or Ha­ market where you operate. Note that some waii but there are several in Canada and one of the facilities shown in the map or listed in Mexico. in the Appendix may include multiple pro­ Ultimately you will need to do some in­ duction lines at one address, others only pro­ vestigation to identify names and addresses duce single-section units; others produce of producers and factories that are your can­ both modular and HUD-Code homes, and

FIGURE 7 U.S. HUD-Code Manufactured Housing Plant Locations, 1999

production facilities are periodically added tional complications in the form of vari­ or shut down so the map will change over able wide load permit requirements and time. maximum widths and heights as well as es­ Even with good highways, a reasonable cort requirements by state. Shipping con­ shipping distance would probably not extend straints are typically greater in the eastern much beyond 250 miles except in some of and northeastern U.S. than in the western the Western states. For maximum efficiency states, largely a reflection of the age of high- in transportation the plant would be located way infrastructure. relatively close to the building site. Longer While your investigation logically should shipments add transportation cost in the start with the companies and manufactur­ range of $3 - $4 p er mile per floor section. ing plants located nearest to you, it probably Shipments that cross state lines face addi­ should not stop there. You should plan to

16 Selecting and Working with a Manufacturer check out all the companies producing manufacturers move towards greater verti­ HUD-Code homes in the area. A more dis­ cal integration. Working with a company- tant production facility operated by a differ­ owned retail outlet may prove more effi­ ent company may have more excess capacity, cient for builder and manufacturer alike. or greater technological ability to produce And regardless who owns them, retailers the kind of home you want to use. Distant not only have established factory contacts, manufacturers may be willing to absorb the they work regularly with local installers and excess freight charges in order to get your possibly with foundation contractors to business. You should ultimately plan to take address issues that you will also face. Many . time to visit one or more factories where you retailers are looking for land to use in land- can observe the production process, take home deals or may be willing to market note of the types of materials being used, talk homes into a subdivision you develop. to the engineering staff and find out about Retailers also are experts in traditional con­ locations of completed homes you can look sumer financing of manufactured homes, at. This will help you make more intelligent which may or may not play a part in your decisions and prepare you to work closely business strategy. with the plant as your homes are produced. Note that if you choose to deal directly Some firms may refer your inquiries to with the manufacturer, your firm may be clas­ company-owned retail outlets or indepen sified as a retailer by the state and may there- dent retailers. Keep in mind that most pro­ fore be subject to requirements for licensure, ducers have historically relied extensively on certification or bonding. More information third-party retail outlets to sell their homes, about this can be obtained through the State and may have little experience working di­ Administrative Agencies or other contacts rectly with builders or may be reluctant to listed in Appendix C. enter into direct sales that could alienate their retailing partners. You may need to What Are My Choices For Design? keep trying to find the right producer. Once you have identified candidate Whether or not you choose to involve a manufacturers, you need to define the kind retailer as part of your business plan, you will of product that interests you and approach probably want to research the retailer mar­ the manufacturers to see what they can pro- ket in your area. Retailers have historically vide. Some builders may do this through a played a critical role in marketing, ordering, formalized “request for proposals” process, installing, arranging financing for and clos­ in which product specifications are submit­ ing sales of HUD-Code homes, and retail ted to several area manufacturers along with margins typically range between 15 and 25 instructions on submitting bids. Other percent of consumer cost. builders will probably use a less formal ap­ There are clear long-term economic ad- proach, relying on review of the vantages to working directly with the manu­ manufacturer’s specifications and personal facturer, since builders who do so have the contact with the right technical and market­ opportunity to recoup some or all of the ing staff at the plant. margins earned by retailers in exchange for Naturally at this point you will have ideas performing retail functions. But even about the size, style and appearance of home though many builders prefer to work directly as well as the interior finishes and amenities with the factory, some find it advantageous it should contain. Producers will also have to work with local retailers. Keep in mind standard designs and option packages that that most retailers are independents, but a they are set up to manufacture. This kind of growing number are company-owned as information is often included in sales litera­

Sekcting and Working with a Manufacturer 17 ture and selected floor plans may also ap­ and comple&y to unit construction and/ pear on producer web sites. But while the or installation, but could be arranged with factory production process is relatively effi­ most manufacturers. Examples include:

cient, it is not nearly as flexible as site-built l steeper roof pitch construction. The challenge will be to de- l roof overhangs at eaves fine a design that meets your needs and can l gypsum drywall interior finish, or thicker be produced within the constraints of a fac­ drywall tory environment. This process will usually l kitchen and bath upgrades including require some give-and-take in order to suc­ countertops, cabinets and fixtures ceed. Keep in mind that the factory’s will­ l skylights or bay windows ingness to accommodate your particular re- quests will depend in part on the potential l carpeting and flooring upgrades volume of purchases you represent. l interior door styles, heights, widths and The most readily available manufactured hinge hardware used in site-built homes

homes suitable for use by conventional l upgraded wiring for telephone and builders would be double-section units in cable TV a one-story rectangular or nearly rectangu­ You may also want to investigate avail- lar footprint, typically around 28 feet in ability of higher ceilings since many manu­ depth, with a standard I-beam chassis de- factured homes come with 7’-6” standard sign and a roof pitch up to about 3:12. ceiling heights while few site-built homes Exterior walls are typically 2 x 4 and some- have ceilings lower than 8’. A factory-in- times 2 x 6 studs, but interior walls may be stalled fireplace is another possible option. 2 x 3 studs. Walls sometimes use OSB Some builders have arranged for site-in- panels for bracing but may incorporate stalled exterior stucco finishes as an alter- other bracing systems. Floor decks are fre­ native to standard hardboard or vinyl sid­ quently particleboard rather than OSB or ing. Energy-related upgrades such as ther­ plywood as typically used in site-built mally improved windows or high-efficiency homes. Drywall interiors are usually an up HVAC equipment are other possibilities to grade, and where drywall is used it may be consider. less than l/2” in thickness. Roof trusses Naturally, the farther away your “ideal” often use smaller members than found in product is from typical manufactured site-built homes. As a builder you should homes the less likely you will find it advan­ readily understand these differences and will tageous to use HUD-Code product, or the want to review detailed specifications for more closely you and the manufacturer will the unit at an early stage. have to collaborate in order to develop ac­ Most conventional builders would prob­ ceptable product. And the time required ably want or insist on modifications to the for formal approval of complex changes by readily available designs to bring them closer the manufacturer’s third-party design review to the kind of homes they are accustomed agency can rise substantially, along with the to building. Some modifications are obvi­ cost of production, as these features are ous while others are more subtle. It may be added. Builders should identify their gen­ advisable to use an architect, engineer or eral needs and priorities and consider how consultant who has knowledge of manufac­ flexible they can be with regard to these tured housing in working with the manufac­ modifications. They need to listen to and turer to arrive at a final design. work with manufacturers to identify changes Basic Modifications that can be accommodated in the produc­ Several typical modifications add cost tion process.

18 Selecting and Working with a Manufacturer What Kind of Foundation Systems footings to support an I-beam chassis is il­ Can I Use? lustrated here. Various basic design issues arise in con­ nection with foundations, and these issues must be worked out early in your planning. Since it is difficult or impossible to separate the question of foundation type and design from the chassis design, both topics are dis­ cussed in this section. Most HUD-Code homes use a chassis consisting of two steel I-beams running the length of each section, reinforced with per­ pendicular outriggers, to support the home during transport and after installation. The least expensive installations use piers, some- times without buried footings, to support the Permanent foundation with reinforced piers I-beams. A non-structural perimeter enclo­ sure is also provided. Setting a floor directly on a slab should not be considered, as it creates a shallow crawl space that is impossible to enter and repair. However, setting a floor on piers that are set in turn on a slab creates an ex­ cellent and economical foundation, pro­ vided that the crawl space created is insu­ lated and not ventilated to the outside, that the slab is supported below the frost line, and that the slab is poured on a vapor bar­ rier. The proposed International Code al­ lows such unvented crawl spaces, provid­ ing that the equivalent of the required vent area for the crawl space connects to the home rather than the outside. This particular method of installation, like many others, elevates the floor of the home well above grade. Despite the fact that Standard I-beam chassis (single section) traditional homes nearly always had floor levels as much as four to five feet above grade, Permanent foundations are frequently HUD-Code homes are often stigmatized required for zoning approval of fee simple because of their high floors, perhaps because homes, and typically required for FHA or the height is accompanied by economical conventional mortgage financing. HUD vinyl skirting and prefabsteps commonly has published a guide to permanent foun­ used with HUD-Code homes. The tradi­ dations (see the reference in Appendix E) tional height of HUD-Code pier-set homes that illustrates several alternative approaches can be turned to an advantage if the skirt­ to design and identifying systems suitable ing is replaced with an attractive frost wall for use in areas of high wind or seismic ac­ and well-designed stairs are provided. In tivity. One example system using piers on this design, the home’s exterior walls would

Selecting and Working with a Manufacturer 19 be supported on the perimeter walls, while A unit with a standard I-beam chassis the chassis could be supported by ordinary can be installed over a basement by using piers founded at grade level. additional steel beams to carry loads from Designs with a partially buried the I-beams to the basement walls or center crawlspace can also lower the home. This beam. This foundation concept is recognized typically will require concrete or masonry by HUD and illustrated here. One signifi­ perimeter walls that can withstand any lat­ cant drawback is the deep and relatively awk­ eral loads imposed by unbalanced fill. The ward floor system that results above the base­ chassis I-beams and outriggers will also have ment. The basement walls are subject to all to be recessed from all the edges of the unit the same design considerations for thickness by about 10” in order to allow the floor joists and reinforcing as for site-built homes, and to sit on the mud sill. Foundation anchor the steel cross-beams must be engineered to bolt placement must be carefully planned to carry the load. avoid interfering with the floor joists. Many manufacturers address the base­ All of the permanent foundation systems ment issue in a different way. They offer discussed above require multiple rows of sup optional chassis/floor systems that integrate porting piers underneath the home. This is or eliminate the I-beams and are specifically suitable for use with a crawl space, but sup designed for perimeter support. One early porting a HUD-Code home over a usable example is the Lindsay floor system. Other basement space presents additional chal­ lenges. Providing a basement is likely to be a design goal for builders considering use of manufactured homes in large areas of the country where basements are de facto stan­ dard in site-built single-family homes, even if this adds cost and other systems would qualify as permanent foundations. Provid­ ing a home on a basement emphasizes the similarity of HUD-Code and conventional homes in the mind of consumers and the community at large.

Permanent foundation with basement wall and transverse beams

chassis/floor designs use combinations of wood and steel, or may be constructed en­ tirely of wood. The cost to produce the unit is higher, but the overall process may be easier and less expensive than using transverse steel beams to provide a usable basement under- neath a unit with a standard I-beam chassis. Keep in mind that this is an active area of innovation. Some chassis designs are pro­ prietary and not available from all plants. Some other issues you will have to ad- Permanent foundation with reinforced perimeter ualls dress with basement foundations include in-

20 Selecting and Working with a Manufacturer stallation of the basement stairs, and insula­ a garage and roof facade. One of the two tion of the basement wall (assuming the base­ sections of that house is on the right-hand ment is to be conditioned space). These side of the picture, while the approximate items typically will be subject to local code location of the second section is outlined in regulation and approval. black in this photograph. Both the garage You will definitely need to talk to the and the remainder of the roof structure con­ manufacturer about chassis design options necting the garage to the two sections of the and the types of permanent foundations they home are site-built. recommend. Manufacturers are only re­ quired to provide documentation of one in­ stallation method in their owners’ manuals, but most can offer additional foundation design options, including drawings and con­ struction details, that may meet your needs.

What About Site-Built Additions and Improvements? HUD-Code designs that compete in the market with conventional site-built homes, The roof facade changes the street ap even entry-level homes, will often need to pearance of the home markedly, but it only extends back for part of the length of the include site-built garages, porches or decks. You need to decide what kinds of site-built unit. This can be seen in the next photo, showing a double-section home with a very improvements you will plan to offer and dis­ similar design as viewed from a different cuss this with the factory to see how they angle. can help. Of course, while you can build a Identifying and planning for add-ens as free-standing garage without involving the factory at all, an attached garage would be the unit is designed is critical. It ensures that the factory-built unit is not compro­ less expensive and more marketable. But at­ taching a garage risks imposing additional mised by the added construction, facilitates the work, and helps minimize the possibility loads on the HUD-Code unit that it may not of disputes about whether work performed have been designed for. The cost of an at­ on site invalidated the manufacturer’s war­ tached garage would also be minimized if the ranty. Your designer will need to work with unit is delivered with drywall on the outside of an end wall that serves as one wall of the garage; the other three garage walls and the roof can be built on site. It is also possible to include floor framing for a deck or porch that is to be finished after the unit is placed, and the manufacturer can ship matching roofing and siding with the unit. Some types of site-built improvements will be relatively straightforward to design and construct. At the other extreme are elaborate systems that are more expensive the plant engineer to develop these options. and change the look of the home substan­ Ultimately you may need drawings with an tially. For example, one of the homes shown engineer’s stamp showing how the site-built in Chapter 1 is a double-section home with elements are to be constructed, attached and

Selecting and Working with n Manufacturer 21 supported in order to receive regulatory ap­ some of the potential cost advantages. provals. Of course you will also need to While this is an active area of interest and balance the cost of add-ons against your two-story HUD-Code homes have been pro­ pricing targets for the project. duced both in “stackable” and vertically From a regulatory standpoint, there are oriented modules, such products are only two ways to deal with improvements con­ available from a few leading edge manufac­ structed at the site and attached to the home. turing facilities at this time. Builders who In some circumstances it may be possible to have used two-story product have relied on have the work included as part of the HUD specialized architectural and/or engineering approval for the unit under what is known consultants working on their behalf with as an “Alternative Construction” (AC) let­ the producer’s engineering staff, and have ter. This letter grants permission for a unit also had to work closely with local code to leave the factory without being in full com­ authorities to address items not covered in pliance with the HUD-Code. It can cover the HUD-Code. some kinds of finishing work at the site while Limited experience to date indicates preserving the pre-emptive effect of the that square foot costs of two-story units HUD-Code. You will have to work closely tend to be much higher than for other with the factory if site improvements are to HUD-Code homes due to factors such as be covered under an AC letter. The second complexities in production and low levels way, which is probably more common, is to of output, so applications to date have been seek some form of alteration permit cover­ limited to small-sized lots where adding a ing the work from state or local government. story may be the only practical way to add This may require engineering review by the square footage. Of course other plants may state, which may bring the manufacturer and set up for this purpose and two-story de- its regulators into the picture. It does not signs may become more widely available in require HUD approval or an AC letter, but the future, but thus far unique design, pro­ it does bring the work within the purview of duction and distribution arrangements be- the state or local inspector. States that have tween individual manufacturers and build­ programs regulating the installation of HUD- ers have been necessary to bring two-story Code units should also have procedures for designs to market. dealing with typical unit improvements per- What Are Important formed on site. Retailers are sometimes re­ Contractual Issues to be Addressed? quired to notify the state if alterations are being performed in connection with instal­ Once you have selected a manufacturer lation. Localities in other states. may also and worked out a satisfactory design you have procedures for this situation. Whether will need to make some kind of business or not this type of work is regulated, you arrangement with the factory. There are should use good practice for design and con­ numerous issues that can be and often struction of any elements built on site. should be covered in an agreement between your firm and the manufacturer. The What About Two-Story Units? appropriate degree of detail depends in part If a builder considers designs with two on the volume of production called for in stories above grade to be essential for the your plans. target market then HUD-Code homes prob­ Some of the more important topics to ably are not yet the answer, at least not un­ be addressed as part of a contract include:

less the builder is willing to work exten­ l What home designs or models, with sively with the manufacturer and sacrifice what specifications, are covered by the agree-

22 Selecting and Working with n Manufacturer ment? What factory will produce them? Will the manufacturer agree not to sell What project will they be located in? homes to other projects in the area?

l What is the factory pricing for the mod­ l What are the terms of the els and for factory options? Can this pric­ manufacturer’s warranty on the home, and ing be changed over the course of the agree­ how will the builder relate to the manufac­ ment, and, if so, when and how can it turer with respect to warranty claims? change? Which warranty items are pass-throughs!

l What quantities of what materials (sid­ Does the manufacturer offer an extended ing, roofing, carpeting, flooring, paint, etc.) warranty? will be shipped loose with the unit? l Can the manufacturer provide a fur­

l Will the manufacturer provide or ap­ nished model home for use in the project? prove engineered drawings for permanent l What happens when the manufacturer foundations and site-built improvements? changes specifications for products, mate-

l What is the procedure for placing and rials, fixtures, appliances etc. in the home confirming an order with the plant? When over time, so that newly produced units and how can the order be modified once it differ from the model homes being used to is placed? sell the units? How can the manufacturer . What production times will the manu­ keep the builder informed and how can facturer commit to once an order is received? both parties avoid frustrating legitimate

l What are the terms of payment for a buyer expectations as the product evolves? home that is ordered and produced? Is a l What kinds of rebates, promotional deposit required at the time of ordering? allowances, cooperative advertising, market­ What form of funds are acceptable for ing materials or other assistance will the payment? manufacturer make available to the builder,

l Who is responsible for any state or and on what conditions? Will the manu­ local sales tax on the home? facturer quote “net” pricing rather than

l How many units will the builder com­ participation in rebates? mit to purchase over what period of time? l How will the parties represent their What happens if sales are lower than working relationship to home buyers or specified? others? l Who owns the designs of models that l When does the agreement expire, what are jointly developed? Under what terms is the procedure for early termination, and can the manufacturer sell them to other what are the penalties for the terminating builders? Under what terms can the builder party? How will disputes be resolved? use them with other manufacturers?

l Once a home is ordered, produced and These are obviously not the only issues, available for shipment, how soon must the and there is no “right” or “wrong” form of builder be prepared to accept delivery? contract or set of provisions. The ultimate

l Who arranges or contracts for transpor­ contents of an agreement will depend on the tation, pays freight, and bears the risk of needs, wants and bargaining power of both loss or damage in transit? parties. It is important, however, that the

l Will the manufacturer provide instal­ contract be legally enforceable, and it is lation? If not, will the manufacturer train highly recommended that your legal coun­ the builder’s crews in proper installation sel play an active role in drafting the con- procedures? tract or reviewing its provisions to help make

l Will the builder agree not to sell homes sure you understand them and they meet from other manufacturers into the project? your needs.

