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

Blog # 253 Copyright 2013 14 July 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’

I.

More Manufactured Housing Shipment Statistics

II.

Picking & Choosing Among the Dozen Meetings This Fall

***

I.

More Manufactured Housing Shipment Statistics

Were you as surprised as I was, to learn last week – from the article preview of ‘Contemporary Archetype of Truly Affordable Housing in the United States!’, that 68 percent of all 2012 manufactured housing purchases were retail priced at less than $40,000.00 apiece? *1 We should be asking ourselves ‘Why the drop in price?’ and then take steps to ‘sell even more new houses to prospective homebuyers’! But are we doing so? Not that I hear. There’s still a penchant afoot, throughout the HUD – Code manufactured housing industry, for a revival of the ‘Big Box = Big Bucks!’ days of yore.

And how ‘bout the fact that, for two years in a row, 2011 & 2012, the volume of new singlesection and multisection homes reached a near equilibrium – at 25,289 for the former and 26,317 for the latter, combining for a total of (a still nadir) 51,606 new HUD – Code manufactured homes shipped during 2011. *2 To me, this product mix factoid simply confirms ‘the return to affordability’ hinted at in the first paragraph. Lest we forget, there’s an estimated 250,000 vacant rental homesites among the 50,000+/- land lease lifestyle communities throughout the U.S. Let’s fill those sites with more and more Community Series Homes or CSH Models, with their durability – enhancing features!

Well, here’s an equally interesting ‘third (statistical) piece’ to the aforementioned unfolding of this affordable housing puzzle. The Manufactured Housing Association for Regulatory Reform, or MHARR, in a Press Release dated 3 July 2013, listed the ‘top ten shipment states, from the beginning of the industry production rebound (Now there’s a bit of an overstatement) from August 2011, through May 2013…’ as follows:

Texas 19,143 new HUD – Code homes shipped
Louisiana 7,788 homes
Florida 4,861 homes
Alabama 4,411 homes
North Carolina 4,357 homes
Kentucky 3,887 homes
Mississippi 3,812 homes
Oklahoma 3,185 homes
North Dakota 3,165 homes
Tennessee 3,117 homes

OK, what common denominator jumps off the page at you, when looking through that list, besides the fact that Texas shipments are more than double the next state in line, and in fact eclipse the total shipments of Louisiana, Florida, and Alabama combined! The next most significant ‘leading indicator’ is that these are mostly Southern states, with the exception of ‘oil fracking state’ North Dakota. *3 And so, what does this third hint say to you? Here’s what it means to me….

Affordable housing is on the rebound despite what many HUD – Code home manufacturers would like the rest of us to believe – based on the type and size homes they routinely continue to display at regional manufactured housing show. Yep. We can clearly see how nearly as many singlesection homes (i.e. smaller and less expensive) are being shipped today as multisection ones (i.e. reminiscent of the Big Box = Big Bucks! Days, circa 1998), that our new home Price Points are lower than they were 15 years ago, and that most HUD – Code manufactured housing shipments are being effected in the South, where labor is generally less expensive.

But Stop! Right here, in the midst of documenting the HUD – Code manufactured housing industry’s return to ‘affordability’ roots, we hear ‘more than rumors’ of 10 percent wholesale price increases, among some manufacturers, for new manufactured homes! And this at a time when inflation is less than half that percentage increase. Why the increase? Given the accuracy of said 10 percent home price increase, is it that, as an industry, we’ve grown accustomed (To pen ‘comfortable’ here would be a misleading overstatement) to operating at the 50,000+/- homes annual shipment level – for the fifth year in a row; and so, opt for a little ‘profit taking’ now, rather than grow shipment levels back to a general level of profitability and prosperity?

Know what? ‘Right here’ is where this industry needs ‘more than one good investigative journalist’! How so? Until this happens – which, frankly it won’t – during these dire economic times for the MHIndustry, these questions will go unanswered:

• Why does the MHIndustry eschew national brand promotion in lieu of stealth deal – making at the local housing market level?

• Why do HUD – Code housing manufacturers continue to perplex their independent (street) MHRetailer & land lease lifestyle community customers, by routinely ‘mixing & remixing’ building product quality, features, and pricing?

• When will someone finally and definitively ‘make the case’ for HUD – Code manufactured housing, and its’ sister business model, the land lease lifestyle community, as being this nation’s perennial affordable housing type and lifestyle?

Frankly, there’s nothing really all that new in the preceding paragraphs. It’s all part of the marketing and production cycle this industry has experienced, time and again, since the late 1940s. It’s just that right now – and for the past four plus years, we’ve been functioning at historic low home shipment levels, for a variety of reasons, and appear to have lost our will and ability to climb out of this collective malaise, to regain at least a 25 percent national market share of housing starts!

End Notes.

1. Foremost Insurance Group’s 2012 Mobile Home Market Facts report. Foremost report available FREE, by contacting Joe Kaffenberger via (616) 956-2514. Article will be lead feature in the August 2013 edition of the Allen Letter professional journal, available by phoning the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

2. ‘White Paper: Issues & Opportunities Facing the Illinois Manufactured Housing Industry’, by Dr. Theodore C. Alex, under contract to the IMHA, Springfield, IL.

3. To request to be put on MHARR’s Press Release distribution list, contact Mark Weiss via (202) 783-4087.

II.

Picking & Choosing Among the Dozen Meetings This Fall

And the list just keeps getting longer! Realizing few of us can afford the time and money to attend all the manufactured housing and LLLCommunity – focused meetings scheduled for this Fall, thought I’d share insights as to what’s going to be happening among some of the more important (Shouldn’t miss!) venues…

5 August. RV/MH Heritage Foundation’s annual Hall of Fame Induction Banquet in Elkhart, IN. This is the only RV/MH annual event that equates with the Academy Awards Ceremony. There’ll be hundreds of RV and MH executives, pioneers, celebrities, and ten Hall of Fame inductees present that evening, to hear Richard Jennison, president of MHI, give the keynote address. To register, phone (574) 293-2344. I certainly plan to attend. *** Want to do breakfast together next morning? If so, call me beforehand at (317) 346-7156.

18 – 20 September. 22nd annual International Networking Roundtable in Bloomingdale, IL. This year’s theme: ‘Celebrating 20 Years of Camaraderie!’ will be highlighted by honoring 13 of 19 LLLCommunity owners, still active in the MHBusiness, who started our national Advocacy effort on 8/31/1993; the release of a new book: ‘The First 20 Years!’ by Bruce Savage; and implementation of a new industry tradition: Offering of the Formal Toast to LLLCommunity Owners, in the form of a poem honoring the memory of the late Bud Zeman, a Chicago – based portfolio owner/operator. For agenda & to register, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And, by the way, new sets of plastic wallet cards, describing three applications of the ‘5 – RPs of Marketing & Selling New Manufactured Homes & Leasing Rental Homesites, will be given to all registrants! *** Carolyn & I look forward to seeing many of you again this year!

29 September – 1 October. Manufactured Housing Institute’s annual meeting, in San Diego, CA. This meeting might mark the beginning of a New Era for land lease lifestyle communities of all sizes. To register, phone (703) 558-0666. *** Carolyn and I plan to attend. Anyone up for a networking party by the pool? Call (317) 346-7156.

8 – 10 October. Third annual SECO Symposium, in Forsyth, GA. Here there’ll be new homes on display, with an emphasis on creative financing for new home sales transactions. Know what? The LLLCommunity owners who’re planning and hosting this event have recently made major headway in securing alternative financing for new and resale home transaction on – site. If you’re selling and self – financing home sales transactions on – site, you cannot afford to miss this stellar event. For more information, contact Spencer Roane, MHM® via (678) 428-0212. *** At present I have a schedule conflict, but am trying to be present to hear, learn and write about their success!

10 & 11 October. MHCommunities of Arizona is planning two days of intensive HOW TO seminars for its’ members. I’ll be a keynote speaker, delivering presentations on ‘State of the MHIndustry & LLLCommunity Asset Class’, as well as a variation of the ‘5 – RPs of Marketing’ talk featured at the aforementioned 22nd Networking Roundtable. Hint. The handout material here will be the best of any distributed during all of 2013! To register, phone Susan Brenton via (480) 345-4202. *** As AZ owners/operators know, I almost always host a private networking dinner while I’m in town. While nothing is planned just yet, if YOU are interested in doing so, let me know via (317) 346-7156.

15 – 17 October. WMA’s annual Convention & Expo, in Reno, NV. I can’t make this one, but wish I could. If you’re interested, phone Sheila Dey @ (916) 448-7002, and tell her ‘George told me to call!’

16 – 18 October. National Communities Council Leadership Forum, in downtown Chicago, IL. As one of the NCC’s founding board members, and present day board member, *** I certainly plan to attend. To register, phone Jenny Hodge via (703) 558-0666

5 & 6 November. London Computer’s annual Rent Manager® conference, on Marco Island, FL. While a ‘closed’ meeting, for the firm’s existing clients, there’ll be a couple hundred customers present. *** The focus of my presentation, this year, will be on Housing Price Point Methodology. For further information, contact your local Rent Manager representative.

5 – 8 November. Urban Land Institute’s Fall Meeting, in Chicago, IL. Green Courte Partners’ founder Randy Rowe is co – chairman of this year’s event. There’ll also likely be a Manufactured Housing Communities Council meeting at this Fall event. *** If I can get Press Credentials, I might attend the ULI & MHCC meetings.

And now what? These aren’t all the meetings scheduled between now and year end, just the ones I have generally complete details for at this time. If you’re planning a meeting, and would like to have it included in a future update at this blog posting, or in the Allen Letter professional journal, let me know by phoning the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

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

Blog # 252 Copyright 2013 7 July 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’

I.

Surprising but Confirming Statistics
from Two Manufactured Housing Reports

II.

‘Contemporary Archetype of Truly Affordable
Housing in the United States!’

III.

A New Book: ‘The First 20 Years;
‘Forging Manufactured Home Community Advocacy & Networking’

IV.

From Blog Floggers (readers)….

***

I.

Surprising but Confirming Statistics
From Two Manufactured Housing Reports

Almost everyone is somewhat familiar with Pareto’s Law (‘that income distribution remains constant, whatever efforts are made to change it’*1), e.g. ‘80% of a country’s wealth is held by 20% of its’ population’. Well, Pareto’s Law, a.k.a. the ‘80/20 Rule’ has long had a place in manufactured housing industry shipment history, but not the manner Vilfredo Pareto articulated it. Goes like this: In the early days (i.e. Heyday of 1970 – 1980) of ‘mobile home’ production, in round numbers, 80+/-% of total annual new home shipments were ‘singlewides’, & 20+/-% ‘doublewides’, by the time of our too brief renascence, between 1995 – 2005, when those percentages reversed, with 20+/-% being (now) ‘single section’ manufactured homes, and 80+/-% being (now) ‘multisection’ homes. Surely you remember the ‘Go Go’ Big Box = Big Bucks! Days, when land – and – home packages, sold and contracted by independent (street) MHRetailers and ‘company stores’, competing for housing market share with production (site) builders throughout the U.S.?

For a variety of reasons, that housing marketing focus didn’t work well for long, and when the HUD – Code manufactured housing industry decisively ‘lost’ its’ ready access to chattel (personal property) capital, early this century, the ‘shipment pendulum’ has been swinging away from multisection homes back toward singlesection homes. An indeterminable part of that swing can be credited to the appearance, in 2008 and thereafter, of specially – designed Community Series Homes or CSH Models, produced by many, but certainly not all, HUD – Code home manufacturers, for siting in mostly portfolio – owned land lease lifestyle communities (a.k.a. manufactured home communities) nationwide.

Now that’s another fascinating tale; but one for another time, when talking
about the return of rental units, the meteoric rise in property owner self – financing (i.e. ‘captive finance’) of home sales transactions on – site, and the just as rapidly occurring negative consequences of onerous state and federal financial regulation of the manufactured housing industry and real estate asset class.

Well, during a chance review of an ‘annual (manufactured housing) shipment chart’ in the 3 December 1212 ‘White Paper: Issues & Opportunities Facing the Illinois Manufactured Housing Industry’, by Dr. Theodore C. Alex, we learned the annual shipment volume of singlesection and multisection manufactured homes reached a point of near equilibrium in 2011, and continued all the way through year 2012 as well!

