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

Blog Posting # 788, Copyright 12 April 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing!  (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as non-fiction author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, and author/editor of 20 books & chapbooks on MH, communities, business management & prayer.

SLOW PROGRESS

Regular readers of this weekly blog posting know my primary writing project for year 2024 is to research and pen the second half of the history of the RV/MH Hall of Fame. The late Dr. Carlton Edwards, and fellow RV/MH Hall of Fame enshrinee, authored the first half this history (i.e. from 1972 thru 1993) or Part I. Part II, my project, will describe the years and historical landmarks from 1993 to present day. Know what? While I’m enjoying the challenge, ‘progress’ has been very slow for a couple reasons. There appears to be no accessible historical records relative to the recreational vehicle industry; seriously. And my repeated email requests to MHI for information, to date, have gone unanswered; e.g. ‘Who were the salaried senior leaders of the institute’ from Jerry Connors till now? And, is there a written history of MHI? Once I obtain this information and add it to the 30 years’ time line I’ve crafted, I can make real writing progress – but not until then.

Another recent major writing project that has slowed of late is my plan to, once and for all, prepare and distribute a monthly statistical report summarizing the ‘whole new housing scene’ in the U.S.! As you likely know, I’ve been producing and distributing EducateMHC’s monthly ‘MHShipment volume & Stock market Report’ for years. What I want to do now, beyond just 1) HUD-Code manufactured housing production and stock market reporting (i.e. ten public MH-related companies), is additionally include the number of 2) modular, 3) panelized, 4) Park Model RVs, and 5) site-built housing starts together, as One Grand Total of New Housing Starts each month! The ‘good news’ is that I now have a handle on the number of HUD-Code MHs, number of Park Model RVs (i.e. small housing units, like Tiny Homes), and site-built housing starts. What has been difficult to research to date, or the ‘bad news’, has been the numbers of modular and panelized units! Why? Because these, for the most part, are built in accords with local building ordinances – and as far as I can tell to date, their monthly volumes have never really been measured or reported, except on a quarterly basis. Suggestions anyone? If so, via gfa7156@aol.com I’d like to have this latter matter resolved during the next month or so.

RV Marketing, a Harbinger for MH Sales?

As a 45 years manufactured housing (‘MH’) aficionado, I’ve come to believe, we in the retail marketing and sales of new HUD-Code homes, as well as land lease community owners/operators, can learn valuable lessons from our sister business model, the recreational vehicle (‘RV’) industry. We’ve already talked (in earlier blog postings) of ‘Go RVing’, and before we’re done here, I’ll share key information from InteractRV’s ‘The RV Dealer’s Guide to Choosing the Right Marketing Partner’. There certainly are basics and insights you’ll want to read and ponder.

 “Go RVing’s mission is to inspire potential RVers, spark curiosity, and raise awareness about the benefits and accessibility of RVing through rich, authentic and diverse storytelling.” Hmm. Doesn’t take much creative thought to ‘content transfer’ this mission over to manufactured housing, to wit: “Buy MH’s mission is to inspire would be homeowners/site lessees, spark curiosity, and raise awareness about the benefits of manufactured housing & communities through rich, authentic and diverse messaging!” Now there’s a ‘start’ for a national MH marketing and promotional program! Is anyone out there paying attention? If so, let our national MH trade advocates know your thoughts on the timely matter.

Now for some interesting statistics. ‘Go RVing’ debuted in 1994 when annual RV production was at 260,000 units. Four years later, this figure jumped to 290,000 units. At the same time, over in manufactured housing, in 1994, annual MH production was at 303,932 units; four years later that improved to 372,943. What’s interesting about this, from an historical perspective, is that earlier in 1980, when manufactured housing annual production was at 226,092 new homes, RVs languished at 101,000 units. And as a somewhat related sidebar, the RV/MH Hall of Fame was founded in 1972 when MH production was in the neighborhood of 575,000 new homes – but RVs had yet to eclipse the 100,000 mark. This is one reason ‘urban legend’ has it,  ‘back in the (1972) day’, ‘MH’ ruled and ‘RV’ was along for the ride; some even talked ‘MH/RV!. Today the production rolls are reversed…almost. Here’re more historic production comparisons. In year 2009, MHs hit their nadir (‘record’) low of only 49,789 new homes, while RVs came in at 160,000 units (down from their late 1990s acme (‘high’) performance). And today, in 2021, when MH struggled to get to 105,772 units, RV cruised to an acme year of 600,000 (Thanks, in large part to ‘Go RVing’) units. In year 2022, when MH moved up to 112,886 new MHs, RVs slumped badly to only 200,100 units – still twice the total of MHs.  

Now for the gist you’ve been awaiting. ‘The RV Dealer’s Guide to Choosing the Right Marketing Partner’ was produced by InteractRV, an RV industry marketing consultancy. Here are key observations from my read-thru:

“Choosing the right marketing partner is crucial for RV dealers to effectively promote their business and attract customers.” Frankly, I don’t know of many (if any) independent third party ‘marketing partners’ specializing in manufactured housing today. Not talking about sales training consultants here; rather ‘big picture’ marketing professionals who understand housing.

Before starting one’s search for a marketing partner, this guide emphasizes the importance of defining Marketing Goals in terms of desired results; whether that’s increasing sales, promoting brand awareness, generating leads, or simply improving customer retention. And budget. Ensure a reasonable budget that includes the cost of compensating the right marketing partner.

What to look for in the right marketing partner. This guide lists Industry Experience (relative to understanding seasonality, presence at RV trade shows, using correct trade language). Also important to research and confirm reputations and references, know partner can strategize, understands one’s specific business and targeted audience, and more.

How ‘bout an integrated website and related marketing services? This can become complicated quickly, so search for a marketing partner who offers a comprehensive range of services and does not rely on the sales center to ‘train them’. And the beat goes on. Yes, there’s more to consider, but this at least scratches the surface for you when in search of a good marketing partner.

There have been consultancy partners in years past, both where independent (street) MHRetailers are concerned (‘company stores’ relied on manufacturer guidance – when available) and land lease communities. In the first instance, a few firms offered operating performance focus groups who met regularly, kept proceedings confidential, and frankly, compared and cross-critiqued their corporate operating statements. There was a similar scenario and methodology, for a decade or so, when portfolio owners/operators of communities convened, usually on-site, for an evening of interpersonal networking followed by a day of pre-agreed topics for discussion, usually on marketing, operations, resident relations, and more.

If you’d like to talk more about this concept of marketing partners and focus groups, let me know via gfa7156@aol.com

George Allen, CPM, MHM

Blog Posting # 787, Copyright 5 April 2024; EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing! (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to              order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And WAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

Value of RV & MH Industries Today!

According to national trade advocates for the recreational vehicle manufacturers, that industry’s production and wholesale value of new RVs during year 2023 was $140 billion.

According to MHI’s ‘more than decade old formula for computing the production value of new HUD-Code manufactured homes’ during 2023 was a scant $38 1/2 billion. (That’s 89,169 new MHs X $43,126 estimated production value of a new MHs. So, ‘what’s the total MH value?’

A 70+ year old industry like HUD-Code manufactured housing should have a far better handle on what it is worth today to the national economy of our nation. And relying on a decade old formula for estimating only the production value of our housing product is simply wrong!

How wrong? 27 years ago, in 1997, the IMHA/RVIC (Indiana’s dual trade association representing MH & RV industries), using a grant from the Indiana Department of Commerce, commissioned an Indiana consultancy to research and prepare an Economic Impact Study. Result? The two industries (RV & MH), at the time (i.e. nearly three decades ago) were documented as contributing $8 billion/year to the state’s economic success. Yes, it ‘begs the question’: HOW MUCH DOES HUD-CODE MANUFACTURED HOUSING CONTRIBUTE ANNUALLY TO THE ECONOMIC SUCCESS OF THE U.S. OF A? Methinks it’s high time for MHARR & MHI together – or separately, to determine that significant $ figure to better influence federal legislators understandably ignorant of our industry and its’ intrinsic value!

