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

June 24, 2022

WORST CASE SCENARIO

Filed under: Uncategorized — George Allen @ 5:49 am

Blog Posting # 695. Copyright @ 24 June 2022. EducateMHC

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: And it’s time for a transition. In this instance, from a popular blogging site to the Linked In platform. Why? It suits my present situation (i.e. ‘retirement’) better. Let our friends in manufactured housing and land lease communities know where they can continue to ‘read what’s really happening in our industry and realty asset class’. Do you realize we’re five blog postings away from tallying 700 during these past 13 years? I do, every time I pen one. GFA

I.

WORST CASE SCENARIO

One reason I continue to prepare this weekly blog, and pen the Allen Legacy column for MHInsider magazine, is because I have so many friends in the business of manufactured housing and land lease community ownership. If I don’t write in their behalf, as I did in the Allen Letter for 30+ years, who will? Answer. No one! And that’s the reason for this week’s haunting and telling question: What U.S. state is being described in the paragraph here following?

“George, as us old guys know, things are changing and not to the good. Homes that can be built in the factory in 18 days, here in _____now take up to four months and we’re at the top of the waiting list. It’s even worse out of state, where it can take up to a year to get a new home. We are not being told, here in _____, we will only be able to purchase electrical appliances for our homes until 2025. What happens to all our communities with 50 and 100 amp electrical systems An even bigger problem, here in _____, is that come 1/1/2025, even our existing long term leases will not be exempt from local rent control; and to top that off, they (regulators) are trying to pass a law that new manufactured home (rental) sites will not be exempt from rent control. Anyone who’d build another community here in _____ under these pending changes would have to be crazy.” (Lightly edited. GFA)

So, what do you think? Is this your state that’s described here or some other one?
II.

WHAT OTHERS ARE SAYING


I occasionally get to read The Ross Rant, a private newsletter, penned by Joel Ross of Citadel Realty Advisors. He recently wrote about the U.S. housing market in this fashion:

“…the housing market is now tanking quickly, which is bad for the economy. I spoke to a NYC condo broker who said they are already seeing millennials pulling back, because they no longer have the equity, due to the stock market; or they have never seen this type of economic situation in their lifetime, so are not sure what to do. I am certain the housing pullback I have been predicting is here, and will be bad, maybe 10%, but maybe more, as rates will now rise a lot more. 40% of NYC buyers are all cash, and a much higher number of FL buyers are too, so cash buyers may mitigate a tiny bit of the housing downturn. There is no way 6% mortgages, and the inflated prices can go on. Expect a pullback in housing prices to accelerate now.”

At the same time, in the June 19th edition of the New York Times magazine, a full page ad for The Towers read this way: “A beacon of timeless glamour. The Towers of the Waldorf Astoria New York has been home to the world’ most fascinating people. Live atop the internationally famous hotel, an icon which has set the global standard for hospitality and accommodation since 1931. Enjoy the best of the world’ greatest city and call the most distinguished address in New York home. There truly is no place like it. New studio to penthouse condominium residences priced from $1,800,000 defined by unsurpassed amenities, legendary service, and incomparable history.”

Tried to get a handle on how many single-family homes have been purchased during the past decade and turned into rental units. Here’s as close as I could get:

There’re 128 million households, with 62 percent living in owned homes and 38 percent in rental units. And of the 49 million rental units, 35 percent are single-family homes, 62 percent are apartments, and four percent manufactured homes. So, does that mean there’re 17,150,000 single-family homes (not including manufactured homes) today being used as rental units? And during the Harvard Joint Center for Housing Studies briefing (‘State of the Nation’s Housing’) on 22 June, we were told that 16 to 40 percent of all single-family home sales are of this sort, with the national average being 28 percent. Now you kinda know….





III.


LAST WEEK’S BLOG A LIGHTNING ROD

I was hoping it would happen and it did. Received considered responses to the subject matter (about ‘Woke folk’, ‘Innovations in MH’, & ‘MH as Affordable Housing’) from several sources. What follows here are a few of the comments gleaned from those email messages:

“My first solution is resident ownership, George. Has been and always will be. Homeownership to me is about basic economic security and wealth-building. Pretty fundamental.” Here the writer is talking about resident-owned communities, not the traditional land lease ones. However, as suggested in Part III of that blog, let’s also get conventional real estate mortgages into land lease communities where ownership grants leases with terms extending beyond the home mortgage.

