Congressman Donnelly Provides Overview of Important Manufactured Housing Legislation

The manufactured housing industry plays a critical role in helping Americans achieve the dream of homeownership by providing them with affordable housing options. With so many Hoosiers’ jobs related to manufactured housing, I have worked to ensure that the federal government fosters a business climate that will allow our local companies to remain competitive and hopefully even grow. From my first day in Congress, I sought and was granted seats on the House Financial Services Committee and its Subcommittee on Housing and Community Opportunity, positions where I have been best able to advocate for the manufactured housing industry and the important role it can play in keeping the American dream of affordable home ownership within reach.

In June 2007, I introduced H.R. 2139, The FHA Manufactured Housing Loan Modernization Act, which included provisions to raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land. My bill passed the House by voice vote and was subsequently included in H.R. 3221, The American Housing Rescue and Foreclosure Prevention Act of 2008, which was signed into law on July 30, 2008. The manufactured housing provision raised home-only loan limits from $48,600 to $69,678, a dollar amount more likely to cover the cost of a double-family home. This new law is beneficial to Americans seeking the economic advantages homeownership provides and also to the manufactured housing industry by increasing the demand for affordable, quality manufactured homes.

Recently, I introduced H.R. 5369, The Manufactured Housing Licensing Clarification Act of 2010, which would clarify that administrative and clerical activities performed by manufactured housing retailers are not subject to regulations under The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act when it was adopted as part of the Housing and Economic Recovery Act of 2008. I introduced this bill as a common-sense update that would make sure there is not an unnecessary burden placed on the manufactured housing industry.

I also introduced H.R. 5734, The Dealer Floor Plan Program Extension and Improvement Act of 2010, which would extend and improve the U.S. Small Business Administration (SBA)’s Dealer Floor Plan (DFP) Financing Pilot Program designed to provide loan guarantees for titleable assets. Currently, the DFP Pilot Program is set to expire on September 30, 2010, and the DFP loan guarantees range from 60-75 percent. Extending the program and making it more attractive to lenders would generate economic activity that benefits not on dealers, but also manufacturers, suppliers, consumers and workers. By filling a gap in the credit markets, this SBA program would allow dealers and manufacturers to plan over a longer term and, in doing so, sell more, make more and create more jobs.

There remains too little credit available for the manufactured housing industry and other small businesses. I remain committed to supporting reforms that will increase lending to small businesses because there are too many business owners unable to secure the loans they need to push their company forward. Further, I will continue to push hard for support in the House of Representatives of H.R. 5369 and H.R. 5734. I look forward to continuing my work with the manufactured housing industry on these and other issues.

–Congressman Joe Donnelly, IN-02