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Just Released: A Study of the HUD Minimum Property Standards for One- and Two-Family Dwellings

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Through various regulatory requirements within its insurance programs, the U.S. Department of Housing and Urban Development (HUD) has had a significant influence on the design and construction of much of the nations' housing stock. "A Study of the HUD Minimum Property Standards for One- and Two-Family Dwellings and Technical Suitability of Products Programs" examines the history and impact of those regulations on HUD’s single-family operations, as well as those of the larger housing industry.

As early as the 1930s, HUD’s predecessor agency, the Federal Housing Administration (FHA) established various construction standards to assure that the housing it insured met minimum requirements for construction quality, safety, and durability. By the late 1970s, one such set of standards - The Minimum Property Standards (MPS) - had become a de facto, and largely prescriptive, construction code, although it had been originally created for more limited use. The Technical Suitability of Products (TSP) Program was established by HUD to provide acceptances for new products and systems for FHA-insured housing.

Over the past twenty years, HUD has significantly reduced the role and importance of both the MPS and the TSP Program through a series of regulatory reforms, especially for single-family housing. However, many outdated regulations remain "on the books," as do various vestigial administrative requirements.

The study makes a series of recommendations for legislative, regulatory, and administrative reforms. Recommendations for the MPS include eliminating the one- and two-family portion of the MPS and formalizing the one- and two-family mortgage approval process now in use. The study also recommends the discontinuation of the TSP Program, but only after consulting with participating manufacturers and establishing an adequate transition period.

"A Study of the HUD Minimum Property Standards for One- and Two-Family Dwellings and Technical Suitability of Products Programs" is available at https://www.huduser.gov/portal/publications/polleg/mps_tsp.html.
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