George Allen / EducateMHC Blog Mobile Home & Land Lease Community Advocate & Expert

Blog Posting # 744, Copyright 2 June 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities, (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815; email: gfa7156@aol.com; or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And, SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven! – describes combat adventures in Vietnam and 40= years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of the Manufactured Housing Institute (‘MHI’), RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 20 books about MH, communities, business & management wisdom & prayer.

Drs. Samuel (‘Sam’) & Laurie Landy

Curry College, located in Milton, Massachusetts, recently bestowed honorary doctorate degrees on Samuel A. Landy, Esq. and his wife Laurie for their respective achievements in the business marketplace and charitable social work.

Sam is well known and respected as CEO of UMH Properties, a REIT that provides workforce housing in the form manufactured housing and land lease communities (a.k.a. manufactured home communities). He founded the not-for-profit Open Space Pace, an organization dedicated to raising awareness about equine and agricultural industries in the state of New Jersey. Sam, a 1982 graduate of Curry College, by dint of his and his wife Laurie’s philanthropic generosity, brought the Landy Family Student Services Area in the college’s Learning Common into existence.

Laurie is a social entrepreneur with a degree in Occupational Therapy. Along with her husband Sam, founded Special Strides, a non-profit organization dedicated to improving the lives of individuals with disabilities through therapy, recreation, and education on a farm. Every week, approximately 130 clients enhance their lives through the partnership of the natural environment and engagement with horses.

Together, Sam and Laurie were honored by Curry College with honorary doctorate degrees.

Do You Have a Sam Zell Tale to Tell?

Last week, in blog # 743, I announced the passing of land lease community portfolio magnate Samuel Zell, founder and chairman of real estate investment trust MHC, Inc., cum ELS, Inc. Also recommended reading his interesting and entertaining autobiography ‘Am I Being Too Subtle?’ Told a personal tale or two relative to visits to Sam’s office in the early 1990s – and how Sam’s support was germane to the forming of an Industry Steering Committee in 1993, for better national advocacy, and consequent founding of the Manufactured Housing Institute’s (‘MHI’) National Communities Council (now division) in 1996. That alone is an historic achievement!

Well, as is oft said, ‘the ink was hardly dry’ on that manuscript when I started receiving notes and tales from readers regarding their experiences and memories of Sam Zell. Here’s one I found to be especially interesting….

“I went to Sam’s office building. He had each floor dedicated to a type of property. One floor had the operations for the manufactured home REIT, another for the office REIT, another for the industrial REIT, etc. In a large outer office, outside Sam’s private office…was a large motorcycle. It was Sam’s, who rides it to the office building, (then up in) a freight elevator…and to this outer office. He sits us in front of his very large desk. Behind this desk, on the wall, is a large picture of a very fierce-looking bald eagle in attack mode. The eyes are large fierce-looking, the beak  open and ready to pounce. Below the picture of the bald eagle is a picture of Sam in the same position of the eagle. In our half hour conversation I could not keep my eyes off the pictures of Sam and the eagle. Sam noticed I kept looking at his picture, then of the eagle. Finally he asked me what I thought his reason for putting the two pictures in that positon. I gulped and said, “Two birds of prey”. He said that was close enough, and thanked me for my honesty and candor.”

A final observation relative to the business wisdom of the late Samuel Zell. Here quoting from his autobiography, “This has always been a fatal flaw in U.S. real estate: the volume of development has been related to the availability of funds, not to demand.” Think about that. In good economic times what gets built? Whatever dream a developer has, whether really needed or not. Like when downtown condominiums are overbuilt – then converting them to apartments as the only way to fill them. Conversely – like today, when our nation is faced with a serious affordable housing crisis (i.e. record high demand), local regulatory barriers to all forms of affordable housing prevent the development of much-needed land lease communities just about anywhere in the U.S. If you haven’t done so already, visit amazon.com and order a copy of ‘Am I Being Too Subtle?’ by Sam Zell, and avail yourself of more of his business wisdom.

National Average Site Rent in 2022

According to a recent Wells Fargo Multifamily Capital press release, “the national average monthly site rent (in land lease communities, a.k.a. manufactured home communities & MHCs) was $613 for all-age communities and $686 for age-restricted (55+) communities. This compares to a national average conventional multifamily (apartment) rent of $1,715. MHCs continue to lead the housing sector in affordability and sustainable rent growth across the majority of U.S. markets.”

So, what’s your reaction to those statistics? Mine? Applying the Traditional 3:1 Rule for estimating rental homesite rates in any local housing market, divide the $1,715 figure by ‘3’. The answer suggests land lease community rental homesite rates nationwide should be in the neighborhood of $572.00 – considerably less than either of the survey totals put forth in the press release. All this confirms the widespread belief that community owners/operators are pricing themselves out of the affordable housing market! Which then raises the question, ‘How can MHCs continue to lead the housing sector in affordability and sustainable rent growth?’*1

End Note.

1. There is one offsetting rejoinder to the statistics cited above. For the most part, these rental homesite rent rates are characteristic of what we generally refer to as being ‘institutional investment grade-sized land lease communities’, i.e. properties containing more than 100 rental homesites apiece. Smaller properties, which actually comprise 75-80 percent of the national inventory of this investment real estate asset class, generally charge lower site rent rates per month than aforementioned ‘institutional investment grade-sized communities’.

Infamous Quote of the Week

“I believe you should be able to prove who you say you are when you vote.” Senator Kennedy from Louisiana.

George Allen

Blog Posting # 743, Copyright 25 May 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And lean lease communities, (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815; email: gfa7156@aol.com; or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And, SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes combat adventures in Vietnam and 40+ years business career in MH and communities

George Allen, CPM®Emeritus, MHM® Master, Emeritus member of the Manufactured Housing Institute (‘MHI’), RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 20 non-fiction books.

‘He Made a Difference’

            The late Sam Zell’s desired legacy, as stated on page # 206 of his autobiography ‘Am I Being Too Subtle?’ was simply: “He Made a Difference!” And a difference he certainly made! While there’s a lot that can be said about Sam’s long life and multifaceted career, I’ll simply share anecdotes germane to manufactured housing and land lease communities.*1

            One observation, so significant it risks being overlooked, is that during his lifetime Sam Zell amassed the largest real estate investment property portfolio of land lease communities in the entire world! By the time I retired in 2021, Sam’s public company, Equity Lifestyle, Inc., (‘ELS, Inc.’), a real estate investment trust (‘REIT’) owned nearly 400 such communities, comprised of almost 150,000 rental homesites nationwide!*2

            But what the real estate investment public does not generally know is, through the efforts of Sam’s top land lease community executive at the time, Randall (‘Randy’) Rowe – today founder/head of Green Courte Partners, Sam’s firm ELS, Inc. (then MHC, Inc.) was one of three firm’s ‘going public’ as REITs: ELS, Inc., Chateau Communities, Inc., and Sun Communities, Inc. A fourth firm, United Mobile Homes (‘UMH, Inc.’) – now UMH Properties, Inc., had been a REIT since the 1980s. All this occurred during 1994, six months to a year after 19 (then) manufactured home community owners/operators met in Indianapolis, IN., on 31 August 1993 to form an Industry Steering Committee (‘ISC’) – the first national advocate for the real estate asset class. Most of ISC’s efforts were directed toward Wall Street analysts, convincing them of the financial viability of this unique type real estate investment. Then, on 1 January 1996 ISC was rebranded as the Manufactured Housing Institute’s (‘MHI’) National Communities Council ‘NCC’), later designated a division of MHI. All this would not have happened if not for Sam Zell’s interest and support regarding better representation for land lease communities. For more about this truly historic chain of events, read the late Bruce Savage’s ‘The First 20 Years!’, published in 2013.*3

