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

Blog Posting # 685. Copyright @ 15 April 2022. EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lese communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION. Every once in a while, usually after a time of editorial or political posturing, one wishes the trumpeting party would ‘Put up or shut up!’ We seem to be entering into one of those times now – maybe for good reason. Read Parts I & IV, to see where you are on the matter described. And Parts II & II feature, in the first instance, a timely $ reference that should be in every land lease community; and in the latter instance, some sad and surprising news.

I.
PUT UP OR SHUT UP!

You may or may not have recently received and read a lengthy diatribe (‘bitter & abusive denunciation’) of the Manufactured Housing Institute (‘MHI’) by the publisher of an online newsletter. I don’t usually respond to these periodic communiques, but felt compelled to do so this time around. Here’s why and what I penned….

During my 44 year career in manufactured housing, and as a land lease community owner,

“I’ve vacillated from being an enthusiastic supporter of the way the institute does things – or doesn’t do what I think they should. So I understand the frustration that’s ‘out there’ today, especially with our industry shipping only 105,772 new HUD-Code homes during year 2021. And this in the midst of our nation’s affordable housing crisis. We should be shipping many more new homes nationwide.”

“A perennial ‘whipping boy’ has been criticism that MHI does not truly and fully advocate for the entire manufactured housing industry, particularly its’ post-production segments (e.g. communities, finance, state associations, service firms, suppliers, etc.) And, in a sense, that’s understandable – if true, since the majority of the institute’s operating funds come from the manufacturers division of MHI. And today, the majority of those funds presumably come from just three companies, i.e. The Big Three Cs: Clayton, Cavco, & Skyline/Champion. How’s the bromide go? ‘Follow the money!”

“So, what to do about this uncertain advocacy matter? In my opinion, if this online publisher, MHARR, and others of like mind, really and truly believe lack of representation is pervasive and self-defeating, then plan and convene a national gathering for everyone interested in improving advocacy for the post-production segments of the manufactured housing industry! Seriously. And here’s a practical suggestion. Convene a national meeting on the 16th of August 2022, at or near the RV/MH Hall of Fame in Elkhart, IN. After all, the day before, on the 15th, we’ll see ten RV & MH pioneers/notable executives inducted into the prestigious Hall of Fame at that location. Simply stay overnight and convene the next morning. I’ll be the first person to sign-up. And I can think of several others that will as well.”

“There’s precedent for this bold suggestion. On 31 August 1993, 19 portfolio owners/operators of (then) manufactured home communities met at a hotel in Indianapolis, IN., to strategically plan how to ensure effective representation for the realty asset class in the years ahead. (This meeting occurred one year before the first ‘community REIT’ was launched). And up until that time, representation of 50,000+/- communities nationwide, was handled by a committee of volunteers at MHI meetings. Eventual result? On 1 January 1996, under the leadership of MHI executive Jim Ayotte, CAE, the National Communities Council (later designated as NCC division of MHI) began its’ work. Has it lived up to expectations? Originally yes, but that’s a worthy subject for a future critique.”

“Bottom line, for online publisher and MHARR? If you and others truly believe the post-production segments of the manufactured housing industry need better representation and advocacy, than is presently the case, plan soon how to resolve the matter and get started this year! In a word: ‘Put Up or shut up!”

I sent this email communique out early Saturday afternoon. Literally, within minutes, I started receiving replies. Here’s the first one, from a HUD-Code housing manufacturer.

“Thank You for stating that. I am obsessed and committed to help this industry break out of the 9-10% of new single-family housing starts. That is where we are now and have always been – except when easy financing existed, and that turned around (to) set the industry back. As you indicated, we need specific suggestions as to what can help us break out of the 10% restraint, and action plans to achieve more! That is what we are working on at MHI.” (Lightly edited, GFA)


II.
MANUFACTURED HOME COMMUNITY FINANCING HANDBOOK

Do you have this valuable resource in hand? If not, then email eerik.edwards@wellsfargo.com and request a free copy. If you’re a land lease community owner/operator, you want to have this comprehensive document in your personal or corporate library. This is the 16th edition and besides the usual background and HOW TO information, it also includes a copy of the last published edition of the ALLEN REPORT (i.e. annual compendium of community operating statistics, market trends, and list of top 100 or so of the 500 known portfolio owners/operators in North America today.

III.

DID YOU KNOW?

WMA executive director Sheila Dey has retired after nearly three decades of service to land lease community owners/operators in the state of California? Doug Johnson, WMA’s senior regional representative has been tapped to serve as WMA’s new executive director. He’s been with WMA for 28 years. Source of this and following information: March/April 2022 edition of MHInsider magazine.

What a shock – to me anyway. Wally Moreland, long long time business partner with the likes of Gary McDaniel, Jim Grange, and others at ROC Properties, nee Chateau Communities, a REIT; and YES! Communities, died during January 2022. I’m sure there are many of you ‘out there’ who remember the comical skits his company put on during the MHCongress in its’ early years.

IV.

THE FOLLY OF POST-PRODUCTION ADVOCACY!

What? It was only in Part I of this blog posting that someone credible suggested the timely need for separate representation of the post-production segments of the manufactured housing industry! And here, already, the efficacy of that idea is being contested? Well, it’s true. Among the many responses to the communique described in Part I above, were some pretty heady, sobering observations about the present state of national and state advocacy, and why a ‘new player’ on the scene might well have little to no positive effect on manufactured housing matters. I’ll present and explore those reasonings in next week’s blog posting (# 686).

Until then, if you’d like to add your opinion on this heady topic to the mix, just let me know via gfa7156@aol.com

George Allen, CPM, MHM
EducateMHC

Blog Posting # 684. Copyright @ 8 April 2022. EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: Other than by direct email from me to you, Part I, here following is our industry’s and asset class’ sole access to ‘MHShipment Totals & Stock Market Report’. And if you don’t know MHAction is nipping at your heels, if a community owner/operators, read about it in Part II. Part III? Review of another exciting novel by Charles Irion, former community owner. Most important of all, plan to participate in the 50th Anniversary Celebration of the RV/MH Heritage Foundation’s Hall of Fame at the annual induction banquet on 15 August 2020.

I.

MHShipment Total@ February & Stock Market Report @ 4 April

According to the Institute for building Technology & Safety (‘IBTS’), HUD’s ‘scorekeeper’ for HUD-Code manufactured housing production, 9,281 new homes were shipped during February 2022. This, the sole Official Total recorded and publicized by IBTS, HUD, MHARR & EducateMHC.

9,281 exceeds February 2021 total of 7,995 homes, and 9,110 homes reported last month, during January 2022. And 2022 YTD, we’re already 1,200 new homes ahead of 2021 YTD!

The production value of these 9,281 new homes, using Dr. Stephen C. Cooke’s $43,126/MH factor is estimated to be $400 million; and 2022 production value YTD is $793 million. As I’ve said before, it’s past time for an update of Dr. Cooke’s valuation factor. Anyone listening?

Stock price-wise; of ten publicly-traded manufactured housing and land lease community companies, during early April, five were UP and five were DOWN from previous month. The MH/LLCommunity Composite Stock Index (‘CSI’) for this period of time rose from $713 to $732. For a FREE stock market summary of these ten firms, request it via gfa7156@aol.com


II.


