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

Blog # 257 Copyright 2013 4 August 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

I.

That ‘Fourth Tough Question’ Refuses to Go Away!

Surely you remember, the ‘fourth tough question’ posed two weeks ago in Blog Posting # 255 at this website:

“Does the HUD – Code manufactured housing industry Really Want to See the
Return of ‘easy access to chattel capital’, stimulating new home shipment volume and filing vacant rental homesites in LLLCommunities, of all sizes, throughout the U.S.? – OR – has the nearly Five Year Shipment Nadir (i.e. ‘Lowest point’ in MHIndustry shipments history!’) become the accepted and manageable status quo benchmark in the minds and operations of one or more regulatory compliant lenders who’ve cornered the severely constricted manufactured housing loan origination market?’

Think about this matter carefully. Therein might lay the very crux of what put us where we wound up five years ago; where we are indeed today; and if we don’t break the vicious nadir cycle, where we’ll continue to be five years from now!

Within last week’s Blog Posting # 256, two MHIndustry veterans, each a successful entrepreneur businessman in his own right, responded with ‘heady & timely commentary’; one from the land lease lifestyle community perspective – 1) expressing dismay at independent, third party loan originator ‘cherry picking’ (i.e. via FICA scores) of manufactured home purchasers; 2) frustration with recent attempts by HUD – Code home manufacturers to roll out cooperative plans for selling/financing new home sales on – site, but with interest rates ranging from 12 – 20 percent; and now, 3) product price increases! And the other commentator boldly told us ‘easy access to chattel capital’ simply isn’t going to happen – EVER, and cited reasoned logic, couched on past bad performance of manufactured housing – secured chattel loans, as to The Why!

Well, this week, since Blog Posting # 256 appeared on 28 July, new additional ‘heady & timely commentary’, on that same ‘fourth tough question’ has arrived. The first is a mantra of sorts, being “Manufactured housing is fast becoming a cash business!” Reminds one of similar telling shibboleths of the past, e.g.

• During 1998, when we shipped 372,843 new HUD – Code homes, the commonplace pitch was: “We have no $ down, no job, no problem deals for you!’ Yep; that’s what we said back then to our prospective home buying customers.

• During 2002, when shipment levels plunged to their worst level since 1963, we frequently heard: “Be a stud, sell a HUD!” And 12 months later, we ballyhooed the “Year of the hudular!” –albeit a short lived production fad that went nowhere.

• During 2006, the everyday question was: “When does hurricane season begin?”, reminiscent of the ‘Katrina Factor’ that goosed home shipments a year earlier.

• During 2007, as more and more LLLCommunity owners/operators sold and self – financed new homes on – site, we frequently heard the clarion call for a “Return to Our (manufactured housing’s) Affordable Housing Roots!” – a plea that fell on deaf ears until 2008 & 2009, when National State of the Asset Class caucuses were held in Tampa, FL., & Elkhart, IN. (The NSAC has since been relabeled the MHInitiative®. Watch for announcement of a third national strategic planning caucus; planned, promoted and hosted by MHInitiative®, unless MHI or MHARR ‘steps up to the industry leadership plate’ beforehand, to lead us out of our self – generated & perpetuated new home shipment malaise (‘uneasiness & discomfort’) and morass (‘a marsh, a bog’ – as in ‘bogged down’).

• During 2010, at a heavily attended Manufactured Housing Finance Roundtable in Elkhart, IN., federal government regulators and GSE representatives made it absolutely clear: “Manufactured housing is on its’ own!” – and frankly, they were not only right but prescient, as nothing has changed since then – 3 ½ years later!!!

All of which brings us back to this new shibboleth” “Manufactured housing is fast becoming a cash business!” How do YOU see this scary prognostication? TRUE or FALSE? As they say, inquiring minds would like to know! Via email: gfa7156@aol.com or the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Then there’re these convicting remarks from yet another manufactured housing business executive:

“I’m with SR (commentator quoted in last week’s blog), who notes there ain’t no such thing as a free lunch! The MH industry has fouled its’ nest, and it’s not alone. So has the whole housing industry – the government, the entire nation. Collectively, we’ve bought far more than we can pay for, and now we’re paying for it. And we will be for some time. Nobody owes us nuthin. We owe everybody. There’s plenty of money available, sloshing around, just looking for good secure returns. That money will find its’ way to our (housing) product when we offer good housing that people of ordinary means can afford! By that, I don’t mean housing they can buy, if prepared to stretch to more than 30 percent of their annual household income.” BV (lightly edited. GFA)

If you’d like to read more on this heady and timely subject, i.e. What ‘affordable housing’ is, and how to measure it in terms of 1) the Annual Median Income (‘AMI’) of local housing markets, 2) Annual Gross Income (‘AGI’) of prospective home buying individuals and households, 3) the 30% Housing Expense Factor or HEF (One of six recognized measures of affordable housing), and 4) how ‘50% of AMI’ has become our nation’s ‘affordability benchmark’, make it a point to read and study the August 2013 issue of the Allen Letter professional journal.

The lead feature is titled ‘Contemporary Archetype of Truly Affordable Housing in the U.S.!’. It walks the reader through the multistep process of estimating ‘affordable’ & ‘risky’, new & resale home transactions, within & outside land lease lifestyle communities – and in the end, makes a compelling case for HUD – Code manufactured housing and its’ real estate segment lifestyle, as indeed being, ‘the contemporary archetype of truly affordable housing in the U.S.’! To subscribe, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Only $134.95/year for 12 monthly issues. (During the 23 years I’ve been writing and editing the Allen Letter professional journal, this is the most important and challenging housing – related article I’ve penned to date! GFA)

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II.

Upcoming Opportunities You Don’t Want to Miss!

Last week we listed 11 MH, RV, RE & PM – related trade, educational, networking, and deal – making events YOU should be aware of this Fall; and deciding now, which ones to support with your participation. Well, since then, we’ve learned of more events to add to the list, increasing the total to 16 – all occurring between 5 August and 5 November, a scant three month period of time! Venues containing (*) are the ones I plan to patronize, and ‘Hope to see you there!’

5 August @ RV/MH Hall of Fame Induction Banquet (*) in Elkhart, IN. (574) 293-2344. Craig Bollman & Theresa Desfosses among ten inducted in this Class of 2013. Be sure to look at the new Fairmont HUD – Code home installed in front of the RV/MH facility, right along Interstate – 80. That means an average of 55,000 auto drive – bys per day, or more than 20 million people, viewing an attractive new example of our type factory – built housing, during the course of the next 12 months!

8 August @ four Webinars (*) having to do with New Advertising Rules as they apply to LLLCommunity owners/operators selling and financing new and resale home transactions on – site. For times and details, contact Donna Rishel via (217) 971-3968.

18 – 20 September @ 22nd International Networking Roundtable (*) in Bloomingdale, IL. (317) 346-7156. ‘Celebrating 20 Years of Camaraderie!’ 100+ already registered! Don’t miss this unique annual educational, peer networking, deal – making opportunities!

19 September @ Equity University’s Networking Conference in Orlando, FL. (888) 382-4727 x 127. Spencer Roane, MHM® is being considered as a presenter at this venue.

29 September – 1 October @ MHI’s annual meeting (*) in Carlsbad, CA. (703) 558-0678. If you’re a direct, dues – paying member of MHI, make it a point to participate!

30 September, 1:45 – 3:45PM @ MHI’s National Communities Council meeting (*) in Carlsbad, CA. (703) 558-0666. Rumor has it, ‘a New Era for LLLCommunities begins!’

8 – 10 October @ 3rd annual SECO Symposium in Forsythe, GA. (865) 385-9675. This is the only regional event planned & hosted entirely by LLLCommunity owners/operators, with an emphasis on seller – financing of homes, and with several homes on display! For information, contact Spencer Roane, MHM®

10 & 11 October ! MHC of Arizona meeting (*) in Tucson, AZ. (480) 345-4202. Very special program being planned for LLLCommunity owners/operators, by Susan Brenton.

15 – 17 October @ WMA’s annual convention & expo in Reno, NV. (916) 448-7002 & talk to Sheila Dey.

15 – 19 October @ Institute of Real Estate Management’s Leadership Conference in Scottsdale, AZ. (312) 329-6000.

16 – 18 October @ MHI’s National Communities Council division’s Leadership Forum (*) in downtown Chicago, IL. (703) 558-0666. Sam Zell to be guest presenter.

20 & 21October @ Legacy Housing’s first ‘Park Show & Seminar’ in Ft. Worth, Texas. For information, contact Mark Ledet via (817) 632-3351 Special celebrity guest is Randy White of the Texas Cowboys.

23 October @ a PMN Publishing – sponsored national Manufactured Housing Manager® professional property management training & certification class (*), in Indianapolis, IN. (317) 346-7156. Only certification program taught by a Certified Property Manager® member of the Institute of Real Estate Management® & LLLCommunity owner/operator

23 & 24 October @ New York Housing Association’s annual meeting at Turning Stone Resort in New York. (518) 867-3242. Talk to Nancy Geer

5 & 6 November @ London Computer’s annual Rent Manager® Conference (*) on Marco Island, FL. Primarily for Rent Manager® users. Contact regional sales rep for details

5 – 8 November @ Urban Land Institute’s Fall Meeting (*) in Chicago, IL. Manufactured Housing Communities Council or MHCC, to meet during the same time frame. Randy Rowe of Green Courte Partners is co – host of ULI’s meeting. Sam Zell is a guest speaker

***
George Allen, CPM®Emeritus, MHM®Master
Box # 47024, Indpls, IN. 46247 (317) 346-7156

Pithy Blog # 256 Copyright 2013 28 July 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

I.

Pithy Responses to ‘Four Tough Questions’ Continue….

II.

Here’s Why the NATIONAL FIRE PREVENTION AGENCY Should Have Land Lease Lifestyle Community Representation & Participation During NATIONAL ELECTRIC CODE Proceedings

III.

Manufactured Housing Association for Regulatory Reform Meets with the GOVERNMENT ACCOUNTABILITY OFFICE in Behalf of YOU & the Entire Manufactured Housing Industry…

IV.

Preview of Year 2014. Maybe Landfall by then, for Manufactured Housing’s PERFECT STORM (It Is Indeed On the Horizon), &
Certainly a New Era, one way or another, for Land Lease Lifestyle Community Owners/operators, of all sizes, Nationwide!

***

I.

Pithy Responses to ‘Four Tough Questions’ Continue…

“George. To successfully build a lasting home or an organization, one must have a strong foundation, in accords with one’s landscape or market. The recent commentaries to your (blog) questions are well – crafted and thought – provoking. I propose this group of intelligent, industry – experienced, successful men and women ‘start from the beginning’ with: Who are we? What do we want to be? How will we achieve agreed upon goals? How much will we spend to be successful? Where and when will we do this? Perhaps our contemporary model should be akin to what we experienced in the late 1960s and early 70s, before acquiescing to a national building code that – in the minds of some – has contributed to our eventual suicide as an industry.” NB (lightly edited. GFA)

Well, I promised in my reply to this blog flogger (reader), I’d throw this challenge out to ‘any and all takers’ in the manufactured housing industry and land lease lifestyle community realty asset class. What I read in the previous paragraph was a plea for National Dialogue Relative to Issues that plague us today; everything from the woeful lack of trade communication (e.g. ‘Why is there no manufactured housing – specific finance language in the GSE reform legislation’, and now, the Protecting American Taxpayers and homeowners Act or PATH legislation?’) to the increasing presence of ‘big business’ cliques on manufactured housing’s national advocacy scene.

There’re historic precedents such strategic coming – together of various MHIndustry segments. The first National State of the Asset Class caucus occurred 27 February 2008, when more than 100 (then) manufactured home community owners/operators convened in Tampa, FL., and identified five foci to guide their collective future; foci, that two years later, was crafted by Randy Rowe of Greene Courte Partners, into a Five Part Market Share Recovery Plan for the entire MHIndustry.

And the following year, on 27 February 2009, more than 100 HUD – Code home manufacturers and (then) MHCommunity owners/operators, from throughout the U.S. convened for a second NSAC caucus, at the RV/MH Heritage Foundation’s Hall of Fame facility in Elkhart, IN. Results? Agreement on the need for specially – designed lines of new HUD – Code homes, to eventually be labeled as Community Series Homes or CSH Models (i.e. singlesection & smaller multisection homes with durability – enhancing features), for siting in MHCommunities nationwide.

Well, it’s been half a decade since anyone has stepped forward, from either the manufacturing/distribution or real estate development/investment segments of the MHIndustry, to ‘collectively and strategically plan how to break out of the five year new home shipment nadir of only 50,000+/- units shipped per year.’ Perhaps the suggestion and passion expressed in the opening paragraph will motivate one or more national MHIndustry leaders, salaried or elected, to take the first step to this end. Know when the perfect time might be to do this? At the annual meeting of the Manufactured Housing Institute (‘MHI’) the end of September and beginning of October, in Carlsbad, CA. Anyone out there listening? Anyone out there willing to lead? Nathan? John? Dick? Danny?

NOW, let’s turn our attention to the ‘Fourth Tough Question’, to wit: “Does the HUD – Code manufactured housing industry Really Want to See the Return of ‘easy access to chattel capital’….? Well, this one spawned two really interesting responses, and they’re posted here in their edited entirety. The first is from a veteran land lease lifestyle community owner/operator who routinely buys new HUD – Code homes to sell on – site, and finance said transactions within his properties.