Selecting and Working with a Manufacturer 23 Zoning and Land-use Regulation

Local zoning regulations play a critical the opportunities for using HUD-Code part in planning for the use of manufactured homes in some cases. There can be signifi­ housing. You may have a site, a market, a cant variation from one state to another, but house design and even a business plan, but there are often common features and re­ the bottom line is that without zoning ap gional patterns in the applicable systems as provals, you have no project. While home well. These systems also have evolved over builders are generally familiar with the zon­ time as new state laws are passed, and as cases ing and land use planning systems in juris­ in the state and federal courts have occasion- dictions where they do business, the local ally set boundaries on the range of require­ system must also be reviewed and understood ments or prohibitions that can legally be en- specifically as it relates to the use of manu­ forced by local authorities. This evolution factured housing. This should take place will inevitably continue into the future. very early in the planning of any project in­ Many states and localities have a long volving manufactured housing. tradition of limiting the placement of mo­ It is very important to recognize that bile homes and manufactured housing to HUD-Code homes are usually not a solution designated areas, dating back to require­ for a tight market in land and building lots, ments from the 1930’s that all travel trailers or for land use controls that generally restrict and mobile homes be located in trailer courts opportunities for new home construction. or mobile home parks. The effect was to In fact, in many cases manufactured homes rule out the opportunity to place individual will face land use restrictions going beyond units on land zoned for general residential those applying to conventional site-built or development, or in some cases even on agri­ modular homes. These restrictions may pre­ cultural or other rural land. At the same clude the use of single-section homes or time it was often difficult to have land re- homes not on permanent foundations, and zoned for use as a multi-unit park or land- may impose size and aesthetic requirements lease community, and some communities that need to be planned for. passed rules effectively prohibiting park de­ velopment. Although these approaches to How Does Zoning Work for regulation were frequently challenged and Manufactured Housing? occasionally struck down as violative of sub­ Zoning requirements generally flow stantive due process or for other reasons, from the police power of the state to pre most courts upheld such laws as rationally mote public health, safety and welfare related to various legitimate public purposes through the regulation of all types of land such as preservation of property values, spe­ use. They are written and enforced at the cial health and safety concerns and risks, and local level (city, county, township, munici­ the need for orderly provision of public ser­ pality, borough, parish, etc.), usually under vices to a population that was widely per­ state enabling legislation or state constitu­ ceived as more transient than other commu­ tional authority. nity residents. Manufactured housing and the mobile homes that preceded them have historically What Are the Recent Trends in Zoning been classified as a separate type of land use, Manufactured Homes? distinct from other single-family housing, The restrictive approach to zoning has and the treatment of such units under local been legislatively reconsidered in many places zoning systems has often proven more restric­ with the advent and increasing production tive than the treatment of site-built homes. of multi-section homes and the imposition While this is changing, it continues to limit of improved construction standards through

Zoning and Land-use Regulation 25 the HUD-Code. The result has been a trend tured homes unless they comply with the in the 1980’s and 1990’s for states to limit local building code. the authority of local governments either to There have been only a few zoning cases exclude all manufactured housing, or to con- focused on pre-emption under the HUD- fine all such homes to designated parks Code. No cases have reached the U.S. Su­ through zoning. Some amended state zon­ preme Court. Lower federal courts have re- ing laws require that manufactured housing lied on pre-emption to strike down local meeting certain appearance, size, installation Florida and Colorado requirements that ex­ and/or age criteria be permitted in most or cluded HUD-Code homes unless they met all single family districts. Others specifically the Standard Building Code, or the Uniform recognize and regulate manufactured hous­ Building Code. Other federal caseshave up- ing subdivisions or overlay districts as a new held local zoning requirements for a mini- type of use subject to unit and development mum 4: 12 roof pitch, and for residential-type criteria that may differ from other single-fam­ siding and roofing on manufactured homes, ily housing. These changes have opened the as aesthetic requirements that were not pre­ door to broader use of manufactured hous­ empted by the HUD-Code. In addition, the ing outside of traditional parks or land-lease federal preemption was held not to invali­ communities and thereby expanded poten­ date a Texas city’s prohibition of all manu­ tial markets. factured homes from areas other than mo­ bile home parks.

What About Restrictive Covenants? Recorded covenants or deed restrictions may also restrict or rule out the use of manu­ factured housing on vacant residential lots in existing subdivisions, or sometimes else- where. Many of the newer state laws that limit exclusion through local zoning include language stating that the creation and en­ forcement of valid covenants running with the land is not prohibited. However, there are exceptions such as California where such covenants may not be enforceable. In addi­ tion, where the language in a particular re­ TABLE 2 strictive covenant is unclear or ambiguous, a States Adopting Revised Zoning Standards for Manufactured Housing 1987-1999 court may construe it not to apply in a spe­ cific case. How Does the HUD-Code Impact Local Zoning Rules? How Do Different State Laws Regulate While the construction and safety stan­ the Zoning of Manufactured Homes? dards in the HUD-Code specifically pre-empt Any builder who is considering the use inconsistent local standards or the applica­ of manufactured housing should investigate tion of local building codes, they do not ad- and understand the applicable zoning and dress zoning or pre-empt local systems of land land-use requirements in the jurisdiction use regulation, except to the extent that the where the project is located. You are prob­ zoning criteria specifically exclude manufac­ ably familiar with the local office in charge

26 Zoning and Land-useRegulation of zoning in the area where you build, the United States as it relates to siting manu­ which should be able to provide you with factured homes in areas zoned for residen­ the relevant law or ordinance and any regu­ tial construction. Appendix B presents lations. But you may be less familiar with more details on individual state laws as of the state law environment under which lo­ mid-1999. Some prominent or significant cal systems are created and to which they cases from the state and federal courts are must conform. The map that follows gives listed in the Appendix as well. an overview of the legal environment across

FIGURE 8 State Laws Regulating Local Zoning of Manufactured Housing 1999

The various classifications in the map repre­ apply to all single-family housing in the sent different approaches to and degrees of same zoning district. inclusion. l A third category of state law prohibits

l The most inclusionary statutes state jurisdiction-wide bans on manufactured that manufactured housing can be installed housing, but leaves flexibility to designate as a matter of right on land zoned for single- specific areas within each jurisdiction where family homes, often reciting particular manufactured homes will be permitted and requirements for unit width or minimum fashion criteria for application to manufac­ number of sections, permanent foundation, tured housing which need not apply to all roof pitch, age or date of manufacture, etc. homes. l A second and very similar approach is l A fourth category of state law prohib­ to prohibit exclusion of certain units (e.g. its exclusion from specified parts of the those over 22 feet wide), or prohibit exclu­ jurisdiction, i.e. agricultural areas (Virginia) sion of manufactured housing generally, or within urban growth boundaries except on the basis of zoning criteria that (Oregon).

Zoning and Lnndwe Regulation 27 l A fifth category offers some level of pro­ defined. Or localities that prohibit mobile cedural protection but does not mandate homes in certain zoning districts, regard- inclusion or equality of treatment. less of date of manufacture, may actually l Finally, there are still many states with- classify multi-section HUD-Code units as out any mandatory or significant state leg­ “modulars” for zoning purposes so the pro­ islation specifically addressing the subject hibition would not apply to a double-sec­ (shown in white). tion home. In addition to state laws, there are a Many states have other statutes and case variety of state and federal court cases that law relating to zoning of land-lease park corn­ have upheld or struck down specific laws munities that are not specifically addressed and thereby help to give some idea about in this discussion or in Appendix B, but the range of options legally available to com­ would need to be considered as part of any munities that implement zoning programs. project requiring the zoning or rezoning of More information at the state level appears land for use as a park or multi-unit develop­ in the maps and annotations of Appendix ment under common ownership. The on- B. Given the rapid pace of change in state going operation of a land-lease community legislation it is important to note that there is also subject to licensing and additional can be significant time lags between adop regulatory requirements in most areas. tion of a new state law and revision of zon­ Finally, remember that information in this ing systems at the local level. If you believe Guide is only a summary and is subject to the local zoning system is inconsistent with change. You are well advised to seek profes­ state law, you may want to raise the matter sional assistance familiar with local practices with the county attorney’s office. in connection with planning and executing specific projects. The foregoing map together with the more detailed information in Appendix B What if I Need a Rezoning? provides a starting point for investigation of Where the current zoning of a parcel a specific project. If you live in a state where you own or are interested in buying does there is no state statute or case law specifi­ not permit use of manufactured homes, you cally addressing zoning of manufactured may want to pursue a rezoning in the same homes, you should probably assume that way you might need to for site-built homes. local zoning systems have broad power to Rezoning of land is both a political issue fashion various prohibitions or require­ and an exercise in proper land use controls. ments specifically directed at manufactured The time and expense of justifying and pre­ housing. Of course this does not mean that senting a case for rezoning or approving a the local systems will actually be highly re­ project for manufactured housing fre­ strictive. The final result will depend on quently are more burdensome than for con­ the specific law that is actually adopted in ventional housing subdivisions, can add a given jurisdiction, the specific project that substantially to cost, and may discourage is proposed to be constructed or zoned, development. You need to take these fac­ and the specific requirements that the courts tors into account as you negotiate the pur­ will uphold. And a situation that seems chase of land or think about timetables for straightforward may turn out to be more any project you are considering. complicated upon close examination. For Builders that find themselves seeking a example, statutes that restrict placement of rezoning to use manufactured homes, par­ mobile homes may turn out to apply only ticularly for subdivision or land-lease com­ to units built before the HUD-Code, de- munity development, need to be prepared pending how the term “mobile home” is to answer the following types of questions:

28 Zoning and Land-use Regulation 9 Will the new housing place a burden on * Although providing affordable housing is a schoolsand pay a proportionate share of educa­ good idea, why provide it in my back yard? tion costs? Preparing to answer these questions, l Will the development Tesult in new traffic whether to staff at the zoning office or to and congestedlocal streetr? elected officials as part of a public hearing, l What will be the impact of the project on is critical. You will need detailed documen­ communiq servicesand will taxes be sufficient to tation about your project plans, which may bear the cost! have to be supplemented by engineering In addition, many of the following issues studies, statistical data and other informa­ relate specifically to manufactured housing tion. You may need to work cooperatively and have a social undertone that make them with surrounding landowners or others in particularly onerous for manufactured the community to address their concerns and housing developments: minimize opposition. The time it takes to l What will be the character of the residents get a staff recommendation for approval of and will they be an asset or harmful to the com­ the project prior to any hearing is well spent. munity? Attempts to secure a rezoning are best l How similar is the look of manufactured pursued with the aid of local experts who housing to site-built housing and will it be com­ know the law and political climate in the patible with local architecture? community as well as the technical issues l What will be the impact of manufactured that must be addressed as part of the housing on surrounding land values? community design.

Zoning and Lmd-use Regulation 29 Installation, Foundations and Siteebuilt Improvements 5

The HUD-Code does not regulate the local code officials based on local require­ installation of manufactured homes at the ments. You should pay close attention to site nor does it specify the how the individual this subject andtake pains to do a proper sections are to be joined and set-up at the job. Installation and set-up of manufac­ site. When the HUD-Code was written, tured homes at the site have been said to almost all placements were single section generate the majority of consumer units, so regulations regarding joining and complaints about manufactured housing. the finishing or customization required at the site were generally non-existent. Home Are There Other Requirements manufacturers are required to provide I Should Know About? installation instructions as part of the Although the HUD-Code pre-empts owner’s manual provided with the home, local regulation of manufactured home and this is a topic you will need to explore structures regarding matters within its in depth with the producer. scope, state and local jurisdictions have authority to regulate development of sites How is Installation Regulated? for new manufactured home communities. State and local building code officials Aside from obtaining proper zoning, devel­ inspect and approve the installation of a opers .and builders will be required to home on a foundation. The manufacturer’s secure the same permits from local, state installation instructions are generally con­ and federal agencies that they require from sidered authoritative for this purpose, conventional builders. although some locations may have adopted All community engineering and archi­ their own standards for installation. Any tectural plans will have to be approved where conflicts between the two sources must be required by local community planning staffs investigated and reconciled in order to and the fire department, before permits for avoid future disputes between manufac­ construction are issued. Many local commu­ turer, builder, installer and purchaser, nities have a tree ordinance that requires a The regulation of installation depends permit before cutting any trees. Permits for to some extent on the type of foundation soil and erosion control may be under the system used. Information about state-level jurisdiction of a local, county, or state installation programs should be available government. from the State Administrative Agencies listed The State Board of Health or a compa­ in Appendix C. These programs usually rable agency will often review the develop focus on homes placed on non-permanent ment plan to see that it conforms to state foundations. About half the states have regulations before issuing a permit. That adopted installation standards and some 28 department, or a State Department of Envi­ states have adopted some kind of program ronmental Regulation (DER), may require for regulating installations of this type. the issuance of a separate permit for the Twenty of these programs include licensing water supply and distribution system. The of installers as well as education and train­ DER may also require permits to meet other ing programs. The degree of enforcement requirements, particularly those relating to is reported to be variable. Nevertheless, you sewer facilities or septic systems. The state should expect the installation to be may also oversee the U.S. Army Corps of En­ inspected, as well as any site-built alterations gineers’ requirements in regard to wetlands. or improvements. The regulation and As with conventional construction, inspection of permanent foundations may homes located within the loo-year flood differ, and will usually be carried out by plain may be required to be installed on

