The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) has launched the Hundred Homes Initiative, with the goal of offering $5 million in funding to move 100 households living in mobile homes constructed before June 15, 1976, into updated housing.
The date was when HUD updated requirements for mobile homes to meet specific safety and construction standards, which marked the transition from mobile homes to manufactured housing.
The program will allocate $50,000 grants per household to be used for a down payment, closing costs, principal reduction assistance, the purchase of land (as needed), the disposal and/or recycling of vacated mobile home, and any legal work and fees necessary to decommission the old home and salvage the title.
Eligible homebuyers must own and reside in a mobile home constructed prior to June 15, 1976, and have a household income less than or equal to 120% of the Mortgage Revenue Bond Limit for the county in which the new home is located. The buyers must also contribute $500 of their own funds to the down payment and agree to be the subject to a five-year forgivable retention mechanism, with the new home being taxed and titled as real estate on a single-family home. They must also work with the sponsor to provide certification from a third-party company of the destruction or decommission of the mobile home being replaced.
If the home purchase is financed with a permanent mortgage, the loan must originate from a FHLB Cincinnati member institution, a federal government agency or enterprise, a state government agency or enterprise, or be a sponsor (nonprofit housing development organization) provided mortgage.
“At FHLB Cincinnati, we regularly look at new ways to meet the housing needs of the communities in our District of Kentucky, Ohio and Tennessee,” said Andy Howell, president and CEO of FHLB Cincinnati. “Through the Hundred Homes Initiative, we will work in partnership with our members, housing sponsors and residents to increase the quality and safety of housing stock throughout our District.”
