Change in Housing Act to allow HUD tenants to purchase MH

Has anyone worked with their local HUD office on allowing tenants with HUD vouchers to purchase mobile home in a park? Is this what the new law allows? Our HuD offices are still saying no.

Assuming this is for real and not just hype, how would a park advertise for these people? Are they people we would even want in our communities?

I have the same problem. We received the info on the mobile home park investment newsletter that advised us about the housing modernization act of July 2016. It said that tenants can use their hud vouchers to purchase mobile homes. We called our local HUD office and they know nothing about it. We called our congressmans office and he said the Welch amendment DOES allow tenants to use their voucher to purchase mobile homes instead of just stick built houses. Is anyone else having trouble with their local office even knowing about this new law? I’m out of ideas on how to make this new law work for us. We have called six different HUD offices - with no help.

Since it’s so new and at the state level it could be a case of the left-hand not talking to the right hand and neither is in a hurry If it is a new state regulation and you wanted to spearhead local education I suppose you could hire the appropriate attorney to bring it to their attention if it was worth your while.

This was just signed into law a few weeks ago. Now HUD has to write the laws of how it is to be enacted, which could take months. I don’t expect to see any rules on how it works until some time in 2017.

As for the fact that one branch of HUD does not know what the other is doing, or even read the news apparently, I can only chalk that up to one of the many failures of the system. But for affirmation that HUD changed the law, here’s one of the articles:

Obama signed it into law on July 29th. Here’s the article on that:

http://nahbnow.com/2016/08/obama-signs-key-housing-legislation-into-law/

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Frank is correct…the statute was signed into law by the President, but it will be some time before the regulations implementing the law are in effect. First, the HUD must draft the proposed regulations to implement the law and publish it in the Federal Register - . https://www.federalregister.gov/. The public has the opportunity to review and comment on the proposed regulations.[Notice and comment period are generally 30-60 days - however for complex issues it can be up to 180 days] Then HUD has to review, and consider all the comments and then publish the proposed final regulations in the Federal Register. This may take more than a year - especially in a year where the administration changes. The Final Rule will also have an effective date and the local HUD office will probably learn of the new regulations shortly before the effective date.

It would behoove park owners to review the proposed regulations and, if appropriate, comment on the proposed regulations. Of course HUD may be interested in obtaining information from the industry regarding the regulations. So the industry trade associations may be asked for information.

Thanks for the 101 on how much time to expect for this new law to trickle down to the local level. I’m wondering if anyone, who might have read it, thinks if it will include HUD tenants being able to buy homes in a MHP or will this simply be for mobiles on their own land?

Kp -

I did an update on my original post that may be helpful. Here it is:

Although the new policy was to be published before the year end according to information that jhutson received from HUD - no new policy has been released. At this point, it is unlikely that it will be issued before the new year. If you want to follow along for fun, you can check this website periodically for the new policy:

https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/publications/notices

Boots

I am continuing to spam HOTMAquestions@hud.gov for an update, but agree they’re running late on this.

As of Dec the 28th 2016 i have been told by the HUD email support that there should be a implementation notice released in early 2017 for section 112 of hotma 2016(purchaseing a mobile home useing section 8 vouchers. Upon release they will also have the set regulations and guide lines for these voucher holders and land renters and mobile lenders to follow. hope this helps

https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/title/repair

Looks like the publication has been updated.

I thought sometime back - we were told, on this forum, that a law had been passed that would allow HUD renters to be able to get a government loan to buy a mobile home? I guess that never came to fruition?

I don’t really see any difference on the website?

Our problem with getting tenants to get a loan to buy a mobile home (even with government backing) is none of the banks around here want to touch it. They have told us that it is too risky. If every “I” isn’t dotted the government will not back the loan should the tenant fail.

https://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/hotmaresources

This is the clearinghouse page that I found on the HUD web site. If I read and understand correctly, the with some technical adjustments still pending the basic Rule that establishes the ability of Section 8 Housing Vouchers to be used to either rent or purchase a manufactured home in a park or on a private lot of land is currently effective. The many details and restrictions of government bureaucratic organizations compel my autistic brain to encourage you to directly contact BOTH your local PHA (Public Housing Authority) and nearest HUD office for confirmation and to answer any questions you may have about the various aspects of HOTMA.

Similar question to the original post, several months later:

Please share about your experience with the local HUD office in allowing tenants with HUD vouchers to purchase mobile home in a park?