Friday, June 12, 2015

Modular Park Models with Porches Now Fall Under HUD Regs

April 1, 2015 was a bad day for modular home factories and manufactured home factories that build Park Model homes. These homes, 399 sq ft or less, are exempt from the Federal Government’s HUD regulations and fall under RV regs.

That changed when Pamela Beck Danner, administrator of the Office of Manufactured Housing Programs at HUD, sent out a memo stating that Park Models must include the sq ft of porches installed on these tiny houses and if that takes it above 400 sq ft the units fall under HUD regulations.

This changes both the types of loans needed for financing and how the units are taxed once they’re owned. It could also raise the cost of park models if manufacturers have to produce and ship porches separately.

Park models technically are mobile in that they have wheels and a chassis that allows them to be moved. But buyers typically have the manufacturer deliver them directly to a quasi-permanent site, such as a campground, where they stay each year. 

With the rapid interest in Tiny Houses, the Park Model has become a great way for many people to have a quality tiny house. The primary reason for the Park Model is placement in campgrounds and RV parks.

The problem with built-in porches arises after the home is delivered and set. These porches are being closed in and converted to living space without the proper codes being used.

Many modular home factories have Park Models listed in their floorplans, so this ruling will effect them.

1 comment:

Matt Wald, RVIA said...

This information is not correct.

Administrator Danner issued a second memorandum dated Jan. 20, 2015 announcing that HUD will *not* be enforcing its interpretation that park model RV porches count toward the 400-square-foot limit on those types of RVs until new regulations defining RVs are published: