Not long ago, factory-built homes commanded little respect. A comedian once joked that a surefire way to identify someone from the lower rungs of the socioeconomic ladder was to find the owner of an automobile that isn't mobile and a home that is.

Over the last two decades, the manufactured housing industry has undergone a miraculous transformation. Terms such as "trailer" and "mobile home" are long gone, and with them any stigma assigned to the aesthetics and acceptability of factory-built homes

"It's a whole new industry," says Glen Gilliam of the Manufactured Housing Network. "There are manufactured homes now with almost 3,000 square feet. Some have three-car garages. There are even two story models."

Kami Watson, spokesperson for the Manufactured Housing Institute, expects public perception to soon follow the market. "There used to be the NIMBY attitude-Not In My Backyard," with regard to manufactured homes, Watson says. "But now that manufactured homes are virtually indistinguishable from site-built homes, the respectability of manufactured homes will greatly increase." According to the California Manufactured Housing Institute, the cost of the typical new manufactured home sold in 1998 was $56,000 without land. Construction costs per square foot for a manufactured home averaged $40.34 compared to $52.39 per square foot for a comparable site-built home. Manufactured homes range in size from 700 square feet to over 3,000.

Recent buyers of manufactured homes are younger, more affluent, have larger families, have a higher level of education and are less likely to be retired than manufactured home owners in the past. Most new buyers of manufactured homes erect the structures on private property instead of leasing space in manufactured home communities.

Manufactured homes represent 29 percent of new single-family homes.

Today manufactured homes represent 29 percent of new single-family homes sold in the United States. In California, where 1.1 million residents live in more than 590,000 manufactured homes, the number is roughly 10 percent. Last year, the manufacture and retail sales of factory-built homes amounted to transactions worth $1 billion in the state economy.

Headquartered in Santa Rosa is Dupar and Angel, Inc., the largest manufactured housing retail company in California. Following a May 1999 merger with Pacific Home Sales, Inc. of Visalia, Dupar and Angel, Inc., expects 1999 sales of over $60 million from 16 retail locations throughout the state.

"Last year, the two companies were second and third in sales respectively. Together, we'll be twice as big as anybody," says president and chief operating officer, Robert Angel. "This merger will increase the operating efficiencies of the new company through the adoption of the best policies of each company and will result in tremendous savings from economies of scale. The new company will be able to aggressively grow the business while dramatically improving net profits.

George Bravante, Jr., president of Pacific Homes Sales, Inc., and chief financial officer of the combined company, described the merger as "a very smooth transition" for both companies. "In addition to the immediate benefits the company will gain by being the premier manufactured housing retailer in California, this move will also put us closer to our goal of aligning ourselves with a national company," Bravante says in a prepared statement. "The strong California economy and the third record year of manufactured home sales in California have increased interest in the state's market. Our plans are to continue our growth and acquisition strategy which will put us over $100 million in annual sales within the next 18 months."

Once primarily a northern California retailer, Dupar and Angel will now be able to sell throughout the entire state. Added to 10 sales locations in northern California, including Luxury Housing and Advantage Housing in Santa Rosa, are six retail centers formerly operated by Pacific Home Sales in southern and central California.

"We decided to headquarter the company in Santa Rosa because of its central location in terms of the state," said Angel. "Also the county itself has been very receptive to manufactured housing, and it's a good market area. For our business it's really a shopping hub. We ship a lot of homes to Lake, Mendocino and even Humboldt County."

Ray Perry, a real estate agent at Creative Property Services in Lake County, says inexpensive land prices have led to the popularity of manufactured homes in rural areas. "There are a tremendous amount of manufactured homes up here, and they're definitely filling a need," Perry says. "We have to disclose the fact that a home is manufactured; but when a buyer asks me what the difference is between a manufactured and a stick-built home, I say, 'Nothing-except the fact that one is designed to go down the highway at 55 mph.' Manufactured homes hold their value, and Realtors don't mind selling them," says Perry. "The only drawback is that lots are so cheap that we don't make much of a commission. The only one making money is the guy who sells the manufactured home.

In less rural areas, many California homebuyers site their manufactured homes in planned developments where they typically own the home as personal property and lease a home site from a corporation or partnership. The Manufactured Housing Institute reports that there are 5,500 such communities in California offering a variety of lifestyles. Leasing fees range from $250 to $900 per month.

