[Congressional Record Volume 144, Number 73 (Tuesday, June 9, 1998)]
[Senate]
[Pages S5787-S5788]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY (for himself, Mr. Rockefeller, and Ms. Moseley-
        Braun):
  S. 2145. A bill to modernize the requirements under the National 
Manufactured Housing Construction and Safety Standards Act of 1974 and 
to establish a balanced consensus process for the development, 
revision, and interpretation of Federal construction and safety 
standards for manufactured homes; to the Committee on Banking, Housing, 
and Urban Affairs.


                  manufactured housing improvement act

 Mr. SHELBY. Mr. President, today I introduce a bipartisan bill 
with my colleagues, Senators John Rockefeller and Carol Moseley-Braun. 
Entitled the ``Manufactured Housing Improvement Act,'' (MHIA) this bill 
is designed to modernize the requirements under the National 
Manufactured Housing Construction and Safety Standards Act of 1974 and 
to establish a balanced consensus process for the development, 
revision, and interpretation of Federal construction and safety 
standards for manufactured homes.
  Many do not realize that the manufactured homes of today are 
completely different from those of twenty or even ten years ago. They 
also do not realize that this is the fastest growing segment of the 
housing industry, and that it accounts for one out of every three new 
single family homes sold. Between 1980 and 1990, the industry 
experienced a 60 percent growth in market share, and last year set a 
twenty year sales record. There are good consumer-oriented reasons for 
this tremendous growth--manufactured housing offers quality and 
aesthetically pleasing housing at an average cost of $37,300, excluding 
the land. Today, manufactured housing has lowered the threshold to the 
American Dream of home ownership for millions of Americans, including 
first-time home buyers, senior citizens, young families, and single 
parents.
  At a time when home ownership is becoming harder for the average 
American to attain, and with more than 5.3 million Americans paying 
more than 50 percent of their incomes on rent, I believe it is 
imperative to update the laws that regulate the private sector solution 
to affordable housing. In order for the manufactured housing industry 
to remain competitive, Congress must modernize the National 
Manufactured Housing Construction and Safety Standards Act of 1974.
  My bill would do just that. MHIA would establish a consensus 
committee that would submit recommendations to the Secretary of Housing 
and Urban Development (HUD) for developing, amending and revising both 
the Federal Manufactured Home Construction

[[Page S5788]]

and Safety Standards. This provision will allow the manufactured 
housing industry to update and create applicable building codes and 
standards just like other participants in the housing industry. In 
addition, the committee would be authorized to interpret the standards, 
thereby eliminating confusion and uncertainty in the market place.
  The Manufactured Housing Improvement Act would authorize the 
Secretary of HUD to use industry labeling fees for the administration 
of the consensus committee and the hiring of additional HUD staff. The 
Secretary of HUD would also be authorized to use industry label fees to 
promote the availability and affordability of manufactured housing.
  This legislation is a very significant step forward in that both the 
Manufactured Housing Institute and the Manufactured Housing Association 
for Regulatory Reform endorse this legislation. The industry 
participants have modernized the quality and technology of manufactured 
housing. Congress must now modernize the laws that regulate an industry 
that provides affordable housing and contributes more than $23 billion 
annually to our nation's economy.
 Mr. ROCKEFELLER. Mr. President, I join today with Senator 
Shelby to introduce legislation intended to strengthen the manufactured 
housing industry. Manufactured housing provides a major source of 
affordable housing for American families and seniors. This industry 
represents almost 30 percent of new single-family homes sold in the 
United States. In my state of West Virginia, manufactured housing 
represents more than 60 percent of new homes.
  Manufactured housing should play a strong role to increase the 
availability of affordable housing. This issue will be especially 
important to seniors. According to a recent national survey, 45 percent 
of households living in manufactured homes are headed by a person more 
than 50 years old.
  Manufactured housing is affordable housing, and it is the fastest 
growing type of housing nationally. The average cost of a new 
manufactured home without land in 1997 was $38,400. Even with land and 
installation fees, this cost is well below the typical costs of a newly 
constructed site-built home.
  But this industry faces challenges. Unlike other housing, 
manufactured housing is regulated by the 1974 National Manufactured 
Housing Construction and Safety Standards Act by the Department of 
Housing and Urban Development, (HUD). Because of reform in HUD 
management, the federal officials overseeing manufactured housing have 
declined from a staff of 34 to only eight. This decline in staff has 
occurred at the same time that the industry has grown. Unfortunately, 
due to a lack of staff, HUD cannot keep pace with the need to update 
the code on a consistent basis and timely manner. For example, there 
are new nationally recognized standards for fire protection prepared by 
the National Fire Protection Association and endorsed by the National 
Institute for Standards and Technology (NIST). However, there is no 
indication that HUD is ready to act on using these new standards to 
upgrade its codes for manufactured housing. In fact, between 1989 and 
1996, a consensus committee has made 140 suggestions to HUD about 
changes for the federal codes on manufactured housing. More than 80 of 
these provisions are still pending in the Department.
  In 1990, Congress established a National Commission on Manufactured 
Housing and pushed the commission to forge a consensus on key issues 
for this important industry. Unfortunately that effort collapsed in 
1994.
  This legislation is a new effort to address the challenges facing the 
industry. Introduction of the bill is just a first step. We all 
understand that the legislative process is designed to seek a consensus 
and improve legislation. I believe that we must work hard to forge a 
consensus between the industry and the consumers. This will be a 
challenge, but the potential rewards can be great for both sides. The 
industry can win and prosper with a more effective, streamlined 
regulatory process that keeps pace with improvements and standards. 
Consumers will win if safety standards and regulations are adopted more 
efficiently, such as the pending fire safety standards. Also, if the 
industry can use newer standards to provide better housing, 
manufactured housing could be designed to meet a wider variety of needs 
including modules for assisted living and stack able units for urban 
sites.
  My hope is that all sides will see this legislation as an opportunity 
to come together and develop a new, improved program for manufactured 
housing. Affordable housing is a major issue for families and 
communities. Manufactured housing is playing a key role in affordable 
housing, but more could and should be done. To achieve success, we need 
to develop a bipartisan, consensus approach. We need to help the 
industry and assure consumers that safety and standards will be 
retained and improved, not weakened. This is worth our combined effort 
to provide more affordable housing.
                                 ______