“Chattel lending seems to have evolved into two distinct categories. The first occurs where loans stand on their own, via independent third party lenders like the Big Four + One (now, Big Four + Five) = 21st Mortgage Corporation, Triad Financial Services, Inc., CU Factory Built Lending, and U.S. Bank – Manufactured Housing Finance; and recent debut of Green Hill Financial. These firms know default – related costs will be high, so create very restrictive (i.e. high credit scores) and expensive (i.e. high interest rates) chattel mortgage programs. The second, and newest category, involves what’s advertised as a cooperative efforts between LLLCommunity owners and lenders, e.g. the 21st Mortgage Corporation’s two year old C.A.S.H. Program, Cavco’s (new in 2013) 360 Program, and a unique home finance program offered by Legacy Homes, domiciled in Texas. While most LLLCommunity owners feel these programs are certainly a step in the right direction, they’re presently too one – sided, making lenders appear to be taking advantage of the property owners, with chattel loan terms as high as 12 – 20 percent.” SR

Then, from another equally successful and veteran manufactured housing industry businessman, this contrarian conundrum:

“SURE THEY DO! The problem is, it’s not going to happen! Why? Sources of capital well understand the problems related to financing manufactured housing – and they’re reacting accordingly. For example; when Wall Street financiers call, they ask ‘on target questions’ regarding the challenges and weaknesses of financing manufactured housing. And once they confirm what they suspect is the case, they’re gone!

Furthermore; banks and credit unions routinely hear their respective regulators quote national directives critical of manufactured housing lending. So, even though chattel lending, on this type housing, can be the most profitable consumer loan they originate, it is from their perspective, fraught with peril.

Another example. Recently received notice from a regional lender pulling out of chattel lending on manufactured housing. Why? Because land lease lifestyle community owners resist forming meaningful relationships, and express lack of willingness to assume part of the loan risk – by eliminating some of the home seller’s ability to take advantage of the lender if or when chattel loans go bad.

What the manufactured housing industry wants, it isn’t going to get! What they can get, they don’t like! Specifically, they don’t like being forced to engage in regulated and professionally – operated seller finance operations; so, many independent (street) MHRetailers and LLLCommunity owners avoid the business opportunities staring them in the face. So, until the players ‘grow up’ and face facts, as they exist today, and embrace performing like mature (finance) professionals, not much is going to change on the chattel loan lending front!” KR

End of Story. And if we’re not careful, ‘End of an Industry’; or, certainly one that’ll not return to the oft cited ideal performance level of 250,000 new HUD – Code manufactured homes shipped per year.

II.

Here’s Why the NATIONAL FIRE PREVENTION AGENCY Should Have Land Lease Lifestyle Community Representation & Participation During NATIONAL ELECTRIC CODE Proceedings.

While NFPA and NEC might be familiar entity and code abbreviations to some segments of the HUD – Code manufactured housing industry, I’d wager few, if any of you reading these lines, have any idea that ARTICLE # 550 of the National Electric Code, clearly labeled as ‘Mobile homes, Manufactured Homes, and Mobile Home Parks’ even exists, and WHY it should be important to you. *1

First the (kinda) good news. Though both national manufactured housing advocacy bodies have ignored suggestions, over the years, to petition to participate in behalf of mobile homes, manufactured homes, & mobile home parks seat on the NFPA – created NEC Code Making Panel, there is one RV/MH supplier who has kept the manufactured housing industry informed of proposed changes to the NEC that might detrimentally affect it, and the LLLCommunity asset class. In this latter instance, think electrical pedestals, and electrical hook up of manufactured homes within and outside this property type. *2

The not so good news. “This Summer (2013), the NFPA board will give final approval to the 2014 edition of the NEC.” Do we, as an industry and realty asset class know of changes therein that might or will affect our type housing and installation of electrical components thereto pertaining? Nope! Should we, as an industry and realty asset class be aware, beforehand, of any changes to the National Electric Code that might, or will, affect our type housing and installation of electrical components? Yes! Talk about leaving ourselves open to be blindsided by a code – writing agency, particularly the land lease lifestyle community segment of the manufactured housing industry.

Frankly, I understand maybe why the manufacturing/distribution segment of the manufactured housing industry eschews participation here. After all, they’re pretty much sheltered from local – if not all building codes, by the federally preemptive nature of the HUD – Code, and existence of the MHCC or Manufactured Housing Consensus Committee. What is not ‘sheltered’, however, is what happens after new HUD – Code homes leave the factories and are installed, permanently or temporarily, on scattered building sites conveyed fee simple, or on a rental homesites within LLLCommunities. Right now we, as LLLCommunity owners/operators, are completely ‘unprotected’ from arbitrary electric code – making, except for the presence of one industry – friendly person on the NFPA board’s Code Making Panel, capable of recommending proposed changes, good and bad, to the NEC.

Are YOU happy with the foregoing happenstance or status quo? I’m not. And while not presently in a position to influence or effect a soon change thereto, it’s certainly on my agenda to bring the matter to a head during the months ahead. If YOU feel similarly, let me know via the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or via email: gfa7156@aol.com

In the meantime, ‘Thanks Wade!’ By the way, he’ll be present at the 22nd Networking Roundtable, 18 – 20 September, in Bloomingdale, IL., If you’d like to learn more about this game of Russian roulette we’re playing with the NEC these days, talk to him there.

End Notes.

1. ARTICLE 550.1 Scope of Article. “The provisions of this article cover the electrical conductors and equipment installed within or on mobile and manufactured homes, the conductors that connect mobile and manufactured homes to a supply of electricity, and the installation of electrical wiring, luminaires, equipment, and appurtenances related to electrical installations within a mobile home park up to the mobile home service – entrance conductors or, if none, the mobile home service equipment.”

2. ARTICLE 550.4(B) General Requirements. “In Other Than Mobile Home Parks. Mobile homes installed in other than mobile home parks shall comply with the provisions of this article.”

III.

Manufactured Housing Association for Regulatory Reform Meets with the GOVERNMENT ACCOUNTABILITY OFFICE in Behalf of YOU and the Entire Manufactured Housing Industry…

Remember a few months ago (March), when This Blog ‘broke the story’, describing how a team of federal government interviewers was traveling the U.S., meeting with HUD – Code home manufacturers, and others, asking:

“What effect would it have on your business if HUD was no longer the federal regulator tasked with overseeing the manufactured housing industry?”

Well, that matter came to a head recently, when “A group of MHARR member – company chief executives (comprised of the current MHARR Chairman – John Bostick – and two past chairmen) met in Washington, D.C. , with officials of the Government Accountability Office or GAO, tasked with conducting an investigation of the HUD manufactured housing program, at the request of Congress.” This, and following passages, quoted from a story in the July 2013 edition of the Journal.

Result? A clear and timely look at how the Manufactured Housing Association for Regulatory Reform looks after our manufactured housing business interests, whether we’re (That’s YOU & ME) members of their trade advocacy body or not: “During a nearly two – hour session at GAO headquarters, the MHARR – member executives spelled – out, in no uncertain terms, the absolute necessity of the federal manufactured housing program in ensuring both the affordability and availability of manufactured housing, for Americans – and especially lower and moderate – income families. The group also addressed and put to rest questions previously posed by GAO, which raised concerns that it could be considering recommendations either to eliminate or significantly downgrade the federal manufactured housing program.”

Furthermore, the MHARR team “…provided the GAO investigative team with specific examples of HUD’s resistance to, and non- implementation of, major provisions of the Manufactured Housing Improvement Act of 2000 (a.k.a ‘MHIA @ 2000’), methodically explaining the ramifications of each, while walking GAO officials through the importance, relevance, and inter – dependence of the full and proper implementation of all those reforms.” (Lightly edited. GFA)

All that needs to be said at this point, is ‘Be Grateful the MHARR is in Washington, D.C., Looking After the Political & Regulatory Interests of Manufactured Housing &, when possible, the Post Production Segments of the Industry!” GFA

IV.

Preview of Year 2014. Maybe Landfall by then, for Manufactured Housing’s PERFECT STORM (It Is Indeed On the Horizon), & Certainly a New Era, one way or another, for Land Lease Lifestyle Community Owners/operators, of all sizes, Nationwide!

Geesh! I’d really like to tell you more, but can’t. Why? Well, in the first instance, I’d be violating confidences of individuals still in their decision – making process; and frankly, consequences of such a PERFECT STORM, where manufactured housing is concerned, are at the same time, unpredictable – and as such, could wind up being either a Middle Ages – like hiatus, OR ‘not really bad at all’, depending on who, if anyone, steps into the gap and how they perform. Perplexed? At this point in time, I am too.

In the second instance, a New Era for Land Lease Lifestyle Community owners/operators is unfolding according to plan. The first steps have already occurred; with the program being refined this month and next. During the hectic Fall meeting schedule…

LLLCommunity owners/operators will see their perennial need for effective national advocacy, ongoing statistical research, timely print & online communication, superb peer networking & realty deal – making, as well as professional property management training & certification addressed, consolidated, and improved!

Suggest you copy or clip the lines immediately before this sentence, carry them with you this Fall, challenging present and future industry/asset class leaders, salaried and elected alike, to deliver this Six Part Agenda, ushering in a New Era for LLLCommunity Owners/operators, of all sizes!

Hectic Fall Meeting Schedule? By way of review, here’s where we (*) can meet & talk:

• 5 August @ RV/MH Hall of Fame Induction Banquet (*) in Elkhart, IN. (574) 293-2344. Craig Bollman & Theresa Desfosses will be among ten inducted. And new Fairmont Home, out in front of the facility will be almost ready for touring!

• 18 – 20 September @ 22nd International Networking Roundtable (*) in Bloomingdale, IL. (317) 346-7156. ‘Celebrating 20 Years of Camaraderie!’ 100 registrants already; so if a LLLCommunity owner/operator, don’t risk missing it!

• 29 September – 1 October @ MHI’s annual meeting(*) in Carlsbad, CA. (703) 558-0678. National Communities Council division (*) will also meet during the same time frame. This will be first time NCC has met since October 2012.

• 8 – 10 October @ 3rd annual SECO Symposium in Forsythe, GA. ((865) 385-9675. Only regional event planned & hosted entirely by LLLCommunity owners/operators, with emphasis on seller – financing of homes; & several homes on display. For more information, talk with Spencer Roane, MHM®

• 10 & 11 October @ MHC or Arizona meeting (*) in Tucson, AZ. (480) 345-4202 Very special program being planned. Call & ask Susan for details!

• 15 – 17 October @ WMA’s annual convention & expo in Reno, NV. (916) 448-7002

• 15 – 19 October @ Institute of Real Estate Management’s Leadership Conference in Scottsdale, AZ. (312) 329-6000

• 16 – 18 October @ National Communities Council division’s Leadership Forum (*) in Chicago, IL. (703) 558-0666

• 23 & 24 October @ New York Housing Association’s annual meeting at Turning Stone Resort in New York. (518) 867-3242

• 5 & 6 November @ London Computer’s annual Rent Manager Conference (*) on Marco Island, FL. Primarily for Rent Manager users.

• 5 – 8 November @ Urban Land Institute’s Fall Meeting in Chicago, IL. Manufactured Housing Communities Council will also meet during this time frame.

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Blog # 255 Copyright 2013 21 July 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

I.

‘Four Tough Questions’ & Heavy Reader Response!

II.

When It Rains It Pours – Imperfectly at Times….

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I.

‘Four Tough Questions’ & Heavy Reader Response!

Every once in a while, the gist of this weekly blog ‘hits a nerve, resulting in a plethora of response’. Well that happened last week, when blogs # 253 & 254, in a two day period, posed Four Tough Questions within the news story, ‘More Manufactured Housing Shipment Statistics’. Here are those Four Tough Questions, along with lightly edited, thought – provoking responses from manufactured housing executives from throughout the U.S. My favorite? “I find your questions and comments similar to my observations. Now, how do we get the (salaried & elected) executives of the HUD – Code manufactured housing industry to answer them?” Answer? Unlikely to happen…

1) ‘Why does the MHIndustry eschew (‘shun’) national brand promotion in lieu of stealth deal – making at the local housing market level? Possible answers: Maybe corporate self – protection, a woeful lack of macro vision regarding the industry at large, and or simple resistance to change.”

“There are many partial explanations, most of which are steeped in the tradition of a fragmented industry, dependent upon independent (street) MHRetailers and ‘company stores’. Now however, we have (three) dominant manufacturers (garnering 86 percent of national market share of factory – built housing), known as the ‘Big – 3Cs’, so time is ripe for dealing with the issue, but it remains a highly complex matter, with no simple or quick answers – especially mid – crisis, like now. BV *1

Another blog flogger (reader) writes: “We recently went back and reviewed our (state’s) image campaign activity, and was it ever discouraging. The excitement level was high, until we got to implementation, and then the ‘wheels fell off’, as participants discovered we didn’t have the money to buy coverage deep enough in all the targeted housing markets; and then the competitive juices drowned the project altogether.” RK

Here’s Newport Pacific’s image changing strategy for the next dozen or so years: “Rent new solar homes to upcoming Baby Boomers, with probable life expectancies of another 15 – 20 years, replacing our existing crappy pre-1976 era ‘trailers’, improving the desirability (of the lifestyle) and improving our image along the way.” SL. Amen to that!

