Arlington, Va., July 26, 2006 – The U.S. House of Representatives on Tuesday, July 25, overwhelmingly passed H.R. 4804, the FHA Manufactured Housing Loan Modernization Act of 2006, by a vote of 412-4. The legislation, which the manufactured housing industry vigorously supports and was the subject of Capitol Hill visits during MHI’s recent 2006 Summer Meeting in Washington, D.C., would modernized the Federal Housing Administration Title I (home-only) program for manufactured homes and increase the availability of FHA-insured manufactured housing loans to low- and moderate-income manufactured home purchasers.

Introduced by Rep. Patrick J. Tiberi (R-Ohio) and Ranking Member Barney Frank (D-Mass.), the bill would: raise the manufactured housing Title I loan limits and annually index them for inflation; give HUD the authority to increase insurance premiums and improve underwriting standards to ensure the program is actuarially sound; and realign the insurance system more closely to the FHA Title II system, particularly the loan-by-loan insurance feature.

Rep. Tiberi stated, “Homeownership is at record levels, but there are still too many in this country who, for whatever reason, are denied the dream of owning their own home. This bill would make the option of manufactured housing more viable for these individuals and families.”

Rep. Barney Frank said, “We cannot have a serious discussion in this country about increasing homeownership without including manufactured housing. Manufactured housing is an important element of our nation’s affordable housing formula, and gives people the ability to own a home that otherwise would be shut out.”

The bill now moves to the Senate for action. S.2123, introduced by Sens. Wayne Allard (R-Colo.) and Evan Bayh (D-Ind.), has been the subject of hearings by the Senate Housing Subcommittee, with HUD, Ginnie Mae, and the industry testifying in support of the bill. Other Senate sponsors include Tim Johnson (D-S.D.), Mel Martinez (R-Fla.), Blanche Lincoln (D-Ark.), Elizabeth Dole (R-N.C.), Bill Nelson (D-Fla.), Johnny Isakson (R-Ga.); and Saxby Chambliss (R-Ga.).

However, due to concerns raised by Consumers Union during the hearing (most of which are beyond the scope of the legislation), Sen. Paul Sarbanes (D-Md.), Ranking Member of the Senate Banking Committee, has delayed consideration of the Senate bill until the Government Accounting Office completes a study of these issues.

“It is vitally important that members of the manufactured housing industry contact their respective U.S. Senators to cosponsor S. 2123,” stated MHI President Chris Stinebert. “In particular, the more Democratic Senators that cosponsor this bill the more it will demonstrate to Sen. Sarbanes that this bill has broad, bipartisan support and he should allow this bill to move to the Senate floor for a vote.”

For more information on the FHA Title I reform legislation and Senate action, contact MHI’s Brian Cooney at 703-558-0660 or brian@mfghome.org.