Perception vs. Reality

PERCEPTION VS REALITY

Fire Safety

PERCEPTION:
Manufactured housing is more vulnerable to fire than other forms of single family housing.

REALITY:
Manufactured homes are no more prone to fire than homes built on site.

As a matter of fact, a national fire safety study conducted by the Foremost Insurance Company shows that site built homes are more than twice as likely to experience a fire than manufactured homes. According to this study, the number of home fires is 17 per 1,000 for site built homes, while only 8 per 1,000 for manufactured homes.

What is responsible for the improved safety of manufactured homes? Strict construction standards! Foremost Insurance Company's marketing research department took an in depth look into fire frequencies of manufactured homes built before the advent of HUD Code construction and safety standards, as well as homes built after the standards went into effect in 1976. Foremost's researchers found that post-HUD manufactured homes burn less often and have lower fire losses than pre-HUD manufactured homes.

Some fire resistance features of the HUD Code include strict standards for flame spread and smoke generation in materials, egress windows in all bedrooms, smoke detectors and at least two exterior doors, which must be remote from each other and reachable without passage through other doors that are lockable. Site built homes are required to have only one exterior door, and no "reach ability" requirements.

Some fire resistance features of the HUD Code include strict standards for flame spread and smoke generation in materials, egress windows in all bedrooms, smoke detectors and at least two exterior doors, which must be remote from each other and reachable without passage through other doors that are lockable. Site built homes are required to have only one exterior door, and no "reach ability" requirements.

Another report entitled "Fire experience in Manufactured Homes," by Dr. John R. Hall, Jr., which appeared in the May/June 1992 National Fire Protection Association Journal concluded that manufactured homes built to HUD standard present a much lower risk of injury than fires than unity's that were not built to HUD Code requirements. The study showed that in fires occurring between 1980 and 1989, the fire death toll per 100 fires in post HUD homes is two-thirds to three-fourths lower than pre HUD homes. The fire injury rate is approximately one-third lower than pre HUD homes for the same period of time.

Even thought the frequency of manufactured home fires is less than that of site built homes, the manufactured home fire is usually more severe in terms of property loss. Due to their size (usually smaller with smaller sized-rooms than site built homes), fires can spread more quickly.

Another explanation of this increased property loss has to do with the specialized nature of making repairs to damaged manufactured homes. Fire-damage repairs to a manufactured home would probably be more expensive than similar repairs made to site built homes.

Another factor for the severity of fires in manufactured homes is that there is a significantly higher percentage of manufactured homes in rural areas than in urban areas, while the percentage of the site built homes is much higher in urban areas. A fire located in a home located in a rural area has a greater chance of becoming a "total fire" because of the increased amount of time needed for fire equipment to reach the home since it may be outside of a fire protected zone.

Studies indicate that almost all fires in manufactured homes are related to human carelessness, disproving the assumption that the structure is at fault. The second leading cause of structural fires in manufactured homes include mechanical failures. These mechanical failures occur in site built homes as well.

The simple reality is that the manufactured housing industry has been successful in its efforts to produce a safe and fire-resistant home.

New Energy Ventilation Standards

PERCEPTION:
Manufactured homes are less energy efficient than site built homes and suffer moisture damage from inadequate ventilation.

REALITY:
On October 25, 1993, the Department of Housing and Urban Development (HUD) issued a final rule establishing new energy/ventilation standards for manufactured homes. These new standards, which took effect on October 24, 1994 revises the various sections of the HUD Code that deal with thermal protection, ventilation and moisture control.

Prior to this new energy rule, the thermal zone map for the United States , minus the states of Alaska and Hawaii, was comprised of two zones. With the new energy rule, the entire United States is divided into three thermal zones; the southeastern states are grouped from South Carolina to Texas in Zone I; the mid section of the nation is grouped from North Carolina across to California in Zone II; and the remaining northern part of the country is grouped together in Zone III.