MHAction calls for Legislative Day of Action on 10 May 2022

This is a state (e.g. New York, et. al.) and national initiative aimed at ‘predatory investors’ acquiring and operating land lease communities. Specific provisions ban rent-gouging companies, provide better (property management) oversight (i.e. licensing), improve leases, and stop unfair seizure of homes. If you’re not following these developments you should be!


III.

MURDERED BY GODS – TIMBUKTU

Yet another murder mystery, high adventure tale, from former Arizona real estate broker and land lease community owner/operator Charles Irion. I’ve reviewed many of Chuck’s novels and non-fiction books (e.g. ‘Roadkill Cookbook for Campers’) over the years, and sincerely believe ‘Murdered by Gods – Timbuktu’ is one of his best as a wordsmith, to date. By way of review…

‘Murdered by Gods – Timbuktu is an eclectic mix of writing genres; from mystery to adventure to survival to sci-fi, even demon possession. Set in the Sahara Desert, Irion’s perennial hero Scott Devlon – mountaineer and director of Project: RESCUE, is on a mission of mercy, to rescue a group of kidnapped scholars who aim to restore the cultural heritage of Timbuktu.

The author’s writing style also varies, from being akin to late mystery writer Dick Francis’ penchant for details (i.e. which is to say, you’ll learn all about salt mining, intirion crystals and more), Karl Marlantes’ flare for penning graphic life and death scenarios (as in his ‘Matterhorn’ historical novel of U.S. Marines fighting in RVN), as well as describing exhausting personal endurance, as in Slavomir Rawicz’s The Long Walk’. Taken all together, this is one of those books that once-in-hand is darn difficult to put down!

Besides the education a reader receives, and gripping descriptions of hero Devlon’s high adventures in life and near death scenarios, there’s a continuing plot line from Irion’s previous novels that smacks of other-worldly presence, even demon possession. I’ve read all his books, but still get goose bumps when he first touches, then dives into a nether (or ‘higher’) world beyond that upon which most of us live and work. GFA




IV.

2022 = 50th ANNIVERSARY OF RV/MH HALL OF FAME!

Who knew? The repository and protector of our industry and realty asset class history will celebrate its’ 50th anniversary on 15 August 2022, at the RV/MH Heritage Foundation facility in Elkhart, IN.

To that end, watch for the July/August issue of MHInsider magazine. Therein, the Allen Legacy column will – for the first time in print – tell how the RV/MH Hall of Fame, museum and library was birthed, then describe some picturesque Hall of Fame members. Some examples: One sold a new ‘mobile home’ to Elvis Presley; another, an immigrant from Denmark who made his fortune in this business’; yet another was on the War Production Board during WWII; another, the mayor of a major Midwest City; and one revolutionized RV advertising!

For now, however, why not commit yourself to attend the RV/MH Hall of Fame induction banquet on 15 August 2022? I know I plan to be present among the expected 700 guests. For tickets, phone (574) 293-2344. Who’s being inducted, from the manufactured housing industry? Eugene (Gene) Landy, founder and chairman of the board of REIT, UMH Properties, Inc. Tim Williams, founder and CEO of 21st Mortgage. Raylen Gritton, an independent (street) MHRetailer with 13 locations in five states. David Carter, Sr., a supplier of lumber and OEM supplies to the manufactured housing industry. Harry Karsten, longtime HUD-Code manufacturer on the west coast, also son-in-law of an inductee in the inaugural 1972 class. In addition to these five honorees, there’ll be five inductees from the recreational vehicle industry.

New U.S. presidents have their fancy inaugural balls, Hollywood actors and actresses have their Oscars. Well, manufactured housing and land lease communities, along with their recreational vehicle brethren, have their annual Hall of Fame induction banquet! It is the most gala affair MH & RV folk enjoy almost every year (skipped 2020 due to the pandemic). Frankly, ‘anyone who’s anyone’ in both industries, will be present at this event. It’s the one occasion where everyone goes to ‘see and be seen’, especially those who aspire to be nominated and selected for induction into the RV/MH Heritage Foundation’s prestigious Hall of Fame. Will you be there in 2022?

And this footnote to the 15 August festivities. As in years past, I’ve already been asked to teach, over a two to three hour period of time, that day, ‘How to Pen One’s Memoirs & Wordsmith an Autobiography’. If this interests you, let me know via gfa7156@aol.com As in years past this seminar will likely be held in the RV/MH Hall of Fame library or another room at the facility.

George Allen, CPM, MHM
EducateMHC

MH (the ‘I’M HOME’) NETWORK’

Blog Posting # 683. Copyright @ 1 April 2022. EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: The times they are a-changing, or so it certainly seems. Prosperity Now has bowed away from its activist interest in manufactured housing, in deference to the Lincoln Institute of Land Policy. And look who’s going to be administering that part of the program! Also, a stunning, but o’ so practical suggestion from within the Harvard Joint Center for Housing Studies! Frankly, I found it hard to believe the first time I read the suggestion. Go for it! GFA

I.

NEW HOME FOR ‘INNOVATIONS IN
MH (the ‘I’M HOME’) NETWORK’

Learned a couple weeks ago the Lincoln Institute of Land Policy is now supervising the Innovations in Manufactured Homes (‘I’m Home’) Network. Since 2005, this initiative, launched to address the housing affordability crisis here in the U.S., was administered by the activist group Prosperity Now. Simply, the initiative “promotes manufactured housing as a source of wealth-building home ownership and stable rental housing.”

And now this week we learn Jim Gray, formerly with the Federal Housing Finance Agency (‘FHFA’) – where he headed up the Duty to Serve effort fielded by the two GSEs, Fannie Mae & Freddie Mac, is now the point of contact at the Lincoln Institute, where the ‘I’m Home’ program is concerned. Reach him via (202) 722-7543.

What can we expect, relative to the institute’s interest in housing affordability where HUD-Code manufactured housing and land lease communities are concerned? Guess we’ll have to wait and see. Personally, I’m encouraged to see the Lincoln Institute become involved. Hopefully this will mean that manufactured housing will be looked upon as ‘more than low income housing’ and land lease communities as the desirable lifestyle they are!

II.

AN INSPIRED SUGGESTION

Don Layton of the Harvard Joint Center for Housing Studies, in the 3/26/2022 issue of that organization’s HOUSING PERSPECTIVES newsletter boldly suggests, “The four government mortgage agencies (i.e. GSEs’ Freddie Mac & Fannie Mae, also FHFA, and the VA) should produce a unified report on mission activities.”

Layton then lays the groundwork for his suggestion, by first informing us of how there’s almost $12 trillion outstanding of traditional first mortgages on single-family homes, about 70 percent of which is financed by these agencies! Then he reminds readers how all four agencies attempt to increase the supply of affordable housing in the U.S. via 1) manufactured housing, and 2) preservation of existing affordable housing.

