The potential impact of tougher energy standards on manufactured housing pricing, and therefor prospective buyers, could be $6,000 per unit or more. The repayment time frame, per third parties, could take more than a decade. The average American moves about once every 7 years.
The National Association of Home Builders (NAHB) – not the HUD Code industry’s first line of promotion or defense – produced a priced-out study that reveals that hundreds of thousands of potential buyers will no longer qualify for the homes based upon a $1000 price increase. This increase could be 6 to 10 times as high, and manufactured housing is still operating at historically low levels.
So, it could take longer to recoup the cost than the typical American would live in a new manufactured home built to the standards that the Sierra Club and others want to promote.
These are among the reasons why manufactured housing industry pros should be keenly interested in this issue.
With that tee-up, the Constitutional Law Professor blog and the Manufactured Housing Association for Regulatory Reform (MHARR) have both weighed in on a court ruling yesterday on the Sierra Club’s lawsuit against Secretary Rick Perry and the Department of Energy (DOE) regarding manufactured housing regulations.
The Arlington, VA based Manufactured Housing Institute (MHI) has not yet weighed in on the topic. It will be recalled that MHI for some time promoted new standards, until pressure from MHARR, Georgetown University and the Small Business Administration – besides MHProNews – finally caused MHI to flip flop.
The MHI switcheroo was attempted via their amen-corner, Orwellian memory hole method, so industry independents should watch this with caution. MHARR and MHProNews didn’t bite on the MHI purported attempt to change history, as one of those prior MHProNews reports is linked below.
Steven D. Schwinn, John Marshall Law School on the Constitutional Law Professor blog said that “The ruling means that Sierra Club’s case can go forward. And given the court’s conclusions, and the law, it seems likely that Sierra Club will win. But that doesn’t mean that we’ll see regs any time soon.” That is true, but it doesn’t mean that a new bullet doesn’t have to be dodged.
Here’s what MHARR told their members today.
MARCH 14, 2019
TO: MHARR BOARD OF DIRECTORS
MHARR TECHNICAL REVIEW GROUP (TRG)
MHARR STATE AFFILIATES
FROM: MHARR
RE: COURT RULES THAT SIERRA CLUB HAS STANDING TO SUE
DOE OVER MANUFACTURED HOUSING ENERGY STANDARDS
In a development that was not unexpected, the U.S. District Court for the District of Columbia has denied a motion by the U.S. Department of Energy (DOE) to dismiss a lawsuit filed by the Sierra Club, seeking to compel DOE to issue manufactured housing energy standards under section 413 of the Energy Independence and Security Act of 2007 (EISA).
In its Motion to Dismiss, DOE maintained that Sierra Club lacked either organizational or associational standing to sue on behalf of members who allegedly have been “injured” as a result of delays in the establishment of DOE energy conservation standards for manufactured homes. The court’s denial of that Motion – under legal standards that tend to favor plaintiffs seeking to sue – is not a ruling on the substantive merits of the case, but rather, simply means that the case can go forward with Sierra Club acting as a representative for its members.
MHARR will carefully monitor this litigation as it progresses, insofar as the DOE “negotiated rulemaking” process, which led to both DOE’s now withdrawn 2016 proposed rule and, more importantly, currently pending proposals published by DOE in a 2018 Notice of Data Availability (NODA), was inherently and fundamentally tainted and illegitimate, as MHARR has extensively detailed in comments filed with DOE. As a result, that “negotiated rulemaking” process does not provide a valid, lawful or permissible basis for any rulemaking, and DOE, as MHARR has consistently maintained, must go back to the drawing board and initiate a new, legitimate and untainted rulemaking process to address any such manufactured housing standards.
This entire subject will be addressed in greater detail at MHARR’s upcoming Board of Directors meeting.
cc: Other Interested HUD Code Industry Members
The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing.
The full court ruling is found at this link here as a download. See the related reports, further below the byline, offers, and notices for more on this issue.
That’s this afternoon’s manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide” © ## (News, analysis, commentary.)
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NAHB Report – High Cost of Regulations Impact Housing – and Manufactured Housing
MHARR to DOE: Only Three Choices for MH Energy Rule – Abandon, Complete Start-Over, Or Face Legal Action | Manufactured Housing Association Regulatory Reform
Contact: MHARR (202) 783-4087 Washington, D.C., September 17, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR) filed written comments ( see, copy attached hereto) on September 17, 2018 responding to an August 3, 2018 Notice of Data Availability and Request for Information (NODA) published by the U.S.
HUD Whitewash on DOE Rule Costs, More Washington Manufactured Housing Updates | Manufactured Housing Association Regulatory Reform
HUD WHITEWASHES ALLEGED DOE ENERGY RULE COSTS PROCEDURAL CHANGES SHOULD APPLY TO ANY DOE MH RULE REVISED DTS PLANS RELEASED – CHATTEL STILL IN LIMBO 2018 PRODUCTION UP – BUT SHORT OF 100,000 HOME BENCHMARK UNFINISHED BUSINESS – HUD MONITORING CONTRACT REFORM CONGRESS TAKES UP GSE REFORM HUD ANNOUNCES MHCC/SUBCOMMITTEE
