Nationally, the number of manufactured homes shipped dropped drastically in the early part of the new century, as loose credit standards in part from government-sponsored enterprises (GSEs) took away a portion of the MH market share and ultimately led to the housing bubble and Great Recession. Production rose to 49,000 in 2010, and last year it had increased to 64,000, and is on track to surpass that number this year.
Fridley Mayor Scott Lund, who sells MH and owns a manufactured home community (MHC), says the demand for affordable housing remains high, “But the tightening of the financial market has caused less people to get loans to purchase manufactured homes. Many dealers simply closed their doors. There are a lot of manufactured-home communities in the metro, and they are not full anymore.” He says the number of banks he deals with that offer MH loans has dropped from 22 to four.
Mark Brunner, president of the Manufactured and Modular Home Association of Minnesota (MMHA) says the Dodd-Frank financial reform measure signed into law by President Obama in 2010 created a “huge impediment” to people’s ability to purchase MH. Noting, “There is clear demand for affordable housing and workforce housing,” Brunner says the U. S. House of Representatives did pass reform legislation last month, but as MHProNews understands it must pass the Senate and the president’s signature.
Just north of Minneapolis is Hilltop, MN, pop. 744, comprised almost totally of manufactured homes. Linda Johnson and her husband live in one of the four communities in Hilltop, one that his family has owned since 1948. She says production may have fallen but demand has not. “We are always full,” she said. “We have people coming to the door almost daily asking about mobile homes for sale.” She is a Hilltop City Council member and has helped residents secure state funding to replace aging homes with new ones.
Kate Thunstrom, Anoka County’s Community Development Manager, says $220,000 of its $729,000 federal community block grant funding has been used to replace aging manufactured homes. Nearly 25 percent of the Twin Cities’ MH are in this county. The funding helps residents remove old homes and provides down payment assistance. “Some of the units being taken out are beyond distressed,” Thunstrom said. “They are not safe or habitable. It doesn’t take a lot of grant funds to make a big impact.”
In October, the non-profit Corporation for Enterprise Development (CFED), nominally a sponsor of MH, will host a conference in the Twin cities abut the role of manufactured homes in the affordable housing movement. ##
(Photo credit: startribune/Elizabeth Flores–Manufactured home community in Hilltop, Minnesota)
