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

Blog # 213 Copyright 2012 30 September 2012

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

I.

MHIndustry Leaders! Where Will YOU Take Us in 2013?????

II.

An Exciting New Manufactured Housing Show Concept for HUD – Code Manufacturers & LLLCommunity Owners Nationwide!

***

I.

MHIndustry Leaders! Where Will YOU Take Us in 2013?????

How’s the old bromide go? ‘Lead, Follow, or Get the Heck Out of the Way!’ Yep; that’s the one I think rightly sets the stage for the upcoming Manufactured Housing Institute annual meeting in San Antonio, TX., from 7 – 9 October 2012. Will YOU be attending? If you’re a direct, dues – paying member of MHI, and or its’ National Communities Council division, you should be! Carolyn and I certainly plan to be there. For information, phone Dick Jennison @ (703) 558-0678 or Jenny Hodge @ (703) 558-0666.

Why the push to participate? In our case, we’ve been hearing from manufactured housing aficionados and land lease lifestyle community owners/operators, across the U.S., and via the Allen Letter professional journal, that the HUD – Code manufactured housing industry has reached a ‘tipping point’. Not for the first time in our industry’s 60 year history, but certainly for the first time in awhile. Land lease lifestyle community folk, (then) manufactured home community ‘players’, experienced a tipping point on 2/27/2008, when the first National State of the Asset Class caucus (Since retitled as MHInitiative®) convened in Tampa, FL., and 100 owners/operators charted their collective business destiny via a Five Point Plan that’s still in place to this day! And a year later, 2/27/2009, another 100 MHIndustry & LLLCommunity owners convened for a one day NSAC caucus in Elkhart, IN.; this time around, to figure out ‘How to Sell More HUD – Code Homes into (then) Manufactured Home Communities!’ Now we’re looking at year 2013, coming up in a scant three months. The tipping point this time around?

– Either we finally and authoritatively seize control of our collective business present and future, relative to (affordable housing) Product, (home buying & site leasing) Prospects, and (increasingly regulated financial) Profit; OR, we continue to experience the 60 year shipment nadir endured these past ten years! – It’s as simple as that. Which will it be? A new & bold Plan, Rebranding or What?

Land lease lifestyle community owners/operators already lead the way, when it comes to flexibility and creativity; doing whatever it takes, to fill an estimated 250,000 vacant rental homesites nationwide! They’re buying and reselling, even self – financing (via contract sales, captive finance, & lease option), and lately even leasing, ‘repo’, new and resale manufactured homes, two story modular homes, ‘park model RVs’, RVs for a season, even stick – built homes fabricated on – site to mimic HUD – Code homes! And they’ve even gone a ‘big step further’, by rebranding their unique, income – producing property type as land lease lifestyle communities, or LLLCommunities, for short.

Some HUD – Code home manufacturers are attempting, at least in part, to follow their lead (i.e. Where’s today’s manufactured housing market? In land lease lifestyle communities where owners/operators market ‘affordable’ Community Series Homes or CSH models, to traditional markets of those ‘newly wed & nearly dead’, using whatever home finance models that work in their respective market, e.g. 21st Mortgage Corporation’s exciting C.A.S.H. Program, and others!), but they’ve a long long way to go. For example:

– HUD – Code home manufacturers have CSH model home designs in hand, but still exhibit ‘big box = big bucks’ Developer Series Homes in plant and regional home shows. Why? They build what they want, NOT what customers will buy!

– HUD – Code home manufacturers now invite land lease lifestyle community owners/operators to plant shows, to see and buy new product. But again; only 10 percent of the display homes are CSH models with durability enhancing features.

– A couple HUD – Code home manufacturers have prepared & distributed Position Papers, describing their firm’s view of contemporary MHIndustry trends, and how they’re addressing CSH model opportunities. Think Cavco & Champion. Others?

– At the 2nd NSAC caucus, 2/27/2009, nearly three dozen Business Development Managers or BDMs were named. How many are active today? Only a dozen, when there’re home sales opportunities for dozens, selling into LLLCommunities.

And there’re initiatives occurring within other segments of the MHIndustry. For example:

– Renewed interest in the 3:1 Rule of Thumb, designed to ensure land lease lifestyle community rental homesite rents are in sync with other forms of multifamily leased housing in the same local housing market. Specifically; it takes the monthly rent from three LLLCommunity sites to equal monthly rent generated by one large (3BR2B) apartment or town house in the same locale.

– Increasing commitment, on part of LLLCommunity owners/operators and independent chattel lenders, to NOT sell more house, to a prospective homebuyer, than they can afford. How to effect this? Ensure monthly PITI (principal, interest, taxes & insurance premium) AND household utility bills (gas, electric, water, sewer) are included in the 30% Housing Expense Factor

Back to the upcoming MHI annual meeting! What needs to be done to address the aforementioned ‘tipping points’ for the manufactured housing industry and land lease lifestyle community asset class? Well, it’s doubtful much progress will be made at just one meeting – especially since there’s been, as of 30 September, NO preparatory material distributed to members – not even a formal solicitation of agenda recommendations for various industry segment meetings, readying ‘us’ for heady discussions. So, heeding the suggestion made in blog posting # 211, on 9 September, our elected and salaried national leaders might consider forming an all volunteer (Not appointee!) Blue Ribbon Task Force, comprised of one or two dozen businessmen and women, from large and small firms, from throughout the U.S., and across industry segment lines, to identify and address our industry/asset class’ most troubling issues, e.g. lack of a secondary manufactured housing sales market, lack of chattel loan programs, lack of manufacturer interest in building affordable homes, ‘Just what is an affordable home?’, etc..

II.

An Exciting New Manufactured Housing Show Concept for HUD – Code Manufacturers & LLLCommunity Owners Nationwide!

Coming off the ‘biggest & best Networking Roundtable’ in 21 years; then two weeks later, being a guest at the ‘2012 Knoxville Showcase of (19 new HUD – Code units) Homes, Clayton County Fair’, has been something of a sensory overload. Perhaps those two stellar industry events combined to inspire this preliminary plan for the Fall of 2013…

At a hotel location yet to be decided, but maybe in Nashville, TN., or Detroit, MI., or – where would you like to see it held? Just remember; the resort hotel has to be within a half hour drive of a major international airport, able to accommodate more than 250 overnight guests, and have plenty of meeting space for that number.

The exciting new manufactured housing event for HUD – Code manufacturers and land lease lifestyle community owners/operators? How ‘bout this:

‘22nd Networking Roundtable & 1st Community Series Home Show!’

I don’t see much, if any change, to the 2 ½ day education, networking, and deal – making program we’ve honed these past 21 years. What I do envision, however, is a new CSH model home display, of one or two dozen new CSH model homes, located right outside the meeting room exit, that’ll be in place two days before the Networking Roundtable event actually begins, and heavily marketed to LLLCommunity owners/operators in local housing markets within 100 miles of the host meeting facility. And of course, Roundtable devotees would be encouraged to arrive at least a day early for that event, to spend time ‘walking (and ordering) the homes’. An added feature would be morning and afternoon seminars describing ‘How to Effectively Sell New Homes into Land Lease Lifestyle Communities’ &/or ‘How to Self – finance, Lease – option, and or Lease New Homes in Your LLLCommunity’. What do you think?

As I said earlier, these are all preliminary plans. But I’m serious about them, having already contacted a couple resort hotels with large parking (potential exhibit areas) adjacent to their meeting facilities. And if you have suggestions to make, to this end, let me know via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Some of you are probably reading this and thinking: ‘Hmm. Doesn’t read like a guy who’s trying or planning to semi – retire in the relatively near future.’ You’re right; but the way I look at it, why not get this ball rolling, to establish a new and exciting, expanded event (i.e. addition to the annual Networking Roundtable). Then, if it appears I’ll be handing the 22nd annual event off to someone else, I’ll still be around to assist; and if still no personal ‘exit strategy’ is in place by then; well, we’ll have another bang – up time together, like we just did in San Diego, CA.. Reads like a WIN – WIN opportunity for HUD Code home manufacturers and land lease lifestyle community folk either way! Are you on board?

***

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 # 212 Copyright 2012 23 September 2012

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

I.

‘Book of Numbers’ debuts @ Networking Roundtable. Want a copy for your reference & use? Only $19.95 each

II.

Showdown or Business as Usual at MHI’s National Communities Council division Meeting on 8 October?

I.

‘Book of Numbers’ debuts @ Networking Roundtable. Want a copy for your reference & use? Only $19.95 each.

‘Book of Formulae, Rules of Thumb, & Helpful Measures’, mostly for land lease lifestyle communities & HUD – Code manufactured housing, as well as commercial real estate investment, affordable housing, and realty – secured mortgage origination. Yep, that’s the long title for this 78 page ‘first ever’ compilation of most, if not all, the formulae, rules of thumb, and measures common to our realty asset class, housing type, investment environment, and mortgage scene. In addition, the Official MHIndustry & LLLCommunity Lexicon & Glossary have been appended to the text proper.

So, if you’d like to purchase one or more copy for your reference and use; or for that matter, all your on – site property managers, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Retail price is only $19.95 plus shipping cost. And a quantity discount is available for when purchasing 20 or more copies of this book at a time; with book price dropping to $10.00 per copy, plus bulk shipping cost. Already, 250 copies were distributed at the aforementioned Networking Roundtable, and more than six dozen since then, to property portfolio owners/operators wanting the ‘book of numbers’ in the hands of their regional and on – site property management staff. How ‘bout YOU?

II.

Showdown or Business as Usual at MHI’s National Communities Council division Meeting on 8 October in San Antonio, TX? ‘Come on down & meet Jenny Hodge!’

A year ago this coming February, at MHI’s annual Legislative Conference, when the National Communities Council division last met, members in attendance were assured the there’d be more done, by the NCC during 2012, to ‘reach out’ to small to mid – sized ‘players’ throughout the realty asset class in the U.S. However, that doesn’t seem to have been what’s happened – and probably for arguably good reason.

To begin with, the salaried executive assigned to oversee the NCC division at the time, went on maternity leave. Shortly thereafter, a firm founded by former MHI executive Bruce Savage, was contracted to function, in part, as the institute’s communications consultant, and interim oversight of the NCC division. Well just recently, former American Modern Insurance middle level executive, Jenny Hodge, was hired to head the NCC fulltime! This makes for three execs during the past 12 months; or looking back over the nearly 17 years of council presence, a total of six execs and a year or so leaderless hiatus, during that overall time frame.

So, ‘what’s the rub’ regarding small to mid – sized owners/operators and portfolios of land lease lifestyle communities in the U.S.? Well, an estimated 85 percent of 50,000+/- LLLCommunities contain 100 and fewer rental homesites apiece. So it stands to reason that ‘a’, if not ‘the’, prime focus of the NCC division, founded 1 January 1996, should be recruiting small to mid – sized owners of these properties. As it stands today, however, all elected offices of the NCC are held by salaried executives from three of the eight largest (As listed in the 23rd ALLEN REPORT) LLLCommunity portfolio owners/operators in North America. In and of itself, there’s nothing wrong with this ‘state of affairs’; BUT, what is being done to bring more small to mid – sized owners/operators of the unique, income – producing property type into the national advocacy fold? Interestingly, at the last NCC division meeting, of the dozen or so direct dues – paying members present, all but one or two of the non – officers present, were small to mid – sized property owners/operators. Know what? If the NCC division was truly active and engaged, relative to asset class issues and the like, there’d likely be double and triple that number of members present at these biannual meetings!

Earlier this year, an informal alternative slate of officers was drawn up and considered to run against the sitting elected NCC officers. Effective with the posting of this blog, that’s unlikely to happen, unless yet another group of NCC members decides to make such a push. Why the pulling back? Call it ‘one last chance’ for present elected NCC officers to get it right, especially now that an MHIndustry – experienced executive is on board who has the ability to ‘get things (finally) done’. But what happens if year 2013 turns out to be continued inaction’? Well, here’s a bit of irony that’ll become crystal clear more than half way through the year. For it was on 31 August 1993, 20 years ago, the Industry Steering Committee (predecessor to MHI’s NCC division) met in Indianapolis, IN., to lay the groundwork for a formal national advocacy presence that’d be needed a year or two later, when several large (then) manufactured home community portfolios would launch IPOs (‘initial public offerings’ of their stock) to become real estate investment trusts (REITs). As it turned out, the REITs materialized in 1994 & 1995, and the NCC was launched 1 January 1996.

Today, there’re but three REITs left, as three others have ‘come and gone’. Some or many of us believe the time has come for the NCC division to reinvent itself. Hence the reason for a push to attract and serve more of the ‘85 percenters’ (i.e. LLLCommunities numbering 100 and fewer rental homesites apiece), than we have in past years. In the meantime, back to a little more NCC history….

For the first several years, ‘there was a lot going on’, and a lot of enthusiasm, in and around the NCC – though not yet a full fledged division of MHI. We started and funded a property excellence recognition program, but for all practical purposes it ended. We tried to launch a new LLLCommunity quality rating system, to replace the Woodall STAR System that died in 1976, but it, the ABClassification system, was politicized, and is today, a private enterprise effort,

And as our housing finance bubble burst at the turn of the century, a full eight years before site – building followed suit, NCC momentum waned. Tri – annual meetings that attracted 40 – 50 participants and observers, today attract half that number. New projects, forums, and the like? If of interest to large property portfolio owners/operators, initiatives are funded and launched. But, when was the last time we sat down together to parse, discuss, and seek solutions to widespread challenges to our asset class? I can’t recall. One example; ‘lack of a secondary housing sales market’, to this day, and why/how said absence stifles our ability to sell and site new homes in our LLLCommunities! At the 21st annual Networking Roundtable, in San Diego, two weeks ago, this was the very issue that concluded that event. About 50 of us sat informally together in the main conference room, and talked frankly about the crazy ways we value our homes, mixed success at launching multilisting services, the need for licensing, and escrow closings. Know what? It was all for naught; as there was no one present from either of the national advocacy bodies (where this sort of discussion belongs), and no one present at the meeting to ‘lead us forward’ to solve that perennial and strategic problem. Could be the NCC division though….

So, look for year 2013 to be a pivotal one in the almost two decade history of MHI’s National Communities Council division; but in the meantime, at the NCC division’s meeting during MHI’s annual meeting in early October, what might well be on the minds of council members gathered for the event….

***
George Allen, CPM & MHM
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 # 2011 Copyright 2012 9 September 2012

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

I.

HB3849 & SB3484 Won’t ‘Fix’ the MHBusiness Model, but….

II.

List of 25 Most Influential Persons in Manufactured Housing & the Land Lease Lifestyle Community Asset Class almost complete!

III.