            An enduring personal and corporate heritage. Sam Zell, by authoring his autobiography ‘Am I Being Too Subtle?’ ensured himself an enduring place in manufactured housing history. While the majority of this book covers other aspects of Sam’s life story, he does give ‘more than a nod’ to land lease communities – though he refers to them in a different manner. He tells the reader, “Some of my most lucrative investments seemed counterintuitive – manufactured home communities.” Know what? To date, no other contemporary major portfolio owners/operators of land lease community REITs have followed Sam’s heritage example! Though, we do have autobiographies by Jim Clayton, Al Schrader, and Jim Scoular; and the late pioneers Kris Jensen, Sr., George Goldman, the Cohron twins, and Dr. Matthew Jenkins.*4

            How interesting can it be to ‘tell your story’ in memoir (i.e. ‘short story’) format or more? In Sam’s autobiography he relates this about his late friend and executive at ELS: “Howard Walker…once said he felt like he was walking into the inside of a Juicy Fruit wrapper when he visited (our offices), i.e. We invented business casual.” Now, wouldn’t you like to know more about what that remark means? Howard did not leave us his side of that tale. But I will tell you this, walking into Sam’s office was always an ‘antique road show – like experience’. One example; the large carved wood hand holding a scale-sized business card. Significance? Allegedly, if you pissed Sam off, he’d remove your business card from his file and mail it back to you!

            So, are you making a difference within your personal and corporate spheres of influence? I hope so. And if you are, then maybe now is time for you to contemplate the past and future and how you’ll be viewed and remembered years from now. Just as I used passages from Sam’s book to pen this valediction about him. Need some help to this end? Send me an email via gfa7156@aol.com, and when the new booklet ‘Who Will Preserve Your Legacy? Answer: You!’ is ready for distribution (soon), I’ll mail you one for FREE. Be sure to include your postal mailing address.  GFA

End Notes.

1. Sam Zell’s autobiography, ‘Am I Being Too Subtle?’ is available for purchase via amazon.com, and is also included in the Allen Collection of Land Lease Community Resources at the RV/MH Hall of Fame in Elkhart, IN. The RV/MH Hall of Fame library also houses all autobiographies mentioned in this blog posting.

• This information quoted from the 29^th annual ALLEN REPORT, included as Appendix I in the land lease community history text, ‘SWAN SONG’, available via www.educatemhc.com

• ‘The First 20 years’, by Bruce Savage, is available via www.educatemhc.com

• Watch this blog posting for the release of a new edition of ‘Who Will Preserve Your Legacy? Answer: You!’, and related information, in the Allen Legacy column in an upcoming edition of ‘MHInsider’ magazine.

SINCE WE’RE TALKING HERITAGE HERE

            And where will you be the Monday evening of 21 August 2023? I know I plan to be at the RV/MH Heritage Foundation’s Hall of Fame Induction Banquet in Elkhart, IN. Why? Because it’s the one time each year when hundreds of the crème’ de la crème’ of manufactured housing & recreational vehicle industry pioneers and notable individuals gather for an evening of socializing and honoring ten men and women being ushered into the prestigious Hall of Fame.

            Will you join me? Order event tickets via (574) 293-2344 or visit the RV/MH Hall of Fame website for more information. This year, Spencer Roane and I plan to host one or more tables at the banquet. Interested in joining us? When ordering and paying for your tickets, inform the Hall of Fame staff you would like to sit at one of the tables hosted by Spencer and me. Then let me know via email: gfa5156@aol.com, so we know to expect you. Trust me when I tell you it’s always a fun evening, seeing old friends, making new ones, and celebrating the rich history of these two industries. See you there!

            If you have not yet toured the new (in 2022) manufactured housing exhibit hall at the RV/MH Hall of Fame facility in Elkhart, plan to do so on the 21^st. Arrive early in the day, tour one or both exhibit halls (other one is for the RV industry), patronize the well-stocked store (i.e. books, clothing, souvenirs, and more), and then return to your hotel room to freshen up and dress for the evening festivities.

            While I haven’t made formal arrangements to this end yet, I am willing and able, on request, to spend an hour or two with anyone who’d like to learn more about researching and writing their personal and corporate memoirs (i.e. short stories), and how to maybe eventually compile them into a self-published autobiography. By that time, the aforementioned booklet: ‘Who Will Preserve Your Legacy? Answer: You!’ will be ready for distribution. Anyone who spends time with me on the 21^st will receive a FREE copy of the newly updated publication. Here too, let me know of your interest via email: gfa7156@aol.com

            And here’s yet another thought. Are you interested in being inducted into the RV/MH Hall of Fame – or to nominate a friend or business associate for this honor? I’ll make myself available to you, to that end as well, if you’ll arrange to do so ahead of time. Just let me know of your interest, again, via email.

INFAMOUS QUOTE OF THE WEEK

“No ordinary American cares about Constitutional Rights.” Joe Biden

LATE BREAKING NEWS…

From a Housing Alert from the Manufactured Housing Institute (‘MHI’): Today (5/19/2023) the Department of Energy (‘DOE) announced it will delay the compliance date for the Energy Conservation Standards for Manufactured Housing.” This is the result of a huge public outcry to the DOE from major housing manufacturers, state housing associations, and more than 500 campaign form letters motivated by MHI. There’s still work to be done!

MHARR’s Two-part ‘Issues & Perspectives’

In the first part, dated June 2023, the Manufactured Housing Association for Regulatory Reform (‘MHARR’) addresses “the negative impacts of zoning discrimination and inequity”, originally put forth in its’ July 2022 White Paper. The second part (still to come) will address “the failure to implement DTS (i.e. Duty to Serve) and resulting lack of fully-competitive consumer financing for HUD-Code manufactured homes.”

It’s no secret, the animosity between our (MH) industry’s two national advocacy groups headquartered in Washington, DC and Arlington, VA. After three long pages of verbiage on the first matter, there’s this thinly-veiled diatribe: “…the national association which collects dues payment from the industry’s post-production sector has failed to take aggressive action to demand an end to discriminatory zoning exclusion and inequity that harms both the industry and millions of Americans in need of affordable housing.”

How to comment on this accusation? The target here is also a national association, which – following the money, is and will likely always be, at the behest of who pays the most (Think HUD-Code housing manufacturers)! At the same time, the post-production sector certainly has an agenda of its’ own (e.g. end discriminatory zoning & inequity), and is perfectly capable of launching out on its’ own again (i.e. Recalling what happened on 8/31/ 1993 and ten years earlier) to make its’ displeasure known and begin corrective action. But this has not happened to date, and in my opinion, will not occur. Why? Because the elected powers that be, in one particular sector division, are high-salaried executives with large portfolio firms and evidently happy with the status quo they control*1

If you agree or disagree, let me know via gfa7156@aol.com

End Note.

1. 8/31/1993. Read about birth of the ISC cum NCC in ‘He Made a Difference’ story. And in mid-1980s, disgruntled members of MHI left to form the MHARR.

George Allen

Blog Posting # 742, Copyright 18 May 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EduateMHC, telephone (317) 881-3815; email: gfa7156@aol.com; or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And, SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam and 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of the Manufactured Housing Institute, RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts.

Homeowners/site lessees Protest

In Montana, a major land lease community portfolio owner/operator recently won approval to develop nearly 300 new rental homesites in a city in that state. Who do you think spoke out against this proposal, and why? Homeowners/site lessees already living in the petitioning firm’s properties, fearing high rents for new move-ins! In my opinion, while the developer won this battle, the fact that homeowners/site lessees are now speaking out against land lease community owners/operators with reputations for apparently abusing residents, is not only an historic ‘first’ but a ‘telling’, albeit negative, happenstance for the realty asset class at large.

