On May 26th, the USDA’s Office of Rural Development announced that it will authorize the issuance of Conditional Commitments for its Section 502 Single Family Housing Guaranteed Loan Program which has been out of funds since last month. The Office of Rural Development will continue to accept complete loan applications and issue Conditional Commitments from approved lenders subject to final action on pending legislation to charge a sufficient guarantee fee to support the program. Legislation is expected to be enacted within the next several weeks. MHI has worked with members of Congress and other housing partners to obtain additional funding authority for the program.

Earlier in the week, MHI staff met with Joaquin Tremols, Deputy Director of the Single Family Loan Guarantee Program, to discuss industry concerns regarding USDA’s installation requirements, and inconsistent and arbitrary application of the USDA regulations in the field. MHI asked USDA to consider changing its current regulations to allow for the use of HUD approved state installation standards in lieu of FmHA minimum property standards. Mr. Tremols said that USDA personnel in the field should be following the regulations as prescribed and asked for additional information. He also said he and his staff would take a closer look at the HUD approved manufactured home installation programs to consider changing USDA regulations.

MHI would like to get more specific information on how local USDA offices are implementing the requirements for manufactured housing under the program.

MHI members with questions can contact Lois Starkey at lstarkey@mfghome.org.