“It appears advertising, with some firms, targets a defined demographic, unfortunately (?) perpetuating that pesky ‘trailer image’, rather than a broader cross section of the national market, e.g. ’Clayton Homes has rolled out a Good Call promotion, endorsed by stars of the reality TV show Duck Dynasty. The promotion features a sweepstakes that’ll give four winners, from four geographic regions of the country, opportunity to meet some of the Duck Dynasty cast on location in West Monroe, LA.’

2) ‘Why do HUD – Code housing manufacturers continue to perplex independent (street) MHRetailers and land lease lifestyle community home – buying customers, by routinely ‘mixing & remixing’ building product quality, standard features and unit pricing? Possible answers: Maybe to purposely breed confusion; and, lack of understanding, appreciation, even respect for other business models and segments of the MHIndustry.”

“It’s because the LLLCommunity market you cite, is a small part of a complex manufactured housing market, where every manufacturer is struggling for survival, and every aspect of the small remaining market has its’ own concerns. Development of special CSH Model homes was and is, a major recognition of one relatively small portion of the overall market that remains. Manufacturers find it difficult to cater to changing market requirements, especially in perilous times. The ‘community market’ is hardly new, and represents about as large a proportion of the new home market as in the past. In unit numbers, it’s very small today. Don’t expect too much in a hurry. What’s far from clear now, is when robust growth returns, will there be new MHCommunities to fill?” *2 BV

3) “When will someone finally and definitively ‘make the case’ for HUD – Code manufactured housing, and its’ sister business model, the LLLCommunity, as being this nation’s Perennial Affordable Housing Type & Lifestyle? Possible answers: Maybe the soon – to – be – released, ‘Contemporary Archetype of Truly Affordable Housing in the United States!’, as a lagniappe in the August issue of the Allen Letter professional journal, will be a first step in that direction *3; and, when HUD finally (Maybe too late already) recognizes and promotes manufactured housing to that end!”

Then there’s this contrarian, or perhaps ‘realist’ view. “One thing we could do is give up on the prideful claim to be the only form of unsubsidized housing. Where has that gotten us? (Nowhere). The developers building apartments with tax credits are the darling of city hall – not us.” Now that’s what some might call ‘harsh reality’; but should we simply give up and take our affordable football home with us and ‘play no more’ – or continue to rail away at the manifold barriers to affordable housing in general, manufactured housing and LLLCommunities in particular? RK

“I’m working on that very problem George. However, it is far from clear to me that LLLCommunities are the key to the road ahead. What is strikingly clear, however, is manufacturing has become, and remains, the nation’s most affordable way of building housing, and land availability for low cost housing remains the nation’s biggest housing development challenge. Despite the heavy burdens of expensive financing, and requiring more acreage (i.e. greater density), manufactured homes are roughly competitive with apartments, and generally preferred by dwellers. If governments and local community planners have their way, apartments will win the low cost housing market, as they have done worldwide. If ‘our’ product is to win, we’ll all have to pull together more than we are today.” BV

4) “Does the HUD – Code manufactured housing industry Really Want to See the Return of ‘easy access to chattel capital’, stimulating new home shipment volume, and filling vacant rental homesites in LLLCommunities, of all sizes, throughout the U.S.? OR, has the nearly five year shipment nadir (‘Lowest point’ in MHIndustry history!’) become an accepted and manageable status quo benchmark in the minds and operations of one or more fully (regulatory) compliant lenders who’ve cornered the severely constricted manufactured housing loan origination market?

Here’s what one of our peers has to say on this business – model changing trend: “There’s long been an appetite for ‘stupid money’ in the (manufactured housing) industry. For a long time, it was my opinion, the bulk of the industry thought easy money would return, but it might take longer this time than before. However, a combination of factors, but most notably banking regulators and regulations, have made that eventuality all but impossible. Can this industry survive as an all cash business? Most new home sales in our state are currently cash transactions; or circumstances where LLLCommunity owners and investors turn them into rentals. This is changing the business model in ways we‘ve not seen before. The traditional LLLCommunity model, where the property owner owns and rents homesites to homeowners is transitioning to: 1) community – owned home rentals, 2) investor – owned home rentals, and 3) low end new or aged homeowner – owned units and the resale thereof. And nowhere in this trifold mix are there moderate to high end homeowner – financed new homes, the very homes that drove our industry’s growth in the 1995 – 2000 period. So, the question might not be so much as to whether the industry wants the return of ‘easy money’ OR is satisfied with the 50,000 shipment status quo, but IF ‘easy money’ returned, would shipments actually increase – or has the model shifted, as described, and said structure is the New Reality for our industry? In my state, the Big Box = Big Bucks’ house is no longer HUD – Code, but modular in nature, with decent financing, based on favorable value appraisals and quality collateral, making them attractive to local lending institutions.”

Hey; it’s not too late for YOU to weigh – in with your considered opinion and answers to these Four Tough Questions. Again; to do so, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 – or as most folk do, email your input to me via gfa7156@aol.com

End Notes.

1. Big 3Cs of HUD – Code manufactured housing: Clayton Homes, Inc., Cavco Industries, Inc., and Champion Home Builders, Inc.

2. Rejoinder: presently 250,000+/- vacant rental homesites to fill with new and or resale homes; asset class was last at 95%+ physical occupancy in 1998, now at 85%+/- nationwide – so plenty of such homesites available now, and in the near future, for new HUD – Code manufactured homes. GFA

3. To subscribe to the Allen Letter professional journal, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. The 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators Throughout the U.S. & Canada!) is available FREE to subscribers; otherwise, $500.00 per copy.

***

II.

When It Rains It Pours – Imperfectly at Times….

‘Two New Surveys in as Many Weeks’

Two weeks ago, it was the mislabeled ‘2012 Mobile Home Market Facts’; this week, a ‘Manufactured Housing Survey Summary’. The first, a corporate study updated every four years by Foremost Insurance Company; the latter, a first time effort by Colliers International Valuation & Advisory Services (Specifically, Bruce Nell, MAI® & Charles Schierbeck, II., MICP).

Why ‘mislabeled’? Frankly, having served homeowners’ insurance needs of the manufactured housing industry for decades, one would think such an established business would have long ago moved away from trade terminology officially scrapped by the industry’s regulator, and most of the firm’s peers, way back in the mid – 1970s. Let’s hope, in 2017, when the next study appears, it’ll be labeled as ‘2016 Manufactured Housing Market Facts’

Want copies of these seminal reports? In the first instance, free copies of the Foremost MHMarket Facts are available by contacting Joe Kaffenberger via (616) 956-2514. the MHHousing Survey Summary via Bruce.Nell@Colliers.com

I’ve already quoted many of the interesting and helpful statistics and trade trends identified in the Foremost report, in earlier postings of this blog, within the Allen Letter professional journal (That’s why you need to be a subscriber), and the Allen CONFIDENTIAL! business newsletter. So, just scroll back through the blog archives at this website (community-investor.com) to review them.

Now for a multi – part commentary of the Colliers’ MHHousing Survey Summary:

• TERMINMOLOGY. These guys know better than to use four different property – type labels: mobile home park(1), manufactured home community (1), manufactured housing community (7), and manufactured community (1). As this blog’s aficionados know, my preferred contemporary label for our unique type income – producing property is ‘land lease lifestyle community’, or LLLCommunity in short. But some, if not many folk active, in the realty asset class, aren’t as ready for that moniker, and opt for one or another of the aforementioned aberrations. The one most out of line however, is the rendering of ‘manufactured HOUSING community’. Know when and how this aberration first appeared? Well, back in the mid – 1990s, as the second REIT wave began (First REIT wave occurred in the 1980s; think UMH Properties, Inc.), one of the firms launching their IPO (Initial Public Offering of stock) apparently thought it’d be a strategic marketing coup, to convince their peers a trade term that aped (imitated) their firm’s name would (somehow) be a good idea for all. Not. But that’s when the practice started – despite the fact in 1994, J. Wiley & Sons published Development, Marketing & Operation of Manufactured Home Communities, a text replete with ‘agreed upon trade terms’ based on national terminology surveys via the (then) Manufactured Home Merchandiser magazine, with results confirmed by state MHAssociation execs. The preferred term? Manufactured HOME Community. And, to take the matter a step further; here’s the rationale for the LLLCommunity label. This property type no longer sites just pre – 1976 ‘mobile homes’ & post – 1976 manufactured homes, but modular homes (Think BayWood in DE, etc.); ‘park model RVs’ – throughout FL & other Sunbelt states; ‘RVs for a season’ (i.e. Transients splitting their residency between the Midwest & Rio Grande Valley in TX, etc.); and ‘stick – built homes constructed to imitate manufactured homes’ – in Florida after major hurricanes. One more reason to use HOME & not HOUSE: As an industry, we sell manufactured HOUSING to prospective homebuyers. Once they ‘buy’, the HOUSE becomes their HOME, often sited among other like (manufactured) HOMES. So, ‘Why would anyone want to sully the HOME in which our homeowner/site lessees live, by referring to the property where they live as a ‘manufactured HOUSING community’?’ Again, Not!

• A DISCONNECT? Thinking the MHHousing Survey is national in scope, see if you consider the following sentences, quoted from an introductory letter, track logically. “Manufactured Housing Communities are an area of real estate that lacks comprehensive market data that research institution (sic) supply for other segments of the real estate industry. There are some providers of general data in the industry, but Wisconsin is an area that was largely ignored by these firms.” NOTE: (sic), by the way = ‘quoted exactly as written even though incorrect.’ So, is this a national or Wisconsin survey or both? It’s both, but with unclear delineations, here’s another disconnect. The authors state “The manufactured housing industry does not have a standard rating classification.” But it does! The ABClassification System for the Manufactured Home Community Real Estate Asset Class’ was copyrighted in 1998, revised but not endorsed by MHI’s National Communities Council in 2001; and further updated in October 2003 – ten years ago! The ABClassification System rates LLLCommunities per A, B, C & D grade quality, based on a quantified score (maximum of 100percentage points), drawn from the seven evaluation areas of Appearance, Layout, Individual Homesites, Individual Homes, Infrastructure, Amenities, and Community Management. FREE copies of the ABClassification System score sheet are available from PMN Publishing. To order, see end note (above) # 3.

• ERRORS, or matters in need of CLARIFICATION &/or DOCUMENTATION. Early on in this survey, relative to availability and cost of consumer financing, this statement is made: “One third of all manufactured home purchases are financed through credit.” Credit meaning debt financing or something else? Does that mean two thirds or purchases are cash transactions? And ‘all’ = new and resale transactions taken together, or just the former? And, most important; what’s the empirical source of this statistic? There are no footnotes, to speak of, in this survey. Somewhat apropos to this point, is a recent communiqué (7/16/2013) from the Manufactured Housing Association for Regulatory Reform, telling us: “…per U.S. Census Bureau statistics in 2011, 76% of all manufactured hosing placements are titled as chattel.”, suggesting a much higher credit (debt?) presence than just 33%. Then, later in the report, there’re these unclear statements: “Smaller communities operated with only a resident manager (only two of the surveyed communities which indicated this structure, had more than 76 homesites). One employee was also typical of the smaller communities. Only three smaller communities had more than one employee.” Simply: What homesite number characterizes a ‘small community’; 76 or 100 or some other number? What ‘structure’? And are these fulltime or part time employees?

• CONFIRMATION of an ASSET CLASS Rule of Thumb. While the specific nature of ‘high quality’, ‘moderate quality’, and ‘fair to average quality’ grades, among LLLCommunities, was not specifically defined in this survey, the bar graph numbers for each, confirmed the asset class’ widely used Rule of Thumb – ‘subject to local housing market research and adjustment’, as being: ‘A’ or ‘High Quality’ grade being 8%+/-; ‘B’ or ‘Moderate Quality’ grade being 9%=/-; ‘C’ or ‘Fair to Average Quality’ grade being 10%+/-; and, ‘D’ grade (not covered in this survey) being 11% or worse.

Frankly, this survey was a pretty good ‘first effort’ by Mssrs. Neal and Schierbeck. We have no idea how often they plan to research and update, if ever, this Manufactured Housing Survey Summary, but they’re certainly addressing a longstanding need, for reliable and current statistics regarding this 50,000+/- property real estate asset class, and its’ 500+/- known property portfolio owners/operators domiciled in the U.S. and Canada.

Some may have already noticed. A recent updating of the LLLCommunity Standard Chart of Operating Accounts and related Operating Expense Ratios, distributed as a lagniappe to the Allen Letter professional journal, contained not only the ‘standards’ first published in the early 1990s, but new OERs recently researched and published by the ARA Manufactured Housing Community Group in Austin, TX and Denver, CO. Other national real estate brokerage firms, with a specialty department, marketing LLLCommunities, have been invited to share their like data and have it considered for addition to the next updating of said Standard Chart of Operating Accounts & OER Percentages chart. For a FREE copy of this newly revised document, contact PMN Publishing per end note # 3. Better yet; every LLLCommunity owner/operator should have a copy of the ‘Book of Formulae, Rules of Thumb, & Helpful Measures’ (for this income – producing property type) on their desk or in their corporate library. This 2012 book available for only $19.95 from PMN Publishing.