 ‘GO RVing’ To Inspire ‘MHMarketing’? Answer: YES!

‘GO RVing’ was launched in 1994 as ‘the national marketing program’ for recreational vehicles of all sizes and types. Has it been successful? Completely so! So much so that a ‘GO RVing’ Marketing Minute online newsletter is published frequently to update partners (i.e. RV retail sales outlets & more) on what’s going on in several paid marketing campaigns, media and creative collaborations, as well as experiential events.

In the most recent ‘GO RVing’ Marketing Minute partners were told of the marketing potential among such multicultural markets as Black & Hispanic buyers, as well as LGBTQ+ audiences. Then a schedule was published describing no fewer than 12 events nationwide, ranging from festivals to state fairs and more, where ‘GO RVing’ will be present. Also emphasis on celebrating Valentine’s Day in February, Easter in late March, and the Eclipse on 5 April 2024.

Point? If RV manufacturers and retailers routinely ‘come together’ to fund paid marketing campaigns, as well as media and creative collaborations, why doesn’t the manufactured housing industry do the same? We’ve been talking about this for decades now, but with no success to date. IMHO it’s High Time for our industry leaders, appointed and salaried, to plan and pattern a similar program to ‘GO RVing’. Any ideas for a catchy name for such a MH-focused program? Let me know via gfa7156@aol.com

RV/MH Hall of Fame Induction Banquet

Time to start thinking about attending this year’s RV/MH Hall of Fame Induction Banquet on Monday, 19 August. This is always a Gala Affair, attracting top RV & MH leaders and business persons from throughout the U.S. To order tickets, phone (574) 293-2344. I certainly plan to be present – to see you, and to fete the ten enshrinees from the sister industries. An increasing number of folk have begun arriving Sunday afternoon, to enjoy informal networking that evening, and then spending time at the museum, library, and store the next day.

As  I’ve told you before, if you’d like to meet privately, or in a small group, to 1) discuss MH industry issues, 2) learn how to pen one’s memoirs (i.e. short stories) and or autobiography, I’ll be pleased to assist. Just let me know of our interest; again, via gfa7156@aol.com

George Allen

Blog Posting # 786, Copyright 29 March 2024; EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable & attainable factory-built housing (a.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG  is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

I first penned the following paragraphs during April of 2023, as blog posting # 735, as a belated personal commemoration of National Vietnam Veterans Day, occurring earlier on 29 March.

Why share it again this year? Three reasons. First, this is a new memorialization of what occurred in the Republic of Vietnam a half century ago. These are excerpts from 400 letters I sent home to Carolyn during my 13 months tour of duty there in 1968 & 69.

Second & and third reasons involve recollections shared with my great grandson Hunter Falks, who just completed U.S. Army boot camp this past week. Before Hunter left for Georgia we lunched at Johns’ Stews restaurant in Indianapolis. Shortly after that meal, it occurred to me, ‘What will Hunter likely think 58 years from now if he, in turn, has a great grandson going into the U.S. military service? Will he recall our lunchtime conversation?’ I hope so, because when I was 19 years old and enlisting in the U.S. Marines in 1964, I reflected 94 years earlier about my great grandfather Charles Allen, who served in the Civil War – but I never met. 

And then there’s the peanut butter. While in boot camp, Hunter told his father the only thing he’d done, so far, that could get him into hot water, was pilfer some peanut butter packets from the chow hall. When I heard that I ‘flashed back’ nearly six decades to when, preparing for battle or going out on patrol, I’d stash several small cans of C-ration peanut butter in the pockets of my flack jacket. These were a tasty and timely tasty snack and source of nourishment. So, there’s one practice that hasn’t changed over the years.

Now, without further ado, here’s the introduction to some defining moments in my combat tour of duty all those years ago.

Largest Enemy Weapons Captured During Vietnam Conflict

An Excerpt from Chapter 12 of the Allen family Journal, subtitled,

‘My 13 Months in the Republic of South Vietnam during 1968 & 69’

Introduction. There were several defining moments during my combat tour in Vietnam as a lieutenant of U.S. Marines. First, as a combat engineer officer, participating in the breakout from the infamous Khe Sanh combat base in the northwest corner of Leatherneck Square. Then, training in Japan & Okinawa as an Atomic Demolitions Munitions (‘ADM’) technician, prepared for secret deployment into North Vietnam if need be. And during February 1969, participating in Operation Dewey Canyon, in the Ashau Valley adjacent to the Laotian border. During that time I was the shore party battalion’s primary rigging officer, preparing slinged and cargo net external loads for helo-lifiting into and off mountaintop Fire Support Bases (‘FSBs’) manned by grunts (infantry), and Helicopter Support Teams (‘HSTs’) from shore party companies*1

22 February 1969

Hi My Love,

            (Well into the letter) Wasn’t going to tell you what I’m about to, but I’ve been candid, honest and open about my work over here, so there’s no reason to keep something like this from you until it’s over or canceled.

            A few days ago, one of our grunt (Marine infantry) companies, out on the Dewey Canyon operation, captured two large enemy (Russian) field artillery pieces – originally thought to be 122mm howitzers (5,500 pounds each), but were determined to be 122mm field guns (14,500 pounds apiece). Yesterday I received ‘hints’, and today almost ‘definite word’, that, in the next couple days, I’ll be dropped into the jungle in the vicinity of the guns. Then, have to clear a landing zone around them, rig the guns for helo-lifting, and hook them one at a time, to a hovering CH-53 or CH-54 ‘flying cranes’, for retrograding back to Vandegrift (‘VCB’)  or Quang Tri forward combat bases . I don’t think I have to tell you this could be a pretty hairy experience, but I’ll do the best I can to get them out. To give you an idea about the size of these weapons, they’re larger and heavier than the 155mm howitzers you’ve seen in photos.

23, 24, 25 February 1969

            (Portions of these letters are missing) Before we quit for the afternoon, we started stripping all the gear we could from the first gun – to make it as light as possible for the flying crane. The guns are really interesting, as all data plates on the guns are written in Russian; and a lot of the accessory gear (firing lanyard, intact 122mm rounds and firing tables) was still here when I arrived.

            Just learned these are the biggest enemy weapons captured during the Vietnam conflict! They will probably be sent back to the states as war trophies once I get them lifted out of here. Would have lifted the first gun out this afternoon, but the engineers still have trees to fell around the guns, as the CH-53 & CH-54 need a lot of room to hover over heavy loads.

            Well hon, it’s so dark I can hardly see to write any more tonight.

            It’s now the morning of the 24^th and a long night it was. Seven of us slept under a poncho lean-to positioned over our fighting hole. Along about 2300 hours (11PM) the ‘shit hit the fan’, as we became the brunt of an enemy ground attack. Don’t know how many gooks there were, but the air was filled with bullets and exploding RPGs (rocket-propelled grenades). The attack (firefight) lasted about 30 minutes before the enemy broke contact and withdrew. Don’t know how many of them we killed, but we had a few casualties ourselves.

            Now we’re sitting here waiting for the weather to break so I can get those guns out. I expect the flying crane will arrive around 1400 hours (2pm). So I’ll likely be spending another night out here.

