Hard-pressed home manufacturers get last-minute break on new standards

The Department of Housing and Urban Development on Wednesday delayed the implementation of new manufactured housing standards on Federal Housing Administration loan collateral, citing supply chain issues.

HUD extended the deadline less than a week before new standards were scheduled to go into effect on March 15. The new effective date is July 12.

The extension highlights how some constraints on manufactured homes are lingering even though shipment numbers show signs of recovery.

“Many manufacturers are experiencing backlogs and supply chain challenges that make it difficult … to obtain products that the new regulations require in a timely manner,” HUD said in a notice published in the Federal Register.

Shipments of manufactured homes slumped following the onset of the pandemic last March and didn’t return to prepandemic levels until November, data published by the U.S. Census Bureau shows.

Although shipments are getting back on track, difficulty obtaining certain materials lingers.

“Shortages have made it difficult for manufacturers to obtain carbon monoxide alarms, combination carbon monoxide and smoke alarms, doors, railings and other products required to meet the Jan. 12 regulation,” HUD said in its notice.

Obtaining materials for home construction presents challenges as well, but manufactured homes are relatively easier to produce in some areas like the South, Texas, Michigan and California.

Traditionally, the FHA was the primarily government-related provider of financing for manufactured homes, but more recently Fannie Mae and Freddie Mac also have expanded the types of loans they’ll buy in this market.

The recent runup in prices and relative shortage of housing inventory have made manufactured homes attractive because they sell for around $100,000 or less as compared to $300,000 on average for traditional homes.