Manufactured Housing

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Manufactured Housing

• Meeting Todays Housing Challenges

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What is Manufactured Housing?

• Homes built in a factory to the Federal
  Manufactured Home Construction Safety Standards
  (the HUD Code).
• The HUD Code is the only federally-regulated
  building code.
• Manufactured homes are built on a steel frame and
  may be single- or multi-section. They are
  substantially complete from the factory.
• The modules are transported to the site and
  installed.

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What is Manufactured Housing?

• The federal standards regulate manufactured
  housing design and construction, strength and
  durability, transportability, fire resistance,
  energy efficiency and quality.
• Manufactured homes can only be single-family
  dwellings.

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The Industrys Business Model

• Manufacturers, many of which are large national
  companies, build homes in factories.
• The manufacturer sells homes to manufactured home
  retailers that own and operate professional home
  sales centers.
• Consumers visit retail sales centers and purchase
  homes in inventory or custom order homes to fit
  their specific wants and needs.

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The Industrys Business Model

• Homes in inventory at the retail sales center and
  custom ordered homes are often financed through
  specialized national lenders.
• When the home goes to closing, the inventory
  lender and the retailer are paid for the home
  through the customers financing.

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Industry Need for Inventory Financing

• The current instability in the capital markets
  has caused the interruption of inventory
  financing from the large national finance
  companies that specialize in this line of
  business.

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Industry Need for Inventory Financing

• Many retailers in the industry already work with
  local banks to provide part or all of the
  financing they need for inventory.
• Additionally, those retailers that have not
  worked with local banks to provide financing for
  their customers, are looking to them for
  permanent home financing as well.

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• Quick Facts from 2008
• 18 Million people live in manufactured homes.
• Average household size is 2.8 persons.
• 74 of new manufactured homes are sited on
  private property and the remaining are sited in
  land-lease communities.

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• Quick Facts from 2008
• Age of Household Head
• Less Than 30 8
• 30-39 20
• 40-49 25
• 50-59 25
• 60-69 16
• 70 and older 8

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• Quick Facts from 2008
• Annual Household Income
• Less Than 10,000 5
• 10,000-19,999 14 20,000-29,999 21
• 30,000-39,999 18
• 40,000-49,999 16
• 50,000 and over 27

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• New Manufactured Homes
• Size Cost
• Average square footage 1600 sq. ft.
• Single-section 1100 sq. ft.
• Multi-section 1775 sq. ft.
• Average sales price 65,100
  (structure only)
• Single-section 37,200
• Multi-section 74,100

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Todays Manufactured Home
Has So Much to Offer!
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• Manufactured homes offer the same interior and
  exterior design options as site-built often
  with greater customization than production
  site-built.
• Common features of todays homes include

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Large living family rooms with built-ins
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Hardwood floors, drywall throughout, and features
like fireplaces
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Tray ceilings in bedrooms, living rooms and
dining rooms
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Spacious customizable kitchens and stainless
steel appliances
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with hardwood cabinets and solid surface counter
tops
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Large multipurpose spaces
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Large master bedrooms
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.and spacious bedrooms for the entire family
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Spacious master baths
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On the exterior - porches, garages and steeper
roofs
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Todays Manufactured Home
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Todays Manufactured Home
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Todays Manufactured Home
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Todays Manufactured Home

• Is aesthetically compatible with many existing
  neighborhoods.
• Results in cost savings due to factory
  efficiencies.
• Shortens construction time significantly.
• Delivers the home that home buyers want.

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Manufactured Homes Offer

• Home costs of 10-35 less than site-built homes.
• Same features and amenities as site built.
• More flexible, affordable, customization than
  comparable site-built homes.
• Same building materials and quality engineered
  design.
• Home warranties equal to or better than
  site-built homes.

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Can We Work Together to

• Meet the demands of affordable housing needed
  today.
• Ensure the continued operation of the retail
  sales center business model through inventory
  financing.
• Provide home financing needed by manufactured
  home buyers.
• Explore opportunities for other relationships
  with retailers and/or home buyers, such as real
  estate finance, credit cards and other types of
  personal and business financial services.