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

Blog Posting # 732, Copyright 17 March 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317)881-3815, email gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (The sole professional property management text in print today!); SWAN SONG, a history of land lease communities and official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven – my combat adventures in Vietnam & business career in MH & communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame inductee, and retired lieutenant colonel of U.S. Marines.

Alexandria, VA., MHI & Affordable Housing

Alexandria, VA., is home to the Manufactured Housing Institute. MHI is home to the manufactured housing industry’s perennial national advocacy and lobbying effort to have its’ type factory-built housing, and land lease communities (a.k.a. manufactured home community) development, accepted in local housing markets nationwide as truly affordable housing!

Alexandria, VA., is home to “A proposed redevelopment property (that) recently died after a yearlong fight.”*1 “The brouhaha…shows how the not-in-my-backyard mindset blocks virtually any increase in housing supply, even those that strive to maintain local character while making relatively modest changes.” (I.e. a four-story mixed-use retail and apartment building)

In this particular Wall Street Journal  OPINION piece, penned by Stephen Ford, its’ ten word title speaks equally well to ongoing land use and rezoning fights waged by manufactured housing and land lease communities, and the recent imbroglio experienced by local developer Bonaventure Real Estate in Alexandria, VA:

‘Yes, There’s a Housing Crisis. No, You Can’t Build Here’

After describing the Alexandria, VA., redevelopment project rejection in detail, the writer concludes, “Until some middle ground can be found between not-in-my-backyard and yes-in-my-backyard, neighborhoods…will keep getting more expensive and less welcoming to newcomers.” The very conundrum also high on the priority list of the Manufactured Housing Institute in Alexandria, VA.

End Note.

1. Wall Street Journal, OPINION page, Saturday/Sunday, March 4, 2023.

Is the ‘National MH awareness’ Program Dead?

As a volunteer committeeperson working on this program since its’ inception last fall, I have heard nary a word about it since our last zoom call on Thursday afternoon, 23 February 2023.

That is, until I received a telling message from an interested party, combining the dismal MH production figure for the month of January (6,951 units reported by IBTS & MHARR) with said program:

“…four consecutive months of progressively worsening year-over-year production/shipment declines (@23.6 %!), at a time when the need for affordable housing and homeownership stands at record levels.”*1 MHARR

The telling message: This “Reminds me of the definition of insanity.*2 If ever we needed an image/promotion campaign it is NOW!” anonymous

Get the point? If what we’ve been doing, or not doing – as an industry and advocate thereof, year after year after year, to promote HUD-Code manufactured housing and land lease community development, is getting us nowhere, except backwards at present, then collectively we are insane! The solution? Up until this last zoom call, that’s what this committee of volunteers attempted to do – ideate, plan & execute a New National MH Awareness Program.

What’s zoomed wrong of late? Frankly, I’m not sure, though I have an opinion. What I do know, however, is this. Until a working group like this includes some ‘heavy hitters’ (e.g. CEOs of one or more major housing manufacturers and land lease community portfolios), and a charismatic, widely-known leader, as an industry, we are Dead in the Water! And if this august group should materialize soon, I think my earlier suggestion of four meetings during year 2023, rings true: at the Manufactured Housing Congress during April, at the RV/MH Hall of Fame during early August, at the annual SECO Conference in Atlanta during September, and finally, at the Louisville MHShow during January 2024.

What do you think about this matter? As before, let me know your ideas and thoughts via email: gfa7156@aol.com

End Notes.

1. Quoting from MHARR’s News Item dated 3 March 2023, and titled ‘HUD Code Production Decline Worsens in January 2023’

• Definition of Insanity: “Insanity is doing the same thing over and over again and expecting a different result.” This quote is misattributed to Albert Einstein.

Is a HUD-Code Manufacturer Shipping New Homes Sans HVAC?

Still researching… awaiting an answer…

FAMOUS HISTORIC QUOTE

“You have a business…you didn’t build that. Someone else did!” Barack Obama

When I first heard and read this amphigorical quote it reminded me of what to expect, all too often, from non-business enterprise types in our society. GFA

Blog Posting # 731, Copyright 10 March 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317)881-3815, email gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (Sole professional property management text in print today!); SWAN SONG, a history of land lease communities and official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven – my combat adventures in Vietnam & business career in MH & communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame inductee, and retired lieutenant colonel of U.S. Marines.

HOW WOULD YOU RESPOND TO THIS INQUIRY?

“Would you sell properties in your land lease community portfolio? Working with a private equity group aggressively acquiring communities in your market. They want to know if you’d be interested in selling individual properties, or entertain an offer on the entire portfolio for around $35,000,000 to $40,000,000.?” Yes, that’s the way the real estate broker inquiry read.

In this case, if the entire property portfolio sold for the amount cited – and there’s no reason to think it wouldn’t, the resulting ‘sale price per rental homesite’ would be between $70,000 and $80,000. So, how’d you respond?

To paraphrase this owner/operator’s response: “Not interested. Anyone paying that much for these properties would have to dramatically increase site rent for all homeowners/site lessees, and terminate existing staff they could no longer afford – the very people responsible for making these properties worth the purchase price.”

This sort of inquiry, when falling on receptive ears, is the root of a serious issue facing land lease community owners/operators nationwide! How so? For the first time in years, we’re fighting regional landlord-tenant legislation because of exorbitant rental homesite rates.

And not only that, tone deaf ‘new owners’ of said portfolios seem to believe offering scholarships to a few land lease community residents, or children thereof, effectively offsets opposition to rent increases. Not!

Solution? Not everyone will agree, but if new legislation springs from the effects of this latter day business model, perhaps the Traditional 3:1 Ratio Rule of Thumb will prevail in  practice; i.e. average conventional (3BR2B) apartment rent in a given local housing market, divided by three, suggests an equitable rental homesite rent in the same local housing market.

A Sneak Peek at My Life 55 Years Ago

Some of you know I spent most of year 2022, and now into 2023, working on my third writing project since retirement.*1 Since last April, I’ve been transcribing 400+ letters I mailed home to Carolyn from Vietnam in 1968 & 69. I’m 12 chapters and seven of 13 months into it to date.

Chapter 12 is different from preceding ones, as it chronicles what happened to me during February 1969. At that time I was a lieutenant of Marines and executive officer of a line company in the 3^rd Shore Party Battalion; and the battalion’s most experienced ‘rigging officer’*2 February turned out to be the most precarious and dangerous month during my 13 months in Vietnam – but not without some comic relief.

This first ‘peek into my life 55 years ago’ describes a serious, albeit humorous, concern; I was having about returning to civilian life in two or three months’ time. Writing to Carolyn…

“Any family dinners of late? I’m increasingly concerned about my table manners when I return home. Yup, you’re probably going to have to teach me all over again, as I eat combat rations using my fingers and a penknife. While I don’t recall making any noticeable faux pas’ while on R&R in Hawaii with you and Susie, I was as nervous as all get out at the time.

“Boy, I can just imagine my first family dinner back at your mother’s or grandmother’s house. All eyes will be upon me! Mouths will be a-gape as I pull out my trusty rusty penknife and commence to saw through the mint jelly-covered leg of lamb. Breaths will be checked as I gingerly finger the meat, pushing a little gravy around with it; and then, dripping gravy and jelly, slurp it into my mouth.