Mark Your Calendar with these Dates Now! The MHIndustry & LLLCommunity Businesses of Today will be Different Tomorrow!

I.

HB3849 & SB3484 Won’t ‘Fix’ the MHBusiness Model, but…

House Bill # 3849 & Senate Bill # 3484 won’t ‘fix’ the MHBusiness Model; but portions thereof, address two mortgage finance regulations being developed by the Consumer Financial Protection Bureau (‘CFPB’), as required by the Dodd – Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203). Two regulations potentially impacting HUD – Code manufactured housing industry’s ability to provide truly affordable financing options to low and moderate income individuals and families desiring to purchase our unique, transportable, quality, ‘green’, non – subsidized housing product.

In the first instance, this legislation proposes a reduction in the threshold by which small balance manufactured home personal property (‘chattel’) loans are considered ‘High – Cost Mortgage Loans’ (‘HCML’). A HCML is considered to be a predatory loan, when the annual percentage rate (‘APR’) of the loan, is considered high, compared to Government Sponsored Enterprise – subsidized rates (a.k.a. GSE – subsidized rates), or exceeds points and fees thresholds. Note. Manufactured home loans are susceptible to such categorization, given their generally smaller size and lack of a secondary (housing sales) market. Furthermore, owners of small land lease lifestyle communities (a.k.a. manufactured home communities, and before that, ‘mobile home parks’) who finance such home sales are particularly at risk if this change is not effected. Probable result if not passed? Most LLLCommunity owners would likely cease lending to the very citizenry who need such financial help the most, but are least likely to receive it from local housing market lending institutions! Signs of such retrenchment already abound, among property owners/operators who’ve already started leasing their owned homes on – site, rather than risk ‘carrying paper’ – at least for the time being.

In the second instance, this proposed legislation clarifies those selling manufactured homes, NOT otherwise engaged in the business of mortgage origination, will NOT be considered mortgage originators under the federal S.A.F.E. Act (i.e. Safe And Fair Enforcement of Mortgage Licensure). And for land lease lifestyle community owners, who finance but a limited number of manufactured home sales each year, this provision would reinforce any given state’s ability to provide such exemption.

But know what? These two proposed legislative provisions, in HB # 3849 & SB # 3484, otherwise, have little effect on the flawed Business Model now practiced throughout the HUD – Code manufactured housing industry. A weekly blog posting is neither the time or place to dig into such a serious and perennial matter, in any detail. The responsibility for implementing and engaging in such a momentous, and potentially controversial, undertaking – in this veteran industry observer’s opinion – lies with one or another of the two national advocacy bodies ostensibly representing manufactured housing’s business interests in the nation’s capitol. In the meantime, here’s a partial list of the flaws that should be addressed, IF and WHEN a Blue Ribbon Task Force, comprised of businessmen and women from all segments of the industry and realty asset class, convenes:

• Lack of a secondary manufactured housing sales market in every local housing market; one to be characterized, in part and in time, by housing valuations based on market sales comparables; a functioning, realty type, multilisting service; escrow ‘closings’; training and licensing of housing sales personnel; and more…

• Lack of chattel loan programs within practical reach of the manufactured housing industry’s characteristically low – to – moderate income customer base

• Lack of willingness, by manufactured housing marketers, sales persons, and mortgage originators, to sell homes and effect loans, only when mortgage principal, interest, taxes, insurance, AND household utility expenses (a.k.a. PITI & utilities $) are all included within the widely – accepted 30% Housing Expense Factor (‘HEF’) measure of affordable housing! Until such time, we’ll continue to ‘sell & mortgage more house than our typical homebuyer can afford’, effectively saddling them with 40 –50% HEF burdens (i.e. 40 – 50% of their annual income going for housing costs alone!) when they pay their household utility expenses in addition to the 30% HEF that contains just PITI factors.

• Lack of sensitivity, on the part of some land lease lifestyle community owners/operators, to keep rental homesite rent rates in sync with other forms of multifamily rental housing in the same local housing market. There are various ways to do this, including the long known (Since mid – 1970s) and applied 3:1 Rule, where on – site homesite rental rates are approximately 1/3rd that of the largest 3BR2B conventional apartment or townhouse leased in the same local housing market.

This short list merely brushes the rough surface of Business Model issues deserving investigation and an airing, by a Blue Ribbon Task Force. Again, such an investigative and resolution – seeking body might be appointed by one or another of the two national advocacy bodies claiming representation responsibility for one or more function segments comprising the HUD – Code manufactured housing industry and its’ realty component, the land lease lifestyle community asset class.

Better yet, open participation on the Blue Ribbon Task Force to anyone in the MHIndustry & LLLCommunity asset class willing to pay his or her own way, and willing to commit to attend all the task force sessions.

II.

List of 25 Most Influential Persons in Manufactured Housing & the Land Lease Lifestyle Community Asset Class almost complete!

Yep; I’ve been surprised and pleased at the strong and continuing responses to the request first made, at this web site and blog, weeks ago, for input to this first time ever List of 25 Most Influential Persons in Manufactured Housing & the LLLCommunity Asset Class! Where are we today? To date, 23 names are in play. And there’s still time to add more recommendation(s) to the list. Simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to tell me, or FAX it to (317) 346-7158.

The final and very public List of 25 Most Influential Persons in Manufactured Housing & the LLLCommunity Asset Class will be published as part of the 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Lifestyle Community Portfolio Owners/operators Throughout North America!’), distributed as a lagniappe in the January 2013 issue of the Allen Letter professional journal. Are you presently a subscriber to this monthly MHIndustry & LLLCommunity newsletter? If not, phone (317) 346-7156 to do so. Subscription is only $134.95/year – and, for the time being, includes the aforementioned ALLEN REPORT at no extra cost.

Speaking of the ALLEN REPORT. The annual letter and questionnaire, to LLLCommunity portfolio owners/operators, soliciting property portfolio size and statistical benchmark information (e.g. occupancy, OER, etc.), is ‘in the mail’, and deadline for returning completed questionnaires to PMN Publishing, is 30 September 2012. These too can be faxed to (317) 346-7158. If you own and or fee manage five or more LLLCommunities, and or 500+ rental homesites (even if in just one LLLCommunity) you’re eligible to be included in this 24 year Who’s Who of our unique realty asset class. Do not be left out! To request a letter and questionnaire, phone (317) 346-7156.

III.

Mark Your Calendar with these Dates Now! The MHIndustry & LLLCommunity Businesses of Today will be Different Tomorrow!

Read this carefully. Starting two weeks ago, a handful of land lease lifestyle community owners in Georgia clearly demonstrated what can be done, in behalf of peers in the manufactured housing industry, to bring education, networking, and more, to their regional housing market! If you missed that watershed event, attended by 142 businessmen and women, read about it in last week’s blog posting at this website (Scroll back into the archives to blog # 210) and visit www.seco12.org for several of the Power Point presentations shared at that symposium. This is where things began to….

This week, 12 – 14 September, in San Diego, CA., 200 land lease lifestyle community owners/operators, and their favorite realty – secured mortgage originators will convene for the most educational seminars and panels (at least 22), intense interpersonal networking (at eight social – meal events), and unparalleled deal – making opportunities available anywhere, anytime, in the manufactured housing industry. This is the 21st consecutive year this segment of the MHIndustry has met; and indirectly, been responsible for eventual founding of MHI’s National Communities Council division, professional property management training and certification (i.e. MHM®), and the research and publication of at least a half dozen HOW TO texts, covering the development, investment in, and management of LLLCommunities. And here too, things will likely continue to…

From 7 – 9 October 2012, the Manufactured Housing Institute (‘MHI’) will host its’ annual meeting in San Antonio, TX. And it’s National Communities Council division, under the new institute executive leadership of Jenny Hodge, VP, will also convene. If you’re a direct member of MHI and or the NCC, you owe it to yourself to be present for the proceedings. For information, contact Bruce Savage, via (703) 558-0666. Who knows, something downright exciting might be in the offing, this time around…

Enjoy November and December with your employees and families, celebrating Fall and the Holiday season! Catch your business planning breath before the new year begins…

Then, as the New Year dawns, so does the 2013 round of manufactured housing shows, beginning with the Louisville MHShow (previously, the Midwest Manufactured Housing Show), from 23 – 25 January in, ‘you guessed it’, Louisville, KY. What many of us LLLCommunity owners/operators are watching for this year, is to see how many HUD – Code home manufacturers ‘have finally gotten the word’ that new home sales = placements in land lease lifestyle communities! The last two years, that wasn’t the case, with hardly a presence of any Community Series Homes or CSH models. Hopefully, this year will be different. Want more info on the Louisville MHShow? Phone _________________

MHI will hold its’ annual Legislative Conference in Arlington, VA., @ 24 – 26 February 2013. Should be interesting to observe, by then, what (if anything) has happened in the interim, between aforesaid annual meeting and this one, nearly five months later. What do you think will be the case? Guess it depends on ‘what’ happens (if anything) during and after the annual meeting in TX. Maybe a Blue Ribbon Task Force? Or how ‘bout a paradigm shift of sorts? In any event, if a direct member of the NCC division, it’ll be a good idea to be present this time around. For event and membership information, phone Jenny Hodge @ (703) 558-0666. Tell her, ‘George sent me!’

27 February 2013. Manufactured Housing Manager® professional property management training and certification class scheduled for Tulsa, OK., the day before the Great Southwest MHShow begins. There’re nearly 1,000 MHM®s designated to date, most of whom own and or operate land lease lifestyle communities throughout the U.S. and Canada. Are YOU one of them? If not, phone (405) 634-5050.

28 February – 3 March. The Great Southwest Manufactured Home Show takes place in Tulsa, OK. This year promises to be ‘bigger and better’ than the one in 2012. And the program is designed to ‘keep MHRetailers and LLLCommunity folk on the show floor buying homes’. BUT, there’ll also be opportunity to learn firsthand, the ‘State of the Manufactured Housing Industry & the Land Lease Lifestyle Community Asset Class’, as well as valuable pointers regarding how to get into and remain ‘in compliance’ with the plethora of federal and state financial regulations now plaguing the industry and property type. For information, phone(405) 634-5050.

A postscript of sorts. Know what a widely known and well – regarded MHIndustry businessman, of many years experience, has to say about the preceding ‘hinted about’ matters this Fall? His comments were received shortly after the suggestion was made, in a recent blog posting at this website, for a new MHInitiative® (formerly, National State of the Asset Class caucuses per 2/27/2008 & 2/27/2009)

“…if MHI doesn’t ‘take the bait’ in October, or indicate solid interest in doing so during their annual Legislative Conference in February, just ‘days before the Great Southwestern MHShow’, then ‘Why Not Do So There?’ Don’t know ‘bout you, but I get so tired of all this posturing, when we should be seizing the initiative and, in so far as possible, (plan and) shape our own collective (business) future!”

So, it isn’t just me out there encouraging our two national advocacy bodies to take ownership and leadership of the future of manufactured housing (Maybe it’s time to come up with another name ‘for what we do’) in the U.S.. And know what? While land lease lifestyle community ‘might be cutting edge terminology for the asset class, there’s still much work to be done, there too, regarding how we do – and don’t do business, e.g. lack of professional property management training and certification of on – site and regional managers, for starters; not to mention the uneven rental homesite rent rates mentioned earlier.

Ah, should make for an interesting Fall meeting season ahead of us. Let’s just hope our salaried and elected leaders don’t let us fall further behind in new home shipments, reputation with consumers, and housing finance.

*****

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 # 210 Copyright 2012 2 September 2012

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

I.

SECO, a Stunning Success for Southeast LLLCommunity Owners!

II.

Land Lease Lifestyle Community Operations Typified by Property Management, Resident Relations, Homesite Rental & Home Sales!

III.

National Advocacy, CSH Model Homes, C.A.S.H., & Rebranding!

***

I.

SECO, a Stunning Success for Southeast LLLCommunity Owners!

A day long symposium for land lease lifestyle community owners/operators, solely planned, hosted, and led by lifestyle community owners/operators! In this veteran industry observer’s recollection, this SECO symposium marks the first time in manufactured housing history, a major U.S. regional educational and networking event, was effected without direct support from any state or national MHIndustry trade and advocacy association or institute – though the former participated; and the latter was invited – but did not show as a sign of support or to recruit new direct members for its’ LLLCommunity council.

Was the 8/29 SECO symposium, in Atlanta, a success? As is oft heard in victorious, bellicose moments of celebration: “Damn straight it was!” How so? Anytime you get 142 land lease lifestyle community owners/operators together for a day of superb education, via skilled presenters and insightful panels, you’ve got a major networking event on your hands – and that’s what happened here. LLLCommunity aficionados, even though this was a Southeast U.S. regional event, came in from CA, the Midwest, FL, and NY, to participate.

What was covered? Lease option & investor financing of home sale transactions; ‘captive finance’ & related regulatory compliance issues; marketing of LLLCommunities ‘for sale’; 21st Mortgage’s exciting C.A.S.H. Program (more about that later); ins & outs of ‘renting’ manufactured homes on – site; selling to the Hispanic market; off grid homes & marketing to ‘boomers’; how to collect 100% of your site rent; and much more! Watch upcoming issues of the Allen Letter professional journal for more information on some of these subjects, as well as this weekly blog posting. Now, aren’t you sorry you didn’t take my advice and attend? Well, guess what, some of these same presenters will be covering similar topics at the upcoming 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September. Are YOU registered yet? 200+/- of your peers already are – and the number is climbing. If you’re a LLLCommunity owner/operators, how can you afford NOT to be present at this once a year educational, networking, and deal – making event? For more information, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. There’s also a brochure, for the event, elsewhere on this website.

So, what else did you miss, by not being present at this historic SECO Symposium event? For me, just being able to pick up product and service literature, from sponsor tables manned by HUD Code home manufacturers, chattel finance lenders, consultant Michael Power, and insurance brokers, was a ‘resource treat’. And seeing Spencer Roane, of Pentagon Properties, honored by the Georgia Manufactured Housing Association, for his PEERSEVERANCE on their behalf, was a privilege. Now, for the time being, let’s hope these Southeast U.S. LLLCommunity owners/operators, again next year – or before, decide to treat their region to yet another superb educational, networking event like this! For more information, contact Chris Nicely via (865) 385-9675 & chrisnicely@gmail.com

II.

Land Lease Lifestyle Community Operations Typified by Property Management, Resident Relations, Homesite Rental & Home Sales!

