No. of Recommendations: 5
A large number of manufactured homes are placed in mobile home communities where the tenant owns the home, but pays a significant lot rent. In these communities, the use of a steel chassis is not a vestigial remnant of past times, but a valuable guard against a too-greedy landlord. If this requirement is to be removed, what replaces it should be carefully considered to maintain a level and ease of relocation that accommodates the reality that the land and the house very often have different owners.
Clayton Homes builds both manufactured and modular homes, so I’m not sure if this legislation is a plus or a minus for them. I suspect it may be a tailwind for their manufactured home business, and a headwind for their modular home business.
From the linked article:
“The Modular Home Builders Association has argued that its product is better built and has stricter local regulatory oversight than manufactured homes. And removing the chassis requirement, the trade group argues, would blur the lines between the two types of housing and create consumer confusion about the quality of the homes.”
This is the result I would worry about - that lower-quality businesses would be able to increase their market presence and devalue the modular home part of Clayton Homes.
