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

December 23, 2021

BEWARE FALSE FACTS!

Filed under: Uncategorized — George Allen @ 8:48 am

Blog Posting # 670 @ 24 December 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.eduatemhc.com

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! Attend MHM class!

INTRODUCTION: As we enter this holiday season and prepare to begin a new year, be vigilant of those influences helpful to your line of work within manufactured housing and land lease communities. Here’s just two matters for you to read and ponder: Why do some folk insist on pontificating info they know little about; and, are you EMP-prepared? George Allen

I.

BEWARE FALSE FACTS!

It’s happening already; businessmen and women who should know better, are trafficking in false information! Just this past week on FACEBOOK, in a list of five questions purporting to explain ‘Why land lease communities are disappearing’ (Actually, the writer used a past term for the realty asset class, compounding the false information problem), the bold but inaccurate statement was put forth: ‘estimate only ten land lease communities have been developed during the past two decades’. Nothing could be further from the truth! There have been dozens of new communities developed throughout the U.S., during the past decade. Just ask landscape architect consultant Don Westphal, in MI, for a list of just his developments and expansions. And talk to the REITs (real estate investment trusts) about communities they’re developing in TX, FL, and elsewhere. Ask Ed Zeman and Jamie Dougherty about their communities in MI.

To me, this sudden appearance of false information belies a credibility problem besetting the manufactured housing industry and land lease community real estate asset class. With so many industry and property veterans retiring this past year, the internet is ripe for exploitation by individuals, many of whom are new to MH and communities, to seize the moment and put forth their theories and thoughts as to what what’s happening in their realms of experience and investment.

So, be alert to what you read and believe.

II.

ARE YOU EMP-PREPARED?

For a moment, stop and consider the dire consequences of being totally without electric power to light and heat one’s home, operate vehicles, and communicate via telephone, radio, TV and otherwise! Frankly, I’d not given the matter any thought until I read a novel recommended by a junior executive friend at the Federal Housing Finance Agency in Washington, DC. The book? ONE SECOND AFTER, by William R. Forstchen (Available for $10 from Amazon.com). There are two sequels in the EMP-centered triad of novels.

Here’s what I learned. Complete chaos will reign following an electromagnetic pulse, until individuals grasp what is going on and work to ameliorate the severe consequences of no longer having power to do anything beyond lighting a campfire, drinking water from a stream, and gathering together for warmth and protection. That’s the message, clearly set forth in the novel – which follows the lives of individuals in a small college town in western North Carolina. What replaces dollars and coinage as valuable legal tender? Bullets! Bullets needed to hunt local wildlife; and eventually, protect lives.

I’d allowed this ‘wakeup call’ message to fade somewhat from memory during ensuing years – until I read a recent email message from stormrecovery@srp24.com earlier this month. Here’s an edited portion of a paragraph labeled ‘Electromagnetic Pulse’:

“Israel and Iran are preparing for war. China is planning to annex Taiwan. Russia is amassing troops to annex the rest of Ukraine. China and Russia are working in cooperation and will likely strike simultaneously. To prevent the U.S. from aiding each of its’ allies, it is likely China will encourage North Korea to deorbit two satellites down to an altitude of 140 km above the earth. The President’s EMP Commission states that both satellites are likely carrying nuclear weapons. By detonating the nuclear weapons at that altitude, the gamma rays from the nuclear explosion will interact with the edge of the atmosphere and generate a very strong electromagnetic pulse (‘EMP’). The pulse is about 5,000 times stronger than a cell tower. It encompasses the AM and FM radio bands and travels at the speed of light. An EMP can cause a voltage spike of 50,000 volts or more in power lines and metal cables, and generate several thousand amps of current. The spike is a thousand times faster than lightning. Conventional lightning surge arrestors are too slow to stop it. Any electronic equipment that is not EMP-protected, including backup generators and vehicles, will no longer function. An EMP could cause a grid outage lasting a year of more.”

Is that scary enough for you? Is your home and business, as well as personal and corporate vehicles EMP-protected? Probably not. Even though some military vehicles are, many are not. Now is time to begin preparing for the consequences of an EMP strike in the atmosphere above our nation!

But what to do? Suggest you google ‘EMP-preparedness’. There you’ll find many resources containing information as to steps to take to be better prepared for such an emergency if/when it occurs. You decide what to do now and what to consider later.

December 17, 2021

YOU OLD? READ THIS!

Filed under: Uncategorized — George Allen @ 7:49 am

Blog Posting # 669 @ 17 December 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOHTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Motto: ‘U Support US & WWE Serve U! Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: This week, the most important ‘industry message’ appears as Part II, ‘Revisit DOE Proposal Crisis!’ – a continuation of last week’s warning from MHARR relative to MHs ‘twin crises’. As you read it, keep in mind: ‘If you’re not part of the solution, you’re surely part of the problem!’ So, get on the ball and work with MHARR, MHI, and others to fight DOE’s proposed rule relative to energy conservation mandates for manufactured housing! Part I? Well if you’re getting to be ‘long in the tooth’ (i.e. older, elderly) here’s human potential encouragement!

I.

YOU OLD? READ THIS!

Here’s clear evidence human potential does not cease at some arbitrary age. Following paragraph is quoted from the Handbook to God’s Promises, by Kenneth Boa & William Kruidenier. The 707 pages book was published during year 2020 via reflections.org.

“Antonio Stradivari (1644-1737), also known as Stradivarius, fashioned two of his most famous violins, the ‘Habeneck’ and the ‘Muntz’, in his early 90s. Noah Webster (1758-1843) published his two-volume American Dictionary of the English Language, at age 70. Galileo (1564-1642) published his masterpiece, Dialogues Concerning Two New Sciences, at age 74. Frank Lloyd Wright (1867-1959) designed the Guggenheim Museum in New York City at age 91. At age 84, Agatha Christie (1890-1976) oversaw production of the movie Murder on the Orient Express, based on her novel of the same name. Golda Meir (1898-1978) served as prime minister of Israel from age 70 to age 76. Peter F. Drucker (1909-2003) wrote Managing in Turbulent Times at age 71 and Management Challenges for the 21st Century, at age 89.” P.302

Know what? That sage observation tells me I was right to pen my autobiography, From SmittyAlpha6 to MHMaven, last year, my 75th year. Hmm. Wonder what project to take on before I reach 80?*1

How ‘bout you? Getting along in years? If so, NOW is time to begin penning short memoirs describing personal experiences over past years. Then collect and meld them into your autobiography to share with family members, friends, and business acquaintances.