Specifically; in year 2011, 25,289 new singlesection manufactured homes were shipped, as were 26,317 multisection homes, for an annual shipment total of 51,606. Page # 7. That’s about as close to 50/50% as you’re gonna get in the HUD – code manufactured housing shipment scenario. So, what does this mean? That (some of) the HUD – Code manufactured housing industry is experiencing and dealing with change, as it hunkers down and does what’s necessary to serve those markets (e.g. 50,000+/- land lease lifestyle communities nationwide) open to this unique type of factory – built housing. While further explanation is beyond the scope of the quoted Illinois report, this specific strategy generally means designing, selling, and shipping more CSH Model homes (featuring durability – enhancing features intended to facilitate reconditioning between renters and or contract buyers of said homes), even ‘park model RVs’, into LLLCommunities throughout the U.S.

But wait! There’s a serious caveat to this ‘small ray of shipment hope’ i.e. placing more new homes into LLLCommunities, on the way to filling an estimated 250,000 vacant rental homesites nationwide. And it goes like this: Until EVERY HUD – Code home manufacturer takes this (now) five year new home shipment nadir crisis seriously (i.e. Where we’ve been ‘bouncing along the bottom’ @ 50,000+/- new homes shipped per year during this time) and FINALLY reacquaints themselves with How To Actively Market New Homes to this realty segment of the MHIndustry, the very segment ‘which brought them to this housing dance in the first place during the early 1970s’ – LLLCommunities large and small, nothing much is gonna change anytime soon! And as is oft said, figuratively speaking, ‘You can take that to the bank!’ Why that metaphor? Because, for the past decade, LLLCommunity owners/operators have, by necessity, become their own bank, financing many, if not most, of the (home) deals they sell!

Why am I so sure of this general disconnect? After five years of writing about, aggressively promoting (Often directly to HUD – code manufactured housing producers and their ‘Business Development Managers’ or BDMs), and displaying Community Series Homes, circa 2008, at every annual International Networking Roundtable (The single largest draw of LLLCommunity owners/operators each year!), the income – producing property segment of our industry, especially the 85% of 50,000 LLLCommunities containing fewer than 100 rental homesites apiece, continues to be ‘all but ignored’ by most HUD – Code home producers! There, I’ve said it out loud and in this very public online forum patronized by 1,000+/- readers. Now I’ll wait, along with you, to see ‘if and how many of’, these relatively few remaining home manufacturers take this marketing matter seriously. And as a corollary, you may or may not be aware, that more than 80% of today’s total national market share of HUD – Code manufactured housing is shipped by three ‘Big C firms’, those being Clayton Homes, Inc., at 48+/-%, Cavco Industries, Inc., & Champion Home Builders, Inc. The remaining 20+/-% of national market share is accounted for by mostly regional ‘players’, who should be – but aren’t, taking just as serious an interest in marketing new HUD – Code manufactured homes for siting within LLLCommunities.

An apt, and appropriate ‘closing sidebar’ here, has to do with training aids (the ‘Ah Ha! & Uh Oh! Worksheet’ for estimating ‘affordable’ & ‘risky’ Price Points for new & resale manufactured homes for placement within & outside LLLCommunities; AND the fresh – off – the – press ‘5 – RPs of Marketing & Selling New Homes INTO a LLLCommunity’ plastic wallet card *2) have generated little interest, let alone use, among HUD – Code home manufacturers, while being very popular among LLLCommunity folk marketing and selling homes on – site. Go figure.*3

End Notes

1. Vilfredo Pareto (1848 – 1923), Italian economist and political ph8ilosopher. A vigorous opponent of socialism and liberalism, he justified inequality of income on the grounds of his empirical observations. Webster’s New World Encyclopedia
2. 5 – RPs = Right Product, Right Place, Right Price, Right Promotion, & Right People.
3. FREE copy of the ‘Ah Ha! & Uh Oh! Worksheet’ is available when one phones the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And the set of ‘5 – RPs of Marketing & Sales of HUD – Code Manufactured Housing & Leasing of Rental Homesites’ will be distributed to all attendees at the 22nd International Networking Roundtable, 18 – 20 September 2013, in Bloomingdale, IL. Ask for agenda and registration form when phoning the HOTLINE.

Now, for that second manufactured housing report….

Have YOU obtained a copy of, and studied, the ‘2012 Mobile Home Market Facts’ report researched and recently distributed by the Foremost Insurance Group? If not, you owe it to yourself to make that effort today! It’s well worth your time and reading. Contact information later in this review.

While I’ve already reviewed some of the seminal statistics, contained in this 13 page report, in ‘the Allen CONFIDENTIAL!’ and the ‘Allen Letter professional journal’, some of the material is worth repeating here.

First off, know that Foremost’s ‘once ever four year’ report, and the annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Portfolio Owners/operators of Land Lease Lifestyle Community Owners/operators Throughout North America!’) continue to be the only two professionally researched, published, and distributed ‘industry & asset class wide’ reports in the entire HUD – Code manufactured housing industry. That’s why you owe it to yourself to get a copy of this edition of Foremost’s research. There won’t be another one now until 2016!

Page # 2 pretty much ‘says it all’! “The Mobile Home market Shifts Toward Older Homes and Lower Income Households’ (e.g. “55% of mobile home owners reported an annual household income less than $30,000, representing a 16% increase from 2008.”) And there’s more….

“Single – section homes represented 59% of all units. Multi – section homes are down 8% since our 2008 study.” What did I tell you in the first half this Part I of this week’s blog posting?

And get this: “68% own or are buying their mobile home; 24% rent.” Now, there’s another ‘late 1970s trend’ – back towards ‘rental units’, that few recognize or write about these days. How come? Frankly, manufactured housing journalism is fast becoming a ‘lost art’ or worse – or so it seems – when one considers how few advertising – supported print trade publications remain (Only one!), and subscriber – supported newsletters (Only two!), along with ‘just a couple’ online ‘general & financial news’ ezines. That’s all there is! (Please excuse the tangential diatribe)

OK, I could go ‘on and on’ here, but I know what you’re most interested in learning: ‘How to get a copy of the 2012 Mobile Home Market Facts report!’ Phone Joe Kaffenberger via (616) 956-2514, and when you call, please tell him, ‘George told me to call!’

Know what I’d like to see happen in the 2016 edition of Foremost’s report? A wholesale switch away from ‘mobile home’ lingo, to ‘manufactured housing’ and ‘land lease lifestyle community’ enlightened verbiage. Will it happen? Guess we’ll have to wait (four years) and see. In the meantime, ‘get your copy’, study it, and make good use of what you learn – especially those reading this who’re HUD – Code manufactured housing producers and marketers (Just maybe someday, we’ll reverse those two function words, and see our industry embrace ‘marketing and then production’!) But don’t hold your breath.

***

II.

‘Contemporary Archetype of Truly Affordable
Housing in the United States!’

OK, this is going to be ‘short & sweet’, as they say in some circles. If you’re an ‘Allen Letter professional journal’ subscriber, you’re already in the cat seat for what I’m about to tell you. If NOT, then you might want to seriously consider subscribing before the August issue of the newsletter goes into the mail. To do so, simply phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764. Credit card orders welcome; annual subscription is $134.95 for 12 monthly issues and a dozen Signature Series Resource Documents (‘SSRDs’) – including a FREE copy of the annual ALLEN REPORT, and 11 other such seminal documents re ‘RE & chattel lenders, consultants, etc..

‘Contemporary Archetype of Truly Affordable Housing in the United States!’ is the lead feature article in the August issue of the newsletter. Following are the opening paragraph from this opus, a particularly ‘telling’ paragraph incorporating timely statistics form the aforementioned 2012 Foremost report, and concluding paragraph.

Allowing for inevitable and key differences among local housing markets (e.g. demographic statistics, availability of services, & employment opportunities, to name a few), low cost and priced HUD – Code manufactured homes sited in land lease lifestyle communities (a.k.a. manufactured home communities), charging rental homesite rent in sync with other forms of nearby multifamily rental housing (e.g. Usually 1/3rd the monthly rent charged for a 3BR2B conventional apartment or townhouse, assuming utilities are billed in similar fashion), continue to be the contemporary archetype (‘original model or prototype’) of truly affordable housing in the United States! How so?

Mid – article paragraph:

Neither of the two latter ‘affordable’ residual $ amounts are much to work with, in many to most local housing markets; ;but they are indeed ‘doable’ in some, if not many, blue collar, family LLLCommunities! Proof? The recently released (June 2013) ‘2012 Mobile Home Market Facts’ report, researched and published by the Foremost Insurance Group, documents, that during year 2012, 18% of manufactured housing purchase prices ranged between $10,000 & $19,000; 14% between $20,000 & $29,999; and, 13% between $30,000 & $39,999; for a total of 45% of all HUD – Code manufactured homes sold during year 2012 being priced between $10,000 & $40,000. And this 45% total does NOT include yet another 23% of manufactured homes that sold for less than $10,000.! Frankly, housing simply doesn’t get any more affordable than this combined 68% of 2012 manufactured housing purchases priced at less than $40,000 apiece.

Final paragraph:

Finally, when the 50% ‘affordable housing adjustment’, of a local housing market’s AMI (Annual Median Income) is considered, buying an inexpensive resale manufactured home, sited on a rental homesite within a LLLCommunity , is often the ONLY viable alternative an individual or family has in today’s uncertain housing market. That’s why HUD – Code manufactured homes sited in LLLCommunities remain the sole contemporary archetype of truly affordable housing in the United States today!

I’ve been writing for the HUD – Code manufactured housing industry and land lease lifestyle community real estate asset class for more than a quarter century, and at last estimate, have researched and published no fewer than 2,500 articles and newsletters, along with 11 books. Frankly, I’ve been ‘learning & waiting’ most of those 30+/- years to pen the piece I’ve just told you about, and from which I extracted those three paragraphs. My hope is that it becomes the first step, by which all of us in the industry and property type, believe, recognize, and deal with the reality that our homes and multifamily rental property type are indeed the ‘contemporary archetype of truly affordable housing in the United States’ – and that placement of this piece in the hands of politicians and regulators, especially HUD, motivates them to buy into and support this reality as well!
So, make it a point to read the August issue of the Allen Letter professional journal.

***

III.

A New Book: ‘The First 20 Years;
Forging Manufactured Home Community Advocacy & Networking’

The title of this Part III of this week’s blog posting at the community-investor.com website is the ‘working title’ of the book Bruce Savage, CAE., is researching and writing this Summer, for printing and binding in time for distribution at the 22nd annual International Networking Roundtable, 18 – 20 September 2013, in Bloomingdale, IL. Sure hope YOU plan to be there, as we’re expecting more than 250 land lease lifestyle community owners/operators, and their preferred lenders, from throughout the U.S. and Canada. And like subscribing to the ‘Allen Letter professional journal’ in Part II above, simply phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request an agenda and registration brochure.

So, what’s this new book about? YOU, if you’re an owner/operator of a LLLCommunity; more specifically though, it’s ‘a little bit of history’, beginning on 31 August 1993, when 19 of your peers met in Indianapolis, IN., to take control of their (our) collective destiny, where national advocacy, representation, communication, and networking is concerned. Yep; it was an exciting, albeit at times scary, beginning of what’s since become a 17 year ‘run’ for the National Communities Council division (‘NCC”) of the Manufactured Housing Institute, or MHI.

Not going to ‘tell the story here’, that’s what the book is for; but thought you’d like to learn how the manuscript is shaping up to date.

Bruce has been interviewing the 13 of 19 LLLCommunity ‘pioneers’ still active in the realty asset class or recently retired. His outline to date covers some of what led up to the 8/31/1993 meeting (Hint. REIT ‘wave’ began in 1994, less than a year following said meeting in IN.), the series of ‘around the U.S.’ meetings that occurred during the next couple years, and how the NCC was birthed 1 January 1996, under the executive guidance of Jim Ayotte (now executive director of Florida’s MHAssociation). And, as you’d expect, there’s a summary of projects, etc., undertaken by the NCC during it’s 1 ½ decades of existence.

