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

Top Ten Tongue – in – Cheek Reasons NOT to Effect Radical
Change at the Manufactured Housing Institute!

&

Who Might Lead the New MHI Partnership Team?

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Commentator Paul Harvey & MHI’s ‘water sprinkler’ Proposal

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Beware the Uniform Law Commission’s Ousting of MHTitles!

The lead story in this week’s blog won’t make sense to you, until you read last week’s posting, titled: ‘Time For a Radical Change at the Manufactured Housing Institute’. Here’s the statement that got tongues – a – wagging during the past seven days…

“Finally merge the Manufactured Housing Association for Regulatory Reform with the Manufactured Housing Institute; yes indeed, and make Danny Ghorbani executive – in – charge of all home manufacturing/distribution matters; and yours truly, George Allen, executive – in – charge of all landlease (nee manufactured home) community affairs! And atop the new HUD Code manufactured housing and landlease community pyramid, position the present day board chairman (Joe Stegmayer of Cavco Industries, Inc.) – or his handpicked designee, to lead both major segments of the new and equal partnership between ‘production & post production’ divisions of the manufactured housing industry.

Present state of the search? Following is from the written and distributed record of MHI’s conference call, 15 November, with state MHAssociation execs. At one point, Joe Stegmayer explains: ‘We have talked with some folks and are getting resumes in for a new president…We want to find a very dynamic and aggressive leader for MHI… (&) We don’t feel we have to have a person in (sic) tomorrow.’

Last week’s blog posting. ‘Thanks’ to those who’ve taken time to email your thoughts, on this matter, to one or more of the five MHIndustry leaders listed at the conclusion of said blog posting. Now, onto the…

I.

Top Ten Tongue – in – Cheek Reasons NOT to Effect Radical Change at MHI!

1. Oil (MHI) and water (MHARR) simply don’t and won’t mix, ever, ever, ever!

2. Radical Change, frankly, is something ‘We don’t do at MHI’; it hurts too much.

3. At heart we’re trailer folk, so don’t deserve prosperity and all its’ trappings.

4. Danny Ghorbani’s 43 years of manufactured housing experience is not enough!

5. George Allen has but 33 years of landlease community experience & needs more!

6. LOL: “OMG, I’ll die B4 using Allenisms like MHIndustry & LLCommunity.”

7. In partnerships, someone always gets screwed; the one with the idea, one with the money; or other way around? Will it be production, post production, or neither?

8. Consensus building & issue confrontation are mutually exclusive advocacy tactics, and ‘never the twin should meet’ in one manufactured housing trade body!

9. “Oh no! We’ll have to combine the ‘How to Save Our Industry?!’ MHInitiative ® & MHI’s legislative meeting, both are scheduled for 27 February 2012.” Horrors.

10. Our friends, ‘the politicians, and regulators at HUD’, won’t know how, or who to ignore, when we cease advocating via ‘MHI said’ versus ‘MHARR said’ opining!

Know what? While couched as tongue – in – cheek, there’s real truth within each and every one of those Ten Reasons NOT to Effect Radical Change at MHI! Some examples:

No one has seen MHI & MHARR ‘work well together over time’; that’s why we need one overarching national trade body, well representing all segments of the MHIndustry!
Or, once again, failing this radical change….

Yes, change often does hurt, and radical change more so. But so does childbirth and….

We’re way past time to segue from ‘trailers’, to being conventional affordable housing!

76 years is more than double the total length of employment of MHI’s last four presidents

Can I help it if some ‘talk funny’ is an effort to scribe more substance with fewer words?

Partnership caution is accurate, but they also work well; as with my 30 year business one!

Consensus building & issue confrontation, as in good cop – bad cop, can work together

It shouldn’t take something like the MHInitiative® to get radical change moving, but…

It will be a welcome change, to see politicians & HUD regulators, twist in their own wind

See what I mean? How can YOU; how can our salaried and elected leaders at the national trade body level, not want to effect ‘Radical Change at the Manufactured Housing Institute’, when there’re so many very good reasons for doing so NOW?!

II.

Who Might Lead This New Partnership Team?

This is a tricky journalistic juxtaposition to articulate effectively. Huh? Well, you see, I haven’t reached out to any of these individuals – and they do all happen to be male, I’ll give you that much – to learn if they’d even be interested in being, in effect, the ‘business savior of the manufactured housing industry’. So, with that caveat in mind – and the knowledge that ‘to a man’ they’re successful, MHExperienced, even a role model association exec; all who’re, in my opinion, well – qualified to be MHI’s board chairman’s ‘man in Washington, DC’. Here’re your hints:

• Acclaimed by many, as the most visionary factory – built housing producer ever; equally comfortable fabricating modular, HUD Code, and other types of housing.

• Most veteran of all landlease community owners in private and public sectors.

• Widespread, earned reputation as ‘association executive’s association executive’.

• ‘Dark horse’ of manufactured housing, with 40+ years of national assn. expertise.

But know what? Given our industry and asset class’ long and earned reputation for in – fighting amongst ourselves, and perennial resistance to change from ‘both within & without’ the production and post production segments of manufactured housing, it’ll take someone – possibly not anyone on the above list, willing to risk their good reputation to take on ‘Radical Change at the Manufactured Housing Institute.’ No question about it; this will not be an easy job, and getting the strong personalities recommended to run the ‘two sides of the house’, to work effectively together and with MHI membership, will be daunting at best, maybe impossible, at worst. But is there another practical answer to ‘Save Our Industry?!’ I think NOT, but if you think SO, now is the time to step forward to be heard, and make your suggestion(s) known! Otherwise, we’ll talk about it at the MHInitiative® in 2012.

How to be heard? Respond to either this blog posting, via gfa7156@aol.com or the only MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or correspond to GFA c/o Box # 47024, Indpls, IN. 46247. Or frankly, scroll back to last week’s posting in this website’s blog archive, to ‘Time for Radical Change….’ and send your email comments to one or more of the five MHIndustry leaders listed at the very end of said posting. Also, contact executives at MHI (703) 558-0600 or MHARR (202) 783-4087 directly.

III.

Late Commentator Paul Harvey, & MHI’s ‘Water Sprinkler’ Proposal to the MHCC

Like me, you probably miss hearing the late Paul Harvey say, at the end of his radio stories, “And that, my friends, is the Rest of the Story!” Well, it appears we have a Paul Harvey – like story developing within the manufactured housing industry and landlease community realty asset class. If you’ve been reading this blog during the past several weeks, you already know of the Manufactured Housing Institute’s proposal, relative to ‘water sprinkler’ installation in new manufactured homes, offered to HUD’s Manufactured Housing Consensus Committee (‘MHCC’).

MHI’s commentary to date has related solely to the effect said proposal might have, and might not have, relative to manufactured housing’s present federal preemption and local building codes. See MHI’s VP Lois Starkey’s article, on the subject, in the current issue of the NCC’s Community Connections Fall newsletter. And this from the aforementioned written record of MHI’s 15 November conference call with state MHAssociation execs: “Fire (sic) sprinklers. The MHCC voted on this and a proposal was put forward to HUD that they much change their pre – emption policy on fire (sic) sprinklers. Fire (sic) sprinklers should not be required. Some local governments have acted in the absence of HUD not acting.”

But there may be more to the situation than what’s being publicly addressed by MHI and it’s National Communities Council (‘NCC’) division. What is a landlease community owner to do, in the foreseeable future, if and when a ‘water sprinkler’ equipped manufactured home arrives on – site to be installed, and it turns out the underground water supply system, by dint of design and or age, is undersized and unable to support the emergency need for greater water volume and pressure, in the event of a fire in this fire suppression – equipped home? Think about it. Apparently no one else is….

Why? There’re several possible reasons little – to – nothing is being said or done, within the MHI/NCC ‘family’, to retract this short – sighted ‘water sprinkler’ installation proposal to HUD’s MHCC:

• One maybe has to do with quiet proprietary desire, or even need, on the part of one or more home manufacturer(s), to ship new manufactured homes into local housing markets, mainly out West at present, where in – home water sprinklers are already mandated by local building codes.

• Another maybe has to do with executive property managers in leadership positions, not rocking MHI’s PC (‘political correctness’) boat; in effect, disregarding landlease community owners’ concern about future liability if their property(ies) infrastructure is unable to support homes equipped with fire suppression systems requiring greater water pressure and volume than normal.

• Another maybe has to do with property owners and investors who plan to divest themselves of their landlease community(ies) assets in the near or not too distant future, hence avoiding this potential liability issue altogether.

At this point, I’ve done all I can do to bring this matter to your attention. Anything further will have to, evidently, come from the grassroots of the MHIndustry & LLCommunity asset class, most likely via state MHAssociations affiliated with MHI and it’s NCC division. I’ve already corresponded, as a direct, dues – paying member of the NCC, and as an NCC board member, but have been stonewalled in this manner:

“Thayer responded to you at the end of October with MHI (sic) position and an update.”

True. But neither Thayer’s response or subsequent update, acknowledged the ‘water sprinkler’ proposal’s potential to increase LLCommunity owner liability in the future.

IV.

Beware the Uniform Law Commission’s Effort to Eliminate MHTitles!

To begin with, go to MHI’s website: manufacturedhousing.org and access the National Communities Council division’s Fall newsletter, Community Connections. There read the article titled: ‘Proposed ULC Manufactured Home Titling Act’, by Marc Lifset, esquire, of McGlinchey Stafford law firm. Here’re a few salient passages from that article. Not a member of MHI or its’ NCC division? Phone (703) 558-0666.

What’s the hullabaloo about? ‘The Act as currently drafted would establish a new method of titling, conveying and encumbering manufactured homes, including pre – HUD Code Homes…all first retail sales of Homes must be documented by a statutory form of manufactured home deed recorded in the property records…the Home becomes real property when it is ‘installed’ on land (“The Act defines ‘installed’ as when ‘the wheels & axles…have been removed and the home has electricity supplied by a utility or by any other means…’.”). At that time the Home would convert from personal property to real property ‘for all purposes.’” – Whether the manufactured Home is located outside and or within a landlease community? Ah, one of the unresolved major issues of this proposed legislation.

Proposed legislation? You bet. Politically savvy manufactured housing industry aficionados have sufficient reason to believe seven states have been targeted to effect this new uniform law; one Midwest state in particular. Legislation’s stated purpose? In part, to “…increase the availability of reasonably priced financing for Homes now conveyed and encumbered as personal property…” and much more. Not surprisingly, one of the largest lending institutions (banks) in the U.S. is quietly promoting this legislation, that has as many profoundly counter – productive consequences (i.e. homes sited in landlease communities likely to be taxed as their realty – secured counterparts outside the leasehold property, even though the leasehold property owner already pays high local real estate taxes for the improved real estate) as its’ stated purposes!

In this veteran industry observer’s opinion, this is an insidious assault on our unique type factory – built affordable housing (i.e. HUD Code manufactured housing) shelter alternative; and its’ related, generally inexpensive family and adult lifestyle (i.e. landlease communities) opportunities, that we provide for hundreds of thousands of homeowners and homesite lessees throughout the U.S. It’s also apparent, naïve and ill – informed academics, some local government agencies and regulators, short – sighted consumer advocates, and wishy-washy politicians, find this sort of idealism cum contretemps irresistible, and worth the wasting of time and other resources.