Another indicator that consumer sentiment has shifted from relative neutrality, where rental homesite rates are concerned, is the recent quip in a national online trade newsletter suggesting a major land lease community portfolio owner/operator’s nickname has morphed from ‘grave dancer’ to ‘grandma gouger’.  This is not the sort of publicity our unique income-property type needs at this time; which, in my mind, begs the question: ‘What is MHI’s National Communities Council division doing to ameliorate such matters these days? After all, they claim to represent community owners/operators nationwide. I’ve heard nothing to this end. Anyone else? If so, let me know via gfa7156@aol.com

SIX RIGHT ‘Ps’ OF MARKETING NEW HOMES INTO COMMUNITIES

First articulated in 2017, the ‘Six Right Ps of Marketing’ debuted as an integral part of ‘Four Steps to Selling & Financing New Homes On-site Within Land Lease communities’, i.e. Getting Ready, Buying Homes, Selling Homes, & Financing Homes. (If you’d like a FREE 3”X5” plastic wallet card containing the four steps and Six Right Ps, simply email gfa7156@aol.com and request it. Be sure, however, to include a postal mailing address with the request.

So, what are the Six Right Ps for Marketing New MHs into land lease communities? As follows:

Right Product: brand, model, home size & configuration, appearance, floor plan, features & amenities, e.g. Community Series Homes with durability enhancing features and a WOW factor!

Right Place or location within the property, and how oriented relative to the sun and wind, and with good drainage.

Right Price per type deal customer’s Annual Gross Income or AGI; local housing market’s Annual Median Income or AMI; & 30% Housing Expense Factor, & workable rental homesite rate.*1

Right Promotion per USPS (Unique Selling Proposition), e.g. Energy Star & front porch-loaded; using print & online advertising; signage off and on-site; and resident referrals.

Right People, based on anticipated sales volume and # of vacant rental sites to fill; then, capable, experienced, motivated, as well as trained/supervised sales & leasing professionals.

Right Process includes planning and procedures to ID and meet shelter needs/wants of the target audience and mix in a specific local housing market, usually defined by postal zip code.

End Note.

1. All these factors involve use of the Traditional 3:1 Rent Rule, where site rent is usually 1/3^rd that charged for a 3BR2B conventional apartment unit; and the ‘Ah Ha! & Uh Oh! Worksheet’ to calculate ‘affordable’ & ‘risky’ home loan and purchase amounts in any local housing market. This too available FREE for the asking, via gfa7156@aol.com

Infamous Quote of the Week

‘Gorsuch isn’t fit to serve (on the Supreme Court) because he uses law and not emotions.” Kamala Harris

Blog Posting # 741, Copyright 15 May 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And  SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam and 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts.

NOT EXACTLY WRITER’S BLOCK

741 weekly blog postings stretching back more than 14 years, and nary an instance where I didn’t have something newsworthy, interesting, controversial, or praise-worthy to write about. But this past week manufactured housing and land lease community ‘new news’ was hard to come by, both on the local and national scenes. So, here’s a quick ‘broad brush’ list of subjects I’m working on for here and in my Allen Legacy column in ‘MHInsider’ magazine.

Did you know? The average U.S. ‘asking rent’ for conventional apartment communities remained the same for a second consecutive month in February? It was $1,702/month. Know what that means? That applying the traditional Rule of 3, for land lease communities in any local housing market, average national site rent rate comes in around $567.00/month – assuming ancillary charges are handled alike in both income-producing property types.

Did you know? Come August 2023, it’ll have been two years since the final (of 31) annual Networking Roundtable was held in Nashville, TN. And you likely know there have been a couple short-lived efforts to launch a successor to this popular annual event for land lease community owners/operators nationwide. So far, the only viable alternative – and it’ll be 11 years old this year (10-13 September in Atlanta, GA), has been the growing SECO Conference. And just this past week, many of us received an email announcement from the Information Management Network (‘IMN’) in New York City, announcing their inaugural Manufactured Housing Forum, 28 & 29 September 2023 in Nashville, TN. Unfortunately, IMN is under the impression MH is experiencing ‘significant growth in recent years’. As you know, that’s not the case – and I’ve since advised IMN’s event coordinator of the true situation, and suggested they keynote this event with executives from the ‘Big – 3 C’ HUD-Code housing manufacturers. Suggested to her the topic might/should be: Marketing HUD-Code Manufactured Housing Brands to the National Home buying Market!

Do you read my Allen Legacy column in ‘MHInsider’ magazine? You should, and here’s why. Editorial guidance has me researching and penning this column with a dual focus in mind: what’s going on in and around the industry and realty asset class – with an historical perspective where/when possible. And it’s been fun balancing those two assignments. Here’s the most recent column, along with titles and information on the ones being written:

• Manufactured Housing Finance, a 70 Year Retrospective. This is in the March/April issue and, in my opinion, should be required reading by everyone in the manufactured housing industry. You know, history does repeat itself – especially in our industry.

• Dates, Groups & Books Narrate MH History.  Did you know the Urban Land Institute (‘ULI’) sponsored a MH ‘think tank’? Or that the professional property management text marketed by EducateMHC, first published in 1988, is in its’ 8^th edition?

• Is It Time to Tell Your Story? Visited this topic five years ago in the very first issue of the magazine. Being retold here, with addition of several autobiographies and more detailed guidelines for penning your memoirs and later autobiography.

• Vietnam Veterans in Manufactured Housing. In recognition of year 2023 commemorating the 50^th year since the end of that conflict, this column will profile many of the veterans who served in and during that period of time.

And here are a couple topics I’m continuing to research, to maybe pen later this year. ‘Sole Proprietor Land Lease Communities Soon Extinct?’ & ‘Eccentrics We Have Known Over the Years’.

If you’re not already a subscriber to MHInsider magazine, simply google the title and effect contact.

OUR UBIQUITOUS NATIONAL ANTHEM

Just before my great grandson Hunter’s final home lacrosse game as a high school student, I stood in anticipation of the playing of our national anthem. Llooked down to my left, and there, standing next to me, was our two year old great granddaughter Emerson (‘Emmie’), Hunter’s youngest sister. As I brought my right hand up to my forehead in a military salute, she did the same. And our daughter Susan, Emmie’s grandmother, standing behind us, snapped a phone photo of the two of us. As the anthem began, with the two of us saluting side by side, tears rolled down my cheeks.

Why? First, the playing and singing of the national anthem always evokes this emotional reaction, taking me back nearly 60 years to when, as a young Marine lieutenant in Vietnam, I experienced up close and profoundly, what it means to defend our nation and all it stands for – then and now. And now there’s this poignant and loving imitation of her great grandfather, by an innocent two year old, showing like respect for our flag and nation – one generation to the next!

The feeling of pride and encouragement I experienced during that tender moment was akin to similar feelings I realized when watching our grandson Travis (Emmie’s uncle) graduate from USMC boot camp in San Diego a few years ago. I thought at the time, ‘Yes, our nation is indeed in the good hands of this next generation.’

George Allen

Blog Posting # 740, Copyright 5 May 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, from SmittyAlpha6 to MHMaven –describes my combat adventures in Vietnam & 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts.

SMALL BIG THINGS…

Many a time Press Releases, and other manufactured housing industry news stories, come across my desk that all but demand attention, but lack enough substance to be worth pursuing, in this blog and elsewhere. However, a recent announcement appeared, on LinkedIn, which begged commentary.

The divisional VP of one of the large land lease community portfolio owners/operators (i.e. hedge fund spawned) described how stellar it was to work at that firm, and how well they were treating their many homeowners/site lessees around the U.S… Well, that’s not the story I’ve been hearing – for a while now; so thought I’d ‘respond’ to his narrative. Guess what? For the first time, in my experience, the LinkedIn site (I’m certain, at the request of said CEO) refused me – or anyone else, opportunity to respond! Seriously. In my opinion, blocking two-way communication is flat out wrong. And for me, it underscores; and yes, lends credibility to the rumors (?) of exorbitant rent increases, adding of new fees, and other tenant abuses by firms such as this one.

