California task force formed to resolve growing housing affordability problem.

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--May 28, 1996--A task force, composed of housing experts from throughout California, has formed to develop a ``tool kit'' for communities struggling with home-ownership challenges, according to Bob West, president of the California Manufactured Housing Institute (CMHI).

Task force members include representatives from California's Department of Housing and Community Development, as well as manufacturers, lenders, real estate professionals, city and county government officials. They are looking at manufactured housing as the key factor in community options to provide adequate and affordable housing.

``Within the next six months, the task force will design the `tool kit' to show local communities the advantages of using manufactured homes to help meet their expanding housing needs,'' West added.

According to the 1995 report of the Center for Continuing Study of the California Economy (CCSCE), the economic recovery which began in 1995 will continue into 1996 and 1997.

If these and other projections are correct, in the next decade there could be an additional 3 million jobs, 2 million households and 5 1/2 million more residents...all in need of housing and, in many cases, seeking the desirable option of home ownership.

In 1995, the U.S. Department of Housing and Urban Development launched the National Homeownership Strategy led by Housing Secretary Henry Cisneros.

Coordinating this effort has been a task force called the National Partners in Homeownership, composed of 56 national organizations representing lenders, home builders, real estate professionals, nonprofit organizations, and federal, state and local governments.

Appearing at the April meeting of the National Manufactured Housing Congress in Las Vegas, Cisneros applauded advancements in the manufactured-housing industry and focused on the industry's potential for growth and influence in the housing marketplace.

``Success in the manufactured-housing industry means success for American families who otherwise might not be able to afford a home. City planning boards and local government officials need to be made more aware of the technological improvements and advancements that have been made in manufactured homes,'' noted Cisneros.

According to CMHI, the manufactured home has evolved from the 1950's trailer to a modern, spacious, comfortable and affordable home for approximately 18 million people, about 7 percent of the national population.

In California, manufactured homes constitute about 10 percent of all new single-family homes sold each year. In the state, there are 584,000 such homes with more than 1.1 million residents.

In 1995, manufacturing and retail sales of manufactured housing contributed around $800 million to the California economy. During the first quarter of 1996, the delivery of manufactured homes was up 7 percent over last year, according to West.

A major reason manufactured housing can be appealing to a cross section of potential home buyers, as well as communities, is its affordability. CMHI figures show that in 1995 the average sales price of a manufactured home was $49,500, excluding land.

With such pricing parameters, and a growing number of financing options, communities such as Poway, a city in San Diego County, and Petaluma in Northern California, have turned to manufactured-housing subdivisions as part of the solution to their local housing needs.

According to John Fitch, Poway's assistant city manager, manufactured housing was a perfect choice for Poway and its Haley Ranch Estates project because it met the city's standards for affordable housing.

``The single-family homes are compatible with surrounding neighborhoods from the perspective of design and density...with space suitable for families.'' added Fitch.

``We believe that the manufactured-housing task force will provide basic tools for communities throughout California, like Poway and Petaluma, to find the desirable housing source which, we believe, is manufactured housing,'' concluded West.

CONTACT: California Manufactured Housing Institute

Bob West, 909/987-2599

or

Murphy O'Brien Communications

Larry Pickett, 310/858-5750