            Sorry ‘bout the quality of my penmanship this morning, but wet paper does not help much. We are thoroughly socked-in right now and a light drizzle is falling. Boy it sure is desolate out here. Not a lot more to tell you right now dear. Of course I love and miss you something terrible. Can’t wait to get home to you and darling Susan (daughter).

            Well, it’s now 1400 hours. Since writing you this morning I’ve rigged both big guns (just hope they fly OK) and survived yet another firefight, but more on that later.

            These guns sure weren’t the easiest thing to calculate and rig. We finished stripping the guns of armor plate and accessory gear to make them lighter. Then I had to figure out the rigging. This is what I came up with: from the donut-shaped nylon lifting ring, two 16’ slings out to the end of the gun tube (barrel), two 17’ slings out to the end of each of two trails, and two 5’ slings on each side of the guns to the wheels and axles.

            Know where I was when the next firefight started? Sitting out on the very end of the long gun tube (barrel), straddling it as I attached the heavy nylon slings. A couple Marines were sitting on the trails and gun carriage to counterbalance my weight on the tube…when the gunfire started. My men dove for cover – while the tube and I hit the dirt.

            One of our OPs (observation posts) radioed in a while ago and reported seeing enemy troops and elephants loaded with gear. Also this afternoon, one of our patrols found the firing sites where these guns had been originally located, and uncovered numerous bunkers, two gun pits, and many documents. Really an outstanding find.

            Stopped writing for a minute, to take a look at the captured gear. Manuals (all in Russian) for the big guns, gas masks, 50 caliber ammunition, and a personal diary. Some of my buddies out here tell me, during the initial assault, grunts saw individuals who were definitely not Vietnamese – much much larger in stature, and heard talking and hollering in a foreign language – sounding like Russian.

            Well love, I’ve got a bit of a headache, so I think I’ll close for now. Darling, I do love you so very much and wish I could be home with you and Susie right now.

            It’s now the morning of the 25^th. Slept like a rock last night. Hit the deck at about 1930 hours and didn’t stir until about 0730 this morning. No firefights or incoming rockets or artillery rounds last night – at least none I heard. Was really tired, but feel great this morning, except for bad news I just heard. Seems someone back at VCB does not feel the ‘flying crane’ can lift out the guns in one piece (I disagree); so now an ordnance team is on its’ way out to dissemble the guns for lift out. I really think that is going to be more trouble than it’s worth; first off, any manuals we have on the gun (and these are few at that) are written in Russian; secondly, we don’t have the necessary tools to dissemble them; and finally, even if we can get the tubes separated from the gun carriage and trails, the barrel alone (5-6,000 pounds) is going to play havoc as we try and manhandle it off the carriage. Looks like I could be here at least today and tomorrow awaiting disassembly.

Right now we’re just sitting around waiting to see what the weather will bring: either ordnance guys to take the guns apart or a fling crane to lift the guns out intact.

Know what? I love you lots! Really I do. Sure wish I was on my way home to you;

I miss you and little Susie so very much..

            Hi again love. It’s about noon and not much has changed since I wrote earlier this morning. Had one CH-53 fly in this morning and drop off the ordnance team. Now they’re hard at work on the gun. I wish them luck, as those guns are going to be a bugger to take apart.

            Remember the small U.S. and Pennsylvania flags your mother gave me? Well I taped them to one of the guns, before preparing them for retrograding.

            Back again. It’s about 1800 hours and guess what? The guns and I are still here. In fact, the only helicopters we saw today were emergency resupply birds bringing in water, chow, and ammunition.

            The guns are now rigged and ready to go. It’s just a matter of getting big enough choppers out here to lift them in four lifts, plus a fifth for the large nylon cargo net containing gun gear and ammunition.

            (In the meantime) The ordnance Marines told me if I could get a CH-53 into the area where the guns are, the tubes and carriages could be helolifted out. Well I got on the radio and had a resupply bird fly over from fire support base (‘FSB’) Cunningham to pick me up to go to Quang Tri or Dong Ha. Well the pilot, after getting me aboard chickened out, due to heavy ground fire (another firefight), and would not pull the tube out. He flew me back to Quang Tri where I reported to the Battalion CO and obtained a jeep so I could drive to Dong Ha. At Dong Ha I went to see Colonel Sexton, General Davis’ Chief of Staff, about getting more birds out to the Ashau Valley for the guns pickup. The colonel then sent me to see Colonel Jobe, the division air officer, who authorized CH-53s and a CH-54 to fly out and pull the guns out. My job then was finished; I’d rigged the guns and arranged for retrograde. I must have cut a less than professional appearance however, as I appeared before both colonels in my field-worn uniform, pistol belt and helmet.

            I drove back to Quang Tri, where I explained to my Battalion CO what I had done; he seemed pleased, so then all we had to do was sit back and wait to see what would happen. Result? As of 15 minutes ago, the guns arrived safely at Quang Tri LSA. Mission accomplished!*2

End Note.

1. More detailed descriptions of this historic capture and retrograde of Russian artillery pieces can be found in the short stories, ‘PUC Beer’ and ‘Pluck, Politics & Shore Party’, both contained within my autobiography, From SmittyAlpha6 to MHMaven, available for purchase via EducateMHC.com & the RV/MH Hall of Fame in Elkhart, IN. Also, the late Donald F. Myers’ book, YOUR WAR MY WAR, ‘A Marine inVietnam’, 2000. Suggested passages: p. 59, & pp. 347 – 355; where Myers describes the assault that captured the guns: “…what eerie thoughts the enemy must have had as this rebel-rousing, reeling, cursing, insane group of Marines came at them in a John Wayne style charge. I have a feeling if I saw this berserk group trotting towards me, waving and shooting rifles, many of them with bayonets affixed, and screaming bloody murder (& some loudly singing the Marine Corps Hymn), I may have been inclined to break and run. And that’ just what the enemy did. I glimpsed shadowy figures bobbing and weaving at a distance away from our advancing force.”

• Today, one of the two guns is on display in the USMC Museum in Quantico, VA. The other one? Well, there’s an interesting story to tell, someday, about what became of that one. Hint? Has something ironic to do with the Russian conflict in Afghanistan.

All of which was just described here, occurred more than 50 years ago. For some, if not many of us, who fought in Vietnam, the memories – at times, are now distant and dim; but at other times, near and clear. I’m grateful to be alive today, enjoying life with Carolyn, the adulthood of Susan and her brother Adam and their spouses, as well as their six children (our grandchildren), and now, three great grandchildren – with the eldest, Hunter, just completing U.S. Army boot camp.

This week, 29 March 2023, is National Vietnam Veteran Day. Take a moment to recognize, thank, and ‘Welcome Home’ Viet Vets you know. Trust me; they will sincerely appreciate the sentiment!

George Allen, LtCol USMC (retired)

Gfa7156@aol.com

Blog Posting # 785, 22 March 2024; Copyright 2020.  Educatemhc.com

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable & attainable factory-built housing (a.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From Smittyalpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author and freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MJHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of fame enshrinee, MHInsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books, & chapbooks re MH, communities, business management & prayer.

******

First penned the following lines during September 2020, three and a half years ago. Here’re a few tales of some very bad boys of manufactured housing. There are more tales, as yet untold.

INTRODUCTION: This blog has been a long time in the writing. Some counseled me against sharing this dark side of our industry and realty asset class. Others encouraged me to share, as all persons identified here, have pretty much faded into history; and not so much for novelty interest, but as a Warning to be wary of business entanglements that simply don’t seem to be right, in one or more ways. GFA

Very Bad Boys of Manufactured Housing

“Having a cozy relationship with The Outfit doesn’t always work to your advantage. Take my friend Joe Testa for example. One look at him and you knew he had dough. You might have even thought he was connected. He wore suits that cost a thousand bucks. He had a limo and driver and a gorgeous ninety-foot yacht on Lake Michigan.