“While all your observations are true, there is a deeper level at which manufactured housing has problems.” We have manufactured housing product tunnel vision; which is to say we do little to ensure value retention in the event said homes are repossessed (without the land on which they’re installed) – thanks in large part to chattel financing. And the matter of appropriate installation; even a “…well-financed manufactured home placed in a low spot will result in a major loss to a bank at some point I guess it is one step too far to have manufacturers see this has a big effect on them too – about every ten or so years.”


IV.


HINT OF THINGS TO COME (?)

From several sources of late, there’s been interest expressed in renewing the ALLEN REPORT (‘Who’s Who Among Land Lease Community Portfolio Owners/Operators Throughout North America!’); resuming the Networking Roundtable for Community Owners/operators; and, scheduling one day sessions of the popular Manufactured Housing Manager (‘MHM’) professional property management training and certification program. Too soon to announce specific plans, events, or dates – but it’d be helpful to know how many of you would be interested in one or more of these three resources. Communicate your thoughts and desires via gfa7156@aol.com


George Allen, CPM, MHM. EducateMHC



June 15, 2022

‘WOKE’ FOLK OPPOSE AFFORDABLE HOUSING!

Filed under: Uncategorized — George Allen @ 9:19 am

Blog Posting # 694. Copyright @ 17 June 2022. EducateMHC

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: During my 40+ year career in manufactured housing, as land lease community owner/operator, author, and trade press journalist, I can pinpoint times when my efforts have affected our business practices and history. Examples: transition from ‘mobile home park’ to manufactured home community – and now land lease community. Then, with 19 other community owners, beginning the process of birthing MHI’s NCC division. Formulation of the Industry Standard Chart of Accounts with Operating Expense Ratios (‘OERs’). And bringing professional property management to our realty asset class via the Manufactured Housing Manager certification program (1500+/- MHMs today in U.S. & CN.). Finally, there’s the New Rule of 72 ‘valuation formula’, and widely used ‘Ah Ha! & Uh Oh! Worksheet for home pricing. Now, I pen all that to simply say:

What follows here in Part I should be ‘required reading’ by all! And the last paragraph in Part II describes my epiphany of ‘there’s a better way for MH & LLCommunities’! And then, in Part III, I lay it out for you in a succinct triparte fashion. Will this first time combination of ideas go anywhere? Only time – and you, will be able to tell and know. But I sure hope so! Read on….


I.

‘WOKE’ FOLK OPPOSE AFFORDABLE HOUSING!

Here’re portions of opening and final paragraphs of a four page expose’ that arrived on my desk this week. I sincerely believe it should be ‘required reading’ for every businessperson, regulator, and trade association executive active in the manufactured housing industry and ownership of land lease communities!

“The leaders of the ‘woke’ mob – inside government and out – will never admit they actually oppose affordable housing and homeownership for millions of lower and moderate-income Americans, including inherently affordable manufactured housing. But they do, with every means available to them. Naturally, they deny the truth of what they do to undermine affordable homeownership for lower-income Americans. In fact, they will tell you just the opposite – that they really care about lower-income people and that, through their various efforts, they simply want what supposedly) is best for them.” (Lightly edited. GFA)

How does this play out? “The first and most comprehensive tool the ‘woke’ elite deploy against affordable homeownership, and Americans who need and require affordable homeownership, is restrictive and exclusionary zoning.” & “…it should surprise no one that discriminatory zoning mandates are routinely deployed to exclude lower cost manufactured housing and the lower and moderate-income Americans who rely on manufactured homes as a source of affordable homeownership.”*1

A second leg opposing affordable housing? “…inflation has an indirect (and direct) negative impact(s) on access to homeownership.” Not much $ left for housing after paying inflated prices for goods and services!

And the third leg? “…excessive and discriminatory manufactured housing ‘energy’ regulation’.” How so? “…based on industry estimates…the cost impact of the looming DOE standards could be well over $10,000.00 per home – which would decimate the manufactured housing market and availability of inherently affordable homeownership for lower and moderate-income Americans.”