***

George Allen, CPM & MHM
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indpls, IN. 46247 (317) 346-7156

Blog # 254 Copyright 2013 15 July 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

Oops!

Here’s the ‘Fourth Tough (two part) Question’ Promised, but Accidentally Omitted From Sunday’s Blog Post at the community-investor.com website….

“Does the HUD – Code manufactured housing industry Really Want to See the Return of ‘easy access to chattel capital’, stimulating new home shipment volume, and filling vacant rental homesites in land lease lifestyle communities, of all sizes, throughout the U.S?

OR, has the nearly five year shipment nadir (‘Lowest point’ in MHIndustry history!) become an accepted and manageable status quo benchmark in the minds and operations of one or more fully (regulatory) compliant lenders who’ve cornered the severely constricted manufactured housing loan origination market?”

Now, don’t just sit there! Give this two part question some deep and serious thought; then let us know your ‘take’ on the matter. Respond via the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, email: gfa7156@aol.com, or phone (317) 346-7156.

And know what? There was even more substance to the first three questions in the edited – but – not – posted version of Sunday’s blog, than in the DRAFT copy as accidentally published. Here are those questions, along with some probable answers:

• “Why does the MHIndustry eschew (‘shun’) national brand promotion in lieu of stealth deal – making at the local housing market level? Possible answers: Maybe corporate self – protection, a woeful lack of macro vision regarding the industry at large, and or simple resistance to change.”

• Why do HUD – Code housing manufacturers continue to perplex independent (street) MHRetailers and land lease lifestyle community home – buying customers, by routinely ‘mixing & remixing’ building product quality, standarad features, and unit pricing? Possible answers: Maybe to purposely breed confusion, and lack of understanding, appreciation, even respect for other business models and segments of the MHIndustry.”

• When will someone finally and definitively ‘make the case’ for HUD – Code manufactured housing, and its’ sister business model, the LLLCommunity, as being this nation’s Perennial Affordable Housing type and Lifestyle? Possible answers: Maybe the soon – to – be – released, ‘Contemporary Archetype of Truly Affordable Housing in the United States!’ will be a first step in that direction; and, when HUD finally (Maybe too late) recognizes and promotes manufactured housing to that end!

Again; we welcome you’re musings, opinions, critiques, and suggestions relative to all four tough questions. And while you’re at it, maybe pose these same questions to the MHIndustry & LLLCommunity ‘salaried & elected’ leaders you know….

&

Here’s what else was in the edited version of Blog # 253, but not in the DRAFT copy you received and read on Sunday….

Add this to the list of dozen or so meetings planned for this Fall:

15 – 19 October. “Institute of Real Estate Management (‘IREM’) will have its’ annual Leadership Conference in Scottsdale, AZ. For information, visit IREM.org or phone (312) 329-6000.***Since there’re nearly 150 Certified Property Manager® or CPM® members of IREM who express PM affinity for the LLLCommunity asset class, I plan to try to be present.”

Who are the most well known CPM®s throughout the LLLCommunity asset class? Mike Sullivan, Brian Fannon, John Rogosich, Alan Alt, Bill Cramer, Greg Johnloz, Casey Kelly, Russ Petralia, Jon Zorn, Lori Burger, Mike Campbell, Leonard frenkil, Lu Hocker, Bev Schmidt, & George Allen.

***

Next Sunday?

Depends on whether I describe the imminent PERFECT STORM rapidly approaching the HUD – Code manufactured housing industry & land lease lifestyle community real estate asset class – or not.

For these housing manufacturing/distribution & real estate development/investment halves of the HUD – Code manufactured housing industry, this pending PERFECT STORM carries potential for two ‘failure to perform’ scenarios, and a stellar opportunity for two ‘fresh starts’!

But since wholesale ‘change’ is rarely – to – never easy, especially on simultaneous fronts, what will be the probable consequences, pro & con, of such a PERFECT STORM?

‘Ah’, as they say, ‘there is the rub!’ – and why said PERFECT STORM has not been heretofore described and warned of, so significant are the consequences of failure and opportunities for simultaneious fresh starts!

***

George Allen, CPM®Emeritus & MHM ®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indpls, IN. 46247
(317) 346-7156

Blog # 253 Copyright 2013 14 July 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities,
& earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

I.

More Manufactured Housing Shipment Statistics

II.

Picking & Choosing Among the Dozen Meetings This Fall

***

I.

More Manufactured Housing Shipment Statistics

Were you as surprised as I was, to learn last week – from the article preview of ‘Contemporary Archetype of Truly Affordable Housing in the United States!’, that 68 percent of all 2012 manufactured housing purchases were retail priced at less than $40,000.00 apiece? *1 We should be asking ourselves ‘Why the drop in price?’ and then take steps to ‘sell even more new houses to prospective homebuyers’! But are we doing so? Not that I hear. There’s still a penchant afoot, throughout the HUD – Code manufactured housing industry, for a revival of the ‘Big Box = Big Bucks!’ days of yore.

And how ‘bout the fact that, for two years in a row, 2011 & 2012, the volume of new singlesection and multisection homes reached a near equilibrium – at 25,289 for the former and 26,317 for the latter, combining for a total of (a still nadir) 51,606 new HUD – Code manufactured homes shipped during 2011. *2 To me, this product mix factoid simply confirms ‘the return to affordability’ hinted at in the first paragraph. Lest we forget, there’s an estimated 250,000 vacant rental homesites among the 50,000+/- land lease lifestyle communities throughout the U.S. Let’s fill those sites with more and more Community Series Homes or CSH Models, with their durability – enhancing features!

Well, here’s an equally interesting ‘third (statistical) piece’ to the aforementioned unfolding of this affordable housing puzzle. The Manufactured Housing Association for Regulatory Reform, or MHARR, in a Press Release dated 3 July 2013, listed the ‘top ten shipment states, from the beginning of the industry production rebound (Now there’s a bit of an overstatement) from August 2011, through May 2013…’ as follows:

Texas 19,143 new HUD – Code homes shipped
Louisiana 7,788 homes
Florida 4,861 homes
Alabama 4,411 homes
North Carolina 4,357 homes
Kentucky 3,887 homes
Mississippi 3,812 homes
Oklahoma 3,185 homes
North Dakota 3,165 homes
Tennessee 3,117 homes

OK, what common denominator jumps off the page at you, when looking through that list, besides the fact that Texas shipments are more than double the next state in line, and in fact eclipse the total shipments of Louisiana, Florida, and Alabama combined! The next most significant ‘leading indicator’ is that these are mostly Southern states, with the exception of ‘oil fracking state’ North Dakota. *3 And so, what does this third hint say to you? Here’s what it means to me….

Affordable housing is on the rebound despite what many HUD – Code home manufacturers would like the rest of us to believe – based on the type and size homes they routinely continue to display at regional manufactured housing show. Yep. We can clearly see how nearly as many singlesection homes (i.e. smaller and less expensive) are being shipped today as multisection ones (i.e. reminiscent of the Big Box = Big Bucks! Days, circa 1998), that our new home Price Points are lower than they were 15 years ago, and that most HUD – Code manufactured housing shipments are being effected in the South, where labor is generally less expensive.

But Stop! Right here, in the midst of documenting the HUD – Code manufactured housing industry’s return to ‘affordability’ roots, we hear ‘more than rumors’ of 10 percent wholesale price increases, among some manufacturers, for new manufactured homes! And this at a time when inflation is less than half that percentage increase. Why the increase? Given the accuracy of said 10 percent home price increase, is it that, as an industry, we’ve grown accustomed (To pen ‘comfortable’ here would be a misleading overstatement) to operating at the 50,000+/- homes annual shipment level – for the fifth year in a row; and so, opt for a little ‘profit taking’ now, rather than grow shipment levels back to a general level of profitability and prosperity?

Know what? ‘Right here’ is where this industry needs ‘more than one good investigative journalist’! How so? Until this happens – which, frankly it won’t – during these dire economic times for the MHIndustry, these questions will go unanswered:

• Why does the MHIndustry eschew national brand promotion in lieu of stealth deal – making at the local housing market level?

• Why do HUD – Code housing manufacturers continue to perplex their independent (street) MHRetailer & land lease lifestyle community customers, by routinely ‘mixing & remixing’ building product quality, features, and pricing?

• When will someone finally and definitively ‘make the case’ for HUD – Code manufactured housing, and its’ sister business model, the land lease lifestyle community, as being this nation’s perennial affordable housing type and lifestyle?

Frankly, there’s nothing really all that new in the preceding paragraphs. It’s all part of the marketing and production cycle this industry has experienced, time and again, since the late 1940s. It’s just that right now – and for the past four plus years, we’ve been functioning at historic low home shipment levels, for a variety of reasons, and appear to have lost our will and ability to climb out of this collective malaise, to regain at least a 25 percent national market share of housing starts!

End Notes.

1. Foremost Insurance Group’s 2012 Mobile Home Market Facts report. Foremost report available FREE, by contacting Joe Kaffenberger via (616) 956-2514. Article will be lead feature in the August 2013 edition of the Allen Letter professional journal, available by phoning the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

2. ‘White Paper: Issues & Opportunities Facing the Illinois Manufactured Housing Industry’, by Dr. Theodore C. Alex, under contract to the IMHA, Springfield, IL.

3. To request to be put on MHARR’s Press Release distribution list, contact Mark Weiss via (202) 783-4087.

II.

Picking & Choosing Among the Dozen Meetings This Fall

And the list just keeps getting longer! Realizing few of us can afford the time and money to attend all the manufactured housing and LLLCommunity – focused meetings scheduled for this Fall, thought I’d share insights as to what’s going to be happening among some of the more important (Shouldn’t miss!) venues…

5 August. RV/MH Heritage Foundation’s annual Hall of Fame Induction Banquet in Elkhart, IN. This is the only RV/MH annual event that equates with the Academy Awards Ceremony. There’ll be hundreds of RV and MH executives, pioneers, celebrities, and ten Hall of Fame inductees present that evening, to hear Richard Jennison, president of MHI, give the keynote address. To register, phone (574) 293-2344. I certainly plan to attend. *** Want to do breakfast together next morning? If so, call me beforehand at (317) 346-7156.

18 – 20 September. 22nd annual International Networking Roundtable in Bloomingdale, IL. This year’s theme: ‘Celebrating 20 Years of Camaraderie!’ will be highlighted by honoring 13 of 19 LLLCommunity owners, still active in the MHBusiness, who started our national Advocacy effort on 8/31/1993; the release of a new book: ‘The First 20 Years!’ by Bruce Savage; and implementation of a new industry tradition: Offering of the Formal Toast to LLLCommunity Owners, in the form of a poem honoring the memory of the late Bud Zeman, a Chicago – based portfolio owner/operator. For agenda & to register, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And, by the way, new sets of plastic wallet cards, describing three applications of the ‘5 – RPs of Marketing & Selling New Manufactured Homes & Leasing Rental Homesites, will be given to all registrants! *** Carolyn & I look forward to seeing many of you again this year!

29 September – 1 October. Manufactured Housing Institute’s annual meeting, in San Diego, CA. This meeting might mark the beginning of a New Era for land lease lifestyle communities of all sizes. To register, phone (703) 558-0666. *** Carolyn and I plan to attend. Anyone up for a networking party by the pool? Call (317) 346-7156.

8 – 10 October. Third annual SECO Symposium, in Forsyth, GA. Here there’ll be new homes on display, with an emphasis on creative financing for new home sales transactions. Know what? The LLLCommunity owners who’re planning and hosting this event have recently made major headway in securing alternative financing for new and resale home transaction on – site. If you’re selling and self – financing home sales transactions on – site, you cannot afford to miss this stellar event. For more information, contact Spencer Roane, MHM® via (678) 428-0212. *** At present I have a schedule conflict, but am trying to be present to hear, learn and write about their success!

10 & 11 October. MHCommunities of Arizona is planning two days of intensive HOW TO seminars for its’ members. I’ll be a keynote speaker, delivering presentations on ‘State of the MHIndustry & LLLCommunity Asset Class’, as well as a variation of the ‘5 – RPs of Marketing’ talk featured at the aforementioned 22nd Networking Roundtable. Hint. The handout material here will be the best of any distributed during all of 2013! To register, phone Susan Brenton via (480) 345-4202. *** As AZ owners/operators know, I almost always host a private networking dinner while I’m in town. While nothing is planned just yet, if YOU are interested in doing so, let me know via (317) 346-7156.

15 – 17 October. WMA’s annual Convention & Expo, in Reno, NV. I can’t make this one, but wish I could. If you’re interested, phone Sheila Dey @ (916) 448-7002, and tell her ‘George told me to call!’

16 – 18 October. National Communities Council Leadership Forum, in downtown Chicago, IL. As one of the NCC’s founding board members, and present day board member, *** I certainly plan to attend. To register, phone Jenny Hodge via (703) 558-0666

5 & 6 November. London Computer’s annual Rent Manager® conference, on Marco Island, FL. While a ‘closed’ meeting, for the firm’s existing clients, there’ll be a couple hundred customers present. *** The focus of my presentation, this year, will be on Housing Price Point Methodology. For further information, contact your local Rent Manager representative.

