[Congressional Record Volume 145, Number 108 (Wednesday, July 28, 1999)]
[Senate]
[Pages S9541-S9543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY (for himself, Mr. Bayh, Mr. Bryan, Mr. Rockefeller, 
        and Mr. Bingaman):
  S. 1452. 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.


                 MANUFACTURING HOUSING IMPROVEMENT ACT.

 Mr. SHELBY. Mr. President, today I rise to introduce a 
bipartisan bill with my colleagues, Senators Bayh, Bryan, Rockefeller 
and Bingaman. 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 majority of new manufactured homes of 
today are completely different from those of twenty or even ten years 
ago, and that this is the fastest growing segment of the housing 
industry. Today nearly one out of four new single family homes is a 
manufactured home, and the industry recently set a twenty-year sales 
record. There are good consumer-oriented reasons for this tremendous 
growth--manufactured homes offer quality and aesthetically pleasing 
housing at an average cost of $41,100, 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.
  With 5.3 million American households in need of affordable housing, 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 the 
Federal Manufactured Home Construction and Safety Standards. In 
addition, the committee would be authorized to interpret the standards 
and recommend appropriate regulations. Consumers will still be 
protected by HUD because the Secretary will have absolute authority to 
reject any recommendations, for any reason, submitted by the consensus 
committee.
  The Manufactured Housing Improvement Act would authorize the 
Secretary of HUD to use industry label fees for the administration of 
the consensus committee and the hiring of additional HUD staff in order 
to assure adequate consumer protection. The Secretary of HUD would also 
be authorized to use industry label fees to facilitate the availability 
and affordability of manufactured homes.
  This legislation is a very significant step forward in that both 
consumer and industry groups such as the Seniors Coalition, 60 Plus, 
and the Council for Affordable and Rural Housing, the National 
Association of Affordable Housing Lenders, the North American Steel 
Framing Alliance, and the Community Associations Institute, along with 
the Manufactured Housing Institute and the Manufactured Housing 
Association for Regulatory Reform, have endorsed this legislation.
  The industry participants have modernized the quality and technology 
of manufactured housing. It's time for Congress to modernize the laws 
that regulate an industry that provides affordable housing and 
contributes more than $33 billion annually to our nation's economy.
  Similar legislation passed the House at the end of last Congress on a 
bipartisan basis under suspension of the

[[Page S9542]]

rules and has been introduced again this year. I hope this year the 
Senate will take the lead and send the MHIA to the House as soon as 
possible.
 Mr. BAYH. Mr. President, I am pleased to join with my 
colleague from Alabama, Senator Shelby, to introduce the Manufactured 
Housing Improvement Act. This important legislation is designed to 
ensure that the manufactured housing industry continues to provide 
safe, affordable housing by modernizing the requirements under the 
National Manufactured Housing Construction and Safety Standards Act of 
1974. The bill also provides the Department of Housing and Urban 
Development (HUD) with the resources necessary to meet its obligations 
to manufactured homeowners.
  Manufactured housing has evolved significantly in the last twenty-
five years; it's no longer the stereotypical mobile home. In fact, the 
vast majority of manufactured homes installed today are never moved 
once they have been sited. At an average cost of $40,000 for a new 
manufactured home, excluding land, manufactured housing is the fastest 
growing sector of the housing industry. One in every four new single 
family homes sold in the United States is a manufactured home. 
Manufactured housing provides many American families with the 
opportunity to not only own their own homes, but to live in safe, 
comfortable, and affordable housing. In addition, improvements in 
construction have led to the development of aesthetically pleasing 
homes. Most manufactured homes built today are manufactured to resemble 
traditional site built homes and are enjoyed by an array of Americans, 
including first time home buyers, senior citizens, and single parent 
families. Manufactured housing is an industry that not only provides 
affordable housing but also creates jobs. In my home state of Indiana, 
the manufactured housing industry employees more than 20,000 Hoosiers 
and has a total economic impact in my state of nearly $3 billion per 
year.
  The Manufactured Housing Program at HUD, which oversees the industry, 
has faced many administrative challenges in the last decade. Lack of 
resources has prevented the program from keeping up with the changing 
needs of manufactured housing. While the industry has voluntary 
implemented numerous code changes in recent years, many requests to 
review standards or regulations currently await action by HUD or have 
taken numerous years to process, because of inadequate resources at the 
Department. Ten years ago, the number of HUD employees assigned to this 
program was 34. Today, only 8 HUD employees are responsible for this 
program. With the rapid growth in housing technology, it is imperative 
that HUD not only address these standards but do so in a timely 
fashion, allowing the industry to remain competitive while providing 
homeowners with the most advanced housing technology.
  Our legislation will remedy this situation by modernizing the program 
by implementing procedures in which all proposed construction and 
safety standards are addressed and considered in a reasonable time 
frame. The Manufactured Housing Improvement Act requires that action on 
any proposed standard or regulation be taken within one year after it 
has been proposed to the Secretary. This is an important provision. It 
requires the Secretary to act, but protects consumers by authorizing 
the Secretary to reject any proposal which is deemed to be adverse to 
consumers.
  Finally, through the use of industry labeling fees, this legislation 
provides economic resources to the Secretary for the hiring of 
additional HUD program staff. The costs of operating this program and 
the re-staffing of the manufactured housing program will continue to be 
borne by the manufactured housing industry, not the taxpayer. I note 
that the industry is willing to bear this expense in order to improve 
the efficiency of the regulatory system.
  As we strive to ensure that all Americans have access to safe, 
affordable, and quality housing, we need to ensure that best practices 
are applied to the housing industry and that we support the 
modernization of housing technology. Manufactured housing is a valuable 
housing resource and provides access to home ownership for many 
Americans. I look forward to working with my colleagues to enact this 
legislation.
 Mr. ROCKEFELLER. Mr. President, Once again, I am joining 
Senator Shelby and other colleagues to introduce legislation intended 
to strengthen the manufactured housing industry. Manufactured housing 
provides a major source of affordable housing for American families, 
including seniors. This industry represents almost thirty percent of 
new single-family homes sold in the United States. In my state of West 
Virginia, manufactured housing represents over 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 who, according to a national survey, forty-five 
percent of households living in manufactured homes are headed by a 
person over 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, and 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 34 staff members at its peak to less than a dozen 
professional staff now. 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. In fact, between 1989 and 1996, a 
consensus committee made 140 suggestions to HUD about changes for the 
federal codes on manufactured housing, and 80 of these provisions are 
still pending in the Department. For example, the 1999 National 
Electrical Code has new, state-of-the-art standards but given staffing 
shortage, how long will it take to update the electrical standards? 
Shouldn't we address the staffing shortage, and get action on the 
lingering recommendations?
  In 1990, Congress established a National Commission on Manufactured 
Housing, and pushed the commission to forge 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 consensus 
and improve legislation. I believe that we must work hard to forge 
consensus among 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. Also, if the industry uses new standards to provide better 
housing, manufactured housing could be designed to meet a wider variety 
of needs including modules for assisted living.
  The current system of regulations and oversight is not working for 
the industry, nor is it working as well as it should for consumers, 
according to a survey by seniors. But when there are problems and 
concerns, all groups need to work together on a strategy for change.
  This legislation is intended to promote reform that will help both 
the industry and the consumers of manufactured housing. My hope is that 
all sides will work together to forge consensus about reform.
  We should use this as an opportunity to come together and develop a 
new, improved strategy 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.

[[Page S9543]]

 Mr. BINGAMAN. Mr. President, I am pleased to rise today as a 
cosponsor of the Manufactured Housing Improvement Act. This Act has 
come about as a result of much negotiation between buyers of 
manufactured housing, the Housing and Urban Development Agency and 
manufacturers and dealers of manufactured housing. I commend the 
industry for coming to Congress with its plan to modify the Federal 
Manufactured Home Construction and Safety Standards Act of 1974. Over 
twenty years has elapsed since we comprehensively addressed the topic 
of safety and manufactured housing. Manufactured housing has changed 
significantly in the past twenty years. With the rise in the number of 
buyers of manufactured housing, it is time we ensure that safety 
standards are up-to-date and adequate to address consumers' concerns.
  The Senate bill has eleven sections that cover everything from the 
establishment of a Consensus Committee to a section encouraging 
secondary market securitization programs for FHA manufactured home 
loans and other loan programs. The new Consensus Committee will consist 
of 25 voting members and one non-voting member representing the 
Secretary of HUD. The Committee will represent a wide spectrum of 
interested parties, including but not limited to, home producers, 
retailers, lenders, insurers, consumers, consumer organizations, local 
public officials, and fire marshals. The Committee will be responsible 
for recommending amendments to the current safety standards and 
enforcement regulations to HUD.
  Most notably, there is no funding being authorized in this bill. The 
Secretary of HUD is authorized to use the industry label fees to carry 
out the responsibilities under the Act and to administer the Consensus 
Committee.
  Not only does manufactured housing provide an affordable housing 
option for New Mexicans, the overall economic impact of the 
manufactured housing industry on New Mexico is significant. In 1998, 
the total economic impact on the state was over $264 million. Although 
most New Mexicans are familiar with the 157 retailers in the state, 
many are not aware that we also have two manufacturers located in the 
state. Last year, these manufacturers produced over 1,000 homes and the 
entire industry was responsible for employing more than 2,000 people. 
Anyone driving the highways of New Mexico is familiar with the site of 
a manufactured home moving across Interstate 40 or Interstate 25. 
However, many New Mexicans may not know that almost 7,000 homes were 
shipped into the state in 1998 alone.
  Manufactured housing serves an important role in New Mexico. With the 
rising cost of homes in the metropolitan areas, and even in the smaller 
northern communities, manufactured housing that have an average cost of 
only $42,900 enable many more individuals and families to become 
homeowners. Currently, 41.8% of the housing in New Mexico is 
manufactured housing.
  I think this bill is important not only to New Mexico but to all 
owners of manufactured housing. With a focus on construction safety 
standards, consumers will be safer and more secure in their new homes. 
Both the manufactured Housing Industry and the Congress need to take 
the concerns raised in the survey conducted by the American Association 
of Retired Persons seriously. The Consensus Committee created by this 
bill will play an important role in raising the standards for 
construction and safety. I hope the Committee thoroughly evaluates the 
construction concerns and safety issues raised by those responding to 
AARP's survey. It is critical to the success of this program that the 
owners, the builders and the regulators work together to achieve a 
higher level of safety and consumer satisfaction.
  I thank Senator Shelby for introducing this bill and I encourage the 
Senate to take up this bill and pass this worthwhile 
legislation.
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