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

Blog # 273 Copyright 2013 1 December 2013

George Allen Writes About Key MHBusiness Interests & Concerns – & More…

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

Purpose of this blog. To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!

Ways to respond: Critical responses & helpful ideas Welcome for future blog coverage; gfa7156@aol.com; Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

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MHInitiative®2014*1

As I started to pen this week’s blog posting, and given the nature of narratives I was about to share, I recalled this earthy riposte:

“Hey, you do know the difference between a fairy tale and a sea story, don’t you?”

Well, a fairy tale begins…’Once upon a time….’, while a sea story starts…’This ain’t no sh–!”

With that rhetorical juxtaposition in mind, YOU DECIDE THIS TIME NEXT YEAR, whether what transpired during year 2014, was indeed a fairy tale come true – OR one gone seriously awry; OR, is it a sea story with no one left around to tell or who cares?

Manufactured Housing’s ‘Perfect Storm’ in 2014?

The confluence of several interrelated factors & happenstances suggest it so!

Let’s begin with MHI’s Conference Call with state manufactured housing association executives on 21 November, AND the ‘too little too late’ Senate Bill mirroring House Bill # 1779, a.k.a. ‘Preserving Access to Manufactured Housing Act of 2013’. (On ‘Thanksgiving Day’ we were still waiting Senator J. Donnelly (D-IN) to introduce the latter bill – six months late, and a scant month before the end of this year’s legislative session!) Go figure.

Taken together; given the gist of said conference call, teaching ‘How to Live with the Truth in Lending Act’, rather than fighting it or welcoming needed/expected changes; and, effecting this last gasp, as penned earlier, ‘too little too late’ Senate Bill aping the stalled House Bill, suggests our industry’s efforts to unravel Dodd-Frank legislation, have been akin to stepping on Super Man’s cape, pissing up a rope or into the wind, even like repeatedly transporting, setting up, and dissembling a HUD-Code multisection manufactured home! It simply isn’t gonna – or in the latter instance, happen! But is THAT ‘the Real Story’ around and behind the failure of this round of legislative change effort? Methinks Not. But let’s wait and see what the unintended (Really?) consequences turn out to be, during 2014, (A hint) ‘regarding respective corporate National Market Share percentages of 1) HUD-Code home manufacturing, and 2) chattel capital sourcing.’

Here’s a summary look at major manufactured housing industry components or segments, and what they should consider doing in 2014, to weather the Perfect Storm:

HUD-Code home manufacturers. Learn to play better with the land-lease-lifestyle community folk! Whether you agree or not with last week’s blog headline: Land-lease-lifestyle Communities = Future of the Manufactured Housing Industry!, know until easier – to – obtain chattel financing, of new and resale manufactured homes sited in LLLCommunities ‘returns’ in volume to this industry, this unique, income – producing property type, is the only game in town, with an estimated 250,000 vacant rental homesites to be filled nationwide; that is, unless one wants to hang his/her future on ‘fracking’. So, if you’re not already aggressively marketing Community Series Homes, a.k.a. CSH Models to LLLCommunity owners/operators, big and small, learn how to do so during 2014! Two hints: First; pressure national advocacy bodies to plan and host a National Strategic Planning Meeting focused on how to effectively market CSH Model homes to the 42,500 LLLCommunities NOT in anyone’s property portfolio! And, if not already familiar with the ‘5 – RPs of Marketing’ and how they apply to you and LLLCommunities, order a FREE plastic wallet card containing what you need to know about Right Product, Right Place, right Price, Right Promotion, Right People. *2

Land-lease-lifestyle Community Owners/operators. Property disposition and consolidation among portfolio ‘players’, in the U.S. & Canada, continues unabated. Read the 25th anniversary ALLEN REPORT (A.k.a. ‘Who’s Who Among Land-lease-lifestyle Community Owners/operators Throughout North America!’) for details – and much more.*2 Number One concern among owners/operators continues to be filling vacant rental homesites with new homes and qualified homeowners/site lessees. This only happens ‘today’ when has sufficient and reliable sources of chattel capital to engage in one form or another of self – finance; more about that later. In this MHIndustry veteran observer’s opinion, the second most obvious shortcoming, throughout the realty asset class, is the absence of professional property management, at all levels. For the most part, we continue to run our valuable income – producing properties ‘by the seat of our pants’. If not already familiar with the aforementioned ‘5-RPs of Marketing plastic wallet card – for LLLCommunities, order one today. Also ask for the ‘Ah Ha! & Uh Oh! Worksheet. And if you’re really bold and conscientious, you’ll sign all your property managers up for training and certification as Manufactured Housing Managers® or MHMs®! *3

Manufactured housing finance. This is one area where ‘angels surely fear to tred’. As an industry, we have a bad, repetitive history of abusing our access to personal property (chattel) capital, seeing dozens of independent, third party ‘lenders’ of this type financing ‘come and go’, over the years. Memories of our most recent debacle, looking back to 1998 – 2008, a period sometimes labeled our Enronesque period, remains painful and consequential, i.e. Five years of record low ‘new home shipments’ @ 50,000+/-/year, and still no easy access to any volume of reasonable chattel financing for new and resale manufactured homes on – site in land-lease-lifestyle communities! Today? Appears we fight (or comply) with state and federal financial regulations on every front. Oh sure, chattel capital is available from the (now) Big Five + One independent lenders serving the manufactured housing industry, but only to prospective homebuyers/site lessees with ‘higher than average’ credit scores.*4 During the past five or more years, some new, and some old, terms like self – finance, ‘captive finance’, and lease – option have come to the fore, as more and more land-lease-lifestyle community owners/operators aggressively market, sell and self – finance new and resale homes on – site in their properties. How pervasive have these practices become? The annual ALLEN REPORT, during the past several years has estimated/documented more than $5 billion dollars of ‘contract sale’ paper on – site; this up from a few million dollars at the turn of the Century. And, during 2013, one of the nation’s largest LLLCommunity owners/operators, Zeman MHC, launched it’s own ‘bank’ (Green Hill Financial), to serve the chattel finance needs of other property portfolio owners/operators, first in a few states, then more….

End Notes.

1. MHInitiative®. The latter day or successor term for the National State of the Asset Class caucuses held on 27 February 2008 & 2009 respectively. Every year since then, we’ve ended the year, at PMN Publishing, with an update regarding the landmark matters decided upon at those two seminal meetings. Here you have this year’s summary and look ahead into year 2014. To learn what happened at the two aforementioned NSAC caucuses, read Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, & Affordable Housing, PMN Publishing, 2011. To order, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

2. To order the 25th annual ALLEN REPORT and or FREE ‘5 – RPs of Marketing plastic wallet cards (one for HUD- Code home manufacturers & one for LLLCommunity owners/operators), phone the Official MHIndustry HOTLINE in previous end note.

3. ‘Ah Ha & Uh Oh! Worksheet for calculating ‘affordable’ & ‘risky’ new & resale price points for homes going into LLLCommunities or site conveyed fee simple, use the Official MHIndustry HOTLINE in end note # 1.

4. 21st Mortgage Corporation, Triad Financial Services, Inc., CU Factory Built Lending, U.S. Bank – Manufactured Housing Finance, & Green Hill Financial; as well as Vanderbilt Mortgage and Finance, Inc. (latter = Clayton Homes’ in – house chattel lender)

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Blog # 272 Copyright 2013 24 November 2013

George Allen Writes About Key MHBusiness Interests & Concerns – & More….

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

Purpose of this blog. To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: Critical responses & helpful ideas Welcome for future blog coverage; gfa7156@aol.com; Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

***

News for Today, Tomorrow & 2014, You’ll not get from anyone or anywhere else!

Some reading this blog posting, have not been making my transition to semi or full retirement easy – or even possible. Several weeks ago, I’d pretty much decided to sell – out (Yes, there was a verbal offer on the table, ‘to pick up where I leave off…’, but that’s all it turned out to be); even discussed the sensitive matter with a ‘mutual friend in the MHBusiness’, while on Marco Island, FL. during Rent Manager® annual user’s conference. OR, whether to launch the much ballyhooed NEW ERA business alliance for land-lease-lifestyle community owners/operators, large and small, nationwide.

Well, now comes word of a national meeting maybe being planned (Not by me) for ‘seriously interested parties’, early in 2014, to gauge the level of interest in, and garner commitments to, found a new national entity that’d ensure even – handed national advocacy, apropos statistical research, resource updating & distribution, regular print & online communication, affordable peer networking & deal – making opportunities, along with professional property management training & certification. Since those are the same seven function areas identified with the new Community Owners Business Alliance, the announcement caught my attention. Main Difference? This latest initiative is apparently inclusive of ALL post – production components or segments of the HUD-Code manufactured housing industry, not just the land-lease-lifestyle community folk.

As I’ve said before, I have no desire to head any new organization! After all, I’m trying to slow down, not assume more responsibility. But I’m certainly interested in any credible national presence, new and otherwise, focused on providing the seven aforementioned functions to MHBusinesses Large and Small! And frankly, we won’t really know until (1) the sale of GFA Management, Inc., dba PMN Publishing assets is consummated with a qualified, industry experienced, motivated entity or party; or (2) an alternative new national presence is established; or, (3) the much heralded NEW ERA dawns for land-lease-lifestyle communities at the start of the New Year 2014! So watch your postal mail closely, and read the December issue of the Allen Letter professional journal, for details as to how YOU can participate in the Community Owners 7 Part Business Alliance, or ‘COBA7’, for short. GFA

I. I.

Land-lease-lifestyle Communities=The Very Future of Manufactured Housing Industry!

II.

HAVE YOU GONE ‘LIFESTYLE’ YET?

III.

Where Will YOU Be on 21 January 2014?

IV.

Visit New Manufactured Home @ RV/MH Hall of Fame in Elkhart, Indiana.

V.

We Continue to Receive Responses to this Blog & Pithy Matters Contained Therein…

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OK, This is a Long Blog Posting, so Hang On & Let’s Go!

I.

Land-lease-lifestyle Communities=The Very Future of Manufactured Housing Industry!

The following bold statement by a veteran land-lease-lifestyle community owner was posted online recently, ‘setting the new home shipment stage’ for the present & near future of HUD-Code manufactured housing nationwide…

“We, land-lease-lifestyle community owners/operators ARE the future of the manufactured housing industry! Independent (street) MHRetailers can not compete with us because

1) We can, and should, sell new manufactured homes at or near COST (i.e. ‘Making new manufactured homes sited in land-lease-lifestyle communities, the most Affordable Housing alternative available in the U.S. today!’); and,

2) We have superior ability and experience cultivating chattel finance lending models (e.g. Securing $ support from private investors, lending sources in local housing markets, etc.) to support the on – site marketing and sale of new and resale homes!