“Of course I haven’t seen real butter in over a year, so I will unceremoniously scrape the contents of the butter dish onto my plate, and commence to have ‘a little bread with my butter.’ I’ll be careful of course, not to squash the freshly-cooked peas as I pluck them from my plate, using my thumb and index finger as pincers.

“I’m afraid your mother will have to put milk into a canteen before I drink it, as I’m not sure I recall what a glass is, let alone how to use one. And of course, at about this point in the meal, the womenfolk will have collectively passed-out from shock and chagrin; and I’ll be just whetting my appetite.

“Are you sure your folks will want me over for dinner when I get home? You’d better warn and ask them.”

Now things did not turn out that way when I got home, but I sure did think through meal protocols before I dined anywhere for a while.

Next ‘sneak peek’ in this blog? Well, late in February I found myself in the Ashau Valley adjacent to the RVN & Laotian borders, tasked with rigging two huge 122mm Russian artillery pieces just captured, for helo-lifting back to Dong Ha forward combat base.*3 That night the NVA launched ground attacks in futile efforts to recapture these trophies. Firefights I certainly will never forget. Today, one of these canons is on public display at the USMC Museum in Quantico, VA. The other one? A fascinating but classified tale for another time, maybe.

End Notes.

1. First project was my autobiography, From SmittyAlpha6 to MHMaven. Second, encouraged by our adult children Susan and Adam, was a year-long StoryWorth writing project (Google it), resulting in a 400 pages case bound tome titled Carolyn & George, featuring a couple hundred short stories we penned describing our childhoods, courtship, and life together over 60 years.

• First half my 13 month tour in RVN I was a combat engineer platoon commander with the 11^th Engineer Battalion, building bunkers, clearing road mines, and more. Last half the tour I was executive officer, then commanding officer, of a shore party company. My specialty? Rigging 105 & 155mm howitzers, bulldozers, generators, and other exterior loads, via cargo nets and nylon straps, for helicopter-lifting to and from fire support bases throughout Leatherneck Square in northwest region of South Vietnam.

• These were two of the 12 such artillery pieces captured during Operation Dewey Canyon (Google Operation Dewey Canyon for online videos of this battle). While 10 of the cannons were spiked (destroyed by the enemy by rupturing their barrels) before capture, the two I rigged and flew intact back to Dong Ha were the two largest enemy weapons captured during the entire Vietnam conflict.

FAMOUS HISTORIC QUOTES…

A friend recently sent me a list of 20 significant statements made by well-known individuals. I plan to include just one of them at the end of the next several weekly blog postings….

“We just have to pass Obama’s Healthcare bill to see what’s in it.” Nancy Pelosi. To which one doctor is said to have replied, “That is also the perfect definition of a stool sample.”

SECO 2023

10 – 13 September 2023 in Atlanta, GA. More information to follow! See you there? Hope so!

Blog Posting # 730, Copyright 3 March 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (sole MH professional property management text available today); SWAN SONG, a history of land lease communities & official record of annual MH production totals since 1955; and, my autobiography, from SmittyAlpha6 to MHMaven – my combat adventures in Vietnam, & business career in MH & communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame Inductee, and retired lieutenant colonel of U.S. Marines.


The ‘Five Ls’ of Housing* Non-affordability

National Association of Home Builders (‘NAHB’) chief economist Robert Dietz says “…the real estate market is facing a ‘structural deficit’…caused by a shortfall in what he calls the ‘five Ls’: labor, lumber, locks, lending, and legal burdens.” Specifically, 1) a persistent skilled labor shortage, 2) fluctuating raw material costs, 3) increasingly expensive OEM appliances and parts, 4) rising interest rates on housing loans, and 5) large regulatory cost burden.

According to a National Association of Realtors (‘NAR’) spokesperson, (Housing) “supplies have declined to near-record lows, falling below one million units in December 2022….As a result, the U.S. is estimated to face a shortage of 3.8 million to five million homes, and that figure is growing.” Why? According to Senator Sherrod Brown (D-Ohio), “Combined sky-high rents with higher home prices with rising interest rates with too few homes on the market.” How high rents? Rent.com, in December, found the “…median monthly rent increased by 4.77 percent year-over-year to $1,978.” And when we apply the traditional 3:1 Rule of Thumb, for estimating land lease community rental homesite rates in any local housing market (In this case, using the national average), we calculate $690.00/month as a possible reference point.

A final related thought on the subject. “…many of the challenges facing the national real estate market also include the 1) age of housing stock, 2) the pressing need for energy retrofits and 3) residential properties that address seniors’ mobility needs.”

End Note. This material quoted from the 15-21 February 2023 issue of THE EPOCH TIMES, in an article titled ‘Affordability is ‘Greatest Challenge’ in Housing market: Experts’, on page A3.

Are you reading THE EPOCH TIMES ? You should be. Unlike most other secular news media platforms, this weekly newspaper eschews liberal political views espoused elsewhere and simply reports the Big Picture news, with details, ‘thinking readers’ value!


‘National MH Awareness’ Program Update

Eight interested parties met via a Zoom call from 4PM till 5:30PM, the afternoon of 23 February 2023. The group was comprised of four association executives, two freelance consultants, one corporate manager, and one retiree (me).

While we had been instructed beforehand, by ad hoc leader Ken Corbin, to come to this meeting with specific objectives in mind to share with the group – this did not happen. Rather, consensus was that, to date, we have no clear vision as to the nature and direction of a National MH Awareness program, and no present plans on how to arrive at that point.

After much discussion, it was clear the Manufactured Housing Institute (‘MHI’) already has resources in place to help state associations and members improve home marketing, land use planning, and combating local regulatory barriers to affordable housing. Concern was expressed that the work of this group might unnecessarily duplicate and lessen the efficacy of MHI’s efforts.

Two positive opportunities, relative to National MH Awareness, were described. Dr. Lesli Gooch of MHI has been invited to address the National Housing Conference, with emphasis on manufactured housing. And manufacturedhomes.com is working with 15 state associations to enhance their online presence. The unasked question, in my mind, was “Why aren’t all state MH associations on board to improve their representation of manufactured housing and land lease communities nationwide?

What’s next for this group? Here’s my thinking on the subject. Disband the group and start over; or, let time pass and see who ‘steps up to the plate’ to inspire and lead the next iteration of a National MH Awareness program. In my opinion, if and when the process begins anew, it should be led by a widely-known and charismatic manufactured housing executive (e.g. from one of the Big Three-C HUD-Code manufacturing firms) – or if they’re not interested, be sensitive to the presence of such an individual on the national scene. Then, restrict group size to a dozen members, with majority being bona fide business owners (e.g. independent-street-MHRetailers & land lease community owners/operators), along with a representative from MHI staff, and a couple state MH associations. Plan four in-person public meetings for this group, 1) at the annual MHCongress in the spring, 2) RV/MH Hall of Fame induction banquet during the summer, 3) SECO conference in the fall, and 4) Louisville MHShow mid-winter. Make this an industry-wide event! Though more difficult to control, it facilitates ‘buy in’ by everyone associated with manufactured housing and its’ sectors.



‘Mobile Home Freedom Program’

There’s a new manufactured housing relocation and placement program in Michigan! The ‘Mobile Home Freedom Program’ is sponsored by Mobile Home Freedom, a non-profit organization, led by Martin Boisture (810) 397-0946.

First off; just penning the above title and opening sentence rubs me wrong. Unless there’s a good reason (Like wording mandated by resource documents – as in this case), I prefer to speak and write about manufactured housing, NOT ‘mobile homes’. So, with that said….

