NeighborWorks Montana is working to promote the use of manufactured housing as affordable housing for low and moderate income families, with the concept that quality manufactured housing is an appreciating asset when properly financed, placed on land that is owned or under a long-term lease, and placed on a proper foundation.

NWMT believes that as the home begins to appreciate, it allows rural low- and-moderate income families to build wealth and attain greater financial security. Manufactured homes provide a model of homeownership for rural states, where small communities are shrinking, quality housing is lacking and construction costs exceed appraisals.

Small rural communities in Montana are in danger of losing their schools and economic base with more families moving due to lack of affordable, quality housing. Rural towns are underutilizing public school buildings as the student population decreases when families migrate to larger cities to find housing. In isolated areas, construction costs are higher than appraised value as manpower and materials must be trucked to the rural sites. Manufactured homes answer the need for new housing at affordable prices and provide a stabilizing factor to the community.

Manufactured housing subdivisions will provide new, quality units to alleviate overcrowding and replace substandard homes. A monthly homeowner fee will pay for snow removal, clean-up, and landscaping, assuring that the subdivision is at all times kept visually pleasing. Covenants, agreed upon by the homeowners will regulate exterior additions, vehicles, landscaping, and outbuildings.

Take-out financing for the purchasers of homes will be provided by the Montana Board of Housing, an MHN partner with a great deal of manufactured housing financing experience. Fully 25% of MBOH’s new construction in 2004 was manufacturing housing. MBOH uses the FHA requirements for siting and foundations for approval of manufactured housing loans. MHN will be able to use a special set-aside of MBOH funds for take-out financing, currently available at 5% interest. Other funds available for take-out financing are state HOME funds, which can be used to create due-on-sale mortgages for gap financing for lower income families.