And, to help you along – if you don’t already have a copy, let me know you’d like a FREE booklet titled, Who Will Preserve Your Legacy. Answer: You! Reach me via gfa7156@aol.com
Be sure to include your preferred postal mailing address.

II.

REVISIT DOE PROPOSAL CRISIS!

Last week’s blog posting introduced you to ‘MH’s Twin Crises’ as viewed by the Manufactured Housing Association of Regulatory Reform (‘MHARR’). Well, I was so motivated by Mark Weiss’s description of this thinly veiled attempt to KILL the manufactured housing industry as affordable housing, that I prepared – and will soon be sending letters to 11 state attorneys general and ten state MH association directors identified in the MHARR communique of 9 December 2021. Suggest you read what I’ve penned – following, and consider doing the same!

TO: Appropriate party

FROM: George Allen, CPM, MHM, author of SWAN SONG, a history of land lease communities & Official Record of Manufactured Housing Shipments since 1955.*1

SUBJ: DOE proposed rule relative to energy conservation mandates for manufactured housing

HUD-Code manufactured homes, since 1976, have been fabricated to incur energy costs lower
than site-built on a whole-home basis; at the same time ensuring purchase price affordability
for home buyers at all income levels! Hence, the Department of Energy (‘DOE’) proposed rule
relative to energy conservation mandates for manufactured homes is redundant.

Furthermore, the DOE proposed rule stresses speculative ‘life-cycle’ energy cost savings,
ignoring the high purchase price impact said rule would have on prospective homebuyers’
purchase (price) of mainstream manufactured homes!

Key points? HUD-Code manufactured homes are already more energy efficient than stick-built
homes. And spreading the cost of DOE rule implementation in new manufactured homes out
over years is moot if it causes the home buying market to be unable to afford heretofore ‘most
affordable housing alternative in the U.S.’

So please withdraw your support of DOE’s unnecessary and ill-conceived proposed new energy
standard for manufactured housing.

End Note.

1. Both books available for purchase at www.educatemhc.com Maybe even purchase and give copies as holiday gifts this month!

George Allen, CPM, MHM
EducateMHC

December 9, 2021

MH’s TWIN CRISES

Filed under: Uncategorized — George Allen @ 11:05 am

Blog Posting # 668 @ 10 December 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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! Attend MHM class!

INTRODUCTION: According to MHARR the manufactured housing industry is faced, today, with twin crises. And some might add ‘a third’ in light of the fact our industry appears to be incapable of reporting a consistent number of new HUD-Code homes shipped monthly.

I.

MH’s TWIN CRISES

As observed and described by the Manufactured Housing Association for Regulatory Reform in its’ November 2021 communique; actually a Q&A discussion between president & CEO Mark Weiss and an online trade publication.

Did you even know manufactured housing is faced with twin crises? Well here they are:

CRISIS # 1. The energy matter. Department of Energy (‘DOE’) proposed rule for manufactured housing was once blocked, but then revived in 2014, only to be withdrawn near the end of the Obama administration. Since then there’s been back-and-forth legal maneuverings, culminating in a requirement to publish a proposed standard in 2021, to be adopted as a final standard in 2022. Other related factors? ‘Climate change’ interest on the part of the current administration; failure of the two GSEs to implement their ‘Duty to Serve’ (‘DTS’) plans relative to chattel loans; and, GNMA’s ’10-10’ rule that’s collapsed FHA Title I lending. Result? “…a devastating impact on mainstream manufactured housing….” MW

CRISIS # 2. No post-production trade advocate. “…the industry does not have an independent national post-production representative organization to fight for, advance, and implement full and equal inclusion of manufactured homes in federal government housing largess.” (lightly edited) About which MHAARR continues: “MHARR is not – and will not become – a post-production association.” Understood. But it does bring to mind proverbial truism: ‘If you’re not part of the solution, you’re part of the problem!’ And I do understand MHARR’s frustration about this matter, but from a different perspective. On 26 October 1993, during a meeting in Dallas, TX. land lease community portfolio owners/operators drafted a Mission Statement and Strategic Objectives for what they hoped would be a ‘post-production association’. Well, long story short, these 19 executives and the Manufactured Housing Institute (‘MHI’) launched the National Communities Council (‘NCC”) on 1 January 1996. While it got off to an enthusiastic start, under the leadership of Jim Ayotte, CAE, it didn’t take long for cronyism and political upmanship to prevail. And while the NCC is a division within MHI today, it has not – in my opinion – come anywhere near being the post-production association envisioned and needed today.*1

So, where to go from here? That depends on how serious you feel these twin crises are for the manufactured housing industry and land lease communities nationwide. In the first instance, do as I did in years past, make it a point to attend and participate in DOE public hearings on the proposed rules. Second; well, that depends on how content you are with attending one well-attended Leadership Forum, sponsored by the NCC each year, or whether you too believe there should be a salaried MHI executive actively leading the division in advocating for professional property management, fair treatment of homeowners/site lessees, and more.

End Note.
1. For more information on this subject, read The First 20 Years, penned by the late Bruce Savage, former communications executive of MHI. Available via www.educatemhc.com

II.

9,254 VERSUS 9,247

Well, I guess this leopard will not, or cannot, change its’ spots – as the bromide goes. The first of the two numbers shown above, ‘9,254’ is how many new HUD-Code homes the Institute for Business Technology & Safety (‘IBTS’) says were shipped during the month of October 2021. IBTS is HUD’s official contractor for ‘keeping score’ of new HUD-Code homes shipped monthly. The second number, ‘9,247’ is a different number of new HUD-Code homes shipped, as reported by the Manufactured Housing Institute (‘MHI’).

What’s significant about this difference in ‘the number of new HUD-Code homes shipped’ is that during the previous two months, August & September, ALL reporting entities: IBTS, HUD, MHARR, MHI, & EducateMHC announced the very same shipment totals! But now MHI has reverted back to adjusting the industry’s official total by the number of Destination Pending units recorded by IBTS. Go figure.

George Allen, CPM, MHM

December 3, 2021

SOLUTION TO MIDDLE HOUSING MARKET CRISIS

Filed under: Uncategorized — George Allen @ 6:18 am

Blog Posting # 667 @ 3 December 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog, and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email gfa7156@aol.com & visit www.educatemhc.com

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! Attend MHM class!

INTRODUCTION: We’ve all heard the idiom (‘a form of expression’) to ‘not know any better’. Which is to say, someone does ‘not have the knowledge…to make an informed decision.’ Well, this is where today’s blog posting begins and ends. In summary, while HUD-Code manufactured housing IS the Solution to the Middle Housing Market Crisis in the U.S. today, home builders and realty developers are generally unaware how to bring this ready resource (housing) and need (shortage) together in a working, ongoing, positive fashion! Read on…

I.