The final paragraph of this expose.*2 “So, ‘wokesters’ (sic), spare us the claptrap. The truth is your ‘equity’ is as phony as a three dollar bill. Far from helping the working poor and countless other lower and moderate-income Americans, you are their worst enemy, working to deprive them of life’s most essential elements, beginning with a safe, decent, and affordable home.”

Hopefully the previous six paragraphs have been a wake-up call for you – as they should be!
But what to do about this sad situation? What follows in Part II is an example of ‘what not to do’; and in Part III, a bold suggestion as to what might well be done! Read on…

End Note.

1. It’s worth noting that, as one reviewer of a DRAFT copy of this blog observed: Not only are ‘woke elites’ hippocrats relative to affordable housing policy, but so are ‘conservative elites’. NIMBY, LULU, & BANANA cut across all socio-economic lines. The abbreviations? ‘Not in my back yard!’, then ‘Locally unwanted land use!’, & ‘Build absolutely nothing anywhere near anyone!’ And there are more….

2. MHARR’s Issues & Perspectives by Mark Weiss. Titled: The Woke’ War on Affordable Housing, and dated June 2022. To reach Mark, phone (202) 783-4087

II.

INNOVATIONS IN MANUFACTURED HOMES

The actual title of the hour long webinar on 13 June, hosted by the Lincoln Institute of Land Planning, was INNOVATIONS INI MANUFACTURED HOMES (‘I’m HOME) NETWORK RELAUNCH. You may or may not know that the I’m HOME network, launched in 2005, by Prosperity Now (formerly Corporation for Enterprise Development), has found a new home at the Lincoln Institute.

This relaunch webinar attracted 200 listeners; was led by James Gray (former executive with the Federal Housing Finance Agency or FHFA); moderated by George (Mac) McCarthy, CEO of the Lincoln Institute; and featured a panel comprised of Paul Bradley, founder and head of ROC USA – a resident-owned community facilitator; Grant Beck, VP of Strategic Relationships for Next Step; and Dave Anderson, leader of the National Manufactured Home Owners Association or NMHOA – a homeowner/site lessee advocacy group.

The webinar began with Mac McCarthy making it clear that Innovations in Manufactured Homes Network’s goal was to ‘be a political force for manufactured housing’. This was followed by his update relative to the present state of manufactured housing in the U.S. today – citing how the price of a new manufactured home has jumped from $87,000 in 2020, to $123,200 in a nonspecific period of time (i.e. no specific year or time frame cited). He concluded with reference to the Lincoln Institute’s expertise in land planning, and working relationship with the two GSEs (Fannie Mae & Freddie Mac), and how researching/publishing ‘state level fact sheets relative to manufactured housing’ is a present day goal for the institute. Mac also made passing reference to the very large volume of single family houses being purchased by private equity firms today – then leased to lessees.

Then the panel presentations began.

It was interesting to learn ROC USA has assisted in the present day existence of 294 resident-owned land lease communities in 20 states. Paul did address the massive rent increases afflicting residents of some land lease communities today. His solution? Simultaneously, gets conventional real estate financing on-site, and have community owners commit to long term leases to protect interests of mortgagees.

Grant @ Next Step focused on the stigma of manufactured housing, and how his group’s answer to that barrier would be better zoning and more chattel capital available for home-only loans for said homes.

Dave @ NMHOA suggested ‘discrimination’ was more the issue, where manufactured housing was concerned, than just stigma. Most of his remarks had to do with what is being done on the state level around the U.S.

I couldn’t get past the fact this webinar was manned entirely by executives from not for profit entities. And while it’s certainly helpful to have them aboard in this ongoing search for affordable housing, I think it’d have been just balance to have representatives present from the for-profit sector of the industry, e.g. Manufactured Housing Institute (‘MHI’), for starters. Maybe next time…

Major takeaway for me? Three ideas to explore, and in time, incorporate into manufactured housing – the product, and land lease communities – the real estate sector, to ensure more affordable manufactured housing in-community and on privately-owned scattered building sites. The subject of the third and final part of this week’s blog posting.


III.