OK, Are We in Free Fall Yet?

Once again, a storm warning of potential production disaster, relative to new manufactured homes, comes from the folk at the Manufactured Housing Association for Regulatory Reform:

“…HUD Code manufactured housing industry year-over-year production has declined again in March 2023. Just-released (i.e. from IBTS*) statistics indicate HUD Code manufacturers produced 7,646 homes in March 2023, a 32.2 percent decline from the 11,279 new HUD Code homes produced in March 2022.”

How does this 21,174 YTD 2023 production compare with past years? Well in 2022 the YTD figure was 29,670; in year 2021 = 21,479; in year 2021; in year 2020 = 25,311; in year 2019 = 22,359; in year 2018 = 25,531; in year 2017 = 23,384; in year 2016 = only 19,101. So, this year (2023) we’re producing, YTD, only 2,073 more new manufactured homes than we did seven years ago! Not wanting to be a doomsday naysayer; unless our market turns around quickly and greatly, we’re potentially looking at a 2023 yearend total unit production near 81, 136 new homes (That’s the official 2016 total) – way down from the 112,886 new HUD-Code homes shipped during all of year 2022. Keep in mind, all these YTD totals are based on data provided by the aforementioned IBTS, and no one else.

So, are we entering a free fall, once again, in the manufactured housing industry? Keep watching – and preparing for the worst. After all, and as we pointed out last week, what are the Big 3-C HUD-Code housing manufacturers doing to publicly promote our brands nationwide?

End Note.

1. IBTS = Institute for Business Technology & Safety – HUD’s scorekeeper for HUD-Code manufactured housing productions.

Our Blog Postings Get Responses

Responses to last week’s ‘Brilliance or Bull___?’ blog posting:

“Yes, I too wonder about manufacturers’ ambivalence about growth. It is like watching kids dig around in a sand box overlooking the ocean and beaches that stretch for miles, and wondering why they aren’t playing there.”

“Manufactured housing has so much to offer GenZ; yet not a word about it from anyone? Don’t get it.

“One thing is missing in your ‘challenge to the industry’: Support closing or increased regulation of ‘trailer parks’ run by rape-and-pillage operators that local housing market authorities point to when they refuse to allow new communities to be developed.” (Paraphrased GFA)

“I see two core issues holding us back George: Financing tools, and lack of dealerships.”

Quote of the Week…

Another gem from Senator Kennedy from Louisiana:

“I believe America was founded by geniuses but is now run by idiots.”

Blog Posting # 739, Copyright 28 April 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities and official record of annual MJH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam & 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts.

Brilliance or Bull____?

There’s an erstwhile (i.e. former) manufactured housing employee who, for more than a decade now, has been – IMHO – writing roughshod as a ‘wannabe’ business muckraker, targeting  national MH trade advocacy groups and industry corporate executives.

Consequence? Within the manufactured housing industry at large, the hypercritic is no longer welcome to attend regional trade shows or meetings of certain national and state-based advocacy groups. And several pundits (‘learned men’), trade journalists, and industry observers/commentators, contacted by this scolder from time to time requesting input, do not respond – for good reason: ‘Why set oneself up for possible future ridicule or criticism?’

So, recalling the famous W.C. Fields’ quote: “If you can’t dazzle them with brilliance, baffle them with bullshit”, the previous two paragraphs relate to the ‘bull___’ nature of this faux journalist’s musings. But hark (‘listen’), that’s NOT the focus of this week’s blog posting. Rather, based on a recent communique and other manufactured housing-related news and op/eds, it appears this individual is onto something worth pursuing, in a word, maybe even brilliant.

Specifically, ‘Why, in the face of declining production (of new HUD-Code homes), are we not hearing from the Big 3-C manufacturers (i.e. Clayton, Cavco, Skyline/Champion) as to what they’re doing to increase interest in, and sales of, their product lines? Are they, as has been stated ‘before & now’ simply satisfied with contemporary status quo? Seems like it, to this veteran industry observer. I’ve even addressed the sorry matter in previous blog postings. Now others are coming out in word and print with similar messages/questions. It’s been posited recently that we (i.e. manufactured housing) is ‘not a fighting industry’, albeit content with letting regulators, housing competitors, and naysayers push us around verbally and legislatively. Is this true? I deign that it is! Case(s) in point: For the second and third time in recent MH industry history, preliminary group plans to popularize manufactured housing in local housing markets coast-to-coast were stifled by bureaucrats before said program got off the ground!

Returning to the W.C. Fields quip (‘witty remark’): ‘Hey manufactured housing, if you can’t dazzle us with your brilliance (at marketing and sales); stop baffling us with your bull___ – of being badgered and beleaguered. Rise up and fight for change’! Fight for market share! Go national with housing brand advertising; reintroduce would be homebuyers and existing homeowners/site lessees to today’s affordable, energy efficient, durable, manufactured homes – and the land lease community lifestyle!

Two Industry Icons Die

GALE ‘GUB’ MIX, before his retirement in year 2006 was one of the most well-known pioneers and leaders in the manufactured housing industry! Gub died on 16 March 2023 at his home in Utah. After establishing independent (street) MHRetail operations in three cities in Idaho, he founded Manufactured Housing Services, Inc., and became executive director of state associations in Idaho, Nevada, Utah, and later in Arizona. What I remember Gub for best, was his founding of what is commonly and well known today as the Manufactured Housing Congress – an annual venue purchased from Gub, and perpetuated by the Manufactured Housing Institute (‘MHI’). Gub is an RV/MH Hall of Fame enshrinee.

As a related aside, Gub’s passing underscores the need for the RV/MH Hall of Fame library to rise to the next level of archival sophistication. In this instance, Gub’s in-your-face op/eds at the turn of the century, in my opinion, were instrumental in getting the manufactured housing industry to recognize its’ chattel financing errors of that time. Are those editorials readily accessed at the library today? And a final word. Gus is no longer with us – and, as far as I know, departed without penning his memoirs for our education and inspiration. Will the same be said about you at some point in the future?

LONG LARSON has died at the age of 79 years. He joined Olive Technologies, Inc., in 1978 to work on manufactured housing foundation systems. Besides his decades of work at Oliver, he joined the RV/MH Hall of Fame board in 2001 and was elected chairman in 2008. He also served on the boards of MHI and the California Manufactured Housing Institute.

Again, an inquiring mind asks: Has anyone taken the time to research and pen the corporate history of Oliver Technologies, Inc.? Lon was obviously a likely candidate to do so, but to the best of my knowledge did not. So, let this not be a lost opportunity going forward. A corporate history of this well-known firm should have a place in the RV/MH Hall of Fame library in Elkhart, IN.

DID YOU KNOW?

“About 40.6 million U.S. households spent more than 30 percent of their incomes on housing in 2021, according to analysis from the Joint Center for Housing Studies (‘JCHS’) of Harvard University.” Quoted from ‘Affordable Housing Finance’, March/April 2023 issue, page #8.

Quote of the Week

“You need to vote for the Democrats, otherwise the illegal aliens will lose their rights!’ Nancy Pelosi.

Blog Posting # 738, Copyright 21 April 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam & 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrine, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts

Be Careful What You Read & Believe!

In a recent article titled ‘Mobile home park residents form co-ops to save their homes’, the president & CEO of Lincoln Land Policy, in Cambridge, MA, is quoted as saying:

“Nearly a third of mobile home parks in the U.S. have been bought by such (institutional) investors since 2015.” Hmm. Is this possible? Depends on what benchmark numbers are being used. For example, is this 1/3^rd of all 50,000 land lease communities (of all sizes) throughout the U.S.? Or is the executive focusing his attention on just the institutional investment grade communities, i.e. more than 100 rental homesites in size, generally with public utilities, good infrastructure, and few to no functionally obsolete homesites (i.e. too small to handle large contemporary manufactured homes)? Makes a whale of a difference in the results.