SOLUTION TO MIDDLE HOUSING MARKET CRISIS

Manufactured Housing has been, and continues to be, The Solution to the affordable housing supply crisis in the U.S. today; a crisis a.k.a. (also known as) ‘the right kind of middle housing market solution’, i.e. affordable factory-built housing sited within land lease communities on rental homesites, and or on privately-owned scattered building sites within and outside platted subdivisions!*1

What are we talking about here? Well, during late November, almost simultaneously, two real estate investment-related trade publications (neither with any connection whatsoever to manufactured housing and land lease communities) published informative and insightful articles on this timely housing topic; titled:

‘Is Single-Family Build-to-Rent a True Missing Middle (housing market) Solution?’ Subtitled: ‘The model quickly delivers the right kind of housing….’ P.24 of Multifamily Executive magazine.
&
‘Housing Market Trends Fuel Single-family Home Rentals’, i.e. “…the star of the real estate show today (2021-2022) is the build-to-rent space.’ Alex Veiga writing for the Associated Press.

Well, as manufactured housing executives and land lease community owners/operators well know, the industry and realty asset class, ‘for decades’ has been active, in and out of the single-family home rental business! Rental manufactured homes were commonplace in (then) manufactured home communities in the 1970s, until consolidation prevailed and it became easier to sell a ‘community’ occupied by tenant-owned homes, not rental units. And, it’s also well known that manufactured homes have oft been purchased for placement on privately-owned realty (e.g. farms), to be rented out to family members and transient labor. Today or more accurately since year 2010 +/-, manufactured housing is back in the rental home business, with new HUD-Code homes routinely sold into land lease communities and used as rental units. Here, think Sun Communities, RHP Properties, YES! Communities and others. For that matter, quoting from the 32nd (& final) ALLEN REPORT, circa 2021, “26 of 92 respondents (to this survey) confirm the presence of 26,528 rental homes on-site in their communities, for an average of 1,020 rental homes per (reporting) portfolio.”

Here’s the enigma (‘riddle, anything puzzling’): Given the widely recognized need for affordable single-family housing throughout the U.S. today, and the seeming solution being new rental units (a.k.a. ‘build to rent homes’), why are developers of new housing tracts not flocking to factory-built housing in general, HUD-Code manufactured housing in particular, especially the relatively recent CrossMod™ design?

Before I proffer an answer to that tripartite question, let’s take a look at what non-manufactured housing real estate observers and pundits are writing and saying on the matter.

Today, only 5.4 percent of the single-family rental housing national market is cornered by REITs and investors (not Mom & Pop investors – who account for an even larger market share of ‘rentals’) who’re focused on renting single-family homes they’ve acquired. They are now (maybe) being joined by builders eyeing this entry market to affordable housing, having built 47,000 new homes during the past four quarters.

Here’re some miscellaneous points from the aforementioned trade publication articles:

“The missing middle – defined here as households who earn between 80% & 120% of the area median income (‘AMI’), occupies a difficult position in the housing market. In many areas, households at this level do not qualify for subsidized housing, cannot afford the housing options in a given (local housing) market, and have very little in the way of smaller-scale housing options from which to choose.” P.24. This comment relates to the first article title quoted earlier.

What’s causing this inability of prospective homebuyers and renters to find affordable housing? “…a perfect storm of causes, among them high land prices, building material prices, and regulatory considerations that drive builders toward larger and more elaborate homes in order to justify the cost of a purchase.” P.24.

So, “…single-family build-to-rent has emerged as an asset class that delivers precisely what this (middle) group wants. Scalable built-to-rent models provide what developers are rarely incentivized to build – small-scale housing, attached or detached, with lower barriers to access than the single-family for-sale market.” P.24. And who routinely designs and fabricates small-scale housing to a preemptive national building code? HUD-Code manufactured housing!

OK, back to ‘an answer to that question’ about developers not flocking to purchase and use HUD-Code manufactured housing as single-family rental housing. What follows is my opinion, honed during 40+ years as an observer of manufactured housing and land lease community owner/operator:

• To begin with, developers simply do not know who we are, nor do they understand how and why HUD-Code manufactured housing is so affordable, and how it answers today’s housing needs – especially in the middle market.

• The business mindsets characteristic of site-built housing and manufactured housing pros are different, as different as learning to fly a single engine airplane versus a commercial airliner. Manufactured housing execs are hyper-sensitive to every cost factor that increases product cost. Site-builders, on the other hand, oft seem happy to include cost increase factors, often faddish, that lead to ‘bigger box = bigger bucks’ home sale prices.

• Then there are the conceptual and practical differences between building custom homes stick-by-stick, by dint of employing cost saving principles of inventory control, mass production, in—plant climate control, and use of skilled but casual labor, throughout the building process.

Bottom line? We have never been very good, as an industry or realty asset class, at marketing ourselves across housing and community types and lines. Folk simply do not know about us; and when they do, they certainly do not understand what makes us tick. Until that changes, we will remain, sad to say, ‘dead in the water’ as a comprehensive housing provider, especially to the underserved middle market!

Consequence? Again, there’s a major need for our housing type and communities on the national scene these days, and it will continue to be unmet until we, including our national advocates, educate site-builders and developers as to why our product perfectly fills their need for affordable, single-family rental housing!

End Notes.

1. Right up front, let’s agree on the official definition of affordable housing. “Housing is Affordable when an individual or household’s Annual Gross Income (‘AGI’), or local housing market’s Area Median Income (‘AMI’) – identified by postal zip code and available online via zipho.com, can lease a conventional apartment and or buy a home in this local housing market, using no more than 30 percent of said AGI, or AMI, for shelter and related household (utility) expenses. For example; a $50,000 AGI/AMI X .3 Housing Expense Factor or HEF =$15,000/year or $1,250/month, available for rent or mortgage PITI (principal, interest, taxes, insurance) and household expenses.” Note. Not all lenders include household expenses in this calculation.” Quoted from EducateMHC’s Resource Document titled: ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities’, by George Allen, CPM, and MHM.

George Allen, CPM™Emeritus, MHM™Master
EducateMHC
Box # 47024, Indianapolis, IN. 46247

(317) 881-3815 & gfa7156@aol.com

November 24, 2021

DANNY D. GHORBANI

Filed under: Uncategorized — George Allen @ 7:22 am

Blog Posting # 666 @ 24 November 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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! Attend MHM class!

