George Allen « George Allen / EducateMHC Blog

October 28, 2012

Diff Tween Large & Small LLLCommunities; & Did YOU Realize?

Filed under: Uncategorized — George Allen @ 4:02 am

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

Getting It Out Into the Open! Some Differences Between Small & Large Owners/operators of Land Lease Lifestyle Communities…

II.

‘A Lesson in Growing & Caring for One’s Reputation’, from Management 101, for Land Lease Lifestyle Community Owners, Property Management Executives, Regional & On – site Managers & Others!

III.

DID YOU REALIZE?

IV.

Initial Blog Reader Responses to ‘A Lesson in Handling Interpersonal Conflict’, from Management 101 for LLLCommunity Owners, Property Management Executives, Regional & On – site Managers & Others!

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Getting It Out Into the Open! Some Differences Between Small & Large Owners/operators of Land Lease Lifestyle Communities….

First the numbers. It’s estimated there’re 50,000+/- land lease lifestyle communities in the U.S. Of these, 85% are income – producing properties with 100 and fewer rental homesites or sites. In Sunbelt states, the percentage is closer to 78. So, maybe 42,500+/- ‘smaller’ LLLCommunities in play.

The remaining 7,500+/- land lease lifestyle communities, containing 100+ sites apiece, have for the most part, been consolidated during the past 25 years, into 500+/- property portfolios. According to the 23rd ALLEN REPORT, these portfolios contain an average of 27+/- properties (X) 500+/- portfolios = 13,500+/- LLLCommunities of all sizes. Subtracting 13,500+/- from the estimated 50,000+/- base, leaves 36,500+/- ‘smaller’ LLLCommunities not yet – if ever, to be absorbed into existing or future property portfolios, defined as ‘entities owning and or fee – managing a minimum of five LLLCommunities and or 500+ rental homesites’. The difference between 42,500+/- ‘smaller’ LLLCommunities cited in the opening paragraph, and 36,500+/- here, is likely due to some, if not many, portfolios having acquired ‘smaller’ properties over time.

Off and on, during the past couple decades, an informal debate has ‘waxed and waned’, relative to differences in characteristics, foci, objectives, policies and procedures, where ‘large’ versus ‘smaller’ land lease lifestyle communities and property portfolios, and their owners/operators, are concerned. Here’re some of the obvious, but rarely talked about differences:

• Land lease lifestyle community consolidation, during the past 20 years – via limited partnership syndications of the 1980s (Until the federal tax law changed in 1986); a second wave of REIT formations during the mid – 1990s; and now, the presence of equity funds, have frequently, and at times negatively, affected state MHAssociation membership rolls, as well as participation in training and meetings. Formerly, Mom & Pop – sized and owned properties were often active and involved dues – paying members of state trade/advocacy bodies. However, once absorbed into a property portfolio, only the corporate entity – in most cases, contributes to just one association membership, and not a separate membership for each LLLCommunity. And these corporate entities (i.e. property portfolios) generally participate in statewide advocacy matters only when troublesome, potentially intrusive issues, usually landlord – tenant legislation – related, appear on the business horizon. There are, of course, exceptions to both trends in some states and local housing markets.

• Some large land lease lifestyle community portfolio owners/operators, when maintaining physical occupancy of rental homesites becomes an issue, ‘raid’ like properties in the same local housing market. One recent flyer sent to this industry observer boldly states: ‘Relocate Your Home to _______________ & We’ll Move Your Home for FREE, & Charge You Site Rent at $99.00/month for Three Years! Call ___________’ And this is occurring in a market where the average area site rent is around $400.00 per month. What’s a competitor or ‘smaller’ LLLCommunity to do? Raid back, if able. Otherwise, enlist assistance and support of like members in the state MHAssociation; however, if the raider isn’t an active member, expect the plea or argument to maybe fall on deaf ears.

• Some larger land lease lifestyle community portfolio owners/operators are under constant pressure, from investment analysts, to not only exhibit consistent property profitability, but ensure its’ increase – like a growth stock, from reporting period to reporting period. This pernicious pressure has, at times, led to rental homesite rates raised out of sync with other forms of rental multihousing in the same local housing market. An extreme manifestation of such pressure has led to property portfolio owners/operators, whose site rent is $100+/- above the local housing market’s average site rent rate, to all but give away resale homes already on – site (e.g. bought cheap from ‘don’t want it sellers’, abandoned and otherwise) to would be ‘homebuyers’ willing to commit to pay long term inflated homesite lease payments. Smaller LLLCommunities are not generally caught up in this ultimately self – destructive cycle.

• Given their inherent enhanced economy of scale (i.e. A 200 site land lease lifestyle community ‘well managed’, can experience an Operating Expense Ratio or OER, half that of a 100 site property), LLLCommunity portfolios generally have more internal resources (e.g. capital, equipment, staff), with which to address challenging developments and trends affecting the asset class’ day to day business. A current one being, variably restricted access to third party chattel home financing, leading to use of different self – financing mechanisms, such as ‘contract sales’, ‘carrying paper’, ‘captive finance’, lease option, and most recently, unit leasehold agreements on new and resale homes on – site. But do these larger firms routinely share their homegrown expertise, forms, Lessons Learned, and access, with their peers, large and small?

• Small (one property owner) to mid – sized, privately – owned property portfolios, for the most part, continue to operate in local housing markets, as traditional land lease lifestyle communities. How so? Being content with collecting fair site rent, and not much more; being ‘afraid & inexperienced’, as to how to actually buy new homes (absorbing ‘value depreciation’ in the process); filling vacant homesites themselves – having relied, during past decades, on local independent ‘street’ MHRetailers, who’re no longer in business; and now, unsure how to self – finance compliant transactions in the present financial regulatory imbroglio. And who will teach them how to ‘buy’, ‘sell’ & ‘finance’ their new and resale homes? That is the big unanswered question of today. It’s also the question the SECO organizers will pointedly address at their event this Spring in Atlanta, GA.

The list goes on. There remain several more characteristics that, unfortunately, seem to routinely separate the small from the big ‘players’ in the contemporary land lease lifestyle community realty asset class. What ‘differences’ dismay, confuse, frustrate, even anger you? Let me know via GFA c/o Box # 47024, Indpls, IN. 46247, this web site (community-investor.com) or (317) 346-7156.

II.

A Lesson in Growing & Caring for One’s Reputation, from ‘Management 101’, for Land Lease Lifestyle Community Owners, Property Management Executives, Regional & On – site Managers & Others!

“What people say behind your back is your standing in the community in which you live.” Edgar Watson Howe, quoted in The Forbes Book of Business Quotations. That’s especially true, even encouraging, when members of one’s (business) community knowing your good and longstanding reputation, opt to believe in and stand by you, when it counts!

The preceding quote describes one of the first business lessons I learned 40 plus years ago, on my first civilian job after leaving the U.S. Marine Corps, following a combat tour in the Republic of Vietnam. I’ve related the story before, in the published short story, ‘Got Rep?’ The gist of that tale is, I was a lumberyard supervisor responsible for a rough, mostly minority, work crew. After two years on the job, I was promoted and transferred to the Midwest. Then…

During an after hours farewell party with my crew, I learned the real ‘secret to my supervisory success’. It had to do with a false reputation of me being ‘a handy Marine with a blade’ in Vietnam. Turned out that a crew member had been in the U.S. Army, in the same region of RVN, at the same time as me. In an effort to enhance his own rep and standing among our co – workers, he concocted a hand – to – hand combat tale about me; in effect, warning others not to unduly aggravate either of us. While I benefited from the residual effects of the tall tale, it certainly wasn’t the leader rep I coveted. A free copy of the short story is available by phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Now for the comment accompanying the above quotation. Business reputations are indeed built over time, generally the result of personal, corporate, and social performance, good and bad. And reputations can certainly be sullied more quickly than earned. But there can also be an upside – one I’m relearning and appreciating today! Given a good reputation, especially one built during many years of service to one’s peers, it can be difficult – if – not – impossible, for an interloper, a faux friend, or anyone else, to effectively besmear it! And that’s a good and comforting thing.

For example; having been inducted into the RV/MH Heritage Foundation’s Hall of Fame, named MHI’s ‘Industry Person of the Year’ in 2008, and granted Emeritus status as a Certified Property Manager®, along with other reputation confirmations, recent whispered efforts by a particular low life have fallen on deaf ears, as the tale spinner attempted, unsuccessfully I’m told, to turn at least one national association executive against me, in an attempt to smear my good reputation. He/she failed.

So, how does one defend against such actions? Sometimes you can’t and don’t; especially when one doesn’t know about the matter. But given a ‘good rep’, it can say more (positive) about you, when not striking back, in anger or otherwise; letting the offending party run off at the mouth, and in effect, damaging their own reputation, as listeners reflect: “Hmm. If he/she says this about him, what will he/she say about me?”

III.

DID YOU REALIZE?

When the year 2013 rolls around, where matters of national manufactured housing advocacy are concerned, our industry will be led and represented by two DGs:

DG (Don Glisson, Jr.) at MHI

DG (Danny Ghorbani) at MHARR

The point? There is none, at least none that anyone will take seriously, even though they should. Huh? MHI, for the most part begins the New Year with New Leadership in virtually every position (e.g. Dick Jennison as president & CEO; Jenny Hodge as executive vice president of the NCC division, et. al.). And MHARR? Long and rightly acknowledged as the ‘watchdog of the manufactured housing industry’, be alert to something of ‘paradigm shift’ import to materialize, from this national advocacy body, early during 2013. Hint? A takeoff on the old riddle: ‘What’s black and white and (intended to be) read all over?’ No, not a ‘newspaper’, in this instance, but close….

IV.

OK, here’re two of several written responses to last week’s blog posting:

“Conflict facing is difficult for many, but when tried as you lay it out, it becomes an everyday benefit of a relationship. Good for you, sir.” NB

“…use my credo: ‘If someone is giving you trouble for no apparent reason; give the SOB a reason!’ “ BB

Just goes to show you, there’s generally more than one way folk deal with difficult situations.

***

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

Comments (0)

October 21, 2012

Interpersonal Conflict Avoidance & Unique Opportunity to Input…

Filed under: Uncategorized — George Allen @ 4:16 am

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

A Lesson in Handling Interpersonal Conflict, from ‘Management 101’, for Land Lease Lifestyle Community Owners, Property Management Executives, Regional & On – site Managers, & Others!

II.

REMINDER: A Unique, Once in Two Decades Opportunity for YOU to Provide Valuable Input to an Author (Not me!) Who Is Researching & Writing the First Definitive Book on Factory – built Housing in General, HUD – Code Manufactured Housing in Particular. How Could YOU Not Want to Participate?

III.

Coming Soon & During the Year 2013: Super Symposiums in States Where They Haven’t Been Held Before; at Least Two New HUD – Code Home Shows, with at least one Featuring Community Series Homes or CSH Models; several one day Manufactured Housing Manager® Classes; and, New, Not for Profit Research & Resource Entities to Serve Land Lease Lifestyle Community (‘LLLCommunity’) Owners & Operators Throughout the U.S. & Canada!

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A Lesson in Handling Interpersonal Conflict, from ‘Management 101’, for Land Lease Lifestyle Community Owners, Property Management Executives, Regional & On – site Managers, & Others!

