Wednesday, March 11, 2020

House Passes “Yes in My Backyard” Act, Next Stop, the Senate!

We all knew it was coming and it’s almost a reality.


The “Yes In My Backyard Act”, HB 4351 doesn't mandate any affordable housing development or zoning, it stipulates that places receiving block grants from the federal government track and report their pro-housing policies.

It also encourages localities to allow manufactured housing in places zoned for single-family houses, the addition of duplexes in such places, and to make other pro-affordable housing changes.

The Senate bill has considerable support among real estate industry organizations, including the Mortgage Bankers Association, the National Association of Home Builders and the Manufactured Housing Institute.

CLICK HERE to read the Senate Bill

Will it be passed by the Senate and signed into law by President Trump before the election? Probably not but it will be shortly after no matter who wins the election.

Like it or not, this could mean a slap in the face for the IRC modular industry. What we do about in response to its becoming law shouldn’t wait until it does.

First you need to learn what this means for single and multifamily modular housing and you can learn the facts at my Builder Breakfast on March 25th in Lewisburg, PA where some of the most influential people in modular and manufactured housing will speak and answer questions from attendees.

Don’t kid yourself, this new legislation along with the introduction of MHI's CrossMod single family housing will have an impact on IRC modular housing. How much of an impact depends on learning the facts early and beginning sales and marketing programs designed to give IRC modular factories and builders a better chance of selling against all the new regulations about to become law.

CLICK HERE for information about the March 25th Builder Breakfast and register today.

5 comments:

Calvin said...

Sorry I can't make it to you Breakfast meeting as I live in Indiana but please do one of your articles about it as I see this as a very important issue.

Anonymous said...

Why am I reading about this here and not a peep from from the BSC or the MHBA? Have they relinquished their obligation to inform their members to Gary's blog?

I met Gary a few years ago and learned he does everything himself without any staff or helpers. I was completely amazed. One man can bring us news about modular, write articles and organize events across the county while the two organizations that are supposed to be reporting and holding meetings for us each only hold one meeting a year.

He reminded that he was retired but loves writing the blog. Who is capable of taking over if he finally decides to retire for real?

Keep going Gary and don't even think of stopping your blog.

Anonymous said...

Many items in the legislation as written are supported and were lobbied for by the NAHB.

Item (N) allow prefabricated construction (perhaps this needs to be expanded with definitions and reference to all of the prefabricated methods since manufactured is clearly listed in Item (D). Most local zoning regulations seem to identify and restrict modular ( not the other advocated BSC methods, and many state regulations impact and restrict modular it would seem the BSC should support a clarifying definition like Item (D)

If you are an NAHB builder all of the other listed items are beneficial to the building process.

Kevin said...

Thank you Gary for keeping us informed.

Last night I viewed a new YouTube video regarding a CrossMod at a Freedom Home Retail location and while the home had the Interior/Exterior materials typical of a Modular Homes versus true Manufactured homes the cost for a 2000 Sf home was $159,400 +/-. The odd inference stated that the siding was installed to ground level more than once hid the fact it was on a steel frame and pier blocked. Price point marketing using bait and switch products that lacks in transparency in the sales approach.

As Gary's article stated the bill is suggesting local governments permit Manufactured Homes in SF zoned areas which has nothing to do with the limitations imposed by most CCR in PUD. National Political decisions are driven by Big Business and Special Interest and not what is best for all. If Manufactured Homes are in fact permitted in SF zoned areas of rural counties the overall value model would decrease the one major funding source most local governments depend on, that being real property taxes. Mass appraisal is much different than Fee Appraisal in that you don't always compare apples to apples in real time as data to support mass appraisal approaches is not as clean as fee appraisal for a single home appraisal. The data model to support Mass Appraisal arms length sales are minimal at best so by adding a HOME, no label, with a lesser consideration will impact IRC SF homes built in the same neighborhoods for mass appraisal valuation.

This approach will help introduce Affordable Homes however it will have a reverse approach in value on IRC homes in the same neighborhood by devaluing them and creating upside down mortgages during resales. Be careful what you ask for.

Before zoning in the county I reside in was adopted Manufactured Homes were dotting the landscape in mass and decreasing the tax base used to support school funding. Their initial zoning ordinance met resistance because it heavily restricted the placement of manufactured homes, the County was sued and the MHA won, hence the zoning ordinance was changed to permit Manufactured Homes in R1 areas by right and allowing existing MH to be replaced in any zone if done so within 2 years after power had been disconnected.

Well when you take the atypical sales lot of the folks manufacturing these CrossMod homes where there sales force knows nothing about construction begins the process of sale, in house financing, and possibly owning the lots they will be placed on you will see the real impact once the subdivision is complete. Cost does not equal market and just because in house financing got you into a home doesn't mean its worth what it was financed for, resales will become REO real quick and that will set the market value.

You guys/gals in the modular home business shouldn't worry to much about local governments allowing CrossMod zoning by right in mass in my humble opinion I would concentrate on the DeVALUE aspect and how it will impact local government funding. Anybody who purchased a mobile home in the eighties and nineties knows how bad it was for resales, almost as bad for Townhomes which were to solve the affordable housing issue and be a replacement for mobile homes purchases.

As always Gary you are working hard and keeping us proud. Thank you for permitting me to comment as my response may not be what most agree on and that is fine.

Anonymous said...

See article below, read to end, good info on how CrossMod got through the politics.

https://www.manufacturedhomepronews.com/warren-buffett-lieutenant-kevin-clayton-shows-off-hud-secretary-carson-touts-crossmod-manufactured-housing/