And then there’s this quote: “They ROCs (i.e. resident-owned communities) have a 100% track record of success.” Really? This is like saying ‘always’ & ‘never’ in one’s pontificating. Just don’t do it; too easily proven wrong. The same pundit should check with the Florida Manufactured Housing Association (‘FMHA’), and others, for definitive information on this tenuous topic.

Oh, and it goes without saying, when folk from outside the manufactured housing industry and land lease community real estate asset class easily use the archaic term ‘mobile home park’, it instantly labels them a ‘newbie’ to the industry, someone who simply does not know any better! Manufactured home community replaced ‘mobile home park’ in 1994, following national trade terminology surveys by the Manufactured Home Merchandiser magazine and publishing of the land development text: Development, Marketing & Operation of Manufactured Home Communities by the late David Alley, George Allen, and Edward Hicks. And Land lease community became commonplace by 2010. So, 13 years later we still struggle with naïve folk who still call this unique income-producing property type by the 1960s & 70s term, ‘mobile home park’.

And then there was this quote in an article titled: ‘An Intro to Manufactured Home Communities. What Investors Need to Know’:

“(average rent for a conventional apartment unit) was $1,345 in June 2022; however the average rent for an MHC site was $596 in mid-2022, according to a report by Cushman & Wakefield.”

I don’t quibble with the accuracy of these two monthly rent figures. It’s just that they’re of questionable veracity more information. For example, using the traditional 3:1 Rule for estimating land lease community rental homesite rate, based on apartment rent of $1,345/month, would peg this local housing market at $448/month per site, not $596. Or, the other way around, with rental homesite rate at $596, then it’s logical to expect monthly rent for a 3BR2B conventional apartment or townhouse unit to be $1,788, not $1,345. (Assuming all other rent-related factors are treated the same, e.g. water, sewer, utilities, etc.)

Three Strikes & We Could Be Out of Business!

In the past I’ve criticized MHARR executive Mark Weiss for, in my opinion, being too wordy in many if not most of his industry newsletters and ‘calls to action’. Well this time around he frames four challenges facing the manufactured housing industry and land lease communities in a direct and succinct fashion. Here he states:

“Aside from the 1) market-killing and discriminatory DOE rule…2) discriminatory and exclusionary zoning laws, 3) consumer chattel financing availability, 4) unnecessarily-high interest rates due to lack of GSE support under DTS, continue to lie at the root of the industry’s problems….” AMEN Mark, you’ve got that right, from start to finish!

This had been Mark’s response to an email message I sent him following his lament about MH production’s continuing decline through February 2023.

While Mark and I agree on the four factors he cites in the previous paragraph, I believe there’s at least a fifth to add, though it is difficult to articulate. But here’s my attempt to do so:

The turn of the century (i.e. year 2000+) saw not only MH production plummet, from 372,943+/- in 1998 to 48,789+/- by 2009, but the consequential loss of easy access to home-only loans (i.e. chattel capital),  resulting in the disappearance of 10,000+/- independent (street) MHRetailers – nary to return (e.g. 20 in Indianapolis in 1998, only one today!). With the introduction of ‘community series homes’ in 2009, land lease community owners/operators became increasingly engaged in on-site sales, siting, and seller-financing of new manufactured homes – to the extent the usual 15% of new homes going into communities rose to more than 40% by year 2015! And that’s pretty much where we are today. Still far too few MHRetailers to ‘make a difference’ and “too few” vacant rental homesites to fill with new product.

Some say there’s a ‘sixth challenge’, one related to all that’s been penned before this paragraphs (except possibly for the DOE rule being fought today in Washington, DC), that of marginal leadership at the very top of the manufactured housing industry and land lease community real estate asset class. Won’t go into detail here, and at this time, but to ask:

• When was the last time you have heard or seen the ‘Big 3-C HUD-Code manufacturers’ united, and effectively raising public awareness of our manufactured housing product to the American homebuying/site leasing and scattered owned-homesite buyers? 

• When was the last time you have heard or seen MHI’s National Communities Council (‘NCC’) division publicly decry inflationary site rent increases, and other abuses, being foisted on land lease community homeowners/site lessees almost nationwide?

Both these serious shortfalls deserve, no – demand, national discussion at the highest levels of our industry and realty asset class! But is it happening? Well, maybe so at the MHCongress in Las Vegas this week – but I doubt it. Why? Because it’s going to take industry observers and commentators like me, present at such venues, to challenge those very leaders. And so far it simply is not happening. Invite me, pay my travel expenses, and I’ll attend and challenge!

Bottom line? Until we get rid of local regulatory barriers to all forms of affordable housing (i.e. land planning & zoning/rezoning); secure consistent abundant affordable personal property financing for new and resale homes; get the GSEs, once and for all, in strong support of the industry and realty asset class at large (and not just ROCs); and relief from the pending DOE (an apt albatross-like metaphor) Rule, WE are collectively ‘dead in the still waters’ of underproduction cum lack of prosperity for all of us! Anyone out there paying attention?

I do, Mark does, and I’m confident Leslie does; but why don’t ALL our industry and asset class leaders ‘see it’, come together, and do something about this unfolding tragedy? Again, I wonder if all this was a topic of group conversations during the MHCongress in Las Vegas this week? Next best opportunity for an industry-wide, business-saving conversation? The morning of, or morning after, this year’s RV/MH Heritage Foundation’s Hall of Fame induction banquet on 21 August 2023. I certainly plan to be present; how ‘bout you? For tickets, call (574) 293-2344.

GFA

Blog Posting # 737, Copyright 14 April 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit www.EducateMHC.com to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities and official record of annual MH production totals since 1955; and my autobiography, from SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam & 40+ years business career in MH and communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, and retired lieutenant colonel of U.S. Marines – with service in Vietnam in 1968/9.

‘Who Will Preserve Your Legacy?’ booklet updated for you!

This booklet, first published in 2018, ‘sold out’ during year 2022. It has been enlarged and reprinted for distribution at the annual RV/MH Hall of Fame induction banquet in Elkhart, IN., on 21 August 2023.And copies of the booklet will be made available to interested parties. The original booklet summarized the autobiographies of ten manufactured housing (‘MH’) pioneers and notable businessmen. The new edition includes four additional MH autobiographies.

What it does not contain, sad to say, are any recreational vehicle (‘RV’) industry-related autobiographies, and autobiographies authored by female executives and entrepreneurs. However, several of the 14 MH-focused autobiographies make it clear their subjects also have ties within the RV industry. And there are at least two autobiographies ‘in the works’ from the distaff side of manufactured housing.

If, after reading the list of authors and their respective self-published autobiography titles, following here, you know of other titles worthy of inclusion in the next edition of the booklet, please let me know via gfa7156@aol.com

Kristian Jensen, Sr., authored ‘A Danish American’ back in the 1970s, and was one of the original inductees into the RV/MH Heritage Foundation’s prestigious Hall of Fame.

John Crean, founder of Fleetwood Enterprises, with Jim Washburn,  co-authored ‘The Wheel & I’. His tome, case bound with leather covers and gold-trimmed pages is a collector’s dream.

James (‘Jim’) Clayton, with Bill Retherford & Amy Nolan, co-authored ‘First a Dream’. This autobiography has gone through two editions to date and continues to be a popular ‘read’.

‘The Life & Times of B.M. Vukovich’ is a family-produced photoautobioraphy, chronicling the exciting adventures and successful business career of the late Borislav (‘Boro’) Vukovich.