MANUFACTURED HOUSING AS AFFORDABLE HOUSING

To the best of my recollection, no one to date has stepped forward with a bold plan for addressing key issues facing manufactured housing and land lease communities today. Specifically, 1) how to reign in excessive (predatory) site rent rate increases, 2) securing conventional real estate financing (i.e. mortgages) for on-site new home sales transactions in land lease communities; and, 3)building more new hybrid (‘mixture of two heterogeneous things’) communities siting manufactured and modular homes.

How does this pencil out?

First off; recognize that since the mid-1970s, it’s been commonly known, among land lease community owners/operators, to maintain balance within local multifamily housing rental markets, the monthly homesite rental rate in the former type community should be one third the monthly rent amount charged by conventional apartment communities! Two subjective adjustments to this rule of thumb are, the disparate rental units be of similar size (e.g. 3BR2B apartment and average size single section or modest multisection manufactured home); and, charges (e.g. water, sewer, electric) for utilities be handled similarly or accounted for.

The point? Perhaps the time has come for land lease community owners/operators to press for statewide application of this 1:3 rule of thumb to combat local rent control measures. What do you think?

Second. While not presently available today, perhaps the time has come to use conventional real estate mortgages for new home transactions effected on-site in land lease communities! There’d certainly have to be protections in place to safeguard the financial interests of lenders. A big step in that direction would be community owners’ willingness to offer leases with terms at least as long as that of the home mortgage, plus provisions relative to mortgage default and lease termination.

The point? It’s likely time to move away from chattel capital financing of new and resale manufactured homes (a.k.a. ‘home-only loans’) on-site in land lease communities, to the reality of affordable, energy efficient, quality manufactured homes financed conventionally on rental homesites. What do you think?

Third. Here we’re looking at a hybrid land lease community. One designed with 1) spacious rental homesites for installation of HUD-Code manufactured homes financed using conventional real estate mortgages, and 2) protection of homeowners/site lessees enjoying the security of long term leases.

The point? Introduce land planners and zoning boards to a hybrid type land lease community, where all homes and homeowners enjoy the benefits of conventional real estate financing – and likely assurance of value appreciation over time! What do you think?

OK, we’ve come a long way here, in nine paragraphs. To the best of my knowledge, this unique combination of a time-proven rent formula and debut of RE finance with long term leases on-site, has not been seen to date. If you know differently, let me know via gfa7156@aol.com


IV.

CHANGE IS A-COMING!

With this blog, I am beginning the transition from posting on a conventional blog site, to Linked In. Will keep you abreast of changes as they occur. I hope you stay with us!


George Allen, CPM, MHM
EducateMHC.com

June 10, 2022

MHShipment Volume & Stock Market Report*1

Filed under: Uncategorized — George Allen @ 6:55 am

Blog Posting # 693. Copyright @ 10 June 2022. EducateMHC

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!

EducateMHC is the online national advocate, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S> # 1 source of affordable, attainable housing! Be MHM certified!

INTODUCTION: Nowhere else will you find the breadth and depth of manufactured housing and land lease community information and statistics you find here! Manufactured housing shipment volume (for April 2022), stock market performance as of 3 June 2022, relaunching of Manufactured Homes Network on 13 June, and the latest news about all the happenings in Elkhart, IN., on 15, 16 & 17 August. GFA

I.

MHShipment Volume & Stock Market Report*1

Here’s a two part manufactured housing and land lease community trivia question for you;

What recurring statistical benchmark is reported in confusing fashion each month, and what statistical benchmark has been underreported (i.e. ‘not reported’) for several decades?

In the first instance, we’re talking about manufactured housing shipment volumes reported monthly by the Institute for Building Technology and Safety (‘IBTS’). The IBTS statistical benchmark is reported similarly by HUD, MHARR, and EducateMHC; MHI alone reports a spurious shipment volume – without explanation. One of our industry’s perennial peccadillos.

Here’s the official ‘skinny’. IBTS, for April 2022, recently reported 10,165 new HUD-Code homes shipped. This is ‘down’ from 11,279 in March 2022, but ‘up’ from 9,224 during April of year 2021. Year to date (‘YTD’) totals? 39,835 in 2022, compared to 35,723 during April 2021. And while this is progress; remember, the 105,772 new HUD-Code homes shipped during year 2021 accounted for only 10 percent market share among all ‘starts’ in the national housing market.