Therefore; HUD-Code home manufacturers, continuing to suffer historic low new home shipment levels, have little to no choice – if they’re paying attention and indeed want to prosper, than to cater to the housing design, size restrictions, and feature needs/wants of land-lease-lifestyle community owners/operators, large and small, nationwide – as we buy their new homes, to resell to prospective homebuyers/site lessees!” (Edited. GFA)

‘WOW!’ And to that pithy and challenging statement, I’d simply add: It’s estimated there’re approximately 250,000 vacant rental homesites among 50,000+/- land-lease-lifestyle communities nationwide! HUD-Code ‘new manufactured housing shipments’ continue, after five years, to languish in the 50,000 – 60,000 range, down from the short – lived renaissance of 372,843 new homes shipped during 1998. Yes, some HUD-Code home manufacturers have learned how to market Community Series Homes, or CSH models*1, by the dozen, to some, but not all, 500+/- known property portfolio owners/operators of land-lease-lifestyle communities in the U.S. and Canada (A half dozen Canadian firms own many LLLCommunities throughout the U.S.) – by accessing the exclusive, confidential ALLEN REPORT contact data base via PMN Publishing.*2 However, most of them do NOT have A CLUE how to reach the 85 percent of 50,000 properties, numbering fewer than 100 rental homesites apiece! THAT will (should) be their corporate challenge during 2014, IF they want to push new home shipment volume above 60,000 during the next 12 months. Is that possible? Sure. Not as easily as the ALLEN REPORT -based Direct Mail campaigns (@ $1,000 per access) to 500+/- portfolio ‘players’; but doable, nonetheless.

HOW? Let me first suggest how NOT to strategize marketing CSH Model homes to the estimated 42,500 smaller land-lease-lifestyle communities nationwide.

1) Do not announce and host a national meeting, to this end, with a generic ‘feel good’ agenda, in some high – priced downtown venue! That’d be a patent waste of time and valuable resources, with little to no useful results. Rather;

2) Announce the nature and goal of this major problem – solving challenge, via every manufactured housing and land-lease-lifestyle community – related print and online media available! Invite anyone and everyone – businessmen and women owners of factories and land-lease-lifestyle communities alike, large and small, but willing to Invest in a FOCUS Group Strategic Brainstorming Session, to do these three things:

• Prepare and send advance correspondence to the meeting planner, listing ideas, as well as creative, even routine ways to identify & reach out to this difficult to reach market (i.e. 42,500 Mom & Pop – sized, often passive investors, who don’t belong to MHTrade bodies or read MH print & online newsletters, & ezines.)

• Register for, and arrange to arrive the night before said meeting, at an economical host hotel located an easy distance from a major Midwest international airport. Come prepared to spend a full day engaged in the most important Strategic Brainstorming Session of their business career! Use a professional facilitator.

• Walk into that FOCUS Group Strategic Brainstorming Session committed to fully participate, and not be satisfied until this national MHInitiative® has generated ideas, creative and routine ways, to identify and reach out to market and sell new manufactured homes into 42,500 land-lease-lifestyle communities nationwide!*3

Hey Out There! Are the HUD-Code manufactured housing industry’s ‘elected & salaried national & regional leaders’ listening, reading, paying attention to what’s going on around them, and how – at present – we’re ‘Going Nowhere Slowly’?! Here’s how to tell. Watch to see & read what ‘They say & do’ during the days & weeks – not months, ahead

In the meantime, as usual, let me know where YOU stand on this timely, key issue: ‘How to market and sell more HUD-Code manufactured homes into land-lease-lifestyle communities – of all sizes, filling as many as 250,000 vacant rental homesites ASAP, from coast to coast!’ Use contact information listed at the beginning of this blog posting.

End Notes.

1. Community Series Homes description and list of features, available FREE, by phoning Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also contains names of manufacturers’ Business Development Managers.

2. What’s a portfolio owner/operator? Sole proprietor, partnership, corporation, or REIT, owning/fee managing minimum of five LLLCommunities and or minimum of 500 rental homesites. To access the 500+/- name list of land-lease-lifestyle community owners/operators, phone the same number listed in end note # 1.

3. What’s an MHInitiative®? It’s the catch-all term that’s replaced the National State of the Asset Class caucus moniker used successfully during 2008 & 2009, to rally MHIndustry & LLLCommunity businessmen and women to 1) take control of their collective business future, and 2) agree on a new line of manufactured homes for placement in LLLCommunities, i.e. Community Series Homes or CSH Models. Frankly, it’ll take a new and fresh MHInitiative® to get the MHIndustry ‘moving again’. But this time it’ll be up to our elected and salaried national leaders to seize the initiative and exercise leadership in solving this five year long stalemate, now malaise.

II.

HAVE YOU GONE ‘LIFESTYLE’ YET?

BUILDING EXCELLENCE is the (annual) Official Magazine of the Canadian Manufactured Housing Institute. Well, the 2013 edition arrived this past week, filled with interesting and enlightening articles relative to manufactured and modular homes (design) in Canada. And there were articles headlined as follows:

FACTS ABOUT LANDLEASE COMMUNITIES

‘Ask and Compare – FINDING THE RIGHT (LANDLEASE) COMMUNITY

And, this one: Parkbridge, ‘Your bridge to smarter living’. But know what really caught my attention about this? The full and proper name of the firm:

Parkbridge Lifestyle Communities, Inc.

If the firm’s name sounds familiar, it should. In the 24th annual ALLEN REPORT, Parkbridge Lifestyle Communities, Inc., was listed as the eighth largest owner/operator of land-lease-lifestyle communities in the world!

But that’s only half the story. Everyone reading this blog posting is also likely familiar with the real estate investment trust (‘REIT’),

Equity Lifestyle Communities, Inc., or ELS, Inc.

According to the 24th annual ALLEN REPORT, ELS, Inc., is the Largest Owner/operator of Land-lease-lifestyle Communities in the world!

Boy, talk about confirmation of ‘being on the right track’, where the evolution of business terminology is concerned, relative to our unique, income – producing property type! If the largest U.S. owner/operator, and Canada’s largest owner/operator of property portfolios comprised of land-lease-lifestyle communities, find it appropriate to incorporate the word ‘lifestyle’ into their full and proper name, why not YOU? Think about it!

Furthermore, reading of ‘landlease communities’ throughout BUILDING EXCELLENCE, also confirmed my conviction that we’ve finally, after decades of experimentation, hit upon the right choice and combination of descriptive words to describe our (again) unique, income – producing property type! And perhaps during the next year or two, our Canadian neighbors will follow our lead, and insert hyphens into the descriptive term:

Land-lease-lifestyle Community!

***

III.

Where Will YOU be on 21 January 2014?

Me? I’ll be attending Rishel Consulting’s One Day $95.00 Seminar in Louisville, KY (That’s the day BEFORE the Louisville MHShow begins), Learning What Can & Not Be Said & Done, by Sales Professionals, While Selling Manufactured Homes – so as not to run afoul of regulators! Ignorance of regs is not an excuse.

For more information, and or to register, simply phone (217) 899-9268. A friendly piece of advice. This special, one day specialty sales seminar will sell – out quickly, so don’t delay signing – up. I’ve already done so! See YOU there? Hope so!

When we do see each other, ask me for a FREE plastic wallet card featuring the ‘5-RPs of Marketing!’ (‘RPs’ being Right Product, Right Place, Right Price, Right Promotion, Right People!) No one else has this practical marketing tool, so be sure to get yours at the Rishel seminar, and use it to fill more vacant rental homesites throughout your land-lease-lifestyle community!

George Allen, CPM®Emeritus, MHM®Master

IV.

Visit New Manufactured Home @ RV/MH
Hall of Fame in Elkhart, Indiana.

Visitors to the RV/MH Hall of Fame now have a new manufactured home exhibit to tour, outdoors and adjacent to the museum and library facility, thanks to the generosity of Nappanee, Indiana – based Fairmont Homes, according to Barry Cole, chairman of the board of the RV/MH Heritage Foundation.

What’s the RV/MH Hall of Fame? Well, the RV/MH Heritage Foundation was formed on 22 March 1972 by a group of trade and consumer magazine publishers attending an MHMA (‘Manufactured Housing Manufacturers Association’ predecessor to the Manufactured Housing Institute) meeting in Washington, DC. In early 2007, the RV/MH Heritage Foundation moved into its’ new facility at 21565 Executive Parkway, in Elkhart, IN. The 56,000 square foot building houses the RV/MH Hall of Fame, honoring hundreds of industry leaders past and present, a museum of vintage RVs & MHs from 1913 into the 1970s. For hours of operation, phone (800) 378-8694. And when phoning, inquire about becoming a Lifetime RV/MH Wall of Fame member of the heritage foundation!

V.

We Continue to Receive Responses to this Blog & Pithy Matters Contained Therein…

“George, I love your piece on Meeting Fatigue, and critique of the (lack of) balance of power in national MH (advocacy) trade groups. I think you are ‘spot on’ in your analysis, and as always, I admire your courage to ‘Speak the truth to those in power!’” CC

EDITORIAL RESPONSE: If you missed ‘Meeting Fatigue’, at this website, simply scroll back to blog # 271 to read it. AND know this: ‘Speaking the truth to those in power’ can have uncomfortable consequences. FOR EXAMPLE. Thirteen months ago, I walked into a meeting of one of the groups referenced here, and was verbally ambushed in public by its’ leader – and given NO opportunity to respond to charges he made, and that have been left unsubstantiated to this day! Nor has there been any apology for this cowardly breach of public propriety by the individual or host national advocacy body. POINT? Be careful and steadfast about what you say and or write about business matters. And be prepared to stand your ground when challenged or assaulted by those who should be’ listening & learning’, rather than ‘reacting & fighting’! GFA

&

“I agree with your comments about our national (advocacy) organization. I’m afraid it, and one of its’ divisions, have run their course, as far as representation of smaller and mid – size land-lease-lifestyle community owners is concerned! Let’s face the fact, it is only interested in larger LLLCommunity operators. With that said, let’s form a new organization that better supports the interests of thousands of smaller owners/operators in the U.S. Considering the buying power of such a group, I don’t think we’d have any trouble getting home manufacturers to send (floor) dues, for the new homes we buy, to such an organization.”

EDITORIAL COMMENT. This is the opinion and suggestion of the person who penned this response to the Meeting Fatigue blog posting. And frankly, it contains more than a kernel of truth, when one observes how few direct, dues – paying members there are after 17 years of existence, how very few (less than a dozen) attend periodic meetings, and how present leadership continues to be in the hands of a very few large property portfolio operators (Not owners). Personally; I’m not interested in forming a new organization for the 85% of 50,000+/- LLLCommunities in the U.S. But what I ‘am for’, is the launching of a NEW ERA, during January 2014, in how product and service needs of land-lease-lifestyle community owners/operators nationwide, are researched, prepared, paid for, and distributed! As was pointed out in the introductory paragraphs to this week’s blog posting, during December, be watching your USPS mail for information on this new business alliance, and read about it in the Allen Letter professional journal! In the meantime, ‘if you want to talk about it’, phone the Official MHIndustry HOTINE: (877) MFD-HSNG or 633-4764. GFA

***

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

Blog # 271 Copyright 2013 10 November 2013

George Allen Writes About Key MHBusiness Interests & Concerns – & More….