Here’re some select passages from a colorful brochure distributed by Mobile Home Freedom, with this attention-grabbing headline: “IF THE PARK YOU LIVE IN JACKED YOUR RENT UP A CRAZY AMOUNT, FOR NO REASON, MOVE!” And then the sales pitch begins…

“Helping Mobile Home owners to have the FREEDOM to live where they want.”

“…we can bring valued seasoned residents to your (land lease) community to fill your vacant sites and homes.”

“Our (Mobile Home Freedom) program allows homeowners and renters to partner with one of our participating MH communities.”

Options described by Mobile Home Freedom?

1. “When you add up the TOTAL COST of filling one of your vacant sites with a new home in MI, ready to sell or rent, the cost will be at a minimum of $60 per sq. ft.” Would like to see the documentation and calculations that led to this conclusion.

2. “Bringing (in) a pre-owned home, ready to sell or rent, the cost will be approximately $30 per sq. ft.” Hmm. Same editorial comment. Single or multi-section resale home?

3. “The Mobile Home Freedom Program can facilitate the move of an owner-occupied home on to one of your vacant sites, the cost will be approximately $12 per sq. ft.”

“We also facilitate moving residents who are currently renting homes in other communities to your communities. They are great prospects not only to rent your homes, but also to purchase your homes.” This sounds like raiding lessees in one community and sending them to another.

And finally, this caveat couched as exclusivity. “If your community is interested in applying to participate in the MOBILE HOME FREEDOM PROGRAM, please contact us. There will be a limited number of participating communities per each geographic area.” Hmm. Wonder how that exclusive selection will be made?


This is One Pithy Sentence About MH!

In a recent communique from the Manufactured Housing Association for Regulatory Reform (‘MHARR’), dated 23 February 2023, titled: ‘Latest Wake-up Calls for the Industry on consumer Financing & Discriminatory Zoning’, Mark Weiss pens, in part:

“…affordable HUD-Code manufactured housing cannot fulfill its’ statutorily-recognized role as a prime source of affordable homeownership so long as new (land lease) communities cannot be developed and new homes cannot be financed, due to continuing zoning and consumer financing discrimination that is already prohibited by federal law….”

Well put Mark. In my opinion, everyone with personal and corporate interest in manufactured housing and land lease community business models should memorize the above sentence, then make it a point to read the entire communique – available via (202) 783-4087 and MHARR@mharrpublications.com

Remember, as an industry, we only produced and shipped 112,886 new HUD-Code homes during year 2022. This was the highest level since year 2007 or 15 years ago, when we produced and shipped 96,769+/- new MHs. Why the (+/-) notation? To acknowledge MHI calculates annual MH production and shipment totals different than everyone else. Since year 2013 however, annual figures like these have been verified using Institute of Business Technology & Science (‘IBTS’) data paid for by HUD.


GFA

Blog Posting # 729, Copyright 24 February 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (Sole MH property management text available today); SWAN SONG, a history of land lease communities & official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven – my combat adventures in Vietnam & business career in MH & communities.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame inductee, and retired lieutenant colonel of U.S. Marines.


MHI Takes Legal Action to Delay DOEs ‘Energy Conservation Standards for Manufactured Housing’

Despite a recent (5 February 2023) lambasting of the Manufactured Housing Institute (‘MHI’) by MHARR’s long retired founder/still influencer Danny Ghorbani*1, for not engaging with the Department of Energy’s (‘DOE’) ‘Energy Conservation Standards for Manufactured Housing’, MHI on 14 February sent an Important Message to Members from Chairman Leo Poggione, describing the institute’s recent legal action to delay implementation of said standards on 31 May 2023.

The following summary paragraph well-describes what I’ve seen, heard and read about MHI’s ongoing efforts to stop implementation of the DOE standards: “For several years, MHI has been pursuing a multipronged strategy to stop implementation of the DOE standards until the standards are properly incorporated into the HUD Code. Progress has been made with HUD and lawmakers, and we are continuing to work with DOE and HUD to find a workable and affordable solution. However, with the looming deadline and continued lack of clarity from DOE, MHI decided legal action was the only option available.”

End Note.

*1 Manufactured Housing Association for Regulatory Reform communique (2/5/23) titled: ‘Using MHARR’s White Paper to Evaluate the Veracity of MHI’s Public Relations Activities’. The tone of this diatribe (‘bitter and abusive denunciation’) was clear in the first sentence: “To be frank, I don’t particularly seek to read anything published by MHI.” Danny Ghorbani

Recent Grassroots Answer to U.S. Housing Crisis

Perhaps it’ll take this straight-from-the-heart critique and commentary, from a longtime land lease community owner/operator, to get the rest of us motivated to communicate and work with local land planning and zoning regulators, increasing opportunities for manufactured housing placement in our local housing markets. The following communique, lightly edited, was recently emailed to nearly a hundred folk throughout the U.S. manufactured housing industry.

Referencing an article titled. ‘Don’t Call Them Mobile – Manufactured Housing Might is the Answer to U.S. Affordable Housing Crisis’ – with this lead: “In the first half of last year, more than 50,000 manufactured homes were shipped across the country….” the owner/operator goes on to say….

“…more often than not I see these articles in Yahoo News or elsewhere talking about ‘affordable housing’. But these articles don’t turn up in our local papers where local commissioners are clamping down or trying to cut off the blood supply (i.e. purchase of new manufactured home) to our industry.

When was the last time state MH association executives or property owners invited county or city commissioners out to look at a new home or land lease communities?

Yes, we still have some dogs (disreputable ‘mobile home parks’) that bring down our industry, and property owners who refuse to haul junkers to local landfills. But we have many nicer communities that would make great places to visit and tour with local reporters and elected officials. Who has invited local codes enforcement officials to view new homes lately?

I’m guilty here. Haven’t done this in years, but when I did, there was good publicity for our community and industry. Also the same with our unique large tornado shelter for residents. I’m ready to do this again!

We need our state MH associations to invite a select group of community owners, in each state, to work on and fund a media blitz for our affordable housing products. Perhaps our housing manufacturers would join us and furnish up to date information on the quality and energy usage of these homes. Our $125,000 3BR/2B homes look pretty good when compared to the payments on a $300,000 site-built home!*1

I hear there’s interest in launching national level manufactured housing brand awareness and
advertising campaign. Why wait? Let’s do both! We have folk in our group here in the southeast who’ve led the way cleaning up dilapidated ‘parks’ and worked with elected officials, who’d be willing to share how they did it.*2

End Notes.

1. Manufactured Housing Institute has just this sort of data, and much more, readily on hand and available for the asking via (703)558-0400 & manufacturedhousing.org

2. David Roden via (423)760-4819 & davidroden@yahoo.com

Blog Posting # 728, Copyright 17 February 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com, or visit EducateMHC.com, to order Community Management in the Manufactured Housing Industry (Only MH property management text available today); SWAN SONG, a history of land lease communities, & official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven – my adventures in Vietnam & business career in MH & communities ownership.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame inductee, and retired lieutenant colonel of U.S. Marines.


THE BIG NEWS FIRST

End of year 2022 HUD-Code housing production/shipment grand total is now history. What is that final figure? Well, first let’s remember the end of year 2021 total was 105,772 units. Hint. The 2023 total is larger! But how much so? Pick a number: 112,886 or 112,882 or 112,863 or 112865. Yes, all four totals were reported yesterday, respectively, by EducateMHC, MHARR, MHI, & EducateMHC, again. How is this possible?