Joe was a real estate genius who’d made millions and millions in property deals. He owned several fancy mobile home parks in the Midwest and some resort development in Florida.” P. 236. *1

One of these ‘parks’ was Sterling Estates on the South side of Chicago. There are all sorts of urban legends out there, to this day, how Joe eluded a particular mobster intent on killing him, by taking refuge in mobile homes owned by his tenants. But, in the end, that didn’t work well.

“Joe was driving down the street one night, and he had his wife in the car. And here come these guys, they pull up by Joe, and boom, boom, boom, they open fire on Joe and his wife. They put five deer slugs right through Joe’s Lincoln.

Joe was out of town when they blew up his house. It was a beautiful, expensive home in the suburbs, and it was totally destroyed.”p.244

Shortly after that, Joe had a heart attack, which sidelined him a bit. Though he did make it to Las Vegas one last time. “We hit the town every night, and during the day we found some girls and went out on the boat. We got half a mile out and everybody got naked – that was Joe. Sun and fun. Work hard, play hard….” P.250

The end? “According to the police report, it was around noon on June 27, 1981, when Joe put the key in the ignition of his blue Lincoln Town car. The explosion blew the windows out and blasted the hubcaps right off the car. It also blew off Joe’s leg and hand.” P.250. Joe died soon thereafter.

And the story of Sterling Estates, and other Testa-owned land lease communities, and how they became part of other property portfolios, continued after Joey’s death.

***

            Probably the most notorious and tragic manufactured home community-related story has to do with short-lived GEF Communities (a company I worked for briefly), headquartered in Greenwood, IN. During 1979, Gian Luigi Ferri came to town to buy four ‘mobile home parks’ he intended to become the centerpiece of a property portfolio destined to be the ‘Holiday Inn’ of manufactured housing. Things did not go well from the start. A major unintentional accounting error, on the part of the buyer’s due diligence team – but not discovered until after ‘closing’ the transaction, led to dissolution of the fledgling company, and rapid sale of its’ portfolio of four communities. *2

            14 years later, on 1 July 1993, Gian Luigi Ferri, carrying three firearms (two TEC-9s & one 45 cal. automatic handgun), entered the Pettit & Martin law firm on the 34^th floor of a high rise office building in downtown San Francisco There he murdered eight individuals and wounded six others, both attorneys and clients. As police closed in on him, he committed suicide. During the investigation after this mass shooting, police shared the content of a letter found on his body that described business deals – a failed land development deal in Las Vegas and mobile home parks in Indiana that may have been the motivation behind his actions.

            Now, 27 years after the 101 California Street shooting, the four land lease communities are owned by other portfolio firms, most if not all of which, have no idea of this tragic episode in manufactured housing history, as it relates to their properties.

***

            Then there’s John Robinson, a.k.a. John Osborne, and the Slavemaster. This sordid tale is told in the non-fiction crime tome titled ANYONE YOU WANT ME TO BE, ‘a True Story of Sex and Death on the Internet’. Briefly put, John Robinson was a smart, generally unemployed middle-aged con man, embezzler, kidnapper and forger who, when not in prison (1987-1993), lived in Midwest mobile home parks his wife Nancy managed.

“His wife was now managing a mobile home park called Southfork in Belton, Missouri, a Kansas City suburb to the south. The park promoted a theme that reflected the huge TV hit Dallas from several years earlier.” P.94  Later, Santa Barbara Estates.

My brief contact with Robinson occurred in 1995, when he launched “Specialty Publications, which featured a trade magazine, Manufactured Modular Living, about the mobile home industry.” P.127 He, at the time, wanted to merge his new pub with one of the business newsletters I was penning and distributing to land lease community owners/operators nationwide. Not interested.

What was really going on at the time?

“Nobody who lived next to Robinson- and quite possibly nobody who lived with him or spent time in his home – realized that each morning he waited until Nancy had gone to work at 8:30AM, before turning on at least one computer (he had three desktops and two laptops). Then he went to his real job, which didn’t have much to do with selling ad space for Manufactured Modular Living. He got on line and surfed chat rooms and Web sites, establishing new relationships with women he’d never seen.” P.128 Osborne’s misadventures earned him the nefarious title of being the internet’s first serial killer.

Turns out he’d befriended women from many different backgrounds, race, and sexual preference – including S&M. Without going into detail here, suffice it to say he was convicted of murdering three women, maybe two more. Two of the three known victims of this serial killer were stuffed into plastic 55 gallon drums.

‘On the trial’s third day a local radio personality (gave) away T-shirts. They were emblazoned with the words: ‘John E. Robinson. Trial 2002. Roll Out the Barrels – of Evidence’ p.338.

In the end, Robinson was found guilty of all charges, to be executed at some point in the future. As of fall 2024 he is on death row in a Kansas prison.

***

And there are more bad boys of manufactured housing. During my 40+ year career in manufactured housing and land lease communities, I’ve known income tax evaders who’ve served ‘hard time’ in federal prisons, others who convicted of fraud, even portfolio heads who were sued successfully by disgruntled limited investors. But we’ll stop the recitation here.

George Allen, CPM, MHM

EducateMHC

End Notes.

1. Excerpts from DOUBLE DEAL, ‘The Inside Story of Murder, unbridled Corruption, and the Cop who was a Mobster’, by Michael Corbitt with Sam Giancana, 2003. Also google Joey Testa.

• Complete story is related in ‘An Error to Die For’, featured in the book SWAN SONG, by George Allen, 2017, available via www.educatemhc.com Also google ‘101 California Street Shootings’.

• For more information and photographs, visit google: John E. Robinson. There also learn of two more books detailing Osborne’s crimes against women.

George Allen

Blog Posting # 784, Copyright 15 March 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable & attainable factory-built housing (a.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815 email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author and freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHinsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

Who Sez (‘says’)?

Geesh! We’re only three months into year 2024, and already MH neophytes, from outside our industry, are prognosticating (‘predicting’) HUD-Code manufactured housing production performance for the year ahead.

The Information Management Network (‘IMN’), “…a global media & events company”, via email from one of its events planners, recently announced “Manufactured housing is expecting a 10.2% growth this year, with shipments expecting to surpass 130,000” (presumably new HUD-Code manufactured homes). 

The last time the MH industry surpassed 130,000 new HUD-Code homes was during year 2003 (That’s 21 years ago!) when 130,940 units shipped (some say 130,937). According to our industry’s historian, 2003 was the ‘Year of the HUDULAR’ – when we toyed with the concept of melding HUD-Code & modular homes; but turned out to be a non-starter. The following year, 2004, production decline continued to 129,902 units (some say 129,802), the year when the Urban Land Institute (‘ULI’) formed the short-lived (10 years) Manufactured Housing Communities Council or MHCC. And during year 2005, as production continued to decline, the new trade term ‘land lease community’ appeared. And the MH tale of production woe continued till year 2009 when we produced a paltry 49,789+/- new HUD-Code homes.

Since year 2010 we’ve been on a steady but slow production climb, finally reaching a new acme of 118,886 new homes during year 2022. Year 2023? Sad to say, only 89,169 units.

OK, but back to the IMN projection. A 10.2% increase in production over last year’s 89,169 new HUD-Code homes produced suggests a 2024 total of 98,264 units, not their 130,000 – or a difference of 31,736 units.. So, why the big difference? You’ll have to ask the folk at IMN at their 2^nd Annual Manufactured Housing Forum, 7 & 8 May in Scottsdale, AZ.