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

Purpose of this blog. To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: ‘Critical responses & helpful ideas Welcome for future blog coverage; gfa7156@aol.com; Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

***

In Cape May, NJ, last weekend dining on fresh seafood, then attending 50th high school reunion; so, no blog posting on Sunday. Sorry bout that.

***

I.

Meeting Fatigue

INHALE! Nearly two dozen manufactured housing industry – related national and regional meetings have finally ‘run their course’. EXHALE! Between the RV/MH Hall of Fame Banquet in early August, and two meetings occurring a couple weeks ago (LCS’ Rent Manager User Conference in FL., & ULI’s Manufactured Housing Communities Council in Chicago), we’ve endured ‘meeting hell’, while seeing the latest MHIndustry ‘new trend’ unfold….

Oh, the old standbys are still with us – as they should be. One of them, the RV/MH Heritage Foundation is the protector and perpetuator of ‘our legacies’ relative to manufactured housing and recreational vehicles. Were you among the 400+/- aficionados at this year’s Hall of Fame Induction Banquet? You should have been! More important though; are you a faithful financial supporter of the RV/MH Heritage Foundation? You should be! Phone (800) 378-3466 to donate & become a Wall of Fame lifetime member.

And one has to expect the Manufactured Housing Institute (‘MHI’) will always have its’ annual meeting in the Fall, along with its’ now 17 year old National Communities Council (‘NCC’) division – even if only a dozen members of the latter attend.

But here’s where the aforementioned ‘new trend’ surfaces in grand style, showcased by three gatherings, one regional and two national, sharing this ‘telling’ common denominator: Not one was planned or hosted by a state or national manufactured housing – related trade or advocacy body!

The 22nd annual International Networking Roundtable took place, this year, in the Chicago region, enjoying its’ second highest attendance ever, at 222 attendees – mostly land-lease-lifestyle community owners/operators, and their favorite realty mortgage originators, from throughout the U.S. Planner and host? GFA Management, Inc., dba PMN Publishing, and community-investor.com

Then came SECO2013. This is at least the third year in a row land-lease-lifestyle community owners/operators domiciled in Georgia, pulled together to put on a terrific display of product (i.e. More than a half dozen new HUD-Code manufactured homes of the Community Home Series or CSH Models), along with pithy seminars dealing with various aspects of self – finance of on – site home sale transactions, using private investor funds, all the while being compliant with the plethora of state and federal finance regulations! Why can’t our state and national MHAssociations do the same? For info on future SECO gatherings, contact Spencer Roane, MHM® via (678) 428-0212. He’s, by the way, our industry’s expert on use of lease-option (leaseoptionmhsales.com).

And, for that matter, if you want someone to bring a chattel finance compliant workshop to your ‘neck o the woods’, contact Rishel Consulting via (217) 971-3968. He and Donna will be hosting a day long seminar on 21 January, the day before the annual Louisville MHShow begins. It’ll focus on ‘selling manufactured homes’ effectively and in accords with today’s regulation – rich business environment! Know what? I plan to attend and learn more about this timely and pithy subject. See you there!

And this past week, London Computer Systems, of Ohio, held their Rent Manager User Conference on Marco Island in Florida. 400+/- ‘users’ from a variety of multifamily and commercial property type applications were in attendance – including a dozen portfolio owners/operators of land-lease-lifestyle communities!

Know what all three latter (post RV/MH Hall of Fame banquet) well – attended ‘industry meetings’ had in common, besides being planned and hosted by grassroots businessmen and women, product and service vendors? Not a single representative from any of the national advocacy bodies was present as an attendee, or seminar leader, or special guest at any of these (and other) ‘new trend events’.

Is it any wonder, or surprise, this ‘independent meeting trend’ is growing throughout the manufactured housing industry? Answer? No. Think about it.

During conversations this past week – and earlier, in downtown Chicago; among manufactured housing purists and land-lease-lifestyle community owners/operators, this very question was the focus of attention. And know the common strain of logic that emerged? Simply this:

National manufactured housing trade advocacy bodies continue to be ‘dominated by HUD-Code home manufacturers’ – a few large ones in one instance, many smaller ones in the other. And of late, the division formed, years ago, to represent land-lease-lifestyle community owners/operators, large and small, has also become ‘dominated by a few large property portfolio firms’, seemingly with little to no sensitivity to the needs of the far greater number of smaller property portfolios and LLLCommunities throughout the U.S.

Is there a resolution to these lopsided representation and power issues? Sure; maybe in time. But only ‘if & when’ MHI’s bylaws are rewritten to – among other things – allow absentee members (i.e. Those who can’t afford – or won’t ‘waste $’, to attend national advocacy association meetings held in extravagant, high – priced venues) to execute Proxy Votes, making their leadership preferences known! And, there must be more emphasis on recruiting new members, once this ‘voter playing field’ has been leveled, and smaller ‘players’ truly made Welcome and assurance their needs will be met.

How do YOU feel about this and other issues being discussed by your peers around the country? To respond, use the contact information listed at the beginning of this blog posting.

***

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

Blog # 270 Copyright 2013 3 November 2013

‘George Allen Writes About Key MHBusiness Interests & Concerns!’

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

Purpose of this blog. ‘To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: ‘Critical responses & helpful ideas Welcome for future blog coverage; gfa7156@aol.com; Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

I.

GUESS WHO?

“…owns and operates portfolio of resort communities and lifestyle oriented properties. It leases individual developed areas with access to utilities for placement of factory – built homes, cottages, cabins and recreational vehicles.”

This euphemism* – heavy summary describes a land-lease-lifestyle community (A.k.a. manufactured home community, and before that, ‘mobile home park’) portfolio firm, and is copied from Yahoo Finance. GFA

Two hints & a question. This is one of 500+/- land-lease-lifestyle community portfolio domiciled in North America; it’s been listed in the annual ALLEN REPORT for 24 years – under different names. Why avoid mentioning manufactured housing?

* Euphemism: ‘Polite and often affected expressions used in place of common terms which can be considered offensive.’ From Collection of Figurative Language & Figures of Speech, PMN Publishing, Franklin, IN., 2011, p.13.

II.

‘Two Key, ‘50,000 Land-lease-lifestyle communities’ – related Questions’

prompted by reading Ann M. Burkhart’s 16,478 word article titled:

‘Bringing Manufactured Housing into the Real Estate Finance System’

Copyrighted by Pepperdine University School of Law, as published in the Pepperdine Law Review during 2010, this ‘backgrounder’ was followed by the Uniform Law Commission’s adoption, on 19 July 2012, of the Uniform Manufactured Housing Act, recommending adoption of (state) statutes, enabling (manufactured) housing owners to title or re-title their homes as real property, “…if connected to electrical utilities and (when) a certificate of location is filed with the local deed office.” Quoted from Center for Economic Development’s 2012 Annual Report. And visit CFED online, for lender, homeowner and industry ‘briefs’ posted during year 2013.

Make no mistake about it, this proposal cum ‘would be’ statute is alive and well in the minds and plans of certain social activists, local tax assessors in search of more tax revenues, and certain bank(s) – none of which have examined the effects of such legislation on 50,000+/- land-lease-lifestyle community businesses nationwide!

Before we quote from said report, which makes many good points by the way, here’re at least ‘Two key, 50,000 land-lease-lifestyle communities – related questions’ to keep in mind as you read – and ponder – the effects of this proposed change, potentially affecting our business model, and your future as a LLLCommunity owner/operator:

1) Ms. Burkhart, why so little mention, let alone examination of, land-lease-lifestyle communities (A.k.a. manufactured home communities, & before that, ‘mobile home parks’) in this 38 page study, since this recommendation-for-change, if legislated, could/would profoundly affect this unique, income-producing investment realty asset class?!

2) And, just how do you see this proposed change (i.e. “Classifying all manufactured homes as real property from the time of sale to a consumer….” P.13) affecting the present day business model of owners/operators of 50,000+/- land-lease-lifestyle communities nationwide?

So, what’s in ‘Bringing Manufactured Housing into the Real Estate Finance System’, that’s prompted these two key questions?

Let’s begin with the LEXISNEXIS SUMMARY of the article, followed by its’ Conclusion. Then there’ll be quotations taken from three subsections labeled: ‘Today’s Manufactured Homes’, ‘Manufactured Housing Finance Model’, & ‘Increasing Credit Availability for Manufactured Housing’.

LEXISNEXIS SUMMARY. “…Misperceptions about manufactured homes are not limited to the homes but also exist about their residents. …Characterizing manufactured homes as real property would provide greater access to the secondary market, thereby increasing the flow of capital to lenders and lowering lending costs…The greatest potential for uncertainty exists in states that treat a manufactured home as personal property until it becomes a fixture or until the title has been converted to real property…Far fewer lenders make manufactured home chattel loans than make mortgage loans, especially since the manufactured housing market meltdown…In this situation, the legal protections afforded owners of manufactured homes should equal those afforded owners of site – built homes…Moreover, many state conversion statutes permit manufactured homes on leased land to be classified as real estate, which demonstrates the land ownership restriction is unnecessary.” P.1.

CONCLUSION. “Manufactured homes have changed dramatically since the introduction of their earliest counterparts in the 1920s. Unfortunately, the law has not kept pace. As a result, financing and other aspects of ownership are needlessly complex and uncertain, and access to affordable credit is limited, which has been a major obstacle to the industry’s recovery. Manufactured home owners are not accorded the same rights as the owners of site – built homes, though they often need greater protection. The failure to classify manufactured homes in the same manner as site – built homes has also caused the federal and state governments to overlook manufactured homes in the efforts to stabilize the home finance markets and to prevent similar crises in the future. Classifying all manufactured homes are real property from the time of sale to a consumer is a feasible and effective remedy for these problems.” P.13

Here we go…

Manufactured housing “…has the same characteristics as a site – built home and should have the same legal classification.” P.2. Perhaps NOT, if sited on a rental homesite within a land-lease-lifestyle community; as opposed to being built on a lot in a subdivision, or on a scattered building site -both conveyed fee simple.

“…manufactured home residents are less transient than residents of site – built housing. Whereas the average period of ownership for a site – built home is six years, sixty percent of manufactured home residents live in their home for more than ten years. Furthermore, seventy-eight percent of manufactured homes are owner-occupied, only sixty-eight percent of site – built home owners live in the home.” P.3. News to me, but reads well!

“Concerns about manufactured housing’s safety, appearance, and impact on neighboring property values are similarly misplaced.” & “Contrary to popular belief, manufactured home communities do NOT affect neighboring property values.” P.3. (Emphasis added. GFA) Again; news to me. Truth be told however, property valuation can go either direction; depreciation or appreciation, depending on 1) age and condition of homes sited therein, and 2) the overall care (e.g. curb appeal, rules enforcement, professional property management measures) in effect at the income – producing property.

“Manufactured home chattel loans should be included in the government relief programs not only because the homes are functionally equivalent to site-built homes…(but) because the manufactured home finance market and…rest of the manufactured housing industry has been struggling to recover from a meltdown that is virtually identical to the mortgage market meltdown.” P.4. It won’t happen; however, as long as (manufactured) homes, modular homes, ‘park model RVs’, etc., are sited on rental homesites in land-lease-lifestyle communities, increasing the risk of said residences being moved elsewhere.

