Responding to House Financial Service Chairman Rep. Jeb Hensarling’s (R-TX) request for ideas on addressing poverty and home affordability, MHProNews and ManufacturedHomeLIvingNews publisher L. A. “Tony” Kovach documents HUD’s failure to promote manufactured housing as affordable housing. In Re-inventing HUD’s Role in Quality Affordable Housing, Kovach points out the percentage of people living in poverty is the same as it was when President Lyndon Johnson declared a “War on Poverty” in 1965—but millions more people.
Kovach has interviewed hundreds of homeowners, industry pros and workers on the line since being in the industry since 1981. Using accurate figures (and government ones), he draws a line, from the $1.6 trillion money spent on government programs that have been of questionable value, to how the $50 billion spent on federal housing assistance in 2014 could better be used helping consumers get into manufactured homes. $50 billion equals 671,141 new manufactured homes, using the Census Bureau average cost of $44,500 per home.
Noting the “seemingly endless line for HUD housing program assistance,” and the importance of housing to the economy, Kovach points out the 2014 Government Accounting Office (GAO) report said “manufactured homes are the most cost-effective form of unsubsidized housing in America.”
New MH have been documented to withstand hurricanes and be more fire resistant than comparable site-built homes.
Charities and private initiatives are often more effective at helping people out of poverty than governmental programs, but it is private enterprise that promotes true growth and puts jobs in the economy. The rule of thumb in the industry is that each manufactured home produced equals one full-time employee. He says why waste taxpayer money building on-site at a greater expense. It is another government program that needs to be phased out.
Finally, HUD has failed to promote manufactured housing as affordable housing, despite Congress’ directive to do so, and the current administrator’s affirmation that she wants to use modern MH in every possible HUD program.
To link to MHARR’s report on this topic, click here. For MHI’s, click here.##
(Photo credit: archerland2005/Flickr–manufactured home)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.