Where do I think we’ll be, production-wise, by year end 2024. Far too early to tell. My 4 March 2024 MHShipment Volume report, documenting January 2024 MH production cited 7,475 new HUD-Code homes. That’s 524 more new HUD-Code homes than was produced during January 2023, a 7.5% increase. Will this continued during the months ahead? For further insight, read the next portion of this week’s blog posting….

And There’s More…

There is yet another opinion ‘out & about’ these days, titled: ‘Marketing Manufactured Homes in 2024. What does thaat data tell us?’ (Distributed by BILD Media on 29 February 2024)

In it David Finney, founder & owner of Bild Media, a digital marketing agency for the MH industry, begins by reviewing where new HUD-Code manufactured housing has been, production wise, during the last six years. While he does not specify yearend total production for 2024, remember, it was 89,169 units

Then he makes the following statement: “The good news is that there is tremendous opportunity for us in the overall housing market, and there’s no reason the (manufactured housing) industry cannot resume its growth in 2024 and beyond.” My rejoinder (‘reply’)? Perhaps, but I seriously doubt it. Why? Because I’m not convinced our Big 3-C HUD-code housing manufacturers, who garner 70+/- percent of national MH market share, really want to increase volume as much as they desire to increase profit margins, more easily attained when marketing and selling larger new homes (e.g. Cross-Mod®). Someone care to opine otherwise?

Next point? Finney goes on to state: “As retailers, manufacturers, lenders, etc., in the (manufactured housing) industry advertise more, MH search traffic should be trending up.” Again; not so sure about this occurring. Why? Because, to date, HUD-Code housing manufacturers have NOT pooled resources, via MHI or anywhere else for that matter, to advertise our factory-built housing product nationally – though requested to do so many times in the past. The only advertising increase seems to be coming from three of the two dozen or so brands on the market today. Period.

Finally, the author goes on to demonstrate “Just 16% of homes for sale in 2023 were affordable.” (i.e. ‘Share of home listings affordable on median income’). Readers of this weekly blog, who know me, already know what my ‘problem’ is with this statement: the use of the word ‘affordable’ without defining what is meant by it!*1 Lesson to be learned? Whenever you see or read the words ‘affordable housing’ – without an accompanying clear definition, its use is immediately ‘suspect’, as to applicability, degree, and usefulness.

Bild Media’s message continues, but I decline to parse any more of it in this blog.

End Note.

1. Definition of ‘affordable’, as in housing, and quoted from SWAN SONG, p.44. “Housing is affordable when an individual or household’s Annual Gross Income (‘AGI’), or local housing market’s Area Median Income (‘AMI’) – identified by postal zip code & available online at zipwho.com, can lease a conventional apartment and or buy a home in this local housing market, using no more than 30 percent of said AGI, or AMI, for shelter and its’ related household (utility) expenses. For example: $50,000 AGI/AMI X .3 Housing Expense Factor (‘HEF’) = $15,000/year or $1,250/month, available for rent or mortgage PITI (principal, interest, taxes, insurance), & household expenses.” SWAN SONG, a History of the Land Lease Community Real Estate Asset Class & official record of MH annual production dating back to 1955, is available for purchase via www.educatemhc.com

George Allen

Blog Posting # 783, Copyright 8 March 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable & attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author and freelance consultant.’’

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH all of Fame enshrinee, MHInsider editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

Offsite Construction & Manufactured Housing

‘A Rare Opportunity to Compile & Use Housing Construction Statistics!’

Offsite construction (Or apriori, off-site construction) is the newest housing-related shibboleth (‘slogan’) obfuscating (‘’bewildering’) trade terminology associated with 1) NAHB-related modular and panelized houses; 2) HUD-Code manufactured & CrossMod® homes; as well as 3)  Park Model & recreational vehicles (‘RVs’) used as affordable housing; nor forgetting accessory dwelling units (‘ADUs’), a.k.a. ‘granny flats’ like Tiny Houses & other minimum size dwellings such as (Gasp!) sophisticated sheds – OK as secondary structures on residential properties, especially in California.*1

What do these eight+ types of ‘housing’ have in common? As the new moniker suggests, they’re fabricated offsite, as in time-proven lingo, ‘factory-built housing’! First print mention of offsite construction occurred between 2015 & 2017. Now there’s a print trade magazine ballyhooing some of the mishmash of housing types – See Offsite Builder.

Status today? According to one source of stats, offsite construction volume increased by 23.9 percent between 2021 & 2022, while site-built decreased by 11.2 percent during the same period of time. However, offsite construction, like all other types of housing, experienced a sharp decline during the Great Recession of 2007-2012, and even with this up percentage of market recovery, the number of modular & panelized houses completed is be less than a third of what it was pre-recession.*2

So, what does all this mean? It’s difficult to say, because there’s no one mutually-accepted ‘scorekeeper’ tracking more than a half dozen types of ‘housing’ described in the opening paragraph. NAHB keeps tabs on modular & panelized housing; the Institute for Building Technology & Safety (‘IBTS’) tracks monthly manufactured housing production (including CrossMod® homes) for HUD; the Recreational Vehicle Industry Association (‘RVIA’) tallies RV (including Park Models) units shipped; and, ‘Who knows?’ follows ADU performance. For example, all statistics cited so far have nothing to do with HUD-Code manufactured housing! Per IBTS, during year 2023, 89,169 new HUD-Code homes were produced (i.e. down 20 percent from 112,886 in 2023), while RVIA documented 313,174 RVs shipped during year 2023 (i.e. down from 493,268 RVs in 2022). Year 2024? As one would expect, MH & RV producers are optimistic, believing their annual production performance totals will increase over 2023 volume.

As a related sidebar, there’s a new design ADU or Tiny House being built by ZenniHome (google zennihome.com) in Arizona. Models vary in size from 320 to 640 square feet. What’s unique about the design? When sitting on a couch in the center of the home and ready for bed, simply push a remote button and the bed lowers from the ceiling. The larger model features a second or Murphy bed. Need more space in the center room? Push another button and two walls move slightly to increase free space. The units are being built on a Navajo reservation in northern AZ, and are priced around $100,000. Plans are to expand with more plants across the U.S.

Back on topic, statistical ‘confusion’ will reign as long as there is NO plan and/or effort to bring these manifold forms of offsite construction together for data collecting, comparison and reporting purposes! Only then will we, as different but related housing industries, accurately know and understand how many new single-family homes, affordable and otherwise, are being sited each year. We are obviously Not There Now!

How do I see this happening? Actually simpler than, evidently, anyone has imagined. Just need one ‘reporting agency’ to pull together each month, the production totals posted by NAHB, IBTS, & possibly RVIA. Then, on one consolidation worksheet announce said totals, then post a grand total among all or most reporting agencies. Anyone out there willing to give it a try? It almost has to be an independent third party agency with no ‘skin in the game’ where the various types of offsite construction are concerned. If interested in volunteering, or simply want to talk about this housing unity concept, contact me via gfa7156@aol.com

End Notes.

1. NAHB = National Association of Home Builders; CrossMod® by dint of the Manufactured Housing Institute (‘MHI’); and, read ‘RVs as Affordable Housing’ in Visions in Leisure & Business academic journal, January 2024.

• Offsite Builder MAGAZINE, February 2024, ‘The Numbers on Offsite-Built Homes’ by Zena Ryder, pp.33-36. “In 1998, the share of single-family homes built using offsite construction methods was 7%. By 2022, that share had dropped to just 2%. The annual number of single-family homes built offsite has fallen from a high of nearly 80,000 in the late 90s and early 2000s, to just 25,000 today.”

EducateMHC’s ‘MHShipment volume’ @ January 2024 & ‘Stock Market Report’ for 4 March 2024.

Abbreviated summary of subject reports prepared and distributed on 4 March 2024.