5 – 8 November. Urban Land Institute’s Fall Meeting, in Chicago, IL. Green Courte Partners’ founder Randy Rowe is co – chairman of this year’s event. There’ll also likely be a Manufactured Housing Communities Council meeting at this Fall event. *** If I can get Press Credentials, I might attend the ULI & MHCC meetings.

And now what? These aren’t all the meetings scheduled between now and year end, just the ones I have generally complete details for at this time. If you’re planning a meeting, and would like to have it included in a future update at this blog posting, or in the Allen Letter professional journal, let me know by phoning the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

George Allen, CPM & MHM
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Blog # 252 Copyright 2013 7 July 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’
&
Purpose of this blog. ‘To be a national Advocacy voice, statistical Research reporter, & communications Resource for LLLCommunities, of all sizes, throughout North America’

I.

Surprising but Confirming Statistics
from Two Manufactured Housing Reports

II.

‘Contemporary Archetype of Truly Affordable
Housing in the United States!’

III.

A New Book: ‘The First 20 Years;
‘Forging Manufactured Home Community Advocacy & Networking’

IV.

From Blog Floggers (readers)….

***

I.

Surprising but Confirming Statistics
From Two Manufactured Housing Reports

Almost everyone is somewhat familiar with Pareto’s Law (‘that income distribution remains constant, whatever efforts are made to change it’*1), e.g. ‘80% of a country’s wealth is held by 20% of its’ population’. Well, Pareto’s Law, a.k.a. the ‘80/20 Rule’ has long had a place in manufactured housing industry shipment history, but not the manner Vilfredo Pareto articulated it. Goes like this: In the early days (i.e. Heyday of 1970 – 1980) of ‘mobile home’ production, in round numbers, 80+/-% of total annual new home shipments were ‘singlewides’, & 20+/-% ‘doublewides’, by the time of our too brief renascence, between 1995 – 2005, when those percentages reversed, with 20+/-% being (now) ‘single section’ manufactured homes, and 80+/-% being (now) ‘multisection’ homes. Surely you remember the ‘Go Go’ Big Box = Big Bucks! Days, when land – and – home packages, sold and contracted by independent (street) MHRetailers and ‘company stores’, competing for housing market share with production (site) builders throughout the U.S.?

For a variety of reasons, that housing marketing focus didn’t work well for long, and when the HUD – Code manufactured housing industry decisively ‘lost’ its’ ready access to chattel (personal property) capital, early this century, the ‘shipment pendulum’ has been swinging away from multisection homes back toward singlesection homes. An indeterminable part of that swing can be credited to the appearance, in 2008 and thereafter, of specially – designed Community Series Homes or CSH Models, produced by many, but certainly not all, HUD – Code home manufacturers, for siting in mostly portfolio – owned land lease lifestyle communities (a.k.a. manufactured home communities) nationwide.

Now that’s another fascinating tale; but one for another time, when talking
about the return of rental units, the meteoric rise in property owner self – financing (i.e. ‘captive finance’) of home sales transactions on – site, and the just as rapidly occurring negative consequences of onerous state and federal financial regulation of the manufactured housing industry and real estate asset class.

Well, during a chance review of an ‘annual (manufactured housing) shipment chart’ in the 3 December 1212 ‘White Paper: Issues & Opportunities Facing the Illinois Manufactured Housing Industry’, by Dr. Theodore C. Alex, we learned the annual shipment volume of singlesection and multisection manufactured homes reached a point of near equilibrium in 2011, and continued all the way through year 2012 as well!

Specifically; in year 2011, 25,289 new singlesection manufactured homes were shipped, as were 26,317 multisection homes, for an annual shipment total of 51,606. Page # 7. That’s about as close to 50/50% as you’re gonna get in the HUD – code manufactured housing shipment scenario. So, what does this mean? That (some of) the HUD – Code manufactured housing industry is experiencing and dealing with change, as it hunkers down and does what’s necessary to serve those markets (e.g. 50,000+/- land lease lifestyle communities nationwide) open to this unique type of factory – built housing. While further explanation is beyond the scope of the quoted Illinois report, this specific strategy generally means designing, selling, and shipping more CSH Model homes (featuring durability – enhancing features intended to facilitate reconditioning between renters and or contract buyers of said homes), even ‘park model RVs’, into LLLCommunities throughout the U.S.

But wait! There’s a serious caveat to this ‘small ray of shipment hope’ i.e. placing more new homes into LLLCommunities, on the way to filling an estimated 250,000 vacant rental homesites nationwide. And it goes like this: Until EVERY HUD – Code home manufacturer takes this (now) five year new home shipment nadir crisis seriously (i.e. Where we’ve been ‘bouncing along the bottom’ @ 50,000+/- new homes shipped per year during this time) and FINALLY reacquaints themselves with How To Actively Market New Homes to this realty segment of the MHIndustry, the very segment ‘which brought them to this housing dance in the first place during the early 1970s’ – LLLCommunities large and small, nothing much is gonna change anytime soon! And as is oft said, figuratively speaking, ‘You can take that to the bank!’ Why that metaphor? Because, for the past decade, LLLCommunity owners/operators have, by necessity, become their own bank, financing many, if not most, of the (home) deals they sell!

Why am I so sure of this general disconnect? After five years of writing about, aggressively promoting (Often directly to HUD – code manufactured housing producers and their ‘Business Development Managers’ or BDMs), and displaying Community Series Homes, circa 2008, at every annual International Networking Roundtable (The single largest draw of LLLCommunity owners/operators each year!), the income – producing property segment of our industry, especially the 85% of 50,000 LLLCommunities containing fewer than 100 rental homesites apiece, continues to be ‘all but ignored’ by most HUD – Code home producers! There, I’ve said it out loud and in this very public online forum patronized by 1,000+/- readers. Now I’ll wait, along with you, to see ‘if and how many of’, these relatively few remaining home manufacturers take this marketing matter seriously. And as a corollary, you may or may not be aware, that more than 80% of today’s total national market share of HUD – Code manufactured housing is shipped by three ‘Big C firms’, those being Clayton Homes, Inc., at 48+/-%, Cavco Industries, Inc., & Champion Home Builders, Inc. The remaining 20+/-% of national market share is accounted for by mostly regional ‘players’, who should be – but aren’t, taking just as serious an interest in marketing new HUD – Code manufactured homes for siting within LLLCommunities.

An apt, and appropriate ‘closing sidebar’ here, has to do with training aids (the ‘Ah Ha! & Uh Oh! Worksheet’ for estimating ‘affordable’ & ‘risky’ Price Points for new & resale manufactured homes for placement within & outside LLLCommunities; AND the fresh – off – the – press ‘5 – RPs of Marketing & Selling New Homes INTO a LLLCommunity’ plastic wallet card *2) have generated little interest, let alone use, among HUD – Code home manufacturers, while being very popular among LLLCommunity folk marketing and selling homes on – site. Go figure.*3

End Notes

1. Vilfredo Pareto (1848 – 1923), Italian economist and political ph8ilosopher. A vigorous opponent of socialism and liberalism, he justified inequality of income on the grounds of his empirical observations. Webster’s New World Encyclopedia
2. 5 – RPs = Right Product, Right Place, Right Price, Right Promotion, & Right People.
3. FREE copy of the ‘Ah Ha! & Uh Oh! Worksheet’ is available when one phones the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And the set of ‘5 – RPs of Marketing & Sales of HUD – Code Manufactured Housing & Leasing of Rental Homesites’ will be distributed to all attendees at the 22nd International Networking Roundtable, 18 – 20 September 2013, in Bloomingdale, IL. Ask for agenda and registration form when phoning the HOTLINE.

Now, for that second manufactured housing report….

Have YOU obtained a copy of, and studied, the ‘2012 Mobile Home Market Facts’ report researched and recently distributed by the Foremost Insurance Group? If not, you owe it to yourself to make that effort today! It’s well worth your time and reading. Contact information later in this review.

While I’ve already reviewed some of the seminal statistics, contained in this 13 page report, in ‘the Allen CONFIDENTIAL!’ and the ‘Allen Letter professional journal’, some of the material is worth repeating here.

First off, know that Foremost’s ‘once ever four year’ report, and the annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Portfolio Owners/operators of Land Lease Lifestyle Community Owners/operators Throughout North America!’) continue to be the only two professionally researched, published, and distributed ‘industry & asset class wide’ reports in the entire HUD – Code manufactured housing industry. That’s why you owe it to yourself to get a copy of this edition of Foremost’s research. There won’t be another one now until 2016!

Page # 2 pretty much ‘says it all’! “The Mobile Home market Shifts Toward Older Homes and Lower Income Households’ (e.g. “55% of mobile home owners reported an annual household income less than $30,000, representing a 16% increase from 2008.”) And there’s more….

“Single – section homes represented 59% of all units. Multi – section homes are down 8% since our 2008 study.” What did I tell you in the first half this Part I of this week’s blog posting?

And get this: “68% own or are buying their mobile home; 24% rent.” Now, there’s another ‘late 1970s trend’ – back towards ‘rental units’, that few recognize or write about these days. How come? Frankly, manufactured housing journalism is fast becoming a ‘lost art’ or worse – or so it seems – when one considers how few advertising – supported print trade publications remain (Only one!), and subscriber – supported newsletters (Only two!), along with ‘just a couple’ online ‘general & financial news’ ezines. That’s all there is! (Please excuse the tangential diatribe)

OK, I could go ‘on and on’ here, but I know what you’re most interested in learning: ‘How to get a copy of the 2012 Mobile Home Market Facts report!’ Phone Joe Kaffenberger via (616) 956-2514, and when you call, please tell him, ‘George told me to call!’

Know what I’d like to see happen in the 2016 edition of Foremost’s report? A wholesale switch away from ‘mobile home’ lingo, to ‘manufactured housing’ and ‘land lease lifestyle community’ enlightened verbiage. Will it happen? Guess we’ll have to wait (four years) and see. In the meantime, ‘get your copy’, study it, and make good use of what you learn – especially those reading this who’re HUD – Code manufactured housing producers and marketers (Just maybe someday, we’ll reverse those two function words, and see our industry embrace ‘marketing and then production’!) But don’t hold your breath.

***

II.

‘Contemporary Archetype of Truly Affordable
Housing in the United States!’

OK, this is going to be ‘short & sweet’, as they say in some circles. If you’re an ‘Allen Letter professional journal’ subscriber, you’re already in the cat seat for what I’m about to tell you. If NOT, then you might want to seriously consider subscribing before the August issue of the newsletter goes into the mail. To do so, simply phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764. Credit card orders welcome; annual subscription is $134.95 for 12 monthly issues and a dozen Signature Series Resource Documents (‘SSRDs’) – including a FREE copy of the annual ALLEN REPORT, and 11 other such seminal documents re ‘RE & chattel lenders, consultants, etc..

‘Contemporary Archetype of Truly Affordable Housing in the United States!’ is the lead feature article in the August issue of the newsletter. Following are the opening paragraph from this opus, a particularly ‘telling’ paragraph incorporating timely statistics form the aforementioned 2012 Foremost report, and concluding paragraph.

Allowing for inevitable and key differences among local housing markets (e.g. demographic statistics, availability of services, & employment opportunities, to name a few), low cost and priced HUD – Code manufactured homes sited in land lease lifestyle communities (a.k.a. manufactured home communities), charging rental homesite rent in sync with other forms of nearby multifamily rental housing (e.g. Usually 1/3rd the monthly rent charged for a 3BR2B conventional apartment or townhouse, assuming utilities are billed in similar fashion), continue to be the contemporary archetype (‘original model or prototype’) of truly affordable housing in the United States! How so?

Mid – article paragraph:

Neither of the two latter ‘affordable’ residual $ amounts are much to work with, in many to most local housing markets; ;but they are indeed ‘doable’ in some, if not many, blue collar, family LLLCommunities! Proof? The recently released (June 2013) ‘2012 Mobile Home Market Facts’ report, researched and published by the Foremost Insurance Group, documents, that during year 2012, 18% of manufactured housing purchase prices ranged between $10,000 & $19,000; 14% between $20,000 & $29,999; and, 13% between $30,000 & $39,999; for a total of 45% of all HUD – Code manufactured homes sold during year 2012 being priced between $10,000 & $40,000. And this 45% total does NOT include yet another 23% of manufactured homes that sold for less than $10,000.! Frankly, housing simply doesn’t get any more affordable than this combined 68% of 2012 manufactured housing purchases priced at less than $40,000 apiece.

Final paragraph:

Finally, when the 50% ‘affordable housing adjustment’, of a local housing market’s AMI (Annual Median Income) is considered, buying an inexpensive resale manufactured home, sited on a rental homesite within a LLLCommunity , is often the ONLY viable alternative an individual or family has in today’s uncertain housing market. That’s why HUD – Code manufactured homes sited in LLLCommunities remain the sole contemporary archetype of truly affordable housing in the United States today!

I’ve been writing for the HUD – Code manufactured housing industry and land lease lifestyle community real estate asset class for more than a quarter century, and at last estimate, have researched and published no fewer than 2,500 articles and newsletters, along with 11 books. Frankly, I’ve been ‘learning & waiting’ most of those 30+/- years to pen the piece I’ve just told you about, and from which I extracted those three paragraphs. My hope is that it becomes the first step, by which all of us in the industry and property type, believe, recognize, and deal with the reality that our homes and multifamily rental property type are indeed the ‘contemporary archetype of truly affordable housing in the United States’ – and that placement of this piece in the hands of politicians and regulators, especially HUD, motivates them to buy into and support this reality as well!
So, make it a point to read the August issue of the Allen Letter professional journal.

