HUD Increases Minimum SAA Payment

HUD building Brian Montgomery Deputy Minimum SAA payments

Minimum Per Section Compensation Goes from $2.50 to $14 for Participating States

HUD CDBG for Coronavirus
HUD Secretary Ben Carson

The Department of Housing and Urban Development recently published a final rule in the Federal Register to take effect Dec. 14 that increases payments to states participating as State Administrative Agencies in the department’s manufactured housing program.

Participating and compliant State Administrative Agencies in the 33 U.S. states that carry out manufactured housing oversight programs will see the minimum per home section federal payment increase from $2.50 to $14.

Manufactured housing programs in the state of Florida, where there are eight homebuilding facilities, may see increased annual revenue of about $70,000, the Florida Manufactured Housing Association recently stated.

The minimum $9 payment per shipment of a home within or into a state for participating agencies will remain.

“More than 22 million Americans have used manufactured homes as a means of attaining the stability and financial independence of homeownership, particularly in areas where housing affordability is a challenge,” HUD Secretary Ben Carson said. “Making sure that states are appropriately compensated for the work they do to ensure the safety and affordability of these manufactured homes, for families within their own communities, is both right and responsible.”

The goal for the final rule placed to the Federal Register is that the revised payment formula in the Manufactured Home Procedural and Enforcement Regulations will make the payout more commensurate with the level of manufactured housing production and the associated work performed in a state when a manufactured home is produced an installed.

In addition to the per-floor increase, HUD for the first time in two decades will allow participants that have received conditional approval to receive fiscal year-end supplemental payments for work performed.

“This is another example of HUD reducing barriers to the adoption of manufactured housing as an affordable housing alternative,” said Assistant Secretary for Housing Dana Wade. “States are valuable partners in this process. We believe this change will strengthen existing partnerships, incentivize more states to participate in the program, and reduce the reliance on federal resources for activities that are more appropriately handled at the state and local level.”

Advance Notice of Proposed Rulemaking

HUD also published an Advance Notice of Proposed Rulemaking for public comment on additional refinements to state payments. The considerations include additional options to fund state participation in a way that recognizes contributions and incentivize participation in the manufactured housing program.

HUD’s Office of Manufactured Housing Programs administers the National Manufactured Housing Construction and Safety Standards Act of 1974 which authorizes HUD to establish federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. The standards are carried out directly or through states that have partnered with HUD to inspect factories and retailer lots, implement installation standards for the homes, and administer a dispute resolution program.