Institute for building Technology & Safety (‘IBTS’) reported 7,475 new HUD-Code manufactured homes produced during January 2024. This is up 7.5 percent from same period in year 2023.

Among the ten public companies (five @ manufactured housing & five @ land lease communities) seven experienced stock price increases higher than this time last month, while two firms trended downward. Cavco Industries experienced the largest improvement, from $342.14 up to $371.50; Skyline Champion Corporation improved from $69.93 up to $85.16.

HUD Introduces $225M Manufactured Housing Plan

From ‘National Mortgage News, 2/29 Finkelstein. “An initiative by the Biden Administration is creating a $225 million fund to preserve and revitalize manufactured housing and the communities that many of those structures reside in.” The Preservation and Reinvestment Initiative for Community Enhancement Program (‘PRICE’) will offer financing through the FHA 223(f) multifamily Program, including funds for rehabilitating these homes. Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said, “FHA’s updated and expanded financing options complement the work of our colleagues in HUD’s Office of Community Planning and Development and Ginnie Mae, meanwhile, has revised its eligibility criteria for the Manufactured Housing Mortgage-Backed Securities program, reducing net worth and liquidity requirements. President Alanna McCargo said, “We’ve consulted the industry and worked closely with FHA to update and align our Title I eligibility requirements to support more financing in tandem with the vast improvements FHA is making to its program.”

Blog Posting # 782, Copyright 1 March 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable & attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as author and freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

Oop$!

Did you notice? I started a new topic in last week’s blog posting (‘On a Related but Different Matter: $’) but never finished it. Here’s how that paragraph went…

“Previous paragraphs described a whole new type of housing (@400 square feet) apparently intended to compete with HUD-code manufactured housing – by size and cost per unit. However, what was not covered in those same paragraphs was the continuing scarcity of personal property financing (a.k.a. chattel capital) for ‘home only’ mortgages on new manufactured homes sited in land lease communities nationwide.” And here’s how it should have continued….

My unrealized intent was to describe recent efforts of the Land Institute-sponsored Underserved Mortgage Marketing Coalition (‘UMMC’), to advance financing plans among the GSEs relative to underserved markets (i.e. manufactured housing). Well frankly, where the UMMC is concerned, that is not what happened. The following paragraph is one I emailed to dozens of MH industry and land lease community portfolio owners/operators about what I view as a ‘bait & switch’ move by said coalition.

“I found this edition of Land Lines (magazine) to be particularly interesting – up to a point. Impressed to see 32 affordable housing organizations working together to ‘bring housing finance opportunities to American families not traditionally served by the private market’. Appears most of the efforts of the Underserved Mortgage Marketing Coalition are focused on shared equity loans (i.e. those loans used to finance ‘resident-owned community’ transactions) – and nothing that I saw having to do with improving land lease community homeowners/site lessees’ access to chattel capital (i.e. personal property finance). Why is this? HUD-Code manufactured housing and land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) are indeed represented within the UMMC by dint of membership by ROC USA and Next Step. And I did find it strange that neither MHI nor MHARR are named as members (of the UMMC). I suspect this has something to do with the primary focus of the group.”

Point? Appears, to me anyway, that affordable housing activists have united under the                                                                             auspices of the UMMC to garner funds for shared equity CRE transactions, but not (at this point) what would be manufactured home buyers/site lessees really need: ‘home only’ loans in the form of chattel capital or personal property mortgages. So, once again – if I’m reading this right, our industry and realty asset class is left ‘out in the cold’ where Fannie Mae & Freddie Mac are concerned. Someone want to show me if I’ve got this wrong? Do so via gfa7156@aol.com

And there’s more! Manufactured housing, over past decades, has been referred to as the ‘Rodney Dangerfield of housing’ in general, factory-built housing in particular. Well – guess what – there’s now yet another ‘not so new game in town’ – offsite-built homes! Yep; modular & panelized homes.*1 Next week I’ll introduce you to this NAHB interloper.*2

End Note.

1. Rodney Dangerfield. American stand-up comedian
2. National Association of Home Builders

Review of 1968,

‘A Primer For Understanding Baby Boomers’, by Rick Robinson.

A more apt subtitle, in my opinion, would have been ‘A Primer for Understanding Northern Kentucky Baby Boomers’. Until I read this book I had no idea KY life was so rife with local politics, organized crime, and “…drinking small-batch bourbon and smoking cigars.” P.157.

Most humorous part of 1968, for me anyway, was Rick’s description of comedian Pat Paulsen’s campaign for president as candidate of the Straight-Talking America Government party or STAG party. His slogan? “We’ve upped Our Standards, Now, Up Yours.” Paulsen believed marijuana should be kept away from college students as it was too good for them, and the government should give everyone a gun, but confiscate all the bullets. P.103

Robinson’s description of Vietnam era individuals who “…spent a great deal of time devising ways to avoid service.” P.151, struck a responsive chord with me, my annoyance at healthy individuals who did not serve – resulting in unnecessary battlefield casualties when units fought understrength. And in my later years, silently denigrating those same dodgers when they became family members through marriage and otherwise.

As a history writer I was particularly struck by this quote: “…news stories about success are put into scrapbooks. News stories about bad things make their way into history books.” P.146. So true. Carolyn and I have 40 albums of family photographs stretching back 70 years. And here I sit with my unpublished story: ‘The Bad Boys of Manufactured Housing’, describing bag men, murderers, slum landlords, and other rascals active in manufactured housing and communities.

Did I enjoy 1968 as a casual read? Sure did; once I accepted the fact the scope of the book is restricted to the pivotal year 1968, and geographically specific to Northern Kentucky. This new release joins Rick’s seven political thrillers, two literary fiction tomes, and three other non-fiction titles. I particularly recommend Opposition Research.

By the way, if interested in reading ‘The Bad Boys of Manufactured Housing’, let me know via gfa7156@aol.com and I’ll write it into an upcoming blog posting. GFA

George Allen, CPM, MHM

Blog Posting # 781, Copyright 23 February 2024. EducateMHC

Know This! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable, attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! And EducateMHC is the online advocate, historian, trend tracker, and information resource for these two business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership & management, and as an author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (’MHI’), a founding board member of MHI’s National Communities Council (NCC’) division, an RV/MH Hall of Fam enshrinee, MHInsider editor at large & columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 nonfiction books & chapbooks re MH, communities, business management & prayer.

Here’s the 400-Square-Foot Subdivision House

This past Sunday (18 February 2024) the New York Times, in its’ Sunday Business section, featured a lead article titled ‘The Great Compression’, subtitled: ‘Thanks to soaring housing prices, the era of the 400-square-foot subdivision house is upon us’, penned by Connor Dougherty.

My first thought, before even reading the lengthy article, was: ‘400 square feet? Why that’s HUD-Code manufactured housing territory! How is this a new concept (i.e. 400 square feet subdivision house), let alone different from and or similar to our type factory-built housing already in place?’ Well, here’s some of what I learned from that New York Times feature.

“Several colliding trends – economic, demographic and regulatory – have made smaller units…the future of American housing, or at least a more significant part of it. Over the past decade, as the cost of housing exploded, home builders have methodically nipped their dwellings to keep prices in reach of buyers. The downsizing accelerated last year, when the interest rate on a 30-year fixed rate mortgage reached a two-decade high, just shy of 8 percent.”

“The shift is a response to conditions that are found in cities across America: Neighborhoods that used to be affordable are being gentrified, while new condominiums and subdivisions mostly target the upper end of the market, endangering the supply of ‘starter homes’ in reach of first-time buyers.”