***

III.

A New Book: ‘The First 20 Years;
Forging Manufactured Home Community Advocacy & Networking’

The title of this Part III of this week’s blog posting at the community-investor.com website is the ‘working title’ of the book Bruce Savage, CAE., is researching and writing this Summer, for printing and binding in time for distribution at the 22nd annual International Networking Roundtable, 18 – 20 September 2013, in Bloomingdale, IL. Sure hope YOU plan to be there, as we’re expecting more than 250 land lease lifestyle community owners/operators, and their preferred lenders, from throughout the U.S. and Canada. And like subscribing to the ‘Allen Letter professional journal’ in Part II above, simply phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request an agenda and registration brochure.

So, what’s this new book about? YOU, if you’re an owner/operator of a LLLCommunity; more specifically though, it’s ‘a little bit of history’, beginning on 31 August 1993, when 19 of your peers met in Indianapolis, IN., to take control of their (our) collective destiny, where national advocacy, representation, communication, and networking is concerned. Yep; it was an exciting, albeit at times scary, beginning of what’s since become a 17 year ‘run’ for the National Communities Council division (‘NCC”) of the Manufactured Housing Institute, or MHI.

Not going to ‘tell the story here’, that’s what the book is for; but thought you’d like to learn how the manuscript is shaping up to date.

Bruce has been interviewing the 13 of 19 LLLCommunity ‘pioneers’ still active in the realty asset class or recently retired. His outline to date covers some of what led up to the 8/31/1993 meeting (Hint. REIT ‘wave’ began in 1994, less than a year following said meeting in IN.), the series of ‘around the U.S.’ meetings that occurred during the next couple years, and how the NCC was birthed 1 January 1996, under the executive guidance of Jim Ayotte (now executive director of Florida’s MHAssociation). And, as you’d expect, there’s a summary of projects, etc., undertaken by the NCC during it’s 1 ½ decades of existence.

Some of you have asked why I didn’t make this book number 12 in my career. Well, it’s fairly simple reasoning. I ‘was present at the birth’ on 31 August, and since 1988, with the publication of ‘Mobile Home Park Management’, since retitled with release of the 6th edition, as ‘Land Lease Community Management’ have authored every other book ‘still in print’ about our industry and realty asset class. It’s time for someone else to shoulder the responsibility of being the ‘scribe of manufactured housing’. My hope, at PMN Publishing, is this historical retrospective by Bruce Savage, will serve as his entrepreneurial debut to this end. I know I’m excited about getting to read the final product; I hope you are too. And know what? Every attendee at this year’s 22nd annual Networking Roundtable will receive a FREE copy of it. Just one more good reason for YOU to be present at this major annual gathering of LLLCommunity owners/operators.

In the meantime; Bruce is recruiting and working for MHIndustry clients with a need for his print and online communication expertise. If you’d like to get in touch with him directly, simply phone (202) 664-4512. He’s also listed in the 14th annual ‘Who Ya Gonna Call in 2013?’ list of MHIndustry & LLLCommunity Freelance Consultants. If you’d like a FREE copy of this directory of 40 national consultants, ask for it when you subscribe to the newsletter and request a Networking Roundtable brochure.

***

IV,

From Blog Floggers (readers)….

Two this time around. The first from an old timer in our business, the second from an up and coming young executive in one of the largest fee management firms in the U.S. today.

“Yes, dysfunction seems to reign in Washington, and in some state associations as well. Here we are (manufactured housing), the best buy, period; and we ignore our potential, instead focusing on a desperate attempt to survive? What that Abbott & Costello could grasp ___ & _____, and our suppliers, manufacturers, servicers, and financiers playing with our (business) lives, all separately. And to boot,, we let our interest and need for (land lease lifestyle) communities disappear in a fog of being ignoramuses.” NB (Edited for effect. GFA)

-and this-

“Inspiration can be achieved with a change in public opinion, but not necessarily among those in control. Response to this (article) description of our community, and what we’re doing, has temporarily shut down our incoming phone lines. Imagine that in a (land lease lifestyle) community! Promotion (of this concept) to government officials, must inform them about our unique brand of senior communities, i.e. branding to 55+ Baby Boomers, now turning into Seniors. Our company is moving out of traditional complacency!” SL (Edited for effect. GFA)
***

George Allen, CPM & MHM
Box # 47024, Indianapolis, IN. 462437
(317) 346-7156

Blog # 251 Copyright 2013 30 June 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’
&
Purpose. ‘This blog; the national Advocacy voice, statistical Research reporter, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

I.

WRITER’S BLOCK

Years ago, the late Herb Tieder, then editor & publisher of the now defunct Manufactured Home Merchandiser magazine, and I, came across two, three inch square blocks of wood, with five pencil – sized holes drilled in the top of each One was labeled ‘Writer’s Block’; the other, ‘Editor’s Block’. I kept – and still have the former; he, the latter. We joked about them from time to time, as we kept said blocks on our respective desks, each holding an assortment of ball point pens and pencils.

Well, today I’m dealing with another type ‘writer’s block’, one generally associated, from a writer’s perspective, with either 1) not having much helpful to share in this week’s blog posting; or frankly, 2) too much material not fully understand – or about which there seems to be general confusion. Ever been torn betwixt and between like that? For me, it’s an unsettling feeling.

So, let’s take a brief look at both perspectives: having much information not fully understood; and then, one topic of the warm fuzzy category of helpful information.

II.

Washington, DC Contretemps cum Conundrums

Contretemps: ‘an embarrassing occurrence’

Conundrum: ‘a riddle; a hard question’

Having ‘careered through’ no fewer than five presidents/CEOs’ at the Manufactured Housing Institute (‘MHI’), and one Danny Ghorbani = the Manufactured Housing Association for Regulatory Reform (‘MHARR’), during the past three plus decades, one would think this veteran MHIndustry observer would be more than used to the on – again, off – again relationship machinations between these two national advocacy bodies. Not!

This unity/disunity conflicted state of mind has again been stimulated of late, by a flurry of email messages (apparently) seeking to inform focused and casual readers alike, regarding manufactured housing industry issues, timely circumstances, pending legislation, and more. A few examples:

• HUD program administrator hiring announcement. Consider this a political football once in play, now fumbled! MHI & MHARR agreed to lobby in behalf of one HUD program administrator candidate of their liking. But now, the HUD program administrator hiring announcement has been distributed far and wide, via at least one state MHAssociation and a special blog posting. Consequently, the playing field has lengthened and options (opportunities) increased. Good or bad?.

• GAO & future of HUD as manufactured housing’s regulatory agency. Here, MHIndustry leaders learn of itinerant interviewers asking: ‘What consequence(s) if HUD is replaced as federal regulator of manufactured housing?’ Industry responses to date? MHPoliticos have denigrated or ignored the notion altogether; and some openly discuss the menacing matter, so as to be prepared if/when an industry ‘competitor’, or special interest group, steps into the fray. Good or bad?

• RV interests seek amended definition of manufactured home, in 1974 Act, to exempt larger RVs & some ‘park model RVs from said standards – in effect, creating a new type or classification of factory – built housing (i.e. Units built on steel chassis), that may or may not be appropriate for siting in land lease lifestyle (a.k.a. manufactured home communities), per state regulation. Good or bad?

Some obvious questions here being: 1) Why are such sensitive, potentially paradigm – changing communiqués emanating from more than one national advocacy source? 2) Is there a strategy, of some sort, in play here? Thinking, a Trojan Horse scheme, ‘divide & conquer’ maneuver, or just plain naïveté’ afoot in our nation’s capitol. And, 3) What will it take, to get elected and salaried HUD – Code manufactured housing leaders to finally ‘speak with one unified and effective voice’ in matters politic and having to do with the federal regulation of our industry??????????

II.

Meet the ‘5 – RPs of Marketing’ Applied to Manufactured Housing & LLLCommunities!

Actually, the concept is quite simple, and has an historic twist to it.

Pick up just about any college – level ‘Introduction to Marketing’ textbook, and you’ll find somewhere therein, reference to the ‘Four Traditional Letter Ps of Marketing’. These being:

• Product
• Place
• Price
• Promotion

At that point, the text will often describe, in detail, just how these ‘four Ps’ fit together, not necessarily in the order shown, to effectively Promote one’s appropriate Product or needed service, at the best time and Place, with the right Price. It’s as simple as that, but – believe it or not – it’s an incomplete (marketing) picture at best.

How so? To effectively Promote, the appropriate Product (or service), at the best time and Place, and for the right Price, one had better have yet another ‘letter P’ in play, that being the best People – properly recruited, selected, trained, incentivized, and supervised! And speaking of the Right People, might as well add the word Right to all five ‘letter Ps’ as well, e.g. Right Product, Right Place, Right Price, Right Promotion & Right People! All that brings us now, to the

Five – RPs of Marketing & Selling Manufactured Homes INTO and WITHIN Land Lease Lifestyle Communities, as well as Leasing Rental Homesites WITHIN said Properties….

Yes, there’re three distinct environments in which these ‘Five RPs of Marketing’ are designed to work:

• ‘5-RPs of Marketing & Selling New Homes INTO a LLLCommunity’; this application being from the home manufacturing or plant perspective.

• ‘5-RPs of Marketing & Selling New Homes WITHIN a LLLCommunity’; this application is from the property owner/operator perspective, possibly including one or another type of self – finance or ‘captive finance’, where and when said home sales transactions are concerned.

• ‘5-RPs of Marketing & Leasing Rental Homesites WITHIN a LLLCommunity’; again, this application is from the property owner/operator perspective, harkening back to the traditional manner(s) by which rental homesites are filled.

And the details of marketing & selling (leasing) in these three environments and in accords with these different perspectives? Well, for that you’ll need a set of two 3”X5” plastic wallet cards, recently designed and manufactured for the HUD – Code manufactured housing industry and land lease lifestyle community asset class! Initial distribution of these durable, portable training and memory aids will occur during the 22nd annual International Networking Roundtable in Bloomingdale, IL. @ 18 – 20 September 2013. To register, visit this website or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request an information/registration brochure.

In the meantime, engage in the following do – it – yourself exercise. Pick one, and eventually all three, perspectives, and mentally walk yourself through the ‘Five RPs of Marketing’ and ask yourself, along the way: ‘As a (home manufacturer or LLLCommunity owner/operator) do I/we have the Right Product (or homesite) for this local housing market? How do I know so? Then, how ‘bout the Right Place? Need to improve on it somehow? Then, the Right Price (point) for homes (homesite) being sold/leased? How to know? Use the ‘Ah Ha! & Uh Oh! Worksheet’ to decide.*1 Then, the Right Promotion(s) in place re: off & on – site signage, print & online advertising, etc.. And how ‘bout Right People? When was last time they were Mystery Shopped to measure job performance?*2

Get the idea? Well, that’s what these two plastic 3”X5” wallet cards are all about! In each instance, there’s a plethora of suggestions for the ‘user’ to consider when establishing one’s marketing plan, for any local housing market, and or reviewing one already in existence. So, don’t miss your opportunity to pick up a FREE set of these cards at the Networking Roundtable in September.

End Notes:

1. For FREE copy of the popular ‘Ah Ha! & Uh Oh! Worksheet’, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764. While you’re at it, also ask for a FREE copy of the ’10 Symptoms of a Troubled LLLCommunity!’

2. Professional complete Mystery Shopping (i.e. telephone & on – site evaluations of sales/leasing team’s on the job performance, in writing, and documented with photographs) of land lease lifestyle communities, available for only $500.00 per property, plus travel – related expenses. Anywhere in the U.S. Simply phone (317) 346-7156. Slightly lesser rate for multiple properties in the same local housing market.
***

George Allen, CPM & MHM
Box # 47024, Indpls, IN. 46247

Blog # 250 Copyright 2013 16 June 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities, & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’
&
Purpose. To be the national Advocacy voice, statistical Research reporting, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

I.

Blog ‘Purpose’ Blossoms!

II.

250 Weekly Postings & Growing!

III.

Support the RV/MH Heritage Foundation!

IV.

Celebrating 20 Years of LLLCommunity Camaraderie

***

I.

Blog ‘Purpose’ Blossoms!

Unsolicited, overwhelmingly positive response(s) to last week’s blog (Titled: ‘Some things in Life & Business Are Simply Not Meant to Be! – OR – Are They; but over Objections?’) motivated a rewording and expansion of the PURPOSE statement heading this and future blog postings at the community-investor.com website. While the focus of last week’s blog (dated 9 June 2013) addressed and countered Five Reasons (unofficially) cited for NOT expanding product and service offerings by MHI’s National Communities Council division, readers felt ‘this weekly blog posting’ should ‘lead the way’, one more time, ‘working within the MHIndustry’s political system’, to create the proverbial Three Legged Stool of NCC service, relative to 1) national Advocacy, 2) statistical Research, & 3) ongoing Resource servicing, of land lease lifestyle communities, Of All Sizes, nationwide! Hence this reworded and expanded PURPOSE statement:

‘To be the National Advocacy voice, statistical Research reporting, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

II.

