Blog Posting # 612 @ 13 Nov 2020; Copyright 2020: Educatemhc.com
Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’
EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!
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INTRODUCTION: Part one announces latest manufactured housing-related firm to ‘go public’. All nine stock exchange firms (including five featuring land lease community property portfolios), are examined monthly in the combined ‘MHShipment Volume & Stock Market Report’, prepared and distributed by EducateMHC. Part II, is kinda historic, as it directly quotes the Federal Housing Finance Agency agreeing with the two GSEs, Fannie Mae & Freddie Mac, it’s INFEASIBLE for them to improve our industry, and especially our realty asset class’, access to chattel capital for home-only mortgages! And Part III. Whether the Trump administration remains in place, or the Beiden group ‘rules’, both must remain wary of the actions by the Chinese government (CCP = Chinese Communist Party).
I.
& Now There Are Nine…
EducateMHC’s November edition of its’ ‘MHShipment Volume @ September 2020, & Stock Market Report of 3 November 2020’ Introduce Flagship Communities as ninth public company in the manufactured housing industry.*1
Yes, the rumors are indeed true. Longtime business partners Kurt Keeney and Nathan Smith, founders and owners/operators of the Kentucky-domiciled SSK land lease community portfolio, renamed Flagship Communities, took their firm public on 7 October 2020 via the Toronto Stock Exchange (‘TSX’). These 45 land lease communities, containing nearly 9,000 rental homesites – including 600+/- rental units, will rank high on the upcoming 32nd annual ALLEN REPORT – now being compiled, and scheduled for distribution during January 2021, as an addendum to The Allen Confidential! business newsletter. To reserve a copy, visit www.educatemhc.com
The other eight public companies? Four of which are HUD-Code housing manufacturers: Berkshire Hathaway, Inc. (i.e. Clayton Homes), Skyline Champion, Cavco, and Legacy Housing Corporation. Four land lease community portfolio owners/operators: ELS, Inc. (first & largest REIT), Sun Commu8nties, Inc., UMH Properties, and Manufactured Housing Properties, Inc. And now, of course, Flagship Communities.
II.
FHFA’s Annual Housing Report Comes Clean
MHI and MHARR have been saying and writing for months – no, make that ‘years’, the Federal Housing Finance Agency (‘FHFA’) and two GSEs (government-supported enterprises) it oversees (i.e. Fannie Mae & Freddie Mac) have been way underperforming, in behalf of the manufactured housing industry! Just read the blog postings of the last two weeks for their commentary.
And now, along comes FHFA’s Annual Housing Report, for the period 1/1/2019 thru 12/31/2019, but only released publicly on 30 October 2020. Why the nearly long communication lag from year end 2019 to nearly year end 2020? Go figure.
In any event, here’s the damning paragraph in said report:
“For manufactured home titled as personal property, or chattel loans, both Enterprises submitted infeasibility requests on their chattel pilot initiatives, requesting that FHFA exclude these objectives from a consideration during the Annual Duty to Serve (‘DTS’) performance evaluation for 2019. An Enterprise may submit an infeasibility request if underserved market conditions or other extenuating circumstances outside of its control substantially interfere with its accomplishment of an objective. FHFA approved these infeasibility requests on February 27, 2020.” (Only edit = insertion of DTS)
So, what does this mean? Quoting from ‘MHARR’s News Item’ dated 4 November 2020,
“…nearly 80 percent of the entire manufactured home consumer loan market – is totally excluded from FHFA’s compliance evaluation.” That, my readers, is the entire chattel (capital) sector of the manufactured housing market!
Bottom line for me? We’ve been wasting our time and resources, except where land lease community real estate-secured mortgages are concerned, courting the favor, support, and cooperation of Fannie Mae and Freddie Mac. I now begrudgingly admit, the time and money spent traveling to Washington, DC., and participate in three FHFA-hosted Listening Events, during the past several years has been a near 100 percent waste!
III.
Enemy Report
Following two paragraphs extracted from Brian T. Kennedy’s speech, delivered on 29 September 2020, at a Hillsdale College National Leadership Seminar.
“We know with certainty that after the (corona) virus began spreading in Wuhan (during) the fall of 2019, the Chinese government closed down flights from Wuhan, which is in Hubei province, to the rest of China. At the same time (however), it allowed flights from Wuhan to continue to go to Europe and to the U.S. – where the Chinese knew with certainty that the virus would spread. And when President Trump closed the U.S. to flights from China, its foreign ministry and one of the CCPs (Chinese Communist Party) propaganda arms, the Global Times, pushed for a reversal of this policy – again, knowing full well how contagious the virus was. Indeed, the Chinese government locked down Wuhan and released videos of men in hazmat suits welding doors shut so people could not leave their homes.” (Lightly edited. GFA)
“It is also believed that Chinese operatives in the Houston consulate provided intelligence to Black Lives Matter and Antifa rioters in Houston, as a way of demonstrating their solidarity. Indeed, there is growing evidence the CCPs United Front includes these groups, and that some of the funding for BLM and Antifa is coming from CCP-sponsored groups; Liberation Road, the Freedom Road Socialist Organization, and the Chinese Progressive Association.”
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