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Executive Summary
Report
Solutions and Recommendations
Marshall Sidebar
Downtown Housing Improvement Corp.
Danbury Housing Sidebar
NDC Sidebar
Homesight Sidebar
Homebuyer Sidebar
New Hampshire Sidebar
Organizing Tenants Sidebar
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NEIGHBORHOOD
DEVLOPMENT CORPORATION
The Neighborhood Development
Corporation (NDC) in Louisville, Kentucky used manufactured homes to fill
in empty lots and encourage home ownership. Buyers paid between $69,000
and $74,000 for a home. Soft second mortgages from the city reduced the
price to city residents to between $52,000 and $56,000. Such assistance
assures that new home owners can afford the financial package as well
as the home. The homes ranged from 1,100 to 1,250 square feet in size.
Several of the homes underwent design changes to meet city requirements,
including brickwork fa‡ades, covered front porches, and decorative
split block around the foundation. The neighborhood and city did not oppose
the homes because the design changes ensured quality from the outset.
Bill Friedlander, the President of NDC, thought that the homes reduced
costs between 20 to 29 percent over a site built home.
Kimberly Stephenson, Director of Programming and Administration, told
Consumers Union that it was easier to build a stick-built home than manufactured
housing on odd-size lots because placement makes certain lots cost-prohibitive.
(NDC spent an extra $4,000 on one lot removing soil and trees.) The project
"took much longer than anticipated because of requested changes from
the City of Louisville, the Department of Housing and due to a lack of
coordination and communication between NDC, the out-of-town manufacturer
and the contractor." Use of a general contractor inexperienced in
manufactured home placement also created problems.
"Nonprofits should make sure that there is good coordination with
all key players," Stephenson said, specifically stressing the need
to discuss with the manufacturer the costs of different upgrades. The
installation contractor needs to coordinate with site selection and development,
particularly with in-fill lots. Working with a person who has experience
with manufactured housing will reduce the likelihood of delay and unexpected
costs.
According to Stephenson, the homes meet the housing needs. "People
seem happy with the housing and feel a sense of pride with home ownership.
They often have more space than previous housing, making it possible for
children to have their own bedrooms instead of sharing." Friedlander
said the homes have also appreciated in value. "The oldest of the
homes was built around 1997 and we sold it for $49,000. It was recently
appraised by city for tax purposes at $72,000."
Lessons learned:
- Hiring contractors experienced
with manufactured homes may avoid some problems.
- Coordination between parties
is necessary to avoid misunderstandings.
- Financial assistance to
consumers through a non-profit or public entity increases equity for
new homeowners.
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