INTRODUCTION: History, Conundrum, and Books are topics of Parts I, II & III in this weekly blog posting. Bet you didn’t know this about the early days of MHI (when it was MHMA). Or that HUD-Code housing manufacturers appear to be thriving during these difficult mid-pandemic times. And Part III can help you with your holiday gift giving during December.

I.

DANNY D. GHORBANI

During fall 1967, Danny was contacted by a ‘head hunter’ who wanted to talk to him about the possibility of a position with an organization representing the mobile home industry. His initial reaction? Danny “… didn’t know the Mobile Oil Company was involved with housing.” He was that naïve about the industry that came to appreciate him as their ‘Watchdog of manufactured housing’ in Washington, DC. And there’s more to that story.

In ‘The History of the (Iowa) Manufactured Housing Association 50th anniversary book’ of memories, Danny goes on to describe how the manufactured housing’ industry was booming at the time and attempting to shed its’ mobile home image. Specifically,

“Production had grown from more than 90,000 homes in 1961 to almost a quarter million homes in 1967. The industry’s only marketing firm (i.e. Elrick & Lavidge, Inc.) predicted the growth would continue at a rapid rate, reaching 600,000 homes per year by the early 70s. They were right on target. Growth reached 560,000 homes in 1973.” P.36 The actual total was 579,940 new ‘mobile homes’ shipped.

Danny, in the article titled ‘Industry Veteran Looks at the Early Years’, goes on to tell us:

“The industry’s unprecedented, if not almost unbelievable growth, was brought about, in large part, by a succession of industry giants such as F.L. Cappaert, James Redman, Edward Hussey, Sr., and Arthur J. Decio, (the latter) took the helm as chairman of MHMA (Mobile Homes Manufacturers Association).” P.36. FYI: Cappaert was inducted into the RV/MH Hall of Fame in 1975, James Redman in 1991, Ed Hussey, Sr. in 1995, and Art Decio in 1975.

Furthermore, and due to architectural and engineering firms having little interest in land development projects, which to them, represented an extension of ‘the trailer industry’,

“…the national association created its’ own in-house team of professional engineers and architects to prepare a turnkey operation which included, among other things, site planning, zoning, market and feasibility studies, design and engineering packets, and related cost-estimates which were provided to potential developers…at cost. With MHMA providing this service, all the developer had to do now, if he/she so chose, was to hire his or her own contractor to build the community and a local engineer to supervise the work.” P. 37

Danny Ghorbani was…”hired to serve as the assistant to Herbert Behrend, who headed this operation at MHMA. With an in-house staff of 12 people and on-call group of more than 20 professional consultants, our operation quickly was utilized by developers for more than 200,000 (rental home) sites in four years. The operation became so successful that regular architectural and engineering firms began getting heavily involved with mobile home community development, thus enabling the MHMA, after it achieved its’ goal, to dissolve the operation in 1971.” P.37. Interestingly, Danny was not inducted into the RV/MH Hall of Fame until 2004; and the late Herbert Behrend, his boss at MHMA, continues to await selection and induction – showing our industry’s system of honoring its’ pioneers is not yet perfect!

In my opinion, this early segment is an important part of manufactured housing and land lease community history. However, and for the most part, it’s already been lost to businessmen and women who’ve come aboard the industry and realty asset class since the turn of this century! So yes, there was a time in our history when housing manufacturers realized, to grow their businesses, they had to help ensure plenty of locations (i.e. communities) in which to install their product. Hence the heyday of (then) mobile home park development across the U.S.

And this ‘begs the question’; ‘Is there more that HUD-Code housing manufacturers should be, could be, doing today (like they did during the 1960s & 70s), to encourage raw land development into land lease communities containing rental homesites?

II.

WHEN COST & PRICE INCREASES = HIGHER STOCK PRICES

According to EducateMHC’s ‘MHShipment Volume for September & Stock Market Report for 3 November 2021’, the manufactured housing & land lease community Composite Stock Index or CSI, hit a new record high of $812.23; up from $762.97 the month before.

Recent communiques from one or another of the Big 3-C HUD-Code housing manufacturers informs customers (i.e. land lease communities, independent – street – MHRetailers, & possibly, ‘company stores’), how lumber, resin-based goods, steel and other metals, and imported products (delayed by supply chain issues enroute),lead to “base prices will be increasing in the December pricing period.”

The aforementioned CSI is comprised of the following corporate stock prices on 3 November, and other factors.

Skyline Champion @ $72.42
Cavco Industries @ $258.89
Legacy Housing Corporation @ $18.88
Nobility Homes @ $32.38
Berkshire Hathaway
Equity Lifestyle (REIT) @ $85.24
Sun Communities (REIT) @ $196.26
UMH Properties (REIT) @ $24.26
Flagship Communities @ $20.65
Manufactured Housing Properties @ $3.25

So post production sectors of the manufactured housing industry are stuck in the middle of a conundrum (i.e. ‘hard question’); that is, having to pay more for product (e.g. new HUD-Code homes), suffer long delivery waiting times, but not participate in increased profitability evidently enjoyed by housing manufacturers.

III.

Looking for Christmas gifts for colleagues and or on-site property managers in land lease communities? Purchase and send them either SWAN SONG (‘History of LLCommunities & Official List of Annual Shipment Totals from 1955 to present day’) or my autobiography, ‘From SmittyAlpha6 to MHMaven’. Order via www.educatemhc.com

George Allen, CPM™Emeritus, MHM™Master
EducateMHC

November 18, 2021

GET READY!

Filed under: Uncategorized — George Allen @ 12:29 pm

Blog Posting # 665 @ 19 November 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EduateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Get Ready for a Grand Thanksgiving Holiday with Friends & Family. If you’re talkative people you might want to get the described eBook ASAP, to prepare for those conversations! And, ever look back to ‘predictions of the future’, prepared and shared by folk who should know? Well Part II of this blog posting does that big time. Enjoy!

Hey, guess who’s buying copies of my autobiography, ‘From SmittyAlpha6 to MHMaven’? Real estate brokers, for clients to whom they just brokered a land lease community. And, folk using the book as Christmas presents. Just saying….www.educatemhc.com

I.
GET READY!

Don’t let your Thanksgiving dinner table conversations be shattered by angry political conversations. The Leadership Institute provides political communications training for conservatives. And now there’s an eBook with practical instructions for everyone:

202111 Holiday eBook Landing Page (Treatment)

First section of the eBook discusses the foundational mindset necessary to have fruitful conversations.

Second section considers how to prepare for a political discussion with family members who disagree with you.

Third section deals with the practical elements of a good argument and discusses some relevant examples.