“…the demand for new manufactured homes more than doubled from 1991 to 1998. Manufactured housing’s market share of new single-family homes sold during those years remained consistently above twenty-five percent. Initially, the increased sales were attributable to improved product design and construction standards, the rapidly increasing cost of site-built homes, and the expanding national economy.” P.4. NOTE. As most manufactured housing aficionados know, replacing the words ‘sold’ & ‘sales’, with ‘shipped & shipments’ respectively, in these sentences, tells more of the ‘real story’ – that ‘demand’ was/is largely artificial, as home manufacturers, chattel capital lenders and brokers, as well as some LLLCommunity owners/operators, colluded to ‘keep housing production lines moving’, often flooding local housing markets with unneeded and unsellable new homes! To underscore that sorry point, read the following half dozen quotes…

“…increased demand also was driven by the same bad lending practices that created the mortgage market bubble and caused it to burst. Risky behavior by manufacture home loan brokers…” p.4 NOTE. Insert ‘artificial’ between the first two words, ‘increased’ & ‘demand’.

Furthermore, “Manufactured housing dealers often act(ed) as loan brokers for their buyers. And customers “…preferred the convenience and speed of relying on the dealer to find a loan.” P.5. NOTE. Plenty of blame to be spread around…

‘…higher interest rates on manufactured home chattel loans, than on mortgage loans, were particularly attractive to them. In the resulting competition for borrowers, lenders began relaxing underwriting standards and loan terms. “Down payments decreased and the number of years over which the loan could be repaid increased. …lenders began financing homes for borrowers who clearly could not afford them.” P.5 NOTE. Nuff said, but…

“Hyper-aggressive sale and predatory lending practices became more common. Some dealers sold (HUD-Code) homes for as much as twice their fair market value.” P.5.

“…decreasing interest rates on mortgage loans made site-built homes more affordable. Despite the decreased demand, manufactured home production continued to increase.” P.5. NOTE. Recall the earlier observation about (forced) ‘shipments’ vs. ‘sales’

“In 2001, one-fifth of the homes that were sold were repossessed.” P.5.

All the while…

“…securitizations of manufactured home loans also greatly increased – from $184 million in 1987 to $15 billion in 1999.” P.5. NOTE. By year 2008 however, securitizations had dropped to $307 million! According to the ALLEN REPORT, land-lease-lifestyle community owners started picking up the slack, by ‘carrying’ contract sale paper on homes they sold on – site. Their paper value skyrocketed from a few million dollars in 1999 to more than $3.2 billion by 2009, and $5+ billion the following year! At the same time, new HUD-Code home shipments plummeted from a too brief renaissance ‘high’ in 1998 of 372,843 new homes, all the way down to what’s now been a five year nadir of 50,00+/- new homes shipped per year – a nadir that’ll likely continue until ‘readily accessible’ chattel capital returns to HUD-Code manufactured housing, and financial regulators back off!

Here it comes!

“Credit for manufactured home purchases would increase by characterizing all such homes as real property.” P.6. NOTE. Question: Even for those (manufactured) homes, on rental homesites, within one, more, or all 50,000+/- land-lease-lifestyle communities nationwide?

“Recognizing all manufactured homes as realty, from the moment they are sold to a consumer, would eliminate the obstacles that have prevented so many owners from obtaining the benefits of that classification. Universal treatment of manufactured housing as real property also would benefit lenders by creating national uniformity and by eliminating uncertainty.” P.7 NOTE. Perhaps so, but again, ‘What are the anticipated consequences for owners/operators of LLLCommunities nationwide?’ This is not addressed anywhere in this paper! ‘Why?’

Here’s an interesting and apt aside. At least one large commercial lender (bank) backing this conversion effort, has apparently not considered the likely chilling consequences of this action, on the land-lease-lifestyle communities they presently mortgage, nor their loan origination dollar volume in the future.

“…if the manufactured home is sited on leased land, the home will depreciate in value because home value appreciation normally is attributable to the land on which it sits.” P.7 NOTE. That’s not the whole story, and flies in the face of an earlier statement, that LLLCommunities ‘do not affect the value of nearby neighborhoods’. Which way is it? Frankly, there’re examples of ‘homes & LLLCommunities’ ‘appreciating& depreciating’ together in value, depending on ‘the land on which it sits’, AND the ‘condition of the home(s) per se’.

“Classifying manufactured housing as real property…will significantly change the methods for creating, perfecting, and enforcing a security interest in manufactured homes, and has important implications for property taxation, marital property rights, and homestead protections.” P.8. NOTE. Not much said in this report about the probable effects of said conversion affecting the type and amount of (real estate) taxes to now have to be paid by the homeowner. For example: “Manufactured home owners in some states will pay lower taxes if their home is real estate, but owners in other states will pay more.” P.11 versus “…the annual property tax rate for real estate is substantially higher than for personal property.” P.11. NOTE. Here’s a hidden agenda item: How, and by how much, the conversion of ALL manufactured homes to real estate, from their present personal property classification, will likely increase the tax base of local county coffers?

“The median monthly housing cost for manufactured home owners is $407. For tenants, it is $755.” P.10. NOTE. Really? Are we comparing ‘apples to apples here’? For example; are the same ‘housing cost’ factors built into both figures – or not? Easy to see $755/month as affordable conventional apartment rent somewhere – but inclusive or exclusive of utilities? And how ‘bout the $407? Is that inclusive of mortgage PITI (or is home ‘free & clear’), site rent, and utility bills for a month – or is water/sewer built into the site rent fee? Until those questions are answered, the dollar comparisons are misleading, if not meaningless.

“By classifying all manufactured homes as real estate, from the moment of purchase from a dealer, the uncertainties and costs of the current system will be substantially eliminated.” P.11. NOTE. And once again; what will be the tax consequences for the unsuspecting homebuyer; and, what will be the likely (nasty) consequences for the businessman or woman who owns the underlying investment realty – as in a land-lease-lifestyle community, a.k.a. manufactured home community, or ‘mobile home park’?

“Moreover, many state conversion statutes permit manufactu4rd homes on leased land to be classified as real estate, which demonstrates the land ownership restriction is unnecessary.” P.12. NOTE. Perhaps on scattered building sites, where someone is leasing a small parcel of real estate from a family member (e.g. as oft happens on a farm, among extended family); but what about when sited within a land-lease-lifestyle community? Industry experience with attempts, over the decades, to condominiumize (or, subdivide and sell homesites, within) this property type have met with mixed success at best. Major issue? How to effectively replace enforceable (by eviction) Rules & Regulations, often emplaced per state statute, with Covenants & Restrictions, no matter how tightly written, that are next to impossible to enforce (due to property rights issues) – beyond executing and recording a lien to be (maybe) resolved at some future date?

“…to treat all (manufactured) homes as real estate can be accomplished quite efficiently because the necessary legal and administrative apparatuses already are well established. Deeds are used for title transfers. In fact, at least two states already have statutory form deeds for manufactured homes.” P.12. NOTE. What two states? And are these statutory form deeds applicable to manufactured & modular, as well as ‘park model RV’ homes in land-lease-lifestyle communities?

“Lenders have adapted a long – standing finance tool, the multi – draw construction loan, to ensure the mortgage the buyer executes, at the time of purchase, has priority from that moment.” P.13.NOTE. And again; is this applicable to homes sited on rental homesites within land-lease-lifestyle communities; and if so, what are the probable consequences thereof?

Well, there it is, a digest of information published three years ago in ‘Bringing Manufactured Housing into the Real Estate Finance System”, now ‘making the rounds’ as recommended (state) legislation per the Uniform Law Commission. Has interest in the Uniform Manufactured Housing Act come to your state yet? Expect it to do so….

This is one of those rare times when being forewarned (‘Think of the possible consequences to you and your land-lease-lifestyle community business model!) is akin to being forearmed!

***
End Notes.

1. CFED: Center for Economic Development

***

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

Blog # 269 Copyright 2013 26 October 2013

‘George Allen Writes About Key MHBusiness Interests & Concerns!’

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

Purpose of this blog. ‘To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: ‘Critical responses & helpful ideas for future blog coverage, via email gfa7156@aol.com; Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

I.

What Keeps Me Going?

Email messages like this! “They are a bunch of bullies, and I hate it (when) people you trust can’t be trusted. I now know you and (Carolyn) well enough to say: ‘One thing NO ONE can take from you is your integrity; you have more than most people can dream about. You say things how they are, and you are one of the few people in this world I never have to worry about what you are saying behind my back, because it’s the same thing you are saying to my face’.” SF

“How did the (MHI) annual meeting go? It sounds like not – so – well, which disappoints me. They wouldn’t allow proxy votes? Is that legal? You’ll always have my vote!” Responses to blog posting # 267.

II.

Musings from Chairman Zell

During the final session of the first day of NCC’s Fall Leadership Forum, MHI chairman Nathan Smith, prompted by a question from the audience, encouraged his interviewee, chairman Sam Zell of real estate investment trust ELS, Inc., to comment briefly on several personal ‘Thou Shalt Not’ business cautions. Three of these are described in the November issue of the Allen Letter professional journal.*1

What most forum attendees did not realize is, during year 2004, a small booklet was published with this Sam Zell quote as its’ title: “A picture is worth a thousand words.” And inside the front cover of the 3 ¾”X5”, 24 page mini-book, is this credit line: ‘Quotations From The Chairman’.

Here’re a few of Chairman Zell’s gems of universal (business) wisdom, found in said booklet:

• ‘Unless you’re the lead dog, the scenery never changes.”

• ‘Trying to be right 100% of the time leads to paralysis.”

• ‘If you’re not moving forward, you’re falling behind.”

• ‘With a long-term asset such as real estate it’s a lot better to be early than late.’

• ‘Be a risk taker; however, define risk by your own terms.’

Understand; each of these maxims is accompanied by an oft humorous pen and ink drawing, to illustrate and underscore the truth being communicated.

Where to obtain a copy of this publishing rarity? Have no idea. Contacted the copyright holder, Equity Group Investments, LLC., but to no avail. Perhaps one day, my sole copy – presently part of our extensive corporate library on ‘manufactured housing’, will wind up in the RV/MH Heritage Foundation’s Hall of Fame, Museum & Library in Elkhart, IN. Then you’ll be able to read and enjoy it in full.*2

III.

RENT CREDIT PROGRAM

Details of the following Rent Credit Program, allegedly used by one of the 500+/- known portfolio owners/operators of land-lease-lifestyle communities, was recently and publicly described by an industry consultant, during a manufactured housing plant show in Texas.

The drill goes something like this. The new or resale (manufactured) home is leased on a month-to-month basis, with lessee receiving 50 percent of the amount paid for rental of the home (excluding separate homesite rent) as a credit toward the purchase of any home sited throughout the LLLCommunity.

For example. If site rent is $300/month, and the home is rented for $400/month, the resident would accumulate a credit of $200/month, over time, to be applied toward eventual purchase of the home being lived in, or any other home, in the LLLCommunity. So, if sales price of the desired home is $25,000, the lessee would accumulate enough credit to buy it in ten plus years; e.g. $200/month X 12 months X 10 years = $24,000.