So, ensure your state MHAssociation is well aware – and educated, concerning this soon to be national uniform law initiative, changing the titling, conveying and encumbering of all manufactured homes, including pre – HUD Code Homes! And remember, you first read about it here.

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Time for Radical Change at the Manufactured Housing Institute

This won’t take long or much space to describe here, so let’s get started…

First. With annual new home shipment volume at a 60 year nadir for three consecutive years thru 2011; and, only cherry picking independent third party chattel financing available for new HUD Code homes, many would agree it’s time for some sort of radical change in and or about the HUD Code manufactured housing industry! We’re no longer a healthy business model, but rather a made – for – TV ‘SURVIVAL’ episode. And there’s certainly little help or change on the horizon, if the USA Today newspaper front page story, on 9 November 2011 has it right:

“Foreclosure sales are moving so slowly in half of the states that, at the current pace, it will take more than eight years on average, to clear the 2.1 million homes in foreclosure, or with seriously delinquent mortgages, new research shows.” (&) “The backlog suggests the fallout from the nation’s worst housing market collapse is likely to weigh on real estate prices in many markets for years to come.”

Second. The Manufactured Housing Institute (‘MHI’) just lost the best president and CEO it’s ever had. Wanna guess the reason? A hint. Starts with the letter ‘$’. And now, MHI’s board is supposedly seeking his successor. I say ‘supposedly’ because, as a direct dues – paying member of the institute, I’ve not heard or read anything announcing the appointment of an ‘executive search committee’. Have you? Didn’t think so. And it’s because of this observation, and content of the two preceding paragraphs, I’m bold to propose the following ‘Radical Change at the Manufactured Housing Institute’:

Finally merge the Manufactured Housing Association for Regulatory Reform (a.k.a. MHARR) with MHI; yes indeed, and make Danny Ghorbani executive – in – charge of all home manufacturing/distribution matters; and yours truly, George Allen, executive – in – charge of all landlease community owner/operator affairs! And atop that new HUD Code manufactured housing and landlease community pyramid, position the present day board chairman – or his handpicked designee, to lead both major segments of the now equal and new relationship between, what some have described our historically disparate state of affairs as being, the ‘production & post production’ divisions cum partnership!

Know what else I’d do? Challenge those two new ‘executives – in – charge’ of this new, as yet unnamed national manufactured housing and landlease community advocacy partnership (I suggest Affordable Manufactured Housing Alliance or AMHA), to offset their six figure salaries with new membership dues from newly recruited members directly joining their respective ‘production & post production’ halves of the organization! Can’t meet that heady goal in 12 months time? Replace em!

There’s much more to this ‘Radical Change at the Manufactured Housing Institute’ proposal, but nearly enough penned in this blog posting. Next week? How ‘bout The Top 10 Tongue – in – Cheek Reasons NOT to effect this ‘Radical Change at the Manufactured Housing Institute’ (with apologies to David Letterman). For example: ‘Danny Ghorbani has only 43 years of manufactured housing experience.’ And the chairman’s hand – picked designee? I can think of at least four strong candidates. Will hint at their identity as well.

A further thought. What effect would my ‘joining MHI’s new partnership’ have on David Funk and our plans to launch the new, national not for profit Center for Manufactured & Affordable Housing Research & Resources? Think about it. There’s no reason the 50,000 landlease communities asset class can’t “Have its’ cake (i.e. Effective national political & regulatory advocacy) and eat it too (i.e. Enjoy the same statistics gathering, print & online communication, interpersonal networking, and property management training & certification resources it has today and will likely have tomorrow)!’ With that said, it’s fair and accurate to posit: ‘Never again will this unique and timely radical change opportunity, to unite and prosper together, present itself to the manufactured housing industry & landlease community realty asset class!’ What do you say we ‘Carpe diem!’ ?, as in ‘Seize the Day!’

Where does all this leave us? That’s up to you! This blog posting reaches 500 manufactured housing and landlease community aficionados every weekend. At this point, I’ve done my part: Presented a plan for ‘Radical Change at the Manufactured Housing Institute’. And not as an outsider, but as a longtime direct, dues – paying member of the institute, and founding – as well as present – elected board member of its’ 15 year old National Communities Council (‘NCC’) division. If you too are a direct, or even a Certified Member, of MHI, and this plan for ‘Radical Change at the Manufactured Housing Institute’ goes no further, you’ll have only yourself to blame. Because, after the dust settles, during and after discussions, and either implementation or rejection of said plan and change, business life will certainly ‘go on’ for all of us, until….

Again, plans for my future business emphasis and succession are in place, and will likely continue. All I’m saying is, I’m willing and ready – if sincerely asked, to be an integral part of ‘Radical Change at the Manufactured Housing Institute’, IF it means SURVIVAL for the MHIndustry & LLCommunity asset class! And contrary to ‘rumors on the street’, there are no plans whatsoever, at this time and where I’m concerned, to spawn a new post production national advocacy body, the recently announced MHInitiative (nee National State of the Asset Class or NSAC caucus series) notwithstanding! Can’t say or pen it any plainer than that.

Finally, look at it this way; actually, two ways. Almost any radical change and new partnership (i.e. between the manufacturing/distribution & landlease community segments) at MHI, works better than the unbalanced industry segment representation and dysfunctional advocacy contretemps in effect today! And now YOU can’t say, ever again, you have not been challenged to be a radical change catalyst. What will YOU do with the opportunity?

Your input, as always, is welcome here, via gfa7156@aol.com or the only MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or write to me via GFA c/o Box # 47024, Indianapolis, IN. 46247.

Who else might you contact about Radical Change at MHI? Here’re some alternatives:

Manufactured Housing Institute: info@mfghome.org
Manufactured Housing Association for Regulatory Reform: dannyghorbani@aol.com
MHI Chairman Joe Stegmayer: joes@cavco.com
NCC Chairman Steve Schaub: sschaub@yescommunities.com
MHARR Chairman John Bostick: jbostick@sunshinehomes-inc.com

***

George Allen, CPM®Emeritus & MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

MHIndustry needs a good muckraking* journalist…. Why?

(And it’s not going to be me!) Why?

Well there are indeed answers, of sorts, to both questions.

* What’s muckraking? According to our handy Webster’s Dictionary, “…to search for and expose real or alleged corruption, scandal, or the like….”

Now for a response to the first ‘Why?’ question. For starters, too many ‘things’ occur, and yet ‘some’ don’t happen, legislatively and leadership wise, in the manufactured housing industry at large, and landlease community asset class in particular, that go unresearched and parsed in detail, let alone reported to the general factory – built housing and realty business public, by independent third party news and investigative sources. In effect, our culprits are enabled to hide till their next faux pas.

Some examples. Recall how the Manufactured Housing Improvement Act of 2000 (This was passed to give our unique housing type parity with site – built housing!), after 11 long years, is still NOT fully implemented; then, how the S.A.F.E. Act (i.e. Safe And Fair Enforcement Mortgage Licensing) was foisted on us with little to no advance warning or even fight; and finally, how we’ve been unnecessarily swept up into the onerous provisions of the Dodd – Frank Bill (According to a letter I have in my possession, penned by Congressman Barney Frank on his letterhead – one of the bill’s coauthors, stating as much!). And frankly, I could easily add other contemporary examples to this nefarious list of non – starters, non – finishers, and entrapments in between them.

Relative to landlease communities. Much of the ripe muckraking fodder here, has to do with individual companies and property portfolios. While business successes and failures, like death and taxes, are always present, you’d think folk would learn from their, and their peer’s past missteps and mistakes. But too many times they don’t; in part, because they simply ‘don’t know’ the nature and scope of said missteps and mistakes. Here’s but one example. How many of you were around, during the mid to latter 1990s, when Wall Street analysts treated our new landlease community (nee manufactured home) community real estate investment trusts (‘REIT’) as ‘growth stocks’? In essence, promoting unrealistic expectations that REIT FFOs (funds from operations) would always GROW, quarter after quarter after quarter. Did any realty trade journalists step to the fore and tell them it simply ain’t so? No! So REITs cut operating expenses where they could, then jacked homesite rents to levels they probably shouldn’t have, to satisfy those misguided, unreasonable expectations. Result? Three of six REITs have disappeared since 2003. And there’re more related tales (e.g. regulatory overkill relative to in – community installation of homes) to be told, that likely won’t be, until a skilled, well – funded trade journalist comes along, to pen our industry and asset class’ version of Gerald C. Meyers’ compendium of business failures in, When It Hits the Fan (1986).

And from time to time, there’re poorly – reported measures that cut across industry and asset class lines. Reread what was penned ‘within and between the lines’,
of blog postings at this website during the past two weeks, describing MHI’s recent, ill – advised ‘sprinkler proposal’ (a.k.a. ‘Dire effects of the Law of Unintended Consequences’) to the Manufactured Housing Consensus Committee (‘MHCC’). Not only will this proposal allow ‘HUD’s preemption – ending foot’, to get well inside manufactured housing (Think ‘conditional cum mandatory standard implementation’), but landlease community owners, likely in the future, will have to account for their property’s infrastructure inadequacy to support fire suppressing water sprinklers in manufactured homes! There’s more to this nefarious, ready – for – muckraking story. Ponder; what sole segment of the MHIndustry benefits most, in the long run, from forced building standard implementation; and, what’re the chances such ‘future benefit thinking’ precipitated this proposal to the MHCC? Also ask yourself: ‘Is anyone else, in the trade press, warning us of such potential, self – initiated disasters on our business horizon?’ The answer? “No!” An apt answer that circles back to the original question of ‘Why?’

My response to the second ‘Why?’ question; specifically, ‘Why not me?’ I’m a freelance writer and consultant whose ‘beat’ is indeed, the manufactured housing industry in general, the landlease community asset class in particular. Frankly, I rely on funding from two subscriber – supported newsletters and book sales, consulting assignments (e.g. Mystery Shopping, property ‘turnaround’ planning, and occasional covert undertakings), along with profits from hosted meetings during the course of a year, e.g. Networking Roundtable, Manufactured Housing Manager (‘MHM’) professional property management training and certification classes, and FOCUS Groups, to keep our firm solvent. Unfortunately, I no longer rely on patronage or other independent financial support from business associates, to provide the cushion needed, to research and pen stories that keep this industry and asset class fully informed; and, keep those who’d ‘take selfish advantage of both’, on their toes. As a result, much of what you used to read, learn, and apply in the past, and still need to know and consider in the present, now goes unresearched and under reported. And I see no great change to that sorry state of affairs. That’s why this industry and asset class needs a muckraker of sorts, rather than me.

An answer, of sorts, to this journalistic shortfall? Given the ever shrinking nature of the manufactured housing trade press, during the past several years, and the woeful lack of cutting edge reporting today, online and in print, YOU owe it to yourself and your business future, to be all the more diligent about what’s going on, not only in your local housing market(s), but on the broader scale as well! I believe that’s why so many of you (500 at last count) have signed – on to receive a BEBA (Blast Email Blog Alert) every Sunday, reminding you to read this blog posting. But that’s not enough! You’ve gotta reach out, and ensure you’re ‘in the know’ wherever and whenever possible.