“OK George Allen, we need you to summarize the basics of land lease lifestyle community operations into a 15 minute talk you’ll share with five different groups of eight LLLCommunity owners/operators, during roundtable presentations following the SECO Symposium luncheon.” That was the assignment; here’s the result:

• Basic Management. Start with 5 – Ms of Management (i.e. manpower, machinery, material, methods & money), ensuring coverage of any management challenge. Use a Problem – solving Procedure to work through various challenges (Ask for free Management Wisdom card when phoning the aforementioned MHIndustry HOTLINE). Keep ‘helps’ in mind, e.g. KISS = ‘Keep It Simple Stupid – or Sweetheart!’ & Tom Peters’ famous MBWA = ‘Management by walking around!’ (How oft are YOU out in your property assessing what needs to be done, then ensuring it gets done?!).

• Resident Relations. Veteran, successful property managers (a.k.a. ‘PM’s) know good Resident Relations = more Resident Referrals = maximum Resident Retention! Gotta confrontation issue? First, everyone sits (i.e. Eliminates ‘fight’ & ‘flight’ options); then, HEAT, where H = hear both sides of the story; E = empathize, where possible, with offending party; A = ‘apologize’ or request same, as appropriate; and T = take Action!

• Marketing Homesites. Start with the 5 – Ps of Marketing, where Product = rental homesites & property amenities; Place = property location re jobs, schools, shopping, recreation; Price = competitive site rent rate per 3:1 Rule, where LLLCommunity site rent is, or should be, 1/3rd of 3BR2B conventional apartment rent; Promotion = via print & online emphasis of USP (Unique Selling Proposition), signage & referrals; People = use SUCCESS Triangle to screen, considering ‘skills/training’ on one side, ‘experience’ on the other side, and all important base, comprised of ‘high motivation’ & ‘right attitude’ for job at hand!

• Marketing Homes. Again, use 5 – Ps of Marketing; here Product = right models for local housing market; Place = rental homesite size, configuration & placement; Price = decide to market new and resale housing Price Points ‘affordable’ or ‘risky’ for the homebuyer/site lessee – use ‘Ah Ha! & Uh Oh! Worksheet’ – free via aforementioned MHIndustry HOTLINE; Promotion = via print & online message, Open House, Guest House, etc.; People = same SUCCESS Triangle, plus ensuring there’s enough sales potential on – site to justify full or part time – manned Sales Center.

Again, some of the handout material distributed during these eight 15 minute talks, is available at no charge to blog floggers (readers). Simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and ask for the specific training aids.

III.

National Advocacy, CSH Model Homes, C.A.S.H., & Rebranding!

My final assignment, at this year’s historic SECO Symposium, was to conclude the day with as many positive indicators of HUD – Code manufactured housing industry renewal or rebirth, as possible. Here’re the points shared with this audience of land lease lifestyle community owners/operators:

• National advocacy at the Manufactured Housing Institute. First off, every manufactured housing businessman and woman needs to be supportive of MHI’s efforts to seek passage of HB3849 and SB 3484. Thanks to hard work and advocacy by MHI Treasurer Nathan Smith, PHC, and others, these two similar bills contain components relative to the S.A.F.E. & Dodd – Frank Acts; specifically, certain exclusions for MHRetail salespersons, and some amelioration regarding predatory lending. Also watch for a new paradigm to maybe emerge at the institute’s annual meeting in October. Why no comment on the ‘slight increase’ in new home shipments year to date? Until chattel finance returns (Read paragraph to follow), I don’t see the small YTD up tick in home shipments as any more significant, or lasting, than the so – called (hurricane) Katrina Factor of a few years ago. Perhaps history will prove me wrong; and if so, Good for Us!

• HUD – Code home manufacturers becoming more enlightened on two fronts: home design & ‘affordability’. In the first instance, more home manufacturers are endeavoring to sell more new homes, of Community Series Home (‘CSH’) design, into land lease lifestyle communities, using Business Development Managers (‘BDM’) assigned to this target market. AND, a real surprise, has been the near epiphany, on the part of some manufacturers and MHRetailers, as to how new home Price Points are indeed, either ‘affordable’ OR ‘risky’ for would be home buyers! Why is this such a surprise? Because heretofore – and in most cases continuing today, we – as an industry, sell and mortgage new homes, whereby conventional wisdom’s ‘30% Housing Expense Factor’, or HEF, is comprised solely of loan principal, interest, taxes & insurance or PITI – but NOT including household expenses (e.g. electric, water/sewer & heating fuel). Bottom line: When household expenses are paid outside (i.e. ‘in addition to’) aforesaid 30% HEF, homeowner’s total HEF winds up being a burdensome 40 & 50% (of their annual income), hence ‘risky’! But when the same household expenses are factored ‘into’ said 30% HEF, the homeowner can not buy as much house as before, but now lives ‘affordably’, and is far less likely to abandon their home (an built up equity) at the first sign of economic hardship. Some of us have waited decades for this reality check to move front and center stage! Let’s hope this ‘affordable’ (vs. ‘risky’) approach to selling and mortgaging HUD – Code manufactured homes trickles down to all the new and resale home transactions we effect!

• Independent, third party chattel finance sources returning? Some folk think so; I don’t – at least not where the financing of new and resale home transactions within LLLCommunities is concerned. Here, there’s only one game in town, and to date, that’s 21st Mortgage Company’s C.A.S.H. Program, a cooperative program involving homebuyer, LLLCommunity owner, and the lender. And this comment is not an ‘endorsement’, simply a sobering ‘reality check’. The other three ‘players’ among the Big Four + 1 independent, third party chattel finance lenders? Simply, their required personal credit score and loan underwriting standards are too difficult, if not impossible, for most would – be (manufactured) home buyers today! Proof of this? Attend the 21st annual Networking Roundtable in San Diego, 12 – 14 September and observe how many chattel lenders are present this year, when 200+/- of the largest and most actively selling homes LLLCommunity owners/operators meet to network with their peers and lenders.

• Land lease lifestyle community. We introduced this latest – and hopefully final tweak, to the decades old term describing the realty component of manufactured housing, weeks ago in this weekly blog source. Why the adjustment? Several good reasons. First, the unique, income – producing property type is no longer populated by just ‘mobile homes’ and manufactured homes. Now we routinely site modular homes, ‘park model’ RVs, RVs for a season, and on occasion, site – built homes constructed to appear like HUD – Code manufactured homes. In addition, the ‘lifestyle’ addition is long overdue, as it’s ‘for decades’ been just that, a preferred lifestyle among millions of young marrieds, retirees, and other segments of American society. And finally; there’s a quiet evolution taking place, throughout and within our industry and realty asset class, where Advocacy, Research, and Resources are concerned. That’s about all that should be said about the matter for now, but watch what comes out of MHI’s annual meeting this Fall, and other developments likely reported in this weekly blog posting; again, relative to national Advocacy, industry & asset class Research, and ‘comprehensive Resource servicing’ – in this latter case, where land lease lifestyle communities are concerned.

IV.

There’ll be one more blog posting before the 21st Networking Roundtable begins 12 September at the Hilton San Diego Resort & Spa on Mission Bay, in California. As of the writing of this posting, 1 September 2012, we’re just shy of 200 registrants. That said, and given past experience, we’ll be hosting well more than 200 land lease lifestyle community owners/operators, and a dozen or so of their favorite realty – secured mortgage lenders and brokers, by the time the event begins with Marcus & Millichap’s Buyer’s Symposium at 4PM on the 12th.

If you’re reading this and haven’t registered, do so by this Friday, 7 September. Why? When Carolyn and I leave the office at the end of that workday, we won’t be easily available to you until the Roundtable begins, or back in the office until 17 September. So don’t miss this stellar annual event because you missed us. Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 this week and register. Your peers in the manufactured housing industry and LLLCommunity asset class want to network with YOU in San Diego, CA. We do too!

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 # 46024, Indianapolis, IN. 46247
(317( 346-7156

Blog # 209 Copyright 2012 26 August 2012

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

Do YOU, Like Me, Feel an ‘MHInitiative®’ Coming On, During the Next Few or Several Months Ahead?

We haven’t even been to SECO yet, the 21st Networking Roundtable, or MHI’s annual meeting, and folk are calling for an MHInitiative® caucus.

Why?

&

What Would YOU Do, if This Scenario was Yours?

Ever find yourself betwixt & between? That’s the uncomfortable, but maybe timely and necessary state faced by some of us today, in the MHBusiness….

&

Abbreviations, Acronyms, and Allenisms

a Triple AAA array of computer and manufactured housing communication.

I.

Do YOU Feel, Like Me, an ‘MHInitiative®’ Coming On, During the Next Few or Several Months Ahead?

First off, what’s an MHInitiative®? Long time readers of this blog likely already know; but for everyone else, an explanation is certainly in order.

MHInitiative® is the contemporary trade term describing what was previously known as the National State of the Asset Class caucus. The first NSAC caucus was held 2/27/2008 in Tampa, FL., the second, 2/27/2009 in Elkhart, IN. These historic events provided asset class focus and new product design, for land lease lifestyle community owners/operators, and the HUD – Code manufactured housing industry, respectively.

During the initial (2008) caucus, 100 LLLCommunity owners/operators articulated and agreed upon ‘Five Action Areas to guide their Business Future during years ahead. Specifically, they agreed on the Value of political influence and Advocacy at local, state and national levels; Necessity & timeliness of National Image Improvement and local housing market promotional campaigns; Fair interplay of housing product pricing, financing, value and rental (homesite) rents; Measure customer satisfaction via resident relations, resident referrals, and resident retention; and Prevalence of financing and servicing new and resale home transactions on – site; and Identification of realty mortgage financing sources for properties.’ Quoted from Landlease Communities…2011, p.16. Four and a half years later, those Five Action Areas continue to guide the business decisions and actions of LLLCommunity owners/operators nationwide.

The following year (2009) an eclectic mix of 100 HUD – Code home manufacturers, along with their land lease lifestyle community owner/operator counterparts, caucused at the RV/MH Heritage Foundation’s new Hall of Fame facility in Elkhart, IN. Here, the challenge was, ‘How to Sell More New HUD – Code Homes into LLLCommunities’?! The caucus answer? Design a new line of manufactured homes, tailored for on – site installation, within this unique, income – producing property type. Well, the manufacturers did so, and in time, this new line of homes (i.e. oft singlesection, along with smaller multisection configurations) have come to be known as Community Series Homes or CSH Models. And to a degree, they’ve supplanted the behemoth multisection homes of the late 1990s, a.k.a. Developer Series Homes, designed back then, to compete with larger, site & stick – built homes. Also, a new job title and description appeared on the scene, to market CSH Models, the Business Development Manager or BDM. A free list of CSH Model characteristics, and the plants from whom to purchase them, is available via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. For in depth information about CSH Model homes, contact Don Westphal @ (248) 651-5518.

So there’s the brief, recent and successful history of NSAC caucuses. Since 2011, however, a new label, that of ‘MHInitiative®’, has been used to describe this informal, grassroots – driven, national manufactured housing meeting phenomenon – the very mention of which, has already prodded national trade bodies into similar action of their own. Lately however, some have been suggesting it’s time to caucus again; this time, to consider, and take on the major challenge of considering the rebranding of HUD – Code manufactured housing on the whole, including the industry’s land lease lifestyle community component. Specifically, to plan and effect a national, industry wide paradigm shift in the way we refer to our business model, market and advertise our affordable housing product lines, and promote our desirable realty – based lifestyle.

When might the next MHInitiative® occur? That depends on our elected leaders and salaried executives at the national Advocacy body level. An obvious place to start, in this industry observer’s opinion, would be the Manufactured Housing Institute’s annual meeting in San Antonio, TX., @ 7 – 9 October 2012. And there’s precedent for this; recalling a similar Strategic Planning Session during MHI’s annual meeting in New Orleans, nearly a decade ago. But if such an initiative was to occur this Fall, there’d have to be soon, widespread and effective ‘getting the word out’ to institute members and non – members nationwide, unless such an effort was going to be kept in – house. What might derail an industry rebranding effort this Fall? For starters, MHI and the Manufactured Housing Association for Regulatory Reform’s (‘MHARR’) ongoing feud. However, if it’s true more than 80 percent of U.S. manufactured housing market share lies with three MHI manufacturer members, maybe the institute could and should ‘go it alone’! and caucus over this matter. What do you think? If a direct, dues – paying member of MHI, let Dick Jennison know, via (703) 558-0678. Me too.

And if MHI doesn’t seize the initiative to plan and host an MHInitiative® – like caucus this Fall? Well, the ideal, even historic time to do so would be sometime around the 27th of February 2012. But guess what? That week is already filled with manufactured housing industry events: MHI’s annual Legislative Conference in Arlington, VA. @ 24 – 26 February; a Manufactured Housing Manager® or MHM® professional property management certification class in Oklahoma on 27 February; followed by the Great Southwest Manufactured Housing Show, also in OK., 28 February – 2 March! So, no, we’ll have to identify another date and location – unless everyone wants to travel to Oklahoma ‘to do the show’ AND rebrand the manufactured housing industry at the same time!? The next best alternative, would be to caucus somewhere ‘down South’ during mid – March; or simply wait and do so, at the annual Manufactured Housing Congress in Las Vegas, NV. All it’d take is a separate hotel meeting room and widespread national publicity. Whaddaya think? Send me an email: gfa7156@aol.com or phone the aforementioned MHIndustry HOTLINE. Or are you OK with the status quo?

In case you missed the point earlier, the rebranding of manufactured housing’s real estate component has already begun! How so? Well, you already know how ‘manufactured home community’, the realty asset class’ moniker, replaced ‘mobile home park’ two decades ago. Just this year – actually only a month or two ago, ‘land lease lifestyle community’ refined the ‘landlease community’ label we’ve been using during the past several years. While it’s certainly going to take awhile, know that ‘land lease lifestyle community’ will indeed ‘stick’; in part due to alliteration, in part because it makes perfect sense. So, in time, it will become the realty term of choice within and outside the HUD – Code manufactured housing industry, OR, whatever new name ‘rebranding’ gives the industry during the months ahead….

II.

What Would YOU Do, if This Scenario was Yours?

You’re a regular member of an athletic team. It’s comprised of several dozen players, who’ve played and competed together ‘for years’. And everyone – at least when the going gets tough, and in social environments, gets along well. In fact, everyone is so talented, it’s sometimes difficult to identify a particular leader; at least that was the way things were until recently.

Having competed together for more than a decade, experiencing the usual mix of successes and lapses, a subtle but obvious change in the tone of leadership, even team focus, has been felt and observed by some, if not most, team members. No longer do players get equal playing time, nor are team members overtly helping ‘the other guy’, when the game gets tough, as had been the case in times past. And, there’s little to no skill training available anymore, and others are expected to keep and publish game ‘stats’ for the team.