First off, know the first two totals, reported respectively, by EducateMHC & MHARR, are based solely on unadulterated month-by-month data supplied by HUD’s reporting agency, the Institute for Building Technology & Safety or IBTS. Why the six unit difference? At this point in time the two of us are unable to agree on our respective mathematical computation acuity.

The next two totals, reported respectively by MHI, and other with MHI methodology mirrored by EducateMHC, are in part, based on IBTS monthly-reported data, but with a twist. MHI takes the IBTS figure, each month, and deducts from it the number of Destination Pending Units (‘DPUs’) – also reported by IBTS. Then, to that reduced subtotal, MHI adds back the number of DPUs deducted the previous month. Consequences? Fairly close alignment between annualized total of IBTS monthly reported units, and those adjusted by MHI – but never the same! Why? Because there’ll always be a lag, small & large, transferring DPUs from one year into the next. And in this particular case, my ‘adjusted’ month by month annualized total, using MHI methodology, is two units different from MHI. Go figure.

So, the Big News is this: IMHO, the number of new HUD-Code homes produced and shipped during year 2022 was 112,886. This makes year 2022 the best year since 2006, when 117,510+/- new HUD-Code homes were produced and shipped. Also recall how year 2006, in industry annals, is memorialized as the year of the Katrina Factor – recalling how the hurricane significantly boosted FEMA house production for a time

Oh, and bet you’d like to know just how much those 112,886 new homes (production value only) contributed to the national economy. Well, using MHI’s formula and factor, researched by Dr. Stephen C. Cook (consultant), where he valued the average new HUD-Code home, again production-wise, at $43,126; the annualized value pencils out to approximately $4.87 billion! Now, this formula and factor are at least a decade old, so it stands to reason there’s room for update. My guess is a more accurate $ factor is closer to $60,000 per HUD-Code manufactured home, increasing annualized production value to $6.8 billion! MHI has promised to address this matter for some time. Perhaps they have, but just haven’t informed us, the hoi polloi.

And the Wall Street (& Canadian) stock markets has been looking favorably on HUD-Code housing manufacturers and land lease community portfolio owners/operators of late. On 6 February 2023, four of five public housing manufacturers saw their stock prices increase. And all five of the land lease community portfolio firms saw their stock prices increase. Overall, the Composite Stock Index (‘CSI’), tracking nine or these ten ‘players’, increased from $676.86 last month to $750.49 this month. That’s still $39 behind the all-time high of $790.07 recorded in January 2022.

If you’re not receiving our monthly ‘MHShipment Volume & Stock Market Report’, but would like to, it’s FREE by letting me know of your desire via gfa7156@aol.com or phone (317) 881-3815.


STRATEGY OR CONTRATEMPS?


OK, what I’m about to share with you is either a straight-up business enterprise strategy, or it’s simply a contretemps. What’s a contretemps? It’s an ‘embarrassing occurrence’. Got that?

This started with an email from a ‘friend in the industry’ who happens to be a deep thinker. Yes, we have some of them in the manufactured housing industry, even some among my land lease community brethren. And I hear from them from time to time – like now.

In any event, he described the recurring presence of high-end HUD-Code manufactured homes displayed on the U.S. National Mall in Washington, DC., as being ‘smoke and mirrors’. Well, first off, what’s ‘smoke and mirrors’? Generally, ‘an explanation or description that is not true or not complete, and used to hide the truth about a matter.’

Here my friend described how HUD-Code housing manufacturers ‘pitching these homes as affordable housing, to get concessions’ was misleading, since the lavish display units are not nearly as affordable as smaller, simpler lines of manufactured homes. So, is that a simple straight-up marketing strategy to sell more (and more profitable) new homes? Or is it an embarrassing occurrence, where truly affordable housing, though the theme of the event, is not present on the National Mall at all?

Our deep thinker (and I) go on to call for better education of federal and state bureaucrats relative to adopting a working definition of affordable housing; addressing the dire need to ameliorate local regulatory barriers to all forms of affordable housing; and – once and for all – realize the manufactured housing product and the land lease community lifestyle, in tandem, offer the absolute best form of affordable housing available to homebuying consumers today!*1

So, what say you? Which is it, or both? A strategic business strategy or contretemps? Let me know your thoughts via gfa7156@aol.com

End Note.

1. Working definition of affordable housing. The following definition has been commonplace since at least year 2007. “Housing is affordable when an individual or household’s annual Gross Income (‘AGI’) or local housing market’s Area Median Income (‘AMI’) – identified by postal zip code and available online via zipwho.com, can lease a conventional apartment or buy a home in this local housing market, using no more than 30 percent of said AGI, or AMI, for shelter, and related household (utility) expenses.” See p. 44 of SWAN SONG, available for purchase via EducateMHC.com


ENDING ON A LIGHT NOTE…

In a recent edition of the AMAC magazine, they identified Merriam-Webster’s 2022 ‘word of the year’ as being ‘gaslighting’. The writer goes on to say, “This outcome seems fitting considering the pervasive lies and misinformation pushed to the American people by the mainstream media and the President of the united States. At least we can be thankful the word of the year for 2022 was not ‘woke’.”

Blog Posting # 727, Copyright 10 February 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, factory-built affordable housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit EducateMHC.com, to order Community Management in the Manufactured Housing Industry (Only MH property management text available today); SWAN SONG, a history of land lease communities, & official record of annual MH production totals since 1955; and my autobiography, from SmittyAlpha6 to MHMaven – my adventures in Vietnam & business career in MH & communities ownership.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, & RV/MH Hall of Fame


Attention Navy & Marine Corps Veterans

‘Homecoming 250’ will be a national celebration of the founding of the U.S. Navy & the U.S. Marine Corps, in their birthplace, the city of Philadelphia, PA., during October of year 2025.

‘The Navy and Marine Corps were created by the Continental Congress in Independence Hall, organized at Tun Tavern, & launched their first ship & amphibious mission on the Delaware River.’ To this end, ‘Homecoming 250’ Navy Marine Corps will assemble ships representing every American conflict from the Revolutionary War to the present. The unique historical sites (including a restored Tun Tavern) and ships will provide an unmatched visual backdrop for Americans across the country to see the history of our naval forces.

Yes, this stellar event is 34 months away. But now is the time, especially if you or someone you know is a Navy or Marine Corps veteran, to mark it on your calendar and plan now to attend. I’ll see you there!

On a very personal note, I was sworn into the U.S. Marine Corps in 1964 at the U.S. Naval Base in Philadelphia. My engineer platoon constructed a 30’ tall naval gunfire spotting tower on the south edge of the DMZ in South Vietnam, facilitating ship-to-shore bombardment of the enemy by the famous battleship, the U.S.S. New Jersey – now birthed along the Delaware River in Philadelphia, PA. And like every Marine, I want to ‘hoist a brew’ at historic Tun Tavern (birthplace of the USMC) before I die! GFA


Challenge & Suggestion Conversation Continues
The Challenge? How to effectively address the “…problem of sharply escalating rental homesite rates in land lease communities!” throughout the U.S.?

The Suggestion! “Encourage National Communities Council division (i.e. MHI’s NCC), and realty asset class at large, to ascribe to the decades old (i.e. ‘time-proven) 3:1 Formula for balancing conventional apartment unit rent, and land lease community homesite rent, in (every) local housing market!” For details, reread last week’s blog posting # 726.

