Rural Development Approved Dealer

Next Step® Network
A New Delivery System for Green, Affordable Factory-Built Housing
Next Step’s Mission
Our mission is putting sustainable homeownership
within reach of everyone, while transforming the
manufactured housing industry one home at a time.
Network Members
Affordable Housing Done Right
The Next Step System
1. Homebuyers who are prepared and supported through certified
homebuyer education programs;
2. Quality, ENERGY STAR homes on FHA Title II permanent
foundations;
3. Life-cycle pricing that is transparent to the nonprofit and
ultimately to the customer;
4. Sustainable financing: mortgages with fair terms that enable
families to earn wealth or preserve assets; and,
5. “A Home is a Home” policy commitment advocating that owners
of manufactured homes have the same rights as owners of sitebuilt homes.
Quality, ENERGY STAR Homes
Next Step has teamed up with Clayton Homes,
Champion Homes and Cavco Homes – the three largest
factory-built companies in the US to create and
distribute a line of manufactured and modular homes to
meet the requirements of nonprofit housing providers
and the customers they serve.
Next Step’s special line of homes:
 Are ENERGY STAR certified
 Meet the requirements of HUD
 Meet the requirements of USDA Rural Development
 Meet many Universal Design Standards
Next Step Homes
ENERGY STAR Certification
Features
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Effective insulation
High-performance windows
Tight construction and ducts
Efficient heating and cooling equipment
Third-party verification
Benefits
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Added confidence
Lower ownership cost
Better performance
Smart investment
Environmental protection
Next Step Homes
Energy Efficiency
Next Step manufactured
homes have a rating
between 70 and 75,
making them 10 to 15%
more energy efficient than
many ENERGY STAR
homes!
A Nationwide Problem
Factory-Built Housing 101
Mobile Home
A residential structure manufactured prior to the enactment of the
Federal Manufactured Housing and Construction Standards, also
known as the HUD Code, on June 15, 1976. Mobile homes are no
longer being constructed.
Manufactured Home
Single family residential dwelling built in compliance with the
Federal Manufactured Housing and Construction Standards, as
amended, also known as the HUD Code, after June 15, 1976. Built in
multi-sectional or single section units.
Modular Home
Homes built to the state Code where the home will be located.
Sectional units are built in a production facility, transported to the
site and assembled.
What do Practitioners
Need to Know?

Manufactured Housing is home to about 17 million
Americans.

Manufactured Housing accounts for 43% of all
homes under $150,000.
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73% of manufactured home owners earn less than
$50,000 a year.
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The market system that produces and
finances these homes doesn’t always lead to
wealth building.
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Nearly 2 million pre-HUD Code mobile homes still
exist nationwide.
Mrs. Kelly’s Dream Home
In 2007, Phyllis Kelly
approached Frontier Housing
about repairs to her pre-1976
mobile home, which she was
struggling to maintain, often
spending more than half her
monthly income on utilities.
Since Mrs. Kelley’s new home was
ENERGY STAR certified, she saved so
much on utility costs that her new
monthly mortgage payment and utility
bill combined were less than the utility
bill alone in her previous home.
Mobile Home Replacement
Next Step is committed to replacing the remaining two
million pre-HUD Code mobile homes standing in the US.
We project that in the first year, each replacement home saves:
 $1,800 in energy costs per year for a family*
 Approximately 15 weeks of groceries
 2.25 tons of greenhouse gas emissions*
 Approximately 193 trees planted to match carbon offset
Over a 30-year loan, a low-interest, fixed-rate mortgage can save:
 $60,000 in mortgage interest for the homeowner**
 Approximately 2.3 full in-state college tuitions
*Projections calculated by Systems Building Research Alliance
**Based on the comparison of a 20-Year MH Loan at 12% with a 30-year traditional mortgage at 4%
New Development of ENERGY
STAR Homes
By requiring that our homes be built to meet ENERGY
STAR certification, we maximize energy cost savings for
homeowners.
For new development, we project that each Next Step Home saves:
 $360 in energy costs per year for new development*
 2.25 tons of greenhouse gas emissions*
 Approximately 193 trees planted to match carbon offset
Over a 30-year loan, a low-interest, fixed-rate mortgage can save:
 $115,000 in mortgage interest for the homeowner**
*Projections calculated by Systems Building Research Alliance
**Based on the comparison of a 20-Year MH Loan at 12% with a 30-year traditional mortgage at 4%
TVA MH ENERGY STAR Incentive
Program Replication
The Systems Building Research Alliance administers a
program in the Tennessee Valley where the Tennessee
Valley Authority pays incentives to manufactured home
producers to upgrade homes to ENERGY STAR.
After operating the program for several years without much
participation, SBRA and TVA moved the rebate to the plant from the
retailer. Since that change two years ago, a total of about 2,200
rebates have been paid for the completion of ENERGY STAR homes.
Next Step is working with SBRA and other key stakeholders to
replicate the program in Kentucky.
Impact
Over 10 years, we project our Network will support
11,887 homebuyers to purchase Next Step Homes, with
4,755 being pre-1976 mobile home replacements.
We project these 11,887 homes will:
 Save homeowners more than $41
million in energy costs*
 Save homeowners over $1.1 billion in
interest savings over the life of their
loans**
 Decrease greenhouse gas emissions
by 98,000 tons*
*Projections calculated by Systems Building Research Alliance
**Based on the comparison of a 20-Year MH Loan at 12% with a 30-year traditional mortgage at 4%
Contact Information
Visit our website to learn more: www.NextStepUS.org
For further information, contact:
Dave Betler, Marketing & Operations Specialist
[email protected]
251.725.6543 (o), 251.533.4230 (m)
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