After describing how the four agencies, which should be working together, have created a reality that is considerably messier than need be or desirable, he drops this bombshell of a suggestion:

“…my modest suggestion: the four agencies should work together to produce, at first annually but then quarterly, a single, unified and comprehensive report on their SECONDARY-MARKET MISSION ACTIVITIES to illustrate how well the government has utilized taxpayer support to reach the goal of successfully IMPROVING HOMEOWNERSHIP, especially for underserved groups of families. This could produce comprehensive and timely reporting about how much taxpayer-supported financing is received by specific racial groups, by rural families in low-income geographies, by LMI families, and so on.” (EMPHASIS ADDED. gfa)

Whoa! This is precisely what those of us in the manufactured housing industry, and among owners/operators of land lease communities (needing home-only loans) have been hollering for for years! Yes, we need better, easier access to chattel capital for our home-only loans on-site in communities, but we also need ready and regular access, with GSEs help, to the secondary market – where we’d sell off our mature housing loans and renew our supply of chattel capital for more transactions. And for sure this would open up chattel loan sourcing beyond the singular firm presently enjoying, I’m told, an estimated 70 percent of market share.

Like this thinking? Reach out to Don Layton via jchs@harvard.edu

George Allen, CPM, MHM
EducateMHC

Blog Posting # 682. Copyright @ 25 March 2022. EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable, attainable housing! Be MHM certified!

INTRODUCTION: A lot of territory to cover this time around. Part I describes what appears to be a transition from freelance consulting, where land lease community development planning is concerned, to a specific Canadian firm. Part II. Just who is our industry’s worst enemy? Part III. Four deficiencies afflicting manufactured housing. & Part IV. Do you know a Vietnam veteran?

I.

PUTTING BEST FOOT FORWARD!&?

Yes this is a time of transition throughout the manufactured housing industry, especially among land lease community owners/operators nationwide. George Porter of MH installation renown, Cary Monroe & John Jacobs, loan originators, Win Moses & Sharon Niccum, community owners are a few of those retiring during 2021 and 2022. One of the most well-known present day retirees, however, is Don Westphal, veteran landscape architect and development planner in Michigan. His firm has merged with the Nadigroup headquartered in Canada.

The Nadigroup recently published a Project Case Study titled Stony Mountain Secondary Plan – a plan for development of a dynamic community subdivision on 67 acres in the Township of Stony Mountain. It presents a good example of the work quality available from this new firm to manufactured housing. The gist of the plan explored 12 guiding principles; the first six of which are unique grid and aesthetics, places for people, sense of place, safe and fun environment, intergenerational design, aging-in-place. To request an electronic file copy of this plan, contact Rebecca@nadigroup.com

What I and others await, however, is the publishing of a land lease community design and development plan featuring use of HUD-Code manufactured homes. Why is this important? With the retirement of Don Westphal, our industry and realty asset class risk the emergence of ‘information shortfall’ we don’t need during these changing and challenging times!. For additional discussion on this timely and critical topic read Part III here following.
II.

OUR WORST ENEMY? US!

An east coast land lease community portfolio owner/operator bought a new HUD-Code manufactured home for $49,000 in year 2020. And now, in 2022, finds the same floor plan from the same manufacturer priced at $68,000. That’s more than a 38 percent price increase in two years! And this is not an isolated phenomenon these days. It seems HUD-Code housing manufacturers are raising wholesale prices faster today than ever before – citing all sorts of reasons (or excuses), from building supply issues to Covid-related labor issues. True or false?

Another example. From CPR News: “Colorado lawmakers have introduced a sweeping bill meant to protect residents of mobile home parks from excessive price hikes and other disruptions.” If passed, this would be Colorado’s first statewide regulation of rent prices. Rent increase rate limit? The rate of inflation or three percent per year – whichever is higher. Other provisions of this legislation require property owners to pay rental homesite lessees who are displaced by development (i.e. change in land use), and make it easier for homeowners/site lessees to buy mobile home parks for themselves (i.e. as resident-owned communities). This is just a taste of what is occurring in other states around the U.S., where land lease communities have been acquired by self-serving corporate investors paying whatever it takes to ‘make the deal’, then enacting measures to ensure payment of high debt service and operating expenses.

How long will our industry and realty asset class continue to ‘shoot itself in the foot’ with outrageous prices and escalating rental homesite rates? As the cartoon character Pogo has been known to say, “We have met the enemy and he is us!”

III.

FOUR DEFICIENCIES IN MH

I was recently asked to identify Evergreen-like Issues negatively affecting HUD-Code manufactured housing and its’ land lease community sector. Of the dozen Evergreen Issues I routinely track, here the four I suggested this time around:

INFORMATION SHORTFALL. There are no longer any annual ALLEN REPORTS; or State of the Industry articles and addresses inclusive of land lease communities; a national registry of (25) lenders actively originating mortgages for communities; an annual directory of freelance consultants (like Don Westphal & now the Nadigroup) serving the industry and property type; a compendium of MH & LLCommunity print and online media; as well as a comprehesnive directory of state and province trade associations; an annually updated lexicon or glossary of MH trade terminology; a useful directory of GSE and NGO organizations interacting with MH and communities; an official definition of ‘affordable housing’, and how it’s faring nationwide; and finally, an annual directory of all HUD-Code manufactured housing firms. See what I mean?

LACK OF PROFESSIONAL PROPERTY MANAGEMENT EDUCATION & CERTIFICATION. Back in the early 1980s, I was one of the first Certified Property Manager (‘CPM’) members of the Institute of Real Estate Management (‘IREM’) to express an affinity for (then) ‘mobile home parks’. And via my first book, ‘Mobile Home Park Management’, reintroduced the realty asset class to ‘professional property management’ training and certification – in cooperation with MHI and its’ newly minted Accredited Community Manager (‘ACM’) program. After a decade there were only 100+/- fully accredited ACMs, so we debuted the Manufactured Housing Manager program and today there’re nearly 1,000 MHMs owning/operating communities in the U.S. & Canada. And here arises this problem: Except for a very few in person classes, the only way to become an ACM today is via an online education. And the MHM program is pretty much dormant, until someone steps forward to teach it via the textbook ‘Community Operations in the Manufactured Housing Industry’ (This is the 8th edition of the aforementioned MHPark text). So professional property management has regressed once again! MHI, MHEI & NCC listening?

LOPSIDED ADVOCACY. No easy way to address this shortfall. But MHI, in my opinion, continues to be a ‘big boys club’, dominated by the Big 3-C HUD-Code housing manufacturers, with smaller regional firms represented by MHARR. Similar situation relative to land lease communities. While the NCC division of MHI started off with enthusiasm and widespread support in early 1996, all that’s fallen by the wayside. Not even an NCC division meeting, I’m told, during MHI’s recent annual meeting. So, there’s a sorry and continuing need for balanced representation (i.e. advocacy) of all segments of the manufactured housing industry. Will this ever change? Probably not in my lifetime, as it will take a very charismatic leader(s) to shake MHI out of its’ complacency and decry the sorry attitude of ‘Here’s how we do things’.

LACK OF PUBLIC SUPPORT FROM HUD. Has long amazed and disappointed me. The very federal agency tasked with regulatory oversight of our industry does ‘next to nothing’ to promote what it readily agrees is the most affordable type housing in the U.S. today. How to change this?

III.
NATIONAL VIETNAM VETERAN REMEMBRANCE DAY

Occurs 29 March 2022. This is a day to thank and honor RVN veterans nationwide. Nine million served from 11/55 through 5/85, six million are still alive. Reach out and remember a Vietnam vet!

Blog Posting # 681. Copyright @ 18 March 2022. EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and or visit www.educatemhc.com Previous phone #s no longer connected.