Following are direct quotes from the many responses we’ve received to the ‘A Challenge to & Suggestion for, the MHIndustry’ blog post of one and two weeks ago.

“…as much as the industry needs incentive for change, so dies MHI. They are so busy looking out for manufacturer interests; they either do not have the bandwidth, or feel any reason to mess with site rents or reigning-in of investors.” If you disagree with this, let me know!

Furthermore, “Most investors look for a minimum of 20% or greater ‘return’ on their investment, which is achieved via a combination of increasing rents and or reducing operating expenses. Part of those expenses are property and income taxes. Income taxes alone are 20%; so governments could say: ‘If you agree to certain rent controls, we’ll cap your income tax at 5% and you still get full depreciation.’ The same consideration needs to be made for reserves and capital expense improvements for properties with extensive deferred maintenance. And there could be property tax incentives to investors for bringing in both a huge tax base and inexpensive labor to serve tight labor markets due to lack of housing. Right now, the only thing government knows is capping rents without consideration of negative consequences and that is what needs to be communicated and corrected!” (Lightly edited. GFA)

And this mixed message from the Manufactured Housing Institute. On one hand MHI reports “…the White House announced new actions to protect renters and promote rental affordability, including a new ‘Blueprint for a Renters Bill of Rights’. On the other hand, MHI goes on to report, “…manufactured housing is not specifically referenced in the Blueprint.” But this isn’t the whole story. MHI and its housing coalition partners have “…stated that housing providers and renters are (already) governed by layers of statutes, case law, regulations, and private contractual agreements – all providing for specific protections and responsibilities.” Bottom line? “MHI and its coalition partners argue that layering additional federal regulation on an already overly regulated industry will only further exacerbate housing affordability challenges, making it increasingly difficult for renters to navigate. So, MHI is indeed working in our behalf on the federal regulatory level. But the question remains, when and how will MHI work with NCC members and non-member companies to address the ongoing problem of sharply escalating rental homesite rates in land lease communities throughout the U.S.? As I posed in the previous blog: ‘An interested business audience is watching to see what occurs during the months ahead!’ – at the winter NCC meeting, at the MHCongress in Las Vegas, and beyond.

This from another responder to this ‘challenge & solution’ blog topic: “I read recently about your 1-3 rule. I respectfully disagree. I think it should be a 1-2 rule. An apartment owner supplies two items to his customers, land and structure. I supply half that package, that is, the land. I submit it makes sense for me to charge half what an apartment owner charges in rent, rather than a third.” I suppose there’s some logic in this proposed rule, but for anyone who’s owned and operated a conventional apartment community, there’re more and greater operational and capital improvement expenditures involved relative to marketing (dealing with a 50+% annual turnover rate vs. 10% with land lease communities), make-ready of vacated units (i.e. carpet cleaning, appliance servicing & wall painting), real estate taxes (on buildings vs. just land), and more.


National Manufactured Housing Awareness

So, is the program ‘paneled’ on 19 January 2023, at the Louisville MHShow, ‘dead in the water’ OR is it quietly-but-effectively being planned as you read these lines? All I know is there are at least four opportunities on the MH horizon where this program can be further discussed even moved ahead: MHI’s winter meeting (already past when you read this), a Zoom call on 16 February 2023, maybe at the Biloxi MHShow, and certainly at the annual MHCongress in Las Vegas. When and where will YOU be involved in bringing this to fruition?

One thing ‘for sure’ is the need to bring heavy hitters, executives with ‘skin in the game’ into the planning and execution (i.e. ‘as in performance’) stage of National Manufactured Housing Awareness. And who might they be? At the very least, reps from Clayton, Cavco, and Skyline/Champion; also from the largest of the land lease community portfolio firms, independent (street) MHRetailers, and some or all the 18 chattel capital lenders who exhibited at the recent Louisville MHShow. Without that broad support, there’s not much point in even, once more, starting down this road – hopefully, to increased home sales and production!

Not everyone is enthused about what you’ve been reading here and before. Quoting from one of the most well-known and respected individuals in the manufactured housing industry: “George. Hate to be a naysayer, but we have been through this advertising program exercise before and to no avail. (Agreed. GFA). I get tired of hearing of the 300,000+ past (unit) production, etc… Plants are at peak production now and expanding. The problem is a regional one, and an advertising campaign can’t be a one size fits all, as the RV (marketing) program has been. Looking for something to do? Roll out the plan prepared at great expense by MHI and then shot down by the ‘Gorilla in the Room’ years ago.” (Lightly edited. GFA)

Now there’s something maybe worth looking into. I doubt many who read this weekly blog posting recall the past MHI proposed program and how it got shanghaied. Are we setting ourselves up for a similar contemporary disappointment today? I don’t know, but think it bears looking into by the present day planning committee. Who will brief current MHI leadership of the historic details?

Blog Posting # 726, Copyright 3 February 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, factory-built affordable housing, and land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) are the real estate component of manufactured housing! EducateMHC is online advocate, historian, trend tracker, and text resource for these business models. To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit EducateMHC.com, to order Community Management in the Manufactured Housing Industry (Sole MH property management text in the U.S. today!); SWAN SONG, a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven, from combat in Vietnam to community owner

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, & RV/MH Hall of Fame


A Challenge to & Suggestion for, the MHIndustry

Last week I emailed the following Challenge & Suggestion to dozens of manufactured housing industry leaders and land lease community owners/operators throughout the U.S. And we’ve been receiving helpful replies; but first, the Challenge & Suggestion (lightly edited. GFA).

“I’m dismayed to hear and read NOTHING from or about MHI’s National Communities Council (‘NCC’) division efforts to address today’s ongoing problem with sharply escalating rental homesite rates in land lease communities from coast to coast. In my opinion, today’s NCC is NOT the organization that 19 community owners, meeting on 8/31/1993 in Indianapolis, IN., had in mind! Part of their original Mission Statement proclaimed the “goal of providing affordable housing and a quality lifestyle”, with one of the Issues of Note identified in that founding document as being: “Avoiding and combating rent control and landlord/tenant legislation”. NONE of this is happening today!*1

“Do I have a suggestion for combating the problem of sharply escalating rental homesite rates in land lease communities? Sure, but it’s one I’m reluctant to make – as a former 40 year owner/operator of this unique income-producing property type.*2

Encourage NCC division members, and realty asset class at large, to ascribe to the decades old (i.e. ‘time-proven’) 3:1 Formula for balancing conventional apartment unit rent, and land lease community site rent, in any local housing market! How so? First, effect a local housing market survey, then ascertain the average monthly apartment rent among 3BR2B or townhouse units. Then, divide that average $ by ‘3’, to estimate what land lease community rental homesite rate should/could be. For example, $1,500 average apartment unit rent divided by ‘3’ = $500.00 per month rental homesite rate.*3 Does this always work? No. It’s already out of sync in markets where community portfolio owners/operators have skewed site rents closer to a 2:1 ratio (e.g. $1,500/apartment unit & $750/rental homesite). However, formally adopting and endorsing the 3:1 Formula would be a major step in the right direction! Question is whether the NCC will be bold enough to take a public stand on this issue, suggesting this & other practical remedies?

An interested business audience is watching to see what occurs during the months ahead!