Harrell & Darrell Cohron, with Matt Cohron, co-authored ‘The Trailer Twins’. Another case bound text; this is a ‘reality’ description of the business acumen of these twin brothers.

Mike Conlon’s ‘Unconventional Wealth’ is, in this observer’s opinion, Part I of his life (early years) as founder of a portfolio firm of land lease communities. Part II? Hopefully, to come!

George N. Goldman authored ‘The Road Less Traveled’. Well known throughout the Midwest during the 1970s thru 1990s, George’s book ties together tales of Woodalls and other interests.

Alvan L. Schrader’s ‘No Respect At All…A PATH TO MILLION$’, should be ‘required reading’ by everyone in the MH industry, as it clearly describes challenges facing us past, present & future.

Samuel Zell of Equity Lifestyle Communities, Inc. (a.k.a. ELS, Inc., a REIT) authored the only traditionally-published autobiography to date, ‘Am I Being Too Subtle?’ Another ‘must read’.

Matthew Jenkins, DVM, was a USAF officer, veterinarian, portfolio owner of communities, interim president of Tuskegee University, philanthropist, and wrote ‘Positive Possibilities’.

Jim, Ralph & Jeff Scoular of South Dakota, co-authored ‘Leap of Faith’ – the story of three generations of their families, a brief history of MH, as well as the RV/MH Hall of Fame.

George O’Leary’s ‘The O’Learys of Beechwood’ traces 250 years of his family’s history, beginning in Ireland, continuing in Canada and the U.S. Heavily illustrated with photographs.

George Allen’s ‘SWAN SONG’ & ‘From SmittyAlpha6 to MHMaven’ are a history of the land lease community, and author’s 50+ years in the USMC, factory-built housing, & communities.

So, where can you find and or purchase these books? They are all in the stacks at the RV/MH Hall of Fame library in Elkhart, IN. And many of the titles are also ‘for sale’ there as well (574) 293-2344. However, Kris Jenkins book is long out of print and unavailable for purchase, as is the photoautobiography of Boris Vukovich. Sam Zell and George Goldman books are available online via amazon.com, as are my two autobiographies via www.educatemhc.com. George O’Leary’s book, at present, is only available directly from him: George@rinconcountry.com

As pleased as I am to have identified and collected these 14 MH-related autobiographies, it pains me to realize how many untold tales there are, and how likely it is we will never hear of or read most of them. Some examples. Wouldn’t you like to read histories of HUD-Code MH manufacturers like the Decio family’s Skyline Homes,  John Bostick’s Sunshine Homes, Chuck Fanaro’s Hi-Tech Housing & Saddlebrook Farms (There’s an short version in ‘SWAN SONG’), and Wally Comer’s Adventure Homes? Or how ‘bout land lease community portfolio pioneers like Randy Rowe and Gary McDaniel, then Eugene & Sam Landy’s firm UMH Properties,  or Spencer & Ross Partrich firms Lautrec, Ltd. and RHP Properties? Paul Bradley’s firm ROC USA is briefly profiled in ‘SWAN SONG’. Then there’s Mike Sullivan’s Newport Pacific, as well as Dick Bessire & Keith Casenhiser’s Bessire & Casenhiser fee management firms, plus Martin, Tim & Todd Newby of Newby Management in FL. Also, individuals with unique tales to share: Spencer Roane, MHM & SECO; John Rogosich, CPM; Nathan Smith, Tim Williams (of 21^st Mortgage), Ted Boers, founder of DATACOMP, Kurt Kelley of Mobile Agency,  Matt Follett, Julio Jaramillo; and the father/son team of Kamal & Rob Shouhayib. I’d be especially happy to read autobiographies by Sharon Niccum of ACT III, and Barbara Hames of Hames Homes in IA. And the list goes on…can think of dozens more of good stories untold to date.

Need one final thought to get motivated to begin penning your memoirs (i.e. ‘short stories’) cum autobiography? The following is from Susan Orlean’s recent release ‘The Library Book’:

“The idea of being forgotten is terrifying. I fear not just that I, personally, will be forgotten, but that we are all doomed as being forgotten – that the sum of life is ultimately nothing; that we experience joy and disappointment and aches and delights and loss, make our little mark on the world, and then we vanish, and the mark is erased, and it is as if we never existed.” So, “Writing a book, just like building a library, is an act of sheer defiance. It is a declaration that you believe in the persistence of memory.” P.93.

GFA

Blog Posting # 736, Copyright 7 April 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com, or visit www.EducateMHC.com to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG, is a history of land lease communities and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes my combat adventures in Vietnam & 40+ years business career in MH & communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, and retired lieutenant colonel of U.S. Marines.

Institutional Investors & Single-Family Housing

            Did you know? “Because larger households tend to prefer the size of single-family homes, roughly 41 percent of the renter population (in the U.S.) lives in single-family homes.” This and following quotes are taken from the winter 2023 edition of HUD’s EVIDENCE MATTERS magazine; specifically, an article titled: ‘Institutional Investors Outbid Individual Homebuyers’.

            “Between 2011 and 2017, these (institutional) investors purchased more than 200,000 single-family homes at a total cost of $36 billion.” & “In the first quarter of 2022, investor purchases of single-family homes averaged 28 percent per month, compared to 19 percent the previous year….” P.4.

            Furthermore, “The increase in institutional investors began during the Great Recession, when housing prices dropped precipitously and credit tightened. During the financial crisis, investors bought foreclosed properties, often at a discount, with institutional buyers joining the usual cash purchasers.” P.4 “Institutional investors had long avoided the single-family market because of the challenge of managing dispersed properties.” P.4.

            “…researchers find large corporate investors that are buying single-family rentals and rent-to-own units tend to concentrate their purchases in ‘low income, historically non-white neighborhoods that have suffered from disinvestment, but where gentrification or real estate cycle dynamics predict medium term price increases’.” P.6

            Now, here’s something you probably do know, especially if you own one or more land lease communities – just about anywhere in the U.S. today. “Private equity investors have increased their ownership share in manufactured home communities, where, in many cases, residents own their homes but rent the land underneath their homes. Because moving their homes is difficult and costly, most of these homeowners are essentially trapped in their current location, even as the land owners raise their rents.” P.6. Now here’s an interesting comparison: “…manufactured housing is a bellwether for investors’ strategies; the return maximizing strategies that private equity firms have employed to manufactured home communities – including raising rents (in some cases as high as 50 to 60%), charging new fees, and cutting costs for expenses such as maintenance – are the same ones that investors in the rental market for single-family homes have used.” P.6.

            A solution for homeowners/site lessees living in land lease communities? “ROC USA is a nonprofit organization that helps manufactured home communities become resident-owned land trusts in which the residents collectively own the land. ROC USA has helped convert 303 manufactured home communities representing 21,386 households to resident ownership.” P.9.

            Finally, “…the (Biden) administration is pursuing measures to increase the supply of manufactured housing…by expanding FHA and GSE financing, and encouraging localities to reform zoning to eliminate barriers to (affordable) housing construction.” (And) “To bolster manufactured homes as a source of affordable housing, HUD recently announced a proposed rule to increase and index loan limits for FHA insurance for personal property loans (a.k.a. chattel capital or ‘home only loans’) to (encourage) purchase of manufactured homes.” P.10.

What’s Become Extinct During 2022 & Now Into 2023?

First, the BIG PICTURE. ‘Ten Things That Will Disappear in Our Lifetime’:

1. The Post Office. Email, Fed Ex, & UPS have minimized USPS market share except for junk mail and bills.

• The Check. Already extinct in Great Britain as of 2018. Being replaced here by plastic cards and online transactions. (Bill paying online also eats into USPS efficacy)

• The Newspaper. Younger generations simply do not subscribe to or read newspapers; rather use mobile internet devices and e-readers, & liberal slant doesn’t help any either.