250 Weekly Postings & Growing!

Has it been five years already? Guess so. And ‘truth be told’, the total number of blog postings, originating from this pen (computer), is closer to 300, when one counts the year of postings at the no longer published Manufactured Home Merchandiser magazine’s website.

And the reader total continues to grow month after month after month. Today, more than 600 MHIndustry & LLLCommunity aficionados receive a BEBA (Blast Email Blog Alert) most Sunday mornings, announcing the posting of that week’s blog at community-investor.com. And know what? Every one of these BEBA email addresses connects with a businessman or woman earning their livelihood in one or another of HUD – Code manufactured housing’s half dozen or more Business Model segments.

So, If you’ve happened onto this blog posting, and would like to have your name and email address added to one of more than 30 BEBA lists, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, and express that desire….

III.

Support the RV/MH Heritage Foundation!

Whenever I escort a first time visitor to the RV/MH Museum, Hall of Fame, and Library facility, at 21565 Executive Parkway, Elkhart, IN., the reaction is the same: “I had no idea this would be so big, and so very nice!”

Yes, the sister industries of ‘recreational vehicles’ & ‘manufactured housing’ have a next to new, multipurpose, two story facility, right alongside the South edge of Interstate 80, connecting eastern and western Indiana. In fact, there’s an interstate exit, right there in view of the RV/MH Hall of Fame – and visitors and tourists come to visit the exhibit halls, library, and impressive Hall of Fame display, every day the facility is open. Why don’t YOU plan to visit sometime soon? Just phone (574) 293-2344 to let’em know you’re coming….

Won’t go into the several decades long history of the RV/MH Hall of Fame here, but know it does exist, and will continue to do so – and GROW, only if YOU take an active interest in supporting our legacy preservation facility with your Visits, Membership, and Charitable Contributions. Already told you how to plan a visit. And while you’re making said phone call, inquire as to the cost of a lifetime membership in support of the RV/MH Hall of Fame – it’s a very reasonable amount (I’m a Life Members, as is Ken Rishel, and many other ‘friends in the MHBusiness’). In addition, include the RV/MH Hall of Fame in your corporate budget every year. GFA Management, Inc., dba PMN Publishing, has done so for more than two decades, and Carolyn and I consider the money well invested, helping commemorate and preserve our industry and asset class’ past, present, and future.

Want to participate in a special legacy opportunity this Summer? When phoning to arrange for the aforesaid visit, about becoming a Lifetime Member, or arranging a Charitable Contribution, make a reservation to attend the annual RV/MH Hall of Fame Induction Banquet, the evening of 5 August 2013. There’ll be ten RV/MH true pioneers inducted that evening, including Craig Bollman, LLLCommunity developer, Theresa Desfosses, HUD – Code home manufacturer and LLLCommunity owner/operator, and Tom Walworth of Statistical Surveys, Inc. I’ve already sent in my reservation. How can you not want to be among several hundred RV/MH industries’ notables present that evening? For yet another ‘good reason’, to attend, read the first bullet point in part IV following…

IV.

Celebrating 20 Years of LLLCommunity Camaraderie!

I’ve mentioned ‘Celebrating 20 Years of LLLCommunity Camaraderie’, in earlier blog postings, and within the pages of the Allen CONFIDENTIAL! and ALLEN Letter professional journal, but since then, there’s a new twist to the celebration, so thought I’d mention it at least one more time.

Heretofore, you’ve read the historic Strategic Planning meeting, held in Indianapolis, IN., on 31 August 2013, will be commemorated in two distinct ways. Well, a third has been added to the mix, and here they all are:

• 13 of 19 (then) manufactured home community owners, who met that day, to shape the future of national Advocacy, for their realty asset class, are still active in the MHBusiness, or have retired. Any of them who attend this year’s RV/MH Heritage Foundation’s annual RV/MH Hall of Fame Induction Banquet, on 5 August, will be formally recognized, individually or as a group, at the beginning of the evening’s festivities. Again, phone (574) 293-2344 for further details and make a reservation to attend the festivities. See you there!

• 22nd International Networking Roundtable theme this year, commemorates the same historic event, i.e. ‘Celebrating 20 Years of Land Lease lifestyle Community Camaraderie!’ Gary McDaniel, chairman of YES! Communities, one of the aforementioned ’13 of 19’ Pioneers, will lead off as keynote speaker at this 18 – 20 September 2013 event. Again, phone the Official MHIndustry HOTLINE for details and to register, Expecting more than 250 this year! And here’s a late breaking, related NEWS FLASH! The Illinois Manufactured Housing Association, at its’ annual meeting in Urbana, IL., this past week, with more than 60 members present, voted to reconstitute its’ board of directors, with an eye to reestablishing itself as the primary statewide Advocacy body for manufactured housing and land lease lifestyle communities! What does this have to do with the Networking Roundtable? After the election, an invitation was extended to hold IMHA’s 18 September morning board meeting at the Roundtable’s host hotel, Indian Lakes in Bloomingdale, IL. This would facilitate participation, in said board meeting, by more than 30 LLLCommunity portfolio owners/operators domiciled throughout the Chicago SMSA. (The invitation will be considered at the board’s meeting in July)

• And here’s the New and Exciting manner in which these ’20 Years of Camaraderie’ will be commemorated: With a New, as yet untitled, book, profiling the LLLCommunity owners who participated in the 8/31/1993 meeting, along with lists of past NCC chairmen, and MHI executives, who’ve served during the past 17 years of the council’s history, and more! The book will be distributed FREE to all attendees at this year’s 22nd annual Networking Roundtable in Bloomingdale. How can you not want to be present to receive your copy – along with those mysterious ‘5 – RPs of Marketing & Sales (plastic) wallet cards hinted at previously, in blog postings at this web site? Book’s author? Bruce Savage, former MHI staff member, present day Communications Consultant to the MHIndustry and LLLCommunity asset class. Reach him via (202) 664-4512 and request a brochure describing his services.

Should be obvious to you by now, that this year’s 22nd annual Networking Roundtable is quickly shaping up to be one extraordinary event for not only owners/operators of land lease lifestyle communities, but manufactured housing industry businessmen and women as well. For an informative registration brochure, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

George Allen, CPM & MHM
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Blog # 249 Copyright 2013 7 June 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’
&
Purpose. ‘A primary research, resources, & op/ed communication means for owners & operators of LLLCommunities of all sizes nationwide, + national advocacy awareness.’

I.

Some Things in Life & Business
Are Simply Not Meant to Be!
– Or –
Are They; but over Objections?

One man’s opinion why ‘A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities, of all sizes’, won’t likely evolve within either present day MHAdvocacy organization; OR, maybe so!

It’s a simple & complicated matter at the same time!

In the first instance, one national manufactured housing trade advocacy body, the Manufactured Housing Association for Regulatory Reform, or MHARR, simply does NOT have a membership category for any other segment of the industry other than HUD – Code home manufacturers, and NO plans to create new categories in the near, interim, or even distant future. That’s been their position since 1993, when offered an opportunity to bring (then) manufactured home communities, into their fold. So, NO ‘Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities, of all sizes’, there. However, the MHARR does openly support the creation of a new national, independent, not for profit, post – production trade Advocacy entity, to include and serve every industry segment except home manufacturers!

On the other hand, the national manufactured housing trade advocacy body claiming to represent ALL segments of the HUD – Code manufactured housing industry, the Manufactured Housing Institute or MHI, and its’ National Communities Council division (‘NCC’), have, in the opinion of this industry observer/direct, dues – paying member of the institute, unofficially communicated at least five intrinsic reasons for not increasing services and products available to land lease lifestyle community members:

• The tendency, where the NCC division is concerned, after 17 years of existence, to be “…kinda stuck in first gear, as national Advocate for the real estate asset class.”*1 This singular focus is underscored by the council’s periodic, as opposed to weekly or monthly, online newsletter (There is no print publication) to members; little to no professional property management education; only one mega – networking event each year; and of late (circa 2013), just one general membership meeting per year – when there should be two. Such single – mindedness and lethargy severely limit the efficacy of the division, and its’ ability to attract new, direct, dues – paying members.

• Commonplace for MHI to concentrate on the needs and wants of HUD – Code housing manufacturers. And sure; why not? The lion’s share of dues income (i.e. floor fees), supporting this national advocacy body, comes from this segment of the HUD- Code manufactured housing industry. Note the institute’s foci: national Advocacy, especially where HUD – Code standards and recent financial regulatory compliance are concerned; but also statistics gathering (i.e. tracking home shipment volume each month in various regions of the U.S.); trends in home size and configuration (e.g. Dominance of ‘single wides’ during 1970s, followed by prevalence of ‘double wides’ during 1990s; and now, a near statistical match in home shipment volume between singlesection and multisection homes shipped during 2011 & 2012); and, ‘who our homebuyers are’ in local housing markets. The manufacturing segment of the industry even has its’ own Think Tank of sorts, the Systems Building Research Alliance or SBRA. No other institute division is so well and regularly served! And this manufacturer focus, is in reality, an array of services at the behest of the ‘Big Three C’ firms (Clayton, Cavco & Champion), who together, garner more than 80% of the national market share of HUD – Code home shipments.

• An expanded agenda for the NCC division would be too much work (for the present staff of one)! Agreed! So, to finally move beyond (just) national Advocacy, to include statistical Research, and ongoing Resource servicing (e.g. more print communication, forms & books; professional PM education & certification; quality interpersonal networking – especially for LLLCommunity ‘owners’; even realty deal – making), a healthy mix of subcontracted tasks (Think the Center for Manufactured Housing Studies or CMHS for research) and an increase in the number of staff members – to a total of three, will be necessary. Now, too much operating expense and capital outlay? That’s the next ‘reason’ oft cited.

• Costs too much to fully service LLLCommunity owners/operators, of all size properties, nationwide! So far I’ve not heard or seen anyone at the institute ‘run the $ numbers’, and they certainly haven’t asked for operational expense data from the present ‘for profit’ source of ‘statistical Research & ongoing Resource servicing’, GFA Management, Inc., dba PMN Publishing. The money is there! All but one of the nearly dozen present day (GFA/PMN) profit centers is just that, a profit center: two subscriber – supported business newsletters each month, the annual Networking Roundtable, tuition from the popular MHM® program, sale of the ALLEN REPORT (Actually a loss leader, used to generate paid newsletter subscriptions) and other Signature Series Resource Document or SSRDs, and regular paid access @ $1,000.00 per usage, to the 500+/- name Property Portfolio exclusive and confidential Data Base, for direct mail campaigns. A final point here. Present (6/4/2013) NCC membership numbers only 84+/- direct, dues – paying individuals/firms. Start supplying the above – referenced ‘products & services’, so LLLCommunity owners/operators no longer rely on a ‘for profit’ firm outside the institute, and they (new direct, dues – paying member) will come! Frankly, 500+ new NCC members is achievable, given the 500+/- present day property portfolio owners/operators, and 50,000+/- LLLCommunities nationwide. And, at a minimum membership fee of $500.00 per firm, that’s a jump in $250,000 dues income for MHI/NCC! And that’s not chump change!

• NCC expansion potentially reduces influence of, and control by, the home manufacturing segment of the industry. Now that’s almost laughable. But know what? The answer to this objection is simple: ‘So what?’ If filling an estimated 250,000 vacant rental homesites, in 50,000+/- LLLCommunities nationwide is ‘Where the action is today’, then by all means put the unique, income – producing property type center stage! After all, the more new HUD – Code homes LLLCommunity owners/operators sell, and often self – finance on – site, during the months and years ahead, the more new HUD – Code homes get built and shipped – especially when they’re Community Series Homes or CSH Models. What better way to break our five year bondage to ‘ a nadir of only 50,000+/- new homes shipped per year’?

BOTTOM LINE? There needs to be a Major Attitude Adjustment, on the part of elected and salaried leaders at the highest level of the HUD – Code manufactured housing industry, and the sooner the better – lest we hasten its’ demise (Due to too few new home shipments for far too long)!), and eventual diminution of the LLLCommunity real estate asset class as well! Manifestation of said ‘Attitude Adjustment’ must be in terms of the following five (summary) reasons or parameters:

NCC division could and should become ‘all things to all owners/operators of LLCommunities, of all sizes, nationwide’, and no longer function just as an Advocate for the realty asset class; but, in reality, become its’ Three Legged Stool of 1) national Advocacy, 2) statistical Research, & 3) ongoing Resource servicing, via an array of proprietary products and services! After two decades, it’s high time for a major change.

There must be an evening – out of attention paid to other segments of the HUD – Code manufactured housing industry, and less focus on just the ‘Big Three C’ firms; unless of course, we/they agree on this collective focus: ‘What will it take to sell many more new homes?’! This timely focus suggests more than a nod to National Image Improvement via Effective Brand Marketing. Are we there yet? Not by a long shot. And we won’t be until manufacturers stop being more concerned about ‘tag along benefits garnered by non – participating firms’, than tangible results realized from a National Image Improvement (campaign) via Effective Brand Marketing!

NCC will assuredly need more staff and subcontractor support to well serve the Advocacy, Research, & Resources needs of LLLCommunity owners/operators, of all sizes, nationwide. And know what? In addition to the existing NCC staff member, there’s a MHIndustry – experienced, skilled wordsmith; a savvy state MHAssociation executive; and, a LLLCommunity knowledgeable Certified Property Manager® – (No, not me) – waiting to be recruited, to grow this team! What’re we waiting for?