The new standards rely on computer modeling to identify the optimum "cost effective" conservation levels for a home located in any of the three regions in the nation. In developing the standards, HUD followed Congress' mandate to establish standards that, "minimize the sum of construction and operation costs" over the life of the home. This emphasis on "lifecycle" energy costs is unique among national energy standards.

The manufactured housing industry has formulated innovative ways to meet the new energy standards. one way is a "cookbook" approach, in which the required use of energy for a particular zone is achieved through a standard design package. In this approach, the home comes with standard insulation levels in walls, floors and ceilings; standard windows and standard appliances. which as a package add up to meet the energy efficiency required in the zone.

Another approach allows consumers to choose from several options how they would like to achieve the optimum conservation package for their home, thus realizing greater savings on heating and cooling bills. For example, consumers could choose to purchase very energy efficient appliances, thus requiring less insulation in the homes ceilings, walls and floors.

The new energy standards are resulting in lower monthly energy bills, a factor industry officials say will enhance the affordability of manufactured housing. Improved home ventilation standards adopted in conjunction with the energy standards are improving indoor air quality and condensation control in manufactured homes. These efforts are ensuring that manufactured homes remain affordable, not only in startup costs, but for the life of the home.

Indoor Air Quality

PERCEPTION:
The relatively smaller living space in manufactured homes compared to site built homes sometimes leads to greater concentrations of indoor air contaminants, such as formaldehyde, that may pose human health problems.

REALITY:
Formaldehyde containing adhesives and binders are typically used in the manufacture of building products, such as plywood, oriented strand board, medium density fireboard and particle board, used in construction of homes--be they site built or manufactured. In addition, furnishings and carpet materials may contain formaldehyde. The off-gassing of formaldehyde from these materials decreases over time. For example, the "half-life" of releases from wood products has been reported to be two to three years; it is much less for other products.

In February, 1985, the US Department of Housing and Urban Development (HUD) established formaldehyde emission standards for plywood, and particleboard used in manufactured homes. The manufactured housing industry was required to place "Important Health Notices" in its homes, advising that proper ventilation was recommended in order to dilute indoor air contaminants. The site built housing industry has not followed this practice, even though significant levels of formaldehyde and other contaminants can be present in new site built homes. As a result of improved fire safety standards, by 1985 the manufactured housing industry had replaced wood based ceiling panels with gypsum board, which contains no formaldehyde.

For a number of years, the manufactured housing industry constructed its homes almost exclusively with urea-formaldehyde resin paneling and floor decking. In light of consumer and governmental concerns regarding exposure to formaldehyde off-gassing, the wood products industry modified its construction techniques during the past 15 years. Wood product manufacturers have continued to refine their techniques to the point that wood product off-gassing of formaldehyde has dropped significantly.

By 1991, the manufactured housing industry for the most part replaced urea-formaldehyde wall paneling with gypsum board. The vast majority of manufactured homes built today feature gypsum "dry wall" materials which do not pose a formaldehyde problem. In addition, a number of companies offer optional flooring materials, such as oriented strand board or plywood, which contain very, very low levels of formaldehyde off-gassing.

In 1994, HUD established improved whole house ventilation standards for manufactured homes, which require the manufacturer to install ventilation features that were optional for several years. With improved indoor air quality, two private sector consensus-standards writing committees have made recommendations to HUD to eliminate the "Important Health Notice."

Life Of Manufactured Homes

PERCEPTION:
Manufactured homes are not built as good as other forms of housing. Manufactured homes do not last as long as site built homes.

REALITY:
Manufactured homes are built with virtually the same construction materials and techniques as site built homes. The only difference is that manufactured homes are built in a factory environment, where building materials are protected from weather and vandalism. Manufactured homes are built to the Federal Home Construction and Safety Standards, better known as the HUD code, which is administered by the U.S. Department of Housing and Urban Development (HUD).

