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

‘Why I Belong!’, but Chafe All the Way to & from Association Meetings

&

‘Then There Were Twelve’ in October Meeting Hell!

&

‘Another New Book in Town, for Authors & Aspiring Writers!

I.

“When a large landlease community (portfolio) owner recently acquired one of our state’s trophy properties, the (on – site) manager was told their firm does not support state (manufactured housing) associations!” a state MHAssociation exec

&

“Gosh! Should have taken a swipe at (MHI’s) exorbitant ($500) registration fee (for annual meeting in October). Makes the (September) Roundtable look like a bargain basement event ($395).” An NCC member.

So read a couple remarks, about manufactured housing trade associations, gleaned from recent emails from by colleagues ‘in the business’. It’s been awhile since I’ve addressed the multifaceted, and sometimes controversial, topic of manufactured housing trade association support and performance.

Let’s begin with an article I penned 12 years ago, titled ‘Why I Belong…’ During the past dozen years, it’s been reprinted and distributed frequently, especially by state trade associations endeavoring to build their membership rolls. If you’d like a FREE copy, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

The gist of ‘Why I Belong…’ is nearly two dozen features (i.e. Good reasons to join and participate in your state trade association!); which are in turn grouped into four areas of emphasis: activities, information, publications, and benefits.

Activities. Depending on the socio – political climate in one’s state at the time, the scope and priority of association activities swings from lobbying, legislative, and regulatory – related matters of the serious sort, all the way to the best of informal, interpersonal networking available anywhere in one’s local and regional housing market. But non – joiners, like those alluded to in the above opening quote of this blog posting, can be extraordinarily difficult to recruit off the bench to become team players, when their abilities, views, and personal/corporate chemistry are unknown. This handicap is critical when top performance is needed in those occasional business games (conflicts) having potential negative impact on everyone in the same line of business. So, what to do about these folk? Go visit them on their turf, or when they ‘come to town’ to visit their local business. But don’t do it alone. A contact team should be comprised of like business owners, at least one of which should be an association board member; and possibly the association exec, with membership application in hand. It works. Been there; done that!

Information. I find this grouping inseparable from aforementioned ‘activities’ and not yet described ‘publications’ aspects of manufactured housing trade association existence. During the past three decades I’ve interacted with most state trade bodies, and have yet to find one that does an even marginal job researching and publishing contemporary data and statistics demonstrating the economic impact of manufactured housing and landlease (nee manufactured home) communities on their respective state’s economic well being. Such ‘information’ directs and focuses an association’s activities (e.g. pro or con particular legislative initiatives, and aids membership recruiting), IF said association publishes online and print publications worthy of reading by members. For example, in 1998, the IMHA/RVIC prepared and distributed Indiana’s Recreational Vehicle & Manufactured Housing Industries, ‘An $8 Billion Building Block for Indiana’s Economic Success’. At the time, this brief but attractive and chart – filled report was impressive and helpful. Has it been updated since? No. And how ‘bout landlease community ‘stats’? It’s taken 30 years to build the body of knowledge we use now. What happens to all this when I retire during the next year or two? (Come to the Roundtable next month to learn of one alternative. GFA)

Publications. OK, I’ll admit it. This is a favorite personal hobby horse. Sure, print publications are more difficult and expensive to prepare, publish and distribute, than online versions. However; how many state manufactured housing trade associations have really ‘taken the time & made the effort’ to determine how much of their decline in membership, these past ten years, can be attributed to reduced communication in this admittedly difficult economic business climate? I don’t have a definitive answer to that challenge, but wish I did. Of this I am certain though; among landlease communities, large properties and portfolios are well suited to use electronic media. But, among the 85 percent majority of LLCommunities nationwide (i.e. Those with fewer than 100 rental homesites apiece), these generally eschew the ever – changing technological business equipment bandwagon, characterized by hardware obsolescence and ever – evolving software, aggravated by personnel attrition. Does your state MHAssociation still regularly publish a print publication? If not, it should it? And frankly, the sale of ads in any such publication not only offsets printing and mailing costs, but can put extra dollars into the association treasury as well.

Benefits. This one is all over the spectrum. Some state manufactured housing associations negotiate group access to insurance programs, express shipping services, travel planning agencies, and much more. Other state associations, particularly the smaller ones, simply don’t go there. Should they? In my opinion, Yes – but only services clearly desired by members, and once contracted, well – coordinated with a fresh and aggressive new member recruiting program. Otherwise, benefit programs have a tendency to lie unused on the shelf, just like tired association and board members. And, when you get right down to it, the aforementioned activities, information, and publication aspects of trade association activity are benefits as well! Where else can one go to ‘talk shop’ with one’s peers about the finer points of the manufactured housing and landlease community business? And information. Our industry/asset class, in my opinion, does a generally lousy job providing timely information we can use, especially on the state level; and that what which we do have, is best shared with members and non – members alike, via a seriously depleted online and print trade press.

In summary, and on a personal note. My firm makes it a point to belong to state manufactured housing associations, and local chambers of commerce, wherever we have lively business interests; right now, in two states. This way we generally, though at times imperfectly and slowly, know ‘what’s going on’ where we do business. And, in the case of the local Chamber of Commerce, as members, we’re always the only landlease community whose literature (brochures and business cards) are in full view wherever the chamber has a presence! And when we attend chamber functions and socials, we – by association – raise our image, as we rub shoulders with the businessmen and women of the local housing market we serve. Have never figured out why more LLCommunity owners/operators don’t avail themselves of this supremely effective way of showcasing our properties, as well as generating leads and prospects. But one just can’t sit there and wait for the business to come. Like Tom Peters wrote years ago, it’s all about getting up off your duff and practicing ‘Management By Walking Around!’

Trade associations on the national scene? Quite a bit, maybe too much, has been opined in that direction of late. And sadly, no matter what’s said or printed past, present or future, it’s highly doubtful, at least in this industry observer’s opinion, anything is going to change anytime soon! Why? The ‘big vs. small business’, ‘anti – regulatory vs. conciliatory’, and ‘all – inclusive’ vs. ‘diverse bodies’ manufactured housing views and association loyalties run deep, very deep. It’ll take one very charismatic, widely popular, successful business leader, to effect lasting and significant, much needed change, or wholesale displacement of myopic territorial posturing, from the top all the way down.

As a somewhat related aside, I was reflecting recently how a couple of the truisms, in the ‘Scintillatingly Salient – but – Salacious Secrets to Business Management Consulting Success’ chapter of my Chapbook of Business & Management Wisdom, result from more than 30 years of trade association interaction, e.g.

‘When participating in national business and trade association activities and politics, possess sufficient resources and support to participate independently, or wind – up being the ever – present, obvious, and tiresome suck – up.’ Two corollaries. First; if a freelance consultant turning out worthy work (books, training, etc.) participate in national meetings to protect one’s proprietary materials from trade association ‘insider’ imitators. And second; go nowhere (e.g. national meetings) without covering one’s travel expenses – and more, with billable work from clients in the geographical area where the event is being held! Believe it. On the average, it costs $1,000 to $2,000 to attend most national gatherings, that’s a fair amount of billable time to have to cover.

‘Don’t rely on trade association executives for steady, if any, billable work! References maybe. Some are among the most multi – faced (that’s because they’re more than two – faced) folk on earth; others might become loyal supporters – especially when they want free information and seminars. They’re ego managers who clearly know who signs their paycheck.’ Corollary. Be aware – and beware, state association executives who’re ‘national association loyalists’. If or when you run afoul, rightly or wrongly, of ‘the national powers that be – or those who believe they’re powerful’, there’s often a trickle down effect among state hangers – on. It’s what I have long reasoned to be, for no invitation to address members in a few states (CA, FL,MI, OH, KY & GA – until recently) during the past three decades. But that’s OK; for it’s better to know who one’s detractors are, than to always wonder….

What have been your recent experiences within and outside state manufactured housing and landlease community – oriented trade associations? How do YOU think state execs can improve on, even reverse, the present general malaise existing among manufactured housing associations nationwide? There’s one anecdote, out and about these days, of an association exec, having been told his six figure salary was at risk, went out and in the space of a week or two, recruited enough new dues – paying members to short circuit that cost – cutting measure. And there’s a relatively new exec, loose in New England, who near single – handedly has turned the fortunes of her association positive, in little more than a year! And yet another exec who’s made an art of serving members’ education and information needs by planning and facilitating annual Super Symposiums, even hosting Manufactured Housing Manager (‘MHM’) professional property management training and certification classes! What has your state exec done for YOU of late? An inquiring blog readership would like to know.

***

II.

Yes, now there’re no fewer than 12 manufactured housing and landlease community – related meetings scheduled during the month of October 2012! That’s a one day meeting every 2 ½ days. Whew! Again, if you’d like a complete list of what’s probably soon to become a true Bakers’ Dozen (i.e. ‘13’) meetings in October, get hold of the September 2011 issue of the Allen Letter professional journal, by phoning the aforementioned MHIndustry HOTLINE or (317) 346-7156.

***

III.

Last week we introduced blog floggers (readers) to Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing. Book sales are already brisk at $24.95 each, post paid! And several portfolio owners/operators have ordered copies for all their properties (e.g. five or more copies @ only $20.00 per copy, and PMN Publishing will absorb the postage and handling fees). To order, or for more info, call the MHIndustry HOTLINE or (317) 346-7156.

Well, this week, we’re debuting a booklet titled Collection of Figurative Language & Figures of Speech. The research for this book, containing no fewer than 80 different ‘figures of speech’ extends back more than two decades. The book is also a tribute to Margaret J. Allen (My mother, on her 94th birthday this past week), and is dedicated to my father. Longtime friends ‘in the MHBusiness’ will recognize the short (biographical sketch) story ‘Big George’ contained therein.

Anyway, this little gem of a reference is being marketed for only $19.95 postpaid. If you’re a lover of the English language, a published author, an aspiring writer, and or parent or relative or friend of someone who is, this would be a nice gift and helpful resource for them! Available only from PMN Publishing via (317) 346-7156.

***

IV.

Signed up to attend the 20th International Networking Roundtable yet? As of today (8/14/2011) the annual event, designed especially for landlease community owners/operators, is but a month away: 14 – 16 September 2011, at the Hyatt Regency Hill Country Resort & Spa on the West edge of San Antonio, TX. Already appears we’ll not have any ‘walk ins’ this year, as it appears we’ll be at our max of 200 registrants before we arrive! So, don’t be left out, phone the aforementioned MHIndustry HOTLINE today and request an agenda and registration form. Biggest pleasant surprise to date? The number of sponsors stepping forward to offset the costs of this year’s mega event, where we’ll be celebrating the 75th anniversary of the Manufactured Housing Institute, 20th anniversary of the Roundtable per se, and 15th anniversary of MHI’s National Communities Council! See YOU there!

***

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class

Friends of George Allen

&

This Belongs in Every Landlease Community in the U.S.!

&

‘Whattaya Expect?’

I.

Friends of George Allen. What do the Wellfield Botanical Gardens, RV/MH Museum & Library, Chubby Trout bar and grill, and Golden Egg restaurant have in common, besides being located in Elkhart, IN? They are places where ‘friends of George Allen’ gathered on 1 & 2 August to celebrate with this year’s Class of Inductees into the RV/MH Heritage Foundation’s prestigious Hall of Fame.