As it stands, a couple players, really good ones at that, have started making playing decisions pretty much on their own, and in a fashion that appears to favor a few of the more visible team members, rather than the entire team. When this was pointed out; that such favoritism is looking more and more like a clique, the notion was ridiculed. But the subtle change, nonetheless, is apparent to all.

What to do?

Confrontation or something else? Few team players want overt confrontation with other team members, as that flies in the face of camaraderie, cooperation, and simply getting the job done. Perhaps though, since the leaders of this team are elected to their playing positions, by the whole team, maybe other players need to step up to the place and make their desire to lead and change the team’s focus known, and campaign for the top leadership positions….

Or, given the significant differences in size, visibility, and playing ability of some of the dominant players and leaders, maybe form a new team to compete in the same sport, but on a different level? Now that’s a possibility. But, do we really want two teams from the same home town competing in the same sport, even at different levels? Other situations, of the same divided nature, in the sport, have not fared well in the long run. So, who will fans and supporters support when competition begins? Or is there yet some other way the two factions can ‘play well together to win’, during the months and years ahead?

The right answer to this sports metaphor quandary? Guess it depends on whether one is wholly satisfied with present leadership direction and team focus; whether one is inclined to challenge the status quo; or, frankly, see a brighter future playing opportunity, by separating from one’s old team and starting anew, with like – talented, experienced, motivated players, in a league of their own. Again, what would YOU do under these circumstances? Confront or play elsewhere? As they say, ‘inquiring minds would like to know’….

III.

Abbreviations, Acronyms, and Allenisms

BTW (‘By the way’), during this politically – charged POTUS (‘President of the United States’) election season, bet you hoped you’d heard the last of the ACORN (‘A Completely Obsessive Really Nutty Person’) folk and MSMD (‘Monkey See, Monkey Do’) politicians.

But no, nothing much has changed, as WYSIWYG (‘What You See Is What You Get’) occupy elected offices from coast to coast, causing responsible citizens to complain, AWGTHTGTTA (‘Are We Going To Have To Go Through This Again’) WTSDS (‘Where The Sun Don’t Shine’)?

But hey, as an industry and realty asset class, we’ve had more than our fair share of image slams over the years. Otherwise, we wouldn’t have to face down acronyms like CRAP (‘Cheap Redundant Assorted Products’); NIMBY (‘Not In My Back Yard’) you don’t; LULU (‘Locally Unwanted Land Use’) around here; or the land planner’s ultimate put – down, BANANA (‘Build Absolutely Nothing Anywhere Near Anything’). However, when so many of our struggling homeowner/site lessees are SITCOM (‘Single Income, Two Children, Oppressive Mortgage’) folk, DINK (‘Double Income No Kids’) retirees, even FWBs (Friends With Benefits’), we’ve gotta expect to take some flack at times.

Some abbreviations, like USP (‘Unique Selling Proposition’) and RSVP (‘Respondez Sil Vous Plait’) go back years and years and years; also ASAP (‘As Soon As Possible’), CEO & COO job titles, and not to forget KISS (‘Keep It Simple Stupid or Sweetheart’).

There’s even some old military abbreviations and acronyms, out and about in the business world these days: AWOL (‘Absent WithOut Leave’), MIA (‘Missing In Action’), KIA (‘Killed In Action’, now a brand of automobile), EOD (‘Explosive Ordnance Disposal’ or ‘End Of Day’ or ‘End of Discussion’), NAVY (‘Never Again Volunteer Yourself’), USMC (‘U Saw Me Coming’, or as Carolyn likes to opine, “Uncle Sam’s Misguided Children’, and one that can’t be printed here), RHIP (‘Rank Has Its Privileges’), SNAFU (‘Situation Normal, All Fouled Up!’), SWAG (‘Strategic Wild Assed Guess’), and WILCO (‘Will Comply’), and more….

Present day, constant exposure to email writing shortcuts has been educational as well. I’m OK (‘OK’) with LOL (‘Laughing Out Loud’ – or is it ‘Lots of Love’?) and TNX (‘Thanks’); but FOFL (‘Falling On the Floor Laughing’) is a new to me, as is NRN (‘No Reply Necessary’), which I find myself using more and more. And then there’s CUL8R (‘See You Later’), and RU (‘Are You?’).

Remember GIGO (‘Garbage In, Garbage Out’) of ‘years gone by’, when computers were behemoths and not laptops? How ‘bout this latter day variation, BIBO or (‘Beer In, Beer Out’). Not quite the same.

By now, most blog floggers (readers) are familiar with my unique brand of abbreviating, and then using, industry terms. In general, we call’em Allenisms; and when relating to manufactured housing, MHAllenisms. Here’re a few of the common variants: MHIndustry (‘manufactured housing industry’), LLLCommunity (‘land lease lifestyle community’), MHRetailer (‘manufactured housing retailer’), MHInitiative® – you met this one earlier in this posting; and MOPHEAD, an acronym I use from time to time, to describe ‘manufactured housing opinion/editorials’. And there’re these two word bastardizations: manufRactured housing – used when describing a dumb, self – inflicted wound within our MHBusiness environs! Then there’s this title to a blog posting earlier this year: ‘MHI (‘MY’) MHARRvelous Dream for the MHIndustry!’ wherein I fantasized our two national Advocacy bodies would finally be getting along, and working together for the good of our entire industry. Not!

Had enough yet? How ‘bout the ‘Ah Ha! & Uh Oh!’ label on the popular calculation worksheet, using AMI (Area Median Income) and or AGI (Annual Gross Income), to estimate ‘affordable’ and ‘risky’ Price Points for new and resale homes destined for in – LLLCommunity placement, or sited as land – and – home packages. Anyway, the first four letters are direct abbreviations of the words Affordable Housing & Housing Affordability. And ‘Uh Oh!’? Seems reasonable to cite the unfortunate exclamation one might expect from someone who’s bought more house, or signed on for a larger mortgage, than they can afford in ‘risky’ fashion, rather than with ‘affordability’ in mind. And there’s more to this story than meets the eye here. For a free copy of the ‘Ah Ha! & Uh Oh! Worksheet’, again, just phone the MHIndustry HOTLINE.

Hey, here’s another way abbreviations, acronyms, and Allenisms can serve the manufactured housing industry and land lease lifestyle community asset class. Two abbreviations suggest this (tongue in cheek) ‘fight cheer’ of HBASTD & HITAKS! Goes something like this, “At 50,000 homes a year, we’ve ‘Hit Bottom And Started To Dig! our way out, as we ‘Hang In There And Keep Smiling’!

*****

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

Blog # 208 Copyright 2012 19 August 2012

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

How to Increase HUD – Code Home Sales NOW!
It seems everyone is climbing on this bandwagon, are YOU?

‘But First, an important announcement, for individuals attending the
21st International Networking Roundtable, in San Diego, CA., @ 12 – 14 September: Registration has been so heavy for this seminal event, that rooms at the Hilton San Diego Resort & Spa are now limited. Overflow, if it occurs, will be handled by the nearby Crowne Plaza at 2270 Hotel Circle North, San Diego. If necessary, phone (888) 233-9527 and request a room reservation in the Networking Roundtable courtesy block.’ GFA

I.

Ever since this weekly blog post, on 8/5/2012, at community-investor website, described

‘HUD – Code Manufacturers Showing Renewed Interest in Selling New ‘Community Series Homes’ into Land Lease Lifestyle Communities’,

our offices have been awash in phone calls, email messages, faxes, even visits from BDMs (Business Development Managers working for said home manufacturers), requesting copies of the blog manuscript, subsequently recast as a ‘drop in’ feature in September’s edition of the Allen Letter professional journal. Are YOU a subscriber yet? If not, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Why this sudden and intense attention? Because the timing is right – even critical, for HUD – Code home manufacturers to finally realize they MUST turn out truly ‘affordable’, oft singlesection manufactured homes (a.k.a. Community Series Homes or CSH models) designed for in – land lease lifestyle community placement – to survive! Behemoth land – and – home multisection homes (a.k.a. Developer Series Homes, or DSH models of the late 1990s), for the time being, have been and continue to be ‘dead in the water’ in most local housing markets, unable to compete, price wise, with hundreds of thousands of repossessed, devalued stick – built homes sited on realty conveyed fee simple. And now that 21st Mortgage Corporation has rolled out it’s C.A.S.H. Program, and SACU, it’s One – Step Program, in – LLLCommunity financing of new (and eventually resale) manufactured homes is once again possible and feasible!

And that point, is but one of ten steps identified in the aforementioned blog, describing how HUD – Code manufacturers can sell more new homes into land lease lifestyle communities! Here’s some more unsolicited response to this particular blog posting:

“Well done! I am a ‘porchy’, as were my parents and grandparents. In late August, my sisters and I will be at Mom & Dad’s house, to sit out on the porch and solve the problems of the world, just as we have all these – OMG – years! What a great reminder, sir, and Thanks! You are right; non – threatening debate has, and will always be, the way to the truth and compromise that wins.” NB These remarks are in response to the Phillip Gulley quote used to begin the blog, and the fact that one of the most popular Community Series Home or CSH model designs, these days, is the singlesection manufactured home featuring a front – loaded porch. For a list of the HUD – Code manufacturers producing CSH models these days, phone the above – referenced MHIndustry HOTLINE.

Remember, that Ten Step to Increased Home Sales list will be a drop – in feature in the September 2012 issue of the Allen Letter professional journal. You owe it to yourself to read and USE it, and certainly pass a copy onto the HUD – Code home manufacturer, even plant, of your preference – along with the suggestion to ‘Get with it’ NOW!

II.

Then, there was this interesting suggestion. ‘How to boost home sales and save on taxes at the same time?’ This drill may or may not work in your state – so check first. But the way it works, as I was told, goes like this:

A land lease lifestyle community owner, who’s also a properly licensed MHRetailer, orders a new home, installing it on rental homesite within his property. The transaction, for the time being, is tax exempt, as it’s merchant inventory, being held for sale. The home, once properly installed on a rental homesite, is first rented to a lessee, or family, for at least one month. As a ‘rental’, the home is not taxable. Then sell the now next – to – new home as a ‘resale’ home, and that transaction is not taxable either; or, if so, only partially – depending on laws in a particular state. Taken together, this routine saves several percentage points, or thousands of tax dollars, on the sale of said home. But remember, check this out in your state, before proceeding. RK (Edited. GFA)

III.

Then there’s this sobering indictment of land lease lifestyle community owners/operators who do NOT properly, if at all, TRAIN on – site staff to effectively sell new and resale homes, let alone lease vacant rental homesites:

“Agree with everything you said in your recent blog posting, but feel you missed one important requirement (for selling more manufactured homes on – site), and that is training sales staff! The average salesperson, in a land lease lifestyle community, was hired to collect rent and take care of the property, where curb appeal, rules enforcement, and resident relations are concerned. They generally receive NO sales TRAINING whatsoever. The prevailing erroneous mindset, among HUD – code home manufacturers, and LLLCommunity owners alike, is ‘…the housing product is so superior it will sell itself!’ NOT!” GS (Edited. GFA)

My comment here? The writer is right! As a rule, operations – capable people are generally hired to staff land lease lifestyle communities. Rarely are they as good at sales, of any kind, as they are at ‘taking care of (property management) business’. And only when a property is large enough (In this industry observer’s opinion – with more than 150 rental homesites, and 10 – 15% of those vacant), can it afford to hire a commissioned sales person. And then, where do we get appropriate training? Historically – again, in my experience, not from the manufacturer or their regional sales representatives. And LLLCommunity owners/operators already know capable, experienced, motivated sales trainers, of the sort we need, are as rare as ‘hen’s teeth’ in the manufactured housing industry. The answer? Maybe, as described in two of the aforementioned Ten Steps: HUD – Code home manufacturers should seize the initiative and retrain their trainers to teach how to effectively sell Product & Lifestyle on – site, not just the former. And while they’re at it, somebody should be putting together the first ‘How to Sell Manufactured Homes in Land Lease Lifestyle Communities!’

So far, two weeks have gone by, and I’ve yet to hear from a HUD – Code home manufacturer that they defiantly plan to follow up on these two specific recommendations. Though I will say, I did have one in – plant visit and interview where the matters were at least discussed.

IV.

Changing the subject a bit, If you haven’t already read this very interesting MHVillage – conducted survey, quoted in Ken Rishel’s free, online Chattel Finance Newsletter, or elsewhere for that matter, go to mhvillage.com/ and read it ‘right from the horse’s mouth’. It’s worth the effort, and you’ll be glad you did.

Recommending this ‘read’, by the way, touches on yet another, related and telling matter.

Surely you’ve noticed! Most ‘new (MHIndustry & LLLCommunity) news’ you read these days comes from two trade press sources; Rishel Consulting’s two online finance newsletters, and aforementioned Allen Letter professional journal. NOT including the Allen CONFIDENTIAL! here, as that subscriber – supported, monthly print business newsletter deals solely with ‘insider MHBusiness information’ available nowhere else! For example; where else would one learn firsthand, details of a possible hiatus coming to post production Advocacy, Research & Resources? Or read a critique of ARA Manufactured Housing’s 2012 National Manufactured Housing (report)? Think about it. The Manufactured Home Merchandiser, Modern Home, Automated Builder, and Factory – built Housing magazines are all gone. So, here’s an acid test by which to measure ‘what’s left’: Do they announce, let alone report on, key events like the upcoming SECO Symposium in Atlanta, GA. @ 29 August; or the 21st Networking Roundtable in San Diego, CA., @ 12 – 14 September? Hmm?

V.

Speaking of the SECO Symposium, YOU barely have time to get in under the wire. That’s right; appears well more than a hundred land lease lifestyle community owners/operators, HUD – Code home manufacturers, and home finance resources will congregate at the Hilton Doubletree Atlanta/Marietta Conference Center all day , 29 August 2012. For room reservations, phone (770) 272-9441. For more information about the four part program, and to register, contact Chris Nicely via (865) 385-9675 or cnicely929@aol.com I plan to be there, not as a presenter, but as a land lease lifestlyle community owner who wants to learn from other land lease lifestyle community owners!

***

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. 462437
(317) 346-7156

Blog # 207 Copyright 2012 12 August 2012

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

Trade Terms; They are a Changing! Have YOU Noticed?

What’s With This ‘Book of Numbers’ Debuting in San Diego?

New Twist @ Great Southwest MHShow in Oklahoma, Feb. 2013

Go to SECO on 8/29 in Atlanta! I’ll be there; how bout YOU?

Be Aware! Hotel Rooms Nearly Full & Many Registered for 21st Networking Roundtable @ 12 – 14 September in San Diego, CA.

Record Response to Blog Posting Last Week Leads to Exciting Feature Story in September’s Allen Letter Professional Journal….

I.

Trade Terms; They are a Changing! Have YOU Noticed?