The HUD Code is unique since it is specifically designed for compatibility with the factory production process. Performance standards for heating, plumbing, air conditioning, thermal and electrical systems are set in the code. In addition, performance requirements are established for structural design, construction, fire safety energy efficiency and transportation from the factory to the consumer's home site.

To ensure quality, the design and construction of the home is monitored by HUD and its monitoring contractor, The National Conference of States on Building Codes and Standards (NCSBCS). The familiar red seal (the certification label) attached to the exterior of a manufactured home indicates that it has passed perhaps the most thorough inspection process in the homebuilding industry.

The Manufactured Housing Institute conducted a study in 1990 to examine how long manufactured homes are habitable. The study found that the habitable life of a manufactured home depends on the year of manufacture. This habitable life has increased from 10.4 years for homes built in 1945 to 41.8 years for homes shipped in 1964. This figure has held steady at the 41.8 year figure through 1989, and is expected to remain at that level into the future.

The year round occupancy life of the home, which takes account of the diversion to seasonal use as homes age, was 9.9 years for homes built in 1945. This year round occupancy life grew to 33.8 years for homes built in 1963, and has remained at about that figure ever since. The study forecast that this 33.8 year figure will hold steady into the future.

Appreciation & Depreciation

PERCEPTION:
Manufactured homes do not appreciate in value like other forms of housing. instead, manufactured homes depreciate in market value, similar to the way automobiles lose value each day.

REALITY:
While there is no one easy answer, recent data seems to suggest that manufactured homes can appreciate just like other forms of housing.

Datacomp Appraisal Systems recently completed a study in Michigan that looked at 185 manufactured homes in Michigan, comparing the average resale price several years later. The study found that average value of the home had increased by $190, from $26,422 new to $26,612 used. This average figure is misleading, in that 97 of the homes increased in value by an average of $2,985, while the remaining 88 decreased in value by an average of $2,822.

The only accurate conclusion is that some homes appreciate and some don't. Based on an analysis of 88,000 actual sales, Datacomp found that there are specific reasons why some homes appreciate while others depreciate. These reasons include: the housing market in which the home is located, which will have a significant impact on the future value of the home; the community in which the home is located, which will have a significant impact on the value of the home; the initial price paid for the home; the inflation rate, the availability and cost of community sites, which reflects the supply and demand influences on the homes value; and finally, the extent of an organized resale network, where an organized network will usually result in homes selling for a higher price than in markets without such an organized network.

The appreciation value of manufactured homes comes back to the old real estate axiom-- location, location, location. When properly sited and maintained, manufactured homes will appreciate at the same rate as other homes in surrounding neighborhoods.

