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Manufactured Housing Sheds Stereotype

Forget the term "mobile home" - it's so 26 years ago.

In fact, forget what you think you know about "manufactured homes," which is what they've been called since the Federal Manufactured Home Construc-tion and Safety Standards (commonly known as the HUD Code) went into effect June 15, 1976. The only thing mobile about most of these homes is their upwardly mobile climb in the housing market.

"No matter what you say, some people are dead-set that they're trailer homes or mobile homes," said Heidi Lubinski, assistant director of the Colorado Manufactured Housing Association. "But that's just not accurate anymore and hasn't been for some time."

Let's start by getting our definitions straight. According to Lubinski, there are four types of homes that fit under the title "pre-engineered." Panelized homes are factory-built homes in which panels - a whole wall with windows, doors, wiring and outside siding - are transported to the site and assembled.

The homes must meet state or local building codes where they are sited. Pre-cut or "kit" homes are factory-built housing in which budding materials are factory-cut to design specifications, transported to the site and assembled. Pre-cut homes include kit, log and dome homes. These homes must meet local, state or regional budding codes.

In the case of manufactured and modular homes, units are built in a factory, transported to the site and installed. Manufactured Homes are homes built entirely in the factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). "Our high-end business is what's really booming" Carl Turango, Champion Homebuilders.

Federal standards regulate

Manufactured homes may be single- or multi-section and are transported to the site and installed. The federal standards regulate manufactured housing design and construction, strength and durability, transportability, fire resistance, energy efficiency and quality. The HUD Code also sets performance standards for the heating, plumbing, air conditioning, thermal and electrical systems. It is the only federally regulated national building code.

On-site additions, such as garages, decks and porches, often add to the attractiveness of manufactured homes and must be built to local, state or regional building codes.

Modular homes are factory-built homes built to the state, local or regional code where the home will be located. Modules are transported to the site and installed.

In 2000, one out of six new single-family housing starts were manufactured homes. According to the Census Bureau, 1999 figures show that 68 percent of new manufactured homes were located on private property, and 32 percent of new manufactured homes were located in communities

The main difference between manufactured and modular homes is structural. "A manufactured home built to HUD code is supported throughout by a steel I-beam," Lubinski explained. "The distribution is different. A modular home built to local codes doesn't have that same capacity and has to be crane lifted onto a foundation."

The same model of home can be built to UBC or HUD standards.

To some, "modular" is still too close to "mobile." "In general, you will not see a UBC home in a land-lease community," Lubinski said. "Some people just can't get over that image."

Even today's modular homes don't look like the old mobile homes. "They've really gotten away from the long hallway floor 'plan," she said. "They're more dimensional."

Affordability is best aspect

One thing hasn't changed: Manufactured housing is still far more affordable than on-site built homes.

In the Denver metro area where the median new home is $224,000, a comparable manufactured home would be $80,000, Lubinski said.

"Of course, that figure doesn't include land, which can be a major factor," she said. "It's land costs that wear on the affordability."

Affordability is one of the major factors that bring customers to Champion Homebuilders' factory in Berthoud.

"The advantage is you can eliminate 80 percent of your subcontractors," said Carl Turango, operations manager for' Champion. "That's a substantial amount of time saved."

Time is also on the side of manufactured home builders because in a factory, construction goes on all year round. But it's a mistake to think manufactured housing is all about affordability.

"Our high-end business is what's really booming," Turango said. "We just finished one home that came in with a preliminary appraisal of $650,000."

Turango said manufactured doesn't mean "assembly line."

"We build a lot of custom and semicustom homes," he said. "I could drive you through a subdivision in Fort Collins and you wouldn't be able to pick out the homes that were built off-site until I pointed them out."

Champion builders built about 800 houses last year. The majority of their homes are in the $250,000 range. The average sales price of a manufactured home was $43,600 in 1999, according to MHI. While 80 percent of Champion's homes stay in Colorado, the remaining 20 percent are shipped to 15 different states.

"Yes, some of our homes are in trailer parks, but there are also some on golf courses and in home shows," Turango, said.

From Turango's perspective, the future looks bright for manufactured housing. "In my 12 years it (manufactured housing) has really grown in popularity," he said. "And I expect to see that continue.

To find a manufactured homes community in your area or locate a dealer please visit http://www.manufactured-home-guide.com

Source: Northern Colorado Business Review