Congress Passes Bill to Remove Barriers to Manufactured Housing
The U.S. House of Representatives passed two bills to remove local and state barriers to manufactured housing on March 2. The Manufactured Housing Institute, the Alabama Manufactured Housing Association, and others in our industry advocated for the “Yes In My Backyard” (YIMBY) Act, H.R. 4531, and the “Improving FHA Support for Small-Dollar Mortgages Act of 2020,” H.R. 5931, to be passed by the Financial Services Committee. That hard work, determination, and persistent advocacy has paid off.
YIMBY Act
The manufactured housing industry encounters many obstacles including regulations regarding zoning and land-use policies, which restrain construction and negatively impact the availability of housing. As more policies are passed, fewer homes are built and housing costs become unsustainable.
America has run into the issue of a lack of housing, as we undergo a nationwide housing crisis. Thus, all levels of government must work together in order to conquer this matter. The passing of the YIMBY Act is the first step to change in relieving renters and homeowners across America who have been burdened by expensive housing.
The YIMBY Act intends to eliminate local land-use regulations that prevent the development of affordable housing. H.R. 4351 calls for honesty in land use and zoning verdicts while encouraging localities to abolish obstacles to housing. Reps. Heck (D-WA), Hollingworth (R-IN), Clay (D-MO), Quigley (D-IL), and Herrera Butler (R-WA) introduced this bill.
Specifically, the YIMBY Act permits “manufactured homes in areas zoned primarily for single-family residential homes.” MHI worked closely with a group of advocates for the manufactured housing industry to get this bill passed.
The YIMBY Act requires localities that obtain Community Development Block Grant (CDBG) funds to disclose the extent to which they are administering specific, pro-affordability, and anti-discriminatory housing regulations, under the Consolidated Plan Reporting.
The CDBG initiative gives annual grants to state and local governments to advance communities by presenting adequate housing and increasing economic opportunities. CBDG assets are crucial for localities, so the Yimby Act seeks to unite local governments and CBDG professionals to work together to tackle the underproduction of housing and enhance the lives of families negatively affected by the shortage of affordable housing.
Congress seeks to create more affordable housing for families across America, and the passing of the YIMBY Act solidifies their efforts to reform housing regulations at federal, state, and local government levels.
Local governments need to be aware of the lack of affordable housing in order to reduce obstacles to construction at the local level. H.R. 4351 is supported by the Alabama Manufactured Housing Association.
Improving FHA Support for Small-Dollar Mortgages Act of 2020
H.R. 5931 orders the Federal Housing Administration (FHA) to revisit its regulations and locate any obstacles to supporting mortgages under $70,000 and present Congress with a proposal for eliminating such obstacles within one year.
The Department of Housing and Urban Development (HUD) must report on obstacles to making FHA single-family mortgage insurance available for mortgages less than $70,000. HUD is required to report on regulations, practices, and products utilized by the FHA and steps that will be taken to remove these obstacles.
The review incorporates manufactured housing loans. These regulations are a step forward for the financing of manufactured homes. MHI and AMHA will continue their work with Congress to eliminate state and local barriers to manufactured housing.
These bills have been passed as a response to COVID-19’s impact on the manufactured housing industry, thanks to the advocacy and determination of organizations for the manufactured housing industry, such as AMHA.
For more resources on affordable housing and the latest news regarding manufactured housing, visit the AMHA website.