Some of you have asked why I didn’t make this book number 12 in my career. Well, it’s fairly simple reasoning. I ‘was present at the birth’ on 31 August, and since 1988, with the publication of ‘Mobile Home Park Management’, since retitled with release of the 6th edition, as ‘Land Lease Community Management’ have authored every other book ‘still in print’ about our industry and realty asset class. It’s time for someone else to shoulder the responsibility of being the ‘scribe of manufactured housing’. My hope, at PMN Publishing, is this historical retrospective by Bruce Savage, will serve as his entrepreneurial debut to this end. I know I’m excited about getting to read the final product; I hope you are too. And know what? Every attendee at this year’s 22nd annual Networking Roundtable will receive a FREE copy of it. Just one more good reason for YOU to be present at this major annual gathering of LLLCommunity owners/operators.

In the meantime; Bruce is recruiting and working for MHIndustry clients with a need for his print and online communication expertise. If you’d like to get in touch with him directly, simply phone (202) 664-4512. He’s also listed in the 14th annual ‘Who Ya Gonna Call in 2013?’ list of MHIndustry & LLLCommunity Freelance Consultants. If you’d like a FREE copy of this directory of 40 national consultants, ask for it when you subscribe to the newsletter and request a Networking Roundtable brochure.

***

IV,

From Blog Floggers (readers)….

Two this time around. The first from an old timer in our business, the second from an up and coming young executive in one of the largest fee management firms in the U.S. today.

“Yes, dysfunction seems to reign in Washington, and in some state associations as well. Here we are (manufactured housing), the best buy, period; and we ignore our potential, instead focusing on a desperate attempt to survive? What that Abbott & Costello could grasp ___ & _____, and our suppliers, manufacturers, servicers, and financiers playing with our (business) lives, all separately. And to boot,, we let our interest and need for (land lease lifestyle) communities disappear in a fog of being ignoramuses.” NB (Edited for effect. GFA)

-and this-

“Inspiration can be achieved with a change in public opinion, but not necessarily among those in control. Response to this (article) description of our community, and what we’re doing, has temporarily shut down our incoming phone lines. Imagine that in a (land lease lifestyle) community! Promotion (of this concept) to government officials, must inform them about our unique brand of senior communities, i.e. branding to 55+ Baby Boomers, now turning into Seniors. Our company is moving out of traditional complacency!” SL (Edited for effect. GFA)
***

George Allen, CPM & MHM
Box # 47024, Indianapolis, IN. 462437
(317) 346-7156

Blog # 251 Copyright 2013 30 June 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. ‘This blog; the national Advocacy voice, statistical Research reporter, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

I.

WRITER’S BLOCK

Years ago, the late Herb Tieder, then editor & publisher of the now defunct Manufactured Home Merchandiser magazine, and I, came across two, three inch square blocks of wood, with five pencil – sized holes drilled in the top of each One was labeled ‘Writer’s Block’; the other, ‘Editor’s Block’. I kept – and still have the former; he, the latter. We joked about them from time to time, as we kept said blocks on our respective desks, each holding an assortment of ball point pens and pencils.

Well, today I’m dealing with another type ‘writer’s block’, one generally associated, from a writer’s perspective, with either 1) not having much helpful to share in this week’s blog posting; or frankly, 2) too much material not fully understand – or about which there seems to be general confusion. Ever been torn betwixt and between like that? For me, it’s an unsettling feeling.

So, let’s take a brief look at both perspectives: having much information not fully understood; and then, one topic of the warm fuzzy category of helpful information.

II.

Washington, DC Contretemps cum Conundrums

Contretemps: ‘an embarrassing occurrence’

Conundrum: ‘a riddle; a hard question’

Having ‘careered through’ no fewer than five presidents/CEOs’ at the Manufactured Housing Institute (‘MHI’), and one Danny Ghorbani = the Manufactured Housing Association for Regulatory Reform (‘MHARR’), during the past three plus decades, one would think this veteran MHIndustry observer would be more than used to the on – again, off – again relationship machinations between these two national advocacy bodies. Not!

This unity/disunity conflicted state of mind has again been stimulated of late, by a flurry of email messages (apparently) seeking to inform focused and casual readers alike, regarding manufactured housing industry issues, timely circumstances, pending legislation, and more. A few examples:

• HUD program administrator hiring announcement. Consider this a political football once in play, now fumbled! MHI & MHARR agreed to lobby in behalf of one HUD program administrator candidate of their liking. But now, the HUD program administrator hiring announcement has been distributed far and wide, via at least one state MHAssociation and a special blog posting. Consequently, the playing field has lengthened and options (opportunities) increased. Good or bad?.

• GAO & future of HUD as manufactured housing’s regulatory agency. Here, MHIndustry leaders learn of itinerant interviewers asking: ‘What consequence(s) if HUD is replaced as federal regulator of manufactured housing?’ Industry responses to date? MHPoliticos have denigrated or ignored the notion altogether; and some openly discuss the menacing matter, so as to be prepared if/when an industry ‘competitor’, or special interest group, steps into the fray. Good or bad?

• RV interests seek amended definition of manufactured home, in 1974 Act, to exempt larger RVs & some ‘park model RVs from said standards – in effect, creating a new type or classification of factory – built housing (i.e. Units built on steel chassis), that may or may not be appropriate for siting in land lease lifestyle (a.k.a. manufactured home communities), per state regulation. Good or bad?

Some obvious questions here being: 1) Why are such sensitive, potentially paradigm – changing communiqués emanating from more than one national advocacy source? 2) Is there a strategy, of some sort, in play here? Thinking, a Trojan Horse scheme, ‘divide & conquer’ maneuver, or just plain naïveté’ afoot in our nation’s capitol. And, 3) What will it take, to get elected and salaried HUD – Code manufactured housing leaders to finally ‘speak with one unified and effective voice’ in matters politic and having to do with the federal regulation of our industry??????????

II.

Meet the ‘5 – RPs of Marketing’ Applied to Manufactured Housing & LLLCommunities!

Actually, the concept is quite simple, and has an historic twist to it.

Pick up just about any college – level ‘Introduction to Marketing’ textbook, and you’ll find somewhere therein, reference to the ‘Four Traditional Letter Ps of Marketing’. These being:

• Product
• Place
• Price
• Promotion

At that point, the text will often describe, in detail, just how these ‘four Ps’ fit together, not necessarily in the order shown, to effectively Promote one’s appropriate Product or needed service, at the best time and Place, with the right Price. It’s as simple as that, but – believe it or not – it’s an incomplete (marketing) picture at best.

How so? To effectively Promote, the appropriate Product (or service), at the best time and Place, and for the right Price, one had better have yet another ‘letter P’ in play, that being the best People – properly recruited, selected, trained, incentivized, and supervised! And speaking of the Right People, might as well add the word Right to all five ‘letter Ps’ as well, e.g. Right Product, Right Place, Right Price, Right Promotion & Right People! All that brings us now, to the

Five – RPs of Marketing & Selling Manufactured Homes INTO and WITHIN Land Lease Lifestyle Communities, as well as Leasing Rental Homesites WITHIN said Properties….

Yes, there’re three distinct environments in which these ‘Five RPs of Marketing’ are designed to work:

• ‘5-RPs of Marketing & Selling New Homes INTO a LLLCommunity’; this application being from the home manufacturing or plant perspective.

• ‘5-RPs of Marketing & Selling New Homes WITHIN a LLLCommunity’; this application is from the property owner/operator perspective, possibly including one or another type of self – finance or ‘captive finance’, where and when said home sales transactions are concerned.

• ‘5-RPs of Marketing & Leasing Rental Homesites WITHIN a LLLCommunity’; again, this application is from the property owner/operator perspective, harkening back to the traditional manner(s) by which rental homesites are filled.

And the details of marketing & selling (leasing) in these three environments and in accords with these different perspectives? Well, for that you’ll need a set of two 3”X5” plastic wallet cards, recently designed and manufactured for the HUD – Code manufactured housing industry and land lease lifestyle community asset class! Initial distribution of these durable, portable training and memory aids will occur during the 22nd annual International Networking Roundtable in Bloomingdale, IL. @ 18 – 20 September 2013. To register, visit this website or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request an information/registration brochure.

In the meantime, engage in the following do – it – yourself exercise. Pick one, and eventually all three, perspectives, and mentally walk yourself through the ‘Five RPs of Marketing’ and ask yourself, along the way: ‘As a (home manufacturer or LLLCommunity owner/operator) do I/we have the Right Product (or homesite) for this local housing market? How do I know so? Then, how ‘bout the Right Place? Need to improve on it somehow? Then, the Right Price (point) for homes (homesite) being sold/leased? How to know? Use the ‘Ah Ha! & Uh Oh! Worksheet’ to decide.*1 Then, the Right Promotion(s) in place re: off & on – site signage, print & online advertising, etc.. And how ‘bout Right People? When was last time they were Mystery Shopped to measure job performance?*2

Get the idea? Well, that’s what these two plastic 3”X5” wallet cards are all about! In each instance, there’s a plethora of suggestions for the ‘user’ to consider when establishing one’s marketing plan, for any local housing market, and or reviewing one already in existence. So, don’t miss your opportunity to pick up a FREE set of these cards at the Networking Roundtable in September.

End Notes:

1. For FREE copy of the popular ‘Ah Ha! & Uh Oh! Worksheet’, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764. While you’re at it, also ask for a FREE copy of the ’10 Symptoms of a Troubled LLLCommunity!’

2. Professional complete Mystery Shopping (i.e. telephone & on – site evaluations of sales/leasing team’s on the job performance, in writing, and documented with photographs) of land lease lifestyle communities, available for only $500.00 per property, plus travel – related expenses. Anywhere in the U.S. Simply phone (317) 346-7156. Slightly lesser rate for multiple properties in the same local housing market.
***

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

Blog # 250 Copyright 2013 16 June 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. To be the national Advocacy voice, statistical Research reporting, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

I.

Blog ‘Purpose’ Blossoms!

II.

250 Weekly Postings & Growing!

III.

Support the RV/MH Heritage Foundation!

IV.

Celebrating 20 Years of LLLCommunity Camaraderie

***

I.

Blog ‘Purpose’ Blossoms!

Unsolicited, overwhelmingly positive response(s) to last week’s blog (Titled: ‘Some things in Life & Business Are Simply Not Meant to Be! – OR – Are They; but over Objections?’) motivated a rewording and expansion of the PURPOSE statement heading this and future blog postings at the community-investor.com website. While the focus of last week’s blog (dated 9 June 2013) addressed and countered Five Reasons (unofficially) cited for NOT expanding product and service offerings by MHI’s National Communities Council division, readers felt ‘this weekly blog posting’ should ‘lead the way’, one more time, ‘working within the MHIndustry’s political system’, to create the proverbial Three Legged Stool of NCC service, relative to 1) national Advocacy, 2) statistical Research, & 3) ongoing Resource servicing, of land lease lifestyle communities, Of All Sizes, nationwide! Hence this reworded and expanded PURPOSE statement:

‘To be the National Advocacy voice, statistical Research reporting, & op/ed communications Resource for LLLCommunities, of all sizes, throughout North America!

II.

250 Weekly Postings & Growing!

Has it been five years already? Guess so. And ‘truth be told’, the total number of blog postings, originating from this pen (computer), is closer to 300, when one counts the year of postings at the no longer published Manufactured Home Merchandiser magazine’s website.

And the reader total continues to grow month after month after month. Today, more than 600 MHIndustry & LLLCommunity aficionados receive a BEBA (Blast Email Blog Alert) most Sunday mornings, announcing the posting of that week’s blog at community-investor.com. And know what? Every one of these BEBA email addresses connects with a businessman or woman earning their livelihood in one or another of HUD – Code manufactured housing’s half dozen or more Business Model segments.

So, If you’ve happened onto this blog posting, and would like to have your name and email address added to one of more than 30 BEBA lists, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, and express that desire….

III.

Support the RV/MH Heritage Foundation!

Whenever I escort a first time visitor to the RV/MH Museum, Hall of Fame, and Library facility, at 21565 Executive Parkway, Elkhart, IN., the reaction is the same: “I had no idea this would be so big, and so very nice!”