I’ve already read the nine pages eBook and wish I’d had it in my possession ‘years ago’.

Happy Thanksgiving!
II.

THE FUTURE THAT IS NOW!

Ever look back at a formal ‘prediction of the future’ to see how it materialized over decades?

Well, on 23 November 1997 – that’s nearly 25 years ago, Walter R. Young, Jr., President & CEO of (then) Champion Enterprises, as well as MHI, delivered a speech to members of the Iowa MH Association celebrating their 50th anniversary. The talk was titled:

‘The Future of the Manufactured Housing Industry’. This speech was recorded for prosperity within the pages of the association’s 50th anniversary historical record. What follows here are direct quotes from Walter Young, followed by editorial comments penned in accords with contemporary (Year 2021) perspective.

“…since 1990, our industry has grown to the tune of 93 percent! The site-built industry…has grown just 30 percent. Today, our homes constitute 32 percent of the single-family housing market. Just seven years ago we held only 26 percent of the market. We are now a $23 billion industry.” P.65

*Yes, in 1990 we shipped 188,172+/- new HUD-Code homes; in 1997 we shipped 353,377+/- homes. We were ‘on a roll, but it didn’t last long.*1

“When I walked into Champion in 1990, they were filling out their Chapter 11 paperwork. They had lost $30 million in five years. Suppliers wouldn’t ship to us; banks wouldn’t talk to us. Our stock was overpriced at 50 cents a share.” P.66

*On 3 November 2021, Skyline Champion Corporation (SKY) stock price was $72.42 per share!

“It took a while for our industry to recognize customers simply wanted homes that looked like homes – not homes that looked like trailers. Our customers wanted the same creature comforts and the same level of quality site-built homes had to offer.” P.66

*As it turned out, our industry designed and shipped many Developer Series homes (a.k.a. ‘big box = big bucks’) homes during 1997 & 98; until ‘easy access to chattel capital’ ended at the turn of the century. And it took until 2018 before the CrossMod design was ready for market.

“At Champion, our customers are not (sic) longer limited to the two extremes of either ‘Generation X’ or the ‘AARP set.” P.66 (Which is to say ‘newly wed & nearly dead’).

*Generation Y (‘Gen Y’) ‘millennials’ are our customers now, during 2021. They’ll soon be followed by Generation Z (‘GenZ’) ‘zoomers’ – the children of Generation X folk from way back in Walt Young’s day. Hmm. Ever wonder what comes after Gen X, Y, & Z?

“Manufacturers have also changed. Although the industry has doubled in size, the number of manufacturers has decreased. In fact, at the end of 1995, the top four manufacturers in our industry held 50 percent of the (national) market.” P.67

*Today’s manufactured housing industry is less than one third the size it was in 1997 (i.e. 1997 = 353,377+/- & 2020 = 94,390 new homes shipped), with the top three (or Big 3-C) HUD-Code housing manufacturers (i.e. Clayton, Cavco, Skyline/Champion) garnering a whopping 82+ percent of national market share – upon the acquisition of Commodore Homes by Cavco Industries during 2021. Pareto’s Law: 80% of production from 20% of the participants.

“We’ve seen Centex purchase Cavco. Pulte has been using manufactured housing in several of its developments, and just recently, opened a retail center. And, Zaring has begun retailing.” P.67

*Three of these four firms have passed from the HUD-Code housing scene….More to follow?

“We’ve seen community ownership change hands from ‘Mom & Pop’ parks to corporations and real estate investment trusts or REITs. Four REITs continue to grow in size through aggressive acquisition and consolidation. Chateau Communities, for example, now manages 43,000 spaces! All four REITs manage over 100,000 spaces.” P.67

*Nope. Chateau Communities is long gone, having sold out to Hometown America in 2003. And yes, the four REITs continue to grow in size, from the 88,450 rental homesites owned/operated in 1994, to 300,566 rental homesites today during year 2020. Unfortunately, no more ALLEN REPORTs ‘keeping score’ from year to year.

“Let’s do some crystal ball gazing….” P.67 Here’s what Walt predicted in 1997.

“In 10 years I see factory-built housing supplying 50 percent of our nation’s new housing. If we do our job, we can improve America’s home ownership from 65% to 70% in 10 years.” P.68

*Not without financing! Today we’re lucky if we’re supplying five percent of U.S.housing starts.

“Our homes will continue to evolve dramatically. Multi-sections may grow to over two-thirds of our mix.” P.68

*Nope! Constant vacillation balances between 45 & 55 %es; singlesection & multisection.

“The financing and zoning issues that plagued us in the past will become faint memories. Fannie Me and Freddie Mac will be common names in the industry.” P.68

*No & Yes! Financing and zoning issues continue to plague our industry. And yes, the two GSEs have become commonplace, of sorts, but have not delivered chattel $ via their Duty to Serve (‘DTS’) plans. But ‘affordability’ is rumored to be a much higher priority during year 2022.

“…consolidation may well change the face of the retail business as we know it today. There will be independents out there. But, we predict independents will make up a much smaller piece of the retail mix in even the next three years.” P.68

*Boy, Walt was right on this one! Shortly after the turn of the century, 10,000+/- independent (street) MHRetailers and company stores went out of business when the industry lost its’ easy access to chattel capital. However, that slack was subsequently taken up by the marketing and sale of Community Series Homes (‘CSH’) on-site in land lease communities, beginning in 2009.

“We at MHI are attacking this installation issue head on. With a small group representing all aspects of the industry, we are developing some creative approaches that will economically motivate all of us to solve this consumer issue. We must solve this issue ourselves, for no one else can.” P.69

*13 years after that line was penned and stated by Walt Young, the Frost Free Foundation (‘FFF’) system appeared (2010); a.k.a. ‘Alternative Shallow Frost Protected Foundation Design for Manufactured Homes’. This was a collaborative effort among George Porter, Hayman engineering, and the Systems Building Research Alliance (‘SBRA’). Initially approved by HUD, for use with manufactured homes in land lease communities, only rarely is it mentioned or used. So, in this industry observer’s opinion, the installation issue remains unsolved to this day!

“As we look to the 21st century, all of us need to work to further promote the image of our industry. Together, we need to educate consumers about the evolution of our homes, our quality standards, the many benefits of manufactured housing, and the financing options available.” P.69.

*Well, this is certainly one industry goal articulated, more than two decades ago, that remains valid (unfulfilled) to this day. There is no formal, funded, national image-improvement program in effect now, just as there wasn’t way back in 1997. .

