Manufactured Housing Replacement Program

Update as of 8/15/2023:

The Manufactured Housing Replacement Loan Program has fully allocated its funding for the 2023-25 biennium and is no longer accepting applications at this time.

About the Program

The Oregon Housing and Community Services (OHCS) Manufactured Housing Replacement Program incentivizes manufactured homeowners to replace old and energy-inefficient homes with the help of a manufactured home replacement navigator.

History

The OHCS Manufactured Home Replacement Program was developed because it is more economically, environmentally, and energy-efficient to replace older manufactured homes, rather than repair them. It is estimated that over half of the manufactured housing inventory in Oregon was built before 1976, the year that the U.S. Department of Housing and Urban Development (HUD) began regulating manufactured home construction standards. Additionally, another 25% were built before 1995, the year that HUD implemented energy standards to their building standards. This means that a large portion of manufactured homes are past their life span, energy-inefficient, and unsafe. By today's manufactured home standards, there is a significant need to replace the majority of manufactured homes in Oregon.

In 2019, the Oregon Legislature passed House Bill 2896 to preserve manufactured home parks in the state and create programs to provide loans to individuals to replace older and energy-inefficient homes. This bill, with the support of community members and organizations, allows OHCS the ability to assist manufactured homeowners with replacing their older manufactured homes with new, safe, and energy-efficient ones. From this piece of legislation, OHCS created the Manufactured Home Replacement Program to incentivize manufactured homeowners, with grants and forgivable loans, an affordable opportunity to replace their old and energy-inefficient homes.

Overview

The Manufactured Home Replacement Program is a flexible program that works in conjunction with other grants and replacement incentives. By design, it provides assistance with the disposal of a current owner-occupied manufactured home, the purchase of a new energy-efficient manufactured home, and the additional work required to make a new manufactured home move-in ready. OHCS will assign a manufactured home replacement navigator to help eligible applicants through the process of planning the project, identifying financial resources, and coordinating the different parts of the replacement process.

Program Guide and Factsheet

MHRP Program Guide

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1. Must own the current manufactured home and use it as their primary residence. OHCS is unable to help with replacing second homes, rental properties, or vacation homes.
2. The current manufactured home must be energy-inefficient (most manufactured homes built before 1995 are considered energy inefficient).
3. The manufactured home must be located on personally owned property, in a cooperatively or nonprofit owned park, or in a privately owned park that has a written agreement with OHCS.
4. Applicant household income must be at or below 100% of Oregon's area median income ($72,000 for a family of two in 2022).

Grants and Loans

Disposal Grant

The OHCS Disposal Grant can cover up to $15,000 of the cost to get rid of the old home. These funds will be paid directly to contractors performing the work, permitting authorities, or OHCS authorized vendor. OHCS will not reimburse manufactured home owners for any disposal costs.

Manufactured Home Replacement Loan (MHRL)

The MHRL is a 10-year forgivable loan with zero interest and zero monthly payments. This means that OHCS will forgive 1/120 of the loan each month and it will be fully forgiven after 10 years (120 months). If you sell the manufactured home before 10 years, you will need to pay the outstanding balance of the loan, unless: (a) the loan is assumed by an eligible buyer or (b) the remaining balance is forgiven by OHCS due to hardship. Additionally, The MHRL is a subordinate loan, which means that the primary lender of the home will continue to hold the first lien position until the property is fully paid off.

The amount of your loan will be determined with the help of the manufactured home navigator. You will identify the gap between the cost of your project and the financial resources available to you. The financial resources available may include personal resources, such as savings or monthly income, and other grants and loans through community partners. The MHRL maximum amounts that OHCS can provide are up to $100,000 for a single-wide manufactured home and $175,000 for a double-wide.

MHRL funds will be disbursed directly to manufactured home dealers/retailers, contractors, permitting agencies, and other OHCS-authorized vendors. OHCS cannot disburse funds directly to homeowners or reimburse them for any manufactured home replacement costs. Additionally, MHRL requires that your current home be replaced with a new, energy-efficient manufactured home (Energy Star or NEEM 2.0 rated). The MHRL funds can also be used to cover the costs of site work or any work that is required to install the new manufactured home, permits, and other authorized work. (Note: OHCS forgivable loans cannot be used to pay for site work beyond what is necessary to replace a manufactured home including, but not limited to, landscaping, irrigation systems, etc.)