Yes, the sister industries of ‘recreational vehicles’ & ‘manufactured housing’ have a next to new, multipurpose, two story facility, right alongside the South edge of Interstate 80, connecting eastern and western Indiana. In fact, there’s an interstate exit, right there in view of the RV/MH Hall of Fame – and visitors and tourists come to visit the exhibit halls, library, and impressive Hall of Fame display, every day the facility is open. Why don’t YOU plan to visit sometime soon? Just phone (574) 293-2344 to let’em know you’re coming….

Won’t go into the several decades long history of the RV/MH Hall of Fame here, but know it does exist, and will continue to do so – and GROW, only if YOU take an active interest in supporting our legacy preservation facility with your Visits, Membership, and Charitable Contributions. Already told you how to plan a visit. And while you’re making said phone call, inquire as to the cost of a lifetime membership in support of the RV/MH Hall of Fame – it’s a very reasonable amount (I’m a Life Members, as is Ken Rishel, and many other ‘friends in the MHBusiness’). In addition, include the RV/MH Hall of Fame in your corporate budget every year. GFA Management, Inc., dba PMN Publishing, has done so for more than two decades, and Carolyn and I consider the money well invested, helping commemorate and preserve our industry and asset class’ past, present, and future.

Want to participate in a special legacy opportunity this Summer? When phoning to arrange for the aforesaid visit, about becoming a Lifetime Member, or arranging a Charitable Contribution, make a reservation to attend the annual RV/MH Hall of Fame Induction Banquet, the evening of 5 August 2013. There’ll be ten RV/MH true pioneers inducted that evening, including Craig Bollman, LLLCommunity developer, Theresa Desfosses, HUD – Code home manufacturer and LLLCommunity owner/operator, and Tom Walworth of Statistical Surveys, Inc. I’ve already sent in my reservation. How can you not want to be among several hundred RV/MH industries’ notables present that evening? For yet another ‘good reason’, to attend, read the first bullet point in part IV following…

IV.

Celebrating 20 Years of LLLCommunity Camaraderie!

I’ve mentioned ‘Celebrating 20 Years of LLLCommunity Camaraderie’, in earlier blog postings, and within the pages of the Allen CONFIDENTIAL! and ALLEN Letter professional journal, but since then, there’s a new twist to the celebration, so thought I’d mention it at least one more time.

Heretofore, you’ve read the historic Strategic Planning meeting, held in Indianapolis, IN., on 31 August 2013, will be commemorated in two distinct ways. Well, a third has been added to the mix, and here they all are:

• 13 of 19 (then) manufactured home community owners, who met that day, to shape the future of national Advocacy, for their realty asset class, are still active in the MHBusiness, or have retired. Any of them who attend this year’s RV/MH Heritage Foundation’s annual RV/MH Hall of Fame Induction Banquet, on 5 August, will be formally recognized, individually or as a group, at the beginning of the evening’s festivities. Again, phone (574) 293-2344 for further details and make a reservation to attend the festivities. See you there!

• 22nd International Networking Roundtable theme this year, commemorates the same historic event, i.e. ‘Celebrating 20 Years of Land Lease lifestyle Community Camaraderie!’ Gary McDaniel, chairman of YES! Communities, one of the aforementioned ’13 of 19’ Pioneers, will lead off as keynote speaker at this 18 – 20 September 2013 event. Again, phone the Official MHIndustry HOTLINE for details and to register, Expecting more than 250 this year! And here’s a late breaking, related NEWS FLASH! The Illinois Manufactured Housing Association, at its’ annual meeting in Urbana, IL., this past week, with more than 60 members present, voted to reconstitute its’ board of directors, with an eye to reestablishing itself as the primary statewide Advocacy body for manufactured housing and land lease lifestyle communities! What does this have to do with the Networking Roundtable? After the election, an invitation was extended to hold IMHA’s 18 September morning board meeting at the Roundtable’s host hotel, Indian Lakes in Bloomingdale, IL. This would facilitate participation, in said board meeting, by more than 30 LLLCommunity portfolio owners/operators domiciled throughout the Chicago SMSA. (The invitation will be considered at the board’s meeting in July)

• And here’s the New and Exciting manner in which these ’20 Years of Camaraderie’ will be commemorated: With a New, as yet untitled, book, profiling the LLLCommunity owners who participated in the 8/31/1993 meeting, along with lists of past NCC chairmen, and MHI executives, who’ve served during the past 17 years of the council’s history, and more! The book will be distributed FREE to all attendees at this year’s 22nd annual Networking Roundtable in Bloomingdale. How can you not want to be present to receive your copy – along with those mysterious ‘5 – RPs of Marketing & Sales (plastic) wallet cards hinted at previously, in blog postings at this web site? Book’s author? Bruce Savage, former MHI staff member, present day Communications Consultant to the MHIndustry and LLLCommunity asset class. Reach him via (202) 664-4512 and request a brochure describing his services.

Should be obvious to you by now, that this year’s 22nd annual Networking Roundtable is quickly shaping up to be one extraordinary event for not only owners/operators of land lease lifestyle communities, but manufactured housing industry businessmen and women as well. For an informative registration brochure, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

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

Blog # 249 Copyright 2013 7 June 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. ‘A primary research, resources, & op/ed communication means for owners & operators of LLLCommunities of all sizes nationwide, + national advocacy awareness.’

I.

Some Things in Life & Business
Are Simply Not Meant to Be!
– Or –
Are They; but over Objections?

One man’s opinion why ‘A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities, of all sizes’, won’t likely evolve within either present day MHAdvocacy organization; OR, maybe so!

It’s a simple & complicated matter at the same time!

In the first instance, one national manufactured housing trade advocacy body, the Manufactured Housing Association for Regulatory Reform, or MHARR, simply does NOT have a membership category for any other segment of the industry other than HUD – Code home manufacturers, and NO plans to create new categories in the near, interim, or even distant future. That’s been their position since 1993, when offered an opportunity to bring (then) manufactured home communities, into their fold. So, NO ‘Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities, of all sizes’, there. However, the MHARR does openly support the creation of a new national, independent, not for profit, post – production trade Advocacy entity, to include and serve every industry segment except home manufacturers!

On the other hand, the national manufactured housing trade advocacy body claiming to represent ALL segments of the HUD – Code manufactured housing industry, the Manufactured Housing Institute or MHI, and its’ National Communities Council division (‘NCC’), have, in the opinion of this industry observer/direct, dues – paying member of the institute, unofficially communicated at least five intrinsic reasons for not increasing services and products available to land lease lifestyle community members:

• The tendency, where the NCC division is concerned, after 17 years of existence, to be “…kinda stuck in first gear, as national Advocate for the real estate asset class.”*1 This singular focus is underscored by the council’s periodic, as opposed to weekly or monthly, online newsletter (There is no print publication) to members; little to no professional property management education; only one mega – networking event each year; and of late (circa 2013), just one general membership meeting per year – when there should be two. Such single – mindedness and lethargy severely limit the efficacy of the division, and its’ ability to attract new, direct, dues – paying members.

• Commonplace for MHI to concentrate on the needs and wants of HUD – Code housing manufacturers. And sure; why not? The lion’s share of dues income (i.e. floor fees), supporting this national advocacy body, comes from this segment of the HUD- Code manufactured housing industry. Note the institute’s foci: national Advocacy, especially where HUD – Code standards and recent financial regulatory compliance are concerned; but also statistics gathering (i.e. tracking home shipment volume each month in various regions of the U.S.); trends in home size and configuration (e.g. Dominance of ‘single wides’ during 1970s, followed by prevalence of ‘double wides’ during 1990s; and now, a near statistical match in home shipment volume between singlesection and multisection homes shipped during 2011 & 2012); and, ‘who our homebuyers are’ in local housing markets. The manufacturing segment of the industry even has its’ own Think Tank of sorts, the Systems Building Research Alliance or SBRA. No other institute division is so well and regularly served! And this manufacturer focus, is in reality, an array of services at the behest of the ‘Big Three C’ firms (Clayton, Cavco & Champion), who together, garner more than 80% of the national market share of HUD – Code home shipments.

• An expanded agenda for the NCC division would be too much work (for the present staff of one)! Agreed! So, to finally move beyond (just) national Advocacy, to include statistical Research, and ongoing Resource servicing (e.g. more print communication, forms & books; professional PM education & certification; quality interpersonal networking – especially for LLLCommunity ‘owners’; even realty deal – making), a healthy mix of subcontracted tasks (Think the Center for Manufactured Housing Studies or CMHS for research) and an increase in the number of staff members – to a total of three, will be necessary. Now, too much operating expense and capital outlay? That’s the next ‘reason’ oft cited.

• Costs too much to fully service LLLCommunity owners/operators, of all size properties, nationwide! So far I’ve not heard or seen anyone at the institute ‘run the $ numbers’, and they certainly haven’t asked for operational expense data from the present ‘for profit’ source of ‘statistical Research & ongoing Resource servicing’, GFA Management, Inc., dba PMN Publishing. The money is there! All but one of the nearly dozen present day (GFA/PMN) profit centers is just that, a profit center: two subscriber – supported business newsletters each month, the annual Networking Roundtable, tuition from the popular MHM® program, sale of the ALLEN REPORT (Actually a loss leader, used to generate paid newsletter subscriptions) and other Signature Series Resource Document or SSRDs, and regular paid access @ $1,000.00 per usage, to the 500+/- name Property Portfolio exclusive and confidential Data Base, for direct mail campaigns. A final point here. Present (6/4/2013) NCC membership numbers only 84+/- direct, dues – paying individuals/firms. Start supplying the above – referenced ‘products & services’, so LLLCommunity owners/operators no longer rely on a ‘for profit’ firm outside the institute, and they (new direct, dues – paying member) will come! Frankly, 500+ new NCC members is achievable, given the 500+/- present day property portfolio owners/operators, and 50,000+/- LLLCommunities nationwide. And, at a minimum membership fee of $500.00 per firm, that’s a jump in $250,000 dues income for MHI/NCC! And that’s not chump change!

• NCC expansion potentially reduces influence of, and control by, the home manufacturing segment of the industry. Now that’s almost laughable. But know what? The answer to this objection is simple: ‘So what?’ If filling an estimated 250,000 vacant rental homesites, in 50,000+/- LLLCommunities nationwide is ‘Where the action is today’, then by all means put the unique, income – producing property type center stage! After all, the more new HUD – Code homes LLLCommunity owners/operators sell, and often self – finance on – site, during the months and years ahead, the more new HUD – Code homes get built and shipped – especially when they’re Community Series Homes or CSH Models. What better way to break our five year bondage to ‘ a nadir of only 50,000+/- new homes shipped per year’?

BOTTOM LINE? There needs to be a Major Attitude Adjustment, on the part of elected and salaried leaders at the highest level of the HUD – Code manufactured housing industry, and the sooner the better – lest we hasten its’ demise (Due to too few new home shipments for far too long)!), and eventual diminution of the LLLCommunity real estate asset class as well! Manifestation of said ‘Attitude Adjustment’ must be in terms of the following five (summary) reasons or parameters:

NCC division could and should become ‘all things to all owners/operators of LLCommunities, of all sizes, nationwide’, and no longer function just as an Advocate for the realty asset class; but, in reality, become its’ Three Legged Stool of 1) national Advocacy, 2) statistical Research, & 3) ongoing Resource servicing, via an array of proprietary products and services! After two decades, it’s high time for a major change.

There must be an evening – out of attention paid to other segments of the HUD – Code manufactured housing industry, and less focus on just the ‘Big Three C’ firms; unless of course, we/they agree on this collective focus: ‘What will it take to sell many more new homes?’! This timely focus suggests more than a nod to National Image Improvement via Effective Brand Marketing. Are we there yet? Not by a long shot. And we won’t be until manufacturers stop being more concerned about ‘tag along benefits garnered by non – participating firms’, than tangible results realized from a National Image Improvement (campaign) via Effective Brand Marketing!