Moto: ‘U Support US & WE Serve U! Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: This week’s posting is chockfull of financial advice, program change, and what a couple of our colleagues are doing with their retirement time and resources. Enjoy! GFA

I.

LOAN ORIGINATORS SPEAK OUT!

Did you see or read ‘Making Sound Financing Decisions in a Chaotic World’, penned by Tony Petosa, Nick Bertino, Erik Edwards, and Matt Herskowitz, all loan originators with Wells Fargo Bank?

Well, if not, here’s one of nine paragraphs that were chock full of good & timely advice relative to financing and refinancing land lease communities in today’s hectic investment climate.

“As far as acquisition financing is concerned, most commercial real estate investors recognize cap rates have continued to compress in recent years, particularly among land lease communities, which proved to be one of the most resilient asset classes throughout the COVID-19 pandemic. In order to try to maximize returns, we have seen some borrowers seek out interest-only loans at the highest leverage level possible. However, this type of financing structure in an increasing interest rate environment may be putting one’s property at refinance risk in the future. While 2007 may seem like a long time ago, it is important to remember that many commercial real estate owners at that time, who had taken out high leverage, short-term, interest-only loans, found themselves in quite a bind when those loans matured in a more conservative lending environment with higher rates. It is worth keeping the tough lessons learned from the last downturn in mind as we head into what may be an increasing interest rate environment.” (lightly edited. GFA)

To receive your own copy of the complete document, reach out to tpetosa@wellsfargo.com Also nick.bertino, erik.edwards, and matthew.herskowitz – all at wellsfargo.com Tell them ‘George Allen sent me!’

II.

NEW HOME FOR ‘I’M HOME’ PROGRAM

Here’s how the Press Release begins: “For nearly two decades, Prosperity Now, first as CFED (‘Corporation for Enterprise Development’), has housed the Innovations in Manufactured Homes (‘I’M HOME’) program…the nation’s leading resource for manufactured housing policy education, programming, communications, and events.” And here’s how the Press Release kinda ‘ends’: “Over the next few months, we will transition the program to the Lincoln Institute of Land Policy, a nonprofit, private operating foundation that seeks to improve quality of life through the effective use, taxation, and stewardship of land.”

Research into the Lincoln Institute of Land Policy finds it was founded in 1946 and is headquartered in Cambridge, Massachusetts. But more important, to manufactured housing aficionados, is the reality this institute is one of 20 members of the Underserved Mortgage Market Coalition – a coalition urging FHFA and both GSEs (Fannie Mae & Freddie Mac) to improve their loan performance (availability) serving families presently not in the traditional mortgage market. This includes elusive home-only mortgages needed by prospective buyers of manufactured homes being sited within land lease communities.

Next Step and ROC USA are the only two manufactured housing and land lease community-related organizations that I saw, presently among the 20 members of the Underserved Mortgage market Coalition. Neither MHI or MHARR are included among the coalition membership, and probably for good reason. (?)

As a personal aside, I’ve read the Lincoln Institute of Land Policy magazine for many years and have always viewed it, based on editorial and subject content, as a quasi-academic magazine sans a social and financial activist presence. Perhaps this is about to change as they seek to improve the quality of life for folk in need of chattel capital to finance their purchase of a manufactured home. Guess we’ll have to wait and see….

And this sidebar. When I googled ‘Innovations in Manufactured Homes’, guess what popped up ahead of Prosperity Now’s program? Innovations in Manufactured Homes – Clayton Homes. No surprise there, really, as Clayton has long been a leader in innovative manufactured housing.


III.

A NEW NOVEL & A UKRAINE DOG RESCUE

So, what do land lease community owners/operators do when they retire? Some become world travelers, others sportsmen (hunters), some novelists, while still others take on altruistic and service projects of one sort or another. To that end, Charles Irion’s new mystery/adventure novel landed on my doorstep recently. And given the war turmoil in Ukraine these days, I was pleased to see ‘one of our own’ step forward to assist in unique rescue operations.

‘Murdered by Gods – Timbuktu’ is Irion’s latest novel and I’m looking forward to getting started on it. This is his 16th book, featuring a heady mix of fiction and non-fiction works over the past few decades. And know what? I already know it’s going to be a good ‘attention getting’ read! I’ve watched his wordsmithing and style improve with each book, and the last few have been difficult to put down until the end. Google Charles Irion and order his books via Amazon.com

Then there’s Anne-Marie Wiseman. Remember her? She helped grow a land lease community portfolio a while back, managed it for years, and retired when the properties sold. Well, if you were present at the Networking Roundtable in Colorado Springs in 1999, you’ll recall Anne-Marie being present with two Borzoi Russian Wolfhounds, now generally referred to as being The Borzoi. Well, she’s director of the National Borzoi Rescue Foundation-International, working out of Florida. And just within the past couple weeks, she’s arranged for the rescue of several Borzoi from the Ukraine. To reach and support her efforts, telephone (844) NBRFZOI; better yet, email her via annmarieNBRF@gmail.com

Know of other recent retirees who’re doing something interesting, charitable, adventuresome or in service to society? Let me now via gfa7156@aol.com


George Allen, CPM, MHM
EducateMHC

Blog Posting # 680. Copyright @ 11 March 2022, EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and/or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: Parts I & II are chock full of helpful information and statistics relative to manufactured housing and land lease communities. Part III simply lets you know what I’m doing these days.
I.

AN HISTORIC FIRST FOR MH!

All five reporting agencies and manufactured housing advocacy organizations reported the very same number of new HUD-Code homes shipped during the month of January 2022, resulting too in the same Year to Date total as well. In both instances this magical number is 9,110 units!

The reporting agencies and advocacy organizations? Institute for Building Technology & Safety (‘IBTS’), Department of Housing & Urban Development (‘HUD’), Manufactured Housing Institute (‘MHI’), Manufactured Housing Association for Regulatory Reform (‘MHARR’) and EducateMHC.

Why is this ‘historic first’ important for the manufactured housing industry? Because it demonstrates that all five entities are indeed capable of reporting the same benchmark statistic, without bastardizing the basic shipment volume total by deducting the number of Destination Pending units one month, only to add them back to the next month’s total.

We can only hope that this public display of industry unity continues on into February and the months to follow! MHI has a new statistician on board; let’s hope he sees the wisdom of unity in reporting data like this, and follows suit with IBTS, HUD, MHARR and EducateMHC.



II.

PUBLIC MARKET SIDE OF MH & LAND LEASE COMMUNITY INVESTING

It has long amazed me no one routinely reports stock performance of manufactured housing-related firms, and real estate investment (‘REIT’) land lease community property portfolios. I’ve been doing so for several years, until we stopped publishing the Allen Letter and The Allen Confidential business newsletters. Now I simply send the ‘MHShipment Volume & Stock market Report’ to several dozen major firms in the industry and throughout the realty asset class. Here’s the gist of what we learned on 4 March 2022.