Here’s how to quickly – if not soon redressed, lose a friend, offend a customer (e.g. land lease lifestyle community resident) or long time colleague; and, severely damage one’s leadership reputation among fellow businessmen and women. Without warning….

• Openly criticize one or more of these individuals by name, in a public forum

• Read from a list of alleged offenses, but don’t share those notes when asked

• Don’t allow opportunity for rebuttal or defense, on the part of the criticized party

• And worst of all, do not apologize for one’s heavy – handed, cowardly actions

It’s unlikely all four travesties will occur during one interpersonal conflict scenario; but taken together, they paint a clear picture of how not to function as a mature business leader.

So, what’s the correct way to handle sensitive, and at times critical matters, of this nature? Well, there’re several time – honed guidelines, that capable, experienced, motivated leaders of men and women, have practiced over the years. They include:

• ‘Praise in Public, Criticize in Private!’ Then, related to this sage advice, apply the…

• Golden Rule: ‘Do unto others as you would have them do unto you!’ Oh, it’s difficult sometimes, to recall, let alone apply, this apt wisdom during the heat of anger and passion of the moment. But STOP and ponder this: ‘How would YOU feel, if someone, without warning, criticized YOU in public – in front of mutual peers and friends, then gave YOU no opportunity to explain or defend yourself?’

• Then there’s the HEAT acronym, used by generations of professional property managers, when dealing with angry residents, even arguments between residents – when they can’t be avoided. HEAT goes like this. First; get everyone to sit down, eliminating ‘flight & fight’ options. Then; H = Hear both sides of the story! E = Empathize with the offended party; attempting to understand his/her perspective on the issue(s) at hand. A = Apologize, if appropriate; and finally, T = Take appropriate action! But also heed this WARNING! If one gets the acronym backwards – as many do, ‘Taking Action’, before executing the key ‘H’ & ‘E’ steps, he/she will find the Apology step, doubly appropriate and painful!

So, there you have it, How Interpersonal Conflicts, especially in business environs, Should Be Handled. In summary: Do so in private, in fairness, in balance, and in preservation of one’s present and future personal and business relationships! Anything less is a clear sign of ignorance, immaturity, and insensitivity.

Next week’s lesson from ‘Management 101’? Pick a topic and let me know where we should go next….

II.

REMINDER: A Unique, Once in Two Decades Opportunity for YOU to Provide Valuable Input to an Author (Not me!) Who Is Researching & Writing the First Definitive Book about Factory – built Housing in General, HUD – Code Manufactured Housing in Particular. How Could YOU Not Want to Participate?

That’s right! Not since Allan Wallis’ Wheel Estates: History of the Manufactured Housing Industry, published in 1991, have we had an academic or author – with – credible – manufactured – housing – experience, launch a project ostensibly relating our nation’s ‘State of (too expensive) Housing’ to the quality, affordable, transportable, non – subsidized housing alternative represented by HUD – Code manufactured housing and, to a lesser extent, its’ land lease lifestyle community component.

Last week’s blog posting featured three paragraphs describing the author’s present ‘take’ on this timely, large subject. Suggest you scroll back into the blog archive at this web site and reread that material. Then, if YOU believe YOU have valuable input for the author, put an outline or summary manuscript together and mail it to me via GFA c/o Box # 47024, Indianapolis, IN. 46247; or via GFA7156@aol.com; or FAX it to me at (317) 346-7158. If you’d like to discuss the matter further, with me, before spending time on preparation, etc., phone me via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

III.

This paragraph will by shy on details, as most of the title events are in planning stages, even as to dates and symposium, show, and class venues.

• Watch for Super or Power Symposiums to pop up in at least New York, Georgia, Indiana, and quite possibly Virginia.
• New Home Shows, featuring HUD – Code homes in general and Community Series Homes in particular? Look for these in Georgia, and possibly Tennessee – or wherever the 22nd International Networking Roundtable is held during 2013.
• Manufactured Housing Manager® professional property manager training and certification classes are already scheduled for Oklahoma (late February) and Indiana, with more anticipated elsewhere. Interested in earning your MHM® designation? Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
• Center for Manufactured Housing Studies or CMHS is already in place in Athens, OH. Expect to read more about its’ work during 2013. And, it’s become clear, the only way I’ll be able to eventually exit the LLLCommunity ‘resource – servicing’ business, to semi – retire, will be if a new, national, not for profit entity is birthed, to serve our asset class’ education (MHM® program), communication (newsletters & this blog), networking (Networking Roundtable & FOCUS Groups), research (in conjunction with aforementioned CMHS), and deal – making needs, from sole proprietor – owned properties up through the largest of portfolio ‘players’. There’s already a group of a dozen or more LLLCommunity owners in place, to bring that historic development to fruition. Interested in helping? Let me know via (317) 346-7156.

So, is that enough excitement with which to greet the New Year? It certainly is for this industry observer. My only hope, relative to those events, is that our national manufactured housing advocacy bodies would finally ‘get on board’, and actively encourage and support all the above – referenced events, even when they don’t have a direct role in planning and facilitating them.

***
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

Comments (0)

October 11, 2012

San Antonio Contretemps cum Recommitment

Filed under: Uncategorized — George Allen @ 4:38 am

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

Some News & Views Out of San Antonio, TX.

II.

Want to Contribute? Not $. Something more valuable; your input!

III.

Power Symposium, in Indianapolis, IN. @ 18 October 2012

IV.

Get Certified as an MHM® & Buy New MHomes the Same Week!

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Some News & Views Outa San Antonio, TX.

No ‘hoped for’ rebranding of HUD – Code manufactured housing. No revisiting of the Community Attributes System or CAS, requested a year ago! No written goals or priorities published for the year ahead, where land lease lifestyle communities are concerned. And frankly, no more participants overall, than at like meetings, during the past three; no, make that four, years running.

But there was motivation to continue rebranding ‘land lease lifestyle communities’! And there were off – agenda conversations about revisiting the ABClassification System for rating LLLCommunities, per A, B, C, & D grades, instead of 5, 4, 3, 2, & 1 STAR quality – a suggestion from the 21st annual Networking Roundtable in San Diego, CA., proffered by Dick Bessire of Bessire & Casenhiser. During Monday’s meeting, there was obvious recognition, on my part, it’s time for Community-Investor, a.k.a. GFA Management, Inc., dba PMN Publishing, to renew its’ 30+ year commitment to (continue to) be the realty asset class’ primary, ongoing source for Research & ‘comprehensive Resource servicing’ nationwide!

And finally; a sincere personal Thank You to individuals who’ve privately expressed support and embarrassment to Carolyn and me, during and since our visit to San Antonio, TX. It’s encouraging to see friendship and respect trump false claims disguised as PC, and not be given opportunity to rebut! GFA

II.

Want to Contribute? Not $. Something more valuable; your input!

A published business author, familiar with factory – built housing in general, and manufactured and modular housing types in particular, is conducting research, identifying factors that’ve precipitated our business model’s decade long new home shipment nadir; and what it’s likely going to take, during years ahead, for our industry to return to prosperity – measured by market share in the national housing market. He’d like confirming, contrary, and creative input on these matters, from thoughtful, industry – experienced individuals, willing to share their views and ideas.

Before I tell you how to get your input into his hands for review and consideration, here’re three perspective paragraphs I asked him to prepare; in effect, setting the stage for your views and ideas….

Housing in the U.S. today, is too expensive, and likely to become more so, because it depends upon well – developed, intentioned, and entrenched, but moribund processes and traditions. Many attempts have been effected to rectify this pattern, but only one has proven workable; that being, ‘manufactured housing’ . Unfortunately, this type housing has been denigrated over time, because it’s foreign to those above – referenced American home – building traditions; and also saddled with a bad image, due in part, to its’ ‘trailer’ heritage and stigma. This dual image issue continues, as communities and municipalities, maybe the entire nation, say they seek – but do not really like – ‘low cost housing’!

Furthermore, our nation has become increasingly service – oriented, because we’ve lost much of our manufacturing edge, having priced and out – sourced ourselves out of the market. That’s working OK, only because we can import most material stuff at competitive prices. But we cannot import housing, and until recently, its’ cost has increased faster than CPI.

This book will make that logical case and more. The hardest audience to convince, however, will be skeptics having a trailer mindset, i.e. ‘doing everything on the cheap’. Which in turn, raises the question: Where and how does ‘cheap’ end and ‘affordability’ begin? The real challenge, for everyone in the manufactured housing industry, is to be committed, in short and long runs, to work together at 1) improving the industry’s aforesaid image, while 2) reducing post – manufacturing service costs that eat up savings garnered by the manufacturing process. Both are difficult to accomplish. The first is decades long – entrenched. And few factory systems have successfully addressed on – site (customer service) challenges, many don’t try. One thing is for certain though; putting today’s reputation and profits ahead of customers’ perceptions and need for service, are two lanes on the highway to failure. (edited. GFA)

OK; are you ready to pen confirming and contrary responses, astute observations, and the like, to this author? If so, send a hard copy to GFA c/o Box # 47024, Indianapolis, IN. 46247, or fax it to me via (317) 346-7158. Anyone who does so, will receive advance notice of when this new manufactured housing – related book will be available for distribution. Hope to hear from YOU soon!

III.

Power Symposium, in Indianapolis, IN. @ 18 October 2012

What are the on – site, home sales transaction, property owner – financing options ‘in play’ these days in land lease lifestyle communities throughout the Midwest and beyond”?

What are the new and resale home finance state and federal regulatory compliance issues that MUST be known, in place, and routinely updated these days, in and out of land lease lifestyle communities?

Why it’s best to use trained and licensed installers when siting, or moving new and resale homes around and throughout your land lease lifestyle community?

All you’ve wanted to know, but didn’t know who to ask, about ‘hands – on, best property management practices’ pertaining to land lease lifestyle communities, where ‘100% rent collection is concerned; ensuring you – and your on – site home sales staff, don’t ‘sell more house than a customer can or realistically should buy’; and, Lessons Learned, such as ‘How good Resident Relations leads to more Resident Referrals means more Resident Retention!’ – and much more!

Get the idea? Just like the Super Symposiums before this one, the Indiana Manufactured Housing Association is ‘pulling out all the stops’, to host a day long training event for its’ members and guests from throughout the Midwest. Will YOU be there? I certainly plan to be!

To register, phone (317) 246-7258, X # 11, and tell Mark Bowersox that ‘Hey, George sent me!’ Seriously. Hotel? Special block of $93.00/night rooms set aside, at the Wyndham Hotel, for those who phone (317) 248-2481, and use code: Indiana Manufactured Housing Association.’

From an historical perspective, former IMHA/RVIC employee Jim Keller birthed the idea of Super Symposiums several years ago, right here in Indiana. Since that time, successful state MHAssociation – hosted Super Symposiums have occurred in Ohio, New York, several times in Atlanta, GA., and elsewhere, besides the annual ones facilitated in Indianapolis, IN. So, as we meet, once again, for – in this case – a Power Symposium, ‘give a nod’ to Jim, for getting us started down a path that’s helped many to not only Survive these difficult times, but actually begin to Prosper as well. Thanks Jim!

IV.

Get Certified as an MHM® & Buy New MHomes the Same Week!