With that said, here’s an alternative, replete with a few practical and timely examples, of how to accomplish that end. So, aside from what you just read in this blog today, and during the past few weeks, did YOU know?

• A copy of the very first White Paper researched and penned, describing and comparing similar and dissimilar home marketing and sales perspectives, of independent ‘street’ MHRetailers and in – landlease community home sales center operators, is now, this week, available to YOU, from one trade source!

• A year ago this month, a national Request for Proposal was published, to identify a successor who’d continue to effect research & statistical reports, property management training, and interpersonal networking for all landlease community owners/operators. Result of the search is now available to YOU, from one source!

• Do you realize the HUD Code manufactured housing industry has undergone several major paradigm shifts in its’ business model since the early 1970s, what they are, and how they likely affect your business today? Well, that one page retrospective document is, this week, available to YOU, from only one source!

These three timely resources and more (e.g. A new list of latest Business Development Managers (‘BDM’) marketing Community Series Homes (‘CSH’) to LLCommunities) is available in the November 2011 issue of the Allen Letter professional journal! If not already a paid subscriber, the annual rate is $134.95, and is available, by simply phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And remember, the January issue of this same newsletter will contain the 23rd annual ALLEN REPORT, a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’

Now, has all this just been a glorified promotion for the Allen Letter professional journal? Certainly ‘reads like it’, but it’s not. Rather, it’s simply letting manufactured housing and landlease community businessmen and women know where they can obtain accurate industry and asset class news, penned by a 30+ year veteran of the very same Free Enterprise endeavors in which they are presently engaged! It’s simply ‘your call’ as to how valuable or invaluable such news and information is to YOU and your business, present and future.

***

MHInitiative®. We’re taking a week or two off from talking about this tentatively planned brainstorming event, for business owners, to meet, decide, and plan ‘How to Save Our Industry?!’ in 2012, maybe 2/27/2012. If you can’t bear to wait to learn more, or want to offer helpful input, simply access the MHIndustry HOTLINE cited earlier, or email me via gfa7156@aol.com GFA

***

SHARK ATTACK!

In this day of hyper ‘industry image sensitivity’, a.k.a. political correctness or PC, it’s, in my opinion, grizzly poor taste, to describe the annual gathering of MHIndustry & LLCommunity peers, in Louisville, KY during January 2012, as being where to…

“…gather together with all the other hungry sharks and grab new business in 2012.”
Quoted from the event brochure, featuring a huge shark swallowing its’ victim whole!

While I’m all for ‘grabbing new business in 2012’, I’m NOT for being thought of as
‘an MHIndustry or LLCommunity shark out to devour future customer(s)’, as graphically depicted in the color photo on the aforementioned brochure. While I’ll certainly be present for the ‘Louisville 2012 Manufactured Housing Show’, it’ll be as ‘a businessman intent on learning how to better and best earn my customer’s business and loyalty in the year ahead.’ How ‘bout you? Hungry shark or savvy businessman or woman?

To this latter end, about earning one’s customers business and loyalty. If you own and or operate one or more landlease communities, and haven’t yet been trained and certified as a Manufactured Housing Manager®, consider participating in this excellent one day program during the Louisville MHShow! On Thursday, January 12, between 8AM and 4PM, I’ll be teaching the MHM® professional property management (‘PM’) training and certification program, in the immediate vicinity of the Kentucky State Fairgrounds (location of aforesaid Louisville MHShow). Only costs $250.00 per MHM® candidate; and remember, there’re nearly 1,000 MHM®s who now own or manage LLCommunities throughout the U.S. and Canada. And this is the only LLCommunity PM certification program taught by a Certified Property Manager® member of the prestigious Institute of Real Estate Management®, and veteran LLCommunity owner/operator. For a brochure describing the day long course content, and to register, phone (317) 346-7156.

Back to the SHARK ATTACK! op/ed stuff. Who knows, perhaps the old bromide is right after all: ‘Bad publicity is better than no publicity!’ In any event, hope to see you at the Louisville Show @ 1/11 – 13/2012; better yet, at the MHM certification class on the 12th!
For more information on the Louisville Show, phone (770) 587-3350.

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

“Shh! Be Quiet, and it all might go away.”

MHI’s ‘Sprinkler Proposal’ to the MHCC, & the NSAC – III Caucus cum MHInitiative, ‘How to Save Our Industry?!’, likely 27 February 2012.

Versus

“Step up & do ‘your part’ as an MHActivist!”

It is not too late to 1) tell HUD know what you think their Research Policies should be, going forward; 2) attend the first National Summit for Independent ‘street’ MHRetailers & in – Landlease Community Home Sales Center Operators; and, 3) participate in the 23rd annual ALLEN REPORT, a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’ And all that’s ‘just for starters….’

But FIRST, important Breaking News!

If you’re a lender or financier, of any sort or to any degree, relative to self – finance methodologies (i.e. ‘buy here – pay here’, ‘captive finance’, maybe even lease – option) of the chattel (personal property) capital variety, you’ll likely want to acquire a copy of the Rishel Consulting Group’s digest of the recently released CFPB Examiner’s Manual. This digest contains material relating only to manufactured housing. As the Consumer Finance Protection Bureau (‘CFPB’) recently opined, ‘Non – depository lenders (i.e. those described in the previous sentence) will conform to the same rules, regulations, and standards that banks and credit unions are currently subject to.’ To order this $500.00 resource, phone Donna Rishel @ (217) 899-9268. Credit card orders only.

OK, now onto the gist of this week’s blog…

I

Last week’s BEBA (Blast Email Blog Alert) read, in part: ‘Own landlease community (ies)? MUST READ MHARR’s 10/21 Update, & MHI’s 10/21 Week in Review, to learn why MHCC ‘sprinkler proposal’ puts YOU at risk of future liability…’

I’ll admit that’s a sketchy lead – in, but it was worded to spur you to action, i.e. to contact either or both national manufactured housing advocacy bodies, to request and read copies of their respective communiqués, then ponder the consequences of said ‘sprinkler proposal’ on your own. How many of you did so?

In any event, here’re excerpts from one of the subject communiqués and an email exchange I had with a representative from one of the aforementioned bodies late last week, the same day I effected the final edit to last week’s blog posting and composed the aforementioned BEBA:

• From MHARR’s Washington Update. “In a move that could ultimately open the door to an across – the – board federal fire sprinkler mandate, the Manufactured Housing Consensus Committee (‘MHCC’) at its’ October 18 – 20, 2011 meeting, voted to accept and recommend to HUD a Manufactured Housing Institute (‘MHI’) – proposed federal standard that “establishes the requirements for the installation of a fire sprinkler system in a manufactured home.” Interestingly, “The vote in favor of the sprinkler proposal came just one day after the National Fire Protection Association (‘NFPA’) was forced to concede that today’s manufactured homes are as fire – safe, and even safer, than site – built homes.”

• From an email received from MHI’s National Communities Council division VP & Executive Director Lisa Brechtel: “…there is no mandatory requirement to install fire sprinklers in manufactured homes. In fact the proposal explicitly preempts fire sprinklers. …the proposal provides a uniform, voluntary design and construction standard for fire sprinklers should a consumer choose to purchase a home with this option.” Unfortunately, this response clearly ‘misses the point’, where LLCommunity folk are concerned; if not now, likely sometime in the future.

• From an email sent, by this industry observer (and landlease community owner) to MHI and NCC executives: “This new federal statute, and the related publicity, will potentially affect those of us ‘with skin in the game as landlease (nee manufactured home) community owners’. Sure, I don’t see an immediate impact on my property. But now, if I’m prudent – and I think I am, MHI, the NCC and MHCC have collectively, put me in the position of ‘further screening’ every home move – in, whether new or resale, as to whether it has a built – in sprinkler system. And in my case, warning them my otherwise attractive, functional rental property probably can’t support their ‘fire safety system’s need for higher water volume and pressure’; in effect saying, “Would you please sign this waiver, acknowledging the inferiority of my property’s infrastructure design and capability, and accept the increased liability potential to your home, in the event it catches fire while sited here?”

Bottom line? IF the MHCC’s fire sprinkler standard remains unchanged, characterize this serious advocacy misstep to being another unfortunate, self – immolation example of the Law of Unintended Consequences!

POSTSCRIPT. As late as Friday, 26 October 2011, MHI communications continue to ignore the issue of probable consequences of having fire sprinklers in manufactured homes sited in older landlease communities.

II

MHInitiative®. Gotten used to that new Allenism term yet? By way of review of last week’s blog posting announcement, MHInitiative® is the creative moniker given the evolving scope of two National State of the Asset Class caucuses, first held 2/27/2008 in Tampa, FL., attended only by landlease community owners/operators; and one held 2/27/2009 in Elkhart, IN., attended by a near – equal number of HUD Code home manufacturers and LLCommunity folk. This time around, likely on or about 2/27/2012, and somewhere in the southern Sunbelt, an MHInitiative® is being planned, and will be hosted as a national caucus for ‘anyone in the manufactured housing industry and landlease community asset class who are bona fide business owners and senior executives’ – willing to invest personal and corporate resources (i.e. time and travel expenses) to spend 1 ½ days, or 2 ½ days if necessary, in a brainstorming session focused solely on ‘How to Save Our Industry?!’

Based on heavy reader response to last week’s blog posting debut of the MHInitiative®, along with individuals previously committed to participate, we could hold the MHInitiative® ‘tomorrow’, and count on more than 100 seriously – concerned MHIndustry & LLCommunity businessmen and women MHActivists being present!

Speaking of MHActivism….

III

Did YOU respond to HUD’s request for Public Comment on HUD’s Research Agenda, described in last week’s blog posting? Well, several of you did! You sent me copies of your correspondence. Thank You for following my ‘lead’ in this effort.

I prepared three separate commentaries; one each on the ‘Homeownership & Finance’ category, with this focus: “It’s Time for HUD to Overtly Promote the very Factory – built Housing type it has Regulated since the mid – 1970s, i.e. HUD Code Manufactured Housing!”. This was my response to ‘Rental Housing’: “Before HUD addresses this timely goal, it should step to the fore and launch a nationwide initiative, seeking consensus among housing providers, lenders and regulators, regarding ‘affordable housing’ & ‘housing affordability’ definition, description, and means of measurement.” And finally, re: ‘Communities’, I opined, “Does HUD even know what a landlease (nee manufactured home) community is? If not, now is the time to learn, as HUD seeks a ready supply of inclusive and sustainable, affordable housing communities, free from discrimination.”

And here’s the Good News for you, loyal blog floggers (readers). The deadline for ‘your submission’ is 4 November 2011. So, as soon as you’re done reading through this posting, sit down and knock out a letter to HUD USER c/o Box # 23268, Washington, DC. 20026-3178. What to say? While it’s certainly ‘up to you’, why not parrot my suggestions, that HUD not only regulate our unique factory – built housing type, but for the first time in 35 years, start to overtly promote it, as our nation’s most affordable type housing; that before HUD talks and writes about ‘affordable housing’, they should know how to define, describe and measure it; and finally, ‘discover’ LLCommunities for the desirable, even affordable lifestyle, they provide!