NCC will assuredly need more staff and subcontractor support to well serve the Advocacy, Research, & Resources needs of LLLCommunity owners/operators, of all sizes, nationwide. And know what? In addition to the existing NCC staff member, there’s a MHIndustry – experienced, skilled wordsmith; a savvy state MHAssociation executive; and, a LLLCommunity knowledgeable Certified Property Manager® – (No, not me) – waiting to be recruited, to grow this team! What’re we waiting for?

If handled properly, money will not be an issue, where the NCC division is concerned. This change is not like creating new business models to serve new needs and wants; rather, it’s simply the conversion of already successful ‘for profit’ centers into a ‘not for profit’ Advocacy, Research & Resource presence! And know what? If handled properly, there’s likely seed money, akin to venture capital, that might be had to get this whole project up and running.

The two most difficult (attitude) adjustments anticipated, in this scenario and by this industry pundit, will be for 1) the manufactured housing industry segment being willing to work closely with, but not taking a backseat to, promoting new home sales in LLLCommunities nationwide! And 2) the LLLCommunity segment being willing to transform itself, via professional property management training and certification, as well, during 2014. And, while not an Attitude Adjustment per se, the creation of a viable secondary market for HUD – Code manufactured homes is indeed another shortcoming that, somewhere along the line, will have to be addressed and established.

Hmm. These five parameters read something like an election platform don’t they?
Well maybe they should be…

In any event, given the ability to decide, effect major Attitude Adjustment, and exercise fortitude in addressing the Five Reasons just cited and summarized, there’s Strong Possibility for Success, launching ‘A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes’ within the Manufactured Housing Institute’s NCC division – rather than force the eventual spawning of one outside and beyond the institute’s purview.

So, where do matters go from here? Responsibility rests with elected and salaried leaders presently in control of such matters on the national Advocacy level. But are they listening? Do they believe? And, what, if anything, will they do between now and their meetings this Fall (2013), to bring all this about – or NOT?

As usual, if you’d like to weigh in on this timely and critical topic, please do so via email or call the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***
End Notes.

1. Quoted from blog # 248, posted at community-investor.com

***

George Allen, CPM & MHM
(317) 346-7156

Blog # 248 Copyright 2013 2 June 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. ‘A primary research, resources, & op/ed communication means for land lease lifestyle community owners/operators nationwide, plus, national advocacy awareness.’

I.

A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes!

II.

Triple Threat to the Manufactured Housing Industry

***

I.

A Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of All Sizes!

Melding National ADVOCACY, Statistical RESEARCH, & Ongoing RESOURCE Servicing for LLLCommunity Owners/Operators Nationwide

You should be reading about this Grand Plan in Community Connections Newsletter. After all, the periodic communiqué ‘is the voice’ of the Manufactured Housing Institute’s, National Communities Council division. However, like MHI – which promotes only its’ events (e.g. Annual meeting @ 29 September – 1 October & NCC’s Fall Leadership Forum @ 16 – 18 October, leaving one to wonder, ‘why’ six other MHIndustry & LLLCommunity national and mega – regional events, occurring during the same time frame, are ignored) – the bimonthly newsletter rarely plows new ground, apparently preferring to preserve only its’ national Advocacy focus.

So, let’s describe the Grand Plan in the following paragraphs. For some, if not many, this is trade talk couched in terms of land lease lifestyle communities entering a whole New Era. Maybe so, maybe not. Depends on the aspirations and actions of property owners/operators, of all sizes, from all geographic regions of the U.S., and whether they’re MHI/NCC direct, dues – paying members, or not, or in search of something new, more and different. What follows here, in other words, is What Could Well Become How 50,000+/- LLLCommunties Come to be Represented and Served During the Years and Decades Ahead!

First a little history. It took more than 40 years of ‘little to no national advocacy representation’ and emerging ‘investment interest – per coming REIT wave – on the part of Wall Street’, to bring 19 (then) manufactured home community owners/operators together, in Indianapolis, IN., on 31 August 1993, for a Strategic Planning Meeting. There, and during subsequent meetings around the U.S., they ‘took collective (national advocacy) control of their future’! And 2 ½ years later, their ad hoc Industry Steering Committee was absorbed by MHI, to launch the National Communities Council (later, a full – fledge division) on 1 January 1996. Now, after 20 years, a half dozen staff executives, and one leaderless year, we’re today – still kinda stuck in first gear, as national Advocate for the real estate asset class. And as a related aside, 13 of the original 19 owners/operators are still active in the MHBusiness or have retired, one is deceased, and five have, evidently, moved onto other business interests.

Now for that Grand Plan to usher in a New Era for land lease lifestyle communities of all sizes – and their owners/operators nationwide! With strong and progressive leadership, we should be able to meld, within or without the present NCC structure, 1) present day national Advocacy, with 2) existing statistical Research and reporting, as well as 3) a plethora of print and online communication media, professional property management education and certification, regular interpersonal networking, and realty deal – making services, all existent on the ‘for profit’ side of the business.

Specifically, the Grand Plan is comprised of the following key parts:

• National ADVOCACY. Personnel and organization already in place ‘across the Potomac River’, from our nation’s capitol. No changes anticipated there.

• Statistical RESEARCH and reporting. Again, already existent (for the past 24 years), and easily transitioned to the Center for Manufactured Housing Studies or CMHS, if and when principals sit down and work out the details. This goes far beyond the ALLEN REPORT (a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators from Throughout North America!’), and includes annual updates to the National Registry of Realty Lenders (now includes chattel finance sources), as well as directories of freelance consultants, trade media, industry associations; for a total of 12 Signature Series Resource Documents.

• Print & online COMMUNICATION media. This is almost a ‘no brainer’. In the three Words of the oft referenced Success Formula, there’s a very Capable, industry Experienced, highly Motivated wordsmith ‘waiting in the wings for a curtain call’, so to speak, to continue and improve on the print (two subscriber – supported monthly business newsletters) and online communication media already in place! (And we’re not talking about me)

• Professional Property Management EDUCATION & CERTIFICATION. Once again, the Manufactured Housing Manager® program, is already ‘up and running’, with nearly 1,000 MHM®s owning and operating LLLCommunities throughout the U.S. and Canada. And frankly, there are ‘more than enough’ Certified Property Manager® members of the prestigious Institute of Property Management® (nearly 200), active in the realty asset class today, to easily staff and teach this one day program in – house for property portfolio firms, when hosted by state MHAssociations, even via the correspondence course alternative.

• Regular interpersonal NETWORKING opportunities too, already exist. There’s a one day Forum in the Spring of every year, followed by a 2 ½ day Roundtable in the Fall, plus periodic FOCUS Groups comprised of LLLCommunity ‘owners only’, who meet on – site in property clubhouses, to openly – but – confidentially discuss topics of their choosing. And again, there’s staff already in place to consolidate and plan these ongoing events.

• Realty DEAL – MAKING OPPORTUNITIES. While a function of interpersonal networking, the annual Investor Symposium planned and hosted by one of the nation’s top real estate brokerages, sets the stage and launches the momentum that, reportedly, accounts for ¼ to 1/3 of the LLLCommunity ‘deals’ that take place during the following 12 months. Again, a function already in place and easily continued, under the right leadership. And don’t forget, there’s an exclusive, confidential data base, comprised of 500+/- portfolio owners/operators that’s exercised almost every month, at $1,000.00/access, for direct mail campaigns starting and growing, or marketing LLLCommunity portfolios – already in place!

So, there you have the key parts of this Grand Plan to usher in a New Era for land lease lifestyle community owners/operators, of all sizes, nationwide. Now, how do we get this melding ‘off the ground’, ‘up and running’, ‘benefitting all of us’?

I see it happening in three steps over a six to 12 month period. First, there has to be a change in attitude or faces, among elected and salaried MHIndustry leaders on the national scene. At present, there does not appear to be any interest in bringing together ADCOCACY, RESEARCH, & RESOURCES (to include communication, education/certification, networking, and deal – making) from outside their immediate sphere of influence – which at present appears to be dominated by a few large property portfolio ‘players’. How so? During the past two years, the three informal reasons I’ve been given are: 1) ‘Coming together’ (i.e. Grand Plan) will be too much work; 2) puts too much emphasis on one segment of the MHIndustry; and, well, 3) ‘We just can’t afford to do it right now.” My rejoinders? 1) You’re right, it will be too much work for one staff person, so subcontract out the Research and MHM® training, and hire that savvy staff writer. 2) So what? If LLLCommunities are ‘where the action is right now’, with their estimated 250,000 vacant rental homesites to fill – then showcase them! And 3) The ‘more you offer, the more members – and their membership dollars, you’ll attract’! Plus, and this is important, the newsletters, formal networking events, MHM® program, and aforementioned exclusive/confidential 500+/- name data base, are not just self – sustaining, they’re all significant ‘money makers’! And so would be the ALLEN REPORT if not used as a ‘loss leader’ when selling subscriptions to the Allen Letter professional journal. Now what’re the excuses for moving ahead with a Grand Plan? This is why there has to be a major change in attitude or change in leadership ‘at the top’.

The second step – not necessarily sequentially, will be to sit the new leaders, or old leaders with enlightened attitudes, down with two dozen land lease lifestyle community owners/operators (a.k.a. LLLCommunity Pioneers) who’ve been meeting, off and on, during the past two years, to help craft a Grand Plan to usher in an exciting New Era in Advocacy, Research, Resources for their unique, income – producing property type! That’s where the ‘devil in the details’ part of this melding will likely come about – when such a meeting occurs, hopefully yet this year! Are our elected and salaried leaders listening?

The third step – and likely sequential, following the above – referenced meeting, will likely involve me spending part time (over three to six months) at whatever central location is identified where the Grand Plan will commence and take shape. Frankly, and maybe this is because we’ve carried this Research & Resources load for 33 years, I envision the New Era being ushered in at the behest, and with the efforts of, three key individuals, all knowledgeable and passionate about the LLLCommunity asset class: an administrator/coordinator, an excellent and very busy wordsmith, and someone handling the details of maintaining the data base, updating the half dozen directories, effecting meeting planning details, and staying in touch with subcontracted researchers and MHM® trainers.

Well, there it is, a Comprehensive National Trade Representation Model for Land Lease Lifestyle Communities of all sizes. Is that, as a LLLCommunity owner/operators, what you’d like to see on the national scene, ‘for thee and me’, going forward? Then YOU need to let your state MHAssociation, even national advocacy representatives know, and ask them to proceed with steps number one and two!

If you’d like to input me, regarding your thoughts, reactions, ideas, critique, etc., regarding this Grand Plan to bring about a New Era for our property type, of all sizes, nationwide, reach me via the Official MHIndustry HOTLINE: (877)MFD-HSNG or 633.4764. Looking forward to hearing from you. Even more so, I await a call from the national advocacy people who can make this happen – if they truly want to do so. GFA

***

II.

Triple Threat to the Manufactured Housing Industry

REMINDER. This timely threefold topic, of national importance, has been hinted at for weeks, and was described – but – not – fully parsed in last week’s blog posting at this website (Go ahead, scroll back thru the blog archive and bring yourself up to speed). The Triple Threat will covered in detail on 13 June 2013, at a luncheon meeting of the Illinois Manufactured Housing Association, in Urbana, IL., And it’ll be summarized in the July issue of the Allen CONFIDENTIAL! business newsletter, as well as August issue of the Allen Letter professional journal. If need be, it’ll be one of the prime topics of conversation at the Friday afternoon Open Discussion concluding the 22nd International Networking Roundtable in Bloomingdale, IL.

As you’ll likely recall, This Triple Threat to the MHIndustry, has to do with

• the faux shortage of chattel (personal property) capital, via independent third party lenders, to finance home transactions within land lease lifestyle communities….

• Uniform Law Commission’s (July 2012) Uniform Manufactured Housing Act, denigrating ‘vehicle titles’ for (eventually all) manufactured homes, as a means to secure new sources of less risky home finance capital. Tax consequences?

• Covert efforts to supplant HUD as federal regulator of what we know today as HUD – Code manufactured housing, in lieu of ‘another regulator’, one likely with its’ own (assuredly NOT ‘affordable housing’) lobbying agenda in hand.