If you’re a regular blog flogger (reader), following the weekly postings at this website, you got a hint of trade term changes last week, when it was pointed out Bruce Savage, interim head of MHI’s National Communities Council division, convinced this industry observer to start penning ‘HUD – Code’ with a hyphen, and to divide ‘land lease community’ into a three word property type description rather than the two words previously used.

Then it ‘hit me’ this past week; there’s a further refinement to this property type description, that plays well to perennial efforts at image improvement and favorable brand identity. And it doesn’t hurt, that the addition of another word, beginning with the same letter ‘L’, adds alliteration to the happy mix.*1 So, until someone convinces otherwise,

LAND LEASE LIFESTYLE COMMUNITY, or land lease lifestyle community, and its’ abbreviated moniker, ‘LLLCommunity’, works image, brand, and phonetic wonders for our oft beleaguered real estate asset class!

With that said though, I’ve decided NOT to incorporate this new alliterated trade term into the soon – to – be – introduced ‘book of numbers’, described in the next paragraph of this week’s blog posting. Why? As ‘good as it reads and sounds’, the new three letter ‘L’ term, ‘land lease lifestyle community’, needs to appear in trade literature for awhile, and become commonplace in routine correspondence, press releases, advertising, and other printed and online matter, before it becomes official industry and asset class terminology.

End Note.

1. alliteration: ‘repetition of the same initial letter or sound in two or more nearby words.’

***

II.

What’s With This ‘Book of Numbers’ Debuting in San Diego?

The working, now actual title of said ‘book of numbers’ is the Book of Formulae, Rules of Thumb, & Helpful Measures, ‘mostly for land lease lifestyle communities & HUD – code manufactured housing….’

At this blog posting, there are six chapters and three appendices. Don’t know yet whether we’ll have time to add an index to the mix. The chapters titles?

• Land Lease Lifestyle Community Statistics. Property Valuation and Operations Management

• HUD – Code Manufactured Housing Statistics, & New/Resale Housing Price Point Calculation Methodology

• Commercial Real Estate Investment

• Realty Mortgage Origination

• Affordable Housing & Housing Affordability

• Bringing It All Together! (Actually, that was the original ‘working title’ for the chapter; since then, it’s been changed to ‘So, How Did We Get Here?’

The appendices? 23rd annual ALLEN REPORT©, the ABClassification System©, and Official MHIndustry & LLLCommunity Glossary©

Best Part of All? Presuming the perfect bound books are printed and ready to ship to the Hilton San Diego Resort Hotel, before 12 September, everyone registered for this year’s 21st annual International Networking Roundtable, will receive a FREE copy, as this year’s ‘special gift’. And know what? Word has it, there’s yet another ‘special gift’ being readied for distribution to this year’s 200+ land lease lifestyle community owners/operators and their preferred realty mortgage lenders. And hey, don’t delay! As one of today’s blog headlines says,

Be Aware! Hotel Room Block Nearly Full, as Many Register for Networking Roundtable @ 12 – 14 September in San Diego, CA.

To obtain an agenda and register, go to community-investor.com or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

III.

New Twist @ Great Southwest MHShow in Oklahoma, Feb. 2013

Every state manufactured housing association executive, and governing board chairman, might want to pay attention to what follows here.

This year, on 27 February 2013, the MHA of Oklahoma is hosting the popular, day long Manufactured Housing Manager® professional property management training and certification program, for its’ members and MHShow participants! The MHM® class occurs the day before the Great Southwest Manufactured Housing Show actually begins. This way, land lease lifestyle community owners and operators can more than double the takeaway value for attending this newly expanded event!

Newly expanded event? That’s right. Not only will LLLCommunity owners/operators have the unique opportunity to become certified as professional PMs, but the next day, at the MHShow, there’ll be at least two presentations, maybe three, that have not been available in years past:

• Representatives from Rishel Consulting will be describing ‘How To Prepare to Deal with Regulators When They Come Knocking!’ So, if concerned – and you should be, regarding the S.A.F.E. Act, AML, CFPB, and more, be on hand on 28 February at the Great Southwest MHShow in Oklahoma.

• George Allen, CPM® & MHM® will present the most comprehensive ‘State of the Manufactured Housing Industry, & Land Lease Lifestyle Community Asset Class’, available anywhere, from anyone else! And if asked, will describe how to use the popular ‘Ah Ha! & Uh Oh! Worksheet’, using AGI (annual gross income) & or AMI (average median income) as starting points, how to calculated the ‘affordable’ & ‘risky’ Price Points for new and resale manufactured homes to be sited within land lease lifestyle communities, or outside on realty conveyed fee simple. Where else are you going to learn those key basics of our housing business?

How can you not plan to attend such a symposium of industry knowledge and asset class education? For further information, contact Deanna Fields, PHC® via (405) 634-5050

SPECIAL ANNOUNCEMENT for State MHAssociation Executives & Governing Board Chairmen. Why should New York (Think Symposiums the past three years); Georgia (Think upcoming SECO); and now, the Great Southwest MHShow corral the Best manufactured housing and LLLCommunity programs? The programs described in the previous paragraphs, along with additional presenters covering ‘lease option’, and various property management topics (e.g. marketing, collections, resident relations, etc.) are available to Your Association! And the programs are cost effective. For information, phone the aforementioned MHIndustry HOTLINE!

Frankly, this unique seminar program belongs on the agenda of every regional MHShow, in Tunica, Louisville, Pennsylvania, and elsewhere. Why? Because it’ll bring land lease lifestyle community owners/operators out to learn together, and see new homes on display!

***

IV.

Go to SECO on 8/29 in Atlanta! I’ll be there, how bout YOU?

Doncha love it? Land lease lifestyle community owners planning a day of education and discussion of industry issues for land lease lifestyle community owners and operators? Frankly, I can hardly wait to get to Atlanta, GA., and participate in a networking get together the evening of 28 August; and, day long program on 29 August, that includes:

• Marketing Audit Reports on four land lease lifestyle communities, complete with observations, recommendations, remedial actions taken, and end results!

• 21st Mortgage Corporation’s exciting and ground – breaking C.A.S.H. Program will experience its’ first regional presentation to land lease lifestyle owners!

• Roundtable Discussions led by Southeast land lease lifestyle community owners, will identify and parse the Biggest Issues facing the realty asset class today!

• Introductions of a new, broad – based media advertising program designed to drive qualified homebuyer prospects to communities selling new homes on – site!

Join US at the Hilton Doubletree Atlanta/Marietta Conference Center. Phone (770) 272-9441 for room reservations and visit www.seco12.org

***

V.

Record Response to Last Week’s Blog Posting Leads to September feature in the Allen Letter professional journal: ‘How HUD – Code Manufacturers Can Markedly Increase Home Sales into Land Lease Communities Now!’

Hadn’t even turned off the PC last Sunday, when responses to last week’s blog posting at this website (community-investor.com) started pouring in – and every single message was positive and encouraging. As you’ll likely recall, the gist of the post identified ten measures HUD – Code home manufacturers can do NOW, to start selling more new homes into land lease lifestyle communities.

Well, during the past week no fewer than six HUD – Code home manufacturers have requested appointments to review the aforesaid ten points, and in several cases have already directed their Business Development Managers to interface more with land lease lifestyle community owners and operators. And firms which have not, to date, had Community Series Homes or CSH models, available to order, are now adding such community – friendly homes to their product availability mix.

So, if this topic interests you, either scroll back into the blog archives at the community-investor.com website, or be sure to receive the September issue of the Allen Letter professional journal. Not yet a subscriber? Phone the aforementioned MHIndustry HOTLINE. Only $134.95/year for 12 monthly issues of the business newsletter.

And Yes, there were additional responses to this How To blog posting, from state MHAssociation execs, sales consultant/trainers, and MHIndustry veterans. We’ll likely share some of those interesting and thought provoking messages in a future blog posting.

The only ‘downer’ occurred when a ‘reformatted – for – print publication version’ of the ‘ten measures’ was emailed to two national trade advocacy bodies serving the manufactured housing industry. It was suggested the ‘ten measures’ be forwarded on to their HUD – Code home manufacturer members. Did they do so? If you’re a home manufacturer reading this, you’ll have to tell me. In one instance, the request was turned down flat, with the excuse ‘they’ are a national advocacy body and unwilling to tell their members what to do or how to do it (i.e. Increase new home shipments into land lease lifestyle communities!). Go figure.

***

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 # 206 Copyright 2012 5 August 2012

Perspective. “Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.” GFA

HUD – Code Manufacturers Showing Renewed Interest in Selling New ‘Community Series Homes’ into Land Lease Communities!

&

Where to Find the Mobe Dog Millionaire, our ‘Watchdog of Manufactured Housing’, & Water Meter Princess, All in One Story

&

More about Influential Person(s) Input & Breakfast Tomorrow in Elkhart, IN. ‘Have YOU sent in your recommendation(s); & will I see YOU at 8AM Monday, at the Golden Egg Restaurant?’ GFA

*****
Have you blog floggers (readers) already noticed two significant changes to the punctuation and word usage in this blog posting? As we edited the soon – to – be – released Book of Formulae, Rules of Thumb & Helpful Measures ‘mostly for Land Lease Communities & HUD – Code Manufactured Housing….’, Bruce Savage convinced me to hyphenate ‘HUD – Code’ and opt for ‘land lease community’, rather than past practice.

*****

I.

HUD – Code Manufacturers Showing Renewed Interest in Selling New ‘Community Series Homes’ into Land Lease Communities!

“Several years back, I was visiting an elderly woman in my Quaker meeting. She was reminiscing about her childhood. I asked her what she missed the most. She closed her eyes for a moment, thinking back, then said, “Porch talk. I miss the porch talk.” “

“Social scientists and preachers offer a number of reasons for the decline of civil society; broken homes, poverty, disease, television, and increasing secularism, to name a few. I believe all that is wrong with our world can be attributed to the shortage of front porches and the talks we had on them. Somewhere around 1950, builders left off the front porch to save money, and we’ve had nothing but problems ever since.” From Philip Gulley’s easy to reed book, Porch Talk, Harper One, 2007., p.1.

Well, guess what? The HUD – Code manufactured housing industry already has an AFFORDABLE CURE for these SOCIETAL ILLS: the ‘front porch – loaded, single section Community Series Home! That CSH design, along with the inherently ‘affordable’ nature of our factory – built housing product, should or could, along with accessible chattel financing, spark a new and much – needed renascence for our industry and realty asset class!

Maybe yes, maybe no. But tell you what; during the past week, between 30 July and 3 August, I fielded no fewer than three telephone calls from Business Development Managers representing three different HUD – Code home manufacturers: Clayton, Champion, and Cavco.

What did these BDMs want to discuss? ONE THING. How to effectively market new HUD – Code manufactured homes, as well as Community Series Homes, to land lease community owners and property portfolio operators nationwide! I’ll be meeting personally with each of these BDMs during the weeks ahead, and here’s the gist of what we’ll be discussing:

• Be prepared with elevation drawings and floor plans of homes that’ll fit on rental homesites in older and newer land lease communities. This means small singlesection homes, even RV ‘park models’ (where allowed) for properties with a plethora of functionally obsolete sites (i.e. built ‘years ago’ & too small for today’s generally larger homes). Also larger singlesection, and smaller multisection homes, for land lease communities built during and since our industry’s too short – lived renascence in and around 1998 – 2000.

• Have a selection of Community Series Homes designs and floor plans available, especially for land lease community owners/operators who’re buying new manufactured homes for use as rental units or occupied using lease option agreements. If you need a list of specific durability – enhancing features characteristic of, and preferred in, CSH model homes, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to request a FREE copy of the CSH/BDM list.

• Be where land lease community owners/operators congregate to network this Fall! For starters, patronize the gala SECO event in Atlanta, GA., on the 29th of August. This Southeastern (Land Lease) Community Owners Symposium is being ‘planned by land lease community owners for land lease community owners’. Miss this, and miss a prime new home sales opportunity in that region of the U.S. Visit www.seco12.org/

• Excuse the self – serving nature of ‘this recommendation’; but if a HUD – Code home manufacturer with a national presence, you can’t afford not to be at the 21st International Networking Roundtable in San Diego, 12 – 14 September 2012. There’ll be upwards of 200 land lease community owners and operators present, along with their preferred lenders. It’s the only time each year, when land lease community aficionados come together for education, networking, deal – making, and interaction with CSH manufacturers. So, visit community-investor.com to register or phone the above – referenced MHIndustry HOTLINE

• When exhibiting new manufactured homes in Kentucky and Oklahoma this Winter, display as many new home designs/floor plans land lease community owners/operators ‘want to see and buy’ (e.g. CSH models), as you – the manufacturers, ‘hope to sell’ to land/home package contractors and MHRetailers specializing in developing scattered sites conveyed fee simple. Everyone knows this would be a major break in tradition, for sure, but will also clearly signal manufactured housing finally recognizes an increasing part of its’ future prosperity is tied to a return to truly affordable housing and placement of new homes in land lease lifestyle communities!

• Be ready and able to teach and assist land lease community owners/operators, not yet actively marketing new manufactured homes on – site, How To Do So! And we’re NOT talking about the old independent ‘street’ MHRetailer & ‘company store’ approach either! Rather, you (and we) need marketing professionals and sales trainers who understand and teach the promotion of ‘community lifestyle’ as much as they do ‘product’. IF and when you can do so, you’ll be the most popular HUD – Code manufacturer in town! For that matter, let me know and I’ll tell the 1,000+/- blog floggers of this weekly posting how to contact YOU for help.

• Convince yourself, and the land lease community owners/operators you teach, to sell ‘lifestyle’ and housing ‘product’, there’s No Long Term Advantage For Either Of You to Sell More Home Than Buyers Can Truly Afford! With that said, be prepared to explain ‘How to calculate affordable housing Price Points based on one’s local housing market’s (Defined by postal zip code) Area Median Income or AMI, or customer’s or household’s Annual Gross Income or AGI. Methodology? Simple. Use the popular, strangely – named, ‘Ah Ha! & Uh Oh! Worksheet’ – with examples, available FREE, via aforementioned MHIndustry HOTLINE. Understand; our industry’s penchant for ‘NOT including household utility expenses’ in the widely – applied 30% (of AGI) Housing Expense Factor or HEF (i.e. PITI = principal, interest, taxes, insurance), is a primary reason there’re more ‘risky’ housing finance deals these days! For that matter, a mortgagor’s (i.e. borrower’s) HEF will approach 50%, when PITI and household expenses are totaled together, after the housing mortgage has been underwritten and effected.

