Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Competition

Description

More than 22 million Americans currently live in manufactured housing.[1] Manufactured housing units account for approximately seven percent of occupied housing stock nationwide and fifteen percent in rural areas.[2] Manufactured housing is also the largest source of unsubsidized affordable housing in the country, making it a crucial piece of the nation’s affordable housing stock.[3] The median household income of manufactured housing unit owners is about half the median household income of site-built homeowners [4].Manufactured housing can be permanently affixed to the lot underneath or be affixed to a support and anchoring system that allows the home to be relocated more easily. Manufactured housing is subject to HUD certification requirements pursuant to the regulations set forth in 24 CFR part 3282 (Manufactured Home Procedural and Enforcement Regulation) and the Manufactured Home Construction and Safety Standards set forth in 24 CFR 3280 (see the definition of manufactured housing in 24 CFR 3280.2).There are many significant challenges that may impact housing stability for those that live in manufactured homes. Despite perceptions of manufactured housing as “mobile,” manufactured housing can be very expensive and complicated to move, and more than 90% of manufactured homes do not move after the initial installation.[5] This can present a significant challenge for owners of manufactured homes who do not own the lot underneath their unit (referred to as “homesite renters” for the purposes of this NOFO). For some manufactured homeowners that rent a lot in a manufactured housing community (MHC), there is the potential for landowners or investors to increase lot rents, forcing homesite renters to make a difficult decision: pay to move their home, pay the increased rent, or leave their valuable asset.Due to state titling laws, many prospective homeowners looking to purchase a manufactured home may have no option but to finance their home with personal property or “chattel” loans, which often have higher interest rates than typical real property mortgages – even in situations where they may own the lot their home sits on. Many older manufactured homes require repairs or enhancements to make them livable and suitable to their environment, or they are sited in hazard prone areas. Meanwhile, nearly a third of households living in manufactured housing are headed by an elderly individual, and manufactured housing households have a higher prevalence of a significant disability.[6] These vulnerable populations need access to infrastructure and amenities that are often unavailable for residents of manufactured housing. The infrastructure serving manufactured housing communities is often self-operated, not built to high standards and has become increasingly stressed by deferred maintenance and extreme climate and weather events.[7]HUD is issuing the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) competition NOFO to preserve long-term housing affordability for residents of manufactured housing or an MHC, to redevelop MHCs, and to primarily benefit low- and moderate-income (LMI) residents. This NOFO is authorized by the Consolidated Appropriations Act, 2023 (Public Law 117-328, approved December 29, 2022). Congress appropriated $225 million for competitive grants to preserve and revitalize manufactured housing and eligible manufactured housing communities and directed HUD to undertake a competition under title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.). Of the $225 million available, $200 million is reserved for the main PRICE competition, of which at least $10 million is intended for Indian tribes or Tribally Designated Housing Entities and Tribal organizations designated by such Indian tribes (hereinafter referred to as “Tribal Applicants”), and $25 million is reserved for a pilot program to assist in the redevelopment of manufactured communities as replacement housing that is affordable. The minimum grant request for the main PRICE competition is $5 million for all applicants, except Tribal Applicants. Tribal Applicants may request a minimum of $500,000 for the main competition. The minimum grant request for the PRICE pilot is $5 million.HUD has six goals for this competition:Fairly and effectively award the PRICE grant funding and related technical assistance.Increase housing supply and affordability for LMI persons nationwide, including in urban, suburban, rural, and tribal areas.Preserve and revitalize existing manufactured housing and manufactured housing communities.Increase resilience to extreme weather, natural hazards, and disaster events, support energy efficiency, and protect the health and safety of manufactured housing residents.Promote homeownership opportunities and advance resident-controlled sustainable communities through new and revitalized units of manufactured housing that will remain affordable.Support accessibility modifications, repairs, and replacement of deteriorating manufactured housing units – especially to increase accessibility and access for persons with disabilities, facilitate aging