ImtaUutiom, Foundations and Site-built Improvemenu 31 elevated foundations and to comply with Installations on non-permanent founda­ related requirements in communities par­ tions usually occur with manufactured ticipating in the National Flood Insurance homes in land-lease communities and on Program (the vast majority of jurisdictions many owners’ lots in rural areas. Such around the United States). homes are usually financed as personal prop erty with shorter-term chattel mortgages. What Steps Are Involved in Home installations on permanent founda­ Installation of the Home? tions, on the other hand, may be consid­ As previously noted, manufacturers are ered real property eligible for a 3O-year con­ required by the HUD-Code to provide an ventional mortgage. Such homes are found owners manual including installation in­ in fee simple manufactured housing subdi­ structions along with the home, and the visions, on individual lots, or occasionally builder should obviously review the owners in land-lease communities. manual thoroughly. Preparation of the Home Site An illustrated generic guidebook for in­ The home site should be graded as nec­ stallers of manufactured homes, Manufac­ essary to slope away from the footprint of tured Home installation Training Manual, was the home and allow proper drainage. All published by HUD in 1999. That guide cov­ utilities should be in place and ready for con­ ers all aspects of installation on typical pier nection prior to placement. Utility locations foundations, and identifies many areas where should be coordinated with the terminations things can go wrong. It should be reviewed in the manufactured unit. In a land-lease by builders who will be responsible for per- community a pedestal will be provided for forming or plan to contract for installation electrical service and, depending upon the work. Note that if your own crews will be locality, either an electrician or a licensed performing installation work, you may need manufactured home installer will be required to be specifically licensed, certified and/or to connect the home wiring to the pedestal. bonded as a manufactured home installer. Soils in the site should be sufficiently dry The contractor performing installation is and stable to support the weight of the trans- also responsible for providing an “installa­ port vehicle. Sites with steep slopes, unstable tion warranty” to the purchaser that may soils or high groundwater levels will impact cover defects in foundation design or con­ foundation design. struction, the joining of units, the connec­ tion of utilities, and related finishing work. Transportation of the Home Generally speaking, the installation of Procedures for transport of the home manufactured homes proceeds in four basic will differ according to whether the devel­ steps: oper or builder deals directly with the manu­

l preparation of the home site for facturer or purchases homes from a retailer. installation Developers or builders dealing directly with

l transport of the home from the factory to the manufacturer may receive the home the home site F.O.B. from the factory. Generally, when

l set-up of the home on the foundation, the home leaves the factory, ownership will finish work and connection of utilities, pass to the developer or builder, but this is and subject to agreement between the parties. If

l addition of on-site accessories. the unit is financed, proof of ownership in Installation varies depending upon the form of a Manufacturer’s Statement of whether a home is to be installed with non- Origin (MSO) is sent to the lender that fi­ permanent or a permanent foundation. nances the home. If the developer or builder

32 h.mdlations, Foundations and Site-built Jmpnxmnenu buys the home for cash, the MS0 will go The various editions of the CAB0 One and directly to the developer or builder. The Two Family Dwelling Code (now published transporter should specialize in transporta­ by the International Code Council as the tion of manufactured homes. The builder 1998 ICC One and Two Family Dwelling Code) should inspect homes prior to shipment include an appendix chapter with provi­ from the factory, if possible, to ensure that sions covering permanent installations of everything in the home is in accordance with manufactured homes. the sales order. Anchorage provided in a permanent In situations where retailers deal with foundation must be of sufficient rated ca­ developers or builders, retailers or the lend­ pacity to resist uplift or overturning due to ing institutions that finance the retailers’ wind, as well as lateral displacement due to inventory will have assumed ownership of seismic forces. The footing must be of con­ homes after they leave the factory. Develop­ crete, possibly with reinforcing steel, sized ers or builders should make inspections of large enough to avoid soil settlement and not homes before they are transported from re- exceed the soil bearing capacity. The base tail centers to developers or builders’ lots. of the footing must be below the frost line. Retailers will commonly include the cost of The footing must enclose a basement or transportation in retail prices of homes crawl space with a bearing or non-bearing within a fixed distance (e.g., 100 miles) from wall to separate the space beneath the home the retail center. from backfill, vermin, and water. The transporter is generally responsible The supports in a permanent founda­ for providing a “transportation warranty” tion are the points where gravity loads and against damage sustained during transpor­ other forces experienced by the home are tation. transferred through the foundation and to the soil. Single section or muti-section units Home Installation and Set-UD: are usually supported by piers spaced along Permanent Foundations their chassis beams, by exterior longitudinal Foundations that are designed for safety walls, or both. Multi-section units may have and long term performance are considered additional pier supports along continuous permanent. According to the HUD Perma­ marriage walls. Pier spacing is based on the nent Foundation Guide for Manufactured Hous­ weight of the unit, the anticipated loads, the ing: size of the pier and the bearing capacity of Permanent foundations must be constructed the soil, all according to the manufacturer’s of durable materials; i.e., concrete, mortared installation instructions. Marriage walls may masonry, or treated wood - and be site-built. have openings with posts at the ends of each [A permanent foundation] shall have attach­ opening and piers under these post loca­ ment points to an anchor and stabilize the manufactured home to transfer loads, tions. Other permanent foundation designs herein defined, to the underlying soil or are possible, as discussed in Chapter 3. You rock. The permanent foundation shall be should look to the manufacturer to provide structurally developed according to this you with documentation of acceptable types document or be structurally designed by a of permanent foundation systems for any licensed engineer for ... vertical and lateral stability. given unit. Permanent foundations differ from Nonpermanent Foundations other types of foundations for manufactured The majority of manufactured homes homes in that they are engineered for a par­ are installed on foundations classified as ticular house design, according to sitespe­ non-permanent. The most common ap cific wind, seismic, and soil conditions. preach involves placing a series of piers un­

h.dkztions, Foundations and Site-built Improvemenu 33 derneath the chassis I-beams at intervals with the operating procedures established specified by the manufacturer in the instal­ by the producer. In situations where a lation instructions for the unit. Depend­ unique structure or a permanent founda­ ing upon soil conditions or local regula­ tion is to be installed, the manufacturer may tions, the piers will rest on a base of treated provide the builder or its own set-up crew wood, concrete or other durable material. with engineered drawings and an instruc­ The piers themselves consist of two or three tion sheet on how to construct and install 8”~ 8”~ 16” concrete blocks stacked to­ the foundation. If a manufacturer uses its gether. Steel stands preconstructed to vary­ own set-up crew for installation, it can bet­ ing heights are often used in western or ter control the installation and monitor southwestern states. Specially designed steel quality, providing immediate feedback if piers may be necessary in areas subject to something does not go right. Set up can seismic activity. involve attaching roof shingles, eaves, shut­ Steel augurs or some other type of earth ters, siding on end walls, finishing ,drywall anchors are also used in the installation, at the marriage walls, and related work. spaced according to the manufacturer’s in­ In more elaborate installations de- structions, where potential exists for high signed to be similar in appearance to a site- winds. One end of the anchor is screwed built home, the home is shipped with a into the soil, either manually or mechani­ hinged roof, which is put into place at cally. A poured concrete slab can provide a setup. Such roofs with engineered roof base for supports and anchors, but this pro­ trusses hinged in place can produce a roof cedure adds cost. An alternative method is with up to a 9/12 pitch. A hinged roof can to pour a number of round concrete piers, produce a second story room that is about on which the supports will rest. The diam­ half the size of the home footprint. eter and depth of the piers depend on the floor plan and the frost line. At a minimum, What Kinds of Issues Must Installers in areas with a low frost line such piers are Deal With? 18 inches deep. A non-structural skirting is usually installed from the top of the footing Some of the issues that must routinely to the bottom of the external walls to cover be dealt with by the installer include: the supports and enclose the underfloor l sizing footings and piers based on soil area. at the site and other factors . Set-Up at the Site moving each section from the street to the lot and dealing with impediments such Set up at the site includes removing as trees, curbs, overhead wires and soft soils such transportation materials as the hitch, l positioning each section above the taillights, cables, springs, axles and wheels foundation and lowering it into place from the home, positioning the unit in the . exact location, and leveling it for installa­ aligning sections and leveling the floors tion on the piers, which are positioned on after the unit is placed on the foundation their wood or concrete bases. The indi­ . correcting any racking and ensuring vidual sections of a multi-section unit must proper window and door operation be fitted together and secured, and utilities . installing structural connections must be connected between the sections. between the home and the foundation, In accordance with local regulations, either between the floor sections, and at the roof the setup crew or a utility crew may hook ridge up the utilities for service. . installing sealants or gaskets to weath­ The amount of work at the site can vary erproof the connection between sections

34 Imtallatiom, Foundations and Site-built lmpwments * lifting and structural completion of a What About the Construction of tilt-up roof, using a crane if necessary Accessory Features? . ensuring adequate clearance underneath A number of accessory features that can the unit (typically at least 12” below I-beams be put in place during set up add cost along and 18” elsewhere) with consumer appeal. These include un­ . installation of any flues and vent covered or covered porches, decks, bay win­ terminations through the roof dows, garages and roof dormers. A porch as . utility service hookups including gas, large as eight feet can be built in the factory electricity, water, sewer and telephone and shipped as part of a section. Many . crossovers between sections for natural porches and decks, however, continue to be gas supply, HVAC ductwork, electrical site-built. Most manufacturers also indicate supply, water and sewer that it is less expensive to build an attached . installing trim or other finish to cover garage on-site than in a factory, but there is the interior marriage line between sections experience both ways. Some items that can- not be shipped are either panelized in the l patching flooring, carpeting, roofing factory for setup on-site, or are entirely site- and siding between the sections built. Permits must be secured under state . repairing drywall cracks or other or local codes for site-built porches and ga­ incidental damage sustained during rages as well as many other types of work that transportation go beyond basic unit installation. . air conditioner installation. The builder who performs or arranges Major problems arising in installation for the accessory construction must provide that result from problems with the unit as a warranty that covers whatever elements are built in the factory (i.e. inability to achieve a built on site. This complements the warran­ level installation even though the foundation ties provided by the manufacturer and the is level) should ordinarily be handed back to installer. the manufacturer for advice. A factory rep­ Other issues associated with design, con­ resentative may be necessary to correct cer­ struction and approval of accessory elements tain problems. It is important for the are discussed in Chapter 3 on working with installer to avoid taking steps that would the manufacturer, since these activities run void the manufacturer’s warranty without more smoothly and cost less if the builder prior authorization. and manufacturer plan for them in advance.

Zmtalhtions, Fowndations and Site-built lmprowmenu 35 Consumer Financing

Consumer financing for manufactured the more flexible programs available from homes has unique features that distinguish private sources. it from the types of mortgage financing that This chapter begins with a discussion site builders know and understand. The fi­ of real property or real estate financing, nancing procedures for most manufactured since it is expected that most site builders housing sold today are holdovers from the will be drawn towards fee-simple transac­ origin of a manufactured home as a mobile tions for homes that can qualify for mort­ vehicle or trailer. Historically such homes gages. The remainder of the chapter dis­ have been financed as personal property, cusses the personal property financing sys­ with a retail installment loan contract or tem that continues to be widespread in the chattel loan secured by an interest in the manufactured housing sector. financed goods. Increasingly, however, How Does Real Estate Financing Work manufactured homes are being financed for Manufactured Homes? together with land as real property. When a manufactured home is attached The legal distinctions between real prop­ to the underlying land by a permanent erty and personal property represent an foundation, and the home and the land are abstraction inherited from the common law treated as a single real estate package under and further evolved under state law in all state law, they are eligible for financing with 50 states. Real property has traditionally a conventional 30-year real estate mortgage. included land and all that is permanently The market for real estate loans includes affixed to the land. Personal property in­ government programs run by FHA, VA and cludes everything that is subject to owner- RECD (formerly the Farmers Home Admin­ ship but is not real property. Legal rights istration) and applicable to all single family and remedies concerning real property have housing, as well as conventional mortgages traditionally been enforced differently in eligible for purchase and securitization by court than rights and remedies concerning Fannie Mae (formerly the Federal National personal property. Security interests in real Mortgage Association) and the Federal property typically take the form of a mort­ Home Loan Mortgage Corporation (Freddie gage or deed of trust that is enforced Mac). There is also a very active market in through foreclosure. Security interests in asset-backed securities consisting of pools personal property are regulated under the of mortgage loans on manufactured homes. Uniform Commercial Code and are This section discusses the government-run enforced through repossession. Real prop­ programs first, followed by the other mort­ erty is usually taxed differently than personal gage lending options. property as well, and tax revenues may be divided differently between state and local Government Real Prop~ty Financing governments. Manufactured homes that are classified Both government-sponsored and private and owned as real property are eligible for programs are available for personal property mortgage financing under several govern­ financing or real property financing. In ment-run programs. Major features of these reality the government-sponsored programs programs are summarized in Table 4. FHA- are rarely used, and a wide variety of private insured mortgage loans are available to any sector programs dominate financing. How- purchaser under the “Title 2” program, ever, the government programs are discussed while eligibility for VA-guaranteed mortgage at some length in this chapter because they loans is based on military service. RECD are well documented and because their loans are limited to low-income rural pur­ requirements provide insights into many of chasers.

ConsumesFinancing 37 FHA Title 2 VA RECD (Farmers kind of “conventional” mortgage loans that have become standard throughout the site- built sector. This eligibility hinges on two factors: first, the specific criteria for “con- forming” mortgages eligible for purchase by the two largest secondary market makers, Fannie Mae and Freddie Mac (neither orga­ nization purchases personal property loans Home and site. Home Home penanentiy Home and site. must be at least 400 affixed to a site on manufactured homes), and second, the square feet and must owned by the coooi!y with HUD- veteran. willingness of individual lenders to originate such loans with the expectation of resale (just because a loan is theoretically eligible for sale on the secondary market does not require a Same as for other See Sec. 36.4204 Loans may be up to FHA single-family for loan limits; no full appraised lender to make the loan). Builders who an­ insured properties. down payment but value. except 10 see Sec. 36.4312 for percent down ticipate using conventional mortgage loans allowable fees. payment is required in some for customer financing are well advised to confirm the availability of such loans from the local financing institutions they will be dealing with. It is also recommended to confirm that borrowers will be able to ob­ On a site-built On a stte-buitt On a site-built permanent permanent permanent tain private mortgage insurance when re­ foundation foundation. foundation. complying with HUD quired to meet secondary lender criteria. Minimum Property Standards. A Conventional mortgages are relatively continuous perimeter enclosure uncommon on manufactured homes since of suitable material is required. most purchases are still financed with per­ Finished grade below the home sonal property loans, but they may become shall not be below the loo-year more important as a source of market rate floodpialn. loans. A 1996 survey of lenders revealed that 30 percent were currently active in the sec­ ondary market for manufactured home loans in 1996 and, although most still keep their loans, almost half of their loans were sold in the secondary market. Current criteria from Other There are additional Eligibility is limited to The program is criteria for mortgage veterans with loan desianed for low Fannie Mae and Freddie Mac for conform­ loans on existing guaranty entitlement and moderate- manufactured available for use. income buyers. ing loans on manufactured homes are in homes. Pra-HUD- Borrowers must not Code units are not exceed specified Table 5 to your right. More information can eligible. income limits or be able to obtain be obtained from the sellers and servicers credit from other sources. New guides published by each organization. rental housing also can be covered. Conventional lending has proven itself I to be the cornerstone of a healthy site-built TABLE 3 Summary of FHA, VA and RECD housing market, and the criteria set by Real Property Loan Programs Fannie Mae and Freddie Mac are widely for Manufactured Homes observed in the industry. However, the un­ derwriting criteria used by those organiza­ Conventional Mortgage Lending tions are less forgiving of sub-par buyer credit Manufactured homes also can techni­ histories than FHA criteria, or finance com­ cally be eligible for financing with the same pany criteria for personal property loans.