• Advertise where land lease community owners and property portfolio operators read! Today, that’s pretty much restricted to the Allen Letter professional journal, a subscriber – supported trade publication. This is the only publication focused on serving the information needs of land lease community owners/operators nationwide, without regard to national association membership of any kind. Also know it’s possible to engage in a Direct Mail campaign to 500+/- property portfolio owners/operators who own/manage an average of 27 land lease communities apiece, with average sized property containing 219 rental homesites. For Direct Mail campaign details, phone the MHIndustry HOTINE. Mailing list is 95+% up to date, and addressees are the portfolio decision – makers. Why aren’t any other print publications mentioned here? Well, they’re either no longer in print or….

• Finally, and at this point in time, the most important thing to have available, is a source of chattel (personal property) financing for the homes you sell! And if this is not available via your firm, be prepared to walk your new home sales customers through the lease option process, if legal in their state; and if necessary, put them in touch with someone with successful experience leasing manufactured homes on – site as apartments. For lease option information, visit leaseoptionhmesales.com For rental unit background, ask for a FREE reprint on ‘renting’ when phoning the aforementioned MHIndustry HOTLINE.

• Want to corner the ‘on – site new home sales in land lease community market’? Research, write, publish, and distribute, for a price or for free, the manufactured housing industry’s first HOW TO guidebook on this very subject! Seriously. No one has done so to date. Be the first to do so, and do it well (I’ll be pleased to assist, via editing, printing, & binding, if asked.), and there’s a market of between 7,500 and 50,000 land lease community owners/operators ‘out there’ who’d likely buy a copy from YOU! How do I know? Landlease Community Management, since 1988, has gone through eight editions and sold tens of thousands of copies to date. J. Wiley & Sons’ Development, Marketing & Management of Manufactured Home Communities, though published way back in 1994, continues to sell well when ‘raw land development’ is in vogue. And their How to Find, Buy, Manage & Sell a Manufactured Home Community, published in 1998, continues to be ‘the Bible’ on that rarified topic. The Manufactured Housing (Chattel) $$$ Primer, distributed two years ago at the MHCongress ‘sold out’ within six months. And Wells Fargo Bank’s Manufactured Home Community Finance Handbook is one of the most popular handouts at every MHCongress! So why not be, as we used to say in the military, recognized as the ‘duty expert’ on setting up and managing on – site home salescenters within land lease communities? Someone’s going to do it someday; why not now; why not YOU?

II.

Where to Find the Mobe Dog Millionaire, our ‘Watchdog of Manufactured Housing’, & Water Meter Princess, All in One Story

I’m often been called on, by family, friends, and business associates, to pen memorials and eulogies for loved ones and acquaintances. This past weekend, I was working on The Commodore’s Homecoming, a tribute to Ron Richardson, who died on 5 July 2012. a couple thoughts occurred to me. Many land lease community owners/operators throughout the U.S. knew and liked Ron as a friend and business associate. He is also the first of the original 18 Pioneers, who met on 31 August 1963, in Indianapolis, IN., to found the national advocacy body that’d, 2 ½ years later emerge as MHI’s National Communities Council, now division.

So, decided to craft a fictional short story describing who might have participated in a wake or memorial gathering, in Ron’s honor, if we’d had the opportunity to do so. Well, I made a collection of nearly a dozen nicknames of well known and, at times colorful, individuals I’ve known in the MHBusiness during the past three decades, and wrote them into a fictional shot story that begins,

“The Commodore’s business buddies decided he deserved a manufactured housing – flavored sendoff. So, the Colonel stepped up to the trailer hitch and….”

The story is featured in the August issue of the Allen Letter professional journal. If you’re not a subscriber, but would like to become one, to read this tale, and regularly read ‘all that’s worth reading about our MHIndustry & LLCommunity asset class’, phone me at (317) 346-7156.

*****

III.

More about Influential Person(s) Input, & Breakfast Tomorrow in
Elkhart. IN. ‘Have YOU sent in your recommendation(s) & will I
see YOU at 8AM Monday, at the Golden Egg Restaurant?’ GFA

Really not much to add. The List of 25 Most Influential Persons in the Manufactured Housing Industry & Land Lease Community Real Estate Asset Class continues to grow. So, if YOU would still like to input, do so this week, via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or email: gfa7156@aol.com
Remember, ‘the list’ will likely be published in January 2013, as part of the 24th ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Community Portfolio Owners/operators Throughout North America!’). Regarding that Signature Series Resource Document (‘SSRD’), know that it’ll also likely be distributed as a lagniappe in that month’s Allen Letter professional journal. To subscribe ($134.95/year = 12 monthly issues), call the MHIndustry HOTLINE. Also know the questionnaires used to research the annual ALLEN REPORT will be in the mail sometime during late August and early September, before we all get together at the 21st Networking Roundtable in San Diego, CA., @ 12 – 14 September.

Finally; do hope to see some blog floggers at breakfast tomorrow morning, at 8AM, at the Golden Egg Restaurant on the NE edge of Elkhart, IN. Those who participate will receive an industry & asset class – related gift from me. See you there!

*****

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

Blog # 205 Copyright 2012 29 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

I.

12 of the 25 Most Influential People in MHIndustry & LLCommunity Realty Asset Class Already Identified!

II.

Are These Four Dates & Locations on Your Calendar?

III.

‘The Two Percenters Speak Out!’ Upcoming expose’ also describes landlease communities ‘Victory over Vacancy’!

IV.

Our Very Own Tipping Point, and the Several Probable Consequences Thereof, Depending on Which Way We Tip

***

‘OK; hang on, and ready yourself for an interesting (I), exciting (II), surprising (III), and thought (& action?) provoking (IV) ‘read’ thru familiar territory, as well as the hinterlands (undeveloped areas), of manufactured housing and landlease community affairs.’ GFA

I.

12 of the 25 Most Influential People in MHIndustry & LLCommunity Realty Asset Class Already Identified!

Before 12 hours passed, after emailing last Sunday’s BEBA (‘Blast Email Blog Alert’) and imbedded website/blog address, we received more than a dozen written recommendations of manufactured housing and landlease community – related individuals to include on the ’25 Most Influential People’ list! Frankly, I was surprised and encouraged, regarding the speed and volume of response, to this matter, from the 1,000+/- MHIndustry & LLCommunity folk who receive our BEBA every Sunday. Unfortunately, the request for input has become a write – in campaign, in behalf of a state manufactured housing association executive.

Remember, the deadline for recommendations is 30 September 2012. All you have to do is contact me, anyway you wish, with the suggested name, and reason(s) for your recommendation(s). Mail to GFA c/o Box # 47024, Indianapolis, IN. 46247 or FAX via (317) 346-7158 or email: gfa7156@aol.com, or via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Tentative plan is to incorporate this ’25 Most Influential People in Manufactured Housing & Landlease Communities’ list into the 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Owners/operators Throughout North America!’), scheduled for distribution as a lagniappe in the Allen Letter professional journal during January 2013. This list will be a noteworthy and historical addition to this seminal report, as copies of it are always requested, filed and archived annually, in public (Library of Congress), business (e.g. RV/MH Museum & Library in Elkhart, IN.), and university libraries, mostly for research purposes. So, ensure your Most Influential Person(s) become an integral part of manufactured housing and landlease community history!

II.

Now There’re Four Opportunities For YOU to Learn, US to Network; & TOGETHER, Influence Our Business Futures!

August 6th, 2012. RV/MH Heritage Foundation’s annual Hall of Fame Induction Banquet, at the RV/MH Museum and library facility at 21565 Executive Parkway, Elkhart, IN. I’ll be arriving earlier that day to meet with friends and associates in the MHBusiness, before heading for the RV/MH Hall of Fame at 5PM, for a reception before the induction banquet. Who and What to expect? Several hundred MH & RV folk participating in our industries’ only legacy preservation program! To join in the fun and celebration, phone (574) 293-2344. Tell Charlene, “George sent me!” She’ll laugh….

And at 8AM the next morning, meet me for breakfast, at the Golden Egg Restaurant, located on the West side of Route # 19, in front of the Hilton Garden Hotel, where several of us are spending the night. And if you ‘break fast’ with us, expect a special MHIndustry – related gift from me; I’ll be that pleased to see you! And at that time, also give me the name of your Most Influential Person in Manufactured Housing & Landlease Communities.

August 29th, 2012. ‘We Go to SECO!’ is becoming the motivating rallying cry for those of us headed for this Southeastern (Landlease) Community Owners symposium in Atlanta, GA. What makes the program unique? Two things: who’s planning and hosting the event; and, what’s on the agenda. In the first instance, ‘Landlease community owners are doing this for landlease community owners!’ In the second instance, consider these foci:

• Marketing Audit Reports on four landlease communities, complete with observations, recommendations, remedial actions taken, and end results!

• 21st Mortgage Corporation’s exciting and ground – breaking C.A.S.H. Program will experience its’ first regional presentation to landlease community owners!

• Roundtable Discussions led by Southeast landlease community owners, who’ll identify and help parse the Biggest Issues facing the realty asset class today!

• Introduction of a new, broad – based media advertising program designed to drive qualified homebuyer prospects to communities selling new homes on – site!

So, join US at the Hilton Doubletree Atlanta/Marietta Conference Center. Phone (770) 272-9441 to make a room reservation; and, chrisnicely@gmail.com OR davidroden@yahoo.com OR spencer@roane.com

September 12 – 14 2012. ‘Anyone who’s anybody in the landlease (f.k.a. manufactured home) community business, as an owner/operator, will likely be present at the 21st annual International Networking Roundtable in San Diego, CA.!’ That’s ‘been the case’ during the past two decades this special event has been planned and hosted for landlease community ‘players’ and a dozen of their preferred real estate – secured mortgage loan originators. So, if that sentence describes YOU, plan now to attend! How? Phone the MHIndustry HOTINE: (877) MFD-HSNG or 633-4764, or go to community-investor.com website to obtain a descriptive brochure and register. Attendance limited to 250 landlease community owners/operators and mortgage originators. Don’t be left out this time.

And know there’re more than 22 educational opportunities, nine superb interpersonal networking (meal/social events) events, and landlease community deal – making occasions, during the 2 ½ day Roundtable, more than at any other MHIndustry or asset class event scheduled anywhere, at anytime, during the year! See YOU there!

October 7 – 9, 2012. First off, if you’re in the MHBusiness, and not a direct, dues – paying member of the Manufactured Housing Institute, you should be! To do so, phone (703) 558-0678 and talk to Dick Jennison. Furthermore, if you own/operate one or more landlease communities, you should be a direct, dues – paying member of MHI’s National Communities Council (‘NCC’) division. To do so, phone Bruce Savage via (703) 558-0678. Plan to attend MHI’s annual, & NCC’s division meetings, in Arlington, VA. In early October. Unlike the other educational and networking events just described, there’ll be more large home manufacturers and property portfolio owners/operators at this event, ensuring their particular issue views, regarding MH & LLCommunity ADVOCACY, are on the agenda and foremost in the minds of MHI & NCC staff members and lobbyists.

So, become a member, attend, and make your issue views known as well. If you don’t, you have no one to blame but yourself, if your business environment deteriorates, federal financial regulation increases, and you wonder why all this is happening to YOU.

III.

‘The Two Percenters Speak Out!’ Upcoming expose’ also describes landlease communities ‘Victory over Vacancy’!

This will be (already is) my penned response to the ‘Victory over Vacancy’ article featured in the July/August issue of the Institute of Real Estate Management’s® Journal of Property Management magazine. Their feature begins with a two page photo spread, depicting what appears to be corner and end views of either HUD Code manufactured home sections, or modular home modules – both unsheathed, parked on a factory floor somewhere.

However, there’s absolutely no mention whatsoever, anywhere in this feature, of any sort of factory – built housing, and how it might relate to the title of the piece: ‘Victory over Vacancy’. But, that in itself is not surprising. As a 30+ year, now Emeritus Certified Property Manager® member of IREM®, I can’t recall the last time their in – house organ, JPM, published anything about the landlease (f.k.a. manufactured home) community income – producing property type. Back in the 1980s & 90s, I regularly penned articles, on this subject, for the magazine; enough to be inducted into IREM’s Academy of Authors, but nothing during the past ten years or so.

And there is indeed a ‘Victory over Vacancy’ story to be told, about the landlease community realty asset class. At this point in time, I have no idea whether IREM’s JPM staff will accept the ‘response article’ I’ve penned, for publication in an upcoming issue of the magazine. Irregardless, it will run in the September issue of the Allen Letter professional journal. So, if not already a subscriber, phone (317) 346-7156 to become one today.

The intimate circle of subscribers to the Allen CONFIDENTIAL! business newsletter, will get an advance look at the expose’ and ‘Victory over Vacancy’ piece in the August issue.

IV.

Our Very Own Tipping Point, and the Several Probable Consequences Thereof, Depending on Which Way We Tip

This time next year, national ADVOCACY; manufactured housing RESEARCH; and, landlease community RESOURCES will likely be significantly different, in small or large part, from what we experience, benefit from, and appreciate today.

How so? While not prepared or authorized to provide details at this time – as they’ve yet to be worked out and codified, here’s how the landlease community Advocacy, Research, & Resource business terrain appears to this industry observer today:

Advocacy. Since January 1996, all matters pertaining to (then) manufactured home community national (political & regulatory) advocacy have been handled by the Manufactured Housing Institute’s National Communities Council (‘NCC’) division, despite suffering no fewer than six different ‘executive directors’, and a more – than – a – year leaderless hiatus, during the past 16 ½ years.

Lisa Brechtel is not returning to head the NCC division, and it appears Bruce Savage’s firm will continue in that leadership role for the time being.

At present, NCC’s elected leadership is dominated by representatives from the among the largest landlease community portfolio owners/operators. It remains to be seen, if and or how, this weighted leadership presence impacts the council’s agenda and focus.

Research. While still a routine focus for GFA Management, Inc., dba PMN Publishing, it’s expected, once the 24th annual ALLEN REPORT is published in January 2013, a measure of – if not all, realty asset class research will gradually be assumed by the newly formed Center for Manufactured Housing Studies, officed in Athens, OH.

David Funk, a landlease community owner/operator, is leading this effort to bring academic style and quality research to landlease communities, manufactured housing, and affordable housing.

It’s hoped, by many of us in the manufactured housing industry and landlease community asset class, the CMHS will, in time, become the long – awaited Think Tank for our sector of factory – built housing, realty asset class, and affordable housing.

Resources. This third of the landlease community triad of ADVOCACY, RESEARCH, & RESOURCES, continues to be handled by the aforementioned Indiana firm. And here’s specifically where the tipping point comes into play this year and next….