And as was mentioned earlier, replies to this email challenge have been rolling in of late. Here’s a summary of some of those commentaries:

“George. The 3:1 Rule has been replaced with ‘whatever the market will bear’. Unfortunately, with high moving costs, and counties with move-in restrictions (e.g. age, size), ‘the market’ has no choice but to charge outrageous site rent rates – until residents run out of money.
&
Those who sell their communities for ridiculously low income capitalization rates can’t blame buyers for subsequent rent increase damage to residents – how else can buyers pay such ridiculous prices without substantially increasing rents?” (Edited for space. GFA)

“George. We hear you, but out here in CA we now have more than 100 rent control ordinances designed to protect affordable housing – but the thing everyone forgets is that rent is only a portion of that monthly cost. For example, in Oxnard, CA. we’re allowed limited yearly CPI increases and max of $80 increase upon a home sale. This is very one sided, as residents now sell pre-1976 homes, for which they paid $30,000 in the 70s, for a minimum of $200,000. Furthermore, no new land lease communities have been built in CA for nearly 20 years! We had more than 500,000 rental sites in CA; today fewer than 400,000.
&
If it is such a great business model, why are there less than 150 manufacturing plants throughout the U.S.? I think California now has but six. As you’re aware, location-location drives rents in California. We currently have site rents above $5,000/month and some still under $300/month. The good news is, as a company, we continue to enjoy 100% rent-producing occupancy among more than 13,000 rental homesites because the demand for manufactured housing (i.e. affordable housing) is still a great alternative!” (Edited. GFA)

It’s not too late for you to input your observations and views into this timely and critical conversation. Simply email your thoughts to me via gfa7156@aol.com

End Notes.

1. The complete founding document of the Industry Steering Committee (‘ISC’), i.e. forerunner of the NCC division launch on 1 January 1996, is featured on page #97 in the book SWAN SONG, available for purchase from Educatemhc.com

2. Why reluctant? Because, as a former community owner, I don’t like anyone telling me how to run my business enterprise. But, sad to say, the time has arrived for some sort of definitive action of this sort. Who knows? Perhaps some other organization than the NCC division will pick up this voluntary regulatory baton and run with it. Possibly SECO, ROC USA, even one or more of 500+/- known land lease community portfolio owners/operators.

3. Don’t forget to factor into the estimate, adjustments for amenities and extras like water & sewer charges, CATV, etc…


POSITIVE POSSIBILITIES

Two weeks ago (i.e. blog # 724) I revealed the identity of ‘mystery community owner’ as Dr. Matthew Jenkins, DVM. Well Dr. Jenkins, before his passing in 2017, authored the autobiography, Positive Possibilities. His life story joins nearly a dozen other such books penned by pioneers and noteworthy owners/operators of land lease communities over the past several decades.*1 I recently read Positive Possibilities (available via amazon.com), and here’re selections from the book, as well as my observations.

Matthew was strongly influenced by his large family while growing up in Alabama. Here he describes a typical table conversation led by his mother who’d: “…gather us around the breakfast table and talk about life. She spoke of integrity, values, and setting goals, success, honesty, discipline, hard work, getting along with people, and finding a lifetime mate” – and in her words, ‘If you want to be successful, your word is your bond. If you tell a person you are going to do something, do it. Take pride in everything you do. If the job must be done, do it well. Be careful about the friends you choose. Make sure their values are consistent with yours.’ Pp. 32 & 33.

A lesson to his children and business associates: “…your reputation is all you have. If you tarnish it, doors of opportunity well slam shut. So my advice to any youngster is this: ‘Don’t half do anything. To see a botched job appalls me. If you can’t do it right, keep trying until you get there. If you’re really stumped, ask for help from someone you respect’.” P.60

His Success Formula? “…train your mind to look for positive possibilities in any situation, no matter how bleak it may seem. Tough situations test your character. Many people miss out on opportunities during tough times – discrimination, hard financial times, and countless other challenges.” P. 87

Matt’s advice to land lease community owners/operators and independent (street) MHRetailers? “…customers are your greatest advertisers. If you treat them right, they will recommend you to others. This seems elementary, but too many business owners forget this. The customer may not always be right, but they should always be treated right. You can’t have angry customers talking badly about you. It will destroy your business.” P.139. Know what? Considering our realty asset class’ struggle with extravagant rental homesite increases these days, this advice just might be the Achilles ’ heel that leads to the landlord/tenant ‘shakeout’ many of us fear is in the not too distant offing. Matthew, goes on to say, “What I see in this country right now is a scourge of greed in the business world.” P.170

Dr. Jenkins was a voracious reader. Four daily newspapers. And this, “Learn to discipline yourself to read instead of watching television. I read because it inspires me, often ushering me into a state of comfort and tranquility, and it can do the same for you.” P.146

So, how did I get to know Dr. Matthew Jenkins? He bought my 500 rental homesites land lease community during the early 1980s; and in the process, he, his wife Roberta, Carolyn and I dined a couple times in a fine French restaurant in Mooresville, IN, that no longer exists. His musings on our business model? “Overall, I feel eminently fortunate to have unwittingly discovered the mobile home park investment opportunity.”p.150 (&) “At our peak, we owned 18 parks in eight different states.” P.154

His final word of advice? “Hard work, discipline, and sacrifice channeled into the implementation of a well-researched strategic game plan is an age-old formula for success in any endeavor.” P.167

So, those of us who knew Dr. Matthew Jenkins were blessed to know a true and honorable business man. Hopefully, some day, he’ll be selected for induction into the prestigious RV/MH Heritage Foundation’s Hall of Fame.

End Note.

1. Here’s a summary list of manufactured housing and land lease community autobiographies housed in the RV/MH Hall of Fame library in Elkhart, IN. Also indications as to where you can obtain copies to read. Suggest you save this list for future reference.

• Kristian Jensen, Sr., authored A Danish American. The first such life story, but long out of print, and available for reading, only in the RV/MH Hall of Fame library in Elkhart, IN.

• John Crean, with Jim Washburn, co-authored The Wheel & I. A leather-bound tome with gilded pages and engraved cover. Available via amazon.com & the RV/MH Hall of Fame

• James Clayton, with Bill Retherford & Amy Nolan, co-authored First a Dream. Available for purchase via amazon.com & the RV/MH Hall of Fame. (800) 378-8694 Ask for Jose.

• The life & Times of B.M. Vukovich, a family-produced photo-autobiography chronicling the personal adventures & business career of the late Borislav (‘Boro’) Vukovich. Available for reading only in the RV/MH Hall of Fame library.

• Harrell & Darrell Cohron, with Matt Cohron, co-authored The Trailer Twins. Available only from the RV/MH Hall of Fame, and for reading at the RV/MH Hall of Fame library.
• Mike Conlon’s Unconventional Wealth reads like the first half of this author’s life story. Available via amazon.com, and for reading in the RV/MH Hall of Fame library.

• George N. Goldman authored The Road Less Traveled. George’s perfect bound book is available for purchase via amazon.com, & for reading at the RV/MH Hall of Fame library.

• Alvan L. Schrader’s No Respect At All…A PATH TO MILLION$, is considered by some to be ‘required reading’ about manufactured housing. Available from RV/MH Hall of Fame.

• Samuel Zell authored Am I Being Too Subtle? Published by Penguin Random House in 2017; title is available via amazon.com & for reading at the RV/MH Hall of Fame library

• Jim, Ralph & Jeff Scoular co-authored Leap of Faith, ‘The Story of an Industry, Family & Unmovable Values’. Available for purchase only from the RV/MH Hall of Fame

• Dr. Matthew Jenkins, DVM, authored his autobiography, Positive Possibilities, ‘My Game Plan for Success’, in 2017. Available for purchase via amazon.com

• George Allen, CPM®Emeritus, authored semi-autobiographical SWAN SONG to preserve annual MH production totals from 1955 forward. In 2021 EducateMHC published George’s autobiography, From SmittyAlpha6 to MHMaven, to commemorate his retirement. Both books available from EducateMHC.com and the RV/MH Hall of Fame.