“…we want to establish a secondary market with Fannie Mae and Freddie Mac for personal property manufactured home loans.” P.70

Yet another 24 – 25 year prediction still awaiting fulfillment!

End Notes.
1. Why the +/- notation after shipment totals? Acknowledgement of the differences in reporting this shipment data by the Institute of Building & Technology Safety (‘IBTS’), HUD, & MHAARR, versus MHI.

November 12, 2021

MEA CULPA! (MY FAULT!)

Filed under: Uncategorized — George Allen @ 7:54 am

Blog Posting # 664 @ 12 November 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD0HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Difficult to believe this past week could be any more full of MH events than it was – but it was! Part I reviews the hectic schedule. Part II? We have the unique opportunity, right now, to correct a decades-long ‘wrong’, where the reporting of new HUD-Code housing shipments is concerned. We can only hope our salaried and elected national leaders pay attention NOW, and put us, once and for all, on a united path of performance reporting!
Part III. A decade or two ago we didn’t even know what computer ‘hacking’ was; now it’s a concern virtually every one of us has, at home on PCs & laptops, and at work.

I.

MEA CULPA! (MY FAULT!)

Unintentional omission! Last week, in blog #663, I described this past week (8-15 November) as a BONUS WEEK. Why? Because MHI/NCC Leadership Forum would occur in downtown Chicago; the 246th birthday of the U.S. Marine Corps would be celebrated on 10 November; Veterans Day on the 11th; Iowa MHAssociation’s Joe Kelly’s retirement celebration on the 14th; and, the IMHA annual meeting in Cedar Rapids on the 15th. So, what did I miss?

Rent Manager’s annual conference for 600+/- of the firm’s clients, at the Cheyenne Mountain Hotel in Colorado Springs, CO. In my opinion, this singular event rivals every other national venue that occurs for the manufactured housing industry and land lease community owners/operators! I’m invited to be a presenter every couple years, and count it a privilege to address their august audience. The Rent Manager event occurs 9-11 November, so certainly fits well within the BONUS WEEK.

Another unintentional oversight had to do with the celebration of Veterans Day. To commemorate that holiday, the November issue of ‘The Allen Confidential’ newsletter featured a firsthand story penned by freelance installation consultant George Porter, describing his Tet experience in Vietnam during 1968. This is a never before published story deserving to be read by everyone in the manufactured housing industry. And you may recall, George was inducted into the RV/MH Hall of Fame this past August.

II.

LIGHTNING STRIKES THRICE!

For the third month in a row, all major reporting agencies throughout the manufactured housing industry announced the same volume of new HUD-Code homes shipped – this time, during the month of September. The total number shipped? 9,025. So says the IBTS, HUD, MHI, MHARR, & EducateMHC!

Now that’s ‘saying something’, and is what should occur every month of the year without exception. ‘Why’ the same volume reported three months in a row? Because there were none, zero, Destination Pending units reported by HUD-Code factories. When I asked ‘why’, the opinion was that with production so far behind (i.e. six to 12 months out), due to covid and supply chain problems, every home was shipped to a specific destination!

Two parting thoughts:

First. Since we’ve now demonstrated to federal legislators and regulators our industry can indeed be consistent in how we count and report HUD-Code home shipments (i.e. ‘keeping score’), why not make it standard practice going forward? In a word, STOP adjusting the IBTS monthly total, by deducting number of Destination Pending units one month, only to add them back to the total next month. Right now is our unique and historic opportunity to do this right! Let’s not purposely besmirch our credibility going forward, by resuming the Destination Pending (-&+) numbers game!

And then there’s the quietly spoken, but increasing belief, among post production segments of the manufactured housing industry, that ‘record profits’ reported by HUD-Code housing manufacturers are being achieved ‘on the backs’ of wholesale purchasers of new homes, who’re enduring lengthy delivery times, as well as exorbitant, repetitious price increases. Or as one reader put it in a recent email message to me: ‘How many companies are using the supply chain excuse to gouge their customers?” If true, and I hope it isn’t, perhaps time is fast approaching for forensic accounting to ascertain what is really going on these days.

III.

HACK TRACKS!

According to the International Data Group (‘ID’), there are at least 15 signs one has been hacked:

1. You get a ransomware message
2. You get a fake antivirus message
3. You have unwanted browser toolbars
4. Your internet searches are redirected
5. You see frequent, random popups
6. Your friends receive social media invitations from you that you didn’t send
7. Your online password isn’t working
8. You observe unexpected software installs
9. Your mouse moves between programs and makes selections
10. Antimalware, Task Manger or Registry Editor is disabled.
11. Your online account is missing money
12. You’ve been notified by someone you’ve been hacked
13. Confidential data has been leaked
14. Your credentials are in a password dump
15. You observe strange network traffic patterns.

As you read through this lengthy list of signs or hack tracks, it’s difficult to not be discouraged with the whole online communication and social experience. But ‘being forewarned is being forearmed’!

George Allen, CPM, MHM
EducateMHC

November 5, 2021

BONUS WEEK

Filed under: Uncategorized — George Allen @ 6:34 am

Blog Posting # 663 @ 5 November 2021: EducateMHC

Perspectivev.; 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

Moto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend an MHM class!

INTRODUCTION: Another potpourri of manufactured housing and land lease community-related news, stories, and opportunities! Hopefully I’ll see you at one or another of the events occurring between 8 & 10 November. And I hope you’ll position yourself for an entertaining and interesting ‘read’ during the weeks and months ahead. GFA

I.

BONUS WEEK

Leadership Forum, 246th USMC Birthday, Veterans Day, & Joe Kelly’s Retirement

There’ll be a lot happening between 8 & 15 November! How much will you be involved?

8 – 10 November will see land lease community portfolio owners/operators convening for the National Communities Council division of MHI’s Leadership Forum in downtown Chicago. For more information re: schedule and to register, visit MHI’s website. Seminars and networking sessions are planned throughout the three day NCC program.

In my opinion, what should be covered will not likely even get ‘a mention’. Last week’s blog posting (#662) described the pressing, contemporary need for a ‘National Spokesperson for Land Lease Community Owners’! As you likely know, with my retirement (12 August 2021), there no longer is any individual researching (e.g. ALLEN REPORT, etc.) and publicly speaking out, in print (The Allen Confidential newsletter) and otherwise, in behalf of the real estate asset class – certainly no one with ‘skin in the game’ as a bona fide owner/operator of land lease communities!

If you’re reading this and planning to attend the MHI/NCC Leadership Forum, why not make it a point to ask what individual(s) are willing to take on the public face role as capable, experienced, and motivated Spokesperson? As I see it, there are but two opportunities for this to occur: MHI/NCC to formally designate such a national spokesperson; and/or the SECO planners to do so.

