HUD Simplifies Rules for Eco-Friendly Trailer Park Homes
Published Date: 4/30/2026
Proposed Rule
Summary
HUD is updating the HOME Investment Partnerships Program to make it simpler and more flexible, especially for green building projects and scattered site manufactured housing rentals. These changes affect local housing groups that get federal money to build or fix affordable homes. Public comments are open until June 1, 2026, so folks can share their thoughts before the new rules take effect.
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Analyzed Economic Effects
7 provisions identified: 5 benefits, 1 costs, 1 mixed.
Rollback of several new tenant protections
HUD proposes to revert many of the HOME Final Rule's expanded tenant protections and return to earlier rule language in 24 CFR 92.253. Proposed removals or reversions include eliminating the new "unreasonable interference or retaliation" test, removing a requirement for unconditional relocation of tenants during repairs, removing new notice and lease-submission requirements (such as providing leases to the participating jurisdiction prior to execution and including owner contact info in every lease), and rescinding the expansion that would have required owners to accept all forms of Federal, State, and local tenant-based rental assistance (reverting to the prior scope tied to Housing Choice Vouchers). HUD also lists specific provisions proposed for removal such as the new tenancy addenda requirement and certain new security deposit rules.
HUD removes green-project subsidy boost
HUD proposes to remove the HOME Final Rule provision at 24 CFR 92.250(c) that would have allowed participating jurisdictions to exceed the HOME maximum per-unit subsidy by up to 10 percent for projects meeting certain green building standards. HUD says it will no longer allow that 10% per-unit increase and will delete related regulatory text.
New definition for scattered manufactured rentals
HUD would add a new definition of "scattered site manufactured housing rental project" to 24 CFR 92.2 for rental projects of individually leased manufactured housing units owned by a single project owner. HUD proposes streamlined monitoring procedures and monitoring flexibilities for projects that meet this definition to reduce compliance costs and encourage use of manufactured housing.
Immediate corrections limited to life-threatening issues
HUD proposes to change the standard in 24 CFR 92.251(f)(5)(i) from requiring immediate correction of all "health and safety" deficiencies to requiring immediate correction only for "life-threatening" deficiencies. The proposed change also limits the requirement to adopt more frequent inspection schedules to projects where life-threatening deficiencies are identified.
Triennial income exams for scattered-site occupants
For occupants of scattered site manufactured housing rental projects, HUD proposes reducing the frequency of income examinations to triennial (every three years) instead of the more frequent schedule in current Sec. 92.252. HUD says this change is intended to reduce owner and manager costs.
Alternative tenant selection for scattered-site projects
HUD proposes to allow participating jurisdictions to establish an alternative to a written waiting list for tenant selection in scattered site manufactured housing rental projects (the same flexibility HUD permitted for small-scale housing). This could include jurisdiction-wide waiting lists or other nondiscriminatory placement methods.
Carbon monoxide detector standard added
HUD proposes to add a carbon monoxide detector requirement to 24 CFR 92.251(a)(3)(vi)(A) requiring that units have a carbon monoxide detector installed in a manner that meets or exceeds chapters 9 and 11 of the 2018 International Fire Code.
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