With that said, one of the faithful readers and responders to this five year private blogging undertaking, offered this meaty commentary to last week’s posting:

“I THINK IT IS WONDERFUL… (for the manufactured housing industry)… “to acknowledge our paradigm has already shifted, and it is time to plan for tomorrow instead of letting government decide for us. Keep it up sir, we need to let go of yesterday!” (emphasis added. GFA)

Assuming for the moment our writer is correct, about the ‘cattle having already left the barn’, presumably for greener pastures (i.e. ‘no more chattel $ for the MHIndustry’, ‘no more vehicle titles for manufactured homes’, & ‘no more HUD overseeing the MHIndustry’), IS and WILL this threefold paradigm change be GOOD or BAD for the Business Model by which many of us live and work today? ME? I’m not sure I agree, in the first instance, with the writer’s posit. I darn sure hope there’s more Title I capital out there that’s more readily accessible to our prospective homebuyers/site lessees. Furthermore; where does housing ‘affordability’ go, when LLLCommunity site lessees (homeowners) pay taxes on their homes as realty? And ol HUD? I’m not a fan of their ‘benign neglect’ (i.e. ‘not promoting’) of manufactured housing as this nation’s premier source of nonsubsidized, affordable housing – all the while they’re enforcing the HUD building code where the housing product is concerned.

YES, all this warrants and deserves further thought….By the way, if you want to ‘get into’ this Triple Threat to the MHIndustry firsthand, phone (217) 528-3423 to register! I’ll be pleased to see you there, and engaged in this timely and critical discussion of our industry’s very future!

***

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

Blog # 247 Copyright 2013 26 May 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. ‘Primary research, resources, & op/ed communication means among land lease lifestyle community owners/operators nationwide; plus, national advocacy awareness.’

I.

Manufactured Housing Dichotomy Contrary to Reason

II.

Triple Threat to Manufactured Housing Trumps Obama’s Press – described Trifecta!

III.

Manufactured Housing’s ‘Perfect Storm’ is in the Offing…

IV.

Errata

V.

Purpose

***

Manufactured Housing Dichotomy Contrary to Reason

A dichotomy occurs when something is divided into two parts. For the purposes of this discussion, we’re referring to the HUD – Code manufactured housing reality, where we fabricate and market the Most Affordable Shelter Option Available Anywhere (Half the cost, per square foot, of contemporary site – built homes, not including underlying realty), on one hand; and, on the other, the Ability to Produce Super Quality, Exciting Design Homes Priced at a Quarter of a Million Dollars! What a disparate dichotomy!

But then, look what happens to this dichotomy when Marketing and Sales Functions do their part, and Home Finance comes into play.

Title I chattel (personal property) capital is the ‘choice of necessity’ for financing affordable manufactured homes sited within land lease lifestyle communities (a.k.a. manufactured home communities). For the most part, that type home financing has been ‘missing’ since the turn of this century; missing not for lack of capital resources, but ‘missing the mark’ at which many, if not most, prospective homebuyers, of manufactured homes, find themselves in today’s battered national economy. Contemporary chattel loan underwriting is understandably stringent; but as a consequence, is woefully underserving its’ traditional market of the past 60+ years.

Title II realty – secured capital is available to an increasing degree, as the overall U.S. housing industry slowly – but – steadily recovers from its’ debacle of 2008. And know what? It’s this type home finance that is most readily available to mortgage the quarter million dollar HUD – Code manufactured homes described earlier.

Bottom line? The folk who need affordable housing the most, have the least opportunity to secure financing for it; while those who’re fortunate enough to qualify for quarter million dollar homes, have little problem becoming mortgagors.

Hence, manufactured housing’s double dichotomy is contrary to reason; to wit: mortgage financing is, for the most part, unavailable to the lowest priced homes (buyers) produced by HUD – Code home manufacturers, especially when going into LLLCommunities. But mortgage financing is generally readily available to the highest priced homes (buyers) produced by HUD – Code home manufacturers, when being sited on developed realty conveyed fee simple. Go figure. It’s a conundrum of the first degree.

II.

Triple Threat to Manufactured Housing Trumps Obama’s Press – described Trifecta!

Ah yes, another definition to start this discussion. This time around however, the key word, trifecta, is being blatantly misused by this nation’s secular press as they report on three abuses of power being laid at the feet of the current administration.

Trifecta: “a wager in horseracing requiring correct choice of first, second, and third place in exact order to win.” The New American Webster College Dictionary.

Excuse me, but I’ve yet to see, let alone understand, how the Bengazi murder cover up, IRS targeting of conservative political groups, and Department of Justice’ wholesale accessing of Associated Press (‘AP’) telephone records, qualifies as anything but a triad, or triplet of missteps, but certainly not a ‘trifecta’, occurring during President Obama’s second term in office. And at this point, I don’t think the American public really cares which ‘offence’ comes in first, second, or third – as they’re equally onerous trampling of our rights ‘to know’, ‘enjoy privacy’, and ‘engage in free speech’.

So, does the HUD – Code manufactured housing have its’ own set of (three) challenges to be dealt with during the present time frame? You bet, and it’s certainly not a ‘trifecta’. For the purposes of this blog posting – and the luncheon presentation I’ll deliver in Urbana, IL. during IMHA’s annual meeting on 13 June, 2013, I’m describing them as the Triple Threat to Manufactured Housing! Want to attend? Phone (217) 528-3423 and talk to Bob Thieman, CAE.

Here are three titillating paragraphs recently mailed to all HUD – Code home manufacturers and independent (street) MHRetailer, as well as land lease lifestyle community owners/operators, throughout the Midwest:

• Everyone talks of the shortage of chattel (personal property) capital to finance home transactions within LLLCommunities; but that’s NOT the real problem ‘holding us back’. Come and hear the truth, and learn what you might do about the matter. That is, unless YOU don’t care what happens to the MHIndustry….

• According to the Uniform Manufactured Housing Act, agreed upon by the Uniform Law Commission last July, manufactured housing ‘vehicle titles’ are to become ‘a thing of the past’, the sooner the better – in their eyes. Consider the tax consequences and otherwise! Come and learn the ‘who’, ‘when’, ‘where’, ‘how’ & ‘why’ behind this imminent threat to manufactured housing – as we’ve known it for more than 60 years!

• We’ve come to think of HUD as a ‘way of (business) life’, where manufactured housing is concerned. Well, guess ‘who’ is working to supplant HUD and become our new federal regulator – and ‘why’, as well as ‘where’ & ‘how’? And if we’ve had difficulties getting HUD to ‘overtly support the marketing of the most affordable housing option in the U.S. today’ – a reality they understand and write about, but don’t go out of their way to support – think how much more difficult it will become with a new ‘unknown’ regulating our industry, particularly one with an ‘agenda’, e.g. like having fire sprinklers installed in every manufactured home….

Well; all that should get you to thinking, if not disturbing your complacency relative to the near and interim future of HUD – Code manufactured housing and LLLCommunities nationwide. What can YOU do about it? For starters, patronize IMHA’s annual meeting in Urbana on 12 & 13 June 2013 – to learn ‘the rest of the story’; OR, wait for a few weeks to read what we post in future blogs. That is, unless one or another of our national advocacy bodies, and you know we have two of them, decides to ‘really go public’ with the whisperings we’ve been hearing the past few months….

III.

Manufactured Housing’s ‘Perfect Storm’ is in the Offing…

What is manufactured housing’s Perfect Storm? Well, since it’s just now becoming apparent to some, we need to bide our time and comment a bit, as unique – in this case ‘once in three decades’ circumstances are coming together to ‘rock our boats’. One of the few hints I’m comfortable giving you, this time around – so as not to violate confidences, is to suggest researching the specific definition of the last word in this III blog title: offing. Thought I knew what the word meant beforehand, but was surprised when I checked. The specific definition eerily applies.

OK, here’s another tidbit. the Perfect Storm involves individuals, not things, places, products, or services. And perhaps matters we’ve taken for granted for many years, are about to change – markedly. Might happen today; but no, probably a bit further down the road. How far? Now there’s the unanswerable secondary question. It’s like watching weather personalities on TV. We view for information, enlightenment, even Warning; but given the ‘nature’ of weather; and in this case, people; well, the Perfect Storm could indeed happen tomorrow, maybe a few weeks or months from now, but certainly no longer than a year out! And No, this isn’t a consequence of the ‘Big Three C home manufacturers’ controlling MHI, or the few mega portfolio owners/operators dominating the NCC.

Will tell you this though. When that Perfect Storm is indeed on MHIndustry’s near horizon; you’ll likely read about it here first, maybe even in Jim Visser’s The Journal, or both places. So, as they say in radio talk: ‘Stay tuned!’ And it’s unlikely I’ll be the one to ‘Break the news’ to you. In fact, as I reflect on the matter, I believe Bruce Savage, former MHI staffer and present day freelance public relations consultant, is the only MHIndustry – savvy wordsmith remaining, who has the stones and cred to sound a Perfect Storm WARNING! In the meantime; want to hire Bruce to assist with communications and public relations work for your firm? Reach him via (202) 664-4512.

IV.

Errata

If you’re an Allen Letter professional journal subscriber, and received advance copies of the registration brochure, describing the upcoming 22nd International Networking Roundtable, know the hotel phone numbers listed on the back panel are INCORRECT. Here’re the correct phone numbers:

Hotel/Chicago Indian Lakes Resort in Bloomingdale, IL: (800) 334-3417. When phoning in your reservation, mention the ‘Networking Roundtable/GFA’
Need driving directions to the resort hotel? Phone (630) 529-0200

V.

Purpose

Did YOU notice? We’ve added a Purpose statement at the beginning of this blog posting. Why? In recognition of the emerging reality, among many land lease lifestyle community owners/operators, and an increasing number of MHIndustry ‘players’, a New Era is indeed upon us, Perfect Storm or no Perfect Storm. And it turns out this weekly blog posting is expected to ‘lead the way’ into it! We’re grateful you’re along for the ride. GFA

***

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

Blog # 246 Copyright 2013 19 May 2013

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

I.

Meetings Mish Mash This Fall; or, ‘Nothing Else to Do’?

II.

Responses to Last Week’s Blog: ‘The 20 Year Itch!’

III.

Encouraging & Disturbing Words from Assn. Executives

***

I.

Meetings Mish Mash This Fall; or, ‘Nothing Else to Do’?

Spring and Fall are the most popular business meeting seasons. But it appears the HUD – Code manufactured housing industry, and its’ land lease lifestyle community (a.k.a. manufactured home community) counterpart, are going overboard this year (2013). Either there’s a super abundance of good information and industry news to share, or there’s a lot of folk with more time on their hands than work to do. The following paragraphs list the regional and national venues announced to date, so we’ll give you some tips as to where your time and energy might be best spent. For a more detailed breakout of said meeting information, read the June 2013 issue of the Allen Letter professional journal – for pricing, contact information, etc.. To subscribe, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

August 5, 2013. Annual RV/MH Heritage Foundation Hall of Fame Induction Banquet at the museum and library facility in Elkhart, IN. (574) 293-2344 & (800) 378-8694. If you respect our RV/MH history and legacy, you’ll be present with me at this event! Several LLLCommunity owners/operators are in this year’s Class of Hall of Fame Inductees. Are you a faithful financial supporter of the foundation? We are! Become one!

September 18 – 20, 2013. 22nd annual International Networking Roundtable for land lease lifestyle community owners/operators returns to the Hilton/Chicago Indian Lakes Resort in Bloomingdale, IL. This is the only national trade show focused on the educational (20+ seminars & panels), networking, and realty deal – making interests and needs of LLLCommunity businessmen and women! There’ll likely be new Community Series Homes or CSH Models on display. Visit community-investor.com for a brochure!

September 29 – October 1, 2013. MHI’s annual meeting in San Diego, CA., includes a meeting of the National Communities Council division.

October 8 – 10, 2013. 3rd annual SECO Symposium in Forsyth, GA. (Just south of the Atlanta airport).Unique feature here is that Southeast LLLCommunity Owners are the ones who plan and host this annual event, ensuring all the topics are of lively and current interest to the land lease lifestyle community owners/operators who attend from throughout the Southeast USA. I certainly plan to participate – again.