A caution. Not recommending this Rent Credit Program. Generally, leases can not involve equity accumulation (i.e. credit toward purchase of a home), or they’re considered a credit transaction and in violation of the S.A.F.E. Act. So, you should check on the matter yourself, with legal counsel, before starting the same, or a similar, program, on – site in your LLLCommunity.

Any other creative self – finance programs out there we should know about and consider?

IV.

Unfortunate, But Obvious Disconnect During NCC’s Fall Leadership Forum

Community Series Homes, a.k.a. CSH Model manufactured homes have been a staple of the HUD – Code scene since year 2009, when ‘smaller homes with durability – enhancing features’ were requested by land-lease-lifestyle community owners/operators, and were subsequently designed and manufactured by housing factories. At the time, they supplanted the ‘Big Box = Big Bucks’ Developer Series Homes made popular during the 1990s, and at the turn of the 21st Century, by independent ‘street’ MHRetailers enamored with the land-and-home package business model, and for a time, competed head-to-head with stick builders.

What’s a CSH Model HUD – Code manufactured home? From the Official definition: “…contemporary renditions of (the) popular (manufactured) homes of the sixties and seventies, featuring updated, attractive , functional and durability – enhancing features desired by homebuyers and land-lease-lifestyle community owners.” What are some of these features? 3BR2B design; open floor plan with ‘WOW factor’ interior design; shutters on windows; vaulted ceiling; asphalt shingles; linoleum in kitchen, utility room and front door areas; 40 gallon hot water tank; 200 amp service panel; wood cabinetry; non – plastic sinks and tubs.

Who manufactures Community Series Homes? Most HUD-Code firms; specifically, Adventure Homes, Cavco Homes, Champion Homes, Clayton Homes, Colony Factory crafted Homes, Commodore Corporation; Fleetwood Homes, Harmony Homes; Liberty Homes; and Titan Homes, to name a few. For a FREE ‘contact’ list of these firms, along with the names of their Business Development Managers or BDMs, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And, for that matter, if you’re a HUD – Code home manufacturer and your name is not on this list, but should be – use the same contact information and request to be added!

The aforementioned DISCONNECT? Several manufactured housing and land-lease-lifestyle community corporate and elected industry leaders held forth regarding today’s smaller (now slowly getting larger – again) HUD-Code homes with durability – enhancing features, but NONE of them, NOT ONCE, referred to them by their CSH Model ‘handle’. Go figure.

As a somewhat related aside, regarding home features; there was a point during one panel presentation, when history seemed to be repeating itself. This occurred during Stephen Braun’s (Hometown America) description of how his firm’s ‘age – qualified residents’ have indeed ‘aged’, and now his firm is faced with ‘repopulating’, via implementation of service improvements and socialization efforts. Kudos to Hometown America for recognizing and dealing with the challenge! But know what? This is not the first time that matter has been identified. More than a decade ago, Randy Rowe – then still head of Hometown America, along with some of his LLLCommunity owner/operator peers, encountered a similar challenge. Guess what they learned from their experience? Go ahead and make adjustments to homes (e.g. raise driveway to entry door threshold level, install grab bars and panic alarms, and wheel chair accessible vanities), and offer new services (transportation, and meals at clubhouses), but expect to encounter stiff resistance from – guess who? ‘Age – qualified’ but younger, still healthy and mobile residents, who do NOT want to be visually reminded of what’s likely in store for them during the next several years!

***
End Notes.

1. To subscribe to the Allen Letter professional journal, telephone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. $134.95/year

2. To become a lifetime member of the RV/MH Heritage Foundation’s ‘Wall of Fame’ (as I & many others are), phone (574) 293-2344.

***

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

Blog # 268 Copyright 2013 19 October 2013

‘George Allen Writes About Key MHBusiness Interests & Concerns!’

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

Purpose of this blog. ‘To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: ‘Critical responses & helpful ideas for future blog coverage, via email GFA7156@aol.com or Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

I.

Did You Notice? This Blog Now Has a Name!

This popular weekly blog, with more than 300 postings to date, to 1,000+/- weekly readers, needed a working name, to be featured by Amazon.com. So we penned a word picture of what the posting has been doing for the past six plus years: ‘George Allen Writes About Key MHBusiness Interests & Concerns!’ in behalf of HUD – Code manufactured housing industry aficionados & land-lease-lifestyle community owners/operators, large and small, nationwide!

And it seems apropos, to inaugurate this formally – named presence, during the same time frame MHI’s National Communities Council hosted its’ first Fall Leadership Forum, in Chicago, Il; featuring #s, summary and commentary info regarding the event.

II.

NCC’s First Fall Leadership Forum;
a Precursor, in More Ways Than One?

A month ago, the 22nd International Networking Roundtable attracted 220+/- land-lease-lifestyle community owners/operators and their favorite realty mortgage lenders to the Chicago suburb of Bloomingdale.*1 Last week, Spencer Roane, MHM® and a half dozen or so Georgia – based LLLCommunity owners hosted at least 110 of their peers at the annual SECO 2013 Symposium in Forsyth – where no fewer than eight new HUD – Code Community Series Homes, or CSH Models were on display!*2 Also last week, the Manufactured Home Communities Association of Arizona, under the leadership of Susan Brenton & Neil Haney, rallied 100+ members, for two days of seminars and networking!*3 An easy to miss common denominator: Nary an MHI or NCC elected or salaried leader was present at any of these three events, attracting more than 400+ MHIndustry & LLLCommunity businessmen and women.

On the other hand, less than a month ago, on 30 September 2013, the National Communities Council (‘NCC’) division meeting in Carlsbad, CA., convened with only 14 land-lease-lifestyle community owners/operators in the room (out of 17 registered for MHI’s annual meeting – which drew, by the way, 116 in toto, from all segments of the MHIndustry d& LLLCommunity asset class).

Now, a scant two weeks following NCC’s meeting/elections in CA, the council has hosted its’ first Fall Leadership Forum in downtown Chicago, IL. Promoted as ‘Building a Vision for the Future’, the event attracted 149 registered attendees (with, I’m told, 31+/- sign – ups at the door). When the final session, a panel led by Randy Rowe, and titled, ‘The Future of the Land-Lease (Community) Business Model’ occurred mid – morning Friday, 50 individuals remained in attendance.

First ‘the numbers’; related solely to the aforementioned 149 registration list – which, by the way, contained NO helpful contact information for anyone. Go figure.

70+/- of the 149 individuals listed, were land-lease-lifestyle community owners/operators from 22 property portfolio firms (out of the 500+/- known nationwide), plus 19 small, or Mom & Pop – sized property owners. Taken together, 41 LLLCommunity sole proprietors, partnerships, corporations, and two REITs were represented. Furthermore; of the 22 portfolio ‘players’ present, half – or ten of them (i.e. along with their 31 executives) hailed from Chicago and the city’s surrounding suburbs! And of the same 22 large portfolio firms, nine ranked among the 20 largest LLLCommunity firms identified in the 24th annual ALLEN REPORT.*4 Who was missing from that august Top 20 ranking? One REIT, four California – domiciled firms, two Canadian portfolios, and one company each from FL, WA, & MI. These numbers, by the way, are ‘off by one’, due to liquidation of ARC.

Who rounded out the 149 registrants? 20+ lenders ‘of all stripes’ (i.e. chattel & real estate mortgage originators), 14 HUD – Code home manufacturers (e.g. multiple reps from Clayton Homes, Champion Homes, Cavco, Adventure, Skyline, & Fairmont), nine freelance consultants & seven real estate brokers (at least three of whom doubled as single LLLCommunity owners), seven insurance agents, more than a half dozen attorneys, five state MHAssociation executives, and several ‘your guess is as good as mine’ hangers on.

What was learned during this two day forum? That’ll be covered in more detail in an upcoming issue of the Allen Letter professional journal.*5 For now, however, suffice it to say:

• When listening to ‘What the Industry Can Learn from the Small Operators’, some walked away with a better ‘feel’ for compensation packages now in play around the country, based on the number of rental homesites in a land-lease-lifestyle community, variety of job responsibilities – including ‘new & resale home sales’, put on the shoulders of on – site property managers, and other considerations. Details to follow.

• During another panel, ‘Tackling the Obvious: More Action, Less Reaction’, at least one really good ‘refurbishing of manufactured homes’ tip was shared and had everyone’s pen moving at the same time. Details to follow.

• For many in the room, the most informative and thought – provoking hour of the entire forum, occurred when NCC chairman David Lentz, & HAS Capital’s J. Peter Scherer, co – presented ‘Home Financing in the Future’. They first provided statistical background information as to ‘Where we’ve been’, as an industry; then, ‘Were we’d like to go’, but don’t know – at this point – how to get there! They diligently sought to identify a New (chattel capital) Lending Model for manufactured housing and on – site housing sales within LLLCommunities – even creating a new paradigm if need be, that’d also facilitate ‘third party financing’ of new and resale homes, based on ‘risk’ and ‘alignment’. Bottom line? NO answers – but some enlightenment in two areas: FIRST, ‘What we must do individually and collectively (re: property portfolio $ policies and procedures), to entice chattel capital back to our industry; and SECOND, ‘Why we’d best step back, and realize that ‘this bird that quacks like a duck is likely a duck’, and call it – this New Lending Model, what it is and will continue to be: ‘The 15%’er Solution!’ How so? Well, there’s ‘more than a hint’, as to why, elsewhere in this blog posting. But for the complete, albeit blunt description of said New Lending Model, read the Allen Letter professional journal – the only MHIndustry trade publication that’ll share this hard truth with you!

Oh Yes, there was more. More than we’re going to cover here, or in the aforementioned newsletter. But for now, suffice it to say, Nathan Smith’s interview with Sam Zell was another highlight of this forum. In it, Zell commented briefly on the lease-option fad (my word choice, not his) popular with single family site – built housing these days; probable future of the GSEs; how ‘low interest rates are addictive, even suicidal when consistently lower than the inflation rate’; his views on RVs & MHs in the same mixed use land-lease-lifestyle community property; Washington’s ‘wealth redistribution track’; and finally, three of his ‘Thou Shalt Nots….’ Again; details to follow in the Allen Letter professional journal.

Finally; try this on for size. First; re read the fifth paragraph of this Part II to the blog posting (“70+/- of the 149…”). Done? OK; now ask yourself the following question, in light of this inaugural event being in downtown Chicago and 50 percent of property portfolios present, being from ‘the Chicago area’: Was this the second attempt, during the past few years, to suggest moving the seat of land-lease-lifestyle community power Westward from the nation’s capitol? Frankly; I wouldn’t have remembered or thought about that possibility, if it hadn’t been for three LLLCommunity owners suggesting it privately during one – on – one conversations. Think about it.

***
End Notes:

1. For an ‘invite’ to the 23rd annual International Networking Roundtable in early September 2014, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-5764.

