Manufactured Housing Institute

From: Subject: Manufactured Housing Institute Date: Thu, 14 Oct 2010 07:31:17 -0500 MIME-Version: 1.0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.manufacturedhousing.org/lib/showtemp_detail_print.asp?id=913 X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5994 Manufactured Housing Institute

MHI Sets=20 Industry Priorities for 2011

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During MHI=92s 74th Annual Meeting = on September=20 26-28, 2010 in Denver, CO, MHI members and Board of = Directors=20 outlined priorities for the industry and the = association in=20 preparation for 2011 and the incoming 112th Congress.=20

2010 has been a pivotal year for MHI and the = industry.=20 As the industry enters the fourth quarter and 2011, = the market=20 appears to have stabilized. However, significant = economic=20 headwinds, a fragile housing market, and an active = legislative=20 and regulatory environment still threaten the=20 industry.

The priorities detailed below = represent the=20 collective input of manufacturers, lenders, community = owners,=20 state associations, retailers and suppliers=97the = entire MHI=20 membership. It is important to note that MHI=91s = policy=20 focus is not limited to this list and remains engaged = on all=20 issues related to the industry.

State=20 association members, homeowners and residents = represent the=20 lifeblood of the industry. MHI will be giving special=20 attention to its grassroots mobilization efforts. MHI = will be=20 gearing up on effectively engaging these constituency = groups=20 and stressing the importance of direct member and = industry=20 involvement in the government relations process.=20

Priority: Financial Regulatory = Implementation and=20 Overhaul

The Dodd-Frank Wall Street Reform = and=20 Consumer Protection Act (H.R. 4173; P.L. 111-517) was = enacted=20 into law on July 21, 2010. The law is considered the = most=20 significant rewrite in decades of rules governing = banking and=20 financial services and will impact every financial = institution=20 and credit instrument in the nation.

One of the = most=20 visible and significant creations of the law is the=20 establishment of a new independent and autonomous = Consumer=20 Financial Protection Bureau (CFPB), housed within the = Federal=20 Reserve, that will regulate all consumer financial = products=20 and participants, including mortgages, credit cards, = banks,=20 payday loans and other financial products. =

Initial=20 estimates conservatively indicate the act will require = more=20 than 240 new rulemakings, nearly 70 new one-time=20 reports/studies, and more than 22 new on-going = studies. This=20 does not include the administration of existing = regulations=20 and laws that will be transferred to the new = CFPB=97there are=20 nearly 20 existing consumer/housing finance-related = laws that=20 will now fall under the new bureau=92s = jurisdiction=97or existing=20 rulemakings that were in progress at the time of the = bureau=92s=20 inception.

Provisions in this bill contain = significant=20 issues for lending in our industry. Addressing these = issues,=20 and correcting them, will be a primary focus in 2011.=20

Priority: SAFE Act = Implementation

The=20 Dodd-Frank Bill transfers jurisdiction and oversight = of a=20 number of mortgage-related laws from the Department of = Housing=20 and Urban Development (HUD) to the CFPB. Included in = the=20 regulatory transfer is the shift of enforcement over = the SAFE=20 Act from HUD to the CFPB. HUD maintains jurisdiction = over the=20 SAFE Act until the designated transfer date of July = 21, 2011.=20 It is unclear if HUD will issue a final rule on the = SAFE Act.=20 However, regulatory oversight of the statute will = eventually=20 shift to the CFPB.

The SAFE Act, and = uncertainty around=20 its application to many industries, including = manufactured=20 housing, remains a key issue to be resolved in 2011. = Achieving=20 clarity in application and making the SAFE Act more = relevant=20 to the manufactured housing industry will be a high = priority=20 in 2011.

Priority: GSE Reform and = Government=92s Role=20 in Housing

The U.S. Treasury Department is = required=20 to submit a report to Congress, no later than January = 31,=20 2011, on ending the conservatorship of Fannie Mae and = Freddie=20 Mac and reforming the housing finance system. For more = than a=20 decade, GSE and federal support of manufactured home = lending=20 and finance has been limited.

Even with strong = Congressional guidance in the Housing and Economic = Recovery=20 Act of 2008 (HERA) =97 which indicated the GSEs have a = duty to=20 serve the finance needs of the manufactured housing = market =97=20 little headway has been made to push GSEs into the = business of=20 establishing a secondary market for manufactured home = loans=20 secured by personal property.