IV

Do YOU market and sell HUD Code manufactured homes via an independent ‘street’ MHRetail salescenter and or an in – landlease community home sales center? If so, seriously consider participating in the first ever, maybe even historic, National Summit for Independent ‘street’ MHRetailers and in – Landlease Community Home Sales Center Operators. This 2 ½ day event is being held 13 – 15 November 2011, at the Drake Hotel in downtown Chicago. For registration information, contact Bill or Chad Carr @ (800) 336-0339. I hope to see YOU there!

By the way, join me for some informal, no host, interpersonal peer networking, in the coq d’ or lounge (downstairs from the lobby) at the Drake Hotel, between 3 and 5PM Sunday afternoon, 13 November. It doesn’t matter whether you’re attending the aforementioned National Summit or not; if you happen to be in downtown Chicago that day, stop by to socialize and ‘talk shop’ with friends in the MH & LLCommunity business!

Also remember, the first public release of an extensive White Paper, on manufactured housing sales, prepared as a ‘backgrounder’ for participants in this national event, will appear as part of the November 2011 Allen Letter professional journal. To subscribe, phone, (317) 346-7156.

Hey, is it starting to get downright exciting around here, or is it just me?

V

Research and compilation of the 23rd annual ALLEN REPORT, a.k.a. ‘Who’s Who Among Landlease Community Owners/operators in North America!’ is well underway. We’re now making follow – up phone calls to portfolio ‘players’ listed in the 22nd edition, to ensure they’re ‘not left out’. SO, if YOU and or your firm owns and or fee manages five or more LLCommunities and or a total of 500+ rental homesites (in one or more properties), then YOU qualify for inclusion in this seminal collection of benchmark statistics, description of present day trends, and ‘all you ever wanted to know about our unique income – producing property type’ but didn’t know who to ask!

How to participate? Best NOW, to phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156 or email: gfa7156@aol.com What happens? I’ll fax you the standard questionnaire; you complete it ASAP; and fax it back to me via (317) 346-7158. It’s as simple as that! Hope to hear from YOU soon!

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indpls, IN. 46247 (317) 346-7156.

Input HUD’s Agenda; MHRetailers & LLCommunity Home Sales; and, NSAC Caucus movement to become MHInitiative® in 2012?

I.

Your Opportunity to Input HUD’s Research Agenda!

Thanks to Bob Brophs (pronounced Bross), retired Missouri MHRetailer and landlease community owner/operator, for bringing the following timely opportunity to our attention.

PUBLIC COMMENT ON HUD RESEARCH AGENDA

“Over the next 5 – 10 years, what we need to know to improve knowledge gaps that are affecting the execution of good housing and community development policy and practice? HUD’s Office of Policy Development & Research (‘PD&R’) is in the process of formulating its’ research agenda for the next 5 – 10 years, and would like your input. We invite you to think critically about the above question as it relates to four targeted topic areas:

Homeownership and finance. HUD’s goal = “Strengthen the Nation’s Housing Market to Bolster the Economy and Protect Consumers.”

Rental housing. HUD’s goal = Meet the Need for Quality Affordable Rental Homes.”

Housing as a platform. HUD’s goal = “Utilize Housing as a Platform for Improving the quality of Life.”

Communities. HUD’s goal = “Build Inclusive and Sustainable Communities Free From Discrimination.”

To ensure appropriate consideration, be sure to submit your ideas and suggestions in writing, no later than November 4th, 2011. Send your input to HUD USER c/o P.O. Box # 23268, Washington, D.C. 20026-3268.”

Don’t know ‘bout you, but the areas I’m seriously considering commenting on have to do with the following:

Affordable Housing. This still needs an industry – country – government wide ‘official’ working definition and description – especially if ‘more than one’ methodology (there’re presently a half dozen alternatives) is to be codified and widely communicated within and outside HUD. For more on this variegated subject, read HOUSING AFFORDOGRAPHY.

HUD Code manufactured housing. It’s way past time for HUD to actively promote the type factory – built housing it regulates! Today, HUD Code manufactured housing is the most cost effective, quality, energy efficient, non – subsidized BUT under promoted housing type in the U.S.! Again, HUD does little to popularize manufactured housing.

Landlease (nee manufactured home) communities. Given the affordability of HUD Code manufactured homes, particularly Community Series Homes (‘CSH’) designed for placement in this unique income – producing property type, AND given rental homesite rates in sync with other forms of multifamily rental communities in the same local housing markets, there is no more affordable housing lifestyle than LLCommunities!

So, are YOU now inspired to write and comment on HUD’s Research Agenda for the year ahead? I surely hope so. Remember, the DEADLINE is soon: 4 November 2011.

I also challenged an eclectic mix of the ‘five most forward – thinking and influential leaders I know’, in the HUD Code manufactured housing industry and landlease community asset class, to comment on HUD’s Research Agenda. Even offered to publish their commentaries and recommendations (to HUD) in an upcoming issue of the Allen Letter professional journal, or this weekly blog posting. Well, guess what? I’m making the very same offer to you, blog floggers (readers)! Send me your commentary to HUD on its’ Research Agenda, and I’ll do my best to get you published as well! Send your input via FAX (317) 346-7158 or email: gfa7156@aol.com or via ‘snail mail’: GFA c/o Box # 47024, Indpls, IN. 46247.

II.

Coming Soon: the first ever, National Summit for Independent ‘street’ MHRetailers & in – Landlease Community Home Salescenter Operators!

Yep, you read the headline right! On 13 – 15 November 2011, at the historic Drake Hotel in downtown Chicago, independent ‘street’ MHRetailers and landlease community owners/operators selling new and resale homes on – site, from throughout the U.S., will convene for 2 ½ days to…

Understand, negotiate, even compromise with one another, to market and sell more HUD Code manufactured homes, as well as enhance the potential for additional bottom line profits throughout both segments of the industry!

To this end, National Summit organizers and sponsors, Rainmaker Consulting, of Davenport, Iowa, researched and prepared a comprehensive eight page White Paper, identifying issues and trends keeping these parties (home manufacturing/distribution & realty development/investment) apart, rather than working together, during the past decade. White Paper authors, Bill Carr & Chad Carr, sought and received timely experiential input from Dick Moore; Ken Rishel; Jim Reitzner, MHM; Greg Harmon, MHM; and this industry observer, including several other commentators. The initial public presentation of this White Paper will be in the November issue of the Allen Letter professional journal. To subscribe, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

But the real news here is the upcoming historic National Summit for Independent ‘street’ MHRetailers and in – Landlease Community Home Salescenter Operators. Given the nature and goal of this ‘coming together’, i.e. to market and sell more manufactured homes, as well as enhance the potential for additional bottom line profits, it’s anticipated this will be a sold – out venue by the time the Sunday, 13 November convening date arrives. National Summit registrants will receive a copy of the White Paper, to orient their discussions at the National Summit begins. If a ‘street MHRetailer’ or ‘LLCommunity sales center operator’, are YOU registered yet? To do so, and or request additional information, contact Rainmaker via (800) 336-0339 or email gill@getrain.com

III.

NSAC Caucus Movement of 2008 & 9 to become MHInitiative® in 2012?

Given the successful – and evolving scope of the National State of the Asset Class (‘NSAC’) caucuses @ 2/27/2008 in Tampa, FL. & 2/27/2009 in Elkhart, IN., year 2012 appears to be when all segments of the HUD Code manufactured housing industry and landlease community asset class, ‘come together’ to collectively discuss and figure out ‘How to Save Our Industry?!’

Remember? The NSAC – I caucus involved LLCommunity owners/operators only, gathering from throughout the U.S.. The NSAC – II caucus, however, included HUD Code home manufacturers and LLCommunity folk! And now, the NSAC – III caucus, following an intentional two year hiatus – awaiting MHIndustry leaders to ‘come to our collective rescue’; and, given a broader ‘caucus’ scope affecting all segments of the MHIndustry and LLCommunity asset class – warrants a more inclusive moniker, that of MHInitiative®. As a related aside; summaries of NSAC caucuses I & II, including positive measures adopted therein, are contained in Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, available from PMN Publishing for $24.95 (postpaid) via the MHIndustry HOTLINE mentioned earlier.

Why the semi – acronym MHInitiative®? Well, anyone who’s read my books, newsletters, magazine columns and features since 1988, is familiar with the many Allenisms® I’ve created during the past two plus decades. Here’re some that have endured the test of time: MHIndustry, short obviously, for ‘manufactured housing industry’; then MOPHEAD (a proword for ‘Manufactured Housing Opinion/Editorial), a column I used to pen for The Journal; likewise, MHRetailers and LLCommunity (Latter has replaced MHCommunity, both semi – acronyms, respectively, for landlease community and manufactured home community); also MHActivist; and, this ‘play on words – or abbreviations’, for our two national advocacy bodies: ‘MHI (‘MY’) MHARRvelous Dream for the MHIndustry!’ (Title of a past blog posting); then there was manufractured housing – recognizing our industry’s nadir of new home shipments. Even the ‘Ah Ha! & Uh Oh!’ label for our popular housing price calculation worksheet is an Allenism®, by dint of ‘Ah Ha’ being an apt abbreviation for ‘affordable housing & housing affordabilty’ (Thanks to Creighton Weber of Wells Fargo for that suggestion!), while ‘Uh Oh!’ is the understandable exclamation of a homebuyer when he or she realizes they’ve purchased more home than they can afford! And the list goes on….

So, what’re the plans for a MHInitiative® caucus in early 2012? Well, they’re still, as we say, ‘on the drawing board’. But it’s already been suggested the initial MHInitiative®, with its’ goal to decide ‘How to Save Our Industry?!’, be scheduled for 2/27/2012 – continuing a triparte (‘Good Luck’?) date pattern begun five years ago in 2008. While there’s already another meeting scheduled on that date, given the unique nature and goal of this MHInitiative® caucus, i.e. ‘How to Save Our Industry?!’, it’s doubtful many seriously interested stakeholders (e.g. business owners) will overlap.

Does this MHInitiative® caucus, across all MHIndustry segment lines, interest and excite you? Seriously enough, to respond to this preliminary announcement with encouragement, even commitment, to attend a 1 ½ day – or longer meeting, in a warm climate, during late February 2012? If so, now’s the time to add your name to the 75+/- names of individuals already committed to caucus, discuss and plan via brainstorming and other creative – yet – practical methods for improved and effective industry planning, ‘How to Save Our Industry?!’ Ask yourself: “If this MHInitiative® caucus doesn’t take such a vital and historic step NOW, in early 2012, WHO will do so & WHEN?” The answer? ‘Likely, no one, ever!’

So, the choice is: Do NOTHING and hope the MHIndustry doesn’t’ die, and LLCommunities decline further; OR, as a business owner, invest the necessary resources to examine the challenges facing our industry and asset class, with an eye to identifying solutions; then going about implementing same, when and where possible, with whomever can ‘get the job done’! Finally, if you’re bona fide business stakeholder in the manufactured housing industry and or landlease community real estate asset class, and related industry segments, communicate your interest and commitment via (317) 346-7156 or email: gfa7156@aol.com If not, please pass this announcement onto the head of the firm for which you work!