2. For an ‘invite’ to the annual SECO 2014 Symposium, during the Fall 2014, phone (678) 428-0212

3. For an ‘invite’ to next Fall (2014) meeting(s) in Arizona, phone (480) 345-4202

4. 24th ALLEN REPORT available FREE, for a limited time, by phoning the above referenced (End Note @ 1) Official MHIndustry HOTLINE. The 25th anniversary ALLEN REPORT will likely be published as a lagniappe in the January 2014 issue of the Allen Letter professional journal. HINT. Suggest you subscribe to the newsletter ASAP – before the NEW ERA dawns in January, when a whole new Business Model for serving the research, resources, communication, networking, deal – making, and professional property management training/certification needs of LLLCommunity owners/operators nationwide, is implemented….

5. Ibid

III.

With NCC Outa the Way, a NEW ERA to Begin

The NCC Fall Leadership Forum inspired Three Exciting Projects to likely occur during year 2014. And all three relate to the increasingly talked about Dawning of a NEW ERA for land-lease-lifestyle communities:

• A Spring Retreat for owners/operators, patterned after two decades of land-lease-lifestyle community FOCUS Group gatherings. Likely in late March or early April, at an inexpensive, easy-to-access hotel in a relaxing, resort setting. Never been to a FOCUS Group before? Well, we solicit ‘your choice’ of hot topics, schedule five of them, then convene ‘the night before’, at a restaurant for a group networking meal, followed by a day of Open Group Discussions led by LLLCommunity – experienced moderators. Sometimes even held on – site if a LLLCommunity clubhouse is located nearby. Seriously interested in being on the ‘invite’ list? Let me know via the Official MHIndustry HOTLINE or via email: gfa7156@aol.com

• 23rd annual International Networking Roundtable, to be at a ‘killer time’ this year, and featuring a Surprise – but – obvious choice, actually maybe two, for keynote presenters! Looking closely at a lower Midwest location often requested by past INR devotees…

• Exciting Theme for a New LLLCommunity Book! To be comprised of writings submitted by successful land-lease-lifestyle community owners/operators, willing to share their personal and corporate Lessons Learned, as well as Secrets of Their (& Firm’s) Success, along with Pithy Insights realized with their business peers. Want to participate? Open to owners/operators of LLLCommunities ‘of all sizes’, nationwide, even our peers in Canada. Also; interested in underwriting the printing cost of the new book – like Marcus & Millichap did with Bruce Savage’s The First 20 Years! ? If so, let me know. Call for submissions will occur within a future issue of the Allen Letter professional journal.

That’s all for now. There is much more to come; but for now, ‘read between the lines’! GFA
***

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

Blog # 267 Copyright 2013 12 October 2013

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

Purpose of this blog. ‘To be the national advocacy voice, statistical research reporter, & communication resource for LLLCommunities, of all sizes, throughout North America!’

Ways to respond: ‘Critical responses & helpful ideas for future blog coverage, via email gfa7156@aol.com or Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.’

I.

COMING SOON: ‘From Park to Community & Beyond…’

II.

Updated & New ‘Signature Series Resource Documents’ in November issue of the Allen Letter professional journal!

III.

More #s & $s from MHI’s Annual Meeting, Carl$bad, CA.

***

I.

COMING SOON: ‘From Park to Community & Beyond…’

‘Contemporary Archetype of Truly Affordable Housing in the U.S.’ didn’t start out to be ‘the defining document of what’s good & not-so-good about HUD – Code manufactured housing (finance), and its’ realty component, land-lease-lifestyle communities’, but that’s what it’s becoming! How so? Not long after it was published as a feature in the Allen Letter professional journal, and shortly before being showcased in chapter # 6 of Bruce Savage’s new book, The First 20 Years!, a national realty finance publication picked it up, to eventually make a major statement regarding our industry’s chattel finance imbroglio, and its’ effect on land-lease-lifestyle communities nationwide.

During the negotiation stage of this international publication opportunity, the question kept coming up, ‘To be consistent, what term should we use to describe this realty asset class that’s, heretofore, been associated with HUD – Code manufactured housing?’ That’s when the decision was made to begin researching, and now soon publish, a second article in what’s become a three part series, this one tentatively titled, ‘From Park to Community & Beyond…’

Most of the work is done. The retrospective traces this unique realty asset class’ terminology from “…trailers and trailer camps or parks; in the 1960s & early 70s, mobile homes & mobile home parks; from the late 1970s through 1980s & 90s, manufactured housing or manufactured homes, & manufactured home communities.” To today’s houses & homes, in general; Community Series Homes or CSH models in particular; and, land-lease-lifestyle communities or simply, communities.

Did you notice? The hyphenation of land-lease-lifestyle communities? Now that’s a very recent adjustment, appearing for the first time right here, suggested by grammarians who were consulted for advice in the matter. You’ll learn more about the adjustment when this second of the three part series of articles is published in an upcoming issue of the Allen Letter professional journal.

The third article? Still in the design stage, though likely to do with a sorry bit of manufactured housing history, finally identified with a label, in Part II of this blog posting.

If you haven’t yet obtained a copy of The First 20 Years!, or need to subscribe to the Allen Letter professional journal, so as not to miss ‘Contemporary Archetype of Truly Affordable Housing in the U.S.’, and ‘From Park to Community & Beyond…’, simply phone the above – referenced Official MHIndustry HOTLINE: (877)MFD-HSNG or 633-4764. In the meantime, get used to ‘land-lease-lifestyle community’, or LLLCommunity in short. It’s an apt word sign for today, and a precursor of our business future.

II.

Updated & New ‘Signature Series Resource Documents’ in November issue of the Allen Letter professional journal!

First the old being updated, then the new. Most readers of this weekly blog posting know there’re – until today, a dozen Signature Series Resource Documents, or in short, SSRDs. These begin with publication of the annual (25th anniversary in 2014) ALLEN REPORT (A.k.a. ‘Who’s Who Among Land-lease-lifestyle Community Owners/operators Throughout North America!), in January; thru the popular Lenders’ Registry; and, eventually the industry historian’s ‘Paradigm Shifts of Mobile & Manufactured Housing….’, featured in the November issue of the Allen Letter professional journal. For the first time, all SSRDs are published ‘under one cover’ in chapter # 5 of Bruce Savage’s new book, The First 20 Years! Got your copy yet?

There’re two significant adjustments afoot. This year’s update of the industry’s paradigm shifts, designates years 1998 thru 2000 as being manufactured housing’s Enronesque Period. For readers who ‘lived & worked’ through that troublesome period in our industry’s history, you know ‘why’. If not, suggest you go back and reread ‘Upside Down in a Mobilehome Park’, an expose’ published in the July 2000 edition of the Allen Letter. (Phone 317/346-7156 for a FREE copy of the article if need be.) Then the label will make more sense; as enronesque (an adjective), is generally defined as relating to accounting methods meant to deceive, e.g. Business owners are cautioned to ’avoid Enron-esque Retirement Plans.’

The second significant adjustment – or in this case, addition, to the SSRD identifying paradigm shifts, has to do with announcing year 2014 as the start of a NEW ERA for land-lease-lifestyle community owners/operators, large and small, nationwide! This has to do not only with LLLCommunities becoming an increasingly cash business, given the difficulty securing chattel capital for qualified new/resale homeowners, and finding qualified prospective homebuyers; but other apt reasons as well. For the interesting details, read the October issue of the Allen Letter professional journal! And no further information here, until after NCC’s Fall Leadership Forum in downtown Chicago later this week.

The new, #13 SSRD? As yet unnamed; but an expansion on manufactured housing and LLLCommunity data and statistics contained in the highly popular Industry Briefing Sheet complement to information published online by the Manufactured Housing Institute. This new SSRD, tentatively titled ‘Past & Present Statistics, Trends & Consolidations throughout the HUD – Code Manufactured Housing Industry & Land-lease-lifestyle Community Real Estate Asset Class, during Two Distinct Periods in MHIndustry & LLLCommunity History: pre – HUD Code & post – HUD Code’. Some of this timely and salient statistical data is available nowhere else! Watch upcoming issues of the Allen Letter professional journal for the debut of this new and informative #13 SSRD.

III.

More #s & $s from MHI’s Annual Meeting, Carl$bad, CA.

$6.95 for a candy bar and $5.95 per minutes of online time, in the resort/spa’s business center. That’s how I’ll remember my two day visit at LaCosta, the high – priced site of MHI’s annual meeting a couple weeks ago.

Already told you, in last week’s blog posting, for the first time in four or five years, MHI finally attracted more than 100 (actually 116 per registration list) attendees! Of that number, there were at least 25 state manufactured housing executives present – the most highly represented segment of the MHIndustry – and for good reason. Why? Ask them.

And where land-lease-lifestyle community owners/operators are concerned, there were approximately nine ‘owners’ & eight ‘operators’ listed, but only seven of each category could be accounted for during the National Communities Council meeting on 30 September. Also interesting that eight ‘new’ NCC members were identified as having joined the division since the last (‘closed’) NCC meeting in February of this year, while 10 members resigned – plus at least one more since the aforementioned ‘rejected proxy’ election that day , for a net loss of three. Bottom line? After 17 years of representation and advocacy in behalf of an estimated 50,000 LLLCommunities nationwide, total NCC membership count continues to languish at ‘less than 100’ individuals and corporations.

Here’s a triplet of interesting $ facts. Given MHI’s 2014 preliminary operating budget of slightly more than $2,000,000., the manufacturers’ division is expected to contribute 60 percent of that amount in dues (floor fees) – DOWN from the 75+ percent, of decades past; and, the NCC is expected to contribute 17% of the total amount – UP from 0%, 17 years ago when there was no NCC division – and that’s from fewer than 100 direct, dues – paying members! Makes one wonder how the political complexion at MHI might/would change, if/when LLLCommunity owners/operators saw enough VALUE to join the institute en masse. For example, 400 NCC members dues (Versus the fewer than 100 members today!) would likely equal or exceed the 60 percent expected of manufacturers today. Hmm. Perhaps said VALUE would be recognized and appreciated if and when 1) timely & useful research (e.g. annual ALLEN REPORT), 2) helpful resources (e.g. 12, now 13 SSRDs!), 3) print & online communication (e.g. pithy newsletters every month, along with blog postings – like this one, every week), 4) superb peer networking & deal – making opportunities (e.g. annual Networking Roundtable & periodic FOCUS Groups), along with 5) a professional property management education & certification program (e.g. Manufactured Housing Manager® with nearly 1,000 MHMs® already in place), exists and thrives, supplementing national advocacy efforts already in place!

However, with ‘big property portfolio players’ now in control of our collective future, for yet another year, don’t look for ALL that to happen anytime soon; certainly not within the confines of existing national trade bodies. The end game? Whether this Measure of VALUE will eventually be adopted within said entities, or be forced to continue, in a ‘for profit’ or ‘not for profit’ manner, elsewhere?

Oh, by the way, there were far more insurance firms and executives present at this year’s MHI annual meeting than there were independent ‘street’ MHRetailers.