In the second instance, we’re talking about the stock market report prepared by EducateMHC.
Decades ago, before the emergence of land lease community portfolio real estate investment trusts (‘REITs’), a manufactured housing pundit in Pennsylvania would occasionally report stock prices for the very few public manufactured housing producers; but nothing has been reported during the past 25 years.

EducateMHC, on 3 June 2022, reported the stock prices of all ten public companies: five HUD-Code housing manufacturers (BRK-A, SKY, CVCO, LEGH, & NOBH) and five land lease community portfolio owners/operators (ELS, SUI, UMH, MHPC, & Flagship).*2 Skyline/Champion was the only firm to experience an increase in stock price during the past month. The Composite Stock Index (‘CSI’) continued its’ downward trend, from $740.09 in May to $703.83 in June.

Furthermore, according to the Federal Housing Finance Agency (‘FHFA’), the U.S. House Price Index is up 18.7 percent in year 2022 over 2021.

And throughout the U.S., the average ‘asking rent’ among multifamily rental properties is now $1,642/month. Applying the age-old 3:1 formula, this suggests an average asking price of $547/month among rental homesite rates in land lease communities. Of course this will vary from local housing market to local housing market.

I have no immediate plans to stop researching and publishing this seminal information. However, there will come a time when ‘someone’ will have to, or should, take on this timely responsibility. It’s my opinion this dual task best rests with the Manufactured Housing Institute (‘MHI’), especially now that there’s a statistician on staff. They’re already halfway there, receiving IBTS shipment data each month – just start reporting it in unadulterated fashion! The stock market report is a bit trickier, i.e. ‘when best to report this information’, since stock prices vary so often and quickly?

End Note.

1. The following data is reported for ‘information sharing’ purposes only. No intended as investment advice or guidance. GFA

2. BRK-A. Berkshire Hathaway, Inc., includes Clayton Homes.
SKY. Skyline Champion Corporation
CVCO. Cavco Industries, Inc.
LEGH. Legacy Housing Corporation
NOBY. Nobility Homes

ELS. Equity Lifestyle, Inc.
SUI. Sun Communities, Inc.
UMH. UMH Properties, Inc.
Flagship Communities @ TSC (Canadian)
MHPC. Manufactured Housing Properties, Inc.


II.

Relaunching of Manufactured Homes Network

You’d have to be awfully ‘in the know’ to already realize the ‘I’m HOME’ network, launched in 2005 by Prosperity Now (formerly Corporation for Enterprise Development), has found a new home at The Lincoln Institute. No change in focus however, as the network continues, according to a recent press release, to ‘promote manufactured housing as a strategy to keep the American dream of affordable homeownership alive for those who need it most.’

With that said, and given lively interest in the ‘current state of manufactured housing and its’ challenges’, plan now to participate in a webinar on this subject, at 12:00 PM on 13 June 2022. Two of four panelists speaking during this webinar are well known to manufactured housing veterans: Stacey Epperson, president & CEO of Next Step, and Paul Bradley, president of ROC USA.

How to register? Google Lincoln Institute Events, or simply Lincoln Institute of Land Policy, and go from there. I have no other information.


III.

All Roads Lead to Elkhart, IN.

You likely already know of the annual RV/MH Hall of Fame Induction Banquet the evening of 15 August 2022. Registrations to date suggest an audience of more than 500. Will you be present? I certainly will. For tickets, phone (574) 29302344. And if you arrive the day before, or early on the 15th, and would like a private session with me to learn how to pen your memoirs, let me know of your interest via gfa7156@aol.com And while you’re at the RV/MH Hall of Fame, be sure to visit the new manufactured housing exhibit hall, as well as the extensive RV/MH library.

And that’s not all that’s going on at the RV/MH Hall of Fame during that time frame; specifically, 16 & 17 August. The IMHA/RVIC will be hosting its annual MH plants tour and in-community new homes marketing and sales seminars. Interested? Phone (317) 247-6258.