38 Comoner Financing It remains to be seen whether Fannie Mae Topic Fannie Mae Freddie Mac and Freddie Mac will play a significant role in the financing market for manufactured housing. Asset-Backed Securities A large private-sector market has emerged to provide capital for loans on manufactured homes even when the loans Construction Must comply with the HUD-Code do not conform to Fannie Mae or Freddie Standards I I Mac criteria. This begins when institutions specializing in financing manufactured hous­ ing (such as Green Tree Financial, GreenPoint Financial, Associates Housing Fi­ nance, Chase Financial and CIT) originate Classification The land and home must be purchased in a single transaction, must be classified as real property under state law, and must be subjected to a mortgage loans on manufactured homes. recorded mortgage or deed of trust in favor of the lender. The loans are pooled into asset-backed secu­ rities (ABS) that are rated for quality by a Coverage Includes home, land, kitchen and laundry appliances, and carpeting. rating agency and then sold to investors in Cannot include furniture or any type of insurance. I offerings underwritten by Wall Street bra kerage firms. There are various reasons the underlying loans might be deemed noncon­ Standard qualification ratios (28 Standard qualiimtion ratios (26 forming. Some of the loans are for single- percent front-end, 36 percent percent front-end, 36 percent back-end). Appraisals must section homes, while others may involve bor­ address marketability and comparability with other rowers with unusually high debt-to-income manufactured and site-built ratios. Since private mortgage insurance firms have reportedly been reluctant to write coverage on manufactured home loans, mort­ gages with loan-to-value ratios greater than 80 percent but no PM1 may also find their way into ABS pools. Borrowers with low credit scores who would simply not be eli­ gible for conventional mortgages may also find themselves in this market. Mortgages TABLE 4 that are packaged and sold as ABS pools gen­ Summary of Secondary Market Criteria for Conforming Mortgages on Manufactured Homes erally carry an interest rate of about 200 ba­ sis points higher than conforming loans, depending on the quality of the overall pool Can I Use Real Property Financing of loans. in a Land-Lease Community? The ABS market also includes hybrid loans in which land owned by a purchaser is Builders considering the sale of manu­ mortgaged and cross-collateralized as secu­ factured homes on leased land face a poten­ rity for a personal property loan used to buy tially important financing constraint in some a manufactured home. The interest rate on states. Under current rules, in order to be such a loan is usually higher than on a mort­ eligible for an FHA-insured mortgage or a gage covering home and land, but signifi­ conforming conventional mortgage, a manu­ cantly lower than on a personal property factured home on leased land must meet spe­ loan. cific criteria. For this discussion the most

Chnrumer Financing 39 important requirement is that the home This status typically lowers the owner’s tax be technically classified as “real property” burden, but it also severely limits access to or an “improvement” affixed to real prop market-rate mortgage financing of purchases. erty under applicable state or local law. Figure 9, at bottom left, shows states This means FHA or conforming mortgages filled in withblack whenever obtaining FHA cannot be written on manufactured homes or conventional 30-year mortgages for located on leased land in certain states, be- manufactured homes on leased land (i.e., cause the homes can never constitute “real land not owned by the owner of the home) property.” This limitation is enforced by may be difficult because all such homes are requiring a title opinion stating that the taxed or otherwise classified as personal home and land constitute real property as property under state law. The underlying a condition of originating the mortgage. requirement is designed to protect the The financing constraint arises because lender by ensuring that the mortgage is only manufactured homes by their very nature be- applied to real property, regardless of how gin as personal property. They are assembled it is constructed or owned. However, the and owned by the manufacturer who ulti­ effect is to rule out FHA and conventional mately transfers title to a retailer or pur­ mortgages for manufactured homes on chaser, similar to the title to a motor vehicle. leased land in those states. Financing op­ While a few states deem essentially all manu­ tions are thereby limited to personal prop factured homes to be real property, and many erty loans that typically have lower loan other states deem them to be real property ceilings, shorter terms and higher interest or permit a formal conversion or transfor­ rates than real property mortgages. mation to real property once they are per­ manently affixed to land that is owned by What About Personal the home owner, there are also states where Property Financing? manufactured homes on leased land are not Personal property loans have been the permitted to be recognized as real property. mainstay of manufactured housing finance for many years. There are conventional pri­ vate sources as well as publicly sponsored programs that originate personal property loans for purchasing manufactured homes, and the loans frequently are securitized through the ABS sector, sometimes in pools that include mixtures of real property, per­ sonal property and “hybrid” loans. Personal property loans are typically much smaller in amount than mortgage loans, but are quick and easy to originate from the many finance companies that specialize in this sector. Loan amounts are usually calculated from wholesale invoice prices without the need for an appraisal, and a title search is not nec­ essary. Moreover, the loans are readily avail- able to many borrowers with sub-par credit States Classifying Manufactured Homes on Leased Land histories that would rule out a conforming as Personal Property mortgage loan. Since personal property

40 Gmsumer Financing loans are not governed by the federal Real With the increasing popularity of larger Estate Settlement Procedures Act, retailers multi-section manufactured homes, some can and frequently do earn commissions, of which are sold with land, lenders have rebates or other payments on loan origina­ extended the term of some loans to as long tions, credit life insurance, property insur­ as 2.5 years. As such multi-section homes ance, and other services arranged for at the become more elaborate and costly, how- time the loan is closed. ever, they become increasingly difficult to finance with chattel loans because the high Conventional Personal Property Financing interest rates make financing of such homes Most financial institutions and many very expensive or impossible without ex­ states do not ordinarily consider manufac­ ceeding overall limits on size of the loan. tured homes placed on non-permanent foun­ Many retail dealers who sell new manu­ dations or on leased land as real property. factured homes execute installment contracts The absence of a permanent foundation in­ on personal property loans for the lender by dicates they are not legally “attached” to the qualifying the buyer and agreeing to receive land, which may be necessary for an improve­ interest payments for the term of the loan. ment to become a part of the real estate, and About 75 percent of loans for manufactured as previously discussed, state law simply may home financing used this indirect method not provide any way for a home on leased of financing. The lender often has recourse land to be classified as real property. While against the retailer in the event of a borrower Freddie Mac will repurchase loans on homes default. with permanent foundations and long-term The maximum loan amount on a con­ leases not subordinated to any mortgage, so ventional personal property loan is usually long as they are classified as real property, 125 percent of the wholesale invoice price, the fact remains that such homes are most including cost of transportation to the re- often financed as personal property with a tailer and any extras that the retailer might chattel loan. provide such as air conditioning or other Interest rates on personal property appliances. The manufacturer’s certified loans are typically anywhere from three to invoice, in effect, substitutes for an appraisal five percentage points higher than conven­ in a conventional mortgage. Maximum size tional mortgage loans for site-built homes. of the loan depends on the financial insti­ This spread reflects the smaller average size tution. The buyer usually must pay ten per- and higher cost of servicing the individual cent down plus additional expenses not eli­ loans, as well as the likelihood that manu­ gible for financing such as prepaid interest factured homes ordinarily attract lower in- at settlement, taxes, and filing fees. Banks come buyers who are greater credit risks. will also finance installation, up to a limit At the level of the individual consumer of around $1,400 for a single-section home chattel loans are less complicated to process and $3,200 for a multisection home. If the and much quicker to close than conventional cost of installation exceeds this amount, mortgage loans. Credit checks are limited, the retailers may need to absorb it as part no title search is required and there is no of their expenses. deed to record in the land records. Terms are usually 15 years, much shorter than con­ Government Sponsored Personal Property ventional mortgage loans, in keeping with Loan Program.5 the small average value of chattel loans which FHA- and VA-sponsored personal prop­ rarely exceed about $60,000 in face value. erty loans were first initiated for manufac-

Consumer Financing 41 FHA Title I Loan VA Personal Property access to funding for home buyers. The . --- l--.- FHA program (referred to as “Title I”) is generally available, while the VA personal Program Type Insures lender against Guarantees lender against borrower default up to 90 loss up to the lesser of 40 property loan program is limited to eligible percent of loan. e;F;;;bpf the loan or veterans. FHA and VA loans are securitized through bonds issued by the Government National Mortgage Association (Ginnie Mae). Federal programs represent a poten­ tially important source of financing but loans from finance companies or banks are much more common and the government-spon­ sored personal property loans have never become as popular as the FHA and VA mort­

Term of Loan 20 years for home loan 20 years: single-wide gage programs for site-built housing. The 25 years for multi-section home or home/lot home and site 15 years: lot only volume of FHA Title I loans, for example, 15 years for site alone 23 years: double-wide home alone reached a peak of almost 50,000 in 1983, 25 “ears: double-wide then steadily declined to only about 3,000 in 1996. The volume of VA lending is even smaller. The chief reasons cited for this low utilization have been the large administra­

Borrower Eligibility Borrower must be the Borrower must have a tive burden and resulting delays in loan ap­ owner of the home. If the statutory home loan home is realty it must be guaranty entitlement, provals, as well as the difficulty of obtaining vpically based on service I” the U.S. Army, Navy, payment in cases of default. Site builders Marines, Air Force or Coast Guard. who are more experienced with government- backed loans may not be deterred by such obstacles; moreover, the explicit rules and procedures of these government-sponsored loans are said to parallel the proprietary stan­ dard operating procedures of private lend­ ers. Consequently, the procedural require­ compliance with zoning, ments of these loans are explained in more served by water, sewer and roads, and acceptable from a health, safety and detail below. environmental standpoint. Several key features of the HUD FHA Title I insurance program for manufactured home loans and the corresponding VA loan guarantee program are summarized in Table 6 below, as applicable to loans for new TABLE 5 homes. Builder/developers interested in Summary of FHA and VA Personal Property Loan Programs using the FHA Title I program can get more information from HUD-approved Title I tured housing in the early 1970’s. Like other lenders or the FHA Title I staff at HUD. federal mortgage programs, the idea is to More information about regulations for the reduce the risk to lenders through insure VA program is available from VA lenders or ante or a guarantee, and thereby expand the VA staff.

42 Consumer Financing Example Projects

The next Table summarizes information about fourteen different example projects around the United States, each of which in­ volves the innovative use of manufactured homes. Each row entry in the Table presents the following information documenting a specific project in a standardized format, dis­ played at right. A key to the references appears at the end of the Table.

Example Projects 43 44 Example Projects List of HUD-Code Manufacturing Facilities by State and City, 1999 A

Alabama Colorado Cavalier Homes Addison AL Chamuion/Summit Southern Energy Homes Addison AL Cres; Homes Berthoud co Southern Lifestyle Golden West Homes Fort Morgan CO Homes, Inc. Addison AL Crimson Homes Bear Creek AL Delaware Chandeleur Homes Boaz AL PawneeHomes, Inc. Greenwood DE Homes of Legend, Inc. Boaz AL Brilliant Homes Brilliant AL Florida Southern Homes Co. Double Springs AL Fleetwood Homes of FL Auburndale FL db Autumn Homes, Inc. Douglas AL ‘*Homes of Merit of FL Bartow FL Redman Homes, Inc. Eastaboga AL Nobility Homes, Inc. Belleview FL Brilliant/Carriage Homes Guin AL Homes of Merit of FL Lake City FL Champion/Advantage Guin AL Chariot Eagle, Inc. Ocala FL Champion/Gateway Guin AL Liberty Homes, Inc. Ocala FL Indes House, Inc. Hackleburg AL Nobility Homes, Inc. Ocala FL River Birch Homes, Inc. Hackleburg AL Skyline Corp. Ocala FL Crimson Industries, Inc. Haleyville AL Palm Harbor Homes, Inc. Plant City FL RiverchaseHomes Haleyville AL Redman Homes, Inc. Plant City FL Buccaneer Homes of AL Hamilton AL Jacobsen Homes Safety Harbor FL Libertymaverlee Homes, Inc. Hamilton AL Georeia Patriot Homes/Southridge Hamilton AL Sunstate/Peach State Homes Adel GA Brilliant/Silhouette Lynn AL Bellcrest/Adrian Adrian GA Sunshine Homes, Inc. Red Bay AL Fleetwood Homes of GA Alma GA Franklin Homes, Inc. Russellville AL General Manufactured Spiral Industries, Inc. Russellville AL Housing Inc. Baxley GA Pinnacle Homes/Patriot Sulligent AL Fleetwood Homes of GA Broxton GA LibertyjWaverlee Homes Tuscumbia AL Homestead Homes Cordele GA Buccaneer Homes Winfield AL Fleetwood Homes of GA Douglas GA Arkansas Horton Homes Eatonton GA Spirit Homes/Central Conway AR Fleetwood/Valuhomes Fitzgerald GA Arizona Pioneer Housing System, Inc. Fitzgerald GA Palm Harbor Homes, Inc. Boaz AZ Palm Harbor Homes Lagrange GA Schult Homes Buckeye AZ Southland Housing Systems McRae GA Palm Harbor Homes, Inc. Casa Grande AZ Bellcrest Homes Millen GA Redman Homes, Inc. Chandler AZ Destiny Industries Moultrie GA Clayton Homes El Mirage AZ Sweetwater Homes, Inc. Ocilla GA Fleetwood Homes of Fleetwood Homes of GA Pearson GA Arizona Glendale AZ Redman Homes, Inc. Richland GA Cavco Industries, Inc. Goodyear AZ Craftmade Homes Sylvester GA Cavco Industries, Inc. Phoenix AZ Grand Manor Homes Thomasville GA Chariot Eagle West, Inc. Phoenix AZ Clayton Homes/Waycross Palm Harbor Homes, Inc. Tempe AZ Homes Waycross GA California General Manufactured Western/Silvercrest Homes Corona CA Housing Inc. Waycross GA Champion Home Builders Lindsay CA Fleetwood/Spring Hill Willacoochee GA Hallmark-Southwest Corp. Loma Linda CA Golden West/Homes by Idaho Oakwood Perris CA American Homestar Boise ID Fleetwood Homes of CA Riverside CA Nashua Homes of Idaho Boise ID The Karsten Company Sacramento CA Kit Mfg. Co. Caldwell ID Skyline Corp. San Jacinto CA Fleetwood Homes of ID Nampa ID Fleetwood Homes of CA Woodland CA Champion Homes/Tamarack Weiser ID Skyline Corp./Buddy Woodland CA Redman Home Builders Weiser ID Western Homes/Silvercrest Woodland CA

AppendixA 4.5 Indiana Missouri Hi-Tech Housing, Inc. Bristol IN Fuqua Homes, Inc. Boonville MO Skyline Corp./Hillcrest Bristol IN Patriot/Heritage American Sikeston MO Fall Creek Housing Elkhart IN Patriot Homes Elkhart IN MississiDDi Skyline Homes Elkhart Elkhart IN Pinnacle Homes Amory MS Schult Homes Etna Green IN Belmont Homes Belmont MS Fleetwood Homes Garrett IN Spiral Industry, Inc. Burnsville MS Commodore/Brookwood Goshen IN Belmont/Delta Homes Clarksdale MS Skyline Homes Goshen Goshen IN Redman Homes, Inc. Gulfport MS Skyline/Sunset Ridge Homes Howe IN Free State Mobile Homes Laurel MS Dutch Housing Lagrange IN Fleetwood Homes of MS Lexington MS Four SeasonsHousing Middlebury IN American Homestar Vicksburg MS Patriot Homes Middlebury IN Cappaert Manufactured Schult Homes Middlebury IN Housing Vicksburg The New Holly Park Middlebury IN Fairmont Homes, Inc. Nappanee IN North Carolina Shamrock Homes Plymouth IN Palm Harbor/Masterpiece Albemarle NC Champion Home Builders Ridgeville IN Southern Energy Albemarle NC Rochester Homes Rochester IN Gold Medal Homes, Inc. Cherryville NC Patriot Homes/Lincoln Park Shipshewana IN R-Anell Custom Homes Denver NC Commodore Corp. Syracuse IN Clayton Homes, Inc. Henderson NC Liberty Homes, Inc. Syracuse IN Heartland Homes/Am. Redman Homes, Inc. Topeka IN Homestar Henderson NC Hart Housing Group Wakarusa IN Crestline Homes Laurinburg NC Champion Homes Lillington NC Kansas Fleetwood Homes Lumberton NC Skyline Corp. Arkansas City KS Redman Homes, Inc. Maxton NC Skyline Corp. Halstead KS Skyline CorpJHomette Mocksville NC Schult Homes Plainville KS Fleetwood Homes of NC Mooresville NC Liberty Homes Yoder KS Brigadier Homes of NC Nashville NC Clayton/Oxford Homes, Inc. Oxford NC Kentucky Fleetwood Homes of NC Pembroke NC Fleetwood Enterprises Benton KY Homes by Oakwood Pinebluff NC Bluegrass Housing/Champion Flemingsburg KY Clayton/Fisher Homes Richfield NC Homes by Oakwood Richfield NC Louisiana Mansion Homes, Inc. Robbins NC Skyline Corp. Bossier City LA Homes by Oakwood Rockwell NC Pioneer Housing Systems of LA Leesville LA Fleetwood Homes of NC Roxboro NC Redman Homes, Inc. Sanford NC Marvland Palm Harbor/Villa Park East Siler City NC Pawnee Homes Salisbury MD Liberty Homes, Inc. Statesville NC

Maine Nebraska Burlington Homes of Maine Oxford ME Chief/Bonnavilla Aurora NE Oxford Homes Oxford ME Atlantic Homes Central City NE American Homestar/Magnolia Gering NE Michiean Champion Home Builders York NE Dutch Housing, Inc. White Pigeon MI Chief/Bonnavilla York NE

Minnesota New Mexico Friendship Homes of MN Montevideo MN Karsten Company of NM Albuquerque NM The Homark Co. Red Lake Falls MN Cavco Industries of NM Belen NM Schult Homes Redwood Falls MN Highland Manufacturing Co., Inc. Worthington MN