Only a few copies of the memoir HOW TO booklet, Who Will Preserve Your Legacy (as a manufactured housing or community businessperson)? remain, a new updated edition is being prepared for distribution to 2023 RV/MH Hall of Fame inductees. If you’d like to receive a free copy of the updated booklet when ready, simply communicate your desire to me via gfa7156@aol.com GFA

Blog Posting # 725, Copyright 27 January 2023. EducateMHC

Dual Perspectives. HUD-Code manufactured housing is federally-regulated, factory-built affordable housing and land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) are the real estate component of manufactured housing! EducateMHC is the online national advocate, historian, trend documenter, and text resource for these business models. To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (The only property management certification text!); SWAN SONG, a history of land lease communities & official record of annual MH production since 1955; and my autobiography, From SmittyAlpha6 to MHMaven. All excellent resources for community owners/operators in the U.S. & Canada.

George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, & RV/MH Hall of Fame


Where to Begin?

Did you ‘do’ the Louisville MHShow last week (18-20 January)? If so, did you notice? 30 new HUD-Code homes were promised in advance press, but only 16+/- in place. Furthermore, the highest number of chattel capital lenders present (i.e. 18) since 1998 – the peak year of the last MH production renascence (i.e. 372,943+/-homes). Nary any exhibits by land lease community portfolio owners/operators, but several real estate brokerages. Also a few ‘land development’ firms looking for work – and these were encouraged during the manufacturers’ panel presentation on Wednesday, when a panelist declared ‘Land lease community development is back!’, but failed to mention how ‘local regulatory barriers to affordable housing’ continue to be one of our industry’s most persistent bugaboos, and now that interest rates are rising, ‘good luck’ finding reasonable land development loans anytime soon! And there was more. Read on…

Did you know there’s a National Manufactured Housing Awareness program in the making? Well there is, and it has been evolving throughout year 2022. Under the present volunteer leadership of consultant Ken Corbin, 20 committee members met for lunch at a local Louisville restaurant Tuesday afternoon, to fine tune Thursday’s Awareness Panel at the MHShow. And how’d that go? Ken and his three panelists (Dr. Lesli Gooch, MHI; Jennifer Hall, Mississippi; and Jim Ayotte, Florida) kept an audience of more than 100 ‘in their seats’ for nearly 1 ½ hours, reviewing market research and introducing outreach plans working in MS & FL. A survey form was distributed, polling audience opinions ranking importance of various marketing factors. Here’s a summary of some of ‘What’s important to you?’ responses from 72 completed forms: Affordable housing = 38 responses; Consumer Awareness = 35; Local Government = 28; Home Quality = 24; Lead Generation =21; and five lesser factors. What’s next?

Continue to follow this weekly blog to stay abreast of developments during the months ahead!

Scott Jackson (1955 – 2023)

ARC or Affordable Residential Communities, Casa Feliz – the investment firm, and ‘the man with the white mane and beard’ are three ways Scott Jackson’s friends and associates in the land lease community business will long remember him.

Scott died on 6 January 2023 at his ranch in Kiowa Colorado. There will be a memorial service in his behalf on Saturday, January 28th between 3 & 4 PM, at Cielo Castle Pines in Castle Rock, CO.

His claim to fame? Quoting from an online obituary: “In 1995 Scott (founded) Affordable Residential Communities (‘ARC’)…the company was taken public in 2004. In all, the company acquired over 380 communities and managed a portfolio of (more than) 70,000 home sites…”

My relationship with Scott Jackson? Visited ARC offices in Denver around year 2000, where I met his executive staff – all similarly attired. Over the years, I ‘mystery Shopped’ most of the firm’s land lease communities, and described the ‘ARC Treatment’ of new property acquisitions in Manufactured Home Merchandiser magazine, e.g. property names changed, replacement of all signage with same color scheme, repaved streets, improved infrastructure, and more. Scott was a keynote presenter at International Networking Roundtables – where he regaled his audience with ‘war stories’, lessons learned, and memorable experiences. Last time I visited with Scott was at the Louisville MHShow a few years ago.

The only thing missing here is a tell-all book by Scott, describing the meteoric growth of ARC, ‘that auction’ in Chicago, and phoenix-like rise of Casa Feliz since the turn of the century.

Scott’s passing reminds me of other notable but now deceased pioneers and entrepreneurs of the ‘mobile home park’ business: Tom Horner, Jr (KS); Ron Richardson (NV); Darrell & Harrell Cohron, (IN)**; Kristian Jensen, Sr., (CT)*; Boris Vukovich, (CO); George Goldman, (IL); Mel Fath, (IN)*; Curt Hames, (IA)*; Maggie Stephenson, (IN)*; Bob Bross, (MO); Maurice Wilder, (FL); Warren Huddleston, (IL)*; Dr. Matthew Jenkins, (CA); Myles Sampson, (PA); and my longtime mentor, Bud Meyer, (IN). Seven of these 15 individuals are members of the prestigious RV/MH Hall of Fame*, and six authored autobiographies. I interacted with these folk and easily recall interesting, humorous, and educational tales about each one. I doubt I’ll get to pen all those stories.


DID YOU KNOW ?

Today, 27 January 2023 marks the 50th anniversary of the formal end of the Vietnam War! Yes, this is important to me because I served 13 months there during years 1968 and 1969. You can read about my combat adventures there and after returning home, in my autobiography, From SmittyAlpha6 to MHMaven. Available via EducateMHC.com

Recently came across some very interesting, albeit correcting, statistics relative to this conflict. Source? Marine and Vietnam War veteran, Mackubin Thomas Owens, who served at the Naval War College in Newport, RI, and the Institute of World Politics.

• 30% of those who died in Vietnam were from the lowest income group, but
• 26% were from the highest.
• 86% of those who died during the war were white, and
• 12.5 were black (in an age group In which blacks comprised 13.1% of the population)
• Two thirds of those who served in Vietnam were volunteers, and
• Volunteers accounted for 77% of all combat deaths.

Point? “Vietnam was not a ‘class war’, as the liberal, aging antiwar crowd has commonly and unceasingly claimed for decades” – since the end of that conflict.

Without a doubt, serving in Vietnam as a U.S. Marine lieutenant, was a pivotal point in my life, and those of my immediate family members. For a decade, after returning home, I was unable to cry when appropriate, and for longer than that, was mirthful during funerals of friends and family. All that is behind me now. And I’m grateful my son, grandson, and 18 year old great grandson do not have to stand in the line of fire in defense of our great nation. Semper Fi! GFA

GFA/cc

Blog Posting # 724, Copyright 20 January 2023. EducateMHC

Two Perspectives. HUD-Code manufactured housing is federally-regulated factory-built affordable housing. Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) are the real estate component of manufactured housing! EducateMHC is the online national advocate, historian, trend spotter, and education resource for these business models. To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, &r visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (property management certification text); SWAN SONG, history of land lease communities & record of annual MH production since 1955; and my autobiography, from SmittyAlpha6 to MHMaven. Apt resources for community owner’s!