A Final Thought. If you’re planning to attend the NCC’s Fall Leadership Forum in downtown Chicago this week, make and take along a copy of Part III of this blog posting; and Be Prepared & Gutsy Enough, to enter the VALUE measure into group discussion at the appropriate time – if there is an appropriate time! Who knows, YOU alone might be the catalyst to alter the very nature and timing of the aforementioned ‘NEW ERA for land-lease-lifestyle community owners/operators, of all sizes, nationwide’, in the offing for year 2014. Are YOU up to the challenge? I’ll be there to support you! GFA

***

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

Blog # 266_ Copyright 2013 5 October 2013

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

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

Opportunities to respond. ‘Critiques, reactions, & suggestions for future blog coverage: gfa7156@aol.com or Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.’

Setting the Bully Stage for ‘The Next 20 Years?’*1

– OR –

Sculpting, figuratively speaking, a New Mt. Rushmore in Chicago

Ever get the feeling you’re ‘being played’ by someone, even a friend, perhaps a national advocacy body, for reasons other than those stated or presumably obvious? Well, that’s the sense I’ve been pondering since ending last week’s highly successful 22nd annual Networking Roundtable*2, and now looking ahead to this mysterious Fall Leadership Forum hosted by the Manufactured Housing Institute’s (‘MHI’) National Communities Council (‘NCC’) division.*3

To begin with, what national trade body needs ‘yet another meeting’, scarcely two weeks after its annual membership meeting? However, that strange scenario started making some sense, as I read Ken Rishel’s feature, ‘NCC Fall Leadership Forum & the Building of Mt. Rushmore’ in the September issue of his free online newsletter, Manufactured Housing Chattel Finance.*4 Are you a subscriber? You should be!

On The Surface; Rishel suggests industry leaders will “…discuss the future of land lease communities and, in no small part, the future of the manufactured housing industry itself.” Really? I’ve been in receipt of the same promotional mailings as Ken, and nothing seen or read to date, suggests such a grand and timely scheme. So, is he right, wrong, or have something else in mind?

Below The Surface; Ken drops hint after hint of turmoil, disunity, and cliquishness between and among various MHIndustry & LLLCommunity asset class leaders. He suggests the Fall Leadership Forum might be the place to unify, and bring peace and prosperity back to our collective business and advocacy dealings. I think not; for reasons cited in these paragraphs. Here’s the first one: ‘Have Danny Ghorbani and key members of the Manufactured Housing Association for Regulatory Reform (‘MHARR’) been formally invited to participate in this event? Without them, there is no unity!

The full and true story of this Mt. Rushmore – like sculpting saga begins eight months ago, when the NCC chairman convened a ‘closed meeting’ during MHI’s annual Legislative Conference, in Arlington, VA – attended only by his executive committee and a few friends. To date, there’s been NO public disclosure of what transpired during that secret meeting – except for some vague but unrealized plans for the future of the NCC. But it’s obvious; the upcoming Fall Leadership Forum is one expensive fruit of that shrouded session. The forum agenda? Phone MHI and ask; while you’re at it, inquire who the unnamed presenters are, besides Sam Zell?*5 Knowing that, would help some decide whether to attend or stay away. Again, per Ken Rishel’s article, this Leadership Forum might be – could be, akin to preparing the bully foundation for, figuratively speaking, sculpting a new Mt. Rushmore – this time in downtown Chicago.

So, is this grand future planning exercise, if indeed that’s what it is, for the manufactured housing industry and LLLCommunities, the sole or dual purpose of the Fall Leadership Forum? Methinks not! Quiet, behind the scenes maneuvering during the past eight months, including a plethora of hot – & – cold personal relationships, suggests something more elusive, even pervasive is afoot. Maybe even eventual usurping of ‘for profit’ LLLCommunity research reporting, resource distribution, print & online communication, peer networking & deal – making opportunities, as well as property management training & certification, by either Chicago area portfolio owners/operators of this unique, income – producing property type – or a national advocacy body. Let’s look further and deeper into these two suppositions, one at a time…

Political influence in the Illinois state capitol, Springfield and beyond? Well, it’s a – happening. First, the (needed) purging of staid, lackluster leadership from the Illinois Manufactured Housing Association. This was accomplished at that body’s annual meeting this Spring. Now political influence is being wielded in a new, refreshing and aggressive fashion, presumably for ‘the good of the manufactured housing industry & land lease lifestyle community asset class’. And what better way to solidify that emerging state of affairs, and sustain lobbying momentum, than to pressure Illinois businessmen and women to participate in this upcoming, extravagantly expensive Fall Leadership Forum? Furthermore; anyone want to bet whether raising money for state and national PAC funds will be part of the three day agenda?

Ensuring LLLCommunity owners/operators, of all sizes, from coast to coast, continue to receive the research reporting, resource distribution, print & online communication, peer networking & deal – making opportunities, as well as the property management training & certification services they’ve enjoyed for the past 30+ years, has become an issue of some importance these past few years. When MHI failed in its’ bid to acquire even a few of those unique products/services (i.e. rights to the annual Networking Roundtable, ALLEN REPORT, Lenders’ Registry, and exclusive 500+/- name portfolio contact data base.*6), all sorts of alternative succession vehicles have been proposed, but not effected to date. Scheduling this Fall Leadership Forum, less than a month after the aforementioned, highly successful 22nd Networking Roundtable, and in the very same host city, is – in this industry observer’s opinion – an obvious indicator the NCC is inclined to at least attempt to usurp this valuable educational, peer networking & deal – making opportunity. What’s next? Depends on the whim of the next elected chairman of that body and MHI.*7

Personally. What’s been most troubling about this quasi ‘sculpting process’, of the past eight months, has been the duplicity exhibited by friend and foe alike, among some within the manufactured housing industry, and a few – though certainly not the majority – of the largest size LLLCommunity portfolio players! But then, I suppose secret proceedings (e.g. Aforementioned February 2013 NCC meeting), behind closed door strategy sessions, and – worst of all, undisclosed personal, corporate, and trade body ‘double dealing agendas’ (e.g. Using elected office for personal or corporate gain, where access to selective resources – legal and otherwise, are concerned) trend in that duplicitous direction. If necessary, reread previous paragraphs.

Historically. This ‘sculpting process’ is NOT the way 19 (then) manufactured home community owner/operator pioneers Set the Stage on 31 August 1993, for national advocacy birthed and matured during the 20 years between 1993 & 2013! So, why do today’s leaders Set their Bully Stage, in the secret manner just described, selectively involving (i.e. by dint of high meeting participation costs) just the wealthiest and most successful businessmen and women from throughout the MHIndustry & LLLCommunity asset class? For a refreshing reminder of how leadership used to function, read Bruce Savage’s The first 20 Years!

Will what transpires at this Fall Leadership Forum sculpt the next 20 years of manufactured housing and its’ land lease lifestyle community component, between 2013 & 2033? OR, will the resulting grand scheme simply implode on itself – or, as a Mt. Rushmore – like sculpture, break apart, per missteps just described?

***

End Notes.

1. A play on the title of Bruce Savage’s new book, The First 20 Years!, published by PMN Publishing, Franklin, IN., 2013. Available via the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 for $24.95 postpaid

2. 22nd International Networking Roundtable drew more than 220 land lease lifestyle community owners/operators, & their preferred lenders, from 25 states.

3. NCC annual meeting @ 30 September in Carlsbad, CA., and NCC Leadership Forum in Chicago on 16 – 18 October 2013. For more information, phone (703) 558-0666 – and tell Jenny Hodge, ‘George Allen suggested I call….’

4. To sign up for a free subscription, phone (217) 971-3968 – and tell Ken, ‘George Allen suggested I call….’

5. Besides resource @ end note # 3, phone (703) 558-0678

6. Reportedly, $55, 000 paid over a five year period, and requiring a ‘non – compete agreement for life’ from GFA Management, Inc., dba PMN Publishing & George Allen.

7. This blog manuscript was prepared prior to MHI’s annual meeting in Carlsbad, CA., @ 9/30 & 10/1/2013. During that event, attended by 116 MHI members – according to the distributed attendee list, it was formally announced the next annual meeting, in 2014, would occur during the same time frame as the 23rd annual International Networking Roundtable….

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

Blog # 265 Copyright 2013 29 September 2013

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

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

Opportunities to respond. ‘Critiques, reactions, & suggestions for future blog coverage: gfa7156@aol.com or Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.’

Four Announcements & Several Pithy Thoughts…

I.

25th Anniversary ALLEN REPORT questionnaire deadline is 30 September
500 land lease lifestyle community (a.k.a. manufactured home community) portfolio owners/operators have been surveyed! FAX completed questionnaire to (317) 346-7158. The 25th AR debuts 1/1/2014 in the Allen Letter professional journal. Subscribe via the MHIndustry HOTLINE above.

II.

‘First public discussion to plan a Private Equity Fund, geared to support LLLCommunity owners purchasing new and resale manufactured homes, was held 19 September, at the Networking Roundtable in Bloomingdale, IL. More than 50 participated & 20 completed a survey gauging their interest.’ Contact: mnainvestments@comcast.net and garykenner@msn.com

III.

Susan McCarty & George Allen announce Community-Investor’s ‘not so quiet role anymore’, as Buyer Consultant Representative, for qualified and motivated investors, intent on acquiring one or more land lease lifestyle communities (a.k.a. LLLCommunities). Phone (317) 889-6465 &/or smc4464@sbcglobal.net This, a special, quiet, personal service for 20 years!

IV.

‘Champion Home Builders opens second plant in Lake City, FL., to Meet Growing Demand’ for HUD – Code homes! The Redman brand “…Riverview series (of home designs)… will target homebuyers seeking cost – effective housing options in manufactured home communities.” See these and other Community Series Home models, on display, at the upcoming SECO event, 8-10 October. Contact spencer@roane.com for details. This 100% LLLCommunity owner planned & hosted regional show has become the ‘must attend’ manufactured housing venue of Fall 2013!

V.

‘NEW ERA for land lease lifestyle communities (to be) characterized by national political & regulatory advocacy, statistical research reporting, timely print & online communication, monthly distribution of 12 helpful resources, superb peer networking & realty deal – making opportunities, as well as professional property management training & certification, for communities of all sizes, nationwide!’ Read of progress here, following MHI’s National Communities Council meetings on 9/30 & 10/16 – 18/2013.

VI.

From MHARR’s Washington Update, 23 September. “Vanderbilt – GNMA Sole Source Contract to Service FHA Title I Manufactured Housing Loans Raises Questions & Concerns”…

”…GNMA was willing to take ‘a second look’ at the ’10-10’ criteria and potentially revise downward, based on more recent loan performance information; and had specifically requested such information from industry finance companies and their Washington, D.C. representation in 2010, but received no response. While it’s positive the MHIndustry has a qualified lender (Vanderbilt) under the existing rules, the disproportionate influence of it, and other lender(s?) shaping the industry’s consumer finance policies in Washington, D.C., should be a concern for the entire industry.” (Lightly edited. GFA) There’s much more to this story. Phone (202) 783-4087.

VII.

