BATON ROUGE, La. — The State of Louisiana and FEMA recently agreed to initiate direct sales of manufactured housing units (MHUs) to occupant-survivors of the August 2016 floods who lack permanent housing.
In making the decision to launch the sales program, FEMA considers, among other variables, the anticipated return of available rental resources and the applicant’s ability or means to repair their pre-disaster dwelling.
Eligible applicants who owned their home prior to the disaster and now occupy a MHU may be eligible to purchase the unit as soon as FEMA determines they are unable to repair or replace their home within their 18-month period of assistance through no fault of their own.
In determining a sales price, FEMA uses a mathematical formula to determine the Adjusted Fair Market Value (AFMV) and purchase price of the MHU. The sales price is based on the unit type, the number of bedrooms, and the number of months the applicant has been living in the unit. No MHU will be sold for less than 25 percent of the AFMV of the unit regardless of an individual’s financial situation.
For MHU sales, units will be sold “as is” and “where is” and purchasers are required to obtain and maintain hazard insurance, and flood insurance if the MHU is located in a designated Special Flood Hazard Area.
Letters will be sent to eligible applicants currently living in FEMA MHUs asking if they are interested in purchasing the unit. If so, applicants will sign and return an enclosed notice of interest and return to FEMA. The agency will then provide instructions on the sales process and requirements. Sales of units are expected to take 30-60 days.