Yes, I know 27 February, and 28 – 31 February are a ways out there, date wise; but there’re good reasons for teeing – you – up so far in advance:

First off; this will be the first Manufactured Housing Manager® professional property management training and certification class of the New Year, 2013! We expect this one day class, to be sold – out, with 25 or so MHM® candidates. So, don’t be left out, (800) 234 – 6426 to register, and ask for a brochure containing additional course information. We’ll be meeting in the Deer Room at the Hard Rock Casino & Hotel in Catoosa, OK.

FYI. To date, nearly 1,000 land lease lifestyle community owners and managers have been trained and certified as Manufactured Housing Managers® or MHMs®. Isn’t it time YOU joined their ranks? Furthermore, George Allen, CPM®Emeritus & MHM®Master has taught all the one day MHM® classes to date; and this is the only professional property management class in the U.S. today, taught by a LLLCommunity owner. And for the $250.00 cost ($350 for non – members of OMHA), MHM® candidates receive a copy of the text Landlease Community Management, a monograph of contemporary MHIndustry ‘readings’, gold MHM® lapel pin, and MHM® certificate. Finally; there are NO TESTS.

Also plan to ‘stay over’ and participate in the Great Southwest Home Show; where Trade Days will occur 28 February thru 1 March; and 2 & 3 March are reserved at Public Days. Show will be at the QuikTrip Center at Expo Square in Tulsa, OK. See YOU there? I hope so!

*****

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Aficionados Nationwide
Box # 47024, Indianapolis, IN. 46247
MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

Comments (0)

October 6, 2012

What’s a MHSherpa?

Filed under: Uncategorized — George Allen @ 4:19 am

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

Blog Readers’ Responses to Last Week’s Question: ‘MHIndustry Leaders! Where Will YOU Take US in 2013?’

II.

In Search of a MHSherpa, or maybe Guru, or probably Maven….

III.

The Symposium Movement Lives – on! In Indy @ 10/18/2012

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Blog Readers’ Responses to Last Week’s Question: ‘MHIndustry Leaders! Where Will YOU Take US in 2013?

Rarely have to wait long, when a weekly blog posting at community-investor.com, ‘touches a nerve’ with its’ readership. While not heavy in volume this past week, the nature of the responses has been weighty indeed. Here’re but two of them:

“Could we assume we, as an industry, are tip – toeing to the ‘tipping point’ of oblivion? I remain amazed and disappointed by our ‘leaders’.” NB. Well, here’s a coincidental postscript to that blog flogger’s (reader’s) question and comment:

One MHIndustry executive, enjoying salaried and elected positions of leadership, sees what I pen, as being

“…public attacks against MHI, and (the) public positions you take are counter to the industry’s interests….” The critic goes on to cite two examples from recent blog postings at the community-investor website:

• He/she says I’m “…asserting that (land lease lifestyle) community rents are too high.” My response? Yes, in some local housing markets, and possibly too low in others.

• He/she asserts I’m “…trying to create and apply generalizations for economic relationships, between land values and home/improvement values that fundamentally don’t exist.” Here the writer refers to the decades old 3:1 Rule of Thumb*1, regarding a supposed relationship between LLLCommunity monthly homesite rental rates, and the monthly rent amount for 3BR2B conventional apartment units in the same local housing market, assuming they’re weighted evenly regarding what’s included therein. Anyway, this particular Rule of Thumb has been in play since the mid – 1970s, and was NOT created by me.

Further response? Twofold. FIRST; there’s the old bromide, ‘Beware of generalities, as they’re generally as wrong as they are right!’ That’s apropos to both scenarios described above; as our industry, and asset class, is indeed ‘local housing market driven’. So again; Yes, in some cases LLLCommunity site rent might well be ‘too high’; in others, ‘too low’. Where the Rule of Thumb is concerned, it’s simply a self – applied tool to give one a preliminary ‘feel’ for multifamily rental property rates within a given local housing market. No more; no less. And SECOND? How ‘bout if you take a few minutes to let me know how YOU feel about both ‘issues’, relative to our realty asset class. See end of this blog posting for contact information.

And here’s yet another viewpoint expressed by a faithful blog flogger:

“It isn’t that would be homebuyers don’t ‘want’ the nicer houses (our HUD – Code manufacturers build), they simply can’t ‘afford’ the nicer ones! That’s why many of us land lease lifestyle community owners are remodeling used homes and ‘carrying the paper’, one way or another, to accommodate rent – to – own or lease option buyers, even those simply leasing the units. Here in the Midwest, when the home sale price nears $20,000, or goes slightly over that, we frequently have to hold the inventory for several months. Then, we get $1,000 or $1,500 down, or if we’re very lucky, $2,500. I try to ‘carry paper’ for no longer than five years, but with more expensive homes, we sometimes have to go out six or seven years, to make the payments fit the buyer’s budget. Here’s a new twist for you, illustrating how much of an entitlement society our society has become, thanks to the current national political climate. Some of our applicants now list ‘unemployment’ as their job! Then I have to explain that ‘unemployment’ is not a job. But that when they do have a ‘real job’, with a real paycheck, they should come back and reapply to buy a home from us.” SN (edited. GFA)

II.

In Search of a MHSherpa, or maybe Guru, or possibly Maven…

A wealth management group, in a recent ad, likened their financial expertise to that of a sherpa:

‘A knowledgeable, experienced guide that provides exceptional guidance and support when venturing into dangerous, unknown territory.”

Wow! Could we ever use one of those folk, a sherpa; better yet, a MHSherpa! Think about it! Someone who understands, lives and works the HUD – Code manufactured housing business, has it ‘in their blood’ (‘Ah, the attitude & motivation to succeed!’); and is capable of ‘leading’ (‘guiding’) us from ‘in front’ AMD ‘behind’ (support), into present day dangerous, once known – but now unknown, territory, purveying truly affordable housing to those living below their local housing market’s Area Median Income, but desiring to live in a place of their own, building equity along the way!

Or maybe we’re talking about needing a guru here; you know, a MHGuru! By definition…

‘…any person who counsels or advises, a mentor; a leader in a particular field.’

Hmm. That sounds familiar. I recall a number of faux MHGurus who’ve ‘come and gone’ over the years; no, make that dozens during the past three decades. While more than ‘flashes in the pan’ at the time, none hung around very long; often growing (their businesses) ‘far too big, far too fast’, before flaming out. For that matter, I don’t see many, if any, bona fide MHGurus on the manufactured housing business horizon, or even military crest (that’s the backside of a hilltop, where one enjoys a measure of cover and concealment from one’s enemy or opponent) these days! Just a few self – effacing ones, successful in their own right, but content (albeit ‘selfish’?) staying in the background, running their own companies, not particularly helping our industry and asset class at large, to survive and once again thrive. Any self – effacing MHGurus out there listening, and motivated to read this paragraph as a personal Call to Arms (Help)? Let’s hope so….

Or perhaps it’s simply a maven, a MHMaven, we seek. You know, someone who’s an expert (at what they do), a connoisseur of sorts: ‘one competent to pass critical judgments in an art (of homebuilding), or in matters of taste (curb appeal and resident relations)’, and ‘a discerning judge of the best in any field.’ Now there’s a place to start!

A MHSherpa or two together, to guide us into dangerous, unknown territory; assisted by one or more MHGurus with proven ability and experience – honed knowledge; whose progress is measured and judged by MHMavens with the best interests of the HUD – Code manufactured housing industry and land lease lifestyle community asset class in mind and practice! WOW, what a team, if we could just put it together – soon!

So, how do we find these individuals, ‘players’, entities? Well, something was penned, during the past few weeks of online blogging, about the Manufactured Housing Institute sponsoring a volunteer Blue Ribbon Task Force to, in some folks’ minds, ‘Save Our Industry!’ Since this national advocacy body is meeting in San Antonio during the next several days, let’s watch and see what might come out of those meetings of the various membership divisions, not the least of which being the National Communities Council division. Calling all MHSherpas; MHGurus; and, MHMavens!

III.

The Symposium Movement Lives – on! In Indy on 10/18/2012

Mark your calendars with the date 10/18/2012, then phone (317) 247-6258, extension # 11, and ask Mark Bowersox for details! All I know, for sure, is I plan to participate, as I did SECO, in Atlanta, GA., a couple months ago. And likewise, come away with some new ideas and helpful suggestions I can use in my businesses. See YOU there? Hope so….

*****
End Note:

1. 3:1 Rule of Thumb. Simply, it generally takes the rent collected from three rental homesites in a land lease lifestyle community to equal the rent collected from one 3BR2B conventional apartment or townhouse, in the same local housing market.

*****

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September 30, 2012

MHIndustry Leaders. Where taking us in 2013?

Filed under: Uncategorized — George Allen @ 4:22 am

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

MHIndustry Leaders! Where Will YOU Take Us in 2013?????

II.

An Exciting New Manufactured Housing Show Concept for HUD – Code Manufacturers & LLLCommunity Owners Nationwide!

***

MHIndustry Leaders! Where Will YOU Take Us in 2013?????

How’s the old bromide go? ‘Lead, Follow, or Get the Heck Out of the Way!’ Yep; that’s the one I think rightly sets the stage for the upcoming Manufactured Housing Institute annual meeting in San Antonio, TX., from 7 – 9 October 2012. Will YOU be attending? If you’re a direct, dues – paying member of MHI, and or its’ National Communities Council division, you should be! Carolyn and I certainly plan to be there. For information, phone Dick Jennison @ (703) 558-0678 or Jenny Hodge @ (703) 558-0666.

Why the push to participate? In our case, we’ve been hearing from manufactured housing aficionados and land lease lifestyle community owners/operators, across the U.S., and via the Allen Letter professional journal, that the HUD – Code manufactured housing industry has reached a ‘tipping point’. Not for the first time in our industry’s 60 year history, but certainly for the first time in awhile. Land lease lifestyle community folk, (then) manufactured home community ‘players’, experienced a tipping point on 2/27/2008, when the first National State of the Asset Class caucus (Since retitled as MHInitiative®) convened in Tampa, FL., and 100 owners/operators charted their collective business destiny via a Five Point Plan that’s still in place to this day! And a year later, 2/27/2009, another 100 MHIndustry & LLLCommunity owners convened for a one day NSAC caucus in Elkhart, IN.; this time around, to figure out ‘How to Sell More HUD – Code Homes into (then) Manufactured Home Communities!’ Now we’re looking at year 2013, coming up in a scant three months. The tipping point this time around?

– Either we finally and authoritatively seize control of our collective business present and future, relative to (affordable housing) Product, (home buying & site leasing) Prospects, and (increasingly regulated financial) Profit; OR, we continue to experience the 60 year shipment nadir endured these past ten years! – It’s as simple as that. Which will it be? A new & bold Plan, Rebranding or What?

Land lease lifestyle community owners/operators already lead the way, when it comes to flexibility and creativity; doing whatever it takes, to fill an estimated 250,000 vacant rental homesites nationwide! They’re buying and reselling, even self – financing (via contract sales, captive finance, & lease option), and lately even leasing, ‘repo’, new and resale manufactured homes, two story modular homes, ‘park model RVs’, RVs for a season, even stick – built homes fabricated on – site to mimic HUD – Code homes! And they’ve even gone a ‘big step further’, by rebranding their unique, income – producing property type as land lease lifestyle communities, or LLLCommunities, for short.