August 1st also marked Carolyn Allen’s return to manufactured housing’s business and social networking circles, following an absence of 6 ½ years, during which he cared for her Mother Flossie, who lived to be 98 ½ years old.

Accompanied by my younger brother Mark, who flew in from Cape May, New Jersey for the festivities, and following a three hour drive from Indianapolis, our first stop was in Elkhart, to visit the corporate offices of Heritage Financial. There we reunited with friends and landlease community portfolio owners Craig and Connie Fulmer, who took us for a walking tour of the city’s new Wellfield Botanical Gardens. This was a special treat; seeing how Elkhart’s business and philanthropic community are rejuvenating the city’s waterworks (Hence the name Wellfield) featuring a host of sponsored gardens; a large quilt centerpiece comprised entirely of flowers, fronted by a pond; even the functioning pump houses have been redecorated as period structures – one as an estate gatehouse surrounded by an English garden.

Arriving at the RV/MH Heritage Foundation’s museum, library and Hall of Fame facility, Carolyn and Mark were given a tour of the exhibit halls by Wisconsin Housing Alliance executive, and Hall of Fame member, Ross Kinzler, while I circulated, looking for ‘friends in the business’ I hadn’t seen in awhile.

Almost 400 ‘friends of ten Hall of Fame inductees’ gathered for this year’s banquet and celebration. At our two tables, with Carolyn, Mark and me, were our adult children Susan McCarty, co – owner of Spotlight Strategies in Franklin, IN., and her brother Adam, Certified Financial Planner with Capstone Investment Partners in Greenwood, IN. Ed Clayton, MHM, 25 year manager of our landlease community, along with his brother Jack, drove in from central Illinois. And Tim Newby, principal of Newby Management, and author of the Foreword to my new book, flew in from Ellenton, Florida. Dr. David Funk, head of the graduate real estate program at Cornell University traveled from Ithaca, New York; and John and Sonja Rogosich, CPM, drove in from Chicago.

Other key members of this intimate group were Ken and Donna Rishel, of Rishel Consulting, Springfield, IL; and Dennis Ohnstad, landlease community owner, and former MHRetailer, hailing from Champaign-Urbana, Il. Rick Roethke, principal of Barrington Investments, and his CEO Glen James drove up from Indianapolis. Landscape architect Don Westphal, like realty loan specialist Luis Vela, drove to Elkhart from Michigan. And Paul Bradley, head of ROC-USA, flew in from Concord, New Hampshire. Additional landlease community owners/operators present for the evening’s celebration were Jodi Kirincich, chairperson of Illinois MHA; Greg Pardiek recent past chairman of Indiana MHA; Hall of Fame member Mel Fath and his wife Thelma; and several others. Most of these individuals received free copies of my new book, debuting that evening, Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, PMN Publishing, 2011. (See Part II. following)

Not important enough to specifically identify, but ‘telling’ nonetheless, were individuals usually present at the annual Hall of Fame Induction Banquet, but not in attendance this year. However, Danny Ghorbani, of the Manufactured Housing Association for Regulatory Reform (‘MHARR’) was on hand to celebrate member Jim Shea Jr’s (of Fairmont Homes) induction into the Hall of Fame. But there was no national support, of this nature, for two former MHRetailers and one Industry Person of the Year.

Following the banquet, and induction of the Class of 2011* into the RV/MH Hall of Fame, more than a dozen of us reconvened at the nearby Chubby Trout bar and grill, to celebrate and engage in enthusiastic interpersonal networking, highlighted with Mark’s ‘fish stories’, some ‘captive finance’ banter, trade association woes, and photos from our recent trip to San Diego, California, to see our grandson Travis graduate from USMC boot camp. Next morning, a dozen or so ‘friends’ gathered at the Golden Egg restaurant to further enjoy one another’s company – and some good country cooking.

Yes, for many reasons, that was a 24 hour celebration among friends, to long remember and appreciate. Visiting the Wellfield Botanical Gardens with the Fulmers, celebrating my three decade career with friends, and simply enjoying one another’s presence and camaraderie throughout. So, to those of you who made the effort to participate, my Sincerest Appreciation! And those of you who couldn’t make it? The 20th annual International Networking Roundtable (‘INR’) is on the horizon (14 – 16 September, in San Antonio, TX.). We’re already at 100+ and ‘counting’. Are you registered yet? Use the INR brochure, if you have one; or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156 to do so by phone!

II.

This belongs in every landlease community in the U.S.! WHAT? The new book for landlease community owners/operators you just read about in Part I of this blog posting!

Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing was researched and penned for WHO? You, if you own and or operate even just one landlease (nee manufactured home) community! Some portfolio owners/operators have already placed orders to put a copy of this paperback in every one of their landlease communities! Why not do the same?

WHY buy? This is the first time in industry (i.e. manufactured housing) and realty asset class (i.e. landlease communities) history, a significant number of important events – from 1988 through 2011, relative to this unique type income – producing property have been collected, organized, and published as an historical retrospective. In addition, there’s an entire chapter dedicated to the ‘facts & figures’ every owner/operator needs to know! Furthermore, nearly all the dozen or so Signature Series Resource Documents (‘SSRD’) are included in the tome as well! Plus, a nod to the ‘affordable housing’ concept presently dormant – but hopefully stirring, throughout the HUD Code manufactured housing industry! And know what else? No fewer than 50 notable individuals, all from throughout the landlease community asset class, and its’ history, are identified and lauded in this book

HOW MUCH? Only $24.95 postpaid, for this 88 page paperback. WHEN & WHERE to order? Today, simply phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156. Credit card orders welcome!

Frankly, as this Part II blog subtitle suggests, ‘This (book) belongs in every landlease community in the U.S.!’ So again, consider ordering enough copies for your property or properties today! And while you’re at it, register to attend this year’s Triple Anniversary Networking Roundtable, 14 – 16 September 2011, at the Hyatt Regency Hill Country Resort Hotel on the west side of San Antonio, TX. When you phone, ask for a brochure, if you don’t presently have one.

III.

‘Whattaya Expect?’ A short and true story by Spencer Roane, owner of Pentagon Properties headquartered in Atlanta, GA., and present day industry expert regarding use of the self – finance ‘lease option’ in landlease communities. *2

“Last month, a lady at one of our landlease communities walked into the office, handed the keys to her ‘doublewide’ to our manager, and asked him to call her finance company and tell them to come get the house. This morning, I received an email note from another property owner describing a similar incident in one of his landlease communities. In both cases, the residents had excellent site rent payment histories. In both cases, finances had gotten a little tight, work needed to be done on the homes, but the homeowners realized they still had 70 percent of their original loan yet to pay, despite making payments throughout the past 15 years.

As similar scenes continue to play out in one landlease community after another, across the country, property owners shake their heads and wonder how anyone (lenders) could be dumb enough to structure such high – interest, 25 year term loans on depreciating assets; and slick enough, to sell millions of dollars of such loans to Wall Street investors; or someone dumb enough, to buy those ‘asset based securities’?

Unfortunately, that’s only the tip of the iceberg, regarding financing mistakes that have taken the manufactured housing industry from producing lots of homes, and having many independent, third party chattel lenders to choose from; to today, shipping very few new homes, with few – if any, lenders to choose from. ‘Back in the day’, most manufactured homes were sited and financed within landlease communities. If the lender needed to get a message to the borrower, he called the property office and asked someone to pass the word. If the borrower defaulted, the home was easily secured, efficiently rehabbed, and quickly resold.

Then someone decided, if financing manufactured homes on rental homesites was good business, financing such homes affixed to real estate conveyed fee simple, must really be good business! Unfortunately, it didn’t matter (to them) the real estate was on a gravel road across from the county dump. As soon as the homeowner changed phone numbers, the centrally – located, highly efficient call center became as useful as ‘a toter without granny gear’ (i.e. transporter sans slowest crawling gear). By the time the lender repossessed the manufactured home, everything but the shell of the house had ‘walked away’ – including appliances, A/C, light fixtures, sinks, lavatories, and toilets. The first move of the home then, was to a retailer’s rehab facility, where technicians attempted to work miracles on the ‘pigs ear’. Then came the mega challenge of selling the used home, as it sat among many sparkling new ones. Finally, along comes move number two, another 25 year loan, and yet another train wreck leaving the station.

No industry can survive without financing – but financing depreciating assets in the middle of nowhere, over 25 years, at excessively high interest rates, isn’t going to work with those (homebuyers or lenders) whose idea of long range planning extends only to next week. Most landlease community owners, however, are willing to work with lenders to create on – site financing programs that’re Win – Win – Win transactions for the lender, community owner, and home buyer – not to mention factories, transporters, installers, and service suppliers. Many community owners are even willing to guarantee the loans on homes in their properties; and, some will even fully collateralize default costs with liquid assets. Why not? These same community owners are often already financing their own manufactured homes on – site!

The S.A.F.E. Act, provisions of the Dodd-Frank bill, absence of independent third party chattel financing, presence of Community Series Homes (‘CSH’), marketing efforts of Business Development Mangers (‘BDM’), inability of prospective homebuyers to qualify for site – built home mortgages, reasonable rental homesite rates in landlease communities, and the increasing demand for truly affordable housing have, all together, created an unprecedented financing opportunity for chattel lenders willing to think ‘outside the (present day, malfunctioning) box’. For example: ‘Do business the old fashioned way!’ How? Reread last half of paragraph three above. What’s next? Get community owners and chattel lenders together, to come up with a financing program that’ll really move some manufactured homes!” SR (Anyone listening at MHI???)

Blogger’s note. If ‘chattel finance’ – or lack thereof, is indeed a hot button topic for YOU, be present at the aforementioned 20th annual Networking Roundtable in San Antonio @ 14-16 September, to discuss the matter with landlease community owners/operators and chattel lenders! Already, more than 100 executives are registered to attend, and while the majority is indeed landlease community owners/operators, chattel lenders and finance service firms too are signed – up, and (hopefully) prepared to listen and discuss. Then, two weeks later in early October, the Manufactured Housing Institute (‘MHI’) will host its’ annual meeting in Phoenix, AZ. So there we have the potential for a One – Two Punch, to effect needed traction on this strategic matter! And whether those two sessions wind up being for naught – or are indeed successful, know there’re preliminary plans afoot to convene in January or February 2012, for a third National State of the Asset Class (‘NSAC’) caucus, likely in Florida, to – for lack of a more apt description – ‘force the issue(s)’, one way or another! Let me know if YOU want to be part of the NSAC caucus planning process, as I’ll need the help (Already have some volunteers). In the meantime, get registered to attend the Networking Roundtable in September! MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156. To register for MHI’s annual meeting, phone (703) 558-0678 & ask for Thayer Long.

***
End Notes.

1. George Allen; Robert Azevedo; Leonard O. Brown; Harold (Hal’ Gerring (deceased); Bill Gorman (deceased);Larry Huttle; James Knott; John Martin; Mike Schneider; and, James F. Shea, Jr.

2. If you’d like a free reprint on this subject (‘lease options in landlease communities’), phone (317) 346-7156 and request it.

***

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

‘What I’ve Waited 33 Years to Say!’

(George Allen’s RV/MH Hall of Fame Induction Remarks, 1 August 2011, at RV/MH Heritage Foundation’s Museum & Library, in Elkhart, Indiana)

I.