George Allen, CPM®Emeritus, MHM®Master, Emeritus Member MHI, & RV/MH Hall of Fame


Who’s the Mystery Community Portfolio Owner?

Last week’s blog posting (#724) challenged you to identify one of the most talented owners/operators of land lease community portfolios to invest in the realty asset class. Well, here’s the answer:

Dr. Matthew Jenkins of Long Beach, CA., during his long and distinguished career, served our nation as a Captain in the U.S. Air Force; private practice veterinarian; real estate mogul (i.e. portfolio of land lease communities located in more than a half dozen states); local philanthropist (i.e. funding education of many minority children); and, during 2013 served as interim president of his alma mater, Tuskegee University. He and his wife of 61 years, Roberta, founded their real estate investment firm, SDD Enterprises; and later, the Matthew & Roberta Jenkins Family Foundation, awarding scholarships and grants to deserving students, institutions, and local organizations. During the latter part of his long career, Dr. Jenkins authored a self-help text titled Positive Possibilities – which I’ll review in a future blog posting. Dr. Matthew Jenkins passed from this life on 24 September 2019.

Carolyn and I met Matthew and Roberta Jenkins during the early 1980s, when he purchased the large (i.e. 500 rental homesites) Lantern Hills Village ‘mobile home park’ I owned with partners, in Mooresville, IN. While our time together was brief, sharing some meals together, we long appreciated their friendliness and fairness in business matters.

In my opinion, Dr. Matthew Jenkins is a deserving but unrecognized and unsung hero of the manufactured housing industry! Why? Because he quietly went about his business of real estate investment, in time became a renowned education philanthropist in his home city, and shared personal ‘lessons learned’ in a tome still available on amazon.com Perhaps one of these days I’ll reconnect with his son Dexter, and take steps to nominate Matthew for induction into the RV/MH Heritage Foundation’s prestigious Hall of Fame in Elkhart, IN.
Anyone Else Out There an NCIS Fan?

I am. And even now, with Mark Harmon as ‘Gibbs’ out of the character lineup, I watch most episodes on TV. How ‘bout Gibbs’ Rules? Ever wonder about them? Well I have a detailed list of 35 ‘rules’ – though some say there’re 69. Here’re some that lend themselves to application by owners/operators and professional property managers of land lease communities:

• Rule # 1. Never screw over your partner.
• Rule # 3. Never be unreachable.
• Rule # 5. You don’t waste good.
• Rule # 8. Never take anything for granted.
• Rule # 15. Always work as a team.
• Rule # 28. When you need help, ask
• Rule # 51. Sometimes you’re wrong.

And there’re a few rules outside this norm:

• Rule # 23. Never mess with a Marine’s coffee if you want to live. (Especially one who drinks his coffee out of a canteen cup that is never cleaned. True story.)
• Rule # 9. Never go anywhere without a knife. (Kinda old-fashioned in today’s woke society, but good advice nonetheless)
• Rule # 12. Never date a coworker. (We’ve all seen the consequences of abusing this rule.)

The above material is quoted from TV Guide Magazine Special, dated March 2022, p. 64.

Blog Posting # 723, Copyright 13 January 2023. EducateMHC

Perspective. Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’ are the real estate component of manufactured housing! EducateMHC is the online national advocate, realty asset class historian, trend spotter, and education resource for land lease communities throughout North America! To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit EducateMHC.com to order Community Management in the Manufactured Housing Industry (the property management certification text); SWAN SONG, a history of land lease communities & only official record of annual MH production since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven. These three books belong in every land lease community owner’s library!

George Allen, CPM®Emeritus, MHM®Master, Emeritus Member MHI, & RV/MH Hall of Fame


Character in New Adventure Novel…

“George Allen: USMC Colonel, CAG of the USS Teddy Roosevelt. A veteran of WWIII (served with the President) and an Ace fighter pilot, he now commands the air combat group. With rising tensions between US and China in anticipation of the transfer of power, the carrier group is sent from Pearl Harbor as a show of force. A series of accidents and encounters (has) him taking charge of the expedition, facing the challenges of command, and trying to prevent an escalation of hostilities.”

This is the way I’m introduced in longtime land lease community owner/operator Charles Irion’s 17th murder mystery adventure novel. There are already plans for it to be released as a feature-length movie. I’ve seen the trailer (mini-movie) and it’s full of action scenes. Have followed Chuck’s budding writing career for nearly two decades, often reviewing his newest releases in the Allen Letter. This is the first time he’s written me into one of his fictional adventure tales.

For a complete list of Charles Irion’s titles, visit www.charlesirion.com And while you’re there, or at amazon.com, consider ordering a copy of Murdered By Gods – Timbuktu. I’ve read it and it is one exciting ‘read’. GFA


Mike Pence’s autobiography, So Help Me God

Most of you reading these lines will remember Mike Pence as vice president under President Donald Trump; Hoosiers remember him as governor of the state of Indiana; and I remember him as a guy I knew at church in Greenwood, IN., before he went off to Congress.

Recently finished reading his autobiography, So Help Me God. There is much to absorb and consider within those 542 pages; from Mike’s young and formative years in central Indiana, through his political disappointments and triumphs, and globe-traveling years as vice president of the United States of America. And the intimate sharing of his experiences and thoughts during the January 6th demonstration in downtown Washington, DC, alone, makes this a worthy ‘read’.

Beyond all that there were a few memories and memorable quotations that touched me.

“…during a visit at the RV/MH Hall of Fame in Elkhart, Indiana”, speaking of Pete Buttigieg (former mayor of South Bend, IN., now Secretary of Transportation), “I think Pete is a good public servant, a patriot, and I look forward to continuing to work with him.” (&) “But Mayor Pete’s attitude changed dramatically after he announced his campaign for president in January 2019; he suddenly adopted the caricature of me and of Indiana held by many of his West Coast donors. Politics can do that to you.” P.115

Know how I frequently encourage mature and successful businessmen and women to early pen their memoirs (i.e. ‘true short stories’), later to be collected as their autobiography? Well later in Mike’s book, when talking of former President George H.W. Bush, he recollects how his son Michael, now a U.S. Marine aviator, made his first tail hook (sic) landing on the aircraft carrier bearing Bush’s name. Mike sent President Bush a photo of that exciting moment, which was soon returned with a personal and encouraging note, in part: ‘I wish you many CAVU days ahead.’ (CAVU, an old aviation acronym for ‘ceiling and visibility unlimited’). Mike’s concluding and ‘telling’ observation? “Bush never wrote an autobiography, so the story of his life in his own words is spread out across the countless letters he wrote, including the one he sent my son.” Pp. 327 & 328. A missed presidential opportunity.

Late in the book, describing his speech writing early morning 6 January, Mike shares, “For me there is no good writing, just good rewriting, and I labored over my words to make sure they conveyed my position clearly and my determination to fulfill my oath under the Constitution that day.” P.456.


A Mystery For You!

I recently reconnected, via an online obituary, with a business acquaintance from 40 years past. Here are your hints as to his identity. He was the only racial minority-owner, in my experience, of a portfolio of land lease communities spread through more than a half dozen states. His obituary identifies him as a USAF officer veteran, veterinarian, real estate mogul, philanthropist, author, and 2013 interim president of his university alma mater.

If this mystery intrigues you, be sure to read next week’s blog posting (# 724) on or around 20 January 2023. At that time I’ll identify this successful, but very private, community owner – the name of his firm, title of the self-help book he authored, and more.