If handled properly, money will not be an issue, where the NCC division is concerned. This change is not like creating new business models to serve new needs and wants; rather, it’s simply the conversion of already successful ‘for profit’ centers into a ‘not for profit’ Advocacy, Research & Resource presence! And know what? If handled properly, there’s likely seed money, akin to venture capital, that might be had to get this whole project up and running.

The two most difficult (attitude) adjustments anticipated, in this scenario and by this industry pundit, will be for 1) the manufactured housing industry segment being willing to work closely with, but not taking a backseat to, promoting new home sales in LLLCommunities nationwide! And 2) the LLLCommunity segment being willing to transform itself, via professional property management training and certification, as well, during 2014. And, while not an Attitude Adjustment per se, the creation of a viable secondary market for HUD – Code manufactured homes is indeed another shortcoming that, somewhere along the line, will have to be addressed and established.

Hmm. These five parameters read something like an election platform don’t they?
Well maybe they should be…

In any event, given the ability to decide, effect major Attitude Adjustment, and exercise fortitude in addressing the Five Reasons just cited and summarized, there’s Strong Possibility for Success, launching ‘A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes’ within the Manufactured Housing Institute’s NCC division – rather than force the eventual spawning of one outside and beyond the institute’s purview.

So, where do matters go from here? Responsibility rests with elected and salaried leaders presently in control of such matters on the national Advocacy level. But are they listening? Do they believe? And, what, if anything, will they do between now and their meetings this Fall (2013), to bring all this about – or NOT?

As usual, if you’d like to weigh in on this timely and critical topic, please do so via email or call the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***
End Notes.

1. Quoted from blog # 248, posted at community-investor.com

***

George Allen, CPM & MHM
(317) 346-7156

Blog # 248 Copyright 2013 2 June 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’
&
Purpose. ‘A primary research, resources, & op/ed communication means for land lease lifestyle community owners/operators nationwide, plus, national advocacy awareness.’

I.

A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes!

II.

Triple Threat to the Manufactured Housing Industry

***

I.

A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes!

Melding National ADVOCACY, Statistical RESEARCH, & Ongoing RESOURCE Servicing for LLLCommunity Owners/Operators Nationwide

You should be reading about this Grand Plan in Community Connections Newsletter. After all, the periodic communiqué ‘is the voice’ of the Manufactured Housing Institute’s, National Communities Council division. However, like MHI – which promotes only its’ events (e.g. Annual meeting @ 29 September – 1 October & NCC’s Fall Leadership Forum @ 16 – 18 October, leaving one to wonder, ‘why’ six other MHIndustry & LLLCommunity national and mega – regional events, occurring during the same time frame, are ignored) – the bimonthly newsletter rarely plows new ground, apparently preferring to preserve only its’ national Advocacy focus.

So, let’s describe the Grand Plan in the following paragraphs. For some, if not many, this is trade talk couched in terms of land lease lifestyle communities entering a whole New Era. Maybe so, maybe not. Depends on the aspirations and actions of property owners/operators, of all sizes, from all geographic regions of the U.S., and whether they’re MHI/NCC direct, dues – paying members, or not, or in search of something new, more and different. What follows here, in other words, is What Could Well Become How 50,000+/- LLLCommunties Come to be Represented and Served During the Years and Decades Ahead!

First a little history. It took more than 40 years of ‘little to no national advocacy representation’ and emerging ‘investment interest – per coming REIT wave – on the part of Wall Street’, to bring 19 (then) manufactured home community owners/operators together, in Indianapolis, IN., on 31 August 1993, for a Strategic Planning Meeting. There, and during subsequent meetings around the U.S., they ‘took collective (national advocacy) control of their future’! And 2 ½ years later, their ad hoc Industry Steering Committee was absorbed by MHI, to launch the National Communities Council (later, a full – fledge division) on 1 January 1996. Now, after 20 years, a half dozen staff executives, and one leaderless year, we’re today – still kinda stuck in first gear, as national Advocate for the real estate asset class. And as a related aside, 13 of the original 19 owners/operators are still active in the MHBusiness or have retired, one is deceased, and five have, evidently, moved onto other business interests.

Now for that Grand Plan to usher in a New Era for land lease lifestyle communities of all sizes – and their owners/operators nationwide! With strong and progressive leadership, we should be able to meld, within or without the present NCC structure, 1) present day national Advocacy, with 2) existing statistical Research and reporting, as well as 3) a plethora of print and online communication media, professional property management education and certification, regular interpersonal networking, and realty deal – making services, all existent on the ‘for profit’ side of the business.

Specifically, the Grand Plan is comprised of the following key parts:

• National ADVOCACY. Personnel and organization already in place ‘across the Potomac River’, from our nation’s capitol. No changes anticipated there.

• Statistical RESEARCH and reporting. Again, already existent (for the past 24 years), and easily transitioned to the Center for Manufactured Housing Studies or CMHS, if and when principals sit down and work out the details. This goes far beyond the ALLEN REPORT (a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators from Throughout North America!’), and includes annual updates to the National Registry of Realty Lenders (now includes chattel finance sources), as well as directories of freelance consultants, trade media, industry associations; for a total of 12 Signature Series Resource Documents.

• Print & online COMMUNICATION media. This is almost a ‘no brainer’. In the three Words of the oft referenced Success Formula, there’s a very Capable, industry Experienced, highly Motivated wordsmith ‘waiting in the wings for a curtain call’, so to speak, to continue and improve on the print (two subscriber – supported monthly business newsletters) and online communication media already in place! (And we’re not talking about me)

• Professional Property Management EDUCATION & CERTIFICATION. Once again, the Manufactured Housing Manager® program, is already ‘up and running’, with nearly 1,000 MHM®s owning and operating LLLCommunities throughout the U.S. and Canada. And frankly, there are ‘more than enough’ Certified Property Manager® members of the prestigious Institute of Property Management® (nearly 200), active in the realty asset class today, to easily staff and teach this one day program in – house for property portfolio firms, when hosted by state MHAssociations, even via the correspondence course alternative.

• Regular interpersonal NETWORKING opportunities too, already exist. There’s a one day Forum in the Spring of every year, followed by a 2 ½ day Roundtable in the Fall, plus periodic FOCUS Groups comprised of LLLCommunity ‘owners only’, who meet on – site in property clubhouses, to openly – but – confidentially discuss topics of their choosing. And again, there’s staff already in place to consolidate and plan these ongoing events.

• Realty DEAL – MAKING OPPORTUNITIES. While a function of interpersonal networking, the annual Investor Symposium planned and hosted by one of the nation’s top real estate brokerages, sets the stage and launches the momentum that, reportedly, accounts for ¼ to 1/3 of the LLLCommunity ‘deals’ that take place during the following 12 months. Again, a function already in place and easily continued, under the right leadership. And don’t forget, there’s an exclusive, confidential data base, comprised of 500+/- portfolio owners/operators that’s exercised almost every month, at $1,000.00/access, for direct mail campaigns starting and growing, or marketing LLLCommunity portfolios – already in place!

So, there you have the key parts of this Grand Plan to usher in a New Era for land lease lifestyle community owners/operators, of all sizes, nationwide. Now, how do we get this melding ‘off the ground’, ‘up and running’, ‘benefitting all of us’?

I see it happening in three steps over a six to 12 month period. First, there has to be a change in attitude or faces, among elected and salaried MHIndustry leaders on the national scene. At present, there does not appear to be any interest in bringing together ADCOCACY, RESEARCH, & RESOURCES (to include communication, education/certification, networking, and deal – making) from outside their immediate sphere of influence – which at present appears to be dominated by a few large property portfolio ‘players’. How so? During the past two years, the three informal reasons I’ve been given are: 1) ‘Coming together’ (i.e. Grand Plan) will be too much work; 2) puts too much emphasis on one segment of the MHIndustry; and, well, 3) ‘We just can’t afford to do it right now.” My rejoinders? 1) You’re right, it will be too much work for one staff person, so subcontract out the Research and MHM® training, and hire that savvy staff writer. 2) So what? If LLLCommunities are ‘where the action is right now’, with their estimated 250,000 vacant rental homesites to fill – then showcase them! And 3) The ‘more you offer, the more members – and their membership dollars, you’ll attract’! Plus, and this is important, the newsletters, formal networking events, MHM® program, and aforementioned exclusive/confidential 500+/- name data base, are not just self – sustaining, they’re all significant ‘money makers’! And so would be the ALLEN REPORT if not used as a ‘loss leader’ when selling subscriptions to the Allen Letter professional journal. Now what’re the excuses for moving ahead with a Grand Plan? This is why there has to be a major change in attitude or change in leadership ‘at the top’.

The second step – not necessarily sequentially, will be to sit the new leaders, or old leaders with enlightened attitudes, down with two dozen land lease lifestyle community owners/operators (a.k.a. LLLCommunity Pioneers) who’ve been meeting, off and on, during the past two years, to help craft a Grand Plan to usher in an exciting New Era in Advocacy, Research, Resources for their unique, income – producing property type! That’s where the ‘devil in the details’ part of this melding will likely come about – when such a meeting occurs, hopefully yet this year! Are our elected and salaried leaders listening?

The third step – and likely sequential, following the above – referenced meeting, will likely involve me spending part time (over three to six months) at whatever central location is identified where the Grand Plan will commence and take shape. Frankly, and maybe this is because we’ve carried this Research & Resources load for 33 years, I envision the New Era being ushered in at the behest, and with the efforts of, three key individuals, all knowledgeable and passionate about the LLLCommunity asset class: an administrator/coordinator, an excellent and very busy wordsmith, and someone handling the details of maintaining the data base, updating the half dozen directories, effecting meeting planning details, and staying in touch with subcontracted researchers and MHM® trainers.

Well, there it is, a Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of all sizes. Is that, as a LLLCommunity owner/operators, what you’d like to see on the national scene, ‘for thee and me’, going forward? Then YOU need to let your state MHAssociation, even national advocacy representatives know, and ask them to proceed with steps number one and two!

If you’d like to input me, regarding your thoughts, reactions, ideas, critique, etc., regarding this Grand Plan to bring about a New Era for our property type, of all sizes, nationwide, reach me via the Official MHIndustry HOTLINE: (877)MFD-HSNG or 633.4764. Looking forward to hearing from you. Even more so, I await a call from the national advocacy people who can make this happen – if they truly want to do so. GFA

***

II.

Triple Threat to the Manufactured Housing Industry

REMINDER. This timely threefold topic, of national importance, has been hinted at for weeks, and was described – but – not – fully parsed in last week’s blog posting at this website (Go ahead, scroll back thru the blog archive and bring yourself up to speed). The Triple Threat will covered in detail on 13 June 2013, at a luncheon meeting of the Illinois Manufactured Housing Association, in Urbana, IL., And it’ll be summarized in the July issue of the Allen CONFIDENTIAL! business newsletter, as well as August issue of the Allen Letter professional journal. If need be, it’ll be one of the prime topics of conversation at the Friday afternoon Open Discussion concluding the 22nd International Networking Roundtable in Bloomingdale, IL.

As you’ll likely recall, This Triple Threat to the MHIndustry, has to do with

• the faux shortage of chattel (personal property) capital, via independent third party lenders, to finance home transactions within land lease lifestyle communities….

• Uniform Law Commission’s (July 2012) Uniform Manufactured Housing Act, denigrating ‘vehicle titles’ for (eventually all) manufactured homes, as a means to secure new sources of less risky home finance capital. Tax consequences?

• Covert efforts to supplant HUD as federal regulator of what we know today as HUD – Code manufactured housing, in lieu of ‘another regulator’, one likely with its’ own (assuredly NOT ‘affordable housing’) lobbying agenda in hand.

With that said, one of the faithful readers and responders to this five year private blogging undertaking, offered this meaty commentary to last week’s posting:

“I THINK IT IS WONDERFUL… (for the manufactured housing industry)… “to acknowledge our paradigm has already shifted, and it is time to plan for tomorrow instead of letting government decide for us. Keep it up sir, we need to let go of yesterday!” (emphasis added. GFA)

Assuming for the moment our writer is correct, about the ‘cattle having already left the barn’, presumably for greener pastures (i.e. ‘no more chattel $ for the MHIndustry’, ‘no more vehicle titles for manufactured homes’, & ‘no more HUD overseeing the MHIndustry’), IS and WILL this threefold paradigm change be GOOD or BAD for the Business Model by which many of us live and work today? ME? I’m not sure I agree, in the first instance, with the writer’s posit. I darn sure hope there’s more Title I capital out there that’s more readily accessible to our prospective homebuyers/site lessees. Furthermore; where does housing ‘affordability’ go, when LLLCommunity site lessees (homeowners) pay taxes on their homes as realty? And ol HUD? I’m not a fan of their ‘benign neglect’ (i.e. ‘not promoting’) of manufactured housing as this nation’s premier source of nonsubsidized, affordable housing – all the while they’re enforcing the HUD building code where the housing product is concerned.

YES, all this warrants and deserves further thought….By the way, if you want to ‘get into’ this Triple Threat to the MHIndustry firsthand, phone (217) 528-3423 to register! I’ll be pleased to see you there, and engaged in this timely and critical discussion of our industry’s very future!

***

George Allen, CPM®Emeritus, MHM®Master
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156