***

George Allen, CPM®Emeritus, MHM®Master Box # 47024
Consultant to the Factory – built Housing Industry & Indianapolis, IN. 46247
The Landlease Community Real Estate Asset Class (317) 346-7156

Potpourri of U.S. Congress, MHI, NSAC III and $ Primer
Matters – & More….

I.

Congressional Research Service Prepares Report on MHIndustry!

During mid September 2011, an Analyst in Housing Policy, for the Congressional Research Service, contacted this manufactured housing industry and landlease community asset class observer and author, for assistance in editing and fine – tuning their DRAFT report titled: ‘The Manufactured Housing Industry: An Overview’.

This 20+/- page DRAFT report defines manufactured housing and describes the HUD Manufactured Housing Standards Program; followed by characterizations of Dealers (Recommended this be changed to ‘retailers’) and manufactured home communities (Recommended this be changed to landlease communities). Much of said DRAFT report deals with HUD Title I loans, VA – loan guarantees & RHS loans, as well as expected effects of the S.A.F.E. and Dodd-Frank Acts on the MHIndustry. Report also describes markets served by our industry, trends in shipments during the past several decades, and ‘problems’ with manufactured homes, relative to site preparation and installation, plumbing and moisture, heating and air conditioning, and more.

The area I took strongest exception to, was the analyst’s inclusion of what I viewed as questionable information from IBISWorld Special Reports. Remember them? The first one, titled ‘Dying Industries’, included their view of MHRetailers, was distributed in March 2011. At the time, I’d read and critiqued it heavily – but to date, haven’t received the courtesy of a reply from the publisher, whose motto incidentally, is ‘Where Knowledge is Power’ – even when their ‘knowledge’ is inaccurate and or incomplete. The second one, distributed in September 2011, has to do with ‘Land Leasing in US’ – was also, in my opinion, awash in flaws relative to our unique income – producing property type. Haven’t responded in writing, to that one. After all, why waste time penning a critique to a publisher who’s already demonstrated an intransigent nature.

So, when will YOU get to read ‘The Manufactured Housing Industry: An Overview’? I have no idea – if ever. But my ‘take’ on the matter is, this report was requested by Congress, as more and more Congressmen recognize the reactionary and ill – advised S.A.F.E. & Dodd-Frank Acts have effected business – killing strangleholds on the sole remaining sources of truly affordable housing (i.e. factory – built housing in general, and HUD Code manufactured housing in particular), as well as the most affordable, non – subsidized housing lifestyle (i.e. landlease, nee manufactured home, community living) left in the United States today! Let’s hope all Congressmen read ‘The Manufactured Housing Industry: An Overview’, and come to our rescue with regulatory relief, stimulating new housing production and shipments, creating thousands of new jobs along the way, as closed factories reopen! For that matter, why not help this thought materialize, by printing off and sending this blog posting, to your Congressman ASAP!

As a related aside; it’s already been observed on several fronts, the Congressional Research Service seeking input from the fledgling national, not for profit, Center for Manufactured Housing Research (Or whatever it winds up being named during the months ahead), is tacit recognition of and support for, third party, nonpartisan, academically – based industry and asset class research that’s only existed sporadically, for manufactured housing and landlease communities, during their 60+ year history! All the more reason for YOU to get aboard NOW, in support of this much – needed research and resource center, going into 2012. If you haven’t already done so, make your moral and financial support known, by responding to this blog posting via gfa7156@aol.com or via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. To date, more than a dozen LLCommunity portfolio owners/operators, and senior manufactured housing industry executives, have stepped forward in this fashion! Let’s continue to make MHIndustry & LLCommunity history together….

II.

Results of MHI Survey of Attendees @ its’ Annual Meeting, & More…

Nearly half the 110 registrants attending this year’s Manufactured Housing Institute annual meeting completed and submitted two page questionnaires soliciting input relative to the State of the Manufactured Housing Industry. Here’s a brief summary of results displayed during a Power Point Presentation the final morning of that three day session. Nature of respondents? 27% = suppliers; 22% = association executives; 13% = HUD Code home manufacturers; 11 = finance – related; and 9% each for LLCommunity reps, MHRetailers, and ‘others’.

Advantages of factory – built housing? 22% said price; 21%, time to completion; and 19% each for opted for quality, design, amenities, and lifestyle.

What’s greatest impediment to increasing factory – built home sales? High employment cited by 21%; then, 20% each for financing, image, and consumer credit problems; and consumer confidence came in at 19%

What will happen in the overall new – home market during the next two years? 60% believe it’ll ‘stay about the same’; 28% think it’ll ‘improve’; and 12% say it’ll ‘decline’. What do YOU think?

Do you think our (national) market share will increase during the next two years? 52% indicated NO, and 47% indicated YES.

Will homeownership continue to be as a big priority for new generations entering the housing market and forming new families? 61% said YES, and 38% said NO.

Well, there you have it. As one who took much time to complete the lengthy, detailed questionnaire, I was disappointed there wasn’t ‘more’ to this summary. Perhaps MHI staff plans to publish additional insights, in one or another of their communiqués, during the weeks and months ahead. Let’s hope so. But then again, maybe not.

On a different, but related MHI subject. Are you, like me, one of those direct, dues – paying members, who see MHI as a ‘manufacturer dominated institute’, but wonder if change might be afoot? We’ve all heard the bromide: ‘Follow the money!’ No ‘diff’ here. During year 2010, 55% of all ‘dues revenue’ was paid by the Manufacturers Division (I believe that percentage as high, or higher, than 75% during 1990s heyday); and 18% of ‘dues revenue’ now comes from the National Communities Council Division (up from 0% before NCC was founded @ 1/1/1996); with 12% from the Suppliers Division; 8% from the Financial Services Division; and 7% from State Association dues. This data obtained from MHI’s 2012 Proposed Budget. Now you know…

III.

Work on 2nd Edition of Manufactured Housing $$$ Primer Begins

Last year’s best – selling manufactured housing – related book, the Manufactured Housing $$$ Primer is nearly out – of – stock, and in need of updating (i.e. addition of How To information regarding lease option self – finance methodology, renting homes on – site, and more) and expansion (i.e. inclusion of new resources and firms relative to chattel and land/home finance mortgage origination, as well as loan servicing). You may recall this was the first book ever published, describing chattel (personal property) financing as it relates to HUD Code manufactured housing, especially those sited on rental homesites in landlease (nee manufactured home) communities. Do YOU have a copy? If not, you might be able to snag one of the few dozen remaining copies, for only $19.95 (postpaid), by phoning PMN Publishing via (317) 346-7156.

Letters went out this week to the nearly two dozen MHIndustry writers who contributed manuscripts for the first edition of the Manufactured Housing $$$ Primer; along with ‘invitations to participate’, to a half dozen or so new writers. And this is where YOU might come into the picture. If you’re presently and actively involved in one or another aspect of chattel finance (e.g. as a loan originator, independent third part lender, servicer; and or LLCommunity owner engaged in self – finance on – site) and would like to be considered for participation in this second edition, pen correspondence to me, describing the aspect you feel most qualified to write about – and explain why. One particular topic I’d like to address, this time around, is the effect of having ‘park – owned homes’ on – site, either as ‘rentals’ or ‘contract sale’ units, relative to when one (the LLCommunity owner) decides to refinance or market the income – producing property ‘for sale’. Any takers? We really would like to increase participation in this industry wide educational project. OK to email your communiqué, or mail it to GFA c/o Box # 47024, Indianapolis, IN. 46247. Deadline? Soon! The end of This Week, 21 October 2011. Once the new writing team is formed, we’ll set reasonable manuscript submission deadlines.

IV.

And Here’s What Your Peers Have to Say, via Email, about MHBusiness….

“I’d like to bring up what I feel is a major issue in our MHIndustry. That is, all our Seniors. My major market has been Seniors since I got involved back in 1976. They buy our homes for cash, have excellent credit, pay on time, are easy to manage, and stay until something bad happens to their health. But with all the new Senior complexes being built, I’ve lost a major portion of my Seniors market. I cannot compete with them.” Anyone else facing this challenge, and have suggestions for this fellow LLCommunity owner? With enough helpful response, we’ll build a future blog posting around this hot topic.

“How we find and provide (manufactured) houses is where everyone is going in different directions. But is that a bad thing? And does that mean the industry is dying? I am not sure it means that. But what it does mean, is the business is not as profitable as it used to be, when we factor back in, the capital costs of buying the homes, whether new or used. And since it’s now difficult, or certainly less profitable, to do self – financing, that makes it harder to recycle one’s capital to acquire more houses and or communities. So, we do ‘rentals’ to get our capital costs back faster. The industry is evolving, not dying.” DH Does your experience mirror this owner/operator; or do you have a different ‘take’ on the matter? Let’s hear from you ‘renter’ aficionados out there? Another hot blog topic?

“As to a third national grassroots caucus of manufactured housing and landlease community stakeholders, meeting in late January or early February 2012, YES, I would participate, and bring along one or two business associates from the Pacific Northwest. We need to ‘Save Our Industry!’” GH Here the writer is talking of anticipated plans to host National State of the Asset Class III. Long time blog readers will recall NSAC – I, was held on 2/27/08 at FountainView LLCommunity in Tampa, FL. Want to be involved in planning and ‘spreading the word’ about this timely and strategic brainstorming session? Let me know, via any of the means described earlier in this blog posting. By the way, who remembers the tangible result of a national brainstorming session held in Indianapolis, IN., on 8/31/1993? Answer: Formation of the Industry Steering Committee (‘ISC’) predecessor, to today’s National Communities Council (‘NCC’) division of the Manufactured Housing Institute (‘MHI’). Brainstorming works, so let’s do it again!

Pertaining to the identification and recruitment of private investors to supply working capital for self – financing new and resale home sales on – site in landlease communities. “It’s been done for years, but everyone has played their cards so close to their vest, afraid to disclose the names of investors they’re dealing with, etc.. With other (independent, third party) financing alternatives unavailable, or too onerous to deal with (Need I identify those firms who’ve, as one wag puts it, ‘Taken all the risk out of lending chattel monies to landlease community owners.’? GFA), a widespread private investor program could be a huge success, maybe even part of the salvation of our MHIndustry. Also, it dovetails nicely with lease option financing.” (edited) SR. and know what? Ken Rishel of Rishel Consulting, teaches LLCommunity owners, and independent MHRetailers how to do this – raise private capital to underwrite chattel loans. Call (217) 971-3968 for info.

“Hope (industry) events lead to ‘new’ turks taking the lead, and the ‘old’ turks bowing out.” NB ‘Reacting as a bona fide old turk, “Ouch!”’ But I do understand the sentiment. However, a counter to that thought is, ‘a woeful lack of experience’ on the part of many, if not most, New Turks – described in this blog posting a couple weeks ago. Here’s but one example: Rental units (manufactured homes) on – site in landlease communities. To a man (& woman), every Young Turk I talk to, thinks ‘rentals’ are a new and exciting business model for filling vacant rental homesites! First off; the concept is not new – it’s how we filled tens of thousands of vacant ‘lots’ back in the 1970s, then converted them to ‘contract sales’ when the time came to market the properties ‘for sale’. We often rented 14X70 duplex model homes, with a family living in each end of the home! No, ‘rentals’ are not new, but Yes, they can be exciting. But mostly in a negative ways, when one opts to ‘work harder, not smarter’, collecting rent by the month (Rather than by the week, like many of us did in the 1970s), then spend a whale of a lot more money on the maintenance ‘get ready’ of rental units, plus management time to oversee an ‘apartment community’.

