9 CONSUMER FINANCIAL PROTECTION BUREAU
source of unsubsidized affordable housing in the country.
13
A report from HUD found
manufactured housing to be a low-cost housing alternative and “good value” for low income
households.
14
More recently, a study from the Urban Institute showed that manufactured
housing is less expensive per square foot than either existing site-built homes or new site-built
homes.
15
Despite being 35 to 47 percent less expensive per square foot than new or existing site-
built homes, the number of new manufactured homes shipped each year is down significantly
from the late 1990s, as mentioned in the previous paragraph. Authors of the same study argued
that restrictive zoning, restrictive or unavailable financing, and lower appreciation than that for
site-built housing are the main reasons why manufactured housing production has remained
low.
Manufactured homes are placed on either land owned by the manufactured-home owner, on
land owned by someone else without rent, or on rented land, including on leased lots within
manufactured home communities. Once placed, manufactured homes are typically not moved
from their original site. Typically, the land in a manufactured housing community is owned by a
landlord, but in a small number of communities, the land is owned by a cooperative of
homeowners as a resident-owned community (ROC).
16
The financing of manufactured housing raises unique consumer protection concerns. Whether
borrowers own the land on which their manufactured housing is located plays a key role in
whether the manufactured home is titled as personal (chattel) property or real property, a
distinction which in turn affects the type and pricing of the loan that the homeowner is able to
receive.
17
The difference in title type is important for the homebuyer since financing costs are
higher and consumer protections are weaker for manufactured homes titled as personal
property than for homes titled as real property.
18
Specifically, chattel loans are not covered by
either the Real Estate Settlement Procedures Act (RESPA) or the Coronavirus Aid, Relief, and
13
“Factory-Built Housing for Affordability, Efficiency, and Resilience .” HUD. Winter/Spring 2020.
https://www.huduser.gov/portal/periodicals/em/WinterSpring20/highlight1.html
14
Boehm and Schlottmann. “Is Manufactured Housing a Good Alternative for Low-Income Families?” U.S.
Department of Housing and Urban Development. December 2004.
https://www.huduser.gov/publications/pdf/ismanufacturedhousingagoodalternativeforlow-
incomefamiliesevidencefromtheamericanhousingsurvey.pdf
15
Goodman, Golding, McCargo, and Ganesh. “Manufactured homes could e ase the affordable housing crisis. So why
are so few being made?” Ubran.org. Urban Institute. 29 January 2018. https://www.urban.org/urban-
wire/manufactured-homes-could-ease-affordable-housing-crisis-so-why-are-so-few-being-made
16
For more information about ROCs, see https://rocusa.org/whats-a-roc/what-is-a-roc-how-is-it-different/.
17
Goodman and Ganesh, “Four ways financing differs for manufactured homes,” 27 July 2018.
https://www.urban.org/urban-wire/four-ways-financing-differs-manufactured-homes
18
Goodman and Ganesh, “Challenges to Obtaining Manufactured Home Financing ,” 27 June 2018.
https://www.urban.org/research/publication/challenges-obtaining-manufactured-home-financing