Like the haircut? Two weeks ago, as Carolyn and I prepared to join our daughter Susan and her husband Drew, at their son Travis’ graduation from USMC boot camp in San Diego, CA., I decided to make an effort to look like the retired Marine Colonel I am, at least from the shoulders up, by getting a ‘high and tight’ military style haircut! What you see tonight is two weeks of gray fuzz growing back.

As I begin my remarks this evening, upon induction into the RV/MH Heritage Foundation’s prestigious Hall of Fame, I’ll keep that salient old ‘3 – Bs Rule of Public Speaking’ in mind; that is, to Be Brief, to Be Sincere, & to Be Seated! So first, some Brief and Sincere Thank You’s, followed by a few cherished memories…

I’ll start by expressing heartfelt gratitude to Carolyn, my wife and companion these past 48 years that we’ve been parents, grandparents, business partners, and now, great grandparents together! She deserves this induction honor as much, perhaps more so, than me, given what she’s had to put up with over the years.

And personal appreciation to John Rogosich, fellow Certified Property Manager and landlease community consultant, for nominating me for induction into our industry’s prestigious RV/MH Hall of Fame.

In like manner, I’m especially grateful to the many landlease community owners and operators, throughout the U.S. and Canada, I count as friends, clients, and associates – especially those gathered here tonight – for encouraging me, and supporting our firm’s work, in their behalf, these past 30 plus years!

Last but hardly least, a sincere and hearty ‘Thank You’ to three men who’ve never met.

Rollin Jackson launched my professional property management career, when he hired me as a regional apartment manager 33 years ago; then shortly thereafter, reassigned me to manage four large but troubled ‘mobile home parks’ he and his brothers owned in Indiana and Kentucky. In some ways, that two year ‘baptism by fire’ property management experience was similar to going into combat for the first time in Vietnam – only this time, no one got killed. And it taught me ‘the business’ well, setting the stage for my future as a real estate investor, property management consultant, and author.

Randy Rowe; good personal friend, long time encourager, industry trend spotter, and faithful supporter of our firm’s research and resources pertaining to landlease communities. Manufactured housing industry aficionados and landlease community owners, for the most part don’t know it, but they owe Randy Rowe one major debt of gratitude, for ensuring the impetus of this realty asset class’ body of knowledge, and the effective national advocacy it enjoys today!

Ed Clayton, certified Manufactured Housing Manager, our best and only landlease community manager, for my business partner and me, during these past 25 years! Ed manages our property ‘like he owns it’, and has become a friend, in addition to being a key employee.

Read much more about each of these outstanding individuals in the Dedication section of my new book, on sale at the RV/MH Hall of Fame*1, or from PMN Publishing*2, titled:

Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, PMN Publishing, Indianapolis, IN., 2011.

As I bring these induction remarks to a close, I want to share a few brief pivotal points in my life…

Meeting and falling in love with Carolyn, at Eastern Baptist College, now Eastern University, in 1963. She looked really good then, even better today! I’d gone there to become a pastor, but obviously took a big detour. However, my faith as a Christian has under girded most of my personal relationships, our family life, as well as my business, writing, and military careers.

Next, stepping alive and whole, back onto U.S. soil in 1969, following a an exciting, demanding and traumatic 13 month combat tour of duty in the Republic of Vietnam, as a U.S. Marine engineer officer and company commander. That day, first in California and then in Philadelphia, was at the same time, a profoundly sobering and exhilarating experience I will never ever forget!

Memories of the births of daughter Susan and son Adam; and in time, their spouses and six children coming into our family, and now two great grandchildren, Hunter and Peyton. How very blessed we’ve been and continue to be!

My business partner and I buying our first ‘mobile home park’ in the early 1980s with $500,000 in borrowed cash, then selling it two years later for five times that amount. Exciting? You bet it was!

Writing and self – publishing my first book Mobile Home Park Management, way back in 1988 was a novel experience; then authoring and editing nine more books since then…

And, frankly, being here tonight, amidst friends and associates from throughout the MH & RV Industries. And certainly not to forget my brother Mark, another retired Colonel, who flew in from Cape May, New Jersey, to share this memorable evening with us.

Thank You All!, as I now deliver on that ‘third B’ and ‘Be Seated!’ GFA

NOTE to blog floggers (‘readers’): Probably too late for you to register to attend this
1 August 2011 gala affair, but ‘just in case’, phone either number listed in End Note # 1, and head towards Elkhart, IN!

II.

My Take on the Matter….

Earlier this month I was asked, by a consulting client, to summarize circumstances I believe deleveraged the manufactured housing industry enroute to the miserable shape it’s in today; and, what landlease community owners may have done, in my opinion, to screw up their own business model. I’ll begin with the (edited) paragraphs I penned, in response to that request; then conclude with a column paragraph published in the July issue of The Journal – followed by commentary.

“In my opinion, the Catch – 22 situation in which manufactured housing and landlease communities find themselves today, has two starting points.*3 The first, and not necessarily sequential event, occurred in the mid to late 1990s, when – as part of the property inventory consolidation trend – several new real estate investment trusts (‘REIT’s) chased Wall Street stock analyst expectations, and eventually pronouncements, that landlease (nee manufactured home) communities were indeed ‘growth stock performers’, NOI – wise.*4 But NOT! That’s when rampant (operating) cost cutting and rent increases began, soon spreading to some large, privately – owned property portfolios; and eventually, leading to the dire consequences (i.e. dropping occupancy and profitability) we see today, as more and more landlease communities suffer forbearance and or foreclosure proceedings.

At the same time if not before, HUD Code home manufacturers ‘seduced themselves’ into competing head – to – head with production site builders, in search of greater market share and profits; you know, the cash flow siren song of ‘bigger box = bigger bucks’. This business model shift, was for awhile, characterized by the now defunct ‘land – home package’ realty/home sales trend, and the eventual disappearance of 90 percent of independent MHRetailers nationwide. This latter phenom, likely due to too few sources of third party chattel finance for home sale transactions – another sad tale; plus, the gobbling – up of independent retail sales centers by cash flush manufacturers requiring more ‘company stores’, to overload local housing markets with inventory glut. Together, this absence of chattel finance sources and disappearance of MHRetailers, marked the near end of building and selling smaller ‘affordable’ singlesection (nee singlewide) and multisection (nee doublewide) manufactured homes for marketing and sale into landlease communities – the very business model that facilitated 1972’s 575,940 ‘mobile home’ shipments, and the industry’s too brief renascence in1998, when 372,843 new manufactured homes were shipped. Today, the manufactured housing industry ships but 50,000+/- new homes per year – in 2008, 2009, 2010, even fewer (likely) during 2011, given year to date performance.” GFA

Then there’s this one sentence summary paragraph, on different yes, but tangentially – related topics, from a column, penned by Danny Ghorbani, and published in The Journal (July 2011), and titled:

‘Saving Independent Retailers and Communities’:

“In MHARR’s view, retailers and community – based entities face a clear choice – continued dysfunction and decline, or a change to a new national level industry representation structure to lead the industry back to real prosperity.” Huh?

Most blog ‘floggers’ are business savvy and critical observers of all things manufactured housing and landlease community wise. So let’s parse what’s opined here. First, lumping MHRetailers and landlease community owners/operators together is a big mistake. They’re significantly different business models, hailing from different major segments of the manufactured housing industry and landlease community real estate asset class duo; MHRetailers are akin to the MHIndustry; and landlease community folk to real estate development and investment. Sure, there’s crossover – or at least there was (Reread the opening paragraphs of part II of this blog posting), a decade or so ago. Today? Many, if not most landlease community owners/operators, particularly property portfolio ‘players’, have become on – site MHRetailers by default; but much different from ‘street dealers’ of years past.

Continued dysfunction and decline? Dysfunction? Who?, What?, Where?, When?, Why?, & How? – the ‘Four Ws & H of basic trade and secular journalism’. No really illuminating answers provided in this paragraph or column! And decline? Sure, especially among MHRetailers; again, 90 percent of them are gone, some bought – out by HUD Code home manufacturers, others now contractors, but most ‘out of business’. And LLCommunity folk? In terms of national physical occupancy, yes, we’re slipping. BUT, show me a LLCommunity owner who didn’t overpay for his/her property acquisition (i.e. Didn’t ‘buy on the come’, as in ‘rent increases to come’ – that never did!), and or has paid down their mortgage, and I’ll show you a generally healthy business model that’s frequently selling, even self – financing new and resale homes on – site, to ‘get the rent meter’ a – running and to keep it running. How much so? Just among the 500+/- known portfolio owners/operators of this unique income – producing property type, $3.5 billion by the end of 2009, and in increase to $5.2 billion by year end 2010, according to the 22nd annual ALLEN REPORT. And these 500+/- ‘players’ control but only 15 percent of the national inventory of landlease communities! Surprised? You wouldn’t be, if your get your hands on an ALLEN REPORT every January….

So, with such flawed writing, and lack of justified logic, in the referenced summary paragraph and column, we’re to run off willy nilly to ‘create or change to a new national level industry representation structure’? I think not – at least not until a far better case is made for considering doing so! And enhancing association executive job security should not be part of making that particular case.

But the columnist’s flailings do raise this larger question: Are the manufactured housing industry and landlease community asset class ‘matters’, described in the earlier paragraphs of Part II of this blog posting, exacerbated, unaffected, or resolved, by dint of ‘us’ suffering the consequences of the perennial rivalry between national advocacy bodies in Washington, DC., and Arlington, VA? Are the ‘attacker’, a.k.a. the Manufactured Housing Association for Regulatory Reform (‘MHARR’) and the ‘ignore the bully – some say watchdog – and he’ll go away’ Manufactured Housing Institute (‘MHI’) loyalists really serving our collective business needs in the best possible way and to the greatest degree possible today? My answer? No!

Is/are there practical answer(s) to this dilemma, stalemate, conflict, rivalry? Whatever it is, it’s going to have to be Solomonesque, for sure. We’ve been down this ‘attempted unity’ road before, several times; and every time, unsuccessfully. The alternatives? Leave well enough alone – believing ‘Conflict (as in competition) is good for the soul, if not business’ (In our case, ‘our conflict’ allows federal legislators to ‘divide & conquer us’, so to speak, when it comes to our effectively confronting onerous legislation – like what’s on the Congressional horizon at present!); or, Combine the divergent cultures into one new entity (‘Do I hear screaming in the background?’); Reorganize into two distinct halves or major segments, based on business type (e.g.manufacturers/distribution & realty development/investment), but under one banner; or, (‘Shutter the thought!’) Start over completely! What say YOU? Me? I’ve already said enough for more than one day, one posting.

Danny got this conversation started (again); how ‘bout if we attempt to embellish or finish it? Let me know your thoughts by phone (317/346-7156), email (gfa7156@aol.com) or letter: GFA c/o Box # 47024, Indianapolis, IN. 46247.

III.

In case you don’t know it, October Hell continues to Heat Up! How so? We’re now up to 11 MHIndustry events scheduled during the month of October 2011, and I’m told there’re more a – coming. Whew! For a complete list of these trade events, read the August issue of the Allen Letter professional journal! Order by phoning the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Only $134.95 for a 12 month subscription; or, $250.00 for said subscription plus a copy of the 22nd annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’). And while you’re at it, if not already registered for the Triple Anniversary International Networking Roundtable, occurring 14 – 16 September 2011 at the Hyatt Regency Hill Country Resort Hotel on the West edge of San Antonio, TX., do so soon! Why? We’re ‘more than halfway’ to our limit that can attend. Really hope to see YOU there!

IV.

Likely more details next week. But if you want to be the first on your block to own an advance copy of my newest book, debuts on 1 August 2011, at the aforementioned RV/MH Heritage Foundation’s annual Hall of Fame Induction Banquet, here’s the title, price, and ordering instructions:

Landlease Communities, Manufactured Home Communities, Mobile Home Parks, Trailer Courts & Camps, and Affordable Housing, George Allen, PMN Publishing, Franklin, IN., 2011. 88 pages.

There’re names, incidents, information, stats, and more in this book, you’ll refer to in seriousness and jest, for years to come. I’m finally penning material I’ve long wanted to publish. For example, and in addition to this soon release, later in August, PMN Publishing will sell my new writer’s reference booklet, titled Figurative Language & Figures of Speech. Now that was fun to finally put together.

Price of the Landlease Communities…book? Only $24.95 postpaid. See end note # 2 below. Wait till 3 August to phone though, or leave a message if calling sooner.

***

End Notes.

1. RV/MH Hall of Fame in Elkhart, IN. (800) 378-8694 & (574) 293-2344

2. PMN Publishing in Franklin, IN. (317) 346-7156. Book $24.95, including shipping and handling; $19.95 without shipping and handling fee.

3. Catch – 22 is a satirical, historical novel by Joseph Heller, first published in 1961, and set during latter days of WWII. The phrase ‘Catch – 22’ is oft used to describe ‘no – win’ and or ‘lose – lose’ situations or propositions where a person or entity indeed has choices, but no one choice leads to a net gain; a.k.a. ‘Darned if I do, Damned if I don’t.’

4. NOI = Net Operating Income, i.e. Gross (rent) receipts less operating expenses, but not debt service or mortgage payments.

George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &

Too Late or Not Too Late? Part II, maybe III.

“These rent, income, and demographic trends are staring the (manufactured housing) industry in the face, and are tremendous cause for optimism – it is great to see you calling that out.”
&
“Your challenge in paragraph four (of blog # 148, on 10 July 2011) is well stated, and I will be interested to see who the takers are.”

***
These are two of the shorter, but typical responses, to paragraph IV of the above – referenced blog posting, that began with these words: “OK, enough ‘reading between the lines’ for the time being. Let’s talk internal politics for awhile.”

All we’re suggesting then and here, in consecutive blog postings, is there’re two, maybe three, opportunities this Fall and Winter, to get a handle on the present day circumstances of the (1) landlease community asset class and (2) manufactured housing industry, by collectively discussing, debating, brainstorming, and planning our very future, by dint of ‘How to Save the Manufactured Housing Industry!’

Here’re the two, maybe three opportunities, in some detail:

I.

Triple Anniversary International Networking Roundtable.

This event occurs 14 – 16 September in San Antonio, TX. Be present to celebrate the 75th birthday of the Manufactured Housing Institute (‘MHI’), 20th consecutive annual International Networking Roundtable, and 15th year of MHI’s National Communities Council division! In addition to nearly two dozen presenters and panels covering timely and cutting edge landlease community – related topics, there’ll be dozens of landlease communities showcased ‘for sale’, ten interpersonal networking events, and plenty of opportunities for deal – making. The final session of this year’s Roundtable will be your opportunity to help chart the future of the landlease (nee manufactured home) community asset class, relative to statistics research and publication, print and online communication among portfolio owners/operators, professional property management training and certification, as well as the continuation of a dozen or more Signature Series Resource Documents (‘SSRD’s) used by landlease community owners/operators throughout North America. For information, visit this website, or place an email (gfa7156@aol.com) or telephone request (MHIndustry HOTLINE: 877/MFD-HSNG or 633-4764) today. Attendance limited to 200 registrants.

Manufactured Housing Institute’s annual meeting.

This event occurs 2 – 4 October in Phoenix, AZ. Agenda? Following is taken directly from an email message to members, dated 18 July: “Annual Meeting to continue work on MHI’s priority areas: Financial Regulatory Implementation and Overhaul; S.A.F.E. Act Implementation; GSE Reform and Government’s Role in Housing; Tax Reform and Energy Issues.” Nary a word about any priority relative to reversing the present shipment nadir bedeviling the manufactured housing industry.

Same communiqué goes on to say: “It takes the collective experience and ideas from all members to achieve the highest level of success with these very important issues. Your involvement in the Annual Meeting is essential to the industry’s commitment to growth.” OK, I can buy into all that; but frankly, why not after the word ‘success’, say/write ‘in rejuvenating the marketing, sales and production germane to HUD Code manufactured housing!’ In a word, so to speak, if MHI isn’t going to take steps to ‘Save the manufactured housing industry!’, who is? Your response to this expose’?

And if you own/operate landlease communities in the U.S., for sure plan to attend the regular meeting of MHI’s National Communities Council division during this time frame! The NCC is ‘the national forum’ where, in this industry observer’s opinion, the national grassroots effort to ‘Save the Manufactured Housing Industry!’ should begin.
For more information, visit manufacturedhousing.org or phone (703) 558-0678. And while you’re at it, if a landlease community owner/operator, and not a direct, dues – paying member of MHI’s NCC division, do so – by phoning Lisa Brechtel @ (703) 558-0666. Tell her ‘George sent me!’

Third National State of the Asset Class caucus.

This event is not scheduled at this time, but will likely occur during January or February 2012, somewhere in Florida, preferably on – site in a large landlease community – to lend ambiance to efforts to ‘Save the Manufactured Housing Industry!’

There’s ‘two for two’ success precedent to having a third National State of the Asset Class (‘NSAC’) caucus. While many manufactured housing aficionados are well aware of what occurred on 2/27/08 & 2/27/09, it’s worth taking a moment and two short paragraphs to summarize proceedings:

• 100+/- landlease community owners/operators, from throughout the U.S. convened at the FountainView (all adult or retirement) landlease community in Tampa, FL. Result? Agreement on five ‘suggestions, strategies, and or action areas’: 1) Importance of effective and ongoing political influence, and landlease community advocacy at local, state and national levels; 2) Getting the word out! Timely dual need for a national manufactured housing ad campaign and productive local housing market – tailored promotions; 3) Value Proposition. Ensure a fair interplay of housing product pricing, financing and value, with site rental and more; 4) Measure Customer Satisfaction via resident relations indicators, volume of home sales and site leasing referrals, and degree of tenant retention! 5) Financing and servicing of new and resale home transactions on – site, and financing of landlease communities per se. When one stops and thinks about it, all five areas have seen their share of trade press publicity, if not accompanying action, since first codified three and a half years ago!

• 100+/- HUD Code home manufacturers and landlease community portfolio owners/operators convened at the RV/MH Heritage Foundation’s new Hall of Fame, museum & library facility in Elkhart, IN. End result? For the first time in manufactured housing industry history, manufacturers and landlease community owners/operators engaged in open and spirited dialog regarding ‘What type homes the latter needed to fill vacant rental homesites’, and ‘What the former were willing to do to accommodate said needs’. It was as simple as that. Results? During the following twelve months, several manufacturers designed and built Community Series Homes (i.e. inexpensive singlesection & smaller multisection) – different from the Developer Series Homes (i.e. Bigger Box = Bigger Bucks homes shipped shortly before and after year 2000) for direct siting and sale within landlease communities. And a new job title and description emerged, that of Business Development Manager or BDMs – manufacturer personnel expected to ‘walk and talk’ landlease communities, to increase those firms’ market share!

Enter a third NSAC caucus. Whatever you read these days, in the trade press, there’s an increasing chorus, among journalists, publishers, and some state and national leaders, that something ‘big’ or at least ‘substantial’ needs to be done to get the manufactured housing industry back on track, in terms of annual new home shipment volume, or watch the industry continue its’ slide into eventual oblivion.

By year end, the future of landlease community research and resources should be secure, as a new national not for profit platform materializes to ensure little to no change in the products and services already enjoyed by landlease community owners/operators form coast to coast, and in Canada.

The remaining issue will be, as it is now – unless greatly addressed during MHI’s aforementioned meeting in early October, is how to ‘Save the Manufactured Housing Industry!’ And given the scope of this challenge, there’s no way progress will be achieved in just one day. Preliminary plans call for a two day affair, so if interested in participating, plan on that. And it’ll be, most likely, consecutive weekdays in the middle of a month.

What’ll be covered? What sort of agenda? Well, that’s where you, blog floggers (readers) come in. Approximately 400 manufactured housing and landlease community folk receive a BEBA (Blast Email Blog Alert) every Sunday – like the one you received announcing this posting! Sometime in mid or late October, if need be, we’ll likely send you a questionnaire, soliciting your input as to topics and format for the third NSAC caucus. In the meantime, at the 20th Networking Roundtable, and prior to MHI’s annual meeting, if you agree with the premise of this blog posting (i.e. Save the Manufactured Housing Industry!), let your thoughts and opinions be known to salaried and elected leaders alike! Now is not the time to be shy about what you think it’ll take to get our industry back on track.

An interesting sidebar has been popping up of late, ever since we coined the concept: MHActivist, a few blog postings ago. More than one responder has commented that individuals participating in the serious exercises suggested in this week’s posting should be ‘stakeholders’ (i.e. business owners), and that we take steps to ensure plenty of grassroots (as opposed to, as they put it, Astroturf) businessmen and women are given opportunity to comment and participate. Well, starting with this posting, here’s your opportunity….

***

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

Too Late or Not Too Late?

Meeting Hell (October 2011) Heats Up Even More!

Paper & Print versus Computers & Floppy Discs…

I.

Too Late or Not Too Late?

It’s too late for you to sign – up to attend this week’s (7/20) Manufactured Housing Manager® or MHM® class in Horsehead, New York.

It’s not too late for you, however, to participate in MHM® Classes being formed in Indianapolis, IN., and Chicago, IL. during the next few months.

&

It’s too late to Save the Manufactured Housing Industry!’ if you believe what’s been penned and published by more than one columnist, in one or another of the few remaining manufactured housing trade publications during July 2010.

But it’s not too late, however, to be part of an emerging grass roots national effort to ‘Save the Manufactured Housing Industry!’ How? For starters, read next week’s blog on the subject. Frankly, it’s taken extra time to sort through and organize the heavy, positive response to last week’s blog posting, introducing this very topic in the final paragraphs….

II.

Meeting Hell (October 2011) Heats Up Even More!

In the June 26th blog posting at this website, we described four national meetings scheduled to occur simultaneously throughout the month of October 2011. Well, during the past three weeks we’ve learned of no fewer than five more meetings, one national and four at the state level, also occurring during October 2011. Ready for this?

• October 2 – 4: MHI’s annual meeting in Phoenix, AZ. (703) 558-0678
• October 11 – 13: WMA’s (CA) annual meeting, Las Vegas, NV. ((916) 448-7002
• October 11 – 15: IREM’s Leadership Conference in Las Vegas. (312) 329-6000
• October 12 – 13: New York Housing Association’s meeting. (800) 721-4663
• October 16 – 18: London Computer’s ‘Rent Manager’ meeting. (513) 583-1482
• October 20: Massachusetts MHAssociation’s annual meeting.
• October 20, 2011. MHIS Fall meeting in Charleston, SC. (803) 771-9046X5
• October 25 – 28: Urban Land Institute & MHCC Meeting in CA. (727) 826-8868
• October 27 – 28: Arizona Housing Association’s convention. (480) 456-6530

Look for this already crowded meeting list to be lengthened during the next few weeks.

III.

Paper & Print versus Computers & Floppy discs…

The first book ever published was the Gutenberg Bible. Printed in the 1940s, 21 complete copies exist today; that’s 550 years after they were first published!

Are you or your firm into digital archiving, transferring records to digital storage? While a practice offering many benefits, and prevention of service setbacks like loss of records, know digital media will not last as long as printed matter. We’re already seeing the truth of that statement.

Think about it. Remember when floppy discs were new, indeed ‘floppy’ (Succeeded by rigid 3 ¾ X 3 ¾ plastic ones) and all the rage? Now you never see the truly floppy ones, and the rigid black-clear-white ones are rapidly disappearing from view, as more and more contemporary PCs appear on the market, without ports for them.

Gotta be asking yourself, ‘What’s to succeed CDs, DVDs, and flash and thumb drives during the next three to five year marketing cycle? What will you and your firm do with your digitized records then? Architects, doctors and hospitals (medical records repositories), law offices, financial firms, and government agencies are all asking this heady question – with no answers in sight! Already ‘historical records stored digitally, including recordings and documents relating to 9/11, have been ‘lost’ to this obsolescence creep.” Quoted from ‘Paper Never Forgets’, in Quick Printing magazine, 11/2010, p.13.

So, what’s a responsible businessman or woman to do? Until a ‘better answer’, long lasting solution comes along, we’re archiving these blog postings, short stories, newsletters, standard property management forms, and books, on ‘hard (print) copies’, to be stored in archival boxes. How ‘bout you?

*****

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

Reading Between the Lines!

‘There is an answer in here somewhere, for manufactured housing
& landlease (nee manufactured housing) communities!’

&

Don’t miss reading paragraph four (IV) of this blog posting!

I.

Several recent feature articles from four different business magazines, never once mention manufactured housing or landlease communities, but convey subtle messages applicable to our industry and asset class!

In ‘Homeownership Under Attack’, by Ken Trepeta, in June issue of RISMedia’s REAL ESTATE magazine, begins this way:

“…when you add up the various laws, proposed laws, regulations and proposed regulations, it is hard not to conclude homeownership is under attack. Regulators, legislators and members of the administration are proposing laws or changes affecting homeownership, acting as if their actions are being done in a vacuum. Many of the proposals, may even make partial sense when taken alone, but when taken as a whole, are devastating to homeownership and the housing industry.”

The writer describes provisions in the impending Dodd – Frank law that “… propose a Qualified Residential Mortgage (‘QRM’) requiring 20% or more in down payment for securitized loans…super strict debt – to – income ratios and credit standards that leave no margin, even for a single payment lost in the mail.” And a “…Qualified Mortgage (‘QM’) regulation (that) tightens credit standards even further, and has features that’ll cause one to question whether they can profitably lend money to anyone.” Sounding familiar yet?

Trepeta concludes “…it isn’t hard to conceive of a world where no one is willing to lend or securitize, except to a narrow group of consumers with perfect credit, W-2 income, no debt, and who can put more than 20% down. In 2010, according to National Association of Realtors data, that was only about 25% of home buyers.” Hmm. Where does this apparent ‘attack on homeownership’ leave landlease community owners/operators who, responding to the wholesale disappearance of MHRetailers (circa year 2000), have been marketing and selling new and resale homes on – site; and, when necessary, engaging in one or another form of self – finance, e.g. via ‘buy here – pay here’ & captive finance methodologies; or, most recently, lease options, and upon occasion, rental of manufactured homes as apartment units? Apparently we’re not in this morass alone.

II.

Then, in a short piece titled ‘Affordable Rents Shrink’, by Claire Easley, writing in Multifamily Executive magazine, we learn “Rental housing is home to 38 million U.S. households (according to National Low Income Housing Coalition or NLIHC).” While many rent by choice, numerous others find doing so, a matter of economic necessity.

With “The average renter wage in the U.S. estimated to be $13.52 per hour”, an amount short of what it takes to rent even a modest apartment, “the (large) number of renters spending more than 50% of their income on rent and utilities” demonstrates a severe and all time high cost burden, according to Harvard University’s Joint Center for Housing Studies (‘JCHS’) report: ‘America’s Rental Housing: Meeting Challenges, building on Opportunities”. Guess whether manufactured housing and or landlease communities are mentioned in that study, as a means of meeting said rental challenge, or an opportunity on which to build? Not.

Furthermore, “…just when it seems to be needed the most, the country’s rental stock is disappearing, with low – cost rentals faring the worst.” While here we sit, with a minimum of 250,000 vacant rental homesites in landlease communities throughout the U.S.! But then; to date, we can’t get more than a couple HUD Code home manufacturers truly motivated to fill these sites with affordable Community Series Homes! Go figure.

Geesh! This is indeed a timely opportunity to ‘get the word out’ about our industry and asset class. Last week’s blog described a precious few MHActivists presently afoot within manufactured housing and landlease community environs. Did I miss YOU, as an MHActivist? I hope so. And if so, write and let me know what YOU’re doing to position manufactured housing and landlease communities as viable answers to the aforementioned ‘attack on homeownership’, and in the immediately preceding paragraphs, a ‘practical means of meeting this nation’s rental challenge’!

III.

In the June issue of Multihousing Professional magazine, in an excerpt from a work penned by Carisa Chappel, multihousing (as in apartment and landlease communities) gets some attention. “The demand for multihousing continues to grow across the country, but one segment particularly under – served and attracting the attention of Fannie Mae, is the affordable housing market, according to the recently released White Paper: ‘Fannie Mae & Workforce Rental Housing’.”

‘Of the current 15.2 million rental units, only about 6.5 million are considered affordable housing for those earning less than half of their (local housing market’s) Area Median Income or AMI. The number of affordable units available for households earning less than 30 percent of AMI is significantly lower, at 2.4 million….” And, “Typically, 90 percent of Fannie Mae’s multifamily financing supports housing for renters earning at or below their region’s AMI.” Where do landlease communities fit in this mix? It’d be interesting to know. Perhaps I can find out before posting next week’s blog. Point? Once again – in this case – the multifamily housing rental market continues to move along, albeit not as well as in the past, with little to no sensitivity to the presence of landlease communities, and how many more bona fide ‘homeowners/rental homesite lessees’ might indeed play a greater role in addressing this housing shortage.

IV.

OK, enough ‘reading between the lines’ for the time being. Let’s talk internal politics for awhile.

Several blog postings ago, we challenged manufactured housing and landlease community leaders to caucus, in a public and grassroots manner; to, 1) get a handle on where we are today in the history of our industry/asset class; 2) ‘brainstorm’, or by whatever means works, articulate business plan(s) to invigorate housing production/distribution and property development/investment functions; and 3) commit to take necessary steps to get us off our 60 year, three years running (maybe four) nadir of 50,000 housing units shipped per year! Have YOU heard of any such plan of late? I haven’t. Is there an alternative? I believe there is, and it might, during the next few months, materialize in this fashion….

The 20th annual International Networking Roundtable (a.k.a. ‘Triple Anniversary Roundtable’, honoring MHI’s 75th birthday, Roundtable’s 20th session; and National Communities Council’s 15th year in operation!) will occur 14 – 16 September 2011, at the Hyatt Regency’s Hill Country Resort & Spa on the west edge of San Antonio, TX. Besides the 20+ presenters covering as many timely topics, there’ll be ample time for property and portfolio deal – making, as well as interpersonal networking. One of the most important things that’ll occur at this year’s event is scheduled for the final session on Friday: ‘What’s to become of the research & reporting, print & online communication, and property management education resources now enjoyed by 50,000+/- landlease community owners/operators nationwide?’ Registered to attend? We’re already approaching the midpoint of our 200 attendee limit, so don’t be left out. Register today! See contact information at the end of this blog posting.

A couple weeks later, from 2 – 4 October, at the beautiful Hilton Hotel Tapatio Cliffs in Phoenix, AZ., MHI will host its’ annual meeting. They’ll soon be publishing an agenda. Watch to see if time is set aside for an industry/asset class wide caucus during or after this event; or whether mention is even made of a need for such a ‘coming together’ of industry /asset class stakeholders from all segments of the industry. If not; well….

There’s precedent for the convening of national caucuses among manufactured housing and landlease community aficionados! Remember the first National State of the Asset Class (‘NSAC’) caucus at FountainView Landlease Community in Tampa, FL., on 2/27/2009? Were YOU among the 100+/- landlease community owners/operators present that day, crafting a Five Step Program in effect to this day? And the following year, on 2/27/2010, just as many manufactured housing and landlease community folk convened in Elkhart, IN., at the RV/MH Heritage Foundation’s Hall of Fame, Museum & Library facility, for the 2nd NSAC caucus. Were YOU present that day, when the Community Series Home concept was birthed, and dozens of Business Development Managers named to sell this new housing product to landlease community owners/operators?

Know what? There were preliminary plans for a 3rd NSAC caucus during February of this (2011) year, but these were put on hold when it was (wrongly) sensed our national elected and salaried leaders, at the time, would be carrying on that two year old initiative. Well, neither event happened!

This blog posting’s BEBA (Blast Email Blog Alert) now goes out to nearly 400 manufactured housing executives and landlease community owners/operators weekly. If you’re one of these blog floggers (readers), and believe a 3rd National State of the Asset Class should be scheduled, for the good and future of manufactured housing and the landlease community asset class, during February 2012, and probably in Florida – as Chicago can be a bit nasty, weatherwise, that time of year, let me know by phone: MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (317) 346-7156, mail: GFA c/o Box # 47024, Indianapolis, IN. 46247; or email: gfa7156@aol.com If I receive a minimum of 50 sincere indications of support for the idea; planning a 3rd NSAC will begin during mid to late October 2011- at the same time the time a new research/resource team is compiling the 23rd annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’), scheduled for publication 1 January 2012. What say YOU?

Want to be one of the stakeholders intent on preserving and rejuvenating manufactured housing and landlease communities into and beyond year 2012? If so, let me know ASAP!

***

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

ACTIVISTS, HACKTIVISTS, MHACTIVISTS

The Manufactured Housing Industry Needs More MHActivists

&

Cellphone, Cable, Airline, and Manufactured Housing In Common

I.

“Traditionally, hacktivists will overwhelm a targeted website with nuisance requests, temporary cutting off access to the site. Sometimes they will deface the site’s home page.” Quoted from USA TODAY. So that’s a hacktivist.

“Hmm.” Kinda causes one to wonder if our own brand of MHActivist, buy with a positive, constructive agenda, afoot in the presently moribund world of HUD Code manufactured housing, might be ‘just what the doctor ordered’, since we’re not seeing much, in the way of remedial action, from almost anyone else, even among elected and salaried industry leaders these days. Simply reacting to the S.A.F.E. Act, and anticipated provisions of the Dodd-Frank bill, are not what’s being talked about here; rather, what it’s going to take; no, better yet, ‘What a few individuals are doing to get the manufactured housing industry back on track as this country’s preeminent supplier of truly affordable, quality housing for its’ citizenry!’

After all, a recently published study by a national Think Tank included ‘manufactured housing’ as one of ten dying industries in this country, right there along with the video rental business. Are we gonna take that perception ‘lying down’? For many, ‘Apparently so’; but for a few others?

There are indeed signs, albeit small and sometimes fleeting ones, that some MHActivists are starting to come out of the proverbial woodwork. Here’re a few I’ve been watching and documenting for awhile….

• A chattel finance service consultant (Wish I could tell you there’s more than one, but sadly, there isn’t!) who has been bold enough, during the past two years, to ‘lead the way’ teaching landlease (nee manufactured home) community owners/operators to self – finance home sales transactions on – site in their properties via, originally, buy ‘here – pay here’, and later ‘captive finance’ methodologies. Today, some of that momentum has shifted toward lease purchase (maybe spawning, finally, yet another finance service consultant), even the on – site rental of apartment (i.e. manufactured home) units – just like we did back in the late 1970s. In the meantime, however, this sole MHActivist has been willing to step out, and at least attempt to bring reason to multifaceted interpretations arising from aforementioned federal finance regulatory measures.

• Possibility of a new, national not for profit platform, to ensure continued research and resource needs, as well as communication, networking, and education requirements of landlease community owners/operators, will indeed be met and fulfilled during decades to come. Creating something new like this, out of whole cloth, in trying economic times is no mean fete. Here too, it takes MHActivism, of the first degree, along with cooperation and financial support from the target audience to be served.

• New wave of trade press media. Less than a decade ago, the manufactured housing industry was awash in monthly print publications. Today, there’re but two left, one advertiser – supported (Though publisher is attempting to wring subscriber dollars from decades long readers) and two subscriber – supported business newsletters. But the Good News is the manufactured housing industry is now well – served by a daily online news outlet (See MHMSM.com) or ezine, two financial service newsletters on line (one free and one subscriber – supported), and an independent, weekly blog posting at this website.

• Know what? There’s at least one manufactured housing sales MHActivist out and about these days. That’s right. One Business Development Manager (‘BDM’) out of the two dozen named in Elkhart, IN., at the second NSAC caucus (National State of the Asset Class) on 2/27/10. Today, that BDM is aggressively marketing Community Series Homes (‘CSH’) to landleasse community owners/operators throughout the U.S.! What’s sad about this example of MHActivism, is should be at least two dozen of them at work these days filling the estimated 250,000+/- vacant rental homesites in landlease communities throughout the U.S.

There’re indeed more MHActivists out and about these days, but are difficult to identify.

So, what are YOU doing, in the way of MHActivism, to ensure the continuation, even rejuvenation of the HUD Code manufactured housing industry; contrary to the death knell predicted by that aforementioned Think Tank? OR, are YOU simply ‘along for the ride’, and will just look for another job when this one runs out. Geesh! Hope that’s not the case!
II.

Cellphone, Cable, Airline & Manufactured Housing In Common

In another recent issue of USA TODAY, one editorial was titled: ‘Going over your limits? Cellphone companies don’t want to tell you’. Therein was a paragraph that, to me anyway, read spookedly like it was describing how our industry, the manufactured housing business, too oft relates to its’ homebuying customers:

“It’s hard to fathom why companies so dependent on public perception would take such an anticonsumer stance. Unless maybe, they’re taking advice from the cable or airline industries. Or unless making it easy for customers to exceed their limits is a lucrative part of their business models.”

Anticonsumer stance? In the case of cellphone companies, the editorial describes their general reluctance to provide “…a real time alert to customers when they get near their usage limits.” And, of course, with cable TV and the airline industry, these days, you’re more than tone deaf if unaware of their poor customer service practices – just read Consumer Reports magazine and take a flight somewhere (e.g. in the latter instance, unless you’re flying Southwest, two flyers –husband & wife – can expect to spend at least $100.00 in extra ‘baggage’ fees on just one round trip between two cities as nearby as Chicago and Indianapolis!)

Manufactured housing? We continue to struggle with safe and secure installation of our product, as well as immediate, reliable, and satisfactory customer service ‘after the sale’. Oh sure, there’re pockets of sterling performance, for varying periods of time – usually dependent on personnel attrition, that make us ‘feel good about ourselves’ as an industry; but the bottom line is ‘we’re not known, in a positive way – yet’ for how we treat our homebuying customers over the long run.

Hmm. Harkening back to part I of this week’s blog posting, here’s one more major area where the manufactured housing industry would certainly benefit from the presence and actions of more than one MHActivist! Might that person be YOU?

***

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

Alphabet Soup for the MHIndustry & LLCommunity Good

‘MHI MHARRvelous Dream’ Revisited; October 2011 to be Meeting Hell!

Why RVs ‘eat our lunch’ marketing wise; In Support of the MHI’s NCC!

BDMs & CSHs = Success or Failure? New Issue for LLCommunity folk

I.

MHI MHARRvelous Dream! Turns out MHMSM; you know – the nearly two year old online ezine at MHMSM.com, has a timely take on last week’s post at this website: ‘MHI (‘My’) MHARRvelous Dream’! Like many who make their living in one or more segments of the manufactured housing industry, the publication believes the time has come, once again, for the Manufactured Housing Association for Regulatory Reform (‘MHARR’) and Manufactured Housing Institute (‘MHI’) national advocacy bodies to work together! Once again? That’s right. If a novice in the MHIndustry and LLCommunity asset class, know many of us have seen these bodies ‘bury their bloody hatchets’ in the past, to pass or fight legislation. Think the Manufactured Housing Improvement Act of 2000, for starters. This time around, however, we need the ‘MHI MHARRvelous Dream’ to become Reality on several fronts: defeat of Dodd – Frank legislation, HUD’s full implementation of aforementioned MHIA @ 2000, even the veritable survival of the manufactured housing industry! For more information, visit MHMSM.com And remember; we can either ‘hang together’ during these trying times, or for certain, die separately. Me? I’m all for strength in numbers.

II.

Why October will be meeting hell! Do we already forget the mishmash of meetings this Spring, as MHI’s annual Manufactured Housing Congress competed for registrants, with at least two other states hosting regional manufactured housing shows? Oh yes, I know, it’s a free country, and everyone is fighting for every bit of business they can get – but scheduling meetings with overlapping dates, or in the cases following, ‘too many in one month’; well, everyone suffers!

October 2 – 4 will find MHI aficionados at the Pointe Hilton Tapatio Cliffs Resort in Phoenix, AZ., for the institute’s 75th anniversary annual meeting. Information, phone Greg Rinck @ (703) 558-0646.

October 11 – 13 will see WMA’s (Western Manufactured Housing Communities Association) members convening at the Southpoint Hotel and Casino in Las Vegas, NV for their annual meeting. For info, call (916) 448-7002.

October 16 – 18 are the dates of LCS’ (London Computer Systems) annual Rent Manager soiree; this time at the Belaggio Hotel and Casino in Las Vegas, NV. Call Nichole Sandy @ (513) 583-1482X243

October 25 – 28 will find members of the Urban Land Institute’s (‘ULI’) Manufactured Housing Communities Council (‘MHCC’) meeting in Los Angeles, CA. To join in the fun, contact David Lentz via (727) 826-8868.

So, let’s see. If I’m a landlease community owner/operator who lives in California, but owns one or more properties, I’ll begin my month at MHI’s annual meeting in Phoenix, AZ; return home for a few days before patronizing WMA’s meeting out in Las Vegas. And hey, might as well stay there, over the weekend, to participate in the Rent Manager program in the same city ‘next week’. And to cap off my month long goosing of the economy in the Western half the U.S., might as well stay home in CA., and ‘do’ the ULI MHCC meeting in Los Angeles. Hmm. What’s all this gonna cost me? Certainly a minimum of $1,500.00 per meeting, or a heady $6,000.00 if I attend all four; even more if domiciled on the East coast, owning properties ‘out West’. And keep in mind, this is also the time of year some states like to have their annual meeting as well. Whew! Sure hope business is very good, for me during October 2011.

III.

Why RVs ‘eat our lunch’ marketing wise. Recent headline from Woodall’s Campground Management newspaper (June 2011, page # 8): ‘Go RVing Coalition Introducing New ‘Away’ Theme for 2012’. Read the following direct quotation, that appeared at the beginning of this news story, and substitute manufactured housing’s theme words ‘Go Affordable Housing!’ when you read ‘Go RVing Coalition’, to get my point. Here it is: “The Go RVing Coalition has voted unanimously to move forward with production of an all – new, integrated television, print and digital campaign with the theme, ‘Away’, the coalition’s leadership reports.” The program was the product of “…a creative work group of 16 coalition representatives from all segments of the industry and Canada, represents a strategy shift back to the emotion – driven, family focus of past campaigns – with a continued underlying emphasis on the affordability and flexibility of RV travel and camping…according to the RVIA.”

Why can’t the HUD Code manufactured housing industry do something similar? Yes, I know, the home manufacturers are deathly afraid non – contributing manufacturers might indeed benefit from a national ‘integrated television, print and digital campaign’. Plus, this too harkens back to the ‘MHI MHARRvelous Dream that’s presently a nightmare, but begs to become a positive and game – changing Reality, where our two national advocacy bodies are concerned. Nuff said – for now.

IV.

In support of MHI’s NCC. Maybe you haven’t heard or read it, but there’s insurrectionist verbiage floating around the internet these days that “…the HUD Code industry’s independent retailers and communities should have their own independent association in the nation’s capital (sic) to represent their specific interests, and the sooner, the better.” Wanna guess who penned that line? Wasn’t me!

Frankly, landlease community owners/operators who’re direct dues – paying members of MHI in general, and the National Communities Council (‘NCC’) in particular, are probably the happiest we’ve been in years – where national advocacy association representation is concerned. How so? The lousy business climate for HUD Code home manufacturers has created a more favorable internal environment for the NCC within MHI. Specifically, the council is now a full – fledged division of the institute. And as manufacturer dues volume declines, landlease community membership revenues have generally, though not always, increased, ensuring MHI’s survival. And ‘yes’, while criticism that the NCC has become a ‘big boys club’ is somewhat valid, the fact that the majority of direct dues paying NCC members present at the last national meeting in Washington, DC., were sole proprietors and small portfolio owners/operators ‘sent a subtle message’ to everyone present. And the ‘icing on the cake’ these days has been the hiring of Lisa Brechtel, to keep landlease community owners/operators on the influence map.

Now, if you’re a little confused about some excited chatter going on, regarding quiet formation of a new national not for profit platform to ensure continuation of such non – MHI/NCC functions as print communication (i.e. the Allen Letter professional journal & the Allen CONFIDENTIAL! newsletters); professional property management (‘PM’) education and certification (i.e. Manufactured Housing Manager® or MHM®) program; the ALLEN REPORT (a.k.a. ‘Who’s Who Among Landlease Community Portfolio Owners/operators Throughout North America!’); annual Networking Roundtables; perpetuation of the 500+/- name data base of portfolio ‘players’; even weekly blogging, here’s the explanation. The aforementioned NCC is our asset class national advocacy body relative to thing politic and regulatory. What we also need – no, must have, is ongoing credible research and regular publication of key statistics, helpful information, PM education and certification, superb interpersonal networking, effective deal – making, and the like, open to ALL landlease community owners/operators nationwide – and perhaps in time, Canada as well. That’s why the eventual (think 2012) new national not for profit entity will have a name inclusive of research, resources, maybe even affordable housing.

V.

BDMs & CSHs = Success or Failure? The Business Development Managers (‘BDM’) at Fleetwood Homes and Adventure Homes are marketing and selling Community Series Homes (‘CSH’) on a regular (I hear feverish!) basis. If any of the other BDMs are doing so, they’re not telling me about it.

A month ago, letters were sent to every HUD Code home manufacturer in the U.S., along with a copy of the official ‘Landlease Community Business Development Managers (list) for Major HUD Code Home Manufacturers’, inviting them to supply names and contact information for ‘new’ BDMs to add to the present 28 name list. Any guess as to the number of responses we’ve received to date? NONE.

This causes me to ask; “Is it worth continuing to throw good money after bad (i.e. as in printing and mailing costs, reprints, directories, etc.), in attempts to cultivate this two year old landlease community (customer outreach) program? Evidently, HUD Code home manufacturers, 1) Don’t understand (How BDMs can sell more homes!) the program; 2) Don’t want to sell more homes into landlease communities; or, 3) Simply don’t need the extra sales cum production cum income right now. Which of these possibilities do you think it is? Me? NONE of the above. Rather, I’ve come to believe most HUD Code home manufacturers were seduced – away from our core affordable housing product at the turn of the century, when they bought into the ‘bigger box = bigger box’ mentality, and competed with site – builders at every turn. And to date, they’ve not returned to the reality that the only homes they can successfully sell in today’s overstocked (i.e. Foreclosed and under priced resale site – built homes) housing market, are our ‘stock in trade’ smaller, efficient, affordable manufactured homes! And you know the further ‘rub’ in all this? We’re pretty confident there’re more than 250,000 vacant rental homesites in landlease communities throughout the U.S. today! Granted, half or more of them are functionally obsolete (i.e. too small to site today’s behemoth homes), but the underutilized opportunity is there nonetheless, for new home sales! There, I’ve said it. Now, prove me wrong Mr. home manufacturer! GFA

VI.

New Issue for LLCommunity folk. Received the following insightful, even prophetic lines, from a fellow landlease community owner/operator recently, and thought I’d pass it onto you intact – and encourage YOU to comment as you wish, or not.

“Have you thought about this? If landlease communities are going to account for much of the industry’s future production/sales (Relate this to the previous paragraph, where it appears HUD Code home manufacturers are NOT interested in filling 250,000 vacant rental homesites in landlease communities throughout the U.S.!), isn’t it time someone gets concerned about the number of such properties that’ll be ‘going away’ during the next decade or so? Several of my landlease communities are now worth more for their commercial development land value (a.k.a. ‘highest and best use of realty) than their capitalized net operating income value. While those values have dropped some over the past three or so years, they will be back! Don’t know about other states, but in ours, you can’t get land zoning for landlease communities within 50 miles of any metro area.”

What say YOU? Other blog floggers (readers) would like to know your ‘take’ on this, and the preceding topics in this week’s blog posting.

VII.

If you haven’t already done so, print off the 20th annual International Networking Roundtable brochure available on this website, and register for this year’s stellar event. 14-16 September 2011 is still 2 ½ months away, but we’re already at 25% of our 200 attendee maximum count! There is no better, more comprehensive line – up of topics and presenters at any other manufactured housing or landlease community venue during the year, so don’t miss out on this one. And this year’s 20th annual event is even more special, as we celebrate MHI’s 75th anniversary, and the National Communities Council’s 15th anniversary! As has been the case the past two years, we’re working to have a couple sample Community Series Homes, possibly including a ‘park model’ RV, on hand for first hand looks by roundtable participants. Have questions about the event, or to register by phone, call the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

*****

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

Keeping Score, & ‘MHI MHARRvelous’ Dream!

*

Just How Many Landlease Communities & Rental Homesites?

&

‘MHI (‘My’) MHARRvelous’ Dream, is to See Chattel $s Return,
Advocacy Bodies Work Together, & We Sell Affordable Housing!

I.

The feature article, ‘How Many Landlease Communities Are There in the U.S.?’ attracted much reader attention when it appeared late last year in MHI’s National Communities Council (‘NCC’) division’s Community Connections newsletter. It’s since been republished as a reprint, and Appendix V in the 22nd annual ALLEN REPORT. For a FREE copy of the reprint; and or acquire a copy of the report proper, phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. The ALLEN REPORT & one year subscription to the Allen Letter professional journal ‘together’ cost $250. And when you ask for the FREE reprint, and or ‘special offer’, also request a FREE copy of the reprint ‘To Rent or Not to Rent’…manufactured homes on – site in your landlease (nee manufactured home) community! This latter reprint was also debuted in Community Connections. The point of this paragraph? Simply some Old but Helpful News leading to New News you’ll likely want to read, hear, know…

‘How Many Landlease Community Rental Homesites Are There in the U.S.?’ Several of you asked this question during the past few weeks. So we dusted off some reliable ‘stats’, e.g. 50,000+/- LLCommunities; 85% of which are 100 rental homesites and fewer in size; and 15% of which are larger than 100 rental homesites in size! Then we made two assumptions: the 85 percentile properties average 25 rental homesites apiece in size; while the 15 percentile properties average 150 rental homesites apiece in size. Then it was a simple matter of:

50,000 X .85 = 42,500 properties X 25 sites = 1,062,500 rental homesites

50,000 X .15 = 7,500 properties X 150 sites = 1,125,000 rental homesites

The two subtotals added together = 2,187,500+/- estimated number of rental homesites X 10% vacancy rate (reciprocal of 89.9 or 90% national physical occupancy rate reported in 22nd ALLEN REPORT) = 218,750+/- vacant rental homesites throughout the U.S., with probably 50% of this number classified as being ‘functionally obsolete’, i.e. generally in older landlease communities and too small to handle contemporary ‘big box = big bucks’ manufactured homes.

Wanting to ‘proof’ the preceding figures, we took recent information regarding MHI’s Community Attributes System (‘CAS’) program, to wit: “We have some data on approximately 19,000 (landlease) communities, containing 2.4 million homesites. Roughly 8,000 of these have 100 or more homesites, representing a total of 1.8 million homesites.” DR

Borrowing assumptions, from preceding paragraphs, our ‘proof’ penciled out this way:

8,000 properties X 150 sites = 1,200,000 rental homesites (vs. 1,800,000 @ CAS)

42,000 properties X 25 sites = 1,050,000 rental homesites

And the two subtotals added together = 2,250,000+/- estimated number of rental homesites X 10% vacancy rate = 225,000 vacant rental homesites throughout the U.S. Or, using the CAS figure of 1,800,000 rental homesites (among larger properties), plus 1,062,500 rental homesites among residual of smaller properties, grand total = 2,850,000.

Figurative ‘bottom line’? Total number of rental homesites, among approximately 50,000+/- landlease communities may range from 2,187,500 to 2,850,000, or average of 2,518,750 or roughly 2 ½ million rental homesites; and at 10% vacancy = 250,000+/- vacant rental homesites in landlease communities throughout the U.S.!

II.

‘MHI MHARRvelous Dream!’ begins with this unsolicited albeit critical commentary from a longtime community-investor.com blog ‘flogger’ (reader), setting the stage for what follows:

“MHI & MHARR have proved ineffective and uncaring in regards to financiers and street retailers. (Landlease) Communities have the only cohesion with which to survive and grow…. When communities go it alone, within a few years, they will drag first the retailers, then financiers, to their side. And unless something changes in manufacturers’ ‘love’ of Washington, DC., they will become the pawn of retailers, dealers, financiers, and communities – which ain’t such a bad idea, when you think of it, since they (the dealers, communities, and financiers) are the manufacturers’ customers.” N

Before we proceed with some specific examples, good and marginal, of advocacy body action and inaction in Washington, DC., let’s address a couple notions in the preceding paragraph:

First off, MHI & MHARR are not wholly ineffective and uncaring regarding the chattel finance and retail sales segments of the HUD Code manufactured housing industry. However, their continued disparate approaches (i.e. ‘go along to get along’ diplomacy/consensus building efforts versus ‘confrontation at every turn’ reform efforts) relative to industry issues advocacy, particularly those that are regulatory in nature and affecting the housing manufacturing segment, sure makes it appear, read, and be interpreted that way!

Communities going it alone? That’s doubtful now and going forward. Today, two of three real estate investment trusts (‘REITs’) and several of the ten largest portfolio owners/operators of landlease community property portfolios are direct and active members of MHI’s National Communities Council division. And now that the NCC, once again has a salaried executive, Lisa Brechtel, at the helm, membership numbers and national advocacy for the asset class, in Washington, DC., should only improve.

For those of you who read last week’s posting, ‘George’s Lamentyen Dimension’, you know there’re plans afoot to launch a new, national, not for profit platform to serve the data research & distribution, professional property management education, interpersonal & corporate networking, print & online communication, and deal – making needs of landlease community owners/operators nationwide, including Canada. Such a research and resource – oriented base will be a valuable supplement to advocacy bodies like MHI, the NCC, IREM, MAI, and other realty trade groups in the U.S., as well as CMHI, MHICanada, & CREA in Canada.

Now to those examples of good and not so good action and inaction, by manufactured housing advocacy bodies in Washington, DC.

First off, MHI’s undated White Paper, titled: DODD-FRANK IMPACT ON MANUFACTURED HOUSING, ‘Ensure Access to Affordable Credit in the Manufactured Housing Market’ should be ‘required reading’ for every businessman and woman active in the industry! To obtain a copy, phone Jason Boehlert @ (703) 558-0660.

Too many details to even start to parse here, but know that it’s only via efforts like this, political action by MHI & MHARR, and grassroots influence on federal legislators, will our industry be spared new regulations that’ll make it nigh impossible to fund future manufactured housing chattel loans of less than $78,000 – or even, some say, $50,000.

Then there’s MHARR NEWS, dated 10 June 2011., headlined: ‘INDUSTRY DECLINE WORSENS – DISINFORMATION PERSISTS. Well, I couldn’t find much evidence of specific disinformation, but I did learn 1) two things; 2) took strong issue with one posture; and 3) walked away with four unanswered questions:

Post – production defined. “…retailers, (landlease) communities, finance companies, insurers and other (nonspecified) service entities.” Whether you realize it or not, this is improved trade lingo; as heretofore, MHARR thought and wrote of ‘us’ as being the ‘aftermarket’, as in afterthought and afterbirth. You get the idea…

Then there was this stunning paragraph. “…over the past decade, manufactured housing production has declined by more than 86% (from 373,143 units in 1998 to 50,046 in 2010), while nearly 75% of manufactured housing production facilities (from 430 to fewer than 110 plants) and 7,500 retail (sales) centers have closed over the same period, resulting in the loss of more than 200,000 manufactured housing industry jobs throughout the United States.” Well, the 1998 home shipment total might be closer to 372,843; and, how ‘bout all those new sales jobs created on – site in new landlease community retail salescenters opened during the same time period? This question suggests MHARR spend more time ‘getting to know and understand’ post production folk, like you and me, before trotting out half – baked facts and uninformed opinions.

And this additional example. “…a renewed effort to alter and water down the statutory definition of a ‘manufactured home’ that would introduce ‘trailer’ elements and ‘trailer’ comparisons that the industry fought to end with the 2000 law (i.e. Manufactured Housing Improvement Act of 2000, or ‘MHIA@2000’ in short). And all of these have been packaged, portrayed and ‘spun’ to the industry grassroots as positives.” MHARR

Do YOU know what’s being talked about here? In a nutshell, ‘park model RVs’ (i.e. recreational vehicles that look like miniature houses, less than 400 square feet in size, a.k.a. ‘Granny flats’, and at present not subject to the HUD Code) are increasingly used as year round homes for snowbirds sojourning in Sunbelt regions, and folk struggling to survive our nation’s struggling economy. The issue is whether these homes should be brought under the HUD Code for regulatory purposes, or remain outside as RVs. Apparently MHARR believes ‘park models’ will pollute our HUD housing image.

MHARR appears to dismiss this idea ‘out of hand’, without soliciting any input from post production segments of the industry, with lively and timely interest in the matter. For example; ‘park models’, though more expensive per square foot in cost, are near ideal for siting on functionally obsolete rental homesites in landlease communities. Not saying this is right or wrong, simply that here’s a clear example of the left hand of the industry, figuratively speaking, not knowing what the right hand is doing, or perhaps prefers to do – in an effort to return HUD Code manufactured housing to it’s ‘affordable housing’ roots, i.e. smaller, less expensive homes, as in Community Series Homes or CSH, already discussed in previous blog postings at this web site. And, as was pointed out earlier in this very blog posting, there’re approximately 250,000 vacant rental homesites to fill across the U.S.! At the present level of annual shipments, that’s five years of work, right there!

Four unanswered questions. Then, under the guise of ‘Full & Proper Implementation of MHIA@2000’, MHARR offers four FACT SHEETs, describing perceived shortfalls:

‘HUD has not Appointed a Non – career Program Administrator.’ Agreed! What to do about it? No plan of action proposed in this document. Why?

‘Collective Industry Representation on the Manufactured Housing Consensus Committee or MHCC Must be Restored.’ Agreed! What to do about it? MHARR suggests: “HUD should immediately place non – lobbyist representatives of the industry’s national organizations (i.e. MHI & MHARR) on the MHCC as voting members.” Since they’ve not done it to date, it’s highly unlikely they’re going to read this and do it. So, what now?

‘HUD has undermined the role and authority of the MHCC.’ Agreed! What to do about it? No plan of action proposed in this document. Why?

‘HUD has undermined the independence of the MHCC.’ Agreed! What to do about it? No plan of action proposed in this document. Why?

To my mind, it doesn’t make much sense to identify perceived problems (i.e. Let’s consider them challenges and opportunities!) without making specific recommendations for action to effect substantial and timely change to the unwanted circumstance or circumstances. How’s the old bromide go, ‘If you’re not an integral part of the solution (even just suggesting one), you’re likely part of the overall problem!’ So, for a change, let’s move away from finger – pointing, and together seek answers to questions (as stated above) and solutions to the challenges and opportunities faced by our industry! GFA

***

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

George’s Lamentyen Dimension!

I.

“Thank You Jenny Hodge!” When I sat down to bare my business soul with you today, I knew the core message would be about change; change for me, and change for everyone involved in landlease (nee manufactured home) community ownership and management. For me, the following paragraphs are at first, a lament; then change, to a yen (a yearning) for the future. For you? Well, read and decide, if and how you want to be involved in change being planned and effected – as to with and by whom, we’ll soon experience research and dissemination of our asset class statistics, helpful information, even the perennial resources used to successfully run your landlease community business.

“Why Jenny Hodge?” Because she introduced me, a decade ago, to John P. Kotter’s Business Week bestseller, Leading Change. In it are apropos quotes, and an Eight Stage Change Process applicable to what’s occurring in the way we serve the data, information, education, networking, and deal – making needs of landlease community owners/operators nationwide. Just what change are we talking about here? Specifically,

Since 1980, when GFA Management, Inc., dba PMN Publishing was founded, we’ve functioned by default, as ‘a small, for – profit, national trade association’ (i.e. ‘No one else would do it!’), providing valuable services: data & information collection & dissemination, professional property management education & certification, as well as superb networking & deal – making opportunities for landlease community owners/operators nationwide, including Canada. Other than helping found the short – lived Industry Steering Committee predecessor to the National Communities Council (now division) of the Manufactured Housing Institute, we’ve had little to do with political and regulatory advocacy relative to our unique, income – producing property type. Now, everything described in the first sentence of this paragraph is undergoing change – due in part, to the drying up of supplemental funding from landlease community portfolio owners, and my desire to eventually retire. But retirement won’t occur before ensuring the above – identified services are funded, reorganized, and progressing as a national, not for profit coalition of landlease community owners/operators of all sizes, as well as interested realty academics, and specialty consultants. Hence the gist of this week’s blog posting about change.

Early in Leading Change, the author describes “Employees in large, older firms (e.g. George Allen & 30 year old GFA Management, Inc.) often have difficulty getting a transformation process started because of the lack of leadership, coupled with arrogance, insularity, and bureaucracy.” P. 29 That’s certainly true of me! I’ve been comfortable as ‘leader of one’ and frankly, unwilling to face change I knew would come; arrogant in the knowledge we were the only firm possessing the bulk of landlease community data and knowledge; insular (remote) tucked away in offices in semi – rural Indiana; and in my experience, often at bureaucratic odds with one or another trade group who didn’t appreciate our firm serving the information, education, networking, and deal – making needs of 500+/- landlease community portfolio owners/operators nationwide, during the past three decades.

How is this anticipated change to occur, and possibly appear, along the way? Well, the author, John P. Kotter identifies eight “…steps to producing successful change, of any magnitude, in organizations.” P.21. They are, with brief personal commentary:

Establishing a sense of urgency. “I can not & will not fund these services alone for long!”

Creating the Guiding Coalition. “That’s where we are today! Want to come aboard?”

Developing a vision and strategy. “Remember how we did this with the ISC in 1993?”

Communicating the change vision. “You’re reading it NOW, with more details to come!”

Empowering broad – based action. “ Yes, we’ll overcome obstacles & take some risks!”

Generating short – term wins. “Ah, that’s the exciting part. So much we can accomplish!”

Consolidating gains & producing more change. “Once this change vehicle is moving….”

Anchoring new approaches in the culture. “Finally, opportunity to improve our image!”

Change doesn’t get any more exciting than what’s being planned for the landlease community real estate asset class! The Good News is, the change has started. To keep abreast of it, read the Allen Letter professional journal each month. To subscribe, reach me via gfa7156@aol.com or MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also (417) 346-7156. The Bad News? Can’t think of any – unless change doesn’t take place! At that point, the worst case scenario – for all of us, would occur if I, figuratively speaking, ‘pulled the plug’ and retired. At that point, there simply wouldn’t be any further landlease community operating data & information collection & dissemination, professional property management education & certification, weekly and monthly print and online communication among peers, nor superb interpersonal networking & unique deal – making opportunities, throughout North America, until another entity comes along.

With a parting word of sincere appreciation to Jenny Hodge, for bringing Leading Change to my attention a decade ago, here’s the final paragraph from Kotter’s book:

“…people who are making an effort to embrace the future are a happier lot than those who are clinging to the past. That is not to say that learning how to become a part of the twenty – first – century enterprise is easy. But people who are attempting to grow, to become more comfortable with change, to develop leadership skills – these men and women are typically driven by a sense that they are doing what is right for themselves, their families, and their organizations. That sense of purpose spurs them on and inspires them during rough periods.” P.186. With that said, it is indeed the time for us, as landlease community owners/operators, to embrace the future, and do what is right for our business interests going forward!

By now you likely understand my taking poetic license with ‘George’s lament for the present, and yen for the future’; combining those words into a ‘lamentyen dimension’ for the months, even years ahead. So, will you and your landlease community(ies) be part of this unfolding change process?

“And finally, just who is Jenny Hodge?” Most manufactured housing industry folk fondly recall her from the years she spent on the corporate staff of American Modern Insurance. Well today, she’s vice president of marketing for American Integrity Insurance Group in Tampa, FL. Many of us got to visit with her this Spring at MHI’s annual Manufactured Housing Congress in Las Vegas, NV.

II.

As you know, we have a busy Summer ahead. I missed attending FEMA’s Small Footprint HUD Temporary Housing Unit (THU) Industry Day on June 7th, because, frankly, GFA Management, Inc., dba PMN Publishing, couldn’t spare the $1,000.00 it would have taken for the flight, airport parking, hotel room, transportation, and meals in downtown Washington, DC. As a sad result, the 50,000 landlease community asset class was not represented by an owner/operator (That I’ve heard about to date), in a meeting where we could easily have made knowledge of vacant rental homesites known (per MHI’s CAS Program), for use in the time of need for emergency housing resources. A missed opportunity indeed; and, one more reason, why the change described in part I of this week’s blog is both necessary and progressing. Understand about 50 participants attended FEMA’s Small Footprint HUD Temporary Housing Unit (THU) Industry Day.

Try not to miss the Manufactured Housing Manager (‘MHM’) class scheduled for 20 July in Horseshead, New York, hosted by the NYHA. This one day ($250.00) professional property management training and certification class (program) has already designated nearly 1,000 MHMs, during the past ten years, who now own and operate landlease communities throughout North America. To register, phone Nancy Geer @ (518) 867-3242. What do you get, besides practical property management training by a CPM® member of the Institute of Real Estate Management® and landlease community owner? Copy of Landlease Community Management, monograph of contemporary manufactured housing industry readings, and a gold MHM pin and MHM certificate. If you own or manage one or more landlease communities, you owe it to yourself to attend and become certified!

Then there’s 1 August 2011. About 400 MHIndustry & RVIndustry aficionados will gather late afternoon that day, for a reception, followed by a Hall of Fame Induction Banquet, at the beautiful RV/MH Heritage Foundation’s Museum & Library facility in Elkhart, IN. Several MHIndustry folk will be inducted this year, from manufacturing and landlease community segments of the MHBusiness. By the way, a golf tournament is also scheduled earlier the same afternoon. Want to attend? Phone (800) 378-8694 or (574) 293-2344 for information. And if you’re a landlease community owner/operator and want to participate in one or both private networking opportunities after the induction ceremony, phone Dennis Ohnstad @ (217) 493-0083 or via drohnstad@aol.com

And finally, there’s the Triple Anniversary Networking Roundtable, 14 – 16 September 2011, at the beautiful Hyatt Regency Hill Country Resort & Spa on the western edge of San Antonio, TX. For a trifold brochure listing the nearly two dozen exciting topics and terrific presenters scheduled, phone the above – referenced MHIndustry HOTLINE or (317) 346-7156 and request it. This year, we’ll be celebrating the 75th anniversary of the Manufactured Housing Institute, 20th anniversary of the International Networking Roundtable, and 15th anniversary of MHI’s National Communities Council division. Also contemplating one or more Community Series Homes to be on display during the networking roundtable venue. Plan to attend!

***

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