MANUFACTURED and MODULAR HOUSING
Manufactured Housing Units (MHUs)
• A Manufactured Housing Unit (MHU) is defined by HUD as “a structure, transportable in one or more sections which, in the traveling mode, is eight body-feet or more in width or 40 body-feet or more in length, or when erected on site, is 320 square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.”
• Because manufactured housing retailers frequently identify all their products as “modular homes” it is important that any home being purchased as an MHU actually complies with HUD’s definition for MHU. Each home type is identified by a distinct factory label which must also confirm compliance with HUD construction standards. Modular homes are subject to treatment as site-built housing and must comply with different construction standards.
• An MHU may be purchased with HOME funds and provided as a replacement home [per 10 TAC 53.31(c)] if it is:
• New; and
• In compliance with construction standards per 24 CFR 92.205 and the Texas Manufactured Housing Standards Act; and
• Permanently installed and connected to utilities; and
• Properly registered with TDHCA Manufactured Housing Division following Loan Closing and with the appropriate taxing authority of the county in which it is located.
• An MHU may be replaced with another MHU, or, in accordance with limitations imposed by federal acquisition requirements per 24 CFR 92.254, a modular home or a site-built structure.
• The new MHU’s serial number must be included in the Loan documents provided by TDHCA Legal Division for Loan Closing.
• • New MHUs provided as replacement homes may be registered as either real property or personal property with TDHCA Manufactured Housing Division. A Statement of Ownership and Location (SOL) (MHD Form 1037) is the only satisfactory legal evidence of ownership of an MHU in the State of Texas.
• For MHUs registered as real property: Coordinate MHU registration with the title company or closing attorney, as applicable, and the MHU vendor in advance of the scheduled closing date;
• For MHUs registered as personal property: Coordinate MHU registration with the MHU vendor in advance of the scheduled closing date and ensure proper registration is completed with TDHCA Manufactured Housing Division.
• Ensure the SOL is submitted timely to TDHCA Manufactured Housing Division with the $55.00 SOL fee. Include a check made payable directly to TDHCA Manufactured Housing Division (the SOL fee is an eligible closing cost.).
• Follow up on the registration to ensure proper documentation has been provided and an SOL has been obtained.
• Installation of all MHUs in which TDHCA has a financial interest must be inspected by TDHCA Manufactured Housing Division.
• A travel trailer is not considered an MHU and, therefore, a resident of a travel trailer does not meet the homeownership eligibility requirement. A travel trailer is a recreational vehicle, and is NOT eligible for HOME assistance.
• A motor home is not considered an MHU and, therefore, a resident of a motor home does not meet the homeownership eligibility requirement. A motor home is a recreational vehicle, and is NOT eligible for HOME assistance.
Modular Housing A modular home is defined by HUD as a “home built in sections in a factory to meet state, local or regional building codes. Once assembled, the modular unit becomes permanently fixed to one site.”
• Modular homes are treated the same as site-built housing for the purposes of the HOME Program and may be purchased with HOME funds if they:
• Comply with applicable local, state and federal construction and safety codes, standards, and specifications;
• Comply with accessibility requirements per Texas Government Code 2306.514; and
• Are permanently installed and connected to utilities; and
• Are properly registered as real property with TDHCA Manufactured Housing Division.
• Because manufactured housing retailers frequently identify all their products as “modular,” it is important to verify that any home being purchased as a modular home actually complies with HUD’s definition for modular housing and is properly registered. Each home type is identified by a distinct factory label which must also confirm compliance with HUD construction standards. Modular homes are subject to treatment as site-built housing and must comply with specific construction standards.
