Date: Fri, 21 Nov 1997 01:39:37 GMT Server: Apache/1.2.4 Connection: close Content-Type: text/html
A manufactured home is a complete single-family residence that is built in a factory and transported to the home site. Manufactured homes offer many of the amenities of, and are generally built with the same materials as, site-built homes. Multi-section homes are built as two or three floor sections and are joined at the home site by the dealer or an independent installer.
Manufactured homes must meet the national building code administered by the Department of Housing and Urban Developement ("HUD"), which sets industry wide standards of quality relating to design, materials and performance. Manufactured homes that are produced to meet the HUD specifications are commonly called "HUD Code Homes." The industry also produces homes that are designed to meet building codes administered by state and local authorities, as opposed to the national HUD guidelines. These homes, commonly called "modular homes," represent a relatively small portion of the production of the industry.
Manufactured housing historically has been one of the most affordable alternatives for the home buyer. Because of the lower cost of construction, as compared to site-built homes, manufactured homes traditionally have enabled first-time home buyers and retirees to overcome the obstacles of large down payments and high monthly mortgage payments normally associated with site-built homes. Although first-time home buyers and retirees account for a substantial portion of purchasers of manufactured homes, the Company believes that manufactured housing has achieved broader customer appeal in its core market area. According to the U.S. Department of Commerce, in 1995, the average cost per square foot (exclusive of land costs) for a single section and a double-section manufactured home was $23.95 and $28.96, respectively, as compared to an average (exclusive of land costs) of $56.28 for a site-built single family home. In addition, since the introduction of the first manufactured homes, significant improvements in quality, design and amenities have been developed, and attractive home sites have become increasingly available. Further, unlike apartments and other rental units, manufactured homes offer the benefits of home ownership and represent an affordable means for large numbers of individuals to own their homes.
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