46 Appendix A New York South Dakota Champion Homes/Titan Sangerfield NY Medallion Homes Watertown SD Empire Homes Valatie NY Tennessee Q&j Clayton/Appalachia Homes Andersonville TN Manufactured Housing Clayton Homes/Ardmore Ardmore TN Enterprises Bryan OH Norris, Inc. Bean Station TN Palm Harbor/Villa Park East Sabina OH Fleetwood Homes of TN Gallatin TN Skyline Corp. Sugarcreek OH Champion Homes/Atlantic Henry TN Clayton Homes/Halls Division Knoxville TN Oklahoma Fleetwood Homes Lafayette TN Elliott Homes/Duncan Duncan OK Clayton Homes/Maynardville Maynardville TN Elliott Homes, Inc. Madill OK Giles Industries of Tazewell New Tazewell TN Elliott Mobile Homes Waurika OK Homes by Oaksvood Pulaski TN Clayton Homes/Rutledge Rutledge TN OrePon Clayton Homes/Savannah Savannah TN Golden West Homes Albany OR Fleetwood Homes of TN Westmoreland TN Fuqua Homes, Inc. Bend OR Clayton Homes/White Pine White Pine TN Schult/Marlette Homes Hermiston OR Skyline Corp./Homette McMinnville OR Texas Palm Harbor Homes Millersburg OR Redman Homes Athens TX Homebuilders Northwest, Inc. Salem OR Palm Harbor Homes, Inc. Austin TX Liberty Homes, Inc. Sheridan OR Fleetwood Homes of TX Belton TX Redman Homes, Inc. Silverton OR Signal Homes, Inc. Big Spring TX American Homestar Stayton OR Clayton Homes Bonham TX Fleetwood Homes of OR Woodburn OR Crest Ridge Homes Breckenridge TX Western Homes/Silvercrest Woodburn OR Palm Harbor/Masterpiece Buda TX American Homestar of &Qy&g& Burleson Burleson TX Commodore Corp. Clarion PA Palm Harbor Homes Burleson TX Champion Homes/Atlantic Claysburg PA Redman Homes, Inc. Burleson l-x Fleetwood Homes of PA Elizabethtown PA Homes by Oakwood Ennis lx Redman Homes, Inc. Ephrata PA American Homestar/Oak Skyline Homes, Inc. Ephrata PA Creek Fort Worth TX Castle Housing of PA Knox PA Cavalier Town and Country Fort Worth TX Liberty Homes, Inc. Leola PA Palm Harbor/Masterpiece. Fort Worth TX Skyline Corp./Hillcrest Leola PA Southern Energy Homes of TX Fort Worth l-x Schult/Marlette Homes Lewistown PA Saturn Housing/Schult Gainesville lx Ritz-Craft Corp. Mifflinburg PA Cavalier Town and Country Graham l-x Schult/Crest Homes Milton PA Silver Creek Homes Henrietta TX Commodore/Manorwood Homes by Oakwood Hillsboro TX Homes Pine Grove PA Great Texas Homes Houston TX Pine Grove Mfg. Homes, Inc. Pine Grove PA Homes by Oakwood Killeen TX Astro Mfgr. Shippensville PA American Homestar of Colony Factory Crafted Homes Shippensville PA Lancaster Lancaster l-x New Era Building Systems, Inc. Strattanville PA Cavalier Town and Country Mineral Wells TX Schult Homes, Inc. Navasota TX South Carolina Cavco Industries LLC Seguin l-x Mascot Homes Gramling SC Clayton Homes Sulphur SpringsTX General/Lamar Housing Lamar SC Clayton Homes of Waco TX Waco TX Fleetwood Homes of TX Waco TX Patriot Homes of Texas Waco TX Fleetwood Homes of TX Wichita Falls TX

Appendix A 47 Vireinia Wisconsin Virginia Homes, Inc. Boydton VA Liberty Homes, Inc. Dorchester WI Commodore Corp. Danville VA Skyline Corp./Homette Lancaster WI Fleetwood Homes of VA Rocky Mount VA Canada Vermont Kent Homes Bouctouche NB Skyline Corp. Fair Haven VT Maple Leaf Homes Fredericton NB SRI Homes/Winfield Kelowna BC Washington Moduline/New Horizon Homes Medicine Hat AB Moduline International Chehalis WA Moduline Industries (Canada) Penticton BC Valley Manufactured Prestige Homes Sussex NB Housing, Inc. Sunnyside WA Fleetwood Homes of WA Woodland WA Mexico Rice Manufacturing/B and R Matamoros

48 Appendix A Market Information and Zoning Laws by State

This Appendix gives detailed state-level The third section of each nage identi­ information to assist in performing a mar­ fies some of the important casel&-from the ket assessment and in reviewing the appli­ state courts or federal courts in the region. cable laws that govern local zoning of manu­ The cases included are those that have ei­ factured housing. Data is presented on sepa­ ther upheld or overturned local zoning rules rate pages for different regions of the U.S. against constitutional or statutory challenges. The first section of each page presents The case law is most important where it in­ basic state-level market data for the region terprets the currently applicable statute, as in a table showing (1) the total stock of con­ well as in states where there is no applicable ventional housing and mobile/HUD-Code statute. housing units in the state as of 1990, and (2) This Appendix cannot not be relied on 1998 site-built housing starts, multi-section as the sole source of information about com­ HUD-Code shipments to the state, and munity zoning, since it only deals with state single-section HUD-Code shipments to the law. Individual communities will have their state. own systems for establishing and enforcing The second section of each page gives zoning, and these can vary widely within the relevant language from state law that governs state. The state laws and cases are impor­ local zoning rules for HUD-Code homes, tant because they suggest the general climate with an emphasis on the degree to which within the state, they show the evolution of such homes can be placed on or prohibited the zoning approaches applied to mobile and from land that is specifically zoned for single- manufactured homes, and they set con­ family residential use. Most, but not all, straints on systems that can be legally states have laws of this type. adopted and enforced at the local level.

Appendix B 49 New England States

Market Data: Case Law: MA: Supreme Judicial Court of Massachusetts, Town of STATE Detached Housing Market Activity, Manchesterv. Phillips, 180 N.E. 2d 333 (1962). Town Stock, 1990 1998 I zoning by-law excluding mobile homes from single residence district prohibited a mobile home, whether or not the unit is equipped with wheels or mounted on permanent foundation. NH: Supreme Court ofNew Hampshire, Town ofPl&tw v. N&au, 493 A.2d 1158 (1985). Town zoning ordinance permitting manufactured housing only 1 Maine 376.600 1 54.600 1 720 1 4.700 I 690 I on individually owned lots in residential zones was consistent with state law prohibiting total exclusion from the municipality. New Hampshire 297,600 1 35,300 1 4,600 1 620 1 370 1 u Supreme Court of Rhode Island, Morin v. Zoning Board of Review, 232 A.2d 393 (1967). Former mobile home which was placed on a block founda­ tion, had wheels removed, and was connected to utility services, was not a “trailer” or “mobile home” prohibited by town zoning ordinance.

State Zoning Laws: MAINE: Municipalities shall permit manufactured homes on indi­ vidual lots in a number of locations where single-family dwellings are allowed, subject to the same requirements as single-family dwell­ ings, except that the homes may not be required to be greater than 14 feet in width. Design criteria may include a roof with a pitch of at least 2:12 which is covered with asphalt or fiberglass composition shingles or other materials but not corrugated metal roofing, a per- manent foundation, and residenti&ype exterior siding. Less re- strictive controls shall be permitted. Title 30-A, Sections 4358.1 and 4358.2 (1995).

NEW HAMPSHIRE: Municipalities shall afford reasonable oppor­ tunities for the sitine of manufactured housine and shall not ex- clude such housing completely from the munic\paliry. No zoning ordinance shall prohibit the owner-occupant of a residence dam- aged by fire or other disaster from placing a manufactured home on the lot and residing therein while the residence is being rebuilt but not more than 12 months. Section 674:32 (1983, 1993).

VERMONT: No relevant state zoning statute identified.

MASSACHUSETTS: No zoning ordinance or by-law shall prohibit the owner-occupant of a residence destroyed by fire or other natural holocaust from placing a manufactured home on the site of such residence and residing in such home for up to 12 months while the residence is being rebuilt. Chapter 4OA, Section 3.

CONNECTICUT: A zoning commission shall not adopt regula­ tions imoosine conditions and reauirements on manufactured homes at’least 22 feet wide and built’in accordance with the HUD- Code, or on lots containing such manufactured homes, which are substantially different from requirements imposed on single-family dwellings and lots, and shall not adopt regulations imposing condie tions and requirements on developments to be occupied by manu­ factured homes at least 22 feet wide and built in accordance with the HUD-Code which are substantially different from requirements imposed on multifamily dwellings and lots, cluster developments or planned unit developments. Title 8, Chapter 124, Section 8-2(a) (1988).

RHODE ISLAND: Any time a residential building is rendered un­ inhabitable bv a casualtv such as fire or flood. the owner shall be allowed to temporarily park a mobile and/or manufactured home or homes on the land for use and occupancy for a period up to 12 months, or until the building is rehabilitated and fit for occupancy. Section 45-24-37.

50 Appendix B Middle Atlantic States

Case Law: Market Data:

Supreme Court of New Jersey, Southern Burlington STATE Detached Housing Market Acthrity, County N.A.A.C.P. v. Mt. Laurel Township, 456 A.2d Stock, 1990 1998 390 (1983) [“Mount Laurel II”]. Municipal land use regulations must provide opportunity to meet the municipality’s fair share of the regional need for low and moderate income housing. Absolute bans of mobile homes are no longer permissible on grounds of adverse effect on real estate values. Total exclusion must be justified by the same doe trines that would justify total exclusion of apart­ ments, townhouses or single-family residences. Subjective sensibilities of present residents are not a sufficient basis for total exclusion of manufac­ tured housing. TOTAL 7,208,700 1 487,700 1 65,900 1 7,520 1 3,530 Superior Court of New Jersey, Chancery Division, Cumberland County, Luczynski, Zoning Official, v. Tempk 497 A.2d 211 (1985). Local zoning ordi­ nance restricting manufactured homes to duly li­ censed parks without considering size, appearance or safety had no reasonable basis under the police power and was therefore unconstitutional. State Zoning Laws: Court of Appeals of New York, Peoplev. Clute, 278 N.Y.S.Zd 231 (1966). A town zoning ordinance PENNSYLVANIA: No relevant state zoning statute identified. requiring trailers to be located in trailer parks pro­ hibited placing a mobile home on a permanent NEW YORK: No relevant state zoning statute identified. foundation in a single-family residence district, and was not unconstitutional. NEW IERSEY: Municipal agencies shall not by regulation exclude Supreme Court of Pennsylvania, Geiger v. Township or restrict manufactured homes not less than 22 feet wide on per­ of North Whitehall 507 A.2d 361 (1986). Discrimi­ manent foundations, on land owned by the home owner, unless nation against a single-section unit, while permit­ those regulations apply equally to all buildings and structures of ting multi-section units, was arbitrary, capricious similar use. Section 40:55D-104 (1983). and unconstitutional. Commonwealth Court of Pennsylvania, Appeal of Shore, 496 A.2d 876 (1985). Township zoning or­ dinance which totally excluded mobile home parks, based on a finding that the Township was not a logical area for development and population growth, was not invalid. PA: Commonwealth Court of Pennsylvania, Borough of Maluem v. Jackson 529 A.2d 96 (1987). Where borq ough zoning ordinance totally excludes mobile home parks the burden is on the borough to estab lish that the prohibition promotes general welfare; need for expensive homes to increase local tax base could not justify excluding mobile home parks.

Appendix B 51 South Atlantic States

Market Data: Case Law:

STATE Detached Housing Market Activity, U.S. Court of Appeals, 11th Circuit: Grant v. County of Stock, 1990 1998 Seminok, 817 F.2d 731 (1987). Florida exclusion of single-section MH upheld. U.S. Court of Appeals, 11th Circuit: Scwlock v. City of Lynn Haven, 858 F.2d 1521 (1988). Florida city building code requirement struck down because preempted by HUD-Code. U.S. Court of Appeals, 11th Circuit: Georgia MHA v. S&ding County, 148 F.3d 1304 (1997). County son­ ing ordinance requiring minimum 4:12 roof pitch for manufactured homes is not preempted by HUD- Code and is not unconstitutional. U.S. District Court, W.D. North Carolina, CMH Mfg. Inc. v. Catawbn County, 994 F.Supp 697 (1998). County zoning ordinance requiring manufactured homes to have residential-type siding and roofing is not pre­ South Carolina 898.600 1 240,700 1 24,400 1 12.810 7,160 1 empted by HUD-Code and is not UnconstiNtional. GA: Supreme Court of Georgia, Cannon v. Coweta County, 389 S.E.Zd 329 (1990). County zoning ordinance excluding manufactured homes from locations other than manufactured home parks held unconstitu­ tional. SC: Supreme Court of South Carolina, Scranton v. Willoughby, 412 S.E.Zd 424 (1991). On a motion for State Zoning Laws: summary judgment, exclusionary ordinance is pre­ sumed valid without evidence to the contrary. DELAWARE: Every owner of a farm of less than 50 acres shall be permitted to have 1 mobile home located on the farm and every m Supreme Court of Appeals of West Virginia, Toum owner of a farm of 50 acres or more shall be permitted to have 2 of Stonewood v. Bell, 270 S.E.2d 787 (1980). Mu­ mobile homes located on said farm, such mobile homes to be used nicipal zoning ordinances restricting placement and inhabited by any persons so permitted by the owner. Title 9, of mobile homes to designated areas within towns Chapter 34, Subchapter 1, Section 313. not shown to be arbitrary, unreasonable or un­ constitutional. MARYLAND: No relevant state zoning statute identified. WEST VIRGINIA: Every municipality shall have power and au­ thority ... to prohibit with or without zoning the location of occu­ pied house trailers or mobile homes in certain residential areas. W.Va.Code Section 8-12-5. VIRGINIA: Localities with zoning ordinances shall permit the place­ ment of manufactured houses with permanent foundations on indi­ vidual lots in all agricultural, horticultural and forest zoning dis­ tricts, subject to development standards equivalent to those for site- built homes in the same district. Section 15.2-2290 (1995). NORTH CAROLINA: Cities may not adopt or enforce zoning regu­ lations which exclude manufactured homes from the entire iurisdic­ tion, but may adopt and enforce appearance and dimensional crite­ ria for manufactured homes. Cities may also designate manufac­ tured home overlay districts within residential districts, consisting of a defined area within which additional requirements or standards are placed upon manufactured homes. G.S. 16OA-383.1 (1987). SOUTH CAROLINA: No relevant state zoning statute identified. GEORG1A: No relevant state zoning statute identified. FLORIDA: Local jurisdictions may review and regulate architec­ tural and aesthetic requirements for mobile homes (including HUD- Code homes), but any such requirements imposed on the mobile home structure itself may pertain only to roofing and siding materi­ als. Local requirements and regulations for HUD-Code manufac­ tured homes must be reasonable, uniformly applied and enforced without distinctions as to whether such housing is manufactured, located in a mobile home park or mobile home subdivision, or built in a conventional manner. Title XXIII, Chapter 320, Section 320.8285(S) (1994).

52 Appendix B East North Central States

Case Law: Market Data:

U.S. Court of Appeals, 7th Circuit: Clark v. County of STATE Detached Housing Market Actlvlty, Winnebago, 817 F.2d 407 (1987). Illinois county Stock, 1990 1990 resquirement that mobile homes not be located I outside mobile home districts is presumed consti­ tutional and was not shown to be so arbitrary as to violate due process under the U.S. constitution. L Supreme Court of Illinois, PeoQle of Village of Cahokia v. Wright, 311 N.E.Zd 153 (1974). Zoning ordinance prohibiting trailers outside trailer parks and allowing trailer parks only in specified districts was not to be shown arbitrary, unreasonable or un­ constitutional. L Illinois Court of Appeals, 5th District: Bach pi. County of St.Ckzir, 576 N.E.Zd 1236 (1991). 14. foot minimum width requirement struck down as arbitrary, capricious and unconstitutional. TOTAL 11,051,2w 666,400 167,000 25,450 11,440 M1: Supreme Court of Michigan: Robimon Township v. Knoll, 302 N.W.Zd 146 (1981). Per se exclu­ sion of all mobile homes from all areas not designated as parks is unconstitutional, but ex­ State Zoning Laws: clusion based on failure to satisfy reasonable standards designed to assure favorable compari­ WISCONSIN: No relevant state zoning StaNte identified. son to site-built housing is permissible. MICHIGAN: Local government ordinances shall not be designed as exclusionary to mobile homes whether located inside or outside of parks, and shall not contain roof configuration standards or spe­ cial use zoning requirements that apply only to, or exclude, mobile homes. Ordinances may include reasonable standards for mobile homes located outside of parks to ensure they compare aesthetically to site-built housing in the same residential zone. Section 125.2307 (1987). OHIO: Counties and zoning boards have no authority to prohibit ot restrict manufactured homes in any district or zone in which a single*family home is permitted, so long as the manufactured home is on a permanent foundation, measures at least 22 feet by 22 feet, has at least 900 square feet of living area, a minimum 3:12 roof pitch, conventional residential siding, a &inch minimum cave over- hang and appropriate guttering, and was manufactured after Janu­ ary 1, 1995. Such manufactured homes may be required to comply with all zoning requirements that ate uniformly imposed on all single- family residences in the district, except requirements specifying mini- mum roofpitch and requirements inconsistent with the HUD-Code. Counties may prohibit mobile homes not complying with the HUD- Code from any residential district or zone. Senate Bill 142, Section 303.212 (1999). INDIANA: Local zoning plans and ordinances may subject manu­ factured homes and other dwelling units to identical standards and requirements including but not limited to setback, yard area, park­ ing, square footage and underfloor space enclosure requirements, but aesthetic requirements for the home under this section are lim­ ited to roofing and siding materials. Standards and requirements may not totally preclude all manufactured homes constructed after January 1, 1981 and exceeding 23 feet in width and 950 square feet of occuoied soace from beine installed as oermanent residences on any lot &I which any other &e of dwell&unit may be placed. 1.C. 36-7-4-1106 (1982). ILLINOIS: No relevant state zoning statute identified.