Know what’s ‘not going on’ on the 16th of August – so far? No word from MHARR, the online trade press newsletter, and like-minded folk who claim our industry and realty asset class (i.e. post-production sectors of the manufactured housing industry) need better national representation and advocacy. Remember now, this is the focus of the ‘Put Up or Shut UP! Blog postings you’ve been reading during the past few months. So, will such a meeting happen on the 16th in Elkhart or not? Guess we’ll continue to ‘wait and see’ whether this idea sprouts wings and flies or not.


George Allen, CPM, MHM
EducateMHC



June 3, 2022

ANOTHER VIEW OF ‘PUT UP OR SHUT UP!’

Filed under: Uncategorized — George Allen @ 5:15 am

Blog Posting # 692. Copyright @ 3 June 2022. EducateMHC

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: This is probably one of the most perspective-challenging and thought-provoking blogs to come your way. And the vast majority of the content of Parts I & II are the musings of others, and not me. Though I covet knowing your response to what you read. And if inclined to do so, let us know via gfa7156@aol.com. And Part III is entirely mine. GFA

I.

ANOTHER VIEW OF ‘PUT UP OR SHUT UP!’

This will likely be my last blog, for a while, on the ‘Put Up or Shut Up!’ challenge to those who believe the post-production sectors of manufactured housing continue to need better representation and advocacy than presently provided by the Manufactured Housing Institute (‘MHI’). In this blog posting I want to share three things:

1. Yes, I’ve been receiving emails from blog floggers (readers) expressing desire to attend a national meeting where the subject of creating a new national post-production trade entity will be discussed and maybe planned for by those attending. A reminder. Convening on the 16th of August, the day after the RV/MH Hall of Fame Induction Banquet, is a near perfect timing and location. However, not everyone agrees.

2. That’s right, some of the very folk who’ve been most outspoken about this need, via their online press platform, have been posturing to the effect they just want to comment on the need, and not be personally involved in leadership to launch a post-production trade body. That’s disappointing but hardly surprising, given the hypercritical nature of past pontifications about MHI and major corporate players.

3. And it’s become increasingly apparent there’s another side to this story that heretofore hasn’t been told. Quoting from an unsolicited letter from one of the top salaried executives in the manufactured housing industry: “I believe a new post-production association to serve the interests of smaller community owners/operators, who may feel disenfranchised, is not a good idea. It will weaken an already fragmented industry at the national level.” And this: “I have seen firsthand 9how) the industry is stronger when all segments work together. This was evident when MHI, MHARR and state associations worked together to get the Manufactured Housing Improvement Act of 2000 enacted.” (lightly edited. Gfa)

Furthermore, “I understand and am sympathetic to association members (who) operate small businesses. These members do not have the same resources as larger member and may have personal and financial constraints. However, these smaller businesses are not precluded from participating in volunteer leadership. I do not buy the theory that larger multi-community owners have hijacked the National Communities Council (‘NCC division’) and are not interested in collaborating with smaller operators on issues impacting the industry.” I don’t agree with this final observation. If all was ‘so well’ at the NCC, then why are meetings so lightly attended by dues-paying members? In my opinion, as stated in an earlier blog posting on this subject, I believe it has to do with the fact the NCC does not allow proxy voting at the annual election of officers, and that scheduling of meetings at expensive resort locations causes affluent, albeit unintentional (?) gerrymandering…keeping member participation artificially low.

In closing ‘Part I’, I want to make this clear. As a retiree, I no longer have a dog in this fight. But I do feel, if those parties, i.e. MHARR, an online trade publication publisher, and like-minded parties, sincerely believe post-production sectors need better representation and advocacy, then step up to the plate, once and for all, and call for a national meeting at a central location, and take ownership and leadership of the proceedings! In my opinion, if this doesn’t occur, at your behest, between now and 16 August 2022, then ‘Shut up!’ about the situation, and stop stirring up discontent in your writings and elsewhere.

II.

YET ANOTHER INDUSTRY LEADER SPEAKS OUT

Every once in a while we receive correspondence from industry/asset class folk that speaks volumes. Received the following message two months ago and have been waiting for an appropriate time to share it with you. And while I don’t think this individual, a MH trade association executive, would mind you knowing their identity, I’m keeping it confidential. Here goes….