“When you were born, you cried and the world rejoiced. Live your life, so that when you die, you will rejoice and the world will cry.” DW A personal and heartfelt response, by a ‘friend in the MHBusiness’ upon reading last week’s ‘Dreamin’ blog posting.

Here’s something we don’t see every day! FALLING PRICES on new HUD Code homes! ‘Our Sale Ends Monday, October 17th, 2011.’ So proclaims the internet flyer recently received from Eric Steadman, website correspondent with Factory Expo Home Centers. For details, call (800) 965-6821. Think this outfit is out of Chandler, AZ. If interested, phone Eric on Monday – that’s tomorrow, to beat the home sale deadline!

V.

Jonathan Douglas Sharp (Jon Sharp to his buddies) of Onyx Capital, succumbed to cancer on 11 October 2011. He will be long missed!

Thanks to several of you, for bringing this sad occasion to my attention. Want to read more of Jon’s saga? Go to www.jonathansharpnews.com

&

Kristian Jensen, Jr., ACM®, 2nd generation owner/operator of landlease community portfolio Jensens, Inc., a longtime supporter of MHI, has died.

For a detailed summary of his service to our industry and asset class, read MHI’s current Week in Review on line. More than likely, his son, Kristian Jensen, III, ACM® succeeds.

***

George Allen, CPM®Emeritus, MHM®Master Box # 47024
Consultant to the Factory – built Housing Industry & Indianapolis, IN. 46247
The Landlease Community Real Estate Asset Class (317) 346-7156

I.

Dreamin…

It’s been a day and a half of meeting after meeting after meeting. The Manufactured Housing Executives Council (‘MHEC’) was certainly interesting. Despite a couple state execs monopolizing conversation, we learned of the renewed business model (circa 1970s) utilizing ‘rental units on – site’ in landlease communities in Florida. And Massachusetts is considering opening its’ membership rolls to resident – owned (i.e. ‘co – ops’) LLCommunities there. West Virginia is rewriting ‘park rules & regs’ for the first time since 1971; and the heretofore inspiring regional marketing program, Northwest Pride, is in limbo for now. Wisconsin doubled its’ ‘unit dues’ by banking voluntary assessments of $75.00 per resale home sold in that state. And New York continues to bank non – dues revenue by facilitating installation and professional property management certification (‘Manufactured Housing Manager’) classes, as well as profitable annual Super Symposiums! Most memorable ‘quote of the day’ was voiced, when discussing errant software suppliers who, “Sell you the dream and service the nightmare – for a big price!”

National Communities Council? As usual, the most heavily attended session of the 17 scheduled at this year’s MHI’s annual meeting in Phoenix., with 58 of the 110 registrants present. An attempt to gauge “How do you feel about the idea of an image campaign?” (&) “…name one thing you would deem a TOP PRIORITY for the NCC to work on…” was a non – starter! One simply can’t ask 58 individuals to speak, even for a minute apiece – on these, or any other subject, and conduct a 1 ½ hour business meeting. After giving the S.A.F.E. Act & Dodd – Frank regulatory imbroglios their due, Spencer Roane, from Georgia, challenged the NCC to research, then educate LLCommunity owners and operators about ‘lease – option financing’. For information on this topic, go to LeaseOptonMHSales.com or phone (678) 428-0212. A Community Attributes System (‘CAS’) Task Force was formed, to update and improve that underutilized resource. A contrarian quote, heard at the NCC meeting, came out like this: “Stop being all things to all people and get back to the trailer business!” Huh? Maybe a kernel of truth in there?

Onto the Awards Dinner, sponsored by Triad Financial Services, in Grande Ballroom Salons ABE. “Hmm. Maybe shoulda taken a nap this afternoon. Why am I so very tired all of a sudden? Oh well, dinner’s over and the awards program starts soon….
ZZZZZZ…”

‘Tonight’s Chairman’s award goes to an MHI member who’s been in the manufactured housing and landlease community business for more than three decades.’

‘Besides earning bona fides as an on – site and regional property manager, and as a present day community owner, this person has enriched the business experiences of his peers, throughout the U.S. and Canada, in many ways.’

‘For more than two decades, this individual has researched and published, frequently at his/her expense, key benchmark statistics which, since the early 1990s, have positioned landlease communities as viable and valuable real estate investment alternatives in private and public markets. Over the years, this person has authored, co – authored, and edited ten books on various aspects of management, manufactured housing, ‘affordable housing’, housing finance, & the landlease communities.’

‘For more than 21 years, this landlease community owner has penned, printed and published monthly newsletters, magazine columns, features, and editorials for colleagues, informing them of trade news, upcoming industry events, ‘How To’ effect various property management methodologies, and much much more.’

‘For two decades, this individual and his family members, have hosted annual national gatherings, at resort hotels throughout the U.S., for property owners and portfolio operators, providing top notch education, interpersonal networking, and incomparable deal – making opportunities.’

‘This person is also the co – founder of no fewer than three national trade and advocacy bodies, for landlease communities in the U.S. and Canada; has served on the governing boards of two state manufactured housing trade associations; and served as state president of a professional real estate management organization.’

‘For more than a decade, this individual has shared professional property management expertise and experience with landlease community owners/operators throughout North America, personally training and certifying nearly 1,000 Manufactured Housing Managers to date.’

‘And twice, during the past several years, this individual has convened national caucuses for landlease community colleagues, on one hand; and HUD Code home manufacturers, on the other, to discuss industry and asset class issues, then achieving consensus, relative to ‘conduct of business going forward’ on one hand; and, the need for new manufactured homes designed for in – community marketing, sales and siting.’

‘Finally, this individual has been feted by the Institute of Real Estate Management as an Emeritus member, inducted into the RV/MH Heritage Foundation’s prestigious Hall of Fame, and honored as manufactured housing’s ‘Industry Person of the Year’.’

‘Most significant of all, this person has been married for more than 45 years, is blessed with two adult children – successful business entrepreneurs in their own right, six grandchildren – one of whom is a U.S. Marine, and two great grandchildren! And is one of the few MHI members who’ve been decorated for leadership in combat during the Vietnam War, and service during Desert Storm.’

‘So, at this time, join me in honoring one of our colleagues, with this year’s Chairman’s Award!’

“Umph. Musta dozed off. Hmm. What’s all the clapping about? Oh, they’ve just announced this year’s Chairman’s Award. Who is it? Oh, Tim Williams, President of 21st Mortgage Corporation in Knoxville, TN.! Good man, Tim! OK, now we’re all gonna stand. Good, need to stretch and get awake here. Man, that was some dream….”

And I’ve reconciled myself to the fact it will always be that, a dream.

***

II.

Then There’s Stark Reality

Step II of the three step, ‘How to Save Our Industry?!’ sequence has occurred.

If a regular reader of this weekly blog posting, you know Step I happened in mid – September, at the 20th International Networking Roundtable in San Antonio, TX., In large part, Step II was the public announcement of plans to launch a new national not for profit platform, to ensure continuation of valuable and timely research and resources, for and in behalf of landlease community owners/operators, throughout North America. Have YOU signed – on as a moral and or financial supporter yet? See final paragraph, here following, for contact information.

Step II was anticipated to occur at the Manufactured Housing Institute’s annual meeting in Phoenix, AZ., from 2 – 4 October 2011. Frankly, the unofficial industry wide theme of ‘How to Save Our Industry?!’ was a non – starter! Oh, there were hints of theme awareness, but no decisions, no plans, and no action, whatsoever. The hints?

• Aforementioned futile attempt to let 58 NCC meeting attendees comment on the need – or not, for an ‘image campaign’, and to identify a TOP PRIORITY issue for 2012. No results whatsoever. This was worthy of a session all its’ own.

• A two page questionnaire was distributed early, to all registrants; then collected, tallied, and communicated, via PowerPointPresentation, during the morning of 4 October. Here too, little was accomplished, given minimal open discussion, and certainly no consensus plan of action pursuant to ‘How to Save Our Industry?!’

So, where does that leave us today, relative to maybe – or maybe not, moving ahead with Step III during early 2012?

Frankly, I don’t know at this point. But putting that matter and question into abeyance for a week or more, is the prudent and patient thing to do. After all – and get ready for this; THE ANNOUNCEMENT, during the governing board session at MHI’s annual meeting, of Thayer Long’s RESIGNATION as executive vice president of the institute, was a shocker – maybe even a game changer! How so? Think about it; the possible ramifications. So again and for the moment, let’s absorb this surprise before turning our collective attention to how a change in salaried leadership might impact this ‘How to Save Our Industry?!’ theme. Who knows; MHI might use this opportunity to become an advocacy body more balanced in representation, among all the membership segments of the manufactured housing industry and landlease community asset class.

In the interim, I need to hear from you – again, as to what YOU think the manufactured housing industry and landlease community real estate asset class should or might do to ‘Save Our Industry?!’ going forward. For example, would YOU support, by your participation, a third national grassroots caucus of manufactured housing and landlease community stakeholders (i.e. Those with actual ‘skin in the game’ as business owners and senior executives) during late January or early February 2012, likely in a warm climate, maybe central Florida? Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156, email: gfa7156@aol.com, or write: GFA c/o Box # 47024, Indianapolis, IN. 46247. Nearly 50 of you have already expressed support.

Remember; there’re precedents for such a timely and focused event! On 2/27/2008, 100+/- LLCommunity owners/operators gathered at the FountainView LLCommunity clubhouse, in Tampa, Florida for the first National State of the Asset Class (‘NSAC’) caucus. There they agreed on Five Action Areas to guide their Business Futures during the years ahead. And know what? 3 ½ years later those foci continue to guide! A year later, on 2/27/2009, 100+/- HUD Code home manufacturers & LLCommunity owners/operators assembled at the RV/MH Heritage Foundation’s Hall of Fame facility in Elkhart, IN., for NSAC caucus II, to collectively answer the question: ‘How to Sell More Homes into Landlease Communities?’ And know what? Their solutions marked the birth of the Community Series Home (‘CSH’) design concept – in effect to this day, and the appointment of nearly three dozen Business Development Managers (‘BDM’). Is it indeed time for NSAC caucus III? That’s up to YOU! Do YOU believe we can openly discuss, and eventually agree on solutions answering ‘How to Save the Our Industry?!’ I do, but cannot do so alone! GFA

***

III.

ERRATA

Did you receive John Grissim’s 1 October issue of ‘The Grissim Perspective’ newsletter? If you want to continue to receive this communiqué for FREE, write ‘newsletter’ on the subject line (NOT ‘perspective’ as was requested first time around). If you didn’t receive it at all, but would like to peruse a copy, contact John Grissim via john@grissimguides.com

***

IV.

TITILLATION

Two weeks ago, this weekly blog posting featured this headline, ‘Yet Another New Era, or a Chicago Renascence, dawning?’ Well, all three leading indicators hinted at therein, remain in play; and you’ll likely read about them first, here, if and as they occur.