10 November marks the 246th birthday of the U.S. Marine Corps! Not of much consequence to non-Marines, but a near hallowed holiday for those who’ve served as U.S. Marines, in and out of combat, during past decades. I already plan to be in touch with Marines with whom I’ve served, between March 1964 when I enlisted, to 1969 in the Ashau Valley in the Republic of Vietnam, to 1991 when in Honduras during Operation Desert Storm. I’ll also be wishing my Marine grandson Travis a ‘Happy Birthday’! Do the same to any U.S. Marines you know!

11 November. Veterans Day, a.k.a. Armistice Day & Remembrance Day (in other countries) will be celebrated promptly at 11AM on 11 November, at the Tomb of the Unknown Soldier, in Arlington National Cemetery, Arlington, VA. For anyone who’s not attended this somber ceremony, it is quite ‘moving’ for everyone present. My brother Mark and I’ve attended together, and talk about the experience to this day.

14 November. Retirement Celebration in honor of Joe Kelly, longtime executive director of the Iowa Manufactured Housing Association. Spencer Roane, MHM, and I plan to travel from Atlanta and Indianapolis to participate in that gala send-off. At the very least, mail Joe Kelly a Happy Retirement card. Send it to Andy Conlin c/o IMHA, 1400 Dean Ave., Des Moines, IA. 50316.

Speaking of retired state association execs. Did you hear? The New York Housing Association recently honored former executive, Nancy Geer, by naming their new office building in her honor! Like Ross (WI), Tim (MI), and Betty (KY), Nancy has officially retired. Miss them all!

15 November. Annual meeting of the Iowa Manufactured Housing Association, to be held in Cedar Rapids, Iowa. Interesting program planned. Visit the association’s website for more info. Hope to see you there.

II.

NO LOUISVILLE MH SHOW!

You’ve probably already heard the surprising and sad news. But it makes sense. HUD-Code housing manufacturers are reluctant (i.e. ‘refusing’) to send their labor force to Louisville to be exposed to the coronavirus. And, why display new homes when one’s delivery times are already six to 12 months out, thanks to supply chain breakdown and other reasons. So, while there won’t be a manufactured housing show in KY during year 2022, know there are plans afoot to bring prospective Midwest homebuyers (i.e. independent ‘street’ MHRetailers and land lease community owners/operators) to northern Indiana for factory visits and maybe marketing/sales education at the RV/MH Hall of Fame in Elkhart, IN. As far as we know at present, the Biloxi MHShow is still on track for this spring.

Continue to read this weekly blog posting for further details.

LAST CALL!

Only a few copies of the autobiography, ‘From SmittyAlpha6 to MHMaven’ remain in inventory. Once these are sold and shipped, the five month long marketing window will close. There are no present plans for a subsequent printing. So, if desiring to buy a copy of my Adventures of a Lifetime, visit the website www.educatemhc.com

Explanation of the title? ‘SmittyAlpha6’ was my radio call sign while a USMC company commander in Vietnam during 1968 & 69. ‘MHMaven’ is an Allenism (i.e. poetic license) for ‘manufactured housing maven’ (‘expert’). Book is chockfull of photographs and short stories, in addition to the biographical narrative, describing a formative childhood, 55+ year romance, war stories, and yes, key parts of a 40 year career in professional property management and land lease community ownership.

George Allen, CPM, MHM
EducateMHC

October 29, 2021

NATIONAL SPOKESPERSON FOR LAND LEASE COMMUNITY OWNERS?

Filed under: Uncategorized — George Allen @ 6:25 am

Blog Posting # 662 @ 29 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: I have long attempted to not make the content of this weekly blog personal in nature. Well, this week’s focus runs counter to that goal. Why? Because, in my opinion, come January 2022, there will no longer be an independent third party Spokesperson holding forth, publicly, in behalf of land lease community owners/operators nationwide! Lest you think I exaggerate, right now name one person who routinely researches and reports on the realty asset class in print, online, and in person? Here’re the details of where we are today….

I.

NATIONAL SPOKESPERSON FOR LAND LEASE COMMUNITY OWNERS?

And who might that be going forward? It really hasn’t been an issue until now. Because, up until the end of December this year, we’ve had folk filling that role via weekly blogs, a monthly subscriber-supported newsletter, national networking roundtables or conferences, the ALLEN REPORT, and op/ed columns in various trade publications, e.g. ‘Manufactured Home Mechandiser’, the ‘Journal’, and now MHInsider magazine. And of course there were occasional communiques from MHI, where land lease communities were concerned, presumably from its’ National Communities Council (‘NCC’) division.

But much of that will soon be changing, albeit ‘going away’! Then ‘who’ will land lease community owners/operators look to for timely news reporting, regulatory concerns, issue resolution, professional property management training & certification, and networking opportunities? Here’re the possibilities as I see them today.

Frankly, first and foremost, spokesperson responsibilities and services should – in my opinion – be coming from NCC leadership, but that’s not the case today. Some illustrations: What salaried MHI staffer routinely functions and speaks in behalf of the realty asset class? No one since Jim Ayotte, CAE, and a couple of his successors, post 1996 founding of the council. And this. During a recent Senate Banking Committee hearing (21 October 2021) titled, ‘How Private Equity Landlords are Changing the Housing Market’, MHI representatives (not the NCC) felt they were successful “…ensuring the conversation was not disparaging to the land-lease community model overall.” OK, but when one reads their Statement for the Record, here’s a sampling of what they told the Senators:

• Land-lease manufactured housing communities, manufactured housing communities, and land-lease communities. These trade terms were used interchangeably throughout the presentation. Confusion anyone? Among journalists today, it’s land lease communities!

• Time and again, ‘research’ and ‘studies’ were cited to buttress claims about ‘rent payment increases’, ’31 percent of new manufactured homes placed in land-lease communities’, and ‘why residents choose professionally managed land-lease manufactured housing communities’, and more – with NO substantiation of claims!

• Much ado is made about professional property management training and certification of community managers, but only MHEI’s ACM program is identified. NO mention of IREM’s Certified Property Manager (‘CPM’) designation, or EducateMHC’s Manufactured Housing Manager (‘MHM’) program, or California’s statewide program. Too narrow a focus for a truly effective national spokesperson for the realty asset class.

• At one point MHI commissioned research, representative of 1,000 communities, to cite statistics relative to CapEx spending. Impressive number until one realizes, according to the 32nd annual ALLEN REPORT, just the top three portfolio owners/operators profiled, own and or fee-manage 1,103 communities! So 1,000 communities is not a representative sampling of 55,000+/- such properties nationwide.

