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We are pledged to the letter and spirit of U.S. policy  for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, or national origin.
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President Bush Signs HR 3221
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The housing bill signed by President Bush on July 30, 2008, includes a long list of provisions. We've sifted through the bill and highlighted major topic areas of interest to the factory built housing industry. A separate summary is provided for the first time homebuyer tax credit. There were no basic changes to the bill in the Senate prior to passage.
A new Federal Housing Finance Agency is created by the bill which consolidates the regulation of the GSE's (Fannie Mae and Freddie Mac specifically) and the Federal Home Loan Banks (together the three agencies are referred to as the entities hereafter.) The Director of this agency will have to power to regulate the entities and has a requirement to report to Congress on their activities.
- FHA loan reform. Loan limits are raised and the insurance aspect of Title I (personal property program) is reformed to mirror Title II (real property). Loan limits for Title II are raised to the greater of $271,050 or 115% of local area median home price, the limit cap is raised to $625,500. The Title I loan limits are raised as follows and the amounts are indexed for future inflation. (quoting from 12 USC 1703).
$25,000 if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures; and
$17,500 25,090 if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing manufactured homes;
$60,000 or an average amount of $12,000 per family unit if made for the purpose of financing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families;
$48,600 69,678 if made for the purpose of financing the purchase of a manufactured home;
$64,800 92,504 if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home; and
$16,200 23,226 if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within 6 months after the date of such loan.
The law creates streamlined processing for FHA condos loans .
The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- Duty to Serve. An affirmative duty is created for the GSE's to serve the manufactured housing industry. This includes the creation of mortgage products for personal property lending.
- First Time Homebuyer Tax Credit. A credit of up to $7500 is provided for first time homebuyers. A separate question and answer document is attached to fully explain this credit.
- Leasehold Requirements. Loans for home involving leased property would be subject to a variety of lease requirements. The lease must: (A) expires not less than 3 years after the origination date of the obligation; (B) is renewable upon the expiration of the original 3 year term by successive 1 year terms; and (C) requires the lessor to provide the lessee written notice of termination of the lease not less than 180 days prior to the expiration of the current lease term in the event the lessee is required to move due to the closing of the manufactured home community, and further provides that failure to provide such notice to the mortgagor in a timely manner will cause the lease term, at its expiration, to automatically renew for an additional 1 year term.
- Cash Down payment and Prohibition on Seller Provided Downpayments. A 3.5 percent cash downpayment requirement is created which is an increase from 3.0%. Sellers are prohibited from funding downpayment programs. These generally operate by a seller making a "contribution" to a non-profit which in turn provides money to the seller's buyer minus an "administrative fee."
- Tax Status of Property for Title II Loans. A provision of the bill removes the requirement that a home subject to a long-term lease must be taxed as real property to quality for FHA Title II financing. This will make it much easier for community owners in states that have a process for converting homes with long-term leases to real property to secure Title II financing for their residents. The Wisconsin Legislature has approved legislation recognizing leasehold interests for manufactured homes which should make this possible here.
- Prior approval authority for mortgage products. The three entities must obtain prior approval from the Director before launching new mortgage products.
- Annual Housing Report. The Director must report to Congress annually on how well the entities are meeting their goals. The Director also is given enforcement powers to make certain the entities are progressing.
- Housing Trust Fund. A national fund is created to be distributed to the states to assist with affordable housing. Trust Fund is funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- Additional Standard Deduction For Real Property Taxes For Non-itemizers of $500 ($1,000 for a joint return).
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