Appendix B 53 East South Central States

Market Data: Case Law:

STATE Detached Housing Market Activity, MS: Supreme Court of Mississippi: Carpenter v. City of Stock, 1990 1996 Petal, 699 So.2d 928 (1997). Local urohibition of mobile homes in area zoned for a&cultural use overturned, based on denial of due process at vari- ance hearing and unconstitutionality of the under- shipments shipments lying prohibition. m Court of Appeals of Tennessee, Middle Section, at Nashville: TennesseeMHJ v. Metro Nashville (1990). A double-section HUD-Code unit is not a mobile 1 Kentucky 1,011,100 1 165,300 1 16,600 1 5,570 1 6,060 1 home consructed as a single self-contained unit on a single chassis as described in section 13-24-201 of the Tennessee statutes, and therefore cannot be Tennessee 1.357.300 1 166,400 1 30,100 1 6,160 1 6,220 1 excluded from a residential area under Tennessee state law.

State Zoning Laws:

KENTUCKY: No relevant state zoning statute identified. TENNESSEE: Regulation of zoning and land use planning shall not exclude placement of residential dwellings with the same gene era1 appearance as requited for site-built homes on land designated for residential use solely because the dwelling is partially or com­ pletely constructed in a manufacturing facility. This does not apply to mobile homes constructed as a single self-contained unit on a single chassis. Sections 13-24-201 and 13-24202 (1980). MISSISSIPPL Counties and municipalities may adopt and enforce zoning requirements which establish reasonable appearance and di­ mensional criteria for factory manufactured moveable homes so long as the requirements do not have the effect of prohibiting such homes which otherwise meet applicable building code requirements from being lawfully located in at least some part or portion of the county or municipality. Section 17-l-39 (1989).

ALABAMA: No relevant state zoning statute identified.

54 Appendix B West North Central States

Case Law: Market Data:

MO: Supreme Court of Missouri, State ex rel. Wilkerson STATE Detached Housing Market Actlvlty, v. Murray, 471 SW. 2d 460 (1971). Zoning ordi- Stock, 1990 1998 nance prohibiting the occupancy of mobile homes Mobile outside mobile home parks was not clearly arbitrary Multi- Single- home, Single- SFD section section and unreasonable and was not unconstitutional trailer or family houslng HUD-Code HUD-Code under Missouri or U.S. Constirutions. HUD-Code detached starts shipments shipments &Q Supreme Court of North Dakota, Gullickson v. Stark unit County Board of County Commissioners, 474 N.W. 2d 890 (1991). Grant of a variance allowing a single- wide mobile home in a residential subdivision that was zoned to prohibit such structures was arbitrary and unreasonable absent a required showing that the land involved in the variance was uniquely af­ fecred by the ordinance.

North Dakota

State Zoning Laws:

NORTH DAKOTA: No relevanr state zoning statute identified.

MINNESOTA: County and municipal zoning ordinances must not prohibit HUD-Code manufactured homes that also comply with all other applicable zoning requirements. Sections 394.25, sub.3 (1979), and 462.357, sub.1 (1987). SOUTH DAKOTA: No relevant state zoning statute identified.

NEBRASKA: Localities may not adopt or enforce zoning ordinances that prohibit the siting of HUD-Code homes but may set require­ ments for foundation, utilities, setback and square footage and ad­ ditional standards for width, roof pitch, siding and roofing. Lnwg, Cities and counties shall not adopt or enforce requirements mandating width standards greater than 24 feet, roof pitch, or other design standards for manufactured homes built to the HUD-Code. Counries shall not mandate any width standards for single manu­ factured homes built to the HUD-Code and located on agricultural land. Sections 335.30 and 414.28, as amended 1997 KANSAS: Cities and municipalities may not totally exclude manu­ factured homes from the jurisdiction, and may not exclude manu­ factured homes at least 22 feet wide, with a pitched roof and resi­ dential-type siding and roofing, from single-family residential dis­ tricts, but can ser architectural and aestheticstandards for such homes to ensure compatibility with site-built homes. Sections 12-742 and 12-763 (1991, effective January 1, 1992). MISSOURI: No relevant state zoning statute identified.

Appendix B West South Central States

Market Data: Case Law:

STATE Detached Housing Market Activity, j=+& Supreme Court of Louisiana, SummerelI v. Phillips, Stock. 1990 ,998 I 282 So.Zd 450 (1973). Zoning ordinance which created a new type of zoning district for mobile homes but failed to include any objective standards for establishing such districts was unconstitutional. TX: Supreme Court of Texas, City of Brookside Village v. Comeau, 633 S.W.Zd 790 (1982). Regulation of parks and restriction of location of mobile homes to parks are constitutional. U.S. District Court, E.D. Louisiana, Bourgeois v. Parish of.%. Tammany, 628 F.Supp 159 (1986). Ordinance ex­ cluding mobile homes from A-2 residential zones was arbitrary and unreasonable, and therefore was an invalid exercise of the police power. U.S. Court of Appeals, 5th Circuit, TMHA v. City of Nederland, 101 F.3d 1095 (1996). Requirement that all manufactured homes be in parks was not un­ coo~itutional and was not preempted by the HUD- State Zoning Laws: U.S. District Court, S.D. Texas, Houston Division, RvlHA ARKANSAS: No relevant state zoning statute identified. v. City of Ln Porte, 974 F.Supp 602 (1996). Local exclusion of HUD-Code manufactured homes from OKLAHOMA: No relevant state zoning statute identified. certain residential districu is not pre-empted by fed­ eral law and does not violate due process, equal TEXAS: Incorporated cities may permit HUD-Code manufactured protection or the Commerce Clause of the U.S. homes as residential dwellings in areas determined appropriate by Constitution. the ciry, including subdivisions, PUDs, single lots and rental com­ munities. Such cities may prohibit installation of mobile homes (constructed before June 15, 1976) for use or occupancy within their corporate limits. Vernon’s Civil Statutes, Article 5221f, Section 4A (1987). LOUISIANA: No relevant state zoning statute identified.

56 Appendix B Mountain States (Except Nevada)

Case Law: Market Data:

MT: Supreme Court of Montana, Mart? u. Butt&&r STATE Detached Housing Market Activity, Bow Gouemment, 641 P.2d 426 (1982). Remanded Stock. 1990 1999 I for proceeding to determine whether exclusion of mobile homes and mobile home narks was uncon- stitutional. a Colorado Court of Appeals, Division 1, CMHA V. Pueblo County, 857 P.2d 507 (1993). HUD-Code preempts inconsistent local construction and safety standards. U.S. District Court, D.Colorado, CMHA v. Pueblo County, 946 F.Supp 1539 (1996). Local prohibitions of manufactured housing from certain residential arv eas in Salida, CO and Silt, CO unless the units comply with the Uniform Building Code are pre- empted by the HUD-Code. U.S. District Court, D.Colorado, CMHA V. City of Salidaer al., 977 F.Supp 1080 (1997). Local requirements that all manufactured housing in Fountain, CO and Frederick, CO be located in specified districts are not preempted by the HUD-Code, and do not vio- late due process or equal protection.

State Zoning Laws:

IDAHO: Local governments must allow manufactured homes on all land zoned for single-family residential use, but may require the homes be multi-sectional, enclose at least 1,000 square feet, have a foundation enclosed at the perimeter with the home not more than 12 inches above grade, have a minimum roof pitch of 3:12, have residential-type siding and roofing, and have a garage or carport. Section 676509A. effective July 1, 1996. MONTANA: In a proceeding for a permit or variance to allow a manufactured home there is a rebuttable presumption that place­ ment of such a home will not adversely affect property values of conventional housing so long as the manufactured home was built after 1989, is placed on a permanent foundation, includes at least 1,000 square feet, and has a pitched roof, roofing and siding cus­ tomarily used on site-built homes. Sections 76-2-202 and 76-2-302. WYOMING: No relevant state zoning statute identified. m Municipalities and counties may not exclude manufactured homes on permanent foundations from any zone or area in which a single-family residence would be permitted, subject to all local zon­ ing, building code, and subdivision requirements applicable to single- family residences. Sections 10-9-106.5 and 17-27-105.5 (1996). COLORADO: Counties and municipalities must not exclude manu­ factured homes that meet or exceed, on an equivalent performance engineering basis, standards established by the local building code, so long as the homes meet the HUD-Code, are at least 24 feet wide and 36 feet long, are installed on an engineered permanent founda­ tion, and have brick, wood or cosmetically equivalent exterior sid­ ing and a pitched roof. Local requirements may address other re­ quirements for manufactured homes, such as foundations, floor space, unit size, improvements, yards and setbacks, so long as the same requirements apply to other housing in the district. C.R.S. 3@28-115(3) and 31-23.301(5), effective January 1, 1985. ARIZONA: No relevant state zoning statute identified. NEW MEXICO: Manufactured homes may not be excluded from districts where site-built single~family housing is allowed, or subjected to more stringent restrictions, so long as the manufactured home meets the HUD-Code, has a heated area of at least 36 feet by 24 feet and is installed as required by New Mexico law. However such homes may be required to meet requirements other than original construc­ tion requirements applicable to site-built homes in the district, as well as applicable historic or aesthetic standards. N.M.S.A. 3-21A-3 (1987).

Appendix B 57 Pacific Skates and Nevada

Market Data: Case Law:

STATE Detached Houslng Market Activity, WA: Supreme Court of Washington, Duckworth v. City Stock, 1990 1998 of Bonney Lake. 586 P.2d 860 (1978). Zoning code I excluding mobile homes from single-family resi­ dence areas but permitting them in another area was not shown to be arbitrary, invalid or unconsti­ tutional.

Nevada 236,100 ( 69,500 ( 24,400 1,960 I 170 I

Washington 1,272,300 1 167,000 1 29,100 1 6,590 1 260 1

State Zoning Laws:

WASHINGTON: Local prohibitions on siting manufactured homes on individual lots are permitted, subject to a review by the city. State law provides an optional reference to permit manufactured homes if they are built to the HUD-Code, include at least two sections, and have conventional siding and roofing with a minimum 3:lZ roof pitch. R.C.W. 35.63.160 and 35A.63.145 (1988). OREGON: Cities and counties may not by charter prohibit manu­ factured homes from all residential zones, and must permit them within urban growth boundaries on all land zoned for single-family residential use. However, jurisdictions may require manufactured homes outside parks to be multisectional, at least 1000 square feet in size, placed on an enclosed foundation not mote than 12 inches above grade, with a roof pitch not less than 3:12, with compatible siding and roofing and a thermal envelope meeting the state energy m- code for single-family dwellings, and with a garage or carport. O.R.S. 197.307 (1981) and 197.314 (1993). NEVADA: Zoning ordinances must define “single-family” residence to include manufactured homes, and must also require that such homes that will be placed outside a mobile home park park be not more than 5 years old, have siding and roofing compatible with other nearby homes, contain more than one section and at least 1,200 square feet of living area, and have architectural masking of elevated foundations. Counties with populations below 25,000 are permit­ ted to adopt less restrictive standards. Senate Bill 323 (1999) amend­ ing N.R.S. Chapter 278 (1999, effective January 1, 2000). CALIFORNIA: Cities and counties shall allow the installation of manufactured homes meeting the HUD-Code with foundations meeting California requirements on lots zoned for conventional single-family dwellings, subject to the same development standards for setbacks, yards, parking, aesthetics and square footage, and sub­ ject to architectural standards for roof overhang, roofing material and siding material. Manufactured homes mote than 10 years old may be excluded from coverage under this section at the option of the local legislative body. California Health and Safety Code, Sec­ tion 65852.3 (1980).

58 Appendix B State Administrative Agencies

Alabama: Georgia: Mr. Jimmy Sloan, Administrator Mr. Chris Stephens Manufactured Housing Commission Assistant State Fire Marshal 350 South Decatur Street Manufactured Housing Division Montgomery, AL 36104 State Fire Marshal’s Office 334-242-4036 #2 Martin Luther King, Jr. Drive Alaska: none #620 West Tower Atlanta, GA 30334 Arizona: 404-656-3687 Mr. N. Eric Borg, Director Department of Building and Fire Safety AHawaii. none Office of Manufactured Housing Idaho. 99 East Virginia, Suite #lOO Grn Rogers Phoenix, AZ 85004 Division of Building Safety Bureau 602-255-4072 277 North Sixth Street, Suite #lo0 Arkansas: Statehouse Mall Mr. Whit Waller, Director Boise, ID 83702-7720 Arkansas Manufactured Home Commission 208-334-3896 523 South Louisiana Street, Suite 500 AIllinois. none Lafayette Building Indiana: Little Rock, AR 72201 Mr. David Fletcher 501-324-9032 Codes Enforcement Division California: Department of Fire and Building Services Mobile Home Complaints Center Indiana Government Center Department of Housing 402 West Washington Street, Room W-246 and Community Development Indianapolis, IN 462042739 Division of Codes and Standards 317-232-6423 Manufactured Housing Section Iowa: 1800 Third Street, Suite 260 Mr. David Linkletter, State Fire Marshal Sacramento, CA 95814 Iowa State Building Code Bureau 916-323-9801 Department of Public Safety Colorado: 621 East 2nd Street Mr. Tom Hart Des Moines, IA 50309 Director, Housing Division 515-281-5821 Department of Local Affairs AKansas. none 1313 Sherman Street, #323 Kentuckv: Denver, CO 80203 Mr. Charles R. Wiley, Chief 303-866-2033 Manufactured Housing Division Connecticut: none Department of Housing, Building Delaware: none and Construction 1047 U.S. 127 South Building -Florida. Mr. John R. McDonald, Chief Frankfort, KY 40601 Bureau of Mobile Homes and R.V., 502-564-3626 Division of Motor Vehicles Neil Kirkman Building 2900 Apalachee Parkway, Room A-129 Tallahassee, FL 32399-0640 904-488-8600

AppendixC 59 Louisiana: Missouri: Mr. Michael Commarosano Mr. James Phillips, Director Administrative Director. Department of Manufactured Housing, R.V. Manufactured Housing Division and Modular Units State Fire Marshal’s Office Public Service Commission 5150 Florida Boulevard P.O. Box 360 Baton Rouge, LA 70806 Jefferson City, MO 65101 504-925-4911 573-751-7119 Maine: Montana: none Ms. Anne L. Head, Executive Director Nebraska: Manufactured Housing Board Mr. Mark Luttich, Program Manager Department of Professional Housing and Recreational Vehicle Program and Financial Regulation Health and Human Services 35 State House Station Regulations and Licensing Augusta, ME 04333 301 Centennial Mall South 207-624-8603 Lincoln, NE 68509-5007 Massachusetts: none 402471-0518 Maryland: -Nevada- Mr. James Hanna, Director Ms. Renee Diamond, Administrator Department of Housing Department of Business and Industry and Community Development Manufactured Housing Division Maryland Codes Administration 2501 E. Sahara Avenue, Suite 204 100 Community Place Las Vegas, NV 89104 Crownsville, MD 21032-2023 7024864135 410-514-7213 New Hamnshire: none Michipan: New Tersev: Mr. Kevin DeGroat Mr. Paul Sachdeva, Manager Bureau Deputy Director for Manufactured Department of Housing and Development Housing, Bureau of Code Services Corporation, Securities, Land 3131 Princeton Pike - CN 816 Development Bureau Trenton, NJ 08625-0816 6546 Mercantile Way 609-530-8833 Lansing, MI 48911-5911 New Mexico: 517-334-6203 Mr. John Wilson, Director Minnesota: Manufactured Housing Division Mr. Ray Karnuth, Director Regulation and Licensing Department Minnesota Building Codes and Standards 725 St. Michael’s Drive Division Santa Fe, NM 87505 408 Metro Stquare Building 505-827-7070 St. Paul, MN 55101 New York: 612-296-4639 Mr. Arnold Byrd, Administrator Mississippi: Department of State Mr. Millard Mackey, Chief Deputy Code Division, Room 1130 Manufactured Housing Division 41 State Street State Fire Marshall’s Office Albany, NY 12207-2839 455 N. Lamar Street, Room 410 518-474-4073 Jackson, MS 39202 601-354-6900