Point? Again, logic would suggest MHI and its’ NCC division is/are natural national spokespersons for land-lease communities. But, again – in my opinion – without a salaried staffer heading the NCC, one that ‘knows’ the community business and is capable of communicating it in an appropriate, accurate, and substantiated fashion, they have no business posing as national spokesperson. Perhaps this matter can be addressed at the NCC Leadership Forum in downtown Chicago during early November? Anyone listening out there?

Then there’re the land lease community owners/operators in Georgia who, 11 years ago, launched what today is widely known and respected as the SECO conference. From the very beginning there was but one audience – land lease community owners; initially in the Southeast, but today, nationwide, attracting 500+/- businessmen and women. National spokesperson for the realty asset class? Perhaps, if they hire an executive director, and start communicating regularly and digitally with their audience nationwide.

Now, just about everyone else has their ‘interest in two pockets’: manufactured housing production/sale and land lease communities. Think DATACOMP with its’ MHVillage and MHInsider magazine. Yes, they research MH and community statistics on a routine basis, but to the best of my knowledge, there isn’t a land lease community owner/operators on staff – for handling the finer points and nuances of property ownership and management.

And then there’s manufacturedhomes.com, a fairly new online entry into the fray. It is primarily focused on manufactured housing production/sales – related topics. Any land lease community firsthand influences on their staff?

That brings us to the end of this discussion today. Yes, land lease community owners/operators need and deserve an effective national spokesperson (organization) functioning in their behalf. Looking back almost 30 years, the need for focused national advocacy, via a spokesperson or organization, is why 19 community owners gathered in Indianapolis, IN., on 31 August 1993. Three years later, we had the NCC in place at MHI – with a salaried staffer at the helm. That is not the case today. And given my recent retirement, we will not have an independent third party spokesperson producing a newsletter, networking roundtable, or ALLEN REPORT, in behalf of land lease communities, going into year 2022.

What are we going to do about that?

George Allen, CPM, MHM
EducateMHC

October 22, 2021

I. AGAIN, ‘DOE REGS MUST BE DOA!’

Filed under: Uncategorized — George Allen @ 10:37 am

Blog Posting # 661 @ 22 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Quite a mix of topics today! First, some important and timely information relative to DOE regs that threaten the intrinsic affordability of HUD-code manufactured housing. Then a personal pique relative to how ‘others’ attempt to affect our daily lives. And finally, a personal lamenting of the passing of more than three decades of dedicated work in behalf of land lease community owners/operators nationwide and in Canada.

I.

AGAIN, ‘DOE REGS MUST BE DOA!’

That’s the ‘short title’ to Part I of this week’s blog posting. Here’s the ‘long title’, so to speak, quoting from the Manufactured Housing Institute’s (‘MH’) latest newsletter to members:

“The Department of Energy (‘DOE’) has published a proposed rulemaking on energy standards for manufactured housing which, if finalized, will eliminate manufactured housing as an affordable housing option for hundreds of thousands of potential homebuyers.”

Did you get that? MHI’s communique goes on to say: “The current DOE proposal is fundamentally flawed and must be completely rewritten to ensure manufactured home remain an available option for American families.”

So, YOU on board with ensuring the DOE regs are ‘DEAD ON ARRIVAL (‘DOA’)?’ If so, YOU must contact MHI’s Policy Department via (703) 558-0675 and ask how YOU can participate in their Call to Action program right now! I’ve already done so.

LATE BREAKING NEWS! Deadline has been extended from 25 October to 26 November 2020! That gives YOU and ME more time to submit written comments relative to DOE’s Supplemental Notice of Proposed Rulemaking (‘SNPR’) concerning manufactured housing energy conservation standards.

II.

YOU WOKE?

What do the following words have in common?

America, Mute, Freshman, Straight, Depressed. War. Policeman. Handicapped parking, Mr & Mrs., You guys. Long time, no see. Rule of thumb. Hold down the fort.

According to FIRE, a.k.a. Foundation for Individual Rights in Education, “they’re all included in a list of ‘words to avoid’, compiled by Colorado State University’s Inclusive Communications Task force.” And while not banned, per se, they’re words faculty and students are encouraged to avoid, in favor or words that make everyone feel welcomed and ‘safe’.

Don’t know about you, but I’m increasingly pissed off at the wokeness that seems to be occurring these days, especially where the use of personal pronouns is concerned. While completing an application, for something, recently, I was asked to indicate what pronouns I identified with, not whether I was a male or female.

III.

DO YOU REALIZE?

The date, 1 January 2022, is fast approaching, when there will be no annual update to the ALLEN REPORT. We did not survey the 500+/- known owners/operators of land lease community property portfolios this fall, so I have no statistics to compile and write into what would have been the 33rd annual ALLEN REPORT. What does ‘having no updated ALLEN REPORT’ mean to you and me?

• No historical perspective of contemporary land lease communities. In the 32nd edition we identified the seven types of shelter now commonplace on rental homesites.

• No historical perspective relative to HUD-Code housing shipments during the past 50 years, and how our industry sullies its’ ‘cred’ by reporting two totals each month.

• Overall total of rental homesite counts among reporting portfolios, and number per portfolio; as well as number of land lease communities owned and or fee-managed.

• Volume of rental homes and contract sales per property portfolio.

• Average national physical occupancy among reporting property portfolios.

• Average national Operating Expense Ratio (‘OER’) among reporting portfolios.

• Status of professional property management certification among portfolios.

• Growth in rental homesite count to date (i.e. between 1994 & 2020) among all real estate investment trusts (‘REITs’) during the past 26 years. Who will tell you now?

• And in the 32nd ALLEN REPORT, a list of a dozen Evergreen Issues (i.e. ‘always present, always important!’) re manufactured housing and land lease communities.

That’s pretty much what’s ‘leaving the body of land lease community knowledge and statistics’ researched and faithfully reported during the past 32 years. Hopefully someone will come along, in time, and shoulder the mantle (‘covering’) of this unique income-producing property type and popular real estate asset class.

After all, and to date, the ALLEN REPORT opened the door to annual Networking Roundtables, two monthly subscriber-supported newsletters, a weekly blog, the Manufactured Housing Manager (‘MHM’) professional property management training and certification program, as well as a host of Resource Documents such as the National Registry of ALL Lenders, and directories of freelance consultants, MH factories, national and state trade associations, as well as GSE & NGO organizations influencing manufactured housing and the asset class.

GFA

George Allen, CPM, MHM
EducateMHC

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