HUD’s funding for private contractors, which increases regulatory compliance costs, has risen by almost 30 percent from 2005 to 2014, while HUD payments to SAAs have fallen by 50 percent over the same time frame.
When HUD proposed raising the HUD Code manufacturers label fee 156 percent in 2014, MHARR suggested to HUD that it provide additional funding to the SAAs, which HUD said it would consider doing. However, MHARR points out that at present, SAAs are paid at a rate based on the implementation of the 2000 reform law when production of HUD Code homes was higher than current levels.
It is possible HUD could increase the per floor payments and then reduce the aggregate amount paid to the states because production is lower now than at the time of the 2000 reform law, even though that would be violating the intent of the 2000 law. A decrease in SAA funding could discourage state participation in the HUD program, which MHARR would challenge.
In addition, HUD has said it will bring any change in the SAA funding before the Manufactured Housing Consensus Committee (MHCC). For the full MHARR report, please click here.
Additonally, MHProNews has learned that the MHCC has a meeting scheduled for Aug. 19-20 at the Holiday Inn Washington-Capitol. According to Targeted News Service, topics will include Technical Systems, General Subcommittee Reports, Energy Efficiency Standards for Manufactured Homes Update, Status of EPA’s Final Rule on Formaldehyde Emissions from Composite Wood Products, Solar Panel Presentation. ##
(Photo credit: Manufactured Housing Institute–manufactured homes under production)