Some HUD – Code home manufacturers are attempting, at least in part, to follow their lead (i.e. Where’s today’s manufactured housing market? In land lease lifestyle communities where owners/operators market ‘affordable’ Community Series Homes or CSH models, to traditional markets of those ‘newly wed & nearly dead’, using whatever home finance models that work in their respective market, e.g. 21st Mortgage Corporation’s exciting C.A.S.H. Program, and others!), but they’ve a long long way to go. For example:

– HUD – Code home manufacturers have CSH model home designs in hand, but still exhibit ‘big box = big bucks’ Developer Series Homes in plant and regional home shows. Why? They build what they want, NOT what customers will buy!

– HUD – Code home manufacturers now invite land lease lifestyle community owners/operators to plant shows, to see and buy new product. But again; only 10 percent of the display homes are CSH models with durability enhancing features.

– A couple HUD – Code home manufacturers have prepared & distributed Position Papers, describing their firm’s view of contemporary MHIndustry trends, and how they’re addressing CSH model opportunities. Think Cavco & Champion. Others?

– At the 2nd NSAC caucus, 2/27/2009, nearly three dozen Business Development Managers or BDMs were named. How many are active today? Only a dozen, when there’re home sales opportunities for dozens, selling into LLLCommunities.

And there’re initiatives occurring within other segments of the MHIndustry. For example:

– Renewed interest in the 3:1 Rule of Thumb, designed to ensure land lease lifestyle community rental homesite rents are in sync with other forms of multifamily leased housing in the same local housing market. Specifically; it takes the monthly rent from three LLLCommunity sites to equal monthly rent generated by one large (3BR2B) apartment or town house in the same locale.

– Increasing commitment, on part of LLLCommunity owners/operators and independent chattel lenders, to NOT sell more house, to a prospective homebuyer, than they can afford. How to effect this? Ensure monthly PITI (principal, interest, taxes & insurance premium) AND household utility bills (gas, electric, water, sewer) are included in the 30% Housing Expense Factor

Back to the upcoming MHI annual meeting! What needs to be done to address the aforementioned ‘tipping points’ for the manufactured housing industry and land lease lifestyle community asset class? Well, it’s doubtful much progress will be made at just one meeting – especially since there’s been, as of 30 September, NO preparatory material distributed to members – not even a formal solicitation of agenda recommendations for various industry segment meetings, readying ‘us’ for heady discussions. So, heeding the suggestion made in blog posting # 211, on 9 September, our elected and salaried national leaders might consider forming an all volunteer (Not appointee!) Blue Ribbon Task Force, comprised of one or two dozen businessmen and women, from large and small firms, from throughout the U.S., and across industry segment lines, to identify and address our industry/asset class’ most troubling issues, e.g. lack of a secondary manufactured housing sales market, lack of chattel loan programs, lack of manufacturer interest in building affordable homes, ‘Just what is an affordable home?’, etc..

II.

An Exciting New Manufactured Housing Show Concept for HUD – Code Manufacturers & LLLCommunity Owners Nationwide!

Coming off the ‘biggest & best Networking Roundtable’ in 21 years; then two weeks later, being a guest at the ‘2012 Knoxville Showcase of (19 new HUD – Code units) Homes, Clayton County Fair’, has been something of a sensory overload. Perhaps those two stellar industry events combined to inspire this preliminary plan for the Fall of 2013…

At a hotel location yet to be decided, but maybe in Nashville, TN., or Detroit, MI., or – where would you like to see it held? Just remember; the resort hotel has to be within a half hour drive of a major international airport, able to accommodate more than 250 overnight guests, and have plenty of meeting space for that number.

The exciting new manufactured housing event for HUD – Code manufacturers and land lease lifestyle community owners/operators? How ‘bout this:

‘22nd Networking Roundtable & 1st Community Series Home Show!’

I don’t see much, if any change, to the 2 ½ day education, networking, and deal – making program we’ve honed these past 21 years. What I do envision, however, is a new CSH model home display, of one or two dozen new CSH model homes, located right outside the meeting room exit, that’ll be in place two days before the Networking Roundtable event actually begins, and heavily marketed to LLLCommunity owners/operators in local housing markets within 100 miles of the host meeting facility. And of course, Roundtable devotees would be encouraged to arrive at least a day early for that event, to spend time ‘walking (and ordering) the homes’. An added feature would be morning and afternoon seminars describing ‘How to Effectively Sell New Homes into Land Lease Lifestyle Communities’ &/or ‘How to Self – finance, Lease – option, and or Lease New Homes in Your LLLCommunity’. What do you think?

As I said earlier, these are all preliminary plans. But I’m serious about them, having already contacted a couple resort hotels with large parking (potential exhibit areas) adjacent to their meeting facilities. And if you have suggestions to make, to this end, let me know via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Some of you are probably reading this and thinking: ‘Hmm. Doesn’t read like a guy who’s trying or planning to semi – retire in the relatively near future.’ You’re right; but the way I look at it, why not get this ball rolling, to establish a new and exciting, expanded event (i.e. addition to the annual Networking Roundtable). Then, if it appears I’ll be handing the 22nd annual event off to someone else, I’ll still be around to assist; and if still no personal ‘exit strategy’ is in place by then; well, we’ll have another bang – up time together, like we just did in San Diego, CA.. Reads like a WIN – WIN opportunity for HUD Code home manufacturers and land lease lifestyle community folk either way! Are you on board?

***

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September 23, 2012

‘Book of Numbers’ debuts & NCC mtg. @ 10/8

Filed under: Uncategorized — George Allen @ 3:58 am

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

‘Book of Numbers’ debuts @ Networking Roundtable. Want a copy for your reference & use? Only $19.95 each

II.

Showdown or Business as Usual at MHI’s National Communities Council division Meeting on 8 October?

‘Book of Numbers’ debuts @ Networking Roundtable. Want a copy for your reference & use? Only $19.95 each.

‘Book of Formulae, Rules of Thumb, & Helpful Measures’, mostly for land lease lifestyle communities & HUD – Code manufactured housing, as well as commercial real estate investment, affordable housing, and realty – secured mortgage origination. Yep, that’s the long title for this 78 page ‘first ever’ compilation of most, if not all, the formulae, rules of thumb, and measures common to our realty asset class, housing type, investment environment, and mortgage scene. In addition, the Official MHIndustry & LLLCommunity Lexicon & Glossary have been appended to the text proper.

So, if you’d like to purchase one or more copy for your reference and use; or for that matter, all your on – site property managers, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Retail price is only $19.95 plus shipping cost. And a quantity discount is available for when purchasing 20 or more copies of this book at a time; with book price dropping to $10.00 per copy, plus bulk shipping cost. Already, 250 copies were distributed at the aforementioned Networking Roundtable, and more than six dozen since then, to property portfolio owners/operators wanting the ‘book of numbers’ in the hands of their regional and on – site property management staff. How ‘bout YOU?

II.

Showdown or Business as Usual at MHI’s National Communities Council division Meeting on 8 October in San Antonio, TX? ‘Come on down & meet Jenny Hodge!’

A year ago this coming February, at MHI’s annual Legislative Conference, when the National Communities Council division last met, members in attendance were assured the there’d be more done, by the NCC during 2012, to ‘reach out’ to small to mid – sized ‘players’ throughout the realty asset class in the U.S. However, that doesn’t seem to have been what’s happened – and probably for arguably good reason.

To begin with, the salaried executive assigned to oversee the NCC division at the time, went on maternity leave. Shortly thereafter, a firm founded by former MHI executive Bruce Savage, was contracted to function, in part, as the institute’s communications consultant, and interim oversight of the NCC division. Well just recently, former American Modern Insurance middle level executive, Jenny Hodge, was hired to head the NCC fulltime! This makes for three execs during the past 12 months; or looking back over the nearly 17 years of council presence, a total of six execs and a year or so leaderless hiatus, during that overall time frame.

So, ‘what’s the rub’ regarding small to mid – sized owners/operators and portfolios of land lease lifestyle communities in the U.S.? Well, an estimated 85 percent of 50,000+/- LLLCommunities contain 100 and fewer rental homesites apiece. So it stands to reason that ‘a’, if not ‘the’, prime focus of the NCC division, founded 1 January 1996, should be recruiting small to mid – sized owners of these properties. As it stands today, however, all elected offices of the NCC are held by salaried executives from three of the eight largest (As listed in the 23rd ALLEN REPORT) LLLCommunity portfolio owners/operators in North America. In and of itself, there’s nothing wrong with this ‘state of affairs’; BUT, what is being done to bring more small to mid – sized owners/operators of the unique, income – producing property type into the national advocacy fold? Interestingly, at the last NCC division meeting, of the dozen or so direct dues – paying members present, all but one or two of the non – officers present, were small to mid – sized property owners/operators. Know what? If the NCC division was truly active and engaged, relative to asset class issues and the like, there’d likely be double and triple that number of members present at these biannual meetings!

Earlier this year, an informal alternative slate of officers was drawn up and considered to run against the sitting elected NCC officers. Effective with the posting of this blog, that’s unlikely to happen, unless yet another group of NCC members decides to make such a push. Why the pulling back? Call it ‘one last chance’ for present elected NCC officers to get it right, especially now that an MHIndustry – experienced executive is on board who has the ability to ‘get things (finally) done’. But what happens if year 2013 turns out to be continued inaction’? Well, here’s a bit of irony that’ll become crystal clear more than half way through the year. For it was on 31 August 1993, 20 years ago, the Industry Steering Committee (predecessor to MHI’s NCC division) met in Indianapolis, IN., to lay the groundwork for a formal national advocacy presence that’d be needed a year or two later, when several large (then) manufactured home community portfolios would launch IPOs (‘initial public offerings’ of their stock) to become real estate investment trusts (REITs). As it turned out, the REITs materialized in 1994 & 1995, and the NCC was launched 1 January 1996.

Today, there’re but three REITs left, as three others have ‘come and gone’. Some or many of us believe the time has come for the NCC division to reinvent itself. Hence the reason for a push to attract and serve more of the ‘85 percenters’ (i.e. LLLCommunities numbering 100 and fewer rental homesites apiece), than we have in past years. In the meantime, back to a little more NCC history….

For the first several years, ‘there was a lot going on’, and a lot of enthusiasm, in and around the NCC – though not yet a full fledged division of MHI. We started and funded a property excellence recognition program, but for all practical purposes it ended. We tried to launch a new LLLCommunity quality rating system, to replace the Woodall STAR System that died in 1976, but it, the ABClassification system, was politicized, and is today, a private enterprise effort,

And as our housing finance bubble burst at the turn of the century, a full eight years before site – building followed suit, NCC momentum waned. Tri – annual meetings that attracted 40 – 50 participants and observers, today attract half that number. New projects, forums, and the like? If of interest to large property portfolio owners/operators, initiatives are funded and launched. But, when was the last time we sat down together to parse, discuss, and seek solutions to widespread challenges to our asset class? I can’t recall. One example; ‘lack of a secondary housing sales market’, to this day, and why/how said absence stifles our ability to sell and site new homes in our LLLCommunities! At the 21st annual Networking Roundtable, in San Diego, two weeks ago, this was the very issue that concluded that event. About 50 of us sat informally together in the main conference room, and talked frankly about the crazy ways we value our homes, mixed success at launching multilisting services, the need for licensing, and escrow closings. Know what? It was all for naught; as there was no one present from either of the national advocacy bodies (where this sort of discussion belongs), and no one present at the meeting to ‘lead us forward’ to solve that perennial and strategic problem. Could be the NCC division though….