Under California law, new personal property (non-real estate) manufactured homes must be sold by a retailer licensed by the Department of Housing and Community Development.

"The manufacturers have the plant-just like an auto factory-and they produce the transportable finished product," says Angel, who has a real estate license and also enlists the help of real estate agents to acquire lots for customers. "The foundation, garage, utilities and other functions related to installing the house-this is the retailer's job.

"In the industry today there is a lot of competition for retailers," Angel adds. "The manufacturers are beginning to vertically integrate. This was a key to our merger-to protect our market share. We want to be so strong from a statewide standpoint that we can compete with a vertically integrated company, or that company would have to acquire us as his distribution chain."

Dupar and Angel, Inc., has retail contracts with three of the largest home manufacturers in California: Silvercrest Homes, Corp., Champion Enterprises, Inc. and Skyline Homes. "It's amazing how fast the manufacturers produce homes. They put out five or six completed houses per day," says Angel. "It's a fascinating process. It's environmentally controlled and fully automated. Also, it's cost-effective to buy materials in quantity and easier to control labor costs and security."

Typically it takes a little over a month to move into a home from the purchase date, and that's even if you've selected a home with options.

Incorporated in 1984 and engaged in the manufactured housing business in Sonoma County since 1966, Dupar and Angel, Inc. has weathered the tides of public perception. Currently, manufactured homes are growing in popularity with local governments and redevelopment agencies for urban in-fill and redevelopment projects.

Angel has no trouble identifying the establishment of the HUD Code (National Manufactured Home Construction and Safety Standards Act of 1974) as the single most influential factor in the industry's resurgence.

"The HUD Code allowed manufactured homes to compete aesthetically with a site- built home," says Angel. "The day of trailers was over; manufactured homes were no longer relegated to a park."

Since June 1976, all manufactured homes in the United States have been built to the HUD Code. The code, which under federal law "preempts all local building codes for single-family dwellings," is the counterpart to national model codes for site-built housing. The HUD Code sets performance standards for heating, plumbing, air conditioning, and thermal and electrical systems. Additionally, it sets requirements for structural design, construction, fire resistance, energy efficiency and transportation to the home site.

In an industry where a building code is generally only as good as its enforcement, the HUD system works jointly with the National Conference of States on Building Codes and Standards (NCSBCS) and the California Department of Housing and Community Development (HCD). These agencies inspect the design of a manufactured home for compliance and monitor the in-plant construction process as the home moves through the factory.

The Manufactured Housing Institute's Watson calls the HUD Code the first step in the evolution of today's manufactured home. "It allowed a framework for innovation, and it allowed the industry to respond to consumer demands," he says. "Now you'll see vaulted ceilings, raised Jacuzzis, name-brand appliances-all the touches that previously you'd never associate with a factory-built home."

Indeed, the manufactured housing industry seems intent on proving that a factory-crafted home doesn't need to look like one. Going a long way to dispel any myths of the factory-built home as a "cookie-cutter" product, the industry offers a dizzying array of custom options.

In California, manufactured homes are available with stucco or wood siding, and roofing of tile or composition shingles. Architectural styles include Southwest, Cape Cod, Mediterranean or traditional ranch. Housing exteriors can be designed to match any neighborhood setting.

Interiors are equally versatile. Homebuyers can choose from options such as breakfast nooks, master suites, glass cupolas and tiled bathrooms. Adaptable floor plans and attached garages or carports are available for most homes. A number of two-story models are also available.

"It's more like sitting down with a designer than the traditional practice of buying a house," says Angel. "Ninety percent of our sales are customer-selected. You've got the option to customize everything from the floor plan to the color of the carpet. There's nothing we can't do."

A recent survey by Foremore Insurance Company revealed that 93 percent of buyers of manufactured homes are satisfied with their homes, and of these, 95 percent plan to remain in their manufactured homes or move to another.

Perhaps the most negative aspect of the manufactured housing industry is the prospect of repossession. "One drawback is that if you don't pay for your home, they'll take it off the foundation and tow it away," says Perry.

A number of California financial companies have consumer, conventional and government-backed loans programs for manufactured homes. The most common financing option is a personal property installment loan with terms ranging from 15 to 30 years. Financing can generally be arranged through the retailer. Conventional real estate mortgages are also available for manufactured homes when they are affixed to real property.