in place for older adults and increase access to affordable housing for low-income households.Successful proposals will:Demonstrate a compelling need for the preservation and revitalization of manufactured housing or MHCs;Evaluate how manufactured housing and MHCs contribute to the local affordable housing stock and what resources are needed to rehabilitate or replace existing units and MHCs;Prioritize equity and affirmatively further fair housing by demonstrating a commitment and ability to identify and remove barriers to: 1) expanding access to affordable housing in a manner that promotes desegregation, and 2) expanding access to affordable housing for protected class groups, for example, by addressing the lack of physically accessible manufactured homes in accordance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8, or by addressing policies preventing the rehabilitation of manufactured housing communities, deteriorating infrastructure, and lack of resources to support owners and residents of manufactured housing units.Engage a broad and inclusive stakeholder group, including residents of MHCs;Utilize strategies to reduce the impacts of environmental hazards and extreme weather;Increase community resilience, especially when reconstruction, relocation, or mitigation are involved; and,Ensure long-term housing availability, accessibility, and affordability for LMI households.Proposals may include the preservation and revitalization of manufactured housing units or MHCs at one or multiple sites and may span multiple jurisdictions. HUD seeks to preserve and revitalize manufactured housing units or communities in both urban and rural areas, as well as on Tribal lands and in disaster-prone communities. Eligible revitalization activities are broad and may include infrastructure or housing (and other eligible activities). HUD is instituting a requirement that all manufactured housing units receiving PRICE assistance must be maintained as affordable for a minimum period. Pursuant to title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.), proposals may include, but are not limited to, the following eligible uses:Development or improvement of infrastructure that supports new or existing MHCs and/or manufactured housing units, including roads, sidewalks, water, and wastewater infrastructure including well and septic systems, and utility hookups;Environmental improvements such as remediation of contaminants in land servicing MHCs;Repair, rehabilitation, or replacement of existing manufactured housing units (pre-1976 units, which were referred to as mobile homes, may only be replaced. PRICE funds may not be used for their repair or rehabilitation);Planning activities around MHCs, including functional or implementation plans for land use or zoning changes to be more permissive of manufactured housing units or communities;Resident and community services, including relocation assistance (which may include moving manufactured housing units) and eviction prevention;Resilience activities, which include the reconstruction, repair, or replacement of manufactured housing and MHCs, as well as that for infrastructure serving MHCs, to enhance their safety and stability in the face of natural hazards such as, but not limited to, wildfires, earthquakes, tornados, extreme heat, and flooding, and to mitigate known hazards and the rising threat that extreme weather events present to manufactured housing due to climate change, except that for pre-1976 mobile homes, funds made available under resilience activities may be used only for replacement; or,Assisting manufactured housing renters or homesite renters with land and site acquisition.A portion of funds are reserved for PRICE pilot awards that may be used for the following:Redevelopment of MHCs as affordable replacement housing. Note that for each unit of single-family manufactured housing (including pre-1976 mobile homes) replaced under the project, up to four dwelling units of such affordable housing must be provided; or,Relocation assistance, buy-outs, or down payment assistance for residents.Manufactured Housing BackgroundManufactured homes are safe, quality housing and an affordable alternative often indistinguishable from site-built homes. Built in factories, the per square foot cost of producing a manufactured home is generally less than half the cost of constructing comparable site-built, single-family detached homes.[8] The lower production costs pass through to consumers as the purchase price and monthly costs of manufactured homes are generally less than half that of site-built homes. These lower costs provide an avenue to affor

Eligibility

Grants.gov lists this opportunity under eligibility category codes 00, 01, 02, 07, 11, 25, 99. These codes correspond to applicant types (state/local government, tribal organization, nonprofit, educational institution, individual, small business, etc.) defined in Grants.gov's own eligibility reference. See the current Grants.gov eligibility categories or check the official listing below for this opportunity's exact eligibility statement.

Agency Contact

Key Dates

More from Department of Housing and Urban Development