Manufactured housing manufacturers:

Berkshire Hathaway, Inc. (BRK-A), i.e. Clayton Homes. $483,000; up from $476K in February

Skylilne Champion Corporation (‘SKY’). $66.71; down from$73.95 in February

Cavco Industries, Inc. (‘CVCO’). $267.64; down from $292.00 in February

Legacy Housing Corporation (LEGH’). $23.76; down from $25.52 in February

Nobility Homes (‘NOBH’). $31.45; down from $32.10 in February

Land lease community portfolio firms:

Equity Lifestyle (‘ELS’). #1 on 32nd ALLEN REPORT. $77.38; down from $77.38 in February

Sun Communities (‘SUI’). #2 on 32nd ALLEN REPORT. $181.10; down from $193.36 in February

UMH Properties (‘UMH’). #6 on 32nd ALLEN REPORT. $24.05; up from $24.02 in February

Flagship Communities. (#23 @ 32nd ALLEN REPORT. $18.35; down from $18.50 in February

Manufactured Housing Properties. #28 on 32nd ALLEN RPEORT. $3.25 In February

Manufactured Housing/land lease community composite stock index (‘CSI’) @ March 2022 = $713.. down from $738 in February.

If you’d like to receive the ‘MHShipment Volume & Stock Market Report’ each month, simply request it via email message to gfa7156@aol.com
III

WORK BEGINS ON NEW BOOK

Those of you who know me well, will recall I’ve been wanting to review 400+/- personal letters I sent home to Carolyn, from Vietnam, during 1968 and 1969. Well, I’ve finally started on this daunting project. The letters have been removed from steel ammunition boxes, placed in chronological order, and are not being typed.

The ‘working title’ is simply Dear Carolyn & Susan. In the preface I explain why it’s taken 60 years to write this book (my 16th book). And the introduction describes what was going on among the three of us ‘way back when’ Carolyn and I were in our early 20s, and Susan a toddler.

When will this project be finished? Not for some time. I’m reading each handwritten letter, then pulling interesting narrative describing what’s going on at the time. And yes, I have some concern about what I’ll run into when I read letters penned while in a foxhole or underground bunker before, during, and after combat. Guess I’ll cross that bridge when I get to it.

In the meantime, if you’ve not yet read From SmittyAlpha6 to MHMaven, my autobiography, but would like to do so, visit www.educatemhc.com to order it, or simply google the title online. The Smitty Alpha 6 reference is to my radio call sign while a U.S. Marine lieutenant company commander in a Shore Party Battalion in late 1969.

Retirement. For the first time in my life I’m enjoying opportunities to do what I want to do, when and where I want to do it. This book project is a key part of that, along with helping Carolyn care for our nearly one year old great granddaughter Emerson. And we’re enjoying spending the most time together since our dating days back at Eastern Baptist College in 1963.


George Allen, CPM, MHM
EducateMHC

Blog Posting # 679. Copyright @ 25 February 2022, EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and/or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: Part I contains late and important industry/asset class news. Part II gives us all something to think about. And Part III shows you ‘what might have been’ OR ‘what will indeed be’. Have you read From SmittyAlpha6 to MH Maven (my autobiography) yet? Several readers have expressed surprise at learning I was trained, while a Marine lieutenant in Vietnam, in 1969 & 69, to be a ‘suicide bomber’ (i.e. Atomic Demolitions Munitions or ADM technician). And there are other surprises as well. Get your copy via www.educatemhc.com GFA

I.

ELS, INC. ACQUIRES DATACOMP & MHVILLAGE

Quoting directly from ELS’ Fourth Quarter Report: “In December 2021, we completed the acquisition of MHVillage/Datacomp for a purchase price of $43 million. MHVillage is the premier online marketplace dedicated to manufactured home buying and selling. Datacomp provides independent, market-based valuations for manufactured homes in land lease communities.”

A few sidebar observations relative to this surprising, major business transaction:

• My understanding is this deal includes acquisition of MHInsider magazine, the sole remaining print trade publication serving manufactured housing and land lease communities. No change in staff, so hopefully, little to no change in editorial stance.

• Speaking of ‘land lease communities’; it’s encouraging to see the largest portfolio owner/operator of land lease communities in the world, transition away from ‘manufactured home community’ and ‘mobile home park’ trade terminology.

• This transaction unintentionally highlights, in my opinion, a perennial legacy recognition shortfall per the RV/MH Heritage Foundation’s Hall of Fame recognition of industry and realty asset class pioneers and notable personalities. More on this in Part II following….

II.

DESERVED, MARGINAL & NO RECOGNITION

Assuming here you’re familiar with the RV/MH Heritage Foundation and its’ prestigious Hall of Fame, library& museum in Elkhart, IN. If not, encourage you to visit www.rvmhhalloffame.org

I was honored to be inducted into the RV/MH Hall of Fame as one of the Class of 2011, and attend the annual induction banquet every August. Carolyn and I donate $ annually to support the foundation, and recently gifted our extensive collection of MH and land lease community books (Most comprehensive in the U.S. & CN.) to the library, where they are now on special display. And we host MH trade events whenever possible, at the facility in Elkhart.

There are 427 members of the RV/MH Hall of Fame. And on August 15th, ten more will be added. The five MH inductees will be David Carter, Raylen Gritton, Harry Karsten, Eugene Landy, and Tim Williams. To purchase banquet tickets, phone (574) 293-2344. Join me there!

However; and again in my opinion, all is not as well as it could be relative to the RV/MH Heritage Foundation’s Hall of Fame. There are deserving individuals who’re yet to be honored, the occasional marginal candidate, and more than a few who’re ‘deserving’ but likely never to be inducted. Some examples…

The founder of DATACOMP and MHVillage (circa 1986), Theo (‘Ted’) A. Boers – also one of the few published authors in the manufactured housing industry, has yet to be inducted into the RV/MH Heritage Foundation’s prestigious Hall of Fame. *1 Few would argue the observation that Ted and his firms have improved the face of manufactured housing and land lease communities, by dint of their valuation of manufactured homes, and marketing of same within and outside our unique income-producing properties. And don’t forget MHInsider magazine!

And there are additional deserving-but-unrecognized pioneers and notable personalities throughout the manufactured housing industry and land lease communities.

Another example of someone who’s ‘changed the face of manufactured housing and land lease communities’ is the founder, president and CEO of London Computer Systems – better known throughout our industry and realty asset class as Rent Manager (circa 1987). Most mid-sized to larger land lease communities utilize this firm’s accounting and property management software on a daily basis, year in year out. But, once again, the pioneering notable personality behind this well-known and respected firm continues to await induction into the RV/MH Hall of Fame.

Herein, I’m making the assumption the individuals have not declined induction.

And Yes, there’re more pioneers and notable folk not honored; unfortunately, some have died.

The late Tom Raper. You’ve likely never heard of him – unless you’re heavily into RVs and live or work in the Midwest. There was a time, several decades, when Tom was owner/operator of the largest RV dealership in the U.S.! He was flamboyant. For many years, more than a dozen full-sized highway billboards, advertising his dealership, could be seen along Interstate I-70 where it went through Richmond, IN. He was a generous philanthropist, even honored with a street named after him in his hometown. But recognition? Still in the wind. Maybe someday.

And there’s former professional football player and CPA, big Tom Horner, Jr., who acquired a sizeable portfolio of land lease communities during his lifetime. But that’s not why he deserves induction into the RV/MH Hall of Fame. Tom was a perennial board member in two states, and created the ‘21st Century National Manufactured Home Community Rating system’ introduced in the text, ‘How to Find, Buy, Manage & Sell a Manufactured Home Community’. He was one of the 19 community owners who met in Indianapolis in 1993 to improve asset class advocacy.