October 15 – 17, 2013. WMA’s annual Convention & Expo in Reno, NV. While technically a California MHAssociation event, many of the participants come from states throughout the West, hence making it a de facto regional venue.

October 16 – 18, 2013. MHI’s National Communities Council Leadership Forum in downtown Chicago, IL. (Two meetings necessary in one month?)

November 5 & 6, 2013. London Computer’s annual Rent Manager conference in Florida. This is a private, by invitation event, but one patronized by a couple hundred users of this firm’s LLLCommunity accounting software.

November 5 – 8, 2013. Urban Land Institute’s Fall Meeting in Chicago, IL. This will also be when the Manufactured Housing Communities Council convenes.

WHEW! Tired of Fall meetings yet? And I’m confident No One will be present at all these venues – especially the last four listed, since they were scheduled atop one another. And this list doesn’t include state MHAssociation meetings planned for the same time frame, e.g. New York & Florida, for starters.

Here’s something else to ‘watch for’ during the months ahead: Where Else Will We See These Regional & National Meetings Listed? Probably nowhere! Why? One or more of the sponsoring trade groups, as a matter of policy (so they say) don’t mention, let alone promote, anyone else’s meetings but their own! Let’s watch and see if I’m Right or Wrong, about this, during the weeks and months ahead. But one thing for sure: Read this Blog Posting every week and YOU get all the MHIndustry & LLLCommunity information you need; supplemented by print publications, like the Allen Letter professional journal, & the Allen CONFIDENTIAL! Business newsletters.

***

II.

Responses to Last Week’s Blog: ‘The 20 Year Itch!’

Hopefully you read it. If not, maybe ‘stop here’, and scroll down through the blog archive that follows this posting at community-investor.com and read it. The following responses will make much more sense to you if you do….

“Glad to read you’re feeling well enough to reinvigorate your business – and ours. It is more important than ever, the statistics and research you publish, continue to be available. We cannot advance the (land lease lifestyle community) asset class, and move forward on initiatives discussed at the recent 2nd National MHRetailers Summit, without them! Continue to count me in your corner for any help you think I might provide.” JR

“Insightful as always and inspirational. Thank you for sharing it (blog posting) with me. I am very happy to hear you are feeling better, and this blog comes off with the energy I have come to know you for. I am looking forward to the upcoming Roundtable, and seeing you soon.” DL

“I am excited to see the Networking Roundtable date ‘later in the month’ in September and returning to Chicago. I plan on being there. And yes, I do recall the prayer times for our nation and its’ leaders (a tradition begun after the 9/11/2001 national tragedy). They’ve been a great addition to the event.” TN (And debut of a new LLLCommunity tradition is planned for this year’s 22nd annual Roundtable event. GFA)

“You have always been, and I am sure will continue, to be a great asset for our industry. Whatever direction you take, I and many others will be glad to follow.” JZ

“Good post George. I suspect ‘they’ will read between the lines! Let’s grab that brass ring!” SR

“I think it’s a good tact to keep things rolling status quo, since you are up for it. Maybe as wounds heal and new people are elected, there can be a better meeting of the minds.” JD

“I think you’ve raised the challenge here – the question I have, from a negotiating standpoint is, ‘What could _____ do to avoid a splinter group?’ You say new leadership; I say, ‘Then what?’ You’ve noted they consistently ‘steal pages from your book’ – not entirely surprising, when a savvy individual is out in front of a group, in terms of their (lesser) ability to move. The way I see it, you have a very good platform of research, publications and training; and what _____ could do, is take each one further, based on their resources, staffing, etc. That’s why I thought your offer to sell made sense. Now, with you still in the business, what’s their ‘best alternative to a negotiated agreement’?” PB

“Good post. Decision made. Go for it!” NB

Postscript.

As you can see and read, the discussion continues. Frankly, I was humbled, but not terribly surprised, that more than a dozen of my ‘friends in the MHBusiness’, ALL land lease lifestyle community ‘owners’, took the time to reach out and communicate their thoughts and ideas, regarding the subject matter of last week’s blog posting. I Thank them for that. Now? Frankly, my efforts are focused on planning and hosting the Best Networking Roundtable Ever, when we gather in Bloomingdale, IL., 18 – 20 September. Don’t wait to send in your registration! Last year we had some challenges accommodating everyone who wanted to attend; hopefully that won’t be a repeated situation this year. But YOU can ensure your ‘boat space’, as we say in the Marines, by registering NOW, for the Networking Roundtable and hotel accommodations. GFA

***

III.

Encouraging & Disturbing Words from Assn. Executives

FIRST, THE ENCOURAGING WORDS.

Relative to the Uniform Manufactured Housing Act – intended to supplant vehicle titles presently used as ‘proof of ownership’ for manufactured homes sited on leased land, as in a land lease lifestyle community:

“Don’t worry (George). The state MHAssociation execs have a solid handle on the Uniform Manufactured Housing Act. We killed it, so far, in (three states) already. The Uniform Law Commission, and others, thought they could pass it over our objections. Nope. These bills are DOA (dead on arrival) at state capitols around the country. Thanks to the good work of Marc Lifset, esquire, and others, keeping us up to date on progress.” A Midwest MHAssociation executive. (lightly edited)

SECOND, THE DISTURBING WORDS.

Relative to ‘Resisting elimination of the Federal HUD Program.’ Title of a recent op/ed piece, by Danny Ghorbani, in The Journal (May 2013)

“The total elimination of the federal manufactured housing program has been a longtime goal of an unusual convergence of industry competitors, special interests and certain regulators. Their reasons and motivations may vary, but the objective is the same – ending the federal superintendence of the industry that began in 1974. Without the federal program, though, the uniform, performance – based regulation, federal preemption and uniform federal enforcement, which together ensures the unique affordability of manufactured housing, particularly for lower and moderate – income American families, would vanish.”

In this article, Mr. Ghorbani cites attempts by this ‘unusual convergence of industry competitors, special interests, and regulators’, to which I’d add: at least on covert, in – house (excusing the pun) influencer, who’ve recently effected “…an attempted diversion of a Government Accountability Office (‘GAO’) investigation of the HUD program mandated by Congress.” How so? Danny, again, cites:

• A 15 year old study by (Get this!) the National Association of Homebuilders NAHB Research Center, in behalf of HUD’s Office of Policy Research & Development (‘PD&R’), to posit whether ‘changes at the state and local level (Read ‘building codes’) have changed the need for (federal) preemption today”, compared to 1974? Talk about a Red Herring diversion.

• Reports of ‘interviewers’ traveling the U.S. asking specially – selected manufactured housing producers, and others, ‘What would be the likely effect on your niche in the manufactured housing business, if HUD was/is relieved from regulatory oversight?” How would YOU like to be asked that question with no advance warning?

All this simply scratches the surface of what is going on now in our nation’s capitol, relative to the HUD – Code manufactured housing industry, and by extension – don’t forget, the land lease lifestyle community real estate asset class!

Again, to stay abreast of these ‘encouraging’ & ‘discouraging’ political and regulatory developments, read this blog posting faithfully every Sunday; and for ‘the rest of the story’, read the Allen Letter professional journal. Also request to be put on the Manufactured Housing Association for Regulatory Reform’s online, email distribution list via (202) 783-4087.

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

Blog # 241 Copyright 2013 14 April, posted 12 May 2013

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

The 20 Year Itch!

How the (then) ‘mobile home park’ business model ‘established its pre – REIT groove’ in 1993; coasted along for two decades as the unique ‘manufactured home community’ income – producing property type; and now, seeks to ‘get its groove back’, as the enhanced public image, land lease lifestyle community real estate asset class – right up there among conventional apartment communities and other forms of multifamily commercial real estate.

Believe it or not, there was once a time, during the 1980s, when (then) mobile home park owners/operators had NO national networking and deal – making meetings, NO dedicated print media of any sort, NO operating performance statistical benchmark reports, and NO professional property management training and certification programs! All that changed pretty quickly though, as the 1990s began, and Wall Street ‘discovered’ mobile home parks cum manufactured home communities, as a highly desirable investment vehicle (excusing the pun, of course).*1

This epiphany had everything to do with the soon debut of manufactured home community real estate investment trusts or REITs, in 1994 & 1995 – though Wall Street, to this day, continues to appear uncomfortable referring to the realty asset class as anything but ‘manufactured housing REITs’ – a misleading nod towards the home fabricating segment of the manufactured housing industry. And WS still has difficulty understanding why income – producing properties, per se, are not ‘growth stocks’ of the sort they prefer to hawk.

In any event, enroute to effecting the above – referenced Initial Public Offerings or IPOs of stock, the REIT – destined firms agreed there was a need for better National Advocacy, in behalf of the asset class, than was available at the time via the sole national body representing HUD – Code manufactured housing. So, on 31 August 2013, 19 owners/operators of this unique property type, met for a strategic planning meeting in Indianapolis, IN. And one might accurately say, from that point forward, ‘the rest is history’, as the following Research & Resources matured along with the constantly consolidating realty asset class:

• The annual ALLEN REPORT while debuting during 1989, ‘hit its’ stride’ by 1994 & 1995, annually polling 500+/- property portfolio owners/operators for their Operating Expense Ratio (‘OER’) data, which along with the newly published Official Industry Standard Chart of Accounts, ‘put manufactured home community profitability performance ‘on the map’ where public (stockholder) interest in the asset class was concerned. That same year, J. Wiley & Sons’, Development, Marketing & Operation of Manufactured Home Communities debuted and sold out within six months of publication. And for the first time in 20 years, new properties were being developed, and existing ones were in high demand. This too short renascence, however, would peak in 1998, and then continually decline during the next 15 years.

• The monthly Allen Letter, since renamed the Allen Letter professional journal, while first published in 1991, distinguished itself as the sole trade media print publication to focus on the information and HOW TO needs of manufactured home community owners/operators nationwide. It served as the communication dispersion and camaraderie glue that ‘got the word out to owners/operators’ and united their thinking relative to industry issues and much more.

• Then there’s the International Networking Roundtable. Meeting for the first time, during the Spring of 1992; a year later, the second annual roundtable event spawned the aforementioned Indianapolis strategic planning meeting. Speaking of which, that ad hoc group of 19 owners/operators met a few more times, as an Industry Steering Committee or ISC, during 1993 and 1994, before being invited by the Manufactured Housing Institute, to merge and create a National Communities Council. Thus, on 1 January 1996, the NCC began its’ work in Arlington, VA., eventually becoming a division within MHI. And the annual Networking Roundtable continues to convene, with the 22nd one scheduled for 18 – 20 September at the Hilton/Chicago Indian Lakes Resort in Bloomingdale, IL. Phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 for an ‘invite’ to attend – if you’re a LLLCommunity owner/operator.

• During the next decade, several exciting and needed (at the time) manufactured home community – related innovations were created, to initially wax, but eventually wane, e.g. a national Recognition of Excellence Award program, and Community Attributes System or CAS. Why? Maybe right program(s) at wrong time(s) or vice a versa; maybe the NCC, having one leaderless year and no fewer than six salaried executive vice presidents heading the program during its’ 17 year history has yet to find long term traction; and yet again, maybe something else….

Be all that as it may be, what’s going on today? Well, that’s difficult to pin down without naming names, even picking at old scabs. But here’s what we do have in play. Still the above – referenced annual (24 years) ALLEN REPORT, a.k.a. ‘Who’s Who Among Land Lease Lifestyle Community Portfolio Owners/operators Throughout North America!’, by which we ‘keep score’ as to who owns and or fee manages the most rental homesites & RV sites, in North America. It’s how we know ELS, Inc., the Chicago – based mega – REIT, is the largest public owner of LLLCommunities in the entire world. And how RHP Properties recently, by acquiring ‘the remainder of the old ARC (former REIT) property portfolio’, has become the largest privately – owned operator of LLLCommunities in the entire world.

J. Wiley & Sons’ first text has been joined by a second: How to Find, Buy, Manage & Sell a Manufactured Home Community (Remains the only case bound text on this subject), and sixth edition of Land Lease Community Management, the instructional basis of the Manufactured Housing Manager®, or MHM®, professional property management training and certification program. While all three books are available via amazon.com, new, unused copies are available directly from the publisher via (317) 346-7156. And frankly; during the past three years, three additional paperback texts have been added to the number of trade references available to LLLCommunity owners/operators nationwide.