One goal might be to see Advocacy, Research, & Resources gel well together, within as few existing not for profit, or for profit – if need be, entities as possible! In fact, there’s already a joint project underway, testing such a triparte alliance, realizing change will still have to occur in the near to interim future. The project? Final editing of the new book manuscript tentatively titled, Book of Formulae, Rules of Thumb, & Helpful Measures. Content editors are Bruce Savage of the NCC (Advocacy), David Funk of the CMHS (Research), and Spencer Roane, MHM® of Pentagon Properties in GA, assisting the author with the Resources aspect of the work. It’s hoped this ‘book of numbers’ will be printed, bound, and ready for distribution, to all registrants, at this year’s 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September. One more reason to go!

With that said though, there’s still precarious tipping ahead. Look at it this way: ‘WHO will lead the landlease community realty asset class into the future?’ An individual (Not me!), or one or more profit or not for profit entities? Let’s begin with the aforementioned Advocacy, Research, Resources triad. There’re at least three alternatives, and as of last month – a fourth, towards which this landlease community state of affairs might tip:

• MHI’s NCC division steps forward to add ‘comprehensive Resource servicing’, for landlease community owners/operators, to its’ day to day repertoire! Generally unknown, except to the 18 asset class pioneers who met 31 August 1993, to form the Industry Steering Committee predecessor to the NCC, the first of seven Strategic Objectives, penned at the time, read: “Share useful and accurate information within and outside the industry.” In today’s words, that’s landlease community ‘comprehensive Resource servicing’, based on Research, and in accords with issue and regulatory Advocacy. So, today there’s a very real opportunity for MHI’s NCC division to finally accomplish that Strategic Objective! Will it do so?
.
• MHI’s NCC division does NOT step forward, to add ‘comprehensive Resource servicing’, for landlease community owners/operators, to its’ day to day repertoire! Instead, it stands by the wayside, as this rare opportunity tips to another ‘for profit’ firm – like GFA Management, Inc., dba PMN Publishing, one willing and able to take over the responsibility of providing print and online media and communication, professional property management education and certification, as well as opportunities for national interpersonal networking, and deal – making. In a word, preserving today’s ‘comprehensive Resource servicing’ status quo, serving 50,000+/- landlease communities coast – to – coast.

• Or, in the minds of conscientious landlease community owners/operators, this Worst Case Scenario, where No One ‘steps up to the plate’, figuratively speaking – other than where the Research function is concerned, and this whole state of Resource affairs tips precipitously backward to where it was in 1980 – that’s 33 years ago, when there was NO knowledge of Who the property portfolio players were; NO property management ‘How To’ resources (books, forms), let alone PM training and certification; NO routine and regular print (monthly) and weekly (blog) communication among property owners/operators; and NO annual national interpersonal networking, educational, and deal – making opportunities designed specifically for landlease community aficionados. Wow! Is that even possible? It certainly is!

So, which way will landlease communities be tipping by the end of year 2012? Do YOU care? YOU should! What can YOU do, in the interim, to make your voice and preferences known? Just what was suggested earlier: BE where the action is, and talk with the Most Influential Persons in manufactured housing and landlease communities. BE a direct, dues – paying member of MHI’s NCC division, and stop relying on just what your state MHAssociation director may or may not be telling you about matters that’ll surely be impacting your near and interim business future! And know this, all parties involved in the first two of the three tipping point scenarios, will likely be present at the 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September 2012. THEN would be an IDEAL time for YOU to get to know, maybe even influence, the future leadership of your preferred business model, the landlease community realty asset class!

• Oh yes, there is an additional, lately – emerging tipping point alternative. It’s one I’m uncomfortable writing about, in light of what you just read; but I’d be doing you an injustice if I didn’t share it, at least in part, with you. This fourth tipping point alternative, in some ways, is already in place. More than a dozen small mid – sized landlease community owners, some are small property portfolio operators, have already made their strong feelings known; that if the first two of the three above – described alternatives, don’t materialize in the relatively near future, they will NOT allow the third one (i.e. Return to 1980’s ‘nothingness’) to happen! Meaning? Well, YOU think about it. Frankly, I’m hoping our collective Advocacy, Research, Resources future will be nicely in place by ‘then’, and there will be no need for this fourth alternative.

And there’s this final, genuine concern, also expressed by other small to mid – sized owners/operators: If ‘the right people’, whoever ‘they’ be (My guess is passionate, capable, experienced, motivated landlease community aficionados), don’t assume control, ensuring continuation of Resources already in place, much of what exists today could well fade away due to benign neglect; in the end, effecting the third alternative by default. Pretty heady stuff wouldn’t you agree? What’re your thoughts on these alternatives?

Enough to think about during the week or two ahead? Certainly is enough for me. In the meantime, decide NOW when and where we’ll meet; where YOU will exert your influence as a landlease community owner/operator; and, be there! And while at one or more of the four upcoming events, engage in this telling exercise: Pay close attention to WHO is present and not present, from the major HUD Code home manufacturing firms, AND largest of the landlease community portfolio firms. You might be surprised who ‘doesn’t actively participate but inordinately influences’ industry and asset class issues and regulatory Advocacy matters.

***

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

Blog # 205 Copyright 2012 29 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

I.

12 of the 25 Most Influential People in MHIndustry & LLCommunity Realty Asset Class Already Identified!

II.

Are These Four Dates & Locations on Your Calendar?

III.

‘The Two Percenters Speak Out!’ Upcoming expose’ also describes landlease communities ‘Victory over Vacancy’!

IV.

Our Very Own Tipping Point, and the Several Probable Consequences Thereof, Depending on Which Way We Tip

***

‘OK; hang on, and ready yourself for an interesting (I), exciting (II), surprising (III), and thought (& action?) provoking (IV) ‘read’ thru familiar territory, as well as the hinterlands (undeveloped areas), of manufactured housing and landlease community affairs.’ GFA

I.

12 of the 25 Most Influential People in MHIndustry & LLCommunity Realty Asset Class Already Identified!

Before 12 hours passed, after emailing last Sunday’s BEBA (‘Blast Email Blog Alert’) and imbedded website/blog address, we received more than a dozen written recommendations of manufactured housing and landlease community – related individuals to include on the ’25 Most Influential People’ list! Frankly, I was surprised and encouraged, regarding the speed and volume of response, to this matter, from the 1,000+/- MHIndustry & LLCommunity folk who receive our BEBA every Sunday. Unfortunately, the request for input has become a write – in campaign, in behalf of a state manufactured housing association executive.

Remember, the deadline for recommendations is 30 September 2012. All you have to do is contact me, anyway you wish, with the suggested name, and reason(s) for your recommendation(s). Mail to GFA c/o Box # 47024, Indianapolis, IN. 46247 or FAX via (317) 346-7158 or email: gfa7156@aol.com, or via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Tentative plan is to incorporate this ’25 Most Influential People in Manufactured Housing & Landlease Communities’ list into the 24th annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Owners/operators Throughout North America!’), scheduled for distribution as a lagniappe in the Allen Letter professional journal during January 2013. This list will be a noteworthy and historical addition to this seminal report, as copies of it are always requested, filed and archived annually, in public (Library of Congress), business (e.g. RV/MH Museum & Library in Elkhart, IN.), and university libraries, mostly for research purposes. So, ensure your Most Influential Person(s) become an integral part of manufactured housing and landlease community history!

II.

Now There’re Four Opportunities For YOU to Learn, US to Network; & TOGETHER, Influence Our Business Futures!

August 6th, 2012. RV/MH Heritage Foundation’s annual Hall of Fame Induction Banquet, at the RV/MH Museum and library facility at 21565 Executive Parkway, Elkhart, IN. I’ll be arriving earlier that day to meet with friends and associates in the MHBusiness, before heading for the RV/MH Hall of Fame at 5PM, for a reception before the induction banquet. Who and What to expect? Several hundred MH & RV folk participating in our industries’ only legacy preservation program! To join in the fun and celebration, phone (574) 293-2344. Tell Charlene, “George sent me!” She’ll laugh….

And at 8AM the next morning, meet me for breakfast, at the Golden Egg Restaurant, located on the West side of Route # 19, in front of the Hilton Garden Hotel, where several of us are spending the night. And if you ‘break fast’ with us, expect a special MHIndustry – related gift from me; I’ll be that pleased to see you! And at that time, also give me the name of your Most Influential Person in Manufactured Housing & Landlease Communities.

August 29th, 2012. ‘We Go to SECO!’ is becoming the motivating rallying cry for those of us headed for this Southeastern (Landlease) Community Owners symposium in Atlanta, GA. What makes the program unique? Two things: who’s planning and hosting the event; and, what’s on the agenda. In the first instance, ‘Landlease community owners are doing this for landlease community owners!’ In the second instance, consider these foci:

• Marketing Audit Reports on four landlease communities, complete with observations, recommendations, remedial actions taken, and end results!

• 21st Mortgage Corporation’s exciting and ground – breaking C.A.S.H. Program will experience its’ first regional presentation to landlease community owners!

• Roundtable Discussions led by Southeast landlease community owners, who’ll identify and help parse the Biggest Issues facing the realty asset class today!

• Introduction of a new, broad – based media advertising program designed to drive qualified homebuyer prospects to communities selling new homes on – site!

So, join US at the Hilton Doubletree Atlanta/Marietta Conference Center. Phone (770) 272-9441 to make a room reservation; and, chrisnicely@gmail.com OR davidroden@yahoo.com OR spencer@roane.com

September 12 – 14 2012. ‘Anyone who’s anybody in the landlease (f.k.a. manufactured home) community business, as an owner/operator, will likely be present at the 21st annual International Networking Roundtable in San Diego, CA.!’ That’s ‘been the case’ during the past two decades this special event has been planned and hosted for landlease community ‘players’ and a dozen of their preferred real estate – secured mortgage loan originators. So, if that sentence describes YOU, plan now to attend! How? Phone the MHIndustry HOTINE: (877) MFD-HSNG or 633-4764, or go to community-investor.com website to obtain a descriptive brochure and register. Attendance limited to 250 landlease community owners/operators and mortgage originators. Don’t be left out this time.

And know there’re more than 22 educational opportunities, nine superb interpersonal networking (meal/social events) events, and landlease community deal – making occasions, during the 2 ½ day Roundtable, more than at any other MHIndustry or asset class event scheduled anywhere, at anytime, during the year! See YOU there!

October 7 – 9, 2012. First off, if you’re in the MHBusiness, and not a direct, dues – paying member of the Manufactured Housing Institute, you should be! To do so, phone (703) 558-0678 and talk to Dick Jennison. Furthermore, if you own/operate one or more landlease communities, you should be a direct, dues – paying member of MHI’s National Communities Council (‘NCC’) division. To do so, phone Bruce Savage via (703) 558-0678. Plan to attend MHI’s annual, & NCC’s division meetings, in Arlington, VA. In early October. Unlike the other educational and networking events just described, there’ll be more large home manufacturers and property portfolio owners/operators at this event, ensuring their particular issue views, regarding MH & LLCommunity ADVOCACY, are on the agenda and foremost in the minds of MHI & NCC staff members and lobbyists.

So, become a member, attend, and make your issue views known as well. If you don’t, you have no one to blame but yourself, if your business environment deteriorates, federal financial regulation increases, and you wonder why all this is happening to YOU.

III.

‘The Two Percenters Speak Out!’ Upcoming expose’ also describes landlease communities ‘Victory over Vacancy’!

This will be (already is) my penned response to the ‘Victory over Vacancy’ article featured in the July/August issue of the Institute of Real Estate Management’s® Journal of Property Management magazine. Their feature begins with a two page photo spread, depicting what appears to be corner and end views of either HUD Code manufactured home sections, or modular home modules – both unsheathed, parked on a factory floor somewhere.

However, there’s absolutely no mention whatsoever, anywhere in this feature, of any sort of factory – built housing, and how it might relate to the title of the piece: ‘Victory over Vacancy’. But, that in itself is not surprising. As a 30+ year, now Emeritus Certified Property Manager® member of IREM®, I can’t recall the last time their in – house organ, JPM, published anything about the landlease (f.k.a. manufactured home) community income – producing property type. Back in the 1980s & 90s, I regularly penned articles, on this subject, for the magazine; enough to be inducted into IREM’s Academy of Authors, but nothing during the past ten years or so.

And there is indeed a ‘Victory over Vacancy’ story to be told, about the landlease community realty asset class. At this point in time, I have no idea whether IREM’s JPM staff will accept the ‘response article’ I’ve penned, for publication in an upcoming issue of the magazine. Irregardless, it will run in the September issue of the Allen Letter professional journal. So, if not already a subscriber, phone (317) 346-7156 to become one today.

The intimate circle of subscribers to the Allen CONFIDENTIAL! business newsletter, will get an advance look at the expose’ and ‘Victory over Vacancy’ piece in the August issue.

IV.

Our Very Own Tipping Point, and the Several Probable Consequences Thereof, Depending on Which Way We Tip

This time next year, national ADVOCACY; manufactured housing RESEARCH; and, landlease community RESOURCES will likely be significantly different, in small or large part, from what we experience, benefit from, and appreciate today.

How so? While not prepared or authorized to provide details at this time – as they’ve yet to be worked out and codified, here’s how the landlease community Advocacy, Research, & Resource business terrain appears to this industry observer today:

Advocacy. Since January 1996, all matters pertaining to (then) manufactured home community national (political & regulatory) advocacy have been handled by the Manufactured Housing Institute’s National Communities Council (‘NCC’) division, despite suffering no fewer than six different ‘executive directors’, and a more – than – a – year leaderless hiatus, during the past 16 ½ years.

Lisa Brechtel is not returning to head the NCC division, and it appears Bruce Savage’s firm will continue in that leadership role for the time being.

At present, NCC’s elected leadership is dominated by representatives from the among the largest landlease community portfolio owners/operators. It remains to be seen, if and or how, this weighted leadership presence impacts the council’s agenda and focus.

Research. While still a routine focus for GFA Management, Inc., dba PMN Publishing, it’s expected, once the 24th annual ALLEN REPORT is published in January 2013, a measure of – if not all, realty asset class research will gradually be assumed by the newly formed Center for Manufactured Housing Studies, officed in Athens, OH.

David Funk, a landlease community owner/operator, is leading this effort to bring academic style and quality research to landlease communities, manufactured housing, and affordable housing.

It’s hoped, by many of us in the manufactured housing industry and landlease community asset class, the CMHS will, in time, become the long – awaited Think Tank for our sector of factory – built housing, realty asset class, and affordable housing.

Resources. This third of the landlease community triad of ADVOCACY, RESEARCH, & RESOURCES, continues to be handled by the aforementioned Indiana firm. And here’s specifically where the tipping point comes into play this year and next….

