Modular Construction Insured Lending

The Department of Housing and Urban Development (HUD) is seeking a contractor to design and implement a demonstration to increase the availability of financing to developers and manufacturers of modular homes. The contractor will work with HUD to create a loan guarantee product that will insure private lending, increasing access to capital and driving more volume and efficiency in modular home manufacturing. The demonstration is expected to last for 2 to 5 years and will require the contractor to manage the iterative use of the demonstration's funds, set up a system for managing and minimizing risks associated with the loan guarantee, and provide regular updates on the progress of the demonstration. Key aspects of the project include: • Designing a loan guarantee product to increase access to capital for modular home developers and manufacturers • Implementing the demonstration and operating the program to sustain itself for 2 to 5 years • Managing the iterative use of the demonstration's funds and setting up a system for managing and minimizing risks associated with the loan guarantee • Providing regular updates on the progress of the demonstration and working with an independent evaluator to monitor and evaluate its effectiveness • Reimbursing lenders for losses in the event that a modular developer/manufacturer is unable to repay its loan, while also minimizing such losses by creating parameters that define acceptable risks when selecting participants.