[Congressional Record Volume 141, Number 148 (Thursday, September 21, 1995)]
[Extensions of Remarks]
[Page E1825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          MANUFACTURED HOUSING

                                 ______


                          HON. ELTON GALLEGLY

                             of california

                    in the house of representatives

                      Thursday, September 21, 1995

  Mr. GALLEGLY. Mr. Speaker, earlier this year, President Clinton and 
HUD Secretary Cisneros announced on new program to help thousands of 
families realize the American dream of homeownership.
  Calling on all national housing-related organizations to form a 
partnership for this national homeownership strategy, the President set 
a goal of creating 8 million additional American homeowners over the 
next 5 years. The accomplishment of this goal will have dramatic 
effects on those young families setting out on the quest for the 
American dream, will stimulate the real estate and home building 
industries, and will strengthen the economy through the ripple effect 
on the secondary and tertiary industries which rely on homebuilding and 
resale.
  One of the industries which can play a major role in the achievement 
of the President's goal is the manufactured housing industry. Last 
year, more than 300,000 homes sold in the United States were 
manufactured homes. As younger families come into the market for a 
home, and as the population in this Nation ages, and shifts to 
retirement communities, manufactured housing will become the preferred 
housing for thousands of citizens looking for quality housing at an 
affordable price.
  The ability of the manufactured housing industry to continue to 
provide quality, affordable housing will depend most directly on the 
industries ability to loosen the regulatory stranglehold currently 
imposed by the Department of HUD.
  Over the last 20 years, the manufactured housing industry has evolved 
from one providing a temporary, mobile dwelling to a sophisticated, 
highly efficient producer of permanent housing. Unfortunately, the 
regulatory apparatus ensconced within HUD has not kept up with the 
changing industry on a timely basis. It is time for a change.
  As the Congress contemplates the overall future of HUD, certain small 
steps could be taken now to reinvent the oversight of Federal housing 
programs. Since the manufactured housing industry received no Federal 
funds, the issue is how to recreate a regulatory body which would 
regulate and enforce manufactured housing codes and regulations while 
maintaining some oversight by HUD or whatever new housing agency would 
be created.
  Three years ago, the Congress created a Commission which was tasked 
to look into the industry and make recommendations. The Commission did 
propose that a new consensus committee or office be created which would 
oversee the industry in a more efficient, less bureaucratic manner. I 
believe it is time to create such an entity.
  A new manufactured housing committee or office created outside of 
HUD, would be comprised mostly of representatives of the industry, but 
could include local authorities and a consumer watchdog. The Secretary 
or Housing Administrator, could appoint one committee member to serve 
as his liaison who would shuttle regulatory recommendations back and 
forth between the Housing Administrator and the industry. Current 
Federal uniform building codes and its enforcement program would be 
maintained but the committee would be empowered to contract with a 
private organization to be its code enforcement authority and it would 
continue the current practice of imposing fees on the industry 
membership in order to fund the committee's operation and its outside 
contracts.
  Finally, any legislation creating such a new system should remove 
unnecessary restrictions, such as the permanent chassis requirement, 
which would help lower the cost of producing these homes. In fact, 
recent action taken by the California State Assembly called on the 
Congress to take just such action on the chassis issue. I am enclosing 
a copy of the joint resolution passed by the State legislature.

   Assembly Joint Resolution No. 7--Relative to Manufactured Housing

                      legislative counsel's digest

       AJR 7, Hauser. Manufactured housing.
       This measure would memorialize the President and the 
     Congress of the United States to amend the definition of 
     ``manufactured home'' in federal law to allow these homes to 
     be designed to accommodate a removable chassis, so long as 
     the home is intended to be permanently sited on a foundation 
     and so long as the floor system is designed to accommodate 
     appropriate design loads.
       Whereas, Manufactured homes constructed pursuant to the 
     National Manufactured Housing Construction and Safety 
     Standards Act provided an important source of nonsubsidized 
     affordable housing to Californians; and
       Whereas, The State of California is a national leader in 
     efforts to encourage and expand the use of manufactured 
     housing by eliminating unnecessary regulatory barriers and by 
     developing and encouraging innovative land use and financing 
     policies; and
       Whereas, The State of California has deemed manufactured 
     homes a permitted use in all residential zoning districts, 
     subject to the same development standards applicable to other 
     dwellings in that zoning district; and
       Whereas, Construction and safety standards for manufactured 
     homes are established in federal law and regulation and all 
     such standards preempt local and state codes; and
       Whereas, The federal Manufactured Home Construction and 
     Safety Standards have been determined by the State of 
     California to meet or exceed performance standards 
     established for other dwellings; and
       Whereas, Federal law requires every federally certified 
     manufactured home to be constructed on a chassis which must 
     remain a permanent feature of the home's substructure; and
       Whereas, The chassis is not necessary for the home's 
     structural integrity if the home is sited on a permanent 
     foundation and the home's floor system is designed to 
     accommodate appropriate design loads; and
       Whereas, This mandatory feature represents an unnecessary 
     regulatory barrier to greater design flexibility for 
     manufactured homes; and
       Whereas, This regulatory barrier prevents innovative uses 
     of manufactured homes to meet the demand for affordable 
     housing in California; and
       Whereas, This regulatory barrier prevents manufactured home 
     producers from developing a recycling program for chassis 
     systems which could save consumers between $1,000 and $2,000 
     per home; now, therefore, be it
       Resolved by the Assembly and Senate of the State of 
     California, jointly, That the Legislature of the State of 
     California respectfully memorializes the President and the 
     Congress of the United States to amend the definition of 
     ``manufactured home'' in federal law to allow such homes to 
     be designed to accommodate a removable chassis, so long as 
     the home is intended to be permanently sited on a foundation 
     and so long as the floor system is designed to accommodate 
     appropriate design loads; and be it further
       Resolved, That the Chief Clerk of the Assembly transmit 
     copies of this resolution to the President and Vice President 
     of the United States, to the Speaker of the House of 
     Representatives, to each Senator and Representative from 
     California in the Congress of the United States, and to each 
     member of the House Committee on Banking, Housing, and 
     Financial Services, the Senate Committee on Banking and Urban 
     Affairs, and the House and Senate appropriations 
     subcommittees on HUD/VA and independent agencies.

  Mr. Speaker, if we as a Nation are going to succeed in this new 
strategy to help thousands a Americans realize their dream of 
homeownership, the manufactured housing industry must play an important 
role in providing quality homes at an affordable price. To start this 
process, the industry must be removed from the regulatory burdens 
placed on its operation by a Federal bureaucracy which cares little for 
the industry and shows no interest in an efficient system of regulation 
and enforcement.

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