Elkhart, IN—Today, Congressman Joe Donnelly met with local companies to announce the inclusion of his manufactured housing bill in H.R. 3221, The American Housing Rescue and Foreclosure Prevention Act of 2008, which was recently signed into law. Donnelly’s legislation includes provisions that will raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  Donnelly’s legislation will increase financing options for homeowners looking to purchase a manufactured home for their families. 

“I understand that, despite the great work of our local companies, the manufactured housing industry is in the midst of a nine-year downturn in housing production levels,” Donnelly said.  “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.  I believe this legislation will not only give the industry a shot in the arm, but it will also help make the Federal Housing Administration’s Title I loan program more financially sound.”

Title I loan limits have not been adjusted for inflation since 1992, and the manufactured housing industry has experienced a decline since.  In 1992, in the midst of the last industry-wide downturn, FHA insured 30,000 Title I loans.  In 2006, that number fell to fewer than 1,500.  In Indiana alone, that number dropped from 377 loans in 1992 to just four loans in 2006.

In June 2007, Donnelly 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.  The bill passed the House by voice vote on June 25, 2007. 

Last month, Donnelly’s legislation was included in the comprehensive housing rescue bill that was subsequently signed into law. The manufactured housing provision will raise home-only loan limits from the current $48,600 to $69,678, a dollar amount more likely to cover the cost of a double-family home. As a result, the demand for manufactured homes likely will increase.

“The manufactured housing industry plays a critical role in helping Americans achieve the dream of homeownership by providing them with affordable options for housing. This legislation 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,” Donnelly added.

“The manufactured housing industry would like to thank Congressman Donnelly for his work to raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  This will help increase financing options for homeowners looking to purchase a manufactured home for their family and, in turn, help our industry. Congressman Donnelly has been a tireless advocate on our behalf, and we thank him for this,” said Edward Hussey, Jr., Vice President--General Counsel of Liberty Homes, Incorporated.

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