60 AppendixC North Carolina: South Dakota: Mr. C. Patrick Walker Mr. Dick Bowman, Director Deputy Commissioner Commercial Inspection and Regulation Manufactured Building Division Division Department of Insurance Department of Commerce and Regulations 410 N. Boylan Avenue 118 West Capitol Avenue Raleigh, NC 27603 Pierre, SD 57501-5070 919-733-3901 605.773-3697 North Dakota: none Tennessee: AOhio. none Mr. Tim Garrington Director, Code Enforcement Oklahoma: none State Fire Marshal’s Office Oreeon: 500 James Robertson Parkway, Suite 301 Mr. Albert Andres, Administrator Nashville, TN 37243-1160 Department of Consumer and Business 615-741-7170 Services ATexas Building Codes Division Mr. Hershal E. Blankenship P.O. Box 144700 Director of Manufactured Housing 1535 Edgewater Drive, N.W. TexasDepartment of Housing and Community Salem, OR 97310 Affairs 503-378-5975 507 Sabine Street, 10th Floor Pennsvlvania: Austin, TX 78701-3737 Mr. John F. Boyer, Jr. 512475-3983 Community Development and Housing Office AUtah- Bureau of Housing and Infrastructure Division of Manufactured Housing Mr. George Weiler, Manager Forum Building, #314 Construction Trades Bureau Harrisburg, PA 17120 Division of Occupational and Professional 717-720-7413 Licensing Department of Commerce Rhode Island: 160 E. 300 South Mr. Joseph Cirillo, Commissioner Salt Lake City, UT 84111 Building Code Commission 801-530-6628 Department of Administration One Capitol Hill Vermont: none Providence, RI 02908-5859 Vireinia: 401-222-3033 Mr. Curtis McIver, Associate Director South Carolina: Manufactured Housing Office Mr. Gary Wiggins, Administrator Department of Housing and Department of Labor, Licensing and Regula­ Community Development tion Jackson Center Building Codes and Related Services 501 N. Second Street 110 Centerview Drive, Suite 102 Richmond, VA 23219-1321 P.O. Box 11329 804-371-7160 Columbia, SC 29211-1329 803-896-4600

AppendixC 61 Washineton: Wisconsin: Ms. Pat McLachlan, Program Manager Mr. Gary Ekes Office of Manufactured Housing Program Manager, Manufactured Homes Dept. of Community Trade and Economic Safety and Building Division Development 201 East Washington Avenue 906 Columbia Street, S.W. Madison, WI 53702-0006 Olympia, WA 98504-8300 608-266-9946 360-586-0491 Wvomine: none West Virginia: All Other States: Mr. Steven A. Allred, Commissioner U.S. Department of Housing and West Virginia Division of Labor Urban Development 319 Building Three, Capitol Complex Manufactured Housing and Standards Division Charleston, WV 25305 Room 9152 304-558-7890 451 Seventh Street, S.W. Washington, D.C. 20410-8000 202-708-6423 800-927-2891

62 Appendix C Manufactured Home Community Developments

This Appendix presents general informa­ allow manufactured housing developments tion about community planning and site by right. Most manufactured housing dis­ planning for manufactured housing. Plan­ tricts are intended for land-lease communi­ ning for a manufactured home subdivision, ties or developments that include units that whether it is a land lease community or fee do not meet established standards compat­ simple subdivision, involves placement of ible with site-built residential districts. As homes on individual lots as well as the inte­ noted above, however, a rezoning is often re­ gration of a group of lots into the plan for quired to create a district, which can add a the whole site. The planning will be driven substantial cost to development and may by applicable local development standards actually discourage development. as well as technical considera!tions relating Minimum Size of Development to efficient use of the land. Therefore, in- To permit more flexibility, it is consid­ formation in this Appendix may not apply ered desirable that a low or minimum par­ in any specific case. cel size be allowed for manufactured hous­ The lot plan can be described in terms ing developments. Regulations in more than of lot size, lot width and frontage, lot cover- two-thirds of the surveyed communities per­ age, unit setback and separation, and park­ mitted manufactured home developments ing. On the other hand, the site plan as a smaller than ten acres, or had no require­ whole is more concerned with minimum size ment for minimum size. This may be par­ of development, density, perimeter require­ ticularly advantageous for developers or ments, landscaping, streets, sidewalks, and builders that desire to provide infill devel­ common open space. A relationship exists opment in suburban areas. between characteristics of lots and the site plan. For example, regulations regarding Density minimum lot size influence overall density, Regulations in about half the commu­ while parking regulations on-site can influ­ nities surveyed place a density limit on manu­ ence the nature of parking off-site. factured housing developments. Densities Development Standards in the range of six to eight units per acre Several generalizations dealing specifi­ were common and desirable, but a density cally with development standards can be of eight units per acre was thought to be the based on a survey of a geographic cross-sec­ maximum especially if allowance is made for tion and demographic mix of 20 communi­ the development of common open space. ties, sponsored by the American Planning Those communities not providing a density Association. The survey revealed that a little limit usually required that the density of the more than half of the communities development be consistent with the require­ establisheddevelopment standards that ap ments of the district in which the develop­ ment is located. A density limit of eight units ply only to manufactured housing land-lease communities, leaving fee simple manufac­ per acre may be impossible to achieve if a tured housing subdivisions subject to the larger minimum lot size of 4,500 square feet same subdivision regulations that governed is specified or common open space is re­ site-built housing. Other communities pro­ quired. mulgated two different sets of development Lot Size standards, one for land-lease communities The regulations in most of the surveyed and another for fee simple manufactured communities specified minimum lot sizes, housing subdivisions. in the range of 4,000 to 5,000 square feet, More than half of the surveyed commu­ although a minimum lot size of 3,500 square nities enacted special zoning districts, which feet was appropriate in certain instances.

Appendix D 63 Single section units can be placed on smaller, ishes ifmore street width is available. The narrower lots than multi-sections. Larger lots amount of required setback could vary de- are more suitable for subdivisions since they pending on the type of parking. Almost all are more likely to be permitted in residen­ of the communities prescribe side and rear tial districts with larger homes. yard setbacks. These range from five to ten Lot Width or Frontage feet for side yard setback, while most pro- Regulations in three-quarters of the sur­ vide for a ten-foot rear setback. Some com­ veyed communities prescribe minimum lot munities allow one side yard to be eliminated widths that range from 20 to 85 feet. Most for zero lot line placements of homes. of the communities, however, require a mini- Common Open Spaceand Facilities mum lot width ranging between 40 and 50 Almost three-quarters of the surveyed feet, which iscompatible with minimum lot communities mandate that manufactured sizes between 4,000 and 5,000 square feet. housing developments contain common Lot Coverage open space. Regulations prescribe common Regulations in about a third of the com­ open space requirements either as a share of munities surveyed have adopted maximum net or gross area, or based on an amount of lot-coverage requirements. Most such re­ open space per dwelling unit. The propor­ quirements range between 40 to 50 percent, tion of common open space ranged from five which is compatible with lot sizes between percent of net acreage to 20 percent of gross 4,000 and 5,000 square feet. area, while the allocation common open space per dwelling unit ranged from 100 to Unit Setbackand Separation 300 square feet per unit. Some regulations Developers must scrutinize the regula­ specify common open space requirements tions carefully because the set back is often based on the number of lots in the develop­ measured from an imaginary right-of-way pre- ment. Other regulations state common open scribed by regulations. Some regulations may space requirements in terms of a minimum require a right-of-way in a land lease devel­ absolute number of square feet, ranging from opment even though the local jurisdiction 4,500 to 7,500 square feet. Most communi­ is not responsible for roads and utilities. The ties apply improvement standards to com­ setback is usually measured from the edge of mon open space to ensure that it is usable. rhe pavement in the land lease community These may include pools, recreation centers, and from the edge of the right-of-way in a tennis or basketball courts. manufactured home fee-simple subdivision. Regulations in almost all of the 20 sur­ PerimeterRequirements veyed communities prescribed minimum Nearly all surveyed communities require front, side, and rear setback requirements to a buffer between the manufactured dwelling ensure units are not too close to the street, units in the park and adjacent uses. Most some separation exists between units, and communities prescribe a buffer area of be- creation of yard areas. In more than half of tween 20 to 50 feet in width from the struc­ the communities unit separation regulations ture to the perimeter of the community, but apply only to land-lease communities. Most standards can vary depending on the nature of the communities require separation be- of adjacent uses. Regulations sometimes tween units of 10 to 20 feet and require a specify options such as fencing or landscap­ minimum 15 to 20 foot setback from the ing to implement the barrier. Flexible regu­ front lot line, with 20 feet the most common lations would determine the needand the setback. A need for a setback to facilitate type of buffer based on an analysis of the backing a car off a lot into a street dimin­ specific site location.

64 Appendix D Landscaping so that they do not disrupt residents already In addition to landscaping of open in place from earlier stages. spacesand buffer areas, some of the surveyed Taxes on land are likely to increase once communities required landscaping through- a community approves rezoning for a devel­ out the subdivision to enhance privacy and opment because its income potential is improve appearance. In one case, for ex- higher than in its previous status as open ample, the community prescribed the num­ land. Also, many communities require that ber of trees based on a ratio to the number once a plan for a property is approved for of lots. subdivision, infrastructure must be installed Streets and Sidewalks within a specified period of time. To avoid Most of the surveyed communities pre- paying taxes on idle land or constructing scribe local access or minor streets between unused infrastructure, the size of the parcel 20 and 24 feet wide with no on-street park­ in the initial purchase and subsequent phases ing. The most common width was 20 feet. should be carefully considered. For example, Required widths increase to 27 to 30 feet some suggest that market studies should jus­ with parking on one side of the street and to tify a fill-rate of less than six years for large 32 to 42 feet with parking on both sides of parcels providing 100 sites or more. the street. For most communities, a three- Dens@ foot minimum sidewalk width was adequate. The majority of manufactured home Parking communities range in density from five to Regulations in most of the surveyed com­ seven homes per acre. A great variety of den­ munities require that developers provide two sities are possible in various types of plats parking spaces per dwelling unit in a manu­ using different lot sizes, street widths, and factured home development. In most cases common amenities. these spaces have to be provided on the lot A grid plan in which every lot the same they serve, but some communities require size and shape and the same distance from that one of the parking spacesbe located off- the street is the most economical subdivision site. Other communities require parking be because it is capable of providing the high­ pro-rated for guests, based on the number est densities. The density of a manufactured of dwelling units in the development. The housing project can vary, however, within the amount of parking spaces on or off the lot traditional grid pattern adopted in the site can be flexibly determined based on the size plan. For example, a project of 40 acres with of lots and the character of the community. a basic grid plat can achieve gross densities A development for older retired persons,for as high as seven units per acre. This is ac­ example, may require less parking. complished assuming no common facilities or open space and 20 percent of land in Other Site streets. Such a plat can provide a total of 281 Development Considerations units in 25 by 200-foot lots of 5,000 square Minimum Size of Development feet. Some consider a lot size of 5,000 square The size of a project not only influences feet no longer popular or practical with cur- the traffic patterns and street design of a de­ rent larger and better multisection homes. velopment, but it also impacts the type and A less dense grid pattern of 65 by 110 foot amount of common open space and recre­ lots of 7,150 square feet can achieve gross ational facilities. In large projects, staging densities of 4-l/2 units per acre, providing of accessand egress in future phases of con­ 108 lots, assuming that 56 percent of the land struction should be designed and planned is in streets and common open space.

Appendix D 65 The grid plan provides a dull, monoto­ on the lot or that require remote parking nous, crowded look reminiscent of the old have not been appealing to homebuyers. “mobile home Park”. A “neighborhood” Carports ten to 13 feet wide on the side of subdivision plat of 40 acres that includes a the house are popular in the South, while slightly a curved main avenue that separates some communities in the North provide various part of the subdivision can be about parallel parking in front of the home. Typi­ five percent more expensive than the grid cally two parking spaces are provided on the plat. It is less economical in terms of sewer site with off-site parking provided for guests. and water requirements, but can be designed General Site Design Considerutiom to consume less area for roads. Acurvilinear Several site development characteristics plat of the same size with curved streets and that are important in planning site-built sub- culde-sacs can be about 16 percent more ex- divisions also apply to the development of pensive than a neighborhood or grid plat, manufactured home communities. These because it is not as efficient in regard to cost include topography, soils, vegetation, drain- and density. age, utilities, easements, surrounding envi­ A typical fee simple manufactured hous­ rons. This section focuses only on aspects ing subdivision of 40 acres, on the other of these characteristics that are particularly hand, can easily achieve a density of four important or are applied differently to manu­ units per acre. In such casesit is possible to factured housing. have 7,500-foot lots 50 by 150 feet, assum­ ing no common space, with 31 percent of Topopaphy land for 30-foot wide streets and a 60-foot As with site-built housing, a slope on a right-of-way. This density is typically pre- property of between zero and three percent scribed in ordinances, but 50-foot rights-of- is of little consequence for manufactured way and lot sizes between 5,000 and 6,000 homes, but slopes between four and eight feet have been found acceptable in certain percent begin to have an influence on how instances. manufactured homes are sited. Grades of more than ten percent can have a significant Streetsand Sidewalks influence on development costs. Average daily traffic, the amount of lot In general, manufactured homes cannot frontage, the degree of on street parking, and adapt as easily to changing or steep grades as the positioning of parking on the lot, are conventional multifamily or single family factors that determine street width for a spe­ housing and the cost of grading can become cific site. Street widths in a land lease com­ a significant factor. In conventional hous­ munity with no parking allowed on the street ing, structures can become retaining walls are normally between 20 to 26 feet, and can and grades can be crossed much more easily be expanded to 30 feet with parking on one than with a manufactured home. On the side of the street and 36 feet with parking other hand, manufactured homes without a on both sides of the street. Fee simple manu­ basement are more adaptable to land with factured home subdivisions are built to lo­ high ground water levels than conventional cal subdivision standards, generally requir­ housing with basements. The short dimen­ ing a paved road 36 feet wide. sion of the manufactured home, rather than Parking its long dimension, can more easily adjust Most residents prefer to park their cars to sharp drops in grade. A five-foot drop close to their homes. Consequently, some across a 50-foot front of a HUD-Code home lot concepts thatincrease open spacesby plac­ with its long side parallel to the contours can ing the parking in a less convenient location be more easily accommodated than when

66 Appendix D contours are parallel to the short dimension Water Systems and the long side of the home bears the A municipality can operate and main­ brunt of the drop in grade. tain a water system for the manufactured In a conventional subdivision, grading home community in accordance with its own and drainage is normally accomplished standards and provide adequate pressure within the right-of-way. Also, conventional andstorage to serve domestic needs and fire foundation walls or crawlspaces walls can protection. If developers build a private function as retaining walls depending upon water supply for a manufactured home com­ how the home is placed on the site. This munity, they will usually be required to have may be difficult or impossible with manu­ a well(s), turbine pump and mechanical factured homes. equipment, a standby power source, and pneumatic, elevated or ground water storage. Sewerage Private systems have greater flexibility in pipe It is claimed that manufactured homes sizing than allowed by local ordinances, us­ in land lease communities discharge less ing two- or four-inch lines for domestic ser­ wastewater to treatment facilities, because vice instead of the six- to eight-inch lines re­ they house a smaller average size of house- quired by local jurisdictions. hold, especially in retirement communities. This claim is not generally recognized by regu Storm Drainage and Storm Water Management latory agencies, however, and both land lease The requirements for storm drainage communities and fee-simplemanufactured and water management vary greatly by local home subdivisions are usually held to the area and the characteristics of the specific same standards as site-built subdivisions. site. Average design flows per day range from 150 gallons to 400 gallons, based on a rule-of- Utilities thumb of 100 gallons per capita per day. The modern manufactured home com­ In a land lease community, the smallest munity has electrical service that is entirely service line to a home is usually four inches underground and the electric utility will usu­ in diameter and the smallest collector line is ally design and install the primary and sec­ eight inches in diameter. Since the sewer ondary distribution systems. In some cases, collection system in a land lease community however, the utility may require the devel­ is usually privately owned and maintained, oper to install the secondary and even the there is more flexibility in layout than in a entire distribution system. Natural gas and conventional subdivision. Sewer lines are propane, commonly used in the North, are usually run in the back of the home where not generally provided in the South. In the they can serve the back third of two homes interests of aesthetics, cable television is usu­ with short lateral runs, whereas conventional ally installed underground in most new subdivision typically run the line in the street manufactured home communities, some- with longer lateral runs to individual homes. times along with telephone lines. Most land lease communities use prefab­ ricated treatment plants rather than engi­ Offsite Improvements neerdesigned plants. The use of septic tanks Sometimes the developer is required to and leach fields for effluent from manufac­ cooperate with the local jurisdiction or util­ tured homes usually occurs in low-density ity in the extension of water, sewer, storm rural areas and is not feasible in high-priced sewer, or other utilities on the property and urban land. Local jurisdictions typically re- pay the costs of offsite improvements. As quire suitable soils and larger sites of a half- with any type of housing, developers must acre for such septic tanks and drainfields. not only weigh the initial cost of such exten-