So, look for year 2013 to be a pivotal one in the almost two decade history of MHI’s National Communities Council division; but in the meantime, at the NCC division’s meeting during MHI’s annual meeting in early October, what might well be on the minds of council members gathered for the event….

***
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, Indianapolis, IN. 46247
(317) 346-7156

Comments (0)

September 9, 2012

HB3849 & SB3484, & flawed MHBusiness model

Filed under: Uncategorized — George Allen @ 4:52 am

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

HB3849 & SB3484 Won’t ‘Fix’ the MHBusiness Model, but….

II.

List of 25 Most Influential Persons in Manufactured Housing & the Land Lease Lifestyle Community Asset Class almost complete!

III.

Mark Your Calendar with these Dates Now! The MHIndustry & LLLCommunity Businesses of Today will be Different Tomorrow!

HB3849 & SB3484 Won’t ‘Fix’ the MHBusiness Model, but…

House Bill # 3849 & Senate Bill # 3484 won’t ‘fix’ the MHBusiness Model; but portions thereof, address two mortgage finance regulations being developed by the Consumer Financial Protection Bureau (‘CFPB’), as required by the Dodd – Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203). Two regulations potentially impacting HUD – Code manufactured housing industry’s ability to provide truly affordable financing options to low and moderate income individuals and families desiring to purchase our unique, transportable, quality, ‘green’, non – subsidized housing product.

In the first instance, this legislation proposes a reduction in the threshold by which small balance manufactured home personal property (‘chattel’) loans are considered ‘High – Cost Mortgage Loans’ (‘HCML’). A HCML is considered to be a predatory loan, when the annual percentage rate (‘APR’) of the loan, is considered high, compared to Government Sponsored Enterprise – subsidized rates (a.k.a. GSE – subsidized rates), or exceeds points and fees thresholds. Note. Manufactured home loans are susceptible to such categorization, given their generally smaller size and lack of a secondary (housing sales) market. Furthermore, owners of small land lease lifestyle communities (a.k.a. manufactured home communities, and before that, ‘mobile home parks’) who finance such home sales are particularly at risk if this change is not effected. Probable result if not passed? Most LLLCommunity owners would likely cease lending to the very citizenry who need such financial help the most, but are least likely to receive it from local housing market lending institutions! Signs of such retrenchment already abound, among property owners/operators who’ve already started leasing their owned homes on – site, rather than risk ‘carrying paper’ – at least for the time being.

In the second instance, this proposed legislation clarifies those selling manufactured homes, NOT otherwise engaged in the business of mortgage origination, will NOT be considered mortgage originators under the federal S.A.F.E. Act (i.e. Safe And Fair Enforcement of Mortgage Licensure). And for land lease lifestyle community owners, who finance but a limited number of manufactured home sales each year, this provision would reinforce any given state’s ability to provide such exemption.

But know what? These two proposed legislative provisions, in HB # 3849 & SB # 3484, otherwise, have little effect on the flawed Business Model now practiced throughout the HUD – Code manufactured housing industry. A weekly blog posting is neither the time or place to dig into such a serious and perennial matter, in any detail. The responsibility for implementing and engaging in such a momentous, and potentially controversial, undertaking – in this veteran industry observer’s opinion – lies with one or another of the two national advocacy bodies ostensibly representing manufactured housing’s business interests in the nation’s capitol. In the meantime, here’s a partial list of the flaws that should be addressed, IF and WHEN a Blue Ribbon Task Force, comprised of businessmen and women from all segments of the industry and realty asset class, convenes:

• Lack of a secondary manufactured housing sales market in every local housing market; one to be characterized, in part and in time, by housing valuations based on market sales comparables; a functioning, realty type, multilisting service; escrow ‘closings’; training and licensing of housing sales personnel; and more…

• Lack of chattel loan programs within practical reach of the manufactured housing industry’s characteristically low – to – moderate income customer base

• Lack of willingness, by manufactured housing marketers, sales persons, and mortgage originators, to sell homes and effect loans, only when mortgage principal, interest, taxes, insurance, AND household utility expenses (a.k.a. PITI & utilities $) are all included within the widely – accepted 30% Housing Expense Factor (‘HEF’) measure of affordable housing! Until such time, we’ll continue to ‘sell & mortgage more house than our typical homebuyer can afford’, effectively saddling them with 40 –50% HEF burdens (i.e. 40 – 50% of their annual income going for housing costs alone!) when they pay their household utility expenses in addition to the 30% HEF that contains just PITI factors.

• Lack of sensitivity, on the part of some land lease lifestyle community owners/operators, to keep rental homesite rent rates in sync with other forms of multifamily rental housing in the same local housing market. There are various ways to do this, including the long known (Since mid – 1970s) and applied 3:1 Rule, where on – site homesite rental rates are approximately 1/3rd that of the largest 3BR2B conventional apartment or townhouse leased in the same local housing market.

This short list merely brushes the rough surface of Business Model issues deserving investigation and an airing, by a Blue Ribbon Task Force. Again, such an investigative and resolution – seeking body might be appointed by one or another of the two national advocacy bodies claiming representation responsibility for one or more function segments comprising the HUD – Code manufactured housing industry and its’ realty component, the land lease lifestyle community asset class.

Better yet, open participation on the Blue Ribbon Task Force to anyone in the MHIndustry & LLLCommunity asset class willing to pay his or her own way, and willing to commit to attend all the task force sessions.

II.

List of 25 Most Influential Persons in Manufactured Housing & the Land Lease Lifestyle Community Asset Class almost complete!

Yep; I’ve been surprised and pleased at the strong and continuing responses to the request first made, at this web site and blog, weeks ago, for input to this first time ever List of 25 Most Influential Persons in Manufactured Housing & the LLLCommunity Asset Class! Where are we today? To date, 23 names are in play. And there’s still time to add more recommendation(s) to the list. Simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to tell me, or FAX it to (317) 346-7158.

The final and very public List of 25 Most Influential Persons in Manufactured Housing & the LLLCommunity Asset Class will be published as part of the 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Lifestyle Community Portfolio Owners/operators Throughout North America!’), distributed as a lagniappe in the January 2013 issue of the Allen Letter professional journal. Are you presently a subscriber to this monthly MHIndustry & LLLCommunity newsletter? If not, phone (317) 346-7156 to do so. Subscription is only $134.95/year – and, for the time being, includes the aforementioned ALLEN REPORT at no extra cost.

Speaking of the ALLEN REPORT. The annual letter and questionnaire, to LLLCommunity portfolio owners/operators, soliciting property portfolio size and statistical benchmark information (e.g. occupancy, OER, etc.), is ‘in the mail’, and deadline for returning completed questionnaires to PMN Publishing, is 30 September 2012. These too can be faxed to (317) 346-7158. If you own and or fee manage five or more LLLCommunities, and or 500+ rental homesites (even if in just one LLLCommunity) you’re eligible to be included in this 24 year Who’s Who of our unique realty asset class. Do not be left out! To request a letter and questionnaire, phone (317) 346-7156.

III.

Mark Your Calendar with these Dates Now! The MHIndustry & LLLCommunity Businesses of Today will be Different Tomorrow!

Read this carefully. Starting two weeks ago, a handful of land lease lifestyle community owners in Georgia clearly demonstrated what can be done, in behalf of peers in the manufactured housing industry, to bring education, networking, and more, to their regional housing market! If you missed that watershed event, attended by 142 businessmen and women, read about it in last week’s blog posting at this website (Scroll back into the archives to blog # 210) and visit www.seco12.org for several of the Power Point presentations shared at that symposium. This is where things began to….

This week, 12 – 14 September, in San Diego, CA., 200 land lease lifestyle community owners/operators, and their favorite realty – secured mortgage originators will convene for the most educational seminars and panels (at least 22), intense interpersonal networking (at eight social – meal events), and unparalleled deal – making opportunities available anywhere, anytime, in the manufactured housing industry. This is the 21st consecutive year this segment of the MHIndustry has met; and indirectly, been responsible for eventual founding of MHI’s National Communities Council division, professional property management training and certification (i.e. MHM®), and the research and publication of at least a half dozen HOW TO texts, covering the development, investment in, and management of LLLCommunities. And here too, things will likely continue to…

From 7 – 9 October 2012, the Manufactured Housing Institute (‘MHI’) will host its’ annual meeting in San Antonio, TX. And it’s National Communities Council division, under the new institute executive leadership of Jenny Hodge, VP, will also convene. If you’re a direct member of MHI and or the NCC, you owe it to yourself to be present for the proceedings. For information, contact Bruce Savage, via (703) 558-0666. Who knows, something downright exciting might be in the offing, this time around…

Enjoy November and December with your employees and families, celebrating Fall and the Holiday season! Catch your business planning breath before the new year begins…

Then, as the New Year dawns, so does the 2013 round of manufactured housing shows, beginning with the Louisville MHShow (previously, the Midwest Manufactured Housing Show), from 23 – 25 January in, ‘you guessed it’, Louisville, KY. What many of us LLLCommunity owners/operators are watching for this year, is to see how many HUD – Code home manufacturers ‘have finally gotten the word’ that new home sales = placements in land lease lifestyle communities! The last two years, that wasn’t the case, with hardly a presence of any Community Series Homes or CSH models. Hopefully, this year will be different. Want more info on the Louisville MHShow? Phone _________________

MHI will hold its’ annual Legislative Conference in Arlington, VA., @ 24 – 26 February 2013. Should be interesting to observe, by then, what (if anything) has happened in the interim, between aforesaid annual meeting and this one, nearly five months later. What do you think will be the case? Guess it depends on ‘what’ happens (if anything) during and after the annual meeting in TX. Maybe a Blue Ribbon Task Force? Or how ‘bout a paradigm shift of sorts? In any event, if a direct member of the NCC division, it’ll be a good idea to be present this time around. For event and membership information, phone Jenny Hodge @ (703) 558-0666. Tell her, ‘George sent me!’

27 February 2013. Manufactured Housing Manager® professional property management training and certification class scheduled for Tulsa, OK., the day before the Great Southwest MHShow begins. There’re nearly 1,000 MHM®s designated to date, most of whom own and or operate land lease lifestyle communities throughout the U.S. and Canada. Are YOU one of them? If not, phone (405) 634-5050.

28 February – 3 March. The Great Southwest Manufactured Home Show takes place in Tulsa, OK. This year promises to be ‘bigger and better’ than the one in 2012. And the program is designed to ‘keep MHRetailers and LLLCommunity folk on the show floor buying homes’. BUT, there’ll also be opportunity to learn firsthand, the ‘State of the Manufactured Housing Industry & the Land Lease Lifestyle Community Asset Class’, as well as valuable pointers regarding how to get into and remain ‘in compliance’ with the plethora of federal and state financial regulations now plaguing the industry and property type. For information, phone(405) 634-5050.