• The Book. Easier and cheaper to buy online – especially in kindle format. And if using a reading device instead of a bound book, why buy the bulky product version?

• Music. (Via greed & corruption). Record labels, radio conglomerates, and live concerts are self-destructing, as older established artists are promoted, but not new talent.

• Land Line Telephone. Not needed anymore unless a large family makes lots of local calls. Use land line telephones and wind up paying double charges each month.

• Television Revenues. More people watching TV and movies via streaming on their computers. Cable rates and commercials encourage watching online and via Netflix.

• ‘Things’ That You Own. More and more they’re ‘in the cloud’. Who has photo albums anymore? Even CDs & DVDs are in the cloud. Pay a monthly subscription fee to provider.

• Cursive Writing. Not taught in many schools any more. Why? Most writing is now done on computers or keyboards. Personal handwritten notes now mostly passe’.

1. Privacy.  Cameras are everywhere, even built into computers and cell phones. GPS systems track you everywhere. Buying habits known via store codes.

The MH Picture. What’s extinct in manufactured housing and land lase communities matters? Opinions will vary on this, but cited examples are worth discussion & consideration.

• Affordable Housing. Manufactured housing prices continue to escalate (with too few exceptions) & increasing rental homesite rates (via equity investors) discourage buyers.

• Professional property management, never a strong interest among community owners/operators, is now reduced to one online certification program, & IREM’s CPMs.

• The ALLEN REPORT, ‘Who’s Who Among Portfolio Owners/operators of Land Lease Communities’ was a realty asset class staple for 30+ years. It no longer exists.

• No monthly trade publications. The Journal, Manufactured Home Merchandiser, & Allen Letter are long gone; replaced by MHInsider print magazine, and MHReview online

• No more ‘national registries’ of MH and real estate lenders and freelance consultants. Also, no more industry lexicons & glossaries of MH trade terms

• No more annual National Roundtable events for community owners/operators. However, being replaced by annual SECO Conference in Atlanta, GA.

• Little to no widespread sources of chattel capital or ‘home only’ loans for manufactured housing on rental homesites in land lease communities – despite assurances otherwise

• Mystery Shopping Services no longer readily available to owners/operators of land lease communities. A staple for apartment management, why not land lease communities?

So as you can see, things are a-changing throughout society and certainly within our sister MH business models – HUD-Code housing manufacturing and land lease community operations.

Frankly, it was my sincere hope 30 years ago, when 19 community owners met in Indianapolis to launch what would become MHI’s National Communities Council (‘NCC’) division, that said NCC would ‘someday’ be the primary source of all eight bullet points listed above. That has not happened; and in my opinion, the realty asset class has reverted to pretty much back to where it was in 1980, when syndicators of community ‘tax write-off’ deals ruled the ownership roost.

What to do about this sad situation? I’m unsure. But here are two perspectives to consider:

The recent fizzling of the National Manufactured Housing Awareness campaign (Thanks Ken Corbin, for trying) confirms a sad reality about our industry; namely, it’s unwillingness to pull together – message, dollar support, & leadership wise – to advertise and tell ‘our story’, simply because smaller players (i.e. manufacturers) might benefit from the primary participants $ largesse. And it does not help, having two national advocates for the industry, competing for political and regulatory favor in our nation’s capitol. Like it or not, that’s just the way it is!

On the ‘community side’? Since it is obvious the politicized (as in control by a few large portfolio players) NCC is not up to the above cited tasks, someone else must step in to create and lead owners/operators forward. Who will that be? Not me; I was there the first time around, but now retired. Well, the SECO conference planning team is certainly headed in the right direction – so support them with your participation this fall. Who else? Now that DATACOMP, MHVillage, et. al., is/are owned by Equitable Lifestyle Communities (a.k.a. ELS, Inc.), they are in a strategic position to provide needed leadership for land lease community owners/operators nationwide. And now there’s also the manufacturedhomes.com group in CA.

When and how to bring all this together, for ‘both sides of the MH house’? Too little time left before the annual MHCongress in Las Vegas, so next best time might be at the RV/MH Hall of Fame in Elkhart, IN., during early August 2023. I’ve arranged successful national meetings there twice before. So maybe that’s the starting point once again. I’ll be pleased to assist this time around, just not lead. To discuss the matter further, email me via gfa7156@aol.com or phone (317) 881-3815.   

QUOTE OF THE MONTH

Senator Kennedy from Louisiana: “We don’t have a gun control problem; we have an idiot control problem.”

Blog Posting # 735, Copyright 7 April 2023. EducateMHC

This blog posting is a radical departure from the manufactured housing and land lease community fare I’ve shared with you weekly for the past 14+ years. Events described here date back 54 years, to when I was a young lieutenant of U.S. Marines serving a 13 month tour as a combat engineer in the Republic of South Vietnam. Had many adventures during that time in my life, but those chronicled here were among the most harrowing. Nothing graphically gruesome however, as I was penning these letters to my wife Carolyn and toddler daughter Susan; certainly did not want to unduly alarm or depress them. The letters you read here are among 400+ I sent to Carolyn at that time. I’m now transcribing them into a 600+ pages Allen Family Journal, copies of which will be prepared for Susan, her brother Adam, as well as Carolyn and me. GFA

My autobiography, From SmittyAlpha6 to MHMaven!contains more stories and photographs from my combat tour in RVN. To order, visit www.educatemhc.com or google the book title.

George Allen

Largest Enemy Weapons Captured During Vietnam Conflict

An Excerpt from Chapter 12 of the Allen family Journal, subtitled,

‘My 13 Months in the Republic of South Vietnam during 1968 & 69’

Introduction. There were several defining moments during my combat tour in Vietnam as a lieutenant of U.S. Marines. First, as a combat engineer officer, participating in the breakout from the infamous Khe Sanh combat base. Then, training in Japan & Okinawa as an Atomic Demolitions Munitions (‘ADM’) technician, for secret deployment into North Vietnam if need be; and, during February 1969, participating in Operation Dewey Canyon, in the Ashau Valley adjacent to the Laotian border. During that latter period I was the shore party battalion’s primary rigging officer, preparing slinged and cargo net external loads for helo-lifiting into and off mountaintop Fire Support Bases (‘FSBs’) manned by grunts (infantry), and Helicopter Support Teams (‘HSTs’) from shore party companies*1

22 February 1969

Hi My Love,

            (Well into the letter) Wasn’t going to tell you what I’m about to, but I’ve been candid and honest and open about my work over here, so there’s no reason to keep something like this from you until it’s over or canceled.

            A few days ago, one of our grunt (Marine infantry) companies, out on the Dewey Canyon operation, captured two large enemy (Russian) field artillery pieces – originally thought to be 122mm howitzers (5,500 pounds each), but were determined to be 122mm field guns (14,500 pounds apiece). Yesterday I received ‘hints’, and today almost ‘definite word’, that, in the next couple days, I’ll be dropped into the jungle in the vicinity of the guns. Then, have to clear a landing zone around them, rig the guns for helo-lifting, and hook them one at a time, to a hovering CH-53 or CH-54 ‘flying cranes’, for retrograding back to Vandegrift (‘VCB’)  or Quang Tri forward combat bases . I don’t think I have to tell you this could be a pretty hairy experience, but I’ll do the best I can to get them out. To give you an idea about the size of these weapons, they’re larger and heavier than the 155mm howitzers you’ve seen in photos.

23, 24, 25 February 1969

            (Portions of these letters are missing) Before we quit for the afternoon, we started stripping all the gear we could from the first gun – to make it as light as possible for the flying crane. The guns are really interesting, as all writing on the guns is in Russian; and a lot of the accessory gear (firing lanyard, intact 122mm rounds and firing tables) was still here when I arrived.

