The large spending package that Congress has agreed on in order to avoid a government shutdown includes three provisions that MHI has advocated for—extension of the Energy-Efficient New Home Tax Credit (45L Tax Credit), a directive that HUD issue guidelines to local authorities receiving federal funding to consider manufactured housing, and a mandate that HUD issue a final rule revising the minimum payments to State Administrative Agencies (SAAs) under the Manufactured Housing Construction and Safety Standards Act (MHCSS Act). The $1.4 trillion spending deal was signed by the President by the December 20 deadline.

Energy-Efficient New Home Tax Credit (45L Tax Credit)
The spending package extends the 45L Tax Credit, which expired in December 2017, through 2020 and makes the credit retroactive for all 2018 and 2019. MHI has been a consistent voice on Capitol Hill advocating strongly for the extension of this tax credit. MHI has worked with the House and Senate tax committees almost every year to advocate for the annual extension of this credit, and it was a key talking point during MHI’s Legislative Fly-In this past June. Under the 45L Tax Credit, builders of manufactured homes qualify for a $2,000 credit if they conform with the requirements of the MHCSS Act and also meet the energy savings requirements of comparable site-built homes. In lieu of the above, builders of manufactured homes can qualify for a $1,000 credit if they conform to the MHCSS Act and reduce energy consumption by 30 percent relative to the International Energy Conservation Code 2006. Alternatively, builders can also qualify for a $1,000 credit if the manufactured home meets ENERGY STAR^®Labeled Home requirements.

Guidelines for Localities to Include Manufactured Housing in Affordable Housing Plans
The package includes a directive that HUD issue guidelines to jurisdictions requiring them to consider including manufactured homes in a community’s comprehensive housing and affordability strategy and community development plans. On behalf of MHI, Mark Yost, President and CEO of Skyline Champion, testified at a Senate Banking Committee hearing in favor of this language in November, highlighting the obstacles at the state and local level that restrict the use of manufactured housing. MHI’s constructive and consistent advocacy on this topic helped to ensure inclusion of the language in this must-pass legislation.

Minimum Payments to the SAAs
Pursuant to MHI’s years-long advocacy to revise the minimum payments to the SAAs, the spending package directs HUD to finalize the rule making it started in 2016 that MHI supported. The proposed rule, entitled “Manufactured Housing Program: Minimum Payments to the States,” would revise the payments to states approved as SAAs in order to provide for a more equitable guarantee of minimum funding from HUD’s appropriation for the program and to avoid the differing per unit payments to the states that have occurred under the present rule. Just last week, in a meeting with senior HUD officials, MHI again urged the Department to finalize this proposed rule to help address the growing concern among budget-conscious SAAs about their ability to continue participating in the HUD program.

If you have any questions, please contact MHI's Advocacy and Communications Department at MHIgov@mfghome.org.