“Capitalism vs. socialism is the battle we are all fighting. Yes, (real estate) investors are paying too much for the limited number of (land lease) communities as first, second, even third generation owners/operators decide to ‘take the money and run.’ Yes, manufactured ho0mes are not ‘set it & forge it’ assets. And Yes, upkeep of any home can be expensive. Yes, governments, especially in blue states (and Colorado is certainly blue), are looking to ultimately eliminate private ownership of all property, provide for universal income, and view ‘housing as a human right’.” (Light edits & additions in this paragraph and those to follow. GFA)

“Supply and demand is flexing its muscles. What’s the industry going to do about it? Developing new communities and saturating the market (supply) is the only way to slow the trend (demand). But ‘not in my back yard’ (continues to prevail).

“HUD and the trade unions remain the industry’s biggest obstacles to greater utilization. The lack of involvement (acceptance, acknowledgement) by local building departments further puts the onus on community operators (‘those villains’) for requiring corrections to residents’ upkeep and safety issues. Many seniors failure to adequately plan for their financial needs in retirement is another huge problem tugging on liberal heartstrings. The destruction of family is a socialist/communist goal too – let the government take care of weird old uncle Earl. Funny how liberal news outlets never mention how inflation, local real estate price trends, gentrification (which happens in land lease communities too), or ever-increasing property taxes, may justify increasing rental homesite rent rates. It’s also never the residents’ fault.”

“IMHO, and in general, the regulatory environment has not kept pace with the evolution of ‘trailers’ to ‘multisection’ homes. RVs are the current day equivalent of the original ‘mobile homes’, yet they do not suffer near the discrimination in zoning, raw land development, or rent control pressures that manufactured housing does. Most places you can park an RV in one’s side yard, hook it up to water, sewer and electric, and nobody complains. Beauty is in the eye of the beholder. Maybe it’s the design or the cool graphics. Maybe that it remains ‘mobile’.”

So, what do you think of this view of our industry and realty asset class today? Accurate, inaccurate, or what? Let us know via gfa7156@aol.com


III.

I’VE BEEN PONDERING…

When you read this in early June, I’ll have been fully retired – except for recurring writing assignments, for ten months. And I’ve truly enjoyed the experience, the major change in lifestyle and pace. More time with Carolyn, reading, writing (working on third part of our family trilogy*1), and enjoying life. One of the highlights? Carolyn and I are blessed to have all 20 or so of our immediate family members living very nearby in central Indiana. And the birth of Emmerson Junia in late March of 2021 has brought us much joy. Why? Because two days a week we babysit her in our home. Unexpected realization? I know more about Emma June’s rapid growth during her first year of life than I ever knew of our two children, two grandchildren, and two great grandchildren, who spent their early days with Carolyn.

Point in telling you all this? I’m feeling a hankering for a change in which I communicate with you. Oh, I thoroughly enjoy blogging – but have come to the realization that I need to ‘make an appearance’ from time to time, at industry events, if I’m to stay up to date with what’s going on – and not going on. But guess what? No one to date, is interested in compensating me for travel expenses, let alone speaker honorariums, if/when I address either or both manufactured housing and land lease community audiences. And while I’m comfortably secure with our retirement income, I don’t see much sense in underwriting such costs from personal savings. So, I need to do something differently…..but what?

It’s been suggested, more than once, I take my weekly blog over to Linked In and post it there for folk who’re interested in reading it. And perhaps make it a bit more of general interest. My industry/asset class specific focus will continue in the Allen Legacy column within the pages of MHInsider magazine.

So, what do you think? Again, I’d truly like to know. Reach me via gfa7156@aol.com

End Note.

1. The Allen trilogy. Comprised of the autobiography, From SmittyAlpha6 to MHMaven!; then the 400+ page perfect bound book, George & Carolyn, compiled during year 2021 for our progeny. And now I’m transcribing more than 400 letters I sent home to Carolyn from Vietnam in 1968 & 69. Frankly, I’m unsure I’ll be able to complete this final part of the trilogy, as it’s already taking far more time and effort than expected. But it sure has stimulated memories, good and bad, long buried and removed from view.

George Allen, CPM, MHM
EducateMHC





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