From White House Briefing Room:
- Boost the supply of manufactured housing and 2-4 unit properties by expanding financing through Freddie Mac. Along with Fannie Mae’s and the Federal Housing Administration’s (FHA) existing policies, these steps will enable more Americans to purchase homes, and increase the availability of rental units throughout the country.
Boosting the Supply of Manufactured Homes and 2-4 Unit Properties
Across the country, hundreds of thousands of families rely on manufactured housing and 2-4 unit properties to afford homeownership. Manufactured housing is constructed in factories and installed on site without the additional costs associated with traditional homebuilding, providing a vital affordable housing option. Owner-occupied 2-4-unit properties, where the owner occupies one of the units and rents the other units, are another source of additional rental housing, particularly in low-to-moderate income communities and communities of color. Limited financing for manufactured housing and 2-4-unit properties—as well as other barriers—have restricted access to these alternatives.
Today, the Administration is calling on state and local governments to reduce zoning and financing barriers to these kinds of housing – housing that allows families to achieve homeownership and build wealth. In addition, federal agencies are taking the following steps to increase financing options and boost availability, supply, and affordability for these types of properties:
- Making Financing More Available for Manufactured Housing: In 2020, FHFA authorized Fannie Mae to accept loan delivery on single-wide manufactured housing. An eligible single-wide, or single-section manufactured housing unit, is a factory-built rectangular structure placed on a permanent foundation and equivalent in quality and amenities to entry level stick-built housing. FHFA recently authorized Freddie Mac to accept eligible single-wide manufactured housing loan deliveries as well, which will make more financing available for such properties and facilitate the delivery of more manufactured homes. The Enterprises will continue performing industry-wide outreach and education about the eligibility of manufactured housing, modular, and factory-built homes. FHA also insures mortgages for single-wide manufactured homes that meet its programmatic requirements.
Working with State and Local Governments to Boost Housing Supply
While the federal government has a critical role to play in boosting the supply of affordable homes, state and local governments often play the primary role in setting policies that encourage – or in some cases, discourage – boosting housing supply. One of the most persistent factors depressing the supply of housing, especially entry-level and rental units, is exclusionary zoning laws and practices, like minimum lot size requirements, minimum square footage requirements, unnecessary parking requirements, prohibitions on or differing treatment for multi-family homes, accessory dwelling units, and manufactured housing, and limits on the height of buildings.
That’s why today, in addition to the zoning reform incentives included in the Build Back Better Agenda, the Administration is calling on state and local governments to take action to address zoning policies that have historically locked families out of communities and continue to limit housing supply.