Well, there’s yet more intrigue afoot, this time at the very top of one of our relatively few remaining HUD Code manufactured housing industry firms. Only other hint I’ll give you, is that if the anticipated change materializes as expected, it’ll underscore the present day importance of sales expertise, experience, and motivation.

***

George Allen, CPM®Emeritus & MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247

Manufactured Housing History & Future by Degrees

Remember the old canard regarding college degree abbreviations with dual meanings, such as BS, or bulls _ _ _? Followed by an MS degree, or ‘more of the same’; and finally, the coveted PhD degree, where it’s ‘Piled higher and deeper!’

Well, apparently the time has arrived, to realize and be motivated by parallel degrees (of frustration), relative to HUD Code manufactured housing’s history, present and future, as a sustainable business enterprise. For more than 13 years we’ve suffered our own form of BS, as in ‘Below average Shipments’. And as we near the end of year 2011, we’re experiencing profound MS, as in ‘More of the Same’, having been driven to our industry’s historic 60 year nadir point. But now, like the Brazilian bareback bull rider (from whom this metaphor is borrowed), we’re indeed PhD: ‘Poor, Hungry & Driven’, to find and win, once and for all, our way out of this upside down national housing market!

How are we accomplish this fete? Well, in this veteran industry observer’s opinion, there’re two initiatives afoot, when there should be but one. However, we could wind up with three by year end – OR only ONE, if the ‘third’ comes on like gang busters!

I.

The first initiative began 2/27/2008 at National State of the Asset Class caucus I, convened at the all – adult FountainView landlease community in Tampa, FL. There, 100+/- portfolio owners/operators gathered, and before leaving, agreed on Five Action Areas to guide their collective Business Future during the years ahead. Much of that initiative remains ‘in play’ 3 ½ years later, evidenced by Green Courte Partners’ founder Randy Rowe in his Five Part Plan to Save the Manufactured Housing Industry, keynote address delivered at the 19th annual International Networking Roundtable in Phoenix, AZ., September 2010; then recorded for posterity, in the 22nd annual ALLEN REPORT – still available for purchase, from PMN Publishing via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764..

The national caucus initiative took a different direction a year later, as 100+/- HUD Code housing manufacturers and landlease (nee manufactured home) community owners/operators met together, for the first time in manufactured housing history, at the RV/MH Heritage Foundation’s Hall of Fame, Museum & Library facility in Elkhart, IN., on 2/27/2009. During NSAC caucus II, the Community Series Home concept (i.e. specially designed singlesection homes & smaller multisection homes for siting in LLCommunities) was birthed, and two dozen Business Development Managers (‘BDM’) named by the manufacturers – to specialize in marketing CSH models to communities. Much of this initiative too remains ‘in play’ 2 ½ years later, as evidenced by the presence of CSH models on display, and presence of BDMs at every Networking Roundtable since then!

The next manifestation of the first national initiative played out recently at the 20th annual Networking Roundtable in San Antonio, TX., when a record number of 200 registrants learned of plans to ensure continuation of landlease community research and resources they’d come to rely on during the past 30 years. This event was widely referred to as Stage I of ‘How to Save Our Industry?!’

NOW attention is focused on the Manufactured Housing Institute’s annual meeting, during the 75th year of its’ existence, in Phoenix, AZ. What’s expected to happen? Hard to say. Nothing on the published agenda suggests any Big Picture initiative relative to ‘How to Save Our Industry?!’, but one never knows for sure, until the event (a.k.a. Stage II) begins on 2 October and ends 4 October 2011.

But here’s a HINT. Whether a new, MHIndustry wide national initiative actually materializes from MHI’s annual meeting, really depends on the personal and corporate perspective(s) of its’ elected and salaried leaders; to wit:

• Industry success or failure, on the macro level, depends in large part, on the activities and goals effected on the micro (individual and corporate) level, NOT on some grand national scale and plan, OR

• Industry success or failure, on the macro level, depends in large part, on the activities and goals effected on the national advocacy level, by elected and salaried industry and asset class leaders, according to some grand scale and plan.

Learning how our national elected and salaried leaders perceive their responsibility, if any at all, to caucus, discuss, brainstorm, plan and ultimately effect a pragmatic program pursuant to ‘How to Save Our Industry?!’ is where we are today. How will we know? By being present at said national gathering and paying attention to what’s said and written during the weeks following….

A Stage III, if deemed necessary, depending on the outcome of Stage II, will likely be announced by year end, and occur sometime early in year 2012. Think NSAC caucus III, if need be..

II.

Yes there’s another would be national initiative afoot. It too has its’ roots in a for profit firm, via a for profit vehicle labeled the Manufactured Home Alliance. It appears to be funded, at least in part, by $31.95/year ‘memberships’, with promises of discounts, MH financing, insurance, advocacy information, and more; suggesting, “The idea of mobilizing a national network of homeowners has great potential.”

But there’s difficulty understanding MH Alliance goals and activities, here quoted in part, relative to “MH Business Professionals (big stake) – Very low buy in, encourage and incentives to be an MH Association member and use best practices.”

Randy Rowe’s Five Point Plan (to Save the Manufactured Housing Industry) is here too referenced, being: 1) better warranties and customer service, 2) improve chattel financing, 3) economic security for homeowners, 4) MLS, and 5) image and marketing. On the same page, MH Alliance key part, the ‘Phoenix Project’ is described in formulaic fashion, as being comprised of Positive PR + Prestige + Profitable (sic).

There really isn’t much to add at this point in time. But the initiative bears watching, especially if MHI demurs taking the lead, on the macro level, to caucus, discuss, brainstorm, plan and ultimately effect a pragmatic program pursuant to ‘How to Save Our Industry?!’

III.

As you know, reading through this blog posting to this point, there’s nothing (yet) of substance to describe or tell you about Stage II of ‘How to Save Our Industry?!’ There’s not yet, if there ever will be, a third ‘hopefully overriding’ macro national initiative to save the manufactured housing industry.

If status quo prevails however, expect existing initiatives, whether an NSAC Caucus III and new not for profit national research and resource platform funded by landlease community owners/operators in the first instance; and or, manufactured home owners and rental homesite lessees, et. al., in the latter instance, to continue in their respective macro and micro environments, to effect positive impact on the industry and asset class.

But how ‘bout YOU? Frustrated yet with manufactured housing’s now decade long malaise, and consequences thereof (i.e. historic low new home shipment levels, year after year; and, sliding physical and economic occupancy levels in LLCommunities large and small)? If so, to which of the two perspectives, described above, do you ascribe?

• Keeping one’s nose to the business grindstone, and national initiatives be damned, OR.

• Look to national advocacy body leadership, of all stripes, for relief and succor!

As usual, this veteran MHIndustry & LLCommunity asset class observer and commentator would surely like to know! Comment via mail: GFA c/o Box # 47024, Indpls, IN. 46247, phone (317) 346-7156, or email: gfa7156@aol.com

IV.

FLASH ANNOUNCEMENT. If you attended Spencer Roane’s ‘almost standing room only’ presentation of ‘Lease – Option Financing of new and resale home transactions in the landlease community environment’, at the recent 20th anniversary Networking Roundtable in Texas – or missed it altogether, but want the timely & ‘available nowhere else’ information, go to the Summary’ page of http://www.leaseoptionmhsales.com/ To open the Powerpoint file, click the link, then ‘Open’ or ‘Save’, then ‘Read Only’. You’ll be glad you did!

V.

Remember John Grissim? Manufactured housing trade journalist and author? Well, he’s just published the first issue of ‘The Grissim Perspective’, a free e – newsletter designed and intended to communicate ‘occasional news, notes and commentary about the factory – built home industry.’ (Speaking of the factory – built housing industry, just spoke at length with Don Carlson, editor and publisher of the shuttered Automated Builder magazine; he’s well and awaiting an opportunity to return to ‘the business’). Anyway, if Grissim’s e – newsletter is anything like his popular ‘The Grissim Report’ subscription – based newsletter, this offering too will likely be widely circulated. To get on the inside track with ‘The Grissim Perspective’, email him at john@grissimguides.com and pen Perspective on the subject line. He’ll also put you on a list to receive future issues.

VI.

Deadline for submission of landlease community portfolio statistical input for the 23rd ALLEN REPORT (a.k.a. ‘’Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’) is now past. BUT, not too late to be included if your completed questionnaire is sent in (by FAX @ 317.346-7158) by Friday, 9 September 2011. Or mail it to GFA c/o Box # 47024, Indianapolis, IN. 46247. Need a questionnaire to complete? Simply phone (317) 346-7156 this week; leave a message.

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247 (317) 346-7156

I.

Young Turks Emerging?

In the annual ALLEN REPORTS, we routinely identify the Young Lions of property acquisition, and report the status of a Daring Dozen realty investors who commenced building landlease community portfolios a decade ago. But Young Turks? Last week’s…

20th Networking Roundtable maybe demarcates the end & beginning of two eras….

On 31 August 1993, 18 manufactured home (nee mobile home park) community operators, 14 of whom were bona fide owners with ‘skin in their games’, founded the Industry Steering Committee (‘ISC’) predecessor to the Manufactured Housing Institute’s (‘MHI’) present day National Communities Council (‘NCC’) division. Today, 18 years later, only one of those property owners remains active and regularly visible in national landlease community affairs and issues.

On 15 September 2011, considerably more than 100 landlease community owners/operators attended the 20th anniversary Networking Roundtable in San Antonio, TX. Only one of the aforementioned ISC cum NCC founders was present, along with a few dozen new, second, third, even fifth generation property owners, and these were supplemented by a growing bevy of portfolio operators. Enter the Young Turks!

What’s a Young Turk? According to the Illustrated Reverse Dictionary, an ‘elite soldier or bodyguard in former times’, a.k.a. janissary, a ‘member of any group of loyal guards, soldiers, or supporters’. Know what? The term fits! As I studied the registration list for this year’s Roundtable; along with direct, dues – paying member lists (not the Certified Representatives) of MHI’s NCC division, and the Urban Land Institute’s (‘ULI’) Manufactured Housing Communities Council (‘MHCC’), an interesting pattern or trend emerged. This being, the subtle transferring of management control, in many but not all instances, from the daily, hands – on presence of property portfolio owners, to salaried managers or ‘soldiers, property guards, supporters’, i.e. the Young Turks!

Young Turks for the most part, appear to be salaried, and generally managing landlease community portfolios for sole proprietors, partnerships, corporate owners, even real estate investment trusts (‘REITs’). Only rarely however, do contemporary Young Turks possess earned professional property management or realty credentials, like the hard to earn Certified Property Manager® or CPM® and Certified Commercial Investment Manager® or CCIM® designations, though many have college or university degrees, even advanced ones. They’re also often politically active, when the need arises, generally via state and national advocacy venues, but not always. Furthermore, the majority of today’s Young Turks, like their pioneer owner/operator predecessors and bosses, are male and young.

Who’re today’s Young Turks? I can easily identify several dozen by name. But that’s not the point of this pattern or trend spotting blog posting. But ‘naming’ might indeed be an interesting exercise, and certainly a potential added feature to the 23rd annual ALLEN REPORT – being researched at this time. Speaking of which; please complete and return, via FAX (317) 346-7158, the standard questionnaire, distributed last week, to 600+/- known landlease community portfolio owners/operators! Deadline is September 30th , 2011. The 23rd ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’) will likely be distributed with the January 2012 issue of the Allen Letter professional journal.