AppendixD 67 sions against the cost of developing their own development costs and thereby reduce home systems, but also evaluate the operating costs prices or rents, homes are usually placed per­ of such systems, especially water supply or pendicular to the street and lots are designed sewage systems. to be long and narrow. Some manufactur­ ers have designed an architectural front en- try facing the street, allowing the home to Lot Planning be placed perpendicular to the street, and Lot Size improving appearance at a lower cost. Simi­ Manufactured home lots generally range larly, putting the parking or garage at the rear from 4,500 to 6,000 square feet, with smaller of the lot can reduce the required lot front- home sites of about 3,500 square feet where age and development cost. special structural or zero lot-line techniques Lot Coverage are used. Most manufactured homes in fee- The purpose of lot coverage require­ simple subdivisions have lots that average ments is to reduce crowding and increase the between 7,500 and 15,000 square feet, al­ amount of open space on a lot. An open though attractive communities with lots space or patio on the lot can be developed smaller than 7,500 square feet have been de­ in variety of ways to reduce lot coverage. veloped using innovative products and de- Various options in placement of screened signs. porches, carports, and garages can create Lx Width or Frontage open space on the lot. The zero-lot line con­ Lot frontage or width is important in­ cept provides the most open space, but may fluence on the cost of utility runs and can not be economically feasible in some areas. significantly affect development. About 75 Unit Setback and Separation percent of the hard development costs of a Northern or Midwestern communities, lot are reportedly accounted for by the where space is needed for snow removal, amount of lot front footage. The lot width usually have ten-foot side setbacks, with a required could vary with the way the unit is distance of 20 to 25 feet between homes and placed on the lot, the lot size, building set- a 25-foot setback, if parking is placed in front. back and the way parking is placed on the In moderate climates typical of the South, lot. setbacks of five to ten feet from the edge of Placing a multisection home parallel to the pavement have been used. Although the street frontage provides an advantage in setbacks for manufactured homes in fee marketing because it has the potential to simple subdivisions vary, ten-foot side set- simulate the appearance of a site-built home. backs, 2@foot rear setbacks, and 25sfoot front Increasing the front footage, however, in- setbacks from the right of way line are typi­ creases the cost of development. To reduce cal.

68 AppendixD Resources E

This Appendix lists a variety of resources Conference of States on Building Codes and available to builders that want to learn more Standards (NCSBCS), located in Herndon, VA about manufactured housing in general, as well (telephone 703-437-0100), is actively involved in as for those who wish to study specific aspects of the HUD-Code program and can provide infor­ the market for HUD-Code homes in their busi­ mation about national and state-level regulatory ness area. issues relating to manufactured housing. The The Manufactured Housing Institute NCSBCS web site is at www.ncsbcs.org. (MHI), located at 2101 Wilson Boulevard, Suite 610, Arlington VA 22201 (telephone 703-558- Periodicals, Newsletters and Magazines 0400), is the principal national trade association Allen Letter. Monthly newsletter. PMN Publish­ for the manufactured housing industry. MHI ing, Indianapolis, IN. offers numerous publications for sale or free of Automated Builder. Monthly magazine. Ventura, charge, sponsors research, performs lobbying, and CA. compiles and publishes a variety of statistics con­ Crittenden’s Manufactured Housing Community cerning the industry. The MHI web site is at Report. Monthly newsletter. Crittenden Pub­ www.mfghome.org. lishing, Inc., Novato CA. MHI has state-level affiliates in many states Manufactured Home Merchandiser. Monthly maga­ around the U.S. Several of these affiliates main­ zine. RLD Group, Inc., Chicago IL. tain their own Internet sites, which are sources Urban Lund. Monthly magazine. ULI-The Ur­ of state-level information about manufacturing ban Land Institute, Washington, D.C. plants, retailers and communities located in their territories. These sites include: Books and Reports Albern, William F. and M.D. Morris, Ed., Fuc­ Alabama www.amhi.org tory-Constructed Housing Deuelogments, Plan­ Arizona www.mhiaz.org ning, Design and Construction. CRC Press, California www.cmhi.org Boca Raton, FL. Colorado www.coloradohome.org Allen, George, David Alley, and Edward Hicks Illinois www.imha.org with Joseph Owens, Development, Marketing Indiana www.americas-home.com and Operation of Manufactured Home Commu­ Kansas www.midwestpride.com nities. John Wiley & Sons, Inc., New York, Kentucky www.kymanufhome.com NY. 1994. Louisiana www.lmha.com Michigan www.michhome.org Goldman Sachs & Co., U.S. Research: Manufac­ Minnesota www.mnmfghome.com tured Housing. New York, NY, April 1997. Montana www.mtmha.org Manufactured Housing Institute, Manufactured Nevada www.nmhcongress.org Home Financing in 1996. Arlington, VA. New Mexico www.nmmha.com 1997. New York www.nymha.org Manufactured Housing Institute, Manufactured North Carolina www.ncmhi.com Home Financing in 1997. Arlington, VA. North Dakota www.ndmha.com 1998. Ohio www.omha-usa.org 7he Manufactured Housing Zoning Forum, Report. Oklahoma www.mhao.com Sponsored by U.S. Department of Housing Oregon www.omha.com and Urban Development, American Plan­ Pennsylvania www.pmha.org ning Association and Manufactured Hous­ South Dakota www.sdmha.com ing Institute. Washingtson www.nwpride.org Merrill Lynch & Co., The Manufactured Housing The Manufactured Housing Association for and Recreational Vehicle Industries. May 1996. Regulatory Reform (MHARR) is another indus­ National Commission on Manufactured Hous­ try trade association, located in Washington, D.C. ing, Final Report. U.S. Government Print­ (telephone 202-783-4087).The Housing and ing Office, Washington, D.C., 1994. Building Technology division of the National Sanders, Welford, Manufactured Housing: Regula-

AppendixE 69 tion, Design InnowationsandDeveelopmentOp- 38 CFR Part 36: VA personal property and Cons. American Planning Association, Plan­ real property loan programs ning Advisory Service Report Number 478. Federal National Mortgage Association, Selling Chicago, IL, July 1998. Guide U.S. Department of Housing and Urban Devel­ Federal Home Loan Mortgage Corporation, opment, Office of Policy Development and Single-Family Se&r/Servicer Guide Research, Factory and Site-Built Housing: A Note: The Code of Federal ReguIations (CFR) is ac­ Comparative Analysis. 1998. cessibleon-line at www.gpo.gov/nanz/cj?. U.S. Department of Housing and Urban Devel­ opment, Office of Policy Development and Manufacturer Contacts Research, Building Innovation for American Homestar 208-890-5877 Homeownership. 1998. Dave Whitson U.S. Department of Housing and Urban Devel­ Bluegrass Housing, Inc. 606-849-4119 opment, Office of Policy Development and Art Archibald Research, Innovaationsat the Cutting Edge- New Buccaneer Homes of Ideas in Manufactured Housing. August 1999. Alabama, Inc. 205-921-3135 U.S. Department of Housing and Urban Devel­ Dave Gilland opment, Office of Policy Development and Burlington Homes of Maine 207-539-4406 Research, Manufactured Home Installation Tracy Millet, Jim Pereira Training Manual. April 1999. Cavalier Homes, Inc. 256-747-1575 U.S. Department of Housing and Urban Devel­ Phillip Privett opment, Office of Policy Development and Champion Enterprises, Inc. 248-340-9090 Research, Manufactured Home ProducersGuide Andy Scholz to Working in the Site-Built Market. 1999. Chandeleur Homes, Inc. 256-593-9225 U.S. Department of Housing and Urban DeveE David Bridges opment, Office of Policy Development and Chief Industries, Inc., Research, Next Generation of Manufactured d/b/a Bonnavilla Homes 402-694-5250 Housing. Design Phase. April 1997. Mike Newmann U.S. Department of Housing and Urban Devel­ Clayton Homes, Inc. 423-380-3000 opment, Office of Policy Development and Jim Miller Research, Permanent Foundation Guide for Commodore Corporation 219-533-7100 Manufactured Housing. September, 1996. Bill Glick Vermeer, Kimberly and Josephine Louie, The Crest Ridge Homes, Inc. 254-559-8211 Future of Manufactured Housing, Joint Center Bob McNatt for Housing Studies of Harvard University, Cambridge MA. January 1997. Crestline Homes 910-276-0195 Mike Walters Regulations and Financing Requirements Dutch Housing, Inc. 219-463-7502 7 CFR Part 1924: RHS rural housing loan pro- Stacy Swihart, Jerry Brown gram regulations Fall Creek Housing Corporation 219-523-1444 7 CFR Part 3550: RHS direct single-family loan Doug Lantz program regulations Fleetwood Enterprises, Inc. 909-351-3500 24 CFR Part 201: FHA financing rules for Title Bob Jordan, Mallory Smith 1 (personal property) loans 24 CFR Part 203: FHA financing rules for Title Fortune Homes, Inc. 616-483-7000 2 (real property) loans Joe Kimell, Bob Miller 24 CFR Part 3280: Manufactured Home Con­ Franklin Homes, Inc. 205-332-4510 struction and Safety Standards D.L. “Bones” Creel, Bruce Falkner 24 CFR Part 3282: Manufactured Home Grand Manor, Inc. 912-228-0023 Procedural and Enforcement Regulations Jerry Milligan

70 A#endix E Hi-Tech Housing, Inc. 847-441-6612 Manufacturer Internet Sites Steve Schultz Virtually all large manufacturers main­ Homes of Legend, Inc. 256-593-9630 tain Internet sites containing information for Kevin Sims consumers, retailers and in some cases for Kit Manufacturing Company 208-453-2500 investors. Mostoffer the ability to search for Wade Butler, Harold Breech plants or dealers by geographic location or Manufactured Housing provide this information in the form of maps Enterprises, Inc. 419-636-4511 or lists. Some sites show floorplans and pic­ Nathan Kimpel tures of model homes. The web sites for Moduline Industries, Inc. 360-748-8881 some of the largest publicly traded produc­ Ron Stine ers include copies of annual financial re- New Era Building Systems,Inc. 814-764-5581 ports, which generally contain a great deal Ryan Bish of information about the firm, its divisions, Oakwood Homes Corporation 336-664-2400 its operations and its finances. Many divi­ R.D. Harvey, Sr. sions of large firms have their own web sites, Destiny Division 912-985-6100 new sites are coming on line, and mergers, Donnie Edwards acquisitions and consolidations of the indus­ Golden West Division 541-926-8631 try are constantly taking place, so this list Bruce Stoyer may rapidly go out of date. Schult/Marlette Division 219-825-5881 Dale Kase American Homestar www.americanhomestar.com Patriot Homes, Inc. 219-524-8600 Asrrohomes (Cavalier) Steve Reyenga www.astrohomes.com 704-483-5511 R-Anell Custom Homes, Inc. Bellcrest Homes, Inc. Darrell Mullinix www.bellcrest.com Gold Medal Homes, Inc. 704-445-9610 Belmont Homes (Cavalier) Buddy Clark, Jon Gandy wwwbelmont-homes.com Redman Homes, Inc. 248-340-9090 Brigadier Homes of North Carolina (Cavalier) Andy Scholr www.brigadier.com Rochester Homes, Inc. 219-223-4321 Buccaneer Homes (Cavalier) Kenny Anderson www.buccaneerhomes.com Signal Homes, Inc. 915-263-2300 Burlington Homes Bud Ledingham www.burlingtonhomes.com Silvercrest Homes, Cavalier Homes Western Homes Corp. 909-734-6610 www.cavhomesinc.com Craig Fleming, Darko Rapotez and Cavalier Homes of Alabama SteveTruslow www.cavalier-homes.com Skyline Corporation 219-294-6521 Cavco Industries, Inc. Terry Decio www.cavco.com Taylor Made Homes, Inc./ Clayton Homes American Family Homes 417-845-3311 www.clayton.com Gin Carver Champion Enterprises Virginia Homes Mfg. www.champent.com Corporation 804-738-6107 Commodore Corporation Danny Herion www.commodorehomes.com Wick Building Systems,Inc. Crestline Homes (Commodore) Butch Berg 608-795-4281 www.crestlinehomes.com

AppendixE 71 Fairmont Homes Skyline Corporation www.fairmonthomes.com www.skylinehomes.com Fall Creek Housing Corp. Spirit Homes, Inc. (Cavalier) www.fallcreekhomes.com www.spirithomes.com Fleetwood Enterprises Taylor Made Homes, Inc. www.fleetwood.com www.taylormadehomes,com Four Seasons Housing Town & Country Homes (Cavalier) www.fourseasonshousing.com www.tcmh.com Fuqua Homes, Inc. [Oregon] Titan Homes (Champion) www.fuquahomes.com www.titanhomes.net Fuqua Homes, Inc. [Missouri] Wick Building Systems www.fuquahomes-mo.com www.wickmarshfield.com Hi-Tech Housing, Inc. www.hi-techhousing.com Homestead Homes (Cavalier) Financial/ln~estment Institution Internet Sites www.hmstead.com GreenPoint Financial Horton Homes www.greenpoint.com www.hortonhomes.com Green Tree Financial Jacobsen Homes www.gtfc.com www.jachomes.com Associates Housing Finance, Inc. Kit Manufacturing www.theassociates.com www.kitmfg.com Liberty Homes Professionul lndushy Consultants www.libertyhomesinc.com Mansion Homes The following is a selected list of firms www.mansionhomes.com that specialize in providing consulting ser­ Marlette Homes, Inc. (Schult) vices to address engineering, design, financ­ www.marlettehomes.com ing and/or marketing issues, both to land- New Era Building Systems lease community developers and to builders www.new-era-homes.com seeking to use manufactured housing. Nobility Homes, Inc. Mr. David Alley v.ww.nobilityhomes.com Alley & Associates Oakwood Homes 727-447-1700 Palm Harbor, FL www.oakwoodhomes.com Palm Harbor Homes Mr. Steve Hullibarger www.palmharbor.com The Home Team Fair Oaks, CA Patriot Homes 916-965-5153 www.patriothomes.com Mr. Roderick Knoll Pine Grove Manufactured Homes, Inc. Manufactured Housing Resources,Inc. www.pinegrovehomes.com 303-442-4402 Boulder, CO Redman Homes (Champion) Mr. Joseph E. Link www.redmanhomes-nw.com MarketWise Ritz-Craft Corporation, Inc. 410-750-7373 Ellicott City, MD www.ritz-craft.com Mr. Donald Westphal Riverchase Homes (Cavalier) Donald Westphal & Associates www.riverchase-homes.com 248-651-5518 Rochester, Ml Rochester Homes, Inc. Mr. David Wolff www.rochesterhomesinc.com Real Estate Diagnostics, Inc. Schult Homes (Oakwood) 732-505-9552 Toms River, NJ www.schulthomes.com Silvercrest (Champion) Additional information about specialists in these www.silvercrest.com and related areas is available from MHI.

72 AppendixE Visit PD&R’s Web Site www.huduser.org to find this report and others sponsored by HUD’s Office of Policy Development and Research (PD&R). Other services of HUD USER, PD&R’s Research Information Service, include listservs; special interest, bimonthly publications (best practices, significant studies from other sources); access to public use databases; hotline I-800-245-2691 for help accessing the information you need.