A postscript of sorts. Know what a widely known and well – regarded MHIndustry businessman, of many years experience, has to say about the preceding ‘hinted about’ matters this Fall? His comments were received shortly after the suggestion was made, in a recent blog posting at this website, for a new MHInitiative® (formerly, National State of the Asset Class caucuses per 2/27/2008 & 2/27/2009)

“…if MHI doesn’t ‘take the bait’ in October, or indicate solid interest in doing so during their annual Legislative Conference in February, just ‘days before the Great Southwestern MHShow’, then ‘Why Not Do So There?’ Don’t know ‘bout you, but I get so tired of all this posturing, when we should be seizing the initiative and, in so far as possible, (plan and) shape our own collective (business) future!”

So, it isn’t just me out there encouraging our two national advocacy bodies to take ownership and leadership of the future of manufactured housing (Maybe it’s time to come up with another name ‘for what we do’) in the U.S.. And know what? While land lease lifestyle community ‘might be cutting edge terminology for the asset class, there’s still much work to be done, there too, regarding how we do – and don’t do business, e.g. lack of professional property management training and certification of on – site and regional managers, for starters; not to mention the uneven rental homesite rent rates mentioned earlier.

Ah, should make for an interesting Fall meeting season ahead of us. Let’s just hope our salaried and elected leaders don’t let us fall further behind in new home shipments, reputation with consumers, and housing finance.

*****

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September 2, 2012

SECO Success, PM Basics, CSH Homes, & Rebranding…

Filed under: Uncategorized — George Allen @ 4:17 am

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

SECO, a Stunning Success for Southeast LLLCommunity Owners!

II.

Land Lease Lifestyle Community Operations Typified by Property Management, Resident Relations, Homesite Rental & Home Sales!

III.

National Advocacy, CSH Model Homes, C.A.S.H., & Rebranding!

***

SECO, a Stunning Success for Southeast LLLCommunity Owners!

A day long symposium for land lease lifestyle community owners/operators, solely planned, hosted, and led by lifestyle community owners/operators! In this veteran industry observer’s recollection, this SECO symposium marks the first time in manufactured housing history, a major U.S. regional educational and networking event, was effected without direct support from any state or national MHIndustry trade and advocacy association or institute – though the former participated; and the latter was invited – but did not show as a sign of support or to recruit new direct members for its’ LLLCommunity council.

Was the 8/29 SECO symposium, in Atlanta, a success? As is oft heard in victorious, bellicose moments of celebration: “Damn straight it was!” How so? Anytime you get 142 land lease lifestyle community owners/operators together for a day of superb education, via skilled presenters and insightful panels, you’ve got a major networking event on your hands – and that’s what happened here. LLLCommunity aficionados, even though this was a Southeast U.S. regional event, came in from CA, the Midwest, FL, and NY, to participate.

What was covered? Lease option & investor financing of home sale transactions; ‘captive finance’ & related regulatory compliance issues; marketing of LLLCommunities ‘for sale’; 21st Mortgage’s exciting C.A.S.H. Program (more about that later); ins & outs of ‘renting’ manufactured homes on – site; selling to the Hispanic market; off grid homes & marketing to ‘boomers’; how to collect 100% of your site rent; and much more! Watch upcoming issues of the Allen Letter professional journal for more information on some of these subjects, as well as this weekly blog posting. Now, aren’t you sorry you didn’t take my advice and attend? Well, guess what, some of these same presenters will be covering similar topics at the upcoming 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September. Are YOU registered yet? 200+/- of your peers already are – and the number is climbing. If you’re a LLLCommunity owner/operators, how can you afford NOT to be present at this once a year educational, networking, and deal – making event? For more information, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. There’s also a brochure, for the event, elsewhere on this website.

So, what else did you miss, by not being present at this historic SECO Symposium event? For me, just being able to pick up product and service literature, from sponsor tables manned by HUD Code home manufacturers, chattel finance lenders, consultant Michael Power, and insurance brokers, was a ‘resource treat’. And seeing Spencer Roane, of Pentagon Properties, honored by the Georgia Manufactured Housing Association, for his PEERSEVERANCE on their behalf, was a privilege. Now, for the time being, let’s hope these Southeast U.S. LLLCommunity owners/operators, again next year – or before, decide to treat their region to yet another superb educational, networking event like this! For more information, contact Chris Nicely via (865) 385-9675 & chrisnicely@gmail.com

II.

Land Lease Lifestyle Community Operations Typified by Property Management, Resident Relations, Homesite Rental & Home Sales!

“OK George Allen, we need you to summarize the basics of land lease lifestyle community operations into a 15 minute talk you’ll share with five different groups of eight LLLCommunity owners/operators, during roundtable presentations following the SECO Symposium luncheon.” That was the assignment; here’s the result:

• Basic Management. Start with 5 – Ms of Management (i.e. manpower, machinery, material, methods & money), ensuring coverage of any management challenge. Use a Problem – solving Procedure to work through various challenges (Ask for free Management Wisdom card when phoning the aforementioned MHIndustry HOTLINE). Keep ‘helps’ in mind, e.g. KISS = ‘Keep It Simple Stupid – or Sweetheart!’ & Tom Peters’ famous MBWA = ‘Management by walking around!’ (How oft are YOU out in your property assessing what needs to be done, then ensuring it gets done?!).

• Resident Relations. Veteran, successful property managers (a.k.a. ‘PM’s) know good Resident Relations = more Resident Referrals = maximum Resident Retention! Gotta confrontation issue? First, everyone sits (i.e. Eliminates ‘fight’ & ‘flight’ options); then, HEAT, where H = hear both sides of the story; E = empathize, where possible, with offending party; A = ‘apologize’ or request same, as appropriate; and T = take Action!

• Marketing Homesites. Start with the 5 – Ps of Marketing, where Product = rental homesites & property amenities; Place = property location re jobs, schools, shopping, recreation; Price = competitive site rent rate per 3:1 Rule, where LLLCommunity site rent is, or should be, 1/3rd of 3BR2B conventional apartment rent; Promotion = via print & online emphasis of USP (Unique Selling Proposition), signage & referrals; People = use SUCCESS Triangle to screen, considering ‘skills/training’ on one side, ‘experience’ on the other side, and all important base, comprised of ‘high motivation’ & ‘right attitude’ for job at hand!

• Marketing Homes. Again, use 5 – Ps of Marketing; here Product = right models for local housing market; Place = rental homesite size, configuration & placement; Price = decide to market new and resale housing Price Points ‘affordable’ or ‘risky’ for the homebuyer/site lessee – use ‘Ah Ha! & Uh Oh! Worksheet’ – free via aforementioned MHIndustry HOTLINE; Promotion = via print & online message, Open House, Guest House, etc.; People = same SUCCESS Triangle, plus ensuring there’s enough sales potential on – site to justify full or part time – manned Sales Center.

Again, some of the handout material distributed during these eight 15 minute talks, is available at no charge to blog floggers (readers). Simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and ask for the specific training aids.

III.

National Advocacy, CSH Model Homes, C.A.S.H., & Rebranding!

My final assignment, at this year’s historic SECO Symposium, was to conclude the day with as many positive indicators of HUD – Code manufactured housing industry renewal or rebirth, as possible. Here’re the points shared with this audience of land lease lifestyle community owners/operators:

• National advocacy at the Manufactured Housing Institute. First off, every manufactured housing businessman and woman needs to be supportive of MHI’s efforts to seek passage of HB3849 and SB 3484. Thanks to hard work and advocacy by MHI Treasurer Nathan Smith, PHC, and others, these two similar bills contain components relative to the S.A.F.E. & Dodd – Frank Acts; specifically, certain exclusions for MHRetail salespersons, and some amelioration regarding predatory lending. Also watch for a new paradigm to maybe emerge at the institute’s annual meeting in October. Why no comment on the ‘slight increase’ in new home shipments year to date? Until chattel finance returns (Read paragraph to follow), I don’t see the small YTD up tick in home shipments as any more significant, or lasting, than the so – called (hurricane) Katrina Factor of a few years ago. Perhaps history will prove me wrong; and if so, Good for Us!

• HUD – Code home manufacturers becoming more enlightened on two fronts: home design & ‘affordability’. In the first instance, more home manufacturers are endeavoring to sell more new homes, of Community Series Home (‘CSH’) design, into land lease lifestyle communities, using Business Development Managers (‘BDM’) assigned to this target market. AND, a real surprise, has been the near epiphany, on the part of some manufacturers and MHRetailers, as to how new home Price Points are indeed, either ‘affordable’ OR ‘risky’ for would be home buyers! Why is this such a surprise? Because heretofore – and in most cases continuing today, we – as an industry, sell and mortgage new homes, whereby conventional wisdom’s ‘30% Housing Expense Factor’, or HEF, is comprised solely of loan principal, interest, taxes & insurance or PITI – but NOT including household expenses (e.g. electric, water/sewer & heating fuel). Bottom line: When household expenses are paid outside (i.e. ‘in addition to’) aforesaid 30% HEF, homeowner’s total HEF winds up being a burdensome 40 & 50% (of their annual income), hence ‘risky’! But when the same household expenses are factored ‘into’ said 30% HEF, the homeowner can not buy as much house as before, but now lives ‘affordably’, and is far less likely to abandon their home (an built up equity) at the first sign of economic hardship. Some of us have waited decades for this reality check to move front and center stage! Let’s hope this ‘affordable’ (vs. ‘risky’) approach to selling and mortgaging HUD – Code manufactured homes trickles down to all the new and resale home transactions we effect!

• Independent, third party chattel finance sources returning? Some folk think so; I don’t – at least not where the financing of new and resale home transactions within LLLCommunities is concerned. Here, there’s only one game in town, and to date, that’s 21st Mortgage Company’s C.A.S.H. Program, a cooperative program involving homebuyer, LLLCommunity owner, and the lender. And this comment is not an ‘endorsement’, simply a sobering ‘reality check’. The other three ‘players’ among the Big Four + 1 independent, third party chattel finance lenders? Simply, their required personal credit score and loan underwriting standards are too difficult, if not impossible, for most would – be (manufactured) home buyers today! Proof of this? Attend the 21st annual Networking Roundtable in San Diego, 12 – 14 September and observe how many chattel lenders are present this year, when 200+/- of the largest and most actively selling homes LLLCommunity owners/operators meet to network with their peers and lenders.

• Land lease lifestyle community. We introduced this latest – and hopefully final tweak, to the decades old term describing the realty component of manufactured housing, weeks ago in this weekly blog source. Why the adjustment? Several good reasons. First, the unique, income – producing property type is no longer populated by just ‘mobile homes’ and manufactured homes. Now we routinely site modular homes, ‘park model’ RVs, RVs for a season, and on occasion, site – built homes constructed to appear like HUD – Code manufactured homes. In addition, the ‘lifestyle’ addition is long overdue, as it’s ‘for decades’ been just that, a preferred lifestyle among millions of young marrieds, retirees, and other segments of American society. And finally; there’s a quiet evolution taking place, throughout and within our industry and realty asset class, where Advocacy, Research, and Resources are concerned. That’s about all that should be said about the matter for now, but watch what comes out of MHI’s annual meeting this Fall, and other developments likely reported in this weekly blog posting; again, relative to national Advocacy, industry & asset class Research, and ‘comprehensive Resource servicing’ – in this latter case, where land lease lifestyle communities are concerned.