Why only ‘likely’? As you may or may not know, there’s a present effort afoot, to launch a new, national not for profit platform, a real estate and manufactured housing Center of sorts, to ensure continuation of Research (e.g. ALLEN REPORT, Allen Surveys, Mortgage & Chattel Lenders’ Registries, etc.) and Resources (e.g. newsletters, directories, books, standard PM forms, consulting services, and professional property management training and certification via the Manufactured Housing Manager program), long provided by GFA Management, Inc., dba PMN Publishing. At some point, it’ll become more cost effective for such research reports to be marketed and distributed through (the) Center for Manufactured Housing Research & Resources – or whatever the new not for profit national platform is named. If YOU’d like to be on the ‘inside track’, relative to launching, guiding, and financially supporting this exciting, historic initiative, contact me privately at (317) 346-7156 or via gfa7156@aol.com All inquiries will be kept in confidence!

In the meantime, know that if YOU own and or fee manage five or more landlease communities, and or 500+ rental homesites (even if in just one property), and have NOT received a cover letter and ALLEN REPORT questionnaire, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, ASAP, and request one be mailed to you! Why? Because you’re eligible to be included in the nearly quarter century old ALLEN REPORT, organized by firm name and ranking (per total number of rental homesites owned/operated) of landlease (nee manufactured home) community portfolios, throughout North America.

For that matter, there’re still a couple dozen copies of the 52 page 22nd annual ALLEN REPORT available for purchase @ $125.00 apiece; or as part of a special $150.00 package that includes said report, plus a one year subscription to the Allen Letter professional journal (published monthly, with a subscription price of $134.95/year). Again, use the above MHIndustry HOTLINE to place your order and or to subscribe.

So, are YOU a Young Turk reading these trend – spotting paragraphs? Do you agree or disagree with the characterizations cited? I’d sincerely like to know your view(s) on the subject. Use any of the contact methods cited in previous paragraphs, or pen them to me via: GFA c/o Box # 47024, Indianapolis, IN. 46247.

II.

Yet another New Era, or a Chicago Renascence, dawning?

Let’s see; the first real estate investment trusts (‘REITs’) emerged during the 1980s. That’s when New Jersey – based UMH Properties, Inc., nee United Mobile Homes, Inc., debuted. Then there was the second REIT wave, in the mid – 1990s, when Chicago – based ELS, Inc., nee MHC, Inc., followed by Detroit – based Sun Communities, Inc., and Colorado – based Chateau Communities, Inc. (Latter acquired by Hometown America in 2003) appeared on the landlease (nee manufactured home) community scene. Today, however, there’re only three REITs remaining in play, ELS, Inc., Sun Communities, Inc., and UMH Properties, Inc.

• Rumor has it a new IPO (‘initial public offering’ of stock) may be in the offing, possibly combining landlease communities of more than one firm. IF this occurs, it’ll be the asset class’ first new REIT since American Landlease (founded in 1998 & de – REITed in 2008) and short – lived ARC (2004 & 2005), originally Affordable Residential Communities, now American Residential Communities appeared on the income – producing property (type) scene.

• AND, there’s yet another new landlease community portfolio firm in the process of being formed, comprised of properties acquired from Hometown America. Think AMC. (No, not a rejuvenated American Motors Corporation!). Trust me; if and when this occurs, and details are made public, it’ll make for an interesting ‘international’ tale….

• Not to forget; the first National Summit for independent ‘street’ MHRetailers and landlease community home sales centers, will be held 13 – 15 November 2011. If seriously interested in improving your manufactured housing retail sales operation, consider attending. Phone (800) 336-0339. I plan to be present.

Is there a common denominator among these disparate but MHIndustry – related events? Sure; they’re all occurring in downtown Chicago (i.e. National Summit @ The Drake Hotel) and in surrounding suburbs. Know what? There’s even more ‘new news’ emerging from the Windy City. Geesh; really want to write more, but need to await further details.

III.

Let Me Whet Your Appetite for Next Sunday’s Blog Post…

The Year is 2012. The Question is ‘Who Will Effectively Lead the Manufactured Housing Industry?’ The Dilemma: ‘Old (habits) Guard or a New (inexperienced) Generation’? This (next) week’s blog posting kicks off Stage II of a three stage (if need be) ‘How to Save Our Industry?!’ industry wide grassroots effort, to effect 1) national dialogue, 2) open discussion, 3) strategic planning, and 4) focused action, to stimulate and lead HUD Code manufactured housing out of its’ decade – long general malaise and array of industry – specific ailments.

Maladies, for sure, like 1) paucity of independent source chattel capital for everyone, not just those with pristine credit ratings; 2) continuing feud between ‘big box = big bucks’ purists (i.e. in land & home competition with site – builders) versus ‘affordable housing’ pragmatists (i.e. desiring to fill 250,000+/- vacant rental homesites nationwide); 3) reluctance to routinely sell homes that homebuyers (and by extension, local housing markets) can afford to buy, rather than what factories decide to ship their way; 4) complete absence of a functioning, ongoing secondary market for the sale of existing manufactured homes; 5) new home warranties that match and exceed those of site – built homes; 6) need for a national manufactured housing brand and image improvement campaign, but only after resolving which comes first: clean up the industry beforehand or after attracting prospective homebuyers to our sales centers and communities? And there’re more issues and related asides….

What’s next? Well, that’s why YOU should plan to attend the Manufactured Housing Institute’s (‘MHI’) annual meeting in Phoenix, AZ. @ 2 – 4 October 2011. Listen, Observe & Participate for YOUrself and YOUr business interests! For more information, contact Thayer Long via (703) 558-0678. And, if you own one or more landlease communities, and would like to at least attend the National Communities Council (‘NCC’), the morning of 3 October, contact Lisa Brechtel via (703) 558-0666. If YOU do attend, either or both venues at the same resort hotel, look me up and tell me know your views on the industry issues identified, in part, in the previous paragraph, and otherwise. See YOU there!

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7145

Stage I of III, pursuant to ‘How to Save Our Industry!?’
effected at 20th Networking Roundtable in San Antonio, TX.

Stage II of III occurs soon, at the Manufactured Housing Institute’s annual meeting in Phoenix, AZ., 2 – 4 October.

Stage III of III? Unnecessary, if elected & salaried leaders
host a national & open forum for manufactured housing & landlease community stakeholders, to discuss, plan & enact ‘How to Save Our Industry!?’

Last week’s blog posting (#157) posed this question: “Is the recent & distinct ‘Stirring’ sensed, among some HUD Code Housing Manufacturers, independent ‘street’ MHRetailers and Landlease Community owners,

Life Being Renewed or a Death Rattle?”

Conclusion? Here’s what I penned at the time: “Death rattle? I think not. Made that mistake back in 1979, shortly after entering this business. Five years later, I was head of my own firm, and cleared $2 million with my partners, on our first landlease community transaction. I’ve not looked back, or negatively, at the industry and asset class since. Neither should you! So, come on, ‘Let’s get a – stirring together!” GFA

*****

Well, more than 200 of us did get a – stirring last week, at the 20th International Networking Roundtable in San Antonio, TX! Landlease community owners/operators, home manufacturers, as well as product and service suppliers, from 27 states, convened for 2 ½ days of the best business education, interpersonal networking, and enthusiastic deal – making, available anywhere, anytime! For a detailed summary of the two dozen seminars and panel discussions, complete with presenters names and contact information, read the October issue of the Allen Letter professional journal! Simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. In the feature article, you’ll learn how Cavco Industries, Inc., chairman and CEO, Joe Stegmayer ‘stirred’ this audience; how Green Courte Partners & American Land Lease, under the leadership of David Lentz, has introduced ‘rebranding’ to the landlease community asset class; and how Spencer Roane has taken the lease – option to a new level; and much much more!

The final session of this year’s Networking Roundtable related to the present and future of landlease community ‘research & resources’. Why so late in the 2 ½ day program? To serve as a gauge of how important, or unimportant, the subject of research and resource succession is, to those invested in the landlease community income – property type as bona fide owners, even professional property managers with ‘skin in their game’. Result? Nearly 40 ‘interested parties’ participated in the 1 ½ hour session. That’s more than double the number of landlease community owners/operators it took, on 31 August 1993, to form the Industry Steering Committee predecessor to MHI’s National Communities Council division! More about these new historic proceedings later….

In the meantime, here’s a list of general and intimate observations from the Roundtable:

• This was indeed the ‘Biggest (i.e. More than 200 registrants) and Best (Thanks to Hyatt Regency Hill Country Resort, 22 ‘presenters’, & the Cavco ‘Community Series Home’ on display) Ever’!

• Cutting edge presentations: Wait till you read what Stephen Wheeler, Joe Adams, Dr. David Funk (Cornell University), and others, had to say at this event, in the aforementioned October issue of the Allen Letter professional journal!

• Have you ever experienced Joe Stegmayer’s dry sense of humor? You should!

• Most old guard landlease community portfolio owners/operators are gone (e.g. only one of original 18 member Industry Steering Committee (See above) was present; supplanted by a new generation, many in evidence at this year’s event!

• NCC bobbled this new member recruiting opportunity; but MHI’s PAC promoter, Rick Rand, ACM, collected mega bucks for institute’s ongoing lobbying effort.

• MHIndustry pragmatists (i.e. smaller size & greater affordability of Community Series Homes) squared off against ‘bigger box = bigger bucks’ MHPurists.

• A dozen Business Development Managers were present, so maybe direct – marketing to landlease community owners/operators is ‘alive and well’ after all!

• Fair home value and homebuyer – friendly chattel mortgage advocates squared off against the perennial ‘churning’ and predatory lending aficionados.

• National Industry Image Improvement Campaign gets its’ first national re – airing since 17th Networking Roundtable in Mystic, CT., in 2008. Conclusion? This hard question: Showcase ‘Best Products & Practices NOW’ or ‘Get Products & Practices Right Before Going Public’? In either event, be wary of tempting siren songs of self – proclaimed marketing pros in search of billable projects.

• 17 Roundtable attendees present at 10th annual prayer meeting for ‘Our Nation & Its’ Leaders’. Each received a copy of Steve Harper’s A Pocket Guide to Prayer.

• Every Networking Roundtable registrant received a copy of the recently released Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing book. Dedicated in part, to Randy Rowe, of Green Courte Partners/American Land Lease, it’s the first inside look at what’s brought our asset class from its’ ‘dark ages’ into the 21st Century! Available for $24.95 via aforementioned MHIndustry HOTLINE.

Finally, many landlease community owners wanted to know, coming away from Stage I (the 20th Networking Roundtable), and headed for Stage II (MHI’s annual meeting); if, where, when, how, and how much would our unique realty asset class be fitting into the HUD Code manufactured housing business milieu of the immediate, near, and forward – looking future? In a word, Are we to be an integral part of this ‘Stirring’ so many of us have been sensing of late? That’s why YOU should plan NOW to attend MHI’s annual meeting in Phoenix, AZ., 2 – 4 October. For information, phone (703) 558-0678 and ask to speak to Thayer Long. Tell him ‘George sent me!’

*****

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156