Did you know? ‘Expensive national meeting venues ensure the most financially successful businessmen and women, and high – salaried executives, retain continued primary control regarding which trade advocacy matters are addressed, and how and by whom.’ That truism played out recently, when a grassroots member of one national advocacy body recommended New Business items for a national meeting agenda, and was told they had to be pre – approved by the division’s chairman. Hmm. Makes one wonder whether a bevy of proxy votes will be accepted or rejected next time there’s a national election of officers? Guess we’ll soon see….

***

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

Blog # 264 Copyright 2013 22 September 2013

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

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

Opportunities to respond. ‘Critiques, reactions, & suggestions for future blog coverage: gfa7156@aol.com or Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.’

I.

Roundtable Begins New Manufactured Housing Tradition!

II.

Fall Meeting Schedule Mucked Up All the More…

III.

A Contrarian View of NEW ERA Dawning for LLLCommunities?

IV.

25TH ALLEN REPORT will be distributed 1 January 2014, as a lagniappe in that month’s issue of the Allen Letter professional journal, if YOU return your completed land lease lifestyle community questionnaire by 30 September, via (317) 346-7158

***

I.

Roundtable Begins New Manufactured Housing Tradition!

And that’s not all it did – not by a long shot. If you’re reading this, and are an owner/operator of land lease lifestyle communities, you missed ‘the big one’! How so? Read about the 22nd Networking Roundtable in Bruce Savage’s upcoming lagniappe feature, enclosed with the October issue of the Allen Letter professional journal. Not a subscriber? Phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to do so – today! By the way, Bruce’s story will contain the names & contact information for all 20+/- presenters at this year’s event, making the article a ‘keeper’, for future reference.

‘Celebrating 20 Years of Camaraderie!’ among LLLCommunity owners/operators nationwide, set one heckuva positive, friendly, and productive tone for this year’s 22nd annual Networking Roundtable. That tone was enhanced by YES! Communities’ founder and chairman Gary McDaniel; accompanied by distribution of Bruce Savage’s new book, The First 20 Years! to everyone present. And the icing on the 2 ½ day legacy cake was sweetened by the presence of the chairman and executive VP of the RV/MH Heritage Foundation’s Hall of Fame, Museum & Library in Elkhart, IN. Indeed, ‘History Was All Over the Place!’ at this year’s venue….

Traditions. Given 22 years of history behind it, it’s not surprising to learn there’re at least four such commemorations are in place every time LLLCommunity owners/operators from throughout the U.S. come together for their annual Networking Roundtable. Two of them have been in place since the event was postponed in 2001 due to the ‘911’ national tragedy. To this day, every Roundtable event begins with the audience standing and reciting the Pledge of Allegiance to the American flag! And Friday morning, at 7AM one to two dozen Roundtable participants gather for an informal prayer meeting for our nation and its’ leaders.

The other two traditions? One’s unusual and one isn’t. During the first session of every Roundtable, everyone – usually around 200 individuals, stands and introduces themselves to the entire group. And that’s how the Networking bets jump – started! Then, throughout the 2 ½ day event, someone representing the Manufactured Housing Institute or MHI, usually Rick Rand, ACM, from Great Value Homes in WI., collects thousands of dollars for the institute’s PAC Fund. Maybe not a ‘tradition’ in some folk’s eyes, but surely is where LLLCommunity owners/operators are concerned.

This year’s New Tradition? ‘A Toast to the Community Owner!’ was composed, and first shared publicly, on 23 August 2010, in honor of the late Bud Zeman, a Chicago multi -community owner. At that time 24 of his peers came together for dinner at the famous Rosewood Restaurant in Rosemont, IL., to socialize and honor Bud’s memory. Since then, the poetic toast has been slightly revised and embellished. It goes like this:

Until every homesite is filled, and every bill paid.
With mortgage refinancing approved and dollars on the way.
We’ll ply this trailer trade, selling & financing affordable homes, factory made,
Knowing lesser men truly fear this business we embrace with our peers.
‘So, to community owners everywhere, I offer this toast to our worthy trade’:
“May hitches hold, site rent flow, and all our homes be sold!”

Hopefully, the public offering of ‘A Toast to the Community Owner!’ will become usual fare, a tradition, at every venue where land lease lifestyle community owners/operators gather.

II.

Fall Meeting Schedule Mucked Up All the More….

Three meetings have come and gone, one has been postponed. Yet there’s still at least 14 national, regional, and some special statewide ones to occur before 8 November 2013. Whew! Why do we do this to ourselves?

29 September – 1 October @ MHI’s annual meeting in Carlsbad, CA. (703) 558-0678. If you’re a direct, dues – paying member of MHI, make it a point to attend yet another high – priced venue.

30 September, 1:45 – 3:45PM @ MHI’s National Communities Council meeting, also in Carlsbad, CA. (703) 558-0666. As we’ve hinted before, ‘a NEW ERA for land lease lifestyle communities’ might begin at this ‘first full membership meeting of the NCC in a year’! If you missed reading the NEW ERA Mission Statement in last week’s blog posting at this web site, go back and review it before attending the NCC meeting.

8 – 10 October @ 3rd annual SECO Super Symposium in Forsyth, GA. (865) 385-9675. This is ONE MEETING THIS FALL I’ll sorely miss – that I HOPE YOU ATTEND! Why? It’s been planned, and will be hosted, 100% by LLLCommunity owners/operators – and no one else. It’s replete with timely seminars on cutting edge topics (e.g. Where & how to find chattel $ capital for home sales on – site, and much more), PLUS there’ll be at least eight new HUD – Code homes on display! What other manufactured housing trade show this Fall can boast such as program? NO ONE! Oh, and it’s, by far, the most cost effective (i.e. economical) regional/national venue this Fall!

9 October in Indianapolis, IN., IMHA/RVIC’s annual (luncheon) meeting. Not a regional event, but one that generally manages to attract a fair share of national talent relative to the RV/MH sister industries. (317) 247-6258.

10 – 11 October. MHC of Arizona meeting and seminars in Tucson, AZ. (470) 345-4202. Susan Brenton has planned this venue to be ‘land lease lifestyle community – heavy’, with emphasis on the ‘5 – RPs of Marketing’, relative to new and resale home sales on – site, and the leasing of rental homesites via: RIGHT Product, Place, Price, Promotion, People!

15 – 17 October @ WMA’s annual convention & expo in Reno, NV. (916) 448-7002, and talk to Sheila Dey. Does this state association ever bring anyone in from outside California to interact with their members?

15 – 19 October @ Institute of Real Estate Management’s Leadership Conference in Scottsdale, AZ. (312) 329-6000. Frankly, this event should see several dozen LLLCommunity owners/operators in attendance each year, but there’s rarely more than a handful – that’s how far afield, as a realty asset class, we are from embracing professional property management. How many Certified Property Managers® do you have on your regional and executive level property management staff?

16 – 18 October @ MHI’s National Communities Council division’s Leadership Forum in downtown Chicago, IL. (703) 558-0666. Sam Zell is the publicized draw for this high – priced meeting. Will be interesting to see what transpires at this ‘second NCC meeting in little more than two weeks time’, and where none of the presenters’ names and credentials have been made public to date. Wonder why?

17 & 18 October @ Legacy Homes’ first of two sequential plant shows in Fort Worth, TX. Mark Ledet via (817) 632-3351. Why is this cited as a national or regional event? To highlight the fact this HUD – Code home manufacturer, unlike its’ competitors, is routinely reaching out to market new homes to land lease lifestyle community owners/operators. They were well – represented at the Networking Roundtable a month earlier, as well.

20 & 21 October @ Legacy Homes’ second sequential plant show in Fort Worth, TX. Mark Ledet via (817) 632-3351. Guess if you missed the first one – by being in downtown Chicago at the NCC’s Leadership Forum, you can catch this one. And know there’re celebrity guests at both events.

23 & 24 New York Housing Association’s annual meeting at Turning Stone Resort in New York. (518) 867-3242. Talk to Nancy Geer. Not one of Nancy’s usual Super Symposium events, this time around; maybe next year.

29 October @ Michigan MHAssociation’s annual meeting, featuring that entity’s possible entry into the world of for – profit financing of manufactured housing, recreational vehicles, self – storage facilities, and more. If a Michigan businessman or woman, phone Tim DeWitt for info: (517) 349-3300X18

5 – 7 November @ London Computer’s annual Rent Manager® Conference on Marco Island, FL. Primarily for Rent Manager® users. Contact regional sales rep for details and an ‘invite’, if qualified. Here too, I’ll be covering the ‘5 – RPs of Marketing’ new and resale manufactured homes on – site in LLLCommunities, and leasing of vacant rental homesites.

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

So, how much of this mucked – up Fall schedule of mostly MH – related meetings will you be attending? I’m planning to be present of six of them. See you there! GFA

III.

A Contrarian View of NEW ERA Dawning for LLLCommunities?

Last week’s ‘Status Quo Slow or Game Changer Quick’ lead posting touched more than one nerve among the blog’s readership. In fact, one might opine, the ‘status quo slow’ folk remain in the driver’s seat.

“The change you promote (i.e. Dawning of a NEW ERA for land lease lifestyle communities), from my perspective is this: ‘LLLCommunity owners to collectively band together? Not Likely! Management companies comprised of LLLCommunity owners to come together? Not Likely! REITs to join together with all other LLLCommunity owners? Not at all likely! Why? Too many are selfish distribution – minded folks living in the past, clinging to old business models, seeking guidance from HUD – Code home manufacturers and MHRetailers – neither of which are ‘solutions ‘for LLLCommunity owners. Heck, they’ve probably never seen a P&L for a LLLCommunity. The LLLCommunity ‘big boys’ (i.e. large property portfolio folk) are consolidating. Why is that? Well, the writing – for ending chattel $ – is on the wall! The future is rentals! How so? Close the GSEs first, then eliminate chattel $, continue to promote elimination of the mortgage interest income tax deduction or cap it, and do away with ‘motor vehicle titling’ for homes going into LLLCommunities. A lead indicator? Hedge Funds now own tens of thousands – or more, rental homes across the country. Hey, just follow the money!” (Lightly edited. GFA)

Too simplistic a view to be universally right? Perhaps. Perhaps not. As we participate in various state, regional, and national MHIndustry & LLLCommunity – related venues this Fall, let’s Make it a Point to Observe, from afar & up close, how often or rarely, various LLLCommunity segments, large and small, identified in the previous paragraph, ‘play well together’ or Not! I’m certainly hearing more ‘consolidation disparity talk’ than ever before – even as We ‘Celebrated 20 Years of Camaraderie!’, at the recent 22nd annual International Networking Roundtable. Perhaps an inclination toward ‘Game Changer Quick’, but don’t get too comfortable with that thought.

For when a well known industry leader tells me, in effect, ‘expensive national meeting venues ensure the most financially successful businessmen and women retain continued primary control regarding which trade advocacy matters are addressed and how’; well, that’s clearly ‘Status Quo Slow’, a long long way from ‘Game Changer Quick’, dontcha think? So, in the weeks and months ahead, to the end of year 2013, Pay Close Attention! ***

George Allen, CPM & MHM, Box # 47024, Indianapolis, IN> 46247