IV.

There’ll be one more blog posting before the 21st Networking Roundtable begins 12 September at the Hilton San Diego Resort & Spa on Mission Bay, in California. As of the writing of this posting, 1 September 2012, we’re just shy of 200 registrants. That said, and given past experience, we’ll be hosting well more than 200 land lease lifestyle community owners/operators, and a dozen or so of their favorite realty – secured mortgage lenders and brokers, by the time the event begins with Marcus & Millichap’s Buyer’s Symposium at 4PM on the 12th.

If you’re reading this and haven’t registered, do so by this Friday, 7 September. Why? When Carolyn and I leave the office at the end of that workday, we won’t be easily available to you until the Roundtable begins, or back in the office until 17 September. So don’t miss this stellar annual event because you missed us. Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 this week and register. Your peers in the manufactured housing industry and LLLCommunity asset class want to network with YOU in San Diego, CA. We do too!

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 # 46024, Indianapolis, IN. 46247
(317( 346-7156

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August 26, 2012

MHInitiative, new MHMantra, Confrontaton or?

Filed under: Uncategorized — George Allen @ 3:42 am

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

Do YOU, Like Me, Feel an ‘MHInitiative®’ Coming On, During the Next Few or Several Months Ahead?

We haven’t even been to SECO yet, the 21st Networking Roundtable, or MHI’s annual meeting, and folk are calling for an MHInitiative® caucus.

Why?

What Would YOU Do, if This Scenario was Yours?

Ever find yourself betwixt & between? That’s the uncomfortable, but maybe timely and necessary state faced by some of us today, in the MHBusiness….

Abbreviations, Acronyms, and Allenisms

a Triple AAA array of computer and manufactured housing communication.

Do YOU Feel, Like Me, an ‘MHInitiative®’ Coming On, During the Next Few or Several Months Ahead?

First off, what’s an MHInitiative®? Long time readers of this blog likely already know; but for everyone else, an explanation is certainly in order.

MHInitiative® is the contemporary trade term describing what was previously known as the National State of the Asset Class caucus. The first NSAC caucus was held 2/27/2008 in Tampa, FL., the second, 2/27/2009 in Elkhart, IN. These historic events provided asset class focus and new product design, for land lease lifestyle community owners/operators, and the HUD – Code manufactured housing industry, respectively.

During the initial (2008) caucus, 100 LLLCommunity owners/operators articulated and agreed upon ‘Five Action Areas to guide their Business Future during years ahead. Specifically, they agreed on the Value of political influence and Advocacy at local, state and national levels; Necessity & timeliness of National Image Improvement and local housing market promotional campaigns; Fair interplay of housing product pricing, financing, value and rental (homesite) rents; Measure customer satisfaction via resident relations, resident referrals, and resident retention; and Prevalence of financing and servicing new and resale home transactions on – site; and Identification of realty mortgage financing sources for properties.’ Quoted from Landlease Communities…2011, p.16. Four and a half years later, those Five Action Areas continue to guide the business decisions and actions of LLLCommunity owners/operators nationwide.

The following year (2009) an eclectic mix of 100 HUD – Code home manufacturers, along with their land lease lifestyle community owner/operator counterparts, caucused at the RV/MH Heritage Foundation’s new Hall of Fame facility in Elkhart, IN. Here, the challenge was, ‘How to Sell More New HUD – Code Homes into LLLCommunities’?! The caucus answer? Design a new line of manufactured homes, tailored for on – site installation, within this unique, income – producing property type. Well, the manufacturers did so, and in time, this new line of homes (i.e. oft singlesection, along with smaller multisection configurations) have come to be known as Community Series Homes or CSH Models. And to a degree, they’ve supplanted the behemoth multisection homes of the late 1990s, a.k.a. Developer Series Homes, designed back then, to compete with larger, site & stick – built homes. Also, a new job title and description appeared on the scene, to market CSH Models, the Business Development Manager or BDM. A free list of CSH Model characteristics, and the plants from whom to purchase them, is available via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. For in depth information about CSH Model homes, contact Don Westphal @ (248) 651-5518.

So there’s the brief, recent and successful history of NSAC caucuses. Since 2011, however, a new label, that of ‘MHInitiative®’, has been used to describe this informal, grassroots – driven, national manufactured housing meeting phenomenon – the very mention of which, has already prodded national trade bodies into similar action of their own. Lately however, some have been suggesting it’s time to caucus again; this time, to consider, and take on the major challenge of considering the rebranding of HUD – Code manufactured housing on the whole, including the industry’s land lease lifestyle community component. Specifically, to plan and effect a national, industry wide paradigm shift in the way we refer to our business model, market and advertise our affordable housing product lines, and promote our desirable realty – based lifestyle.

When might the next MHInitiative® occur? That depends on our elected leaders and salaried executives at the national Advocacy body level. An obvious place to start, in this industry observer’s opinion, would be the Manufactured Housing Institute’s annual meeting in San Antonio, TX., @ 7 – 9 October 2012. And there’s precedent for this; recalling a similar Strategic Planning Session during MHI’s annual meeting in New Orleans, nearly a decade ago. But if such an initiative was to occur this Fall, there’d have to be soon, widespread and effective ‘getting the word out’ to institute members and non – members nationwide, unless such an effort was going to be kept in – house. What might derail an industry rebranding effort this Fall? For starters, MHI and the Manufactured Housing Association for Regulatory Reform’s (‘MHARR’) ongoing feud. However, if it’s true more than 80 percent of U.S. manufactured housing market share lies with three MHI manufacturer members, maybe the institute could and should ‘go it alone’! and caucus over this matter. What do you think? If a direct, dues – paying member of MHI, let Dick Jennison know, via (703) 558-0678. Me too.

And if MHI doesn’t seize the initiative to plan and host an MHInitiative® – like caucus this Fall? Well, the ideal, even historic time to do so would be sometime around the 27th of February 2012. But guess what? That week is already filled with manufactured housing industry events: MHI’s annual Legislative Conference in Arlington, VA. @ 24 – 26 February; a Manufactured Housing Manager® or MHM® professional property management certification class in Oklahoma on 27 February; followed by the Great Southwest Manufactured Housing Show, also in OK., 28 February – 2 March! So, no, we’ll have to identify another date and location – unless everyone wants to travel to Oklahoma ‘to do the show’ AND rebrand the manufactured housing industry at the same time!? The next best alternative, would be to caucus somewhere ‘down South’ during mid – March; or simply wait and do so, at the annual Manufactured Housing Congress in Las Vegas, NV. All it’d take is a separate hotel meeting room and widespread national publicity. Whaddaya think? Send me an email: gfa7156@aol.com or phone the aforementioned MHIndustry HOTLINE. Or are you OK with the status quo?

In case you missed the point earlier, the rebranding of manufactured housing’s real estate component has already begun! How so? Well, you already know how ‘manufactured home community’, the realty asset class’ moniker, replaced ‘mobile home park’ two decades ago. Just this year – actually only a month or two ago, ‘land lease lifestyle community’ refined the ‘landlease community’ label we’ve been using during the past several years. While it’s certainly going to take awhile, know that ‘land lease lifestyle community’ will indeed ‘stick’; in part due to alliteration, in part because it makes perfect sense. So, in time, it will become the realty term of choice within and outside the HUD – Code manufactured housing industry, OR, whatever new name ‘rebranding’ gives the industry during the months ahead….

II.

What Would YOU Do, if This Scenario was Yours?

You’re a regular member of an athletic team. It’s comprised of several dozen players, who’ve played and competed together ‘for years’. And everyone – at least when the going gets tough, and in social environments, gets along well. In fact, everyone is so talented, it’s sometimes difficult to identify a particular leader; at least that was the way things were until recently.

Having competed together for more than a decade, experiencing the usual mix of successes and lapses, a subtle but obvious change in the tone of leadership, even team focus, has been felt and observed by some, if not most, team members. No longer do players get equal playing time, nor are team members overtly helping ‘the other guy’, when the game gets tough, as had been the case in times past. And, there’s little to no skill training available anymore, and others are expected to keep and publish game ‘stats’ for the team.

As it stands, a couple players, really good ones at that, have started making playing decisions pretty much on their own, and in a fashion that appears to favor a few of the more visible team members, rather than the entire team. When this was pointed out; that such favoritism is looking more and more like a clique, the notion was ridiculed. But the subtle change, nonetheless, is apparent to all.

What to do?

Confrontation or something else? Few team players want overt confrontation with other team members, as that flies in the face of camaraderie, cooperation, and simply getting the job done. Perhaps though, since the leaders of this team are elected to their playing positions, by the whole team, maybe other players need to step up to the place and make their desire to lead and change the team’s focus known, and campaign for the top leadership positions….

Or, given the significant differences in size, visibility, and playing ability of some of the dominant players and leaders, maybe form a new team to compete in the same sport, but on a different level? Now that’s a possibility. But, do we really want two teams from the same home town competing in the same sport, even at different levels? Other situations, of the same divided nature, in the sport, have not fared well in the long run. So, who will fans and supporters support when competition begins? Or is there yet some other way the two factions can ‘play well together to win’, during the months and years ahead?

The right answer to this sports metaphor quandary? Guess it depends on whether one is wholly satisfied with present leadership direction and team focus; whether one is inclined to challenge the status quo; or, frankly, see a brighter future playing opportunity, by separating from one’s old team and starting anew, with like – talented, experienced, motivated players, in a league of their own. Again, what would YOU do under these circumstances? Confront or play elsewhere? As they say, ‘inquiring minds would like to know’….

III.

Abbreviations, Acronyms, and Allenisms

BTW (‘By the way’), during this politically – charged POTUS (‘President of the United States’) election season, bet you hoped you’d heard the last of the ACORN (‘A Completely Obsessive Really Nutty Person’) folk and MSMD (‘Monkey See, Monkey Do’) politicians.

But no, nothing much has changed, as WYSIWYG (‘What You See Is What You Get’) occupy elected offices from coast to coast, causing responsible citizens to complain, AWGTHTGTTA (‘Are We Going To Have To Go Through This Again’) WTSDS (‘Where The Sun Don’t Shine’)?

But hey, as an industry and realty asset class, we’ve had more than our fair share of image slams over the years. Otherwise, we wouldn’t have to face down acronyms like CRAP (‘Cheap Redundant Assorted Products’); NIMBY (‘Not In My Back Yard’) you don’t; LULU (‘Locally Unwanted Land Use’) around here; or the land planner’s ultimate put – down, BANANA (‘Build Absolutely Nothing Anywhere Near Anything’). However, when so many of our struggling homeowner/site lessees are SITCOM (‘Single Income, Two Children, Oppressive Mortgage’) folk, DINK (‘Double Income No Kids’) retirees, even FWBs (Friends With Benefits’), we’ve gotta expect to take some flack at times.

Some abbreviations, like USP (‘Unique Selling Proposition’) and RSVP (‘Respondez Sil Vous Plait’) go back years and years and years; also ASAP (‘As Soon As Possible’), CEO & COO job titles, and not to forget KISS (‘Keep It Simple Stupid or Sweetheart’).

