At the MBSA meeting in
builder that has built homes in NJ since
wiped it out. The conversation brought
to light some of the hardships facing modular construction there.
Many factory owners and I’m sure a lot of builders trying to
make a living in NJ are unaware of some of the things that are hindering rebuilding
the
Here is the email I sent to a large modular home builder in
NJ and his candid reply. I would like to say ENJOY….but it is one of the
saddest examples of how people in government and lending are hurting modular housing
in the state.
My email and his reply:
Dear Builder, (confidentiality asked)
I just left MBSA’s annual meeting and was shocked about what
I heard of modulars in NJ.
One builder who has about a dozen contracts in NJ and has
set and finished about 5 so far has told me some things I had never heard of before. Since
you have built modular homes there for years, I have to ask, are these
statements true or false?
1. In order to be one of the chosen builders, one must fill
out a huge form and have a minimum $1M bond in place to be considered. Then
your name is put in the pool and even though you have been working with a
particular home buyer, they may be forced to build with someone else.
Answer: The form is over 70 pages long and is completely ludicrous… the part about the pool and being forced to build with another
builder is true.
2. There are only a limited number of floorplans approved
for the NJ program and they are all site built plans….none are modular.
Answer: Yes this is true too. It is VERY
discriminatory in many ways and is not in the best interest of the homeowners
but in the best interest of a “SELECT” few.
3. Modular homes are setting on pilings throughout the state
after being delivered and no additional work is being done on them because
banks are not releasing funds and builders are walking away.
Answer: I am hearing a lot of this too. Many
homeowners’ funds are being held hostage by the insurance and mortgage
companies so they cannot start or complete their work. The banks/insurance
companies want a certain amount of work done in order to make payments but the
homeowners don’t have the money to pay for the services without the funds being
made available to them and the contractors are “expected” to finance the jobs
to get to certain percentage of completion points but they don’t have the money
to do this so construction is being held up or abandoned in many cases. I
can give you dozens and dozens of names of people living this nightmare.
4. Even though the Governor and all the housing experts in
NJ are realizing that modular is the best way to rebuild, the local code
inspectors are prejudiced against or simply uneducated about modular
construction.
Answer: I agree 100% and the permit process from the state
and local agencies have made it nearly impossible to obtain permits. And
when you do finally receive them (2-4 moths+ later) the next nightmare beings
with the inspection scheduling and trying to complete the jobs. The “red
tape” is unnecessary and is one of the major reasons for the slow rebuilding
process in our state.
This is another reason we all need to work together to not
only help modular builders stay in business but also to help fight for
homeowners that are caught in a system that promised the moon and delivered
nothing but sorrow.