The list continues, but not here. There are longtime retirees who come to mind. One of them introduced ‘resident relations’ to our realty asset class 25 years ago; the other one, during his prime, was one of the top independent (street) MHRetailers (& multi-communities owner) in the U.S. And how’ bout U.S. ex-pat, known throughout Canada as ‘Mr. Manufactured Home’?

At this time I won’t comment much on ‘the other side of the coin’, i.e. individuals selected for induction into the RV/MH Hall of Fame who’re salaried executives or successful businessmen and women, but who do not stand out, in my opinion, given their lack of notable influence outside their state or company of employ, nor tangible contributions to the advancement of the MH industry at large.

Hope to see you at the RV/MH Hall of Fame induction banquet on 15 August in Elkhart, IN.!

End Notes.

1. Ted Boers’ books include Three Simple Rules – Guaranteed to Improve Your Finances! and Demons of Poverty – how to improve the wellbeing of people in Haiti. Latter book is available from Amazon.com

III.

GOING TO MHI’S 2022 CONGRESS & EXPO?

When? 11-13 April. Where? Rosen Shingle Creek in Orlando, FL. What? Three high-end manufactured homes on display, 100+ exhibitors and sponsors, one keynote industry outlook session, 12 breakout educational workshops (more on this in next paragraph), two networking receptions, two optional forums re Developer Seminar & NCC Spring forum, and two optional fundraisers. For more information, email: events@mfghome.org

OK, so what will you likely NOT experience at this year’s Congress & Expo event?

Either or both these educational workshops I proposed to the Manufactured Housing Institute:

• Professional property management training for land lease community owners and managers! Having created and taught the popular Manufactured Housing Manger™ certification program since year 2001, today there are 1,000 MHMs ™ owning and managing communities throughout the U.S. and Canada. The course textbook, ‘Community Management in the Manufactured Housing Industry’ will be available for purchase after the seminar. Or visit www.educatemhc.com to purchase the text online. This is the book that should be in every land lease community information office!

• Retail Marketing & Sales within the Land Lease Community. In year 2016 I pioneered the first national class offered re ‘Four Steps to Selling & Financing New Homes On-site Within Land Lease Communities’. Besides the seminar synopsis, every participant will receive a 3”X 5” plastic wallet card containing said ‘four steps’, as well as the ‘Six Right Ps of Marketing’ new homes within communities. Also the much-used ‘Ah Ha! & Uh Oh! Worksheet’ for estimating sale and purchase prices of new manufactured homes in any local housing market in the U.S. In my opinion, this topic continues to be the most needed in our industry/asset class today, after professional property management.

Anyway, I suggested these two topics to MHI for consideration. At this writing I’ve not heard back as to which one, or either or neither, will be included in the Congress & Expo. But wanted you to see/read what it is you’ll likely be missing at this year’s event – unless they decide otherwise.

IV.

LATE BREAKING NEWS! Women Advancing Manufactured Housing (‘WAMH’) will meet virtually at 7PM on 15 March 2022. Paula Reeves, president of CIS Financial will be the special guest. For more information, contact Maria Horton via maria@newportpacific.com

***

Blog Posting # 678. Copyright @ 25 February 2022, EduateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and/or visit www.educatemhc.com Previous phone # no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: This week TMI (‘too much information’)? Maybe. You decide. If I don’t tell you, who will? (And ‘that’ question may take on even more meaning during the week or two ahead!). Whew! Our industry and realty asset class is surely a-changing! GFA


I.

LACK OF SUPPLY HOBBLES MHINDUSTRY

A 2022 Conundrum (‘hard question’) for HUD-Code manufactured housing industry! If, according to the Wall Street Journal, on 19 February, “…the biggest issue affecting the housing market seems to be the lack of supply’, WHY are HUD-Code housing manufacturers not displaying their product at regional trade shows (e.g. canceled Louisville MHShow in January 2022)? And now I learn, there will be little to no product at the Biloxi Show. Instead, HUD-Code manufacturers will be relying on booth space marketing and networking to effect contact with prospective wholesale purchasers (e.g. land lease communities and independent – street – MHRetailers) of said product. Therein lies the conundrum: But WHY?

So, what has HUD-Code manufactured housing been doing to answer lack of housing supply?

By the numbers (i.e. according to Institute of Building Technology & Safety or IBTS), during pre-covid 2018 the HUD-Code manufactured housing industry shipped 96,555 new homes nationwide.*1 At the very beginning of covid, in 2019, that number dropped to 94,615 new homes; and in the midst of covid, further dropped to 94,390. BUT, during year 2021 (semi-post covid) the industry rebounded to 105,772 new homes shipped! So, production momentum is there; just why aren’t HUD-Code housing manufacturers pushing those totals even harder? Hmm. Supply chain issues, new employee recruiting challenges, lack of home-only financing, and what else?

And the unanswered ‘elephant in the room’ question continues to be: WHY are new HUD-Code housing prices continuing to increase unabated and sans any embarrassment?

If you’d like to contribute to this timely discussion, simply email me: gfa7156@aol.com

End Note.

1. IBTS does not tally and publish annual shipment totals for manufactured housing; rather, they only do so monthly. It’s the adding together of their 12 monthly totals that provides the figures just mentioned. These numbers are NOT sullied by subtracting and then adding back Destination Pending units each month. GFA


II.

GSE REFORM, PAST & PRESENT

A recent story, by Don Layton, titled ‘Is GSE Reform Dead?’ covered a lot of territory, past and present, from two perspectives: *1

Between 2009 and 2016, influencers from a number of environments looked to replace two GSEs (‘Fannie Mae & Freddie Mac’) with ‘something different’; collectively referred to as ‘comprehensive GSE reform’. Well, these alternatives have pretty much moved on, as they reflected political philosophies of their proposers (e.g. “liberals and progressives looking for more government involvement and control, conservatives looking for less”) and bogged down, even given congressional interest in 2014.

Today, there’re two key GSE reform activities quietly underway. The “…two companies are retaining all their earnings to build capital”, making them more financially stable, easing conservatorship exit.*2

A second reform occurring is via the Federal Housing Finance Agency (‘FHFA’), the GSE’s overseer, effecting limited revisions to regulatory minimum capital rule, reining in risk of GSEs making uneconomic decisions.

Off topic, and despite recent musings to the contrary, past inaction by the GSEs, relative to Duty to Serve (‘DTS’) plans affecting HUD-Code manufactured housing, has unnecessarily crippled the industry’s ability to answer this nation’s persistent affordable housing (shortage) challenge!

End Note.

1. Housing Perspectives, ‘Research, trends, and perspective from the Harvard Joint Center for Housing Studies/, dated 14 February 2022.

2. “As of 9/30/2021, the GSE’s, between them, have a net worth of $67.5 billion, a much-improved position over the near zero figure of a few years earlier.”

III.

EVERGREEN ISSUES OR PECCADILLOS?