            Just learned these are the biggest enemy weapons captured during the Vietnam conflict! They will probably be sent back to the states as war trophies once I get them lifted out of here. Would have lifted the first gun out this afternoon, but the engineers still have trees to fell around the guns, as the CH-53 & CH-54 need a lot of room to hover over heavy loads.

            Well hon, it’s so dark I can hardly see to write any more tonight.

            It’s now the morning of the 24^th and a long night it was. Seven of us slept under a poncho lean-to positioned over our fighting hole. Along about 2300 hours (11PM) the ‘shit hit the fan’, as we became the brunt of an enemy ground attack. Don’t know how many gooks there were, but the air was filled with bullets and RPGs (rocket-propelled grenades). The attack (firefight) lasted about 30 minutes before the enemy broke contact and withdrew. Don’t know how many of them we killed, but we had a few casualties ourselves.

            Now we’re sitting here waiting for the weather to break so I can get those guns out. I expect the flying crane will arrive around 1400 hours (2pm). So I’ll likely be spending another night out here.

            Sorry ‘bout the quality of my penmanship this morning, but wet paper does not help much. We are thoroughly socked-in right now and a light drizzle is falling. Boy it sure is desolate out here. Not a lot more to tell you right now dear. Of course I love and miss you something terrible. Can’t wait to get home to you and darling Susan (daughter).

            Well, it’s now 1400 hours. Since writing you this morning I’ve rigged both big guns (just hope they fly OK) and survived yet another firefight, but more on that later.

            These guns sure weren’t the easiest thing to calculate and rig. We finished stripping the guns of armor plate and accessory gear to make them lighter. Then I had to figure out the rigging. This is what I came up with: from the donut-shaped nylon lifting ring, two 16’ slings out to the end of the gun tube (barrel), two 17’ slings out to the end of each of two trails, and two 5’ slings on each side of the guns to the wheels and axles.

            Know where I was when the next firefight started? Sitting out on the very end of the long gun tube (barrel), straddling it as I attached the heavy nylon slings. A couple Marines were sitting on the trails and gun carriage to counterbalance my weight on the tube…when the gunfire started. My men dove for cover – while the tube and I hit the dirt.

            One of our OPs (observation posts) radioed in a while ago and reported seeing enemy troops and elephants loaded with gear. Also this afternoon, one of our patrols found the firing sites where these guns had been located, and uncovered numerous bunkers, two gun pits, and many documents. Really an outstanding find.

            Stopped writing for a minute, to take a look at the captured gear. Manuals (all in Russian) for the big guns, gas masks, 50 caliber ammunition, and a personal diary. Some of my buddies out here tell me, that during the assault, grunts saw individuals who were definitely not Vietnamese – much much larger in stature, and heard talking and hollering in a foreign language – sounding like Russian.

            Well love, I’ve got a bit of a headache, so I think I’ll close for now. Darling, I do love you so very much and wish I could be home with you and Susie right now.

            It’s now the morning of the 25^th. Slept like a rock last night. Hit the deck at about 1930 hours and didn’t stir until about 0730 this morning. No firefights or incoming rockets or artillery rounds last night – at least none I heard. Was really tired, but feel great this morning, except for bad news I just heard. Seems someone back at VCB does not feel the ‘flying crane’ can lift out the guns in one piece (I disagree); so now an ordnance team is on its’ way out to dissemble the guns for lift out. I really think that is going to be more trouble than it’s worth; first off, any manuals we have on the gun (and these are few at that) are written in Russian; secondly, we don’t have the necessary tools to dissemble them; and finally, even if we can get the tubes separated from the gun carriage and trails, the barrel alone (5-6,000 pounds) is going to play havoc as we try and manhandle it off the carriage. Looks like I could be here at least today and tomorrow awaiting disassembly.

Right now we’re just sitting around waiting to see what the weather will bring: either ordnance guys to take the guns apart or a crane to lift the guns out intact.

Know what? I love you lots! Really I do. Sure wish I was on my way home to you;

I miss you and little Susie so very much..

            Hi again love. It’s about noon and not much has changed since I wrote earlier this morning. Had one CH-53 fly in this morning and drop off the ordnance team. Now they’re hard at work on the gun. Wish them luck, as those guns are going to be a bugger to take apart.

            Remember the small U.S. and Pennsylvania flags your mother gave me? Well I taped them to one of the guns, before preparing them for retrograding.

            Back again. It’s about 1800 hours and guess what? The guns and I are still here. In fact, the only helicopters we saw today were emergency resupply birds bringing in water, chow, and ammunition.

            The guns are now rigged and ready to go. It’s just a matter of getting big enough choppers out here to lift them in four lifts, plus a fifth for the large nylon cargo net containing gun gear and ammunition.

            (In the meantime) The ordnance Marines told me if I could get a CH-53 into the area where the guns are, the tubes and carriages could be helolifted out. Well I got on the radio and had a resupply bird fly over from fire support base (‘FSB’) Cunningham to pick me up to go to Quang Tri or Dong Ha. Well the pilot, after getting me aboard chickened out, due to heavy ground fire (another firefight), and would not pull the tube out. He flew me back to Quang Tri where I reported to the Battalion CO and obtained a jeep so I could go to Dong Ha. At Dong Ha I went to see Colonel Sexton, General Davis’ Chief of Staff, about getting more birds out to the Ashau Valley for the guns pickup. The colonel then sent me to see Colonel Jobe, the division air officer, who authorized CH-53s and a CH-54 to fly out and pull the guns out. My job then was finished; I’d rigged the guns and arranged for retrograde. I must have cut a less than professional appearance however, as I appeared before both colonels in my field-worn uniform, pistol belt and helmet.

            I drove back to Quang Tri, where I explained to my Battalion CO what I had done; he seemed pleased, so then all we had to do was sit back and wait to see what would happen. Result? As of 15 minutes ago, the guns arrived safely at Quang Tri LSA. Mission accomplished.*2

End Note.

1. More detailed descriptions of this historic capture and retrograde of Russian artillery pieces can be found in the short stories, ‘PUC Beer’ and ‘Pluck, Politics & Shore Party’, both contained within my autobiography, From SmittyAlpha6 to MHMaven, available for purchase via EducateMHC.com & the RV/MH Hall of Fame in Elkhart, IN. Also, the late Donald F. Myers’ book, YOUR WAR MY WAR, ‘A Marine in Vietnam’, 2000. Suggested passages: p. 59, & pp. 347 – 355; where Myers describes the assault that captured the guns: “…what eerie thoughts the enemy must have had as this rebel-rousing, reeling, cursing, insane group of Marines came at them in a John Wayne style charge. I have a feeling if I saw this berserk group trotting towards me, waving and shooting rifles, many of them with bayonets affixed, and screaming bloody murder (& some loudly singing the Marine Corps Hymn), I may have been inclined to break and run. And that’ just what the enemy did. I glimpsed shadowy figures bobbing and weaving at a distance away from our advancing force.”

• Today, one of the two guns is on display in the USMC Museum in Quantico, VA. The other one? Well, there’s an interesting story to tell, someday, about what became of that one. Hint? Has something ironic to do with the Russian conflict in Afghanistan.

All of which was just described here, occurred more than 50 years ago. For some, if not many of us, who fought in Vietnam, the memories – at times, are now distant and dim; but at other times, near and clear. I’m grateful to be alive today, enjoying life with Carolyn, the adulthood of Susan and her brother Adam and their spouses, as well as their six children (our grandchildren), and now, three great grandchildren.

TODAY, 29 March 2023, is National Vietnam Veteran Day. Take a moment to recognize, thank, and ‘Welcome Home’ Viet Vets you know. Trust me; they will sincerely appreciate the sentiment!

George Allen, LtCol USMC (retired)

Gfa7156@aol.com