So, what are housing designers and builders doing to ensure this ‘400-square-foot subdivision house’ concept continues to materialize? Some are designed and built as two-story homes. And “Builders are substituting side yards for backyards, kitchen bars for dining rooms, even shared yards.”

So, where did the writer of this article find ‘400-square-foot subdivision homes’? In Redmond, OR, and Elm Trails in San Antonio, TX. There was no mention of Tiny Houses until the final paragraph of this feature.

All this got me to thinking.

The model post-WWII suburb in Levittown, NY, featured 750 square foot houses. Today, that size has increased to 2200 square feet – to accommodate families with three children. And now, moving further into the 21^st Century, we’re reading, seeing and hearing of 400 – 900 square foot homes, for empty nesters, divorcees, and couples without children. Interestingly, these ‘small footprint’ homes are oft two stories with one car driveways out front. Oh, and get this, in many instances these 20’ X 20’ houses feature 20’ X 20’ attached garages – which double as ‘family rooms’ and gathering places for one’s neighbors.

Where is the HUD-Code manufactured home, especially the CrossMod design in this discussion? It’s simply not present. Why? IMHO, this is what our industry and realty asset class leaders should be discussing – at their meeting earlier this week in Amelia Island, FL. Was that the case? Not that I’ve heard. Someone want to tell me differently? Do so via gfa7156@aol.com

On a Related but Different Matter: $

Previous paragraphs described a whole new type of housing (@ 400 square feet) apparently intended to compete with HUD-Code manufactured housing – by size and cost per unit. However, what was not covered in those same paragraphs was the continuing scarcity of personal property financing (a.k.a. chattel capital) for ‘home only’ mortgages on new manufactured homes sited in land lease communities nationwide.

ANNOUNCEMENT

The RV/MH Hall of Fame Class of 2024 will be inducted at RV/MH Foundation’s annual banquet on Monday evening, 19 August 2024, in Elkhart, IN. Will you be present? I will! Sure hope you decide to be among the crème de la crème of the manufactured housing and recreational vehicle industries that day and night! For more information, visit their website or phone (574) 293-2344.

If you haven’t been to the RV/MH Hall of Fame facility during the past few years, you need to go. Why? Because now, besides the popular RV exhibit hall, the MH exhibit hall is now open to visitors – and it’s well worth touring!

Blog Posting # 780, Copyright 16 February 2024. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable, attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two business models. Access EduateMHC via (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership/management, and as an author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrine, MHInsider editor & columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 books & chapbooks re MH, communities, business management & prayer.

Yes, Some Did Have a Good Year in 2023!

Remember this blog heading from a few weeks ago? ‘Year 2023. A Lousy Year for You too?’

Well, one land lease community portfolio owner/operator reached out to me with this encouraging report:

“Last year (2023) was a VERY good year for my firm. We sold more than 30 new manufactured homes, compared to 20 in previous years. That’s a lot of new residents, and we upgraded our communities. Did so without reducing our requirements for new residents and lease-option home buyers. Our site rental operation was reasonably profitable because increases were moderate. Our portfolio of lease-option homebuyers continues to perform very well as a result of reasonable profit on home sales, attractive communities, and motivated, qualified new buyers. In fact, we’re so optimistic about the industry, and what we’re doing to upgrade and  fill vacant rental sites, we’re now planning two new raw land community developments in states where we have properties.” (Lightly edited. GFA)

How ‘bout you? Care to share your good news – or otherwise, with our blog readers? Let us know via gfa7156@aol.com

Now, the CPA ‘Dumps’ on Us!

Last week I warned our industry and realty asset class of negative publicity, and continued image challenges, when we leave ourselves open to national class action lawsuits alleging widespread predatory rental home-site rates, and honor firms who garner negative reputations in local housing markets, from marketplace trust organizations – due to firm’s poor-to-marginal performance ratings.*1

Well, this week I learned of a new book release titled ‘Trailer Park America’, subtitled, ‘Reimagining Working Class Communities’. And if that trade terminology gaffe and implied suggestion wasn’t bad enough, here’s what the CPA website has to say about the book as it describes an emerging trend: ‘Highlights crimes of capitalist housing’.*2

What’s this book about? “Sociologist (& author) Leontina Hormel’s ‘Trailer Park America’ is a granular examination of an ill-fated rural, working class community in a mobile home park located a few miles outside the small town of Moscow, Idaho.” Developed in 1966, it was a popular affordable housing alternative until infrastructure issues (i.e. water & sewer) made the homeowner/site lessee residents ill. The property has since closed.

I’ve declined to purchase and read the book at this time, as the paperback edition is priced at $37.95 and case bound edition at $72.95. If you buy and read it, let me know what you think via gfa7156@aol.com. And when you’re done with it, donate it to the RV/MH Heritage Foundation’s Hall of Fame library in Elkhart, IN. Why? Because this library houses the largest collection of manufactured housing, recreational vehicle, and land lease community books and resources in the world!

Yes, our industry and realty asset class are surely under scrutiny and attack these days. What are we doing to mitigate the three legal, media and text measures cited above and in last week’s blog posting? Not much that I see or hear of on the national level! Guess our leaders are hoping all this just ‘goes away’. Not!

As a concluding aside, ‘Trailer Park America’, in my experience, is maybe the third or fourth book authored by female university sociologists. To a person, they seem to have come to the conclusion – and perhaps rightly so – that land lease communities (a.k.a. trailer parks, manufactured home communities, ‘mobile home parks’) are fertile soil for sociological-oriented studies of middle and lower class citizenry. And as an industry, IMHO, we continue to encourage this unwanted attention by the way we mismanage some communities and mistreat others. What will it take to sound a Wake Up call to our industry and realty asset class?

End Notes.

1. Manufactured housing industry & land lease community real estate asset class; marketplace trust organization = Better Business Bureau.

• CPA = Communist Party of America

Now for Some Potentially Good News!

Have you heard or read about the Bonus Depreciation provision in the ‘Tax Relief for American Families & Workers Act of 2024’ working its’ way through Congress during the past few months? This Bonus Depreciation (i.e.Restoring bonus depreciation to 100%; presently at 80% in 2023 & 60% @ 2024) measure is potentially huge for land lease community owners/operators purchasing and selling or renting new manufactured homes on-site. How so?

To begin with, the Bonus Depreciation provision applies ONLY to community owners who rent or market new homes via lease-option. Independent (street) MHRetailers are not eligible for this. Bottom line? Who would not want to benefit from 100% depreciation the year new homes are purchased for on-site renting or selling?

Let your Congressman know of your enthusiastic support for this pending legislation!

Quotation of the Week

Are you a fan or critic of DEI? That’s short for diversity, equity & inclusion. We’ve certainly

heard much about it in the national news these past several months, especially with the

university ideology scandal perpetrated by the Israeli War. The following is quoted from the

February issue of ‘Newsmax’ magazine.

“The mantra of diversity, equity, and inclusion (‘DEI’) has been denounced… (and now) call it

divisive, exclusionary, and indoctrination.”

I give this quote space here, because I’ve heard DEI  ‘preached’ at MH seminars during

year 2023. And I’ve heard entrepreneur business owners/operators decry the ideology, as it has

caused problems within their business enterprises. And finally, who hasn’t seen the mock

tombstone photos on Facebook bearing the message: ‘White Couples on TV – 2000 – 2015: RIP’

George Allen, CPM, MHM

Blog Posting # 779, Copyright 9 February 2024. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing (‘MH’) is federally-regulated performance-based, affordable, attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! Educate MHC is the online advocate, historian, trend tracker, and text resource for these two business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole MH-focused professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership/management, and as an author & freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (’MHI’), a founding board member of MHI’s National Communities Council (‘NCC”) division, an RV/MH Hall of Fame enshrinee, MHInsider editor &INFLUENCER, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 books & chapbooks re MH, communities, business management & prayer.