There’s even some old military abbreviations and acronyms, out and about in the business world these days: AWOL (‘Absent WithOut Leave’), MIA (‘Missing In Action’), KIA (‘Killed In Action’, now a brand of automobile), EOD (‘Explosive Ordnance Disposal’ or ‘End Of Day’ or ‘End of Discussion’), NAVY (‘Never Again Volunteer Yourself’), USMC (‘U Saw Me Coming’, or as Carolyn likes to opine, “Uncle Sam’s Misguided Children’, and one that can’t be printed here), RHIP (‘Rank Has Its Privileges’), SNAFU (‘Situation Normal, All Fouled Up!’), SWAG (‘Strategic Wild Assed Guess’), and WILCO (‘Will Comply’), and more….

Present day, constant exposure to email writing shortcuts has been educational as well. I’m OK (‘OK’) with LOL (‘Laughing Out Loud’ – or is it ‘Lots of Love’?) and TNX (‘Thanks’); but FOFL (‘Falling On the Floor Laughing’) is a new to me, as is NRN (‘No Reply Necessary’), which I find myself using more and more. And then there’s CUL8R (‘See You Later’), and RU (‘Are You?’).

Remember GIGO (‘Garbage In, Garbage Out’) of ‘years gone by’, when computers were behemoths and not laptops? How ‘bout this latter day variation, BIBO or (‘Beer In, Beer Out’). Not quite the same.

By now, most blog floggers (readers) are familiar with my unique brand of abbreviating, and then using, industry terms. In general, we call’em Allenisms; and when relating to manufactured housing, MHAllenisms. Here’re a few of the common variants: MHIndustry (‘manufactured housing industry’), LLLCommunity (‘land lease lifestyle community’), MHRetailer (‘manufactured housing retailer’), MHInitiative® – you met this one earlier in this posting; and MOPHEAD, an acronym I use from time to time, to describe ‘manufactured housing opinion/editorials’. And there’re these two word bastardizations: manufRactured housing – used when describing a dumb, self – inflicted wound within our MHBusiness environs! Then there’s this title to a blog posting earlier this year: ‘MHI (‘MY’) MHARRvelous Dream for the MHIndustry!’ wherein I fantasized our two national Advocacy bodies would finally be getting along, and working together for the good of our entire industry. Not!

Had enough yet? How ‘bout the ‘Ah Ha! & Uh Oh!’ label on the popular calculation worksheet, using AMI (Area Median Income) and or AGI (Annual Gross Income), to estimate ‘affordable’ and ‘risky’ Price Points for new and resale homes destined for in – LLLCommunity placement, or sited as land – and – home packages. Anyway, the first four letters are direct abbreviations of the words Affordable Housing & Housing Affordability. And ‘Uh Oh!’? Seems reasonable to cite the unfortunate exclamation one might expect from someone who’s bought more house, or signed on for a larger mortgage, than they can afford in ‘risky’ fashion, rather than with ‘affordability’ in mind. And there’s more to this story than meets the eye here. For a free copy of the ‘Ah Ha! & Uh Oh! Worksheet’, again, just phone the MHIndustry HOTLINE.

Hey, here’s another way abbreviations, acronyms, and Allenisms can serve the manufactured housing industry and land lease lifestyle community asset class. Two abbreviations suggest this (tongue in cheek) ‘fight cheer’ of HBASTD & HITAKS! Goes something like this, “At 50,000 homes a year, we’ve ‘Hit Bottom And Started To Dig! our way out, as we ‘Hang In There And Keep Smiling’!

*****

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August 19, 2012

How to Increase HUD – Code Home Sales NOW!

Filed under: Uncategorized — George Allen @ 4:28 am

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

How to Increase HUD – Code Home Sales NOW!
It seems everyone is climbing on this bandwagon, are YOU?

‘But First, an important announcement, for individuals attending the
21st International Networking Roundtable, in San Diego, CA., @ 12 – 14 September: Registration has been so heavy for this seminal event, that rooms at the Hilton San Diego Resort & Spa are now limited. Overflow, if it occurs, will be handled by the nearby Crowne Plaza at 2270 Hotel Circle North, San Diego. If necessary, phone (888) 233-9527 and request a room reservation in the Networking Roundtable courtesy block.’ GFA

Ever since this weekly blog post, on 8/5/2012, at community-investor website, described

‘HUD – Code Manufacturers Showing Renewed Interest in Selling New ‘Community Series Homes’ into Land Lease Lifestyle Communities’,

our offices have been awash in phone calls, email messages, faxes, even visits from BDMs (Business Development Managers working for said home manufacturers), requesting copies of the blog manuscript, subsequently recast as a ‘drop in’ feature in September’s edition of the Allen Letter professional journal. Are YOU a subscriber yet? If not, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Why this sudden and intense attention? Because the timing is right – even critical, for HUD – Code home manufacturers to finally realize they MUST turn out truly ‘affordable’, oft singlesection manufactured homes (a.k.a. Community Series Homes or CSH models) designed for in – land lease lifestyle community placement – to survive! Behemoth land – and – home multisection homes (a.k.a. Developer Series Homes, or DSH models of the late 1990s), for the time being, have been and continue to be ‘dead in the water’ in most local housing markets, unable to compete, price wise, with hundreds of thousands of repossessed, devalued stick – built homes sited on realty conveyed fee simple. And now that 21st Mortgage Corporation has rolled out it’s C.A.S.H. Program, and SACU, it’s One – Step Program, in – LLLCommunity financing of new (and eventually resale) manufactured homes is once again possible and feasible!

And that point, is but one of ten steps identified in the aforementioned blog, describing how HUD – Code manufacturers can sell more new homes into land lease lifestyle communities! Here’s some more unsolicited response to this particular blog posting:

“Well done! I am a ‘porchy’, as were my parents and grandparents. In late August, my sisters and I will be at Mom & Dad’s house, to sit out on the porch and solve the problems of the world, just as we have all these – OMG – years! What a great reminder, sir, and Thanks! You are right; non – threatening debate has, and will always be, the way to the truth and compromise that wins.” NB These remarks are in response to the Phillip Gulley quote used to begin the blog, and the fact that one of the most popular Community Series Home or CSH model designs, these days, is the singlesection manufactured home featuring a front – loaded porch. For a list of the HUD – Code manufacturers producing CSH models these days, phone the above – referenced MHIndustry HOTLINE.

Remember, that Ten Step to Increased Home Sales list will be a drop – in feature in the September 2012 issue of the Allen Letter professional journal. You owe it to yourself to read and USE it, and certainly pass a copy onto the HUD – Code home manufacturer, even plant, of your preference – along with the suggestion to ‘Get with it’ NOW!

II.

Then, there was this interesting suggestion. ‘How to boost home sales and save on taxes at the same time?’ This drill may or may not work in your state – so check first. But the way it works, as I was told, goes like this:

A land lease lifestyle community owner, who’s also a properly licensed MHRetailer, orders a new home, installing it on rental homesite within his property. The transaction, for the time being, is tax exempt, as it’s merchant inventory, being held for sale. The home, once properly installed on a rental homesite, is first rented to a lessee, or family, for at least one month. As a ‘rental’, the home is not taxable. Then sell the now next – to – new home as a ‘resale’ home, and that transaction is not taxable either; or, if so, only partially – depending on laws in a particular state. Taken together, this routine saves several percentage points, or thousands of tax dollars, on the sale of said home. But remember, check this out in your state, before proceeding. RK (Edited. GFA)

III.

Then there’s this sobering indictment of land lease lifestyle community owners/operators who do NOT properly, if at all, TRAIN on – site staff to effectively sell new and resale homes, let alone lease vacant rental homesites:

“Agree with everything you said in your recent blog posting, but feel you missed one important requirement (for selling more manufactured homes on – site), and that is training sales staff! The average salesperson, in a land lease lifestyle community, was hired to collect rent and take care of the property, where curb appeal, rules enforcement, and resident relations are concerned. They generally receive NO sales TRAINING whatsoever. The prevailing erroneous mindset, among HUD – code home manufacturers, and LLLCommunity owners alike, is ‘…the housing product is so superior it will sell itself!’ NOT!” GS (Edited. GFA)

My comment here? The writer is right! As a rule, operations – capable people are generally hired to staff land lease lifestyle communities. Rarely are they as good at sales, of any kind, as they are at ‘taking care of (property management) business’. And only when a property is large enough (In this industry observer’s opinion – with more than 150 rental homesites, and 10 – 15% of those vacant), can it afford to hire a commissioned sales person. And then, where do we get appropriate training? Historically – again, in my experience, not from the manufacturer or their regional sales representatives. And LLLCommunity owners/operators already know capable, experienced, motivated sales trainers, of the sort we need, are as rare as ‘hen’s teeth’ in the manufactured housing industry. The answer? Maybe, as described in two of the aforementioned Ten Steps: HUD – Code home manufacturers should seize the initiative and retrain their trainers to teach how to effectively sell Product & Lifestyle on – site, not just the former. And while they’re at it, somebody should be putting together the first ‘How to Sell Manufactured Homes in Land Lease Lifestyle Communities!’

So far, two weeks have gone by, and I’ve yet to hear from a HUD – Code home manufacturer that they defiantly plan to follow up on these two specific recommendations. Though I will say, I did have one in – plant visit and interview where the matters were at least discussed.

IV.

Changing the subject a bit, If you haven’t already read this very interesting MHVillage – conducted survey, quoted in Ken Rishel’s free, online Chattel Finance Newsletter, or elsewhere for that matter, go to mhvillage.com/ and read it ‘right from the horse’s mouth’. It’s worth the effort, and you’ll be glad you did.

Recommending this ‘read’, by the way, touches on yet another, related and telling matter.

Surely you’ve noticed! Most ‘new (MHIndustry & LLLCommunity) news’ you read these days comes from two trade press sources; Rishel Consulting’s two online finance newsletters, and aforementioned Allen Letter professional journal. NOT including the Allen CONFIDENTIAL! here, as that subscriber – supported, monthly print business newsletter deals solely with ‘insider MHBusiness information’ available nowhere else! For example; where else would one learn firsthand, details of a possible hiatus coming to post production Advocacy, Research & Resources? Or read a critique of ARA Manufactured Housing’s 2012 National Manufactured Housing (report)? Think about it. The Manufactured Home Merchandiser, Modern Home, Automated Builder, and Factory – built Housing magazines are all gone. So, here’s an acid test by which to measure ‘what’s left’: Do they announce, let alone report on, key events like the upcoming SECO Symposium in Atlanta, GA. @ 29 August; or the 21st Networking Roundtable in San Diego, CA., @ 12 – 14 September? Hmm?

Speaking of the SECO Symposium, YOU barely have time to get in under the wire. That’s right; appears well more than a hundred land lease lifestyle community owners/operators, HUD – Code home manufacturers, and home finance resources will congregate at the Hilton Doubletree Atlanta/Marietta Conference Center all day , 29 August 2012. For room reservations, phone (770) 272-9441. For more information about the four part program, and to register, contact Chris Nicely via (865) 385-9675 or cnicely929@aol.com I plan to be there, not as a presenter, but as a land lease lifestlyle community owner who wants to learn from other land lease lifestyle community owners!

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

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