One goal might be to see Advocacy, Research, & Resources gel well together, within as few existing not for profit, or for profit – if need be, entities as possible! In fact, there’s already a joint project underway, testing such a triparte alliance, realizing change will still have to occur in the near to interim future. The project? Final editing of the new book manuscript tentatively titled, Book of Formulae, Rules of Thumb, & Helpful Measures. Content editors are Bruce Savage of the NCC (Advocacy), David Funk of the CMHS (Research), and Spencer Roane, MHM® of Pentagon Properties in GA, assisting the author with the Resources aspect of the work. It’s hoped this ‘book of numbers’ will be printed, bound, and ready for distribution, to all registrants, at this year’s 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September. One more reason to go!

With that said though, there’s still precarious tipping ahead. Look at it this way: ‘WHO will lead the landlease community realty asset class into the future?’ An individual (Not me!), or one or more profit or not for profit entities? Let’s begin with the aforementioned Advocacy, Research, Resources triad. There’re at least three alternatives, and as of last month – a fourth, towards which this landlease community state of affairs might tip:

• MHI’s NCC division steps forward to add ‘comprehensive Resource servicing’, for landlease community owners/operators, to its’ day to day repertoire! Generally unknown, except to the 18 asset class pioneers who met 31 August 1993, to form the Industry Steering Committee predecessor to the NCC, the first of seven Strategic Objectives, penned at the time, read: “Share useful and accurate information within and outside the industry.” In today’s words, that’s landlease community ‘comprehensive Resource servicing’, based on Research, and in accords with issue and regulatory Advocacy. So, today there’s a very real opportunity for MHI’s NCC division to finally accomplish that Strategic Objective! Will it do so?
.
• MHI’s NCC division does NOT step forward, to add ‘comprehensive Resource servicing’, for landlease community owners/operators, to its’ day to day repertoire! Instead, it stands by the wayside, as this rare opportunity tips to another ‘for profit’ firm – like GFA Management, Inc., dba PMN Publishing, one willing and able to take over the responsibility of providing print and online media and communication, professional property management education and certification, as well as opportunities for national interpersonal networking, and deal – making. In a word, preserving today’s ‘comprehensive Resource servicing’ status quo, serving 50,000+/- landlease communities coast – to – coast.

• Or, in the minds of conscientious landlease community owners/operators, this Worst Case Scenario, where No One ‘steps up to the plate’, figuratively speaking – other than where the Research function is concerned, and this whole state of Resource affairs tips precipitously backward to where it was in 1980 – that’s 33 years ago, when there was NO knowledge of Who the property portfolio players were; NO property management ‘How To’ resources (books, forms), let alone PM training and certification; NO routine and regular print (monthly) and weekly (blog) communication among property owners/operators; and NO annual national interpersonal networking, educational, and deal – making opportunities designed specifically for landlease community aficionados. Wow! Is that even possible? It certainly is!

So, which way will landlease communities be tipping by the end of year 2012? Do YOU care? YOU should! What can YOU do, in the interim, to make your voice and preferences known? Just what was suggested earlier: BE where the action is, and talk with the Most Influential Persons in manufactured housing and landlease communities. BE a direct, dues – paying member of MHI’s NCC division, and stop relying on just what your state MHAssociation director may or may not be telling you about matters that’ll surely be impacting your near and interim business future! And know this, all parties involved in the first two of the three tipping point scenarios, will likely be present at the 21st annual Networking Roundtable in San Diego, CA., 12 – 14 September 2012. THEN would be an IDEAL time for YOU to get to know, maybe even influence, the future leadership of your preferred business model, the landlease community realty asset class!

• Oh yes, there is an additional, lately – emerging tipping point alternative. It’s one I’m uncomfortable writing about, in light of what you just read; but I’d be doing you an injustice if I didn’t share it, at least in part, with you. This fourth tipping point alternative, in some ways, is already in place. More than a dozen small mid – sized landlease community owners, some are small property portfolio operators, have already made their strong feelings known; that if the first two of the three above – described alternatives, don’t materialize in the relatively near future, they will NOT allow the third one (i.e. Return to 1980’s ‘nothingness’) to happen! Meaning? Well, YOU think about it. Frankly, I’m hoping our collective Advocacy, Research, Resources future will be nicely in place by ‘then’, and there will be no need for this fourth alternative.

And there’s this final, genuine concern, also expressed by other small to mid – sized owners/operators: If ‘the right people’, whoever ‘they’ be (My guess is passionate, capable, experienced, motivated landlease community aficionados), don’t assume control, ensuring continuation of Resources already in place, much of what exists today could well fade away due to benign neglect; in the end, effecting the third alternative by default. Pretty heady stuff wouldn’t you agree? What’re your thoughts on these alternatives?

Enough to think about during the week or two ahead? Certainly is enough for me. In the meantime, decide NOW when and where we’ll meet; where YOU will exert your influence as a landlease community owner/operator; and, be there! And while at one or more of the four upcoming events, engage in this telling exercise: Pay close attention to WHO is present and not present, from the major HUD Code home manufacturing firms, AND largest of the landlease community portfolio firms. You might be surprised who ‘doesn’t actively participate but inordinately influences’ industry and asset class issues and regulatory Advocacy matters.

***

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

Blog # 204 Copyright 2012 22 July 2012

Perspective. ‘Landlease communities, a.k.a. manufactured home communities, & before that, ‘mobile home parks’, are the real estate component of manufactured housing.’ GFA

Who are the 25 Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class?

&

You’ll See Some of Them August 6th, in Elkhart, IN.

&

Even More of Them, August 29th, in Atlanta, GA.

&

Most of Them, September 12 – 14, in San Diego, CA.

&

a Retraction

&

Time for YOU to become a Manufactured Housing Manager®?

**********

Who are the 25 Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class?

Not a day goes by, at our offices in central Indiana, that someone doesn’t phone or email seeking information about the HUD Code manufactured housing industry, or it’s real estate component, the landlease (f.k.a. manufactured home) community realty asset class. More often than not these individuals are looking for ‘someone to talk to’ about a specific need for statistics, assistance, resources, services, and the like. In a couple words, they’re seeking to connect with Influential People in our unique ‘double dual industry’.*1

Sure, we research and publish the annual ALLEN REPORT (a.k.a. ’Who’s Who Among Landlease Community Owners/operators Throughout North America!’) every January, and the popular ‘Who Ya Gonna Call in 2012?’ list of freelance consultants a couple months later. But know what? That’s not enough, and it’s high time we figure out WHO our most Influential People are, in the manufactured housing industry and landlease community real estate asset class, and announce their identities far and wide. *2

So, tell you what. Beginning with this blog posting announcement – what you’re reading right now; then, announcements in upcoming monthly issues of Allen Letter professional journal, we’ll start, with your input, cobbling that list together. And, depending on the volume and quality of response from YOU, we’ll endeavor to have this list of the ’25 Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class’ compiled and published this Fall, at the earliest; or included within the 24th annual ALLEN REPORT, January 2013, at the latest.

Who do YOU recommend and why? All you need do, is communicate one or more names of individuals, and a couple descriptive sentences about each one, as to who you think qualifies as among the ’25 Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class!’ Use the phone number listed in end note # 2 at the end of this blog posting; or FAX your recommendation(s) to (317) 346-7158; or email me via: gfa7156@aol.com, or even pen a note to: GFA c/o Box # 47024, Indpls, IN. 46247. Deadline? Let’s shoot for Sunday, 30 September 2012. That’ll be right after the next three, coast – to – coast gatherings of industry leaders in Elkhart, IN., Atlanta, GA., and San Diego, CA. Can’t spread important venues like those, much further across the U.S. than that, can we? And they are?

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RV/MH Heritage Foundation’s Hall of Fame Induction Banquet

WHERE? At the new RV/MH Heritage Foundation’s spacious and very attractive Hall of Fame Museum and Library facility at 21565 Executive Parkway, Elkhart, IN. If you haven’t seen or visited this protectorate of our RV/MH legacy, you really owe it to yourself to visit sometime! WHEN? How ‘bout Monday afternoon and evening, 6 August 2012. Come and experience ten of your RV & MHIndustry peers inducted into the prestigious Hall of Fame, amidst hundreds of the Most Influential People of the past 60 years, from the Manufactured Housing & Recreational Vehicle Industries! Reception begins at 5PM, followed by a gala banquet and induction ceremony, ending around 9:30PM that evening – and then, ‘the fun begins’… I certainly plan to be present. YOU? Phone (800) 378-8694 for more information and to register. A bunch of us are staying at the nearby (one interstate exit West of the RV/MH Hall of Fame exit off I-80/90) Hilton Garden Inn. Phone (574) 970-4444 to make a reservation. And tell you what. If you do attend, let’s ‘do breakfast’, the morning of 7 August, at the Golden Egg Restaurant, located out in front of the hotel, at 8AM. Just let me know ahead of time; again, using the phone number listed in End Note # 2. If you show up, I’ll have a gift for you! And, if you haven’t given me your list of Influential People beforehand, do so then!

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Southeastern U.S. Landlease Community Owners Symposium

Want to participate in an historic event? Plan to attend the Southeast Community Owners Symposium, or SECO, in Atlanta, GA., on 29 August 2012. What makes this an historic event, is that it’s the FIRST regional gathering of landlease community owners/operators, planned and hosted entirely by landlease community owners/operators for their peers! There’ve been symposiums before, in Atlanta, but as GMHA events. No, there’s not been an event like this, since the last National State of the Asset Class (‘NSAC’) caucus, in February 2010, when participants (manufactured housing producers & landlease community owners) ‘invented’ the Community Series Home (‘CSH’) design.

And this SECO, frankly, has similar potential to take landlease community owners/operators down new, exciting, and rewarding business improvement paths, without relying on state and national trade associations, to provide direction to get them there. For example, here’s what symposium planners have scheduled for their landlease community peers:

• Marketing Audit Reports on four landlease communities, complete with observations, recommendations, remedial actions taken, and end results!

• 21st Mortgage Corporation’s exciting and ground – breaking C.A.S.H. Program will experience its’ first regional presentation to landlease community owners!

• Roundtable Discussions led by Southeast Landlease Community Owners, who’ll identify and help parse the Biggest Issues facing the realty asset class today!

• Introduction of a new, broad – based media advertising program designed to drive qualified homebuyer prospects to communities selling new homes on – site!

WHERE? At the Hilton Doubletree Atlanta/Marietta Conference Center. Phone (770) 272-9441 to make a room reservation. WHEN? All day, Wednesday, 29 August 2012. To register, at only $75.00/person, go to www.sec012.org If you’d like to communicate directly with SECO organizers, reach Chris Nicely via chrisnicely1@gmail.com David Roden via davidroden@yahoo.com, or Spencer Roane via spencer@roane.com .

Once again, ‘Even More of the Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class’ will likely be present at this historic event. How ‘bout YOU? I certainly plan to be there. For that matter, I plan to arrive the day before – to visit friends and acquaintances in the area, and Welcome an opportunity to network and socialize with YOU, the evening of 28 August. Are YOU interested? If so, ask any of the three aforementioned SECO organizers for specific location and time details. And, when we are together, give me the names of your Most Influential People! See YOU there….

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21st Networking Roundtable just gets ‘gooder and gooder’!

Yep; September 12 – 14 is rapidly approaching. We’re already halfway to our planned attendance of 200 landlease community owners/operators, a dozen of their preferred realty – secured mortgage lenders, and nearly two dozen superb presenters! And let’s not forget Richard Lederer, our guest luncheon speaker, author, humorist, and San Diego newspaper columnist! Frankly, I expect this year’s Networking Roundtable to be, far and away, the Biggest & Best in 21 years. Why? Location; superb lineup of presenters; incomparable social networking, a need to share Lessons Learned during these difficult economic times, and the best deal – making anywhere. Need I say more?

Here’s a minor – though – major tweak to the Roundtable agenda. Robert Coldren, esquire, will be holding forth on the timely topic: ‘How Landlease Community Owners Can Increase NOI & Avoid Pratfalls When Dealing with Trash & Cable TV
Contracts!’

OK, if you haven’t yet registered for this year’s 21st Networking Roundtable in San Diego, phone the MHIndustry HOTLINE listed in End Note # 2 at the end of this blog posting. We’ll email, FAX, or snail mail you the agenda and registration form to you.

And, this’ll be the final opportunity for YOU to give me your recommendations for the ’25 Most Influential People in the Manufactured Housing Industry & Landlease Community Realty Asset Class’! How will the selection be made? Since there’s already a core of ’18 Pioneers’ who’ve recently helped plan the succession of ‘comprehensive resource servicing’ for landlease community owners/operators nationwide, might as well supplement their number with a few manufactured housing leaders, to cull the list, if necessary, to the Best 25. YOU have a better idea? If so, let me know…

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a Retraction

In my April 22, 2012 blog, I indicated ‘Mobile Home Park Investors Boot Camp’ misrepresents and disrespects the vast majority of landlease communities across the country. This statement was false and inaccurate and I apologize for any defamatory effect it may have had.

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Time for YOU to become a Manufactured Housing Manager®?

One of the goals, I’d like to accomplish before I semi – retire from the manufactured housing industry and landlease community realty asset class, is to have trained and certified 1,000 Manufactured Housing Managers® or MHM®s. And we’re pretty close, maybe only 100 – 200 yet to go.

But the point really is this: During these difficult economic times, for just about everyone in ‘housing’ of any sort, YOU owe it to yourself, as a property owner or manager, as well as your employees and managers who operate one or more landlease communities, to join the ranks of professional real estate managers nationwide! How to do this, within our unique, income – producing property type? Enroll them in the seven lesson MHM® correspondence course; ask your state MHAssociation executive or governing board chairperson, to schedule the one day MHM® class in your locale; or, if a portfolio owner/operator, invite me to hold one or more of the one day regional MHM® training and certification classes for your landlease community and regional property managers! There are no tests. And all three venues are the same price, just $250.00 per individual. What do they get for that registration fee? A copy of the classic, Landlease Community Management textbook, a monograph of contemporary MHIndustry ‘readings’, gold MHM® lapel pin, and their frameable MHM® designation certificate!

To schedule a class, have your state MHAssociation executive, or YOU, phone the MHIndustry HOTLINE number listed in End Note # 2, and talk to me about it. And when a state association schedules a class with more than ten individuals, they receive a $50.00/person stipend for every additional registrant above that number. And the registration fee covers my travel expenses.

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End Notes.

1. ‘double dual industry’ = trade vernacular for manufactured housing industry’s home ‘fabrication & delivery’ functions; and landlease community ‘development & investment’ functions.

2. For more information on either of these reports, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Know that the ALLEN REPORT is available only with a $134.95 annual subscription to the Allen Letter professional journal; and the ‘Who Ya Gonna Call in 2012?’ is ‘free for the asking’.

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