Furthermore, the Allen Letter professional journal, continues to be published monthly, along with the higher – priced, limited distribution business newsletter, the Allen CONFIDENTIAL! And the information – conveying nature of these two publications is eclipsed only by the education (22 sessions), interpersonal networking, and deal – making opportunities offered by the aforementioned annual Networking Roundtable effected every Fall.

So, what’s wrong with this status quo? Why a ‘20 year itch’ to take national advocacy and these asset class sophistications up another notch? More than one reason actually.

First and foremost. Though MHI’s NCC division has been in business for 17 years now, its’ number of direct dues – paying members continues to languish around the 100 mark. And if MHI’s proposed bylaw changes, distributed during the institute’s annual Legislative Conference during February 2013, are implemented as presented, the council could lose (‘NCC’) name identity, in lieu of ‘LLLCommunity members simply being members of MHI’. And, ask yourself, ‘What tangible council accomplishments can one identify as having been effected during the past two, make that several, years?’ Answer?

And right up there near the top (reason), is – or was, a unique, once in a lifetime or career opportunity for MHI ‘to bring everything extraneous to NCC, ‘in house’, so to speak; OR, risk the probable creation of a new and separate national, not for profit entity, to continue statistical Research and ongoing Resource servicing, in behalf of the LLLCommunity asset class, that’s evolved as ‘a profit center business model’ during the past 33+ years.

A succinct way to put this whole matter, described in the previous dozen plus paragraphs, in Summary, is to recall 1) we didn’t have any of these niceties during the 1980s; 2) they (Advocacy, Research, Resources) budded nicely during the ‘Go Go’ REIT years of the 1990s – until we lost our access to chattel financing at the turn of the century; and now that we’re a decade into the New Millennium, 3) we have/had this rare opportunity to (either) unite and blossom as a bona fide real estate asset class within the auspices of MHI/NCC – if we can get our act together, stop the territorial bickering, and stop trying to recreate the wheel that’s brought us this far together already! OR, as was articulated in the previous paragraph; what other alternative is there, ‘if not within the MHI/NCC structure’, 4) create an altogether new, realty – based, national trade entity along the lines of the National Apartment Association, Building Owners & Managers Association, Community Associations Institute, even a subset of the National Association of Realtors.

What’s it going to take – in either case, to succeed? LEADERSHIP. Leadership CAPABLE of looking beyond ‘the way we’ve always done things’ (at least for the past 17 years), to see the upsides of having land lease lifestyle community owners/operators selecting and working toward their own destiny within and alongside, but not ‘behind’, the HUD – Code manufactured housing industry. Leadership EXPERIENCED at taking on assignments and actually ‘getting the job done’! Leadership MOTIVATED to do what’s Best for the entire realty asset class, and not just one group, or another, of owners/operators, maybe based on property and or portfolio size! Do we have such LEADERS available today?

Frankly, I have NO interest in debating this matter with anyone, especially individuals who don’t have ‘skin in the game’ as LLLCommunity owners/operators. Certain former PMs and would be journalist gadflies need not respond. And Yes, if you are a LLLCommunity owner/operator, I’d like very much to hear and read your opinions and suggestions relative to these timely and historic matters. WHY? Read the next paragraph carefully. Then reach out to me via GFA c/o Box # 47024, Indianapolis, IN. 46247 or gfa7156@aol.com, or the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

I’m not going anywhere soon! I’m healthy – following heart surgery and loss of 30 pounds. I’m happy. And I’ve recommitted myself to serving the 1) statistical Research & 2) ongoing Resource servicing, of all my land lease lifestyle community owner/operators peers throughout the U.S. and Canada! And even though I’ve been unsuccessful ‘selling off’ GFA Management, Inc., dba PMN Publishing business interests’, so I could retire, I have no immediate plans to found a new, national, not for profit trade body to supplement national Advocacy efforts of MHI’s NCC – even though that might yet prove to be the best route to take, for LLLCommunity owners/operators ‘Large & Small’. Are we clear so far? If so, Good. If not; I really don’t know how to make those points any clearer. Continuing. There has not been an open meeting of all NCC members since the ‘October 2012 ambush of two direct, dues – paying MHI members’, in San Antonio, TX.; and the next NCC meeting isn’t scheduled until MHI’s annual gathering in La Jolla this Fall (2013), and that’s still five months away. Perhaps a better way to address this ’20 year itch’, within the NCC, relating to asset class Advocacy, Research, & Resources, would be to effect a change in leadership, instead of announcing plans to waste time and resources duplicating what’s already in place, relative to Research & Resources, and working well for LLLCommunity owners/operators Large & Small, nationwide…. What do you think?

*****

George Allen, CPM & MHM
Consultant to the Factory – built Housing Industry,
The Land Lease Lifestyle Community Asset Class &
Affordable Housing Purists & Enthusiasts Nationwide

End Notes.

1. And how did the segue from mobile home park to manufactured home community come about? Simple. When textbook publisher was preparing to bring the first published work, about this unique, income – producing property type, to market (prior to 1994), it was dismayed to learn there were no fewer than three monikers afoot, around the U.S., describing this business model. So, following surveys via the now defunct Manufactured Home Merchandiser magazine, the MHIndustry, pretty much as a whole, ‘voted’ to move away from trailer court and mobile home park, to manufactured home community – though a few individuals held out for the hybrid term – manufactured housing community. And, for the next 20 or so years, ‘the rest is history’.

Blog # 245 Copyright 2013 5 May 2013

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

I.

WHAT YOU MISSED!

II.

‘More Than a Baker’s Dozen Excellent Reasons’ to Attend the 22nd Networking Roundtable in Bloomingdale, IL. @ 18 – 20 September 2013!’

III.

NOW AVAILABLE for the asking!

***

I.

WHAT YOU MISSED!

There’s a sea change a – coming to the manufactured housing industry; and for many. it’s already here!!!!!

During the past 35 years, factory – built housing has experienced emergence and maturity of its’ HUD era; period of the ‘hudulars’, a ‘land – and – home package’ hiatus; and of late, an emphasis on land lease lifestyle community (a.k.a. manufactured home community) infill! And during the same 3 ½ decades, among the estimated 50,000 LLLCommunities nationwide, we’ve witnessed three waves of realty investment consolidation, resulting in 500+/- property portfolios; and, the stark operational necessity (i.e. read ‘survival’) to sell, and often self – finance, new and resale housing transactions on – site, to maintain rental homesite occupancy. Furthermore, we now find ourselves in the midst of an unprecedented period of federally and state – mandated compliance with pervasive housing finance regulations pertaining to chattel (personal property) capital lending.

This regulatory sea change has to do with one’s familiarity and compliance with the S.A.F.E. Act; and, Consumer Finance Protection Bureau or CFPB rules and regulations pertaining to the Red Flag Rule, Safeguard Rule, Disposal Act, the Patriot Act, OFAC, Anti – Money Laundering, EEOC, FACTA, TILA, ECOA, RESPA, MDIA, FCRA, Debt Collection & Servicing, Privacy, UDAA, Escrow funds, Risk Based Pricing, Leasing, HOePA, and more.

So, ‘WHAT DID YOU MISS this past week?’ Independent (street) MHRetailers and land lease lifestyle community owners/operators, who routinely sell homes on – site in 20 or more states, convened in Davenport, Iowa, for the 2nd National Retailer Summit. This seminal biennial event, planned and hosted by consultant Bill Carr, is a valuable service to the manufactured housing industry and LLLCommunity asset class at large! No one else, corporate or trade association – wise, comes close to providing an opportunity and venue, for these two disparate – yet – now – linked – thru – diversity segments of the HUD – Code manufactured housing industry; to caucus and share Lessons Learned regarding the nature of various financing business models; and, how to be fully compliant with the plethora of state and federal regulations pertaining to chattel finance of new and resale manufactured homes. To maybe secure an ‘invite’ to the 3rd National Retailer Summit, phone (800) 336-0339 and talk to Bill Carr. He was assisted during this National Retailer Summit by Ken & Donna Rishel of Rishel Consulting, and yours truly. Speaking of the Rishels. If you haven’t participated in one of their chattel finance workshops, you should. Find out more by phoning (217) 971-3968.

What was covered? Well, for a complete summary, you’ll have to read the June issue of the Allen Letter professional journal. Phone the MHIndustry’s HOTLINE: (877) MFD-HSNG or 633-4764 to subscribe @ only $134.95/year for 12 monthly issues.

In the meantime, here’s a brief overview of major topics covered during the 2nd National Retailer Summit:

• Identification & review of 18 distinct, but appropriate, financing business models

• Use of Sales Transaction Analysis Forms to document & articulate profitability

• Review of all the aforementioned federal regulations under the CFPB’s authority

• Captive Finance as alternative to traditional independent retail financing of homes

• Introduction to Private Investor Financing of manufactured homes in communities

• Role of matrix and underwriting guidelines to guide one’s home financing efforts

• Review of differing perspectives between MHRetailers & LLLCommunity owners, relative to ‘making $ deals now’ mentality vs. ‘annuity income over time’

How can YOU afford NOT to have been present at such a valuable Open Discussion Learning Opportunity? Hopefully we’ll see you at the next go – round, probably in late October or early November this Fall.

A personal pique, is that NO national MHIndustry advocacy body to date, offers this sort of Open Forum, to and for members, whereby timely and needed practical guidance – in this instance, regarding chattel finance regulatory compliance, is shared! GFA

II.

‘More than A Baker’s Dozen of Excellent Reasons’ to Attend the 22nd Networking Roundtable in Bloomingdale, IL @ 18-20 September 2013!

Here’re Reasons Why Land Lease Lifestyle Community Owners/operators Regard the Annual Networking Roundtable to be the Asset Class’ Preeminent Educational, Interpersonal Networking, & Deal – making Event…

• 20+ contemporary topic & panel presentations in two days; Yes, 20+!

• Maximum interpersonal networking during nine social & meal events

• An Investor’s Symposium for would – be buyers of LLLCommunities

• Inspect & order new Community Series Homes from those exhibited

• Best Deal – making Opportunities ever, for LLLCommunity owners

• Experience a mix of old (circa 2001) & new asset class traditions….

• Learn the key role of our RV/MH Hall of Fame, museum & library

• Learn to create your Brand Marketing Platform, using social media

• Receive 3 new plastic Training Aid cards: ‘5RPs @ Marketing-Sales’

• Meet& Learn from a dozen or more real estate mortgage originators!

• Be exposed to every form of public & private chattel capital finance!

• Consider RV business and sites, to diversity your business model

• Meet Green Hill Financial, Corporate Shield, & other new $ players!

• Time for a Chattel Capital Fund ‘by & for’ LLLCommunity owners?

The brochures for the 22nd annual International Networking Roundtable will initially be distributed with the June 2013 issue of the Allen Letter professional journal, and will also be available on the website: community-investor.com OR, phone the above – referenced MHIndustry’s HOTLINE!

Remember; 18 – 20 September 2013, in Bloomingdale, IL. See you there!

III.

NOW AVAILABLE for the asking!

Land Lease Lifestyle Community’s Official Industry Standard Chart of (Operating Expense) Accounts
&
Operating Expense Ratios, or OERs!

Veteran LLLCommunity owners/operators have been using the 1992 era Official Industry Standard Chart of (Operating Expense) Accounts, and accompanying Operating Expense Ratios or OERs, for decades. Well, with recent input from ARA MHC Group, a Denver, Colorado – based real estate brokerage specializing in this realty asset class, we’ve recently updated the helpful chart, finally dropping references to the Texas A & M data, and Horner group information, and adding ‘stats’ provided by ARA MHC Group.

Blank column space has been left on the recently revised chart, to facilitate adding even more OER data, hopefully from one or another of the national real estate brokerages also specializing in marketing LLLCommunities nationwide. Anyone listening out there?

Want a FREE copy of this recently revised Official Industry Standard Chart of Accounts & OERs? Simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or633-4764 and ask for it. Copies are also being distributed, as lagniappes, with the May issue of the Allen Letter professional journal.

***

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