Evergreen (‘always relevant’) Issues, relative to the manufactured housing industry and land lease communities, have long been of lively and important interest to me as an observer, businessman (now retired) and writer/historian. To that end, I maintain a list of 18+/- Evergreen Issues updated at least annually. If you’d like me to email you that file, simply request it via gfa7156@aol.com

Anyway, it’s become apparent to me during recent months there’re other ‘always relevant’ pairings of perspectives worthy of identification and examination. I’ll briefly describe each one and leave it to you to decide if it rises to the level of being an Evergreen Issue or not.

Overvaluation of mid-sized and large land lease communities, oft driven by new investors from outside the manufactured housing industry; almost always resulting in excessive rental homesite rate increases soon after ‘closing’ of deals. And this phenomenon is inflamed, in my opinion, by simple greed on the part of some, but not all, property sellers. What’s the idiom? ‘It takes two to tango!’ And that certainly is the case in these sorry situations, forcing homeowners/site lessees to become victims.

There’s a recurrent shibboleth (‘slogan’) going ‘round these days; specifically: ‘Raw land development into land lease communities is the answer to the affordable housing shortage!’ Not so. Raw land development is LOCAL housing market driven – for better or worse. If city/county ‘fathers’ really want such a rental community nearby they’ll help finance the project and deal with NIMBY, LULU, & BANANA attitudes.*1 Why recurrent? Same shibboleth the last go-round, back in 1992 when J. Wiley & Sons published Development, Marketing & Operation of Manufactured Home Communities.

We lost 10,000+/- independent (street) MHRetailers at the turn of the century (i.e. when we lost easy access to chattel capital for new home sales financing), and community owners/operators learned how to ‘buy, market & sell new homes on-site’. Well, as they say, ‘the worm has turned’ and new MHRetialers want ‘back in’ the communities – but will not do so as long as community owners/operators compete with product and pricing. What’s the challenge? Community owners/operators oft sell at slightly above cost, to fill vacant rental homesites. MHRetailers won’t risk losing customers by sending them into discounted price environments. What to do? Practice what I did, as a community owner, back in the late 1970s thru the 1990s. Engage in the ‘Care & Feeding of MHRetailers’ via regular visits to sales centers, with business cards, trifold brochures, and freshly baked cookies in hand. At one time in Indianapolis, all 18 MHRetailers (now down to two) had coffee mugs on their desks and leather-like binders in hand for writing deals, all with my property logos prominently shown. Oh yes, and my assurance I would not steal their prospective homebuyers.

Know the peccadillo that bugs me most? Our realty asset class’ inability to support and sustain in person training of on-site and regional property staffers as professional property managers! Every other type of commercial real estate investment, from multifamily rental properties, to shopping centers to office buildings make it a point to ensure their employees – managing high-priced properties, are all trained and certified as professional property managers. But not land lease communities! I trained and certified 1,000+ Manufactured Housing Managers, in person, between 2011 and 2021. Today there is no regularly scheduled in person training and certification of this sort! So sad!

End Note.

1. NIMBY = ‘Not in my back yard’, LULU = ‘locally unwanted land use’, & BANANA = ‘build absolutely nothing anywhere near anyone’


IV.

CONGRATULATIONS ART TUVERSON!

“Congratulations to Art, and Berkadia Small Loans, for their recognition as GlobeSt Real Estate Forum’s 2022 Rainmakers in Debt & Equity.”

The magazine article goes on to state that “…Art Tuverson represents a unique niche in the multifamily housing industry, specializing in manufactured housing communities and the RV resort industry.”

V.

DID YOU KNOW?

Median sales price for new homes in the US is now at $350,300. Up 15.4% from last year! The FHFA , however, in a recent press release, put the increase at 17.5%.

Rumor has it a major land lease community portfolio owner/operator is acquiring, or has acquired, one of – or the largest, MH appraisal, marketing, and communication firm in the industry.

In next week’s blog posting I’ll tell you what you might well miss if/when you attend the MHCongress in April 2022.

And that’s all for today folks!

George Allen, CPM, MHM
EducateMHC

Blog Posting # 677. Copyright @ 18 February 2022, EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and/or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: Much interesting news for you this week, beginning with the identity of ten states where HUD-Code manufactured housing is the most affordable. Then there’s some teaser information about interest in forming a new national trade body to truly represent the interests of land lease community owners/operators across the board – not just the major portfolio players. And a further reminder of how we, as an industry, shipped 105,772 new homes during 2021 – and don’t let anyone tell you differently! Finally, resident-owned communities continue to materialize across the U.S. – and now, finally in California! GFA

I.

DID YOU KNOW?

The Top Ten States for Manufactured Home Affordability, based on 2021 sales data, and first published in MHVillager on 9 February are as follows:

Kansas. “New manufactured homes in Kansas sell for an average price of $51,780, the lowest average price in the entire country.” And pre-owned manufactured homes sell for $24,306+/- apiece.

Arkansas. There the new manufactured home average price is $56,812; and, pre-owned manufactured home at $50,394.

Mississippi. Down there, new and pre-owned homes, throughout the state, sell for just about the same amount: 457,361.

Oklahoma. Now here’s a dollar spread for you. New manufactured homes sell for $68,743 on the average, and pre-owned homes for $40,777.

North Dakota. Up there the average price of a new manufactured home is $60,841; pre-owned homes at $44,969 apiece.

Missouri. Here’s yet another pretty broad price spread; new manufactured homes at $61,642 and pre-owned homes at only $37,026.

Virginia. Among the original 13 states (colonies), this state boasts an average new manufactured home price of $61,719, while pre-owned homes actually cost more, at $63,436 apiece.

Pennsylvania. New manufactured homes in this state average $62,523 in average price, while pre-owned manufactured homes are sold for an average of $37,307.

Kentucky. Here’s another ‘close comparison’ between average sale prices for new and pre-owned manufactured homes. In the former instance = $63,742; in the latter instance = $61,970.

Georgia. The tenth state on this ‘affordable housing’ list, sees its’ new manufactured homes going for $64,397, while pre-owned manufactured homes sell for $41,900. Apiece.

So, now you know where to find the most affordable new and resale manufactured homes ‘for sale’ in the U.S. these days.

II.

RUMOR OR FACT?

Community Owners (7 part) Business Alliance, a.k.a. COBA7 ended its’ six year run in 2020; SECO (Southeast Community Owners), launched in 2011, and EducateMHC (circa 2020) have become valuable national resources for land lease community owners/operators; and the National Association of Manufactured Housing Community Owners (‘NAMHCO’) in AZ appears to be dormant at this time. What else is there?

This leaves MHI’s National Communities Council (‘NCC’) division as the sole trade body (lobbyist) representing political and regulatory interests of land lease community owners/operators.

But maybe not for long. Email messages have been flying, and preliminary meetings held, pursuant to the probable soon launch of a Manufactured Home Community Owners Association of America (‘MHCOAA’) body, purposed to improve the reputation of the realty asset class, directly counter negative press, and encourage professional property management among owners and property managers. And its’ activities will likely be communicated by an existing trade publication. Interested in participating? Let me know via gfa7156@aol.com and I’ll pass your contact information onto the organizers.

III.

IN CASE YOU MISSED IT!

According to the Institute for Building Safety & Technology (‘IBTS’), HUD’s official scorekeeper of the number of new HUD-Code manufactured homes shipped monthly, December’s total (8,014), when added to that from the first 11 months of the year, pushed us – for the first time in 15 years, above the 100,000 target goal. Our industry’s 2021 new MH shipment total was and is, 105,772. And don’t let anyone tell you differently. This 105,772 is the consensus total touted by HUD, MHARR, and EducateMHC.