Copyright 2008 Tennessee Manufactured Housing Association

PERCEPTION VS REALITY
Fire Safety PERCEPTION: Manufactured housing is more vulnerable to fire than other forms of single family housing. REALITY: Manufactured homes are no more prone to fire than homes built on site. As a matter of fact, a national fire safety study conducted by the Foremost Insurance Company shows that site built homes are more than twice as likely to experience a fire than manufactured homes. According to this study, the number of home fires is 17 per 1,000 for site built homes, while only 8 per 1,000 for manufactured homes. What is responsible for the improved safety of manufactured homes? Strict construction standards! Foremost Insurance Company's marketing research department took an in depth look into fire frequencies of manufactured homes built before the advent of HUD Code construction and safety standards, as well as homes built after the standards went into effect in 1976. Foremost's researchers found that post-HUD manufactured homes burn less often and have lower fire losses than pre-HUD manufactured homes.
Some fire resistance features of the HUD Code include strict standards for flame spread and smoke generation in materials, egress windows in all bedrooms, smoke detectors and at least two exterior doors, which must be remote from each other and reachable without passage through other doors that are lockable. Site built homes are required to have only one exterior door, and no "reach ability" requirements.
Some fire resistance features of the HUD Code include strict standards for flame spread and smoke generation in materials, egress windows in all bedrooms, smoke detectors and at least two exterior doors, which must be remote from each other and reachable without passage through other doors that are lockable. Site built homes are required to have only one exterior door, and no "reach ability" requirements. Another report entitled "Fire experience in Manufactured Homes," by Dr. John R. Hall, Jr., which appeared in the May/June 1992 National Fire Protection Association Journal concluded that manufactured homes built to HUD standard present a much lower risk of injury than fires than unity's that were not built to HUD Code requirements. The study showed that in fires occurring between 1980 and 1989, the fire death toll per 100 fires in post HUD homes is two-thirds to three-fourths lower than pre HUD homes. The fire injury rate is approximately one-third lower than pre HUD homes for the same period of time. Even thought the frequency of manufactured home fires is less than that of site built homes, the manufactured home fire is usually more severe in terms of property loss. Due to their size (usually smaller with smaller sized-rooms than site built homes), fires can spread more quickly. Another explanation of this increased property loss has to do with the specialized nature of making repairs to damaged manufactured homes. Fire-damage repairs to a manufactured home would probably be more expensive than similar repairs made to site built homes. Another factor for the severity of fires in manufactured homes is that there is a significantly higher percentage of manufactured homes in rural areas than in urban areas, while the percentage of the site built homes is much higher in urban areas. A fire located in a home located in a rural area has a greater chance of becoming a "total fire" because of the increased amount of time needed for fire equipment to reach the home since it may be outside of a fire protected zone. Studies indicate that almost all fires in manufactured homes are related to human carelessness, disproving the assumption that the structure is at fault. The second leading cause of structural fires in manufactured homes include mechanical failures. These mechanical failures occur in site built homes as well. The simple reality is that the manufactured housing industry has been successful in its efforts to produce a safe and fire-resistant home.

Indoor Air Quality PERCEPTION: The relatively smaller living space in manufactured homes compared to site built homes sometimes leads to greater concentrations of indoor air contaminants, such as formaldehyde, that may pose human health problems. REALITY: Formaldehyde containing adhesives and binders are typically used in the manufacture of building products, such as plywood, oriented strand board, medium density fireboard and particle board, used in construction of homes--be they site built or manufactured. In addition, furnishings and carpet materials may contain formaldehyde. The off-gassing of formaldehyde from these materials decreases over time. For example, the "half-life" of releases from wood products has been reported to be two to three years; it is much less for other products.
In February, 1985, the US Department of Housing and Urban Development (HUD) established formaldehyde emission standards for plywood, and particleboard used in manufactured homes. The manufactured housing industry was required to place "Important Health Notices" in its homes, advising that proper ventilation was recommended in order to dilute indoor air contaminants. The site built housing industry has not followed this practice, even though significant levels of formaldehyde and other contaminants can be present in new site built homes. As a result of improved fire safety standards, by 1985 the manufactured housing industry had replaced wood based ceiling panels with gypsum board, which contains no formaldehyde.
For a number of years, the manufactured housing industry constructed its homes almost exclusively with urea-formaldehyde resin paneling and floor decking. In light of consumer and governmental concerns regarding exposure to formaldehyde off-gassing, the wood products industry modified its construction techniques during the past 15 years. Wood product manufacturers have continued to refine their techniques to the point that wood product off-gassing of formaldehyde has dropped significantly. By 1991, the manufactured housing industry for the most part replaced urea-formaldehyde wall paneling with gypsum board. The vast majority of manufactured homes built today feature gypsum "dry wall" materials which do not pose a formaldehyde problem. In addition, a number of companies offer optional flooring materials, such as oriented strand board or plywood, which contain very, very low levels of formaldehyde off-gassing. In 1994, HUD established improved whole house ventilation standards for manufactured homes, which require the manufacturer to install ventilation features that were optional for several years. With improved indoor air quality, two private sector consensus-standards writing committees have made recommendations to HUD to eliminate the "Important Health Notice."