OUCH!

The results are in. Year 2023 was NOT a good year for HUD-Code manufactured housing production! We knew we were sliding, but how badly? Well, during the past few months, Institute for Building Technology & Safety (‘IBTS’) reports showed we were 20+ percent off our year 2022 stride when we produced 112,886 new HUD-Code homes.*1

Final MH production figure for year 2023? Only 89,169 units; that’s 23,717 fewer new HUD-Code homes than produced during year 2022; and, 861 fewer new homes than EducateMHC predicted a month ago. Estimated total production VALUE of 89,169 new HUD-Code home produced during year 2023? $3.86 billion dollars! How many in government realize that?

By the way, how do these 89,169 new HUD-Code manufactured homes produced, compare with the total number of new recreational vehicles (‘RVs’) produced during the same period of time (2023)? Well, 313,000 new RVs produced during 2023 represents a 36.5 percent DROP in production compared to year 2022! Guess you could say, ‘MH misery loves company!’

Reasons for this lackluster MH production performance? Rather than regurgitate those reasons here, suggest you scroll back to blog posting # 774 and re-read the expose’ titled: ‘MH Headed to the Bottom Production-wise? Ah, But to the Top, Price-wise!’ That’ll tell you just about everything you need to know about the inner workings of the HUD-Code manufactured housing industry. IMHO, I don’t think our manufacturers want to produce more new MHs!*2

End Note.

1. Institute for Building Technology & Safety (‘IBTS’) is HUD’s official scorekeeper where the HUD-Code manufactured housing industry is concerned. IBTS data is routinely quoted by HUD, MHARR, MHI, & EducateMHC.

• IMHO = ‘In my humble opinion’

‘When It Rains, It Sometimes Pours!’

I believe that idiom, but how ‘bout now, when maybe it should be raining, even pouring, but is not?*1 As an industry, we might soon be faced with the reality of that idiom; but first, another salient observation, from radio talk show host Chris Plante (105.9 in Washington, DC): “The mainstream media’s greatest power is the power to ignore.”*2 So true, especially in today’s world. But what do those two truisms have to do with manufactured housing and land lease communities? Right now, only a little; but in the near future? Here goes….

Major law firms have filed antitrust class lawsuit(s) in the U.S. District Court for the Northern District of Illinoi, “…on behalf of mobile home owners impacted nationwide, against nine manufactured home community management companies and one manufactured home market data provider” alleging “they suffered substantial financial losses due to their landlords’ conspiracy to fix, raise, and systematically inflate manufactured home lot rental prices at more than 150 locations across the United States.” We all knew this was going to happen someday.

However, to date there’s been little to no mention of this in mainstream media and trade press.

And it’s alleged, one or more national advocacy and or legacy bodies, related to manufactured housing and land lease communities, recognizes – in a positive and awarding fashion, firms who’ve maybe have had bad ratings with Better Business Bureaus (‘BBBs’) in local housing markets where they do business. Isn’t this counterproductive to our image-improving efforts?

Here too, little to no mention of this peccadillo (?) in the mainstream media or trade press.*3

Given the HUD-Code manufactured housing industry’s perennial poor reputation and public image of the past, we hardly need additional fuel thrown one either of those two smoldering fires.

So, for now, and in general terms, negative media publicity is not raining down, let alone pouring down on us; however, if we, as an industry and realty asset class, continue to press our luck, so to speak, in either or both nefarious matters just described, we can expect not only rain pouring down on us, but more mainstream media attention than we need or want.

Anyone listening out there? Your reactions and suggestions welcome via gfa7156@aol.com

End Notes.

1. ‘When it rains, it pours’ is an idiom that ‘captures the experience when events, usually unfortunate, occur simultaneously or in rapid succession.’ An online definition. 

• It’s why today conservative print and broadcast media (e.g. New York Post & The Epoch Times & Fox News), in my opinion,outperform news reporting at the New York Times, Washington Post & MSNBC & CNN).

• Pecadillo. ‘a trifling offence’ – or worse?

NAHB, Freddie Mac, & NAR at Odds!

These three well known housing-related NGOs & a GSE are seriously at odds with one another when it comes to estimating the size of the nationwide housing shortfall these days!*1 Here are their respective estimates:

NAHB, in year 2021, publicized an estimated housing shortfall of 1.5 million housing units

Freddie Mac, in 2020, publicized an estimated housing shortfall of 3.8 million housing units

NAR, in 2021, publicized an estimated housing shortfall of 5.5 million units

Why the 4,000,000 difference in estimates between lowest and highest of these three estimates? In a word, ‘methodologies’. Here quoting from a Harvard Joint Center for Housing Studies press release, on this subject, dated 29 January 2024:

NAR “calculates the difference between the current number of vacant units for-rent or sale, and the total that would exist under ‘normal’ vacancy rates for each metro in the country, defined as the long-term average rates. The NAHB estimate is a sum of all U.S. metropolitan areas….” (Does not include non-metro areas, hence possibly why the lower estimate)

Freddie Mac’s estimate “…is also based on how much lower the current vacancy rate is than ‘normal’. However, there are notable differences in the two calculations. Freddie Mac’s estimate covers the entire US, not just metro areas. Second…Freddie Mac’s estimate includes an additional 0.4 million units for ‘missing’ households that did not form because of the shortage of housing units.”

NAR “…estimate does not compare vacancy rates. Instead, NAR based the estimate on the impact of the net slowdown in the rate of housing construction since 2000. Specifically, NAR compared the number of new homes added in 2001-2020 (being 1.225 million/year) to the number of homes that would have been produced if the previous historical annual average construction rate for 1968-2000 (i.e. 1.5 million/year) had held.”

There is an additional data point to consider. The National Low Income Housing Coalition (‘NLIHC’) estimate holds “…there is a shortage of 7.3 million units of housing affordable to the nation’s 11 million renters with extremely low incomes, defined as those who earn up to 30 percent of the median income for their area….” Wow! A 5.8 million difference between NAHB & NLIHC. No wonder folk are confused when they read reports from these four entities.

BOTTOM LINE to all this? “…affordability challenges faced by millions will require a concerted effort to not just add more units, but also more units affordable to the most economically vulnerable households.” And here, once again, HUD-Code manufactured housing and land lease communities nationwide hold the ‘affordability’ answer to this challenge! But will HUD finally get behind a major effort to not only identify, but promote, our brand of factory-built housing and lifestyle to the American home-buying public? Again, IMHO, ‘No’! Why? Political football!

So, what are we to do as an industry? Well, I’ve been saying and penning this for years, but here goes once again: Schedule national and regional strategic planning meetings to be attended by businessmen and women ‘with skin in the game’ (i.e. owning factories and communities) willing to invest a day or two of their time to address this national challenge! It’s been done before, in the land lease community segment of MH. In 1993-96 leading to the birth of MHI’s NCC division; in 2010 at meetings held in Tampa, FL., & Elkhart, IN., to move our industry off its’ nadir (lowest production point in history), using Community Series Homes (‘CSH’); and finally, in 2016, at the RV/MH Hall of Fame when community owners/operators were taught how to spec and buy new HUD-Code homes from factories, to market and sell on-site at their properties. We can do this again! We just need national leaders with vision, purpose and chutzpa (‘effrontery & gall’) to get it done! Are you one of those leaders?!

Again; your thoughts on these timely and critical matters? GFA 7156@aol.com

End Note.

1. NGO = non-government organization, e.g. NAHB & NAR. GSE = Freddie Mac. Specifically, National Association of Home Builders & National Association of Realtors.