IV.

ROC USA NOW IN CALIFORNIA!

ROC USA, on 4 February, announced the sale of The Woods, a premier 55+ senior community, located in Little River, CA., to the homeowners/site lessees (i.e. residents). This is the first ROC USA-supported resident-owned community in the state of California!

ROC USA, to date, has helped nearly 300 land lease community owners/operators sell their properties to their residents for fair market values. For more information, contact aromeo@rocusa.org

V.

FANNIE MAE & FREDDIE MAC

Yes, there’s some news afoot relative to the two GSEs, but I’ll hold off telling you about it until next week’s blog posting. Suffice it to say, they’re coming under some Senate scrutiny, and there are questions about their future in receivership.


George Allen, CPM, MHM
EducateMHC

Blog Posting # 676 @ 11 February 2022: EducateMHC

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, realty asset class historian, trend spotter, education resource & textbook supplier for land lease communities throughout North America!

To input this blog and or connect with EducateMHC, telephone (317) 881-3815, email gfa7156@aol.com and/or visit www.educatemhc.com Previous phone #s no longer connected.

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing and land lease communities as U.S. # 1 source of affordable attainable housing! Be MHM certified!

INTRODUCTION: Some extremely Good News, some Not so Good News, and some Exciting News! Also a return to some potpourri for your reading enjoyment. GFA


I.

2021 = 105,772 NEW HUD-CODE HOMES

Yes, you read that right! For the first time in 15 long years, the manufactured housing industry shipped more than 100,000 new HUD-Code homes throughout the U.S. Now that’s something to celebrate! Let’s say it again: 105,772 new HUD-Code homes shipped during all of 2021! *1

According to MHI-sponsored Dr. Stephen C. Cooke’s ‘production value’ formula for manufactured homes, the 8,014 homes shipped during year 2021 are valued at $451 million. And our 105,772 new homes shipped throughout year 2021 are valued at $4.56 billion! *2

End Notes.

1. Most recent previous year during which more than 100,000 new homes were shipped, occurred during year 2006, and that year’s total was 117,510 units.

2. Dr. Cooke’s ‘production value’ per new manufactured home is $43,126. That factor is now a decade old and MHI, in my opinion, should have the value updated to 2022.




II.

A BAD WEEK FOR MH & COMMUNITY STOCKS

That is, with the exception of Berkshire Hathaway, Inc. (‘BRK-A’) – owner of Clayton Homes, whose stock price on 3 February increased to $476K. Everyone else (four manufactured housing firms and five land lease community firms – mostly REITs) saw their stock prices decline. *1

Skyline Champion Corporation (‘SKY’) @ $73.95
Cavco Industries, Inc., (‘CVCO’) @ $292.00
Legacy Housing Corporation (‘LEGH’) @ $25.51
Nobility Homes (‘NOBH’) @ $32.10

Equity Lifestyle (‘ELS’) @ $278.43. (#1 on 32nd annual ALLEN REPORT)
Sun Communities, Inc. (‘SUI’) @ $193.36 (#2 on 32ne annual ALLEN REPORT)
UMH Properties, Inc. (‘UMH’) @ $24.02 (#6 on 32nd annual ALLEN REPORT)
Flagship Communities, on Canadian Stock Exchange @ $18.50 (#23 on 32nd ALLEN REPORT) Manufactured Housing Properties, Inc., (‘MHPC’) @ $2.53 (#28 on 32nd ALLEN REPORT)

Based on above data, the Manufactured housing/land lease community Composite Stock Index (‘CSI’) dropped from $788.87 on 3 January 2022, to $738.00 on 3 February 2022.

End Notes:

1. All stock prices were recorded mid-morning on 3 February 2022.


III.

WAMH, PRONOUNCED ‘WHAM’!

Time has arrived for a new national organization where questions about manufactured housing can be addressed, where women will be recognized for their individual accomplishments, and where, as an advocate, we can help improve the perception of our industry by touting its’ positive features!

And the name of this new organization? Women Advancing Manufactured Housing (‘WAMH’); however, pronounced ‘WHAM’!

Tuesday evening, 2 February, saw more than 40 men and women from manufactured housing and land lease communities, meet virtually for more than an hour, to organize and introduce the new organization conceived at the virtual SECO meeting this past fall. And this Mission Statement was presented:

‘Women advancing manufactured housing by supporting and elevating females in the industry, improving the perception of manufactured housing throughout the country, collaborating, and helping expand each member’s knowledge.’

WAMH’s executive committee is comprised of Justine Natalie (co-chair), Maria Horton, MHM (co-chair), Sherrie Clevenger (deputy chair), Kim Shultz-Rainford (secretary), and Maryuri Barberan, MHM (treasurer). Two additional founding members are Julie Straus and Chandra Houston.

Next event for WAMH will occur 15 March, featuring a guest speaker – yet to be announced. For more information about WAMH and this event, visit:
https://www.linkedin.com/groups/14029066/ and https://womenadvancingmanufacturedhousing.com/

On a personal note, by someone not present at the meeting but wholly supportive of what these women executives are doing, I’m pleased once again, to see women leaders take the initiative to their professional lot and the reputation of the manufactured housing industry going forward. A similar attempt was made two decades ago, but failed. This time around, however, as an industry and realty asset class, we need such enthusiasm and focus all the more! *1 GFA

End Note.

1. The turn of the century women’s executive group went by the name of Manufactured Housing Executive Women (‘MHEW’). It met during annual Manufactured Housing Congress sessions.






IV.

POTPOURRI

Did you know there’s a ‘trailer park musical’ titled LUST ‘N RUST’? Well there was (I saw it in 2001) and is today (google it). Gist? A young man comes to town to start a new job but needs a place to stay. At the local greasy spoon restaurant he meets a tattooed waitress who takes a liking to him and suggests he stay with her in her ‘trailer’ – but not to arrive until she kicks out her soon to be ex-husband. Anyway, the musical is full of trailer stereotypes from start to finish. Just one more of the entertainment standards we must fight on our way to land lease community image improvement.

And then there’s Trailer Park of Terror (Yep, google it too). First appeared back in 1975. Then in 2006 I was invited to invest in a Hollywood film version of the tale. I declined but it materialized anyway. Another figurative albatross our industry must bear for the time being.

Here’re nine holistic principles to a clutter-free life:
1. Handle one item at a time
2. A path (place) for everything, everything on its’ path (place)
3. Don’t cover your tracks, i.e. Don’t toss clutter where you’ve already cleaned
4. Group like things together
5. Take breaks
6. Leave no stone unturned
7. Dispose with ceremony (Imbue the letting-go process with flair)
8. After cleaning or working, revel in the empty space and accomplishments
9. Acknowledge steps one takes and resist the temptation to look ahead to see how much is left to do.
Sorry, but I don’t recall where this came from; but it’s in my potpourri file. GFA

Then there’s this NOTICE I once saw and saved for now:

“This department requires no physical fitness program.
Everyone gets enough exercise jumping to conclusions, flying off the handle, running down the boss, knifing friends in the back, dodging responsibility, and pushing their luck.”

George Allen, CPM, MHM
EducateMHC