While it is = unclear what=20 system may ultimately replace the GSEs or when this = may occur,=20 MHI must ensure than any system=97private, public or=20 public-private hybrid=97fully and adequately serves = the=20 liquidity needs of the manufactured housing industry.=20

The 112th Congress will bring with it a = significant=20 number of committee leadership changes, including = within the=20 Senate Banking and House Financial Services = Committees. GSE=20 reform will engage committee and party leaders at the = highest=20 levels.

MHI will need to actively engage = committee=20 members, administration officials and external = stakeholder=20 groups at the national and grassroots level to ensure=20 manufactured housing is on a level playing field in = any new=20 housing finance system.

Priority: Tax = Reform=20

Section 45L of the tax code provides a credit = of=20 $1,000 to manufacturers of Energy Star HUD Code = manufactured=20 homes and $2,000 for modular homes. The credit was = originally=20 enacted as part of the Energy Policy Act of 2005 and = for the=20 past several years has been extended on an = annual/temporary=20 basis. The credit officially expired December 31, = 2009.=20

MHI has worked to extend the credit for one = year as=20 part of tax extension legislation (H.R. 4213) that was = approved by the House in May 2010. The Senate has been = unable=20 to move the measure due to objections over the costs=20 associated with extending various tax cuts. =

MHI has=20 also worked with Sen. Olympia Snowe (R-ME) to = introduce=20 stand-alone legislation (S. 1637) that would increase = the=20 credit and extend it for three years. Congressman = David=20 Reichert (R-WA) has introduced similar legislation = (H.R. 4226)=20 in the House.

Regardless of whether tax = extenders=20 legislation is enacted during the 111th Congress, the = need to=20 pass an extension will again arise early in 2011. The = ability=20 to rely on the long-term availability of the new = energy=20 efficient home tax credit is of critical importance to = manufactured homebuilders. In addition, with energy = efficiency=20 standards potentially becoming more stringent the cost = to=20 builders to produce such homes will also = increase.

In=20 2011, MHI will work to pursue a strategy that: 1) = increases=20 the amount of the tax credit; 2) provides for a=20 long-term/permanent enactment of the tax credit; and = 3)=20 potentially monetizes the tax credit. MHI will also = examine=20 other options to provide maximum benefit to the = industry.=20

Priority: Energy Issues

In May = 2010, the=20 House adopted legislation (H.R. 5019) endorsed by MHI = that=20 would provide owners of manufactured homes constructed = prior=20 to 1976 with a rebate of up to $7,500 to use towards = the=20 purchase of a new Energy Star qualified manufactured = home and=20 provide up to $2,500 for decommissioning of the old = home.=20

The measure is based on legislation (H.R. = 1749)=20 developed by Rep. Baron Hill (D-IN) in collaboration = with MHI.=20 Sen. Jon Tester (D-MT) introduced similar legislation = (S.=20 1320) that was marked up by the Senate Environment and = Natural=20 Resources Committee on August 5, 2010.

While = there is=20 still ample opportunity for the measure to be enacted = this=20 Congress, if the measure is not adopted this = legislative=20 session it will remain a priority for passage during = the 112th=20 Congress.

EISA Energy Efficiency=20 Standards

The Energy Independence and = Security Act=20 of 2007 (EISA; P.L. 110-140) contains provisions = requiring the=20 Department of Energy (DOE) to establish and implement = energy=20 efficiency standards for manufactured housing (Sec.=20 413).

The bill specifically tasks the agency = with=20 developing regulations, in consultation with the = Department of=20 Housing and Urban Development (HUD), that are based on = =93the=20 most recent version=94 of the International Energy = Conservation=20 Code (IECC) and=20 that:

=95     take = into=20 consideration the design and factory construction = techniques=20 of manufactured = homes
=95     are=20 based on HUD-established climate=20 zones
=95     provide for=20 alternative energy efficiency practices=20
=95     are established = by 2011=20 (four years from the bill=92s date of = enactment)

MHI has=20 developed a legislative proposal that would place=20 responsibility for implementing energy efficiency = standards=20 developed by DOE within HUD and ensure that new = standards=20 strike a balance between energy efficiency and = maximizing=20 housing affordability for very low- and low-income = families.=20

While legislation has not yet been introduced, = the=20 112th Congress may yield opportunities to make = targeted=20 revisions to EISA. Despite significant policy = differences=20 between Democrats and Republicans on energy issues, = there is=20 the expectation that energy legislation of some form = could=20 potentially be enacted during the 112th Congress, = which could=20 present an opportunity to amend the EISA = statute.

For=20 more information, MHI members can contact Thayer Long = at tlong@mfghome.org.