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

Blog Posting # 665 @ 19 November 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EduateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Get Ready for a Grand Thanksgiving Holiday with Friends & Family. If you’re talkative people you might want to get the described eBook ASAP, to prepare for those conversations! And, ever look back to ‘predictions of the future’, prepared and shared by folk who should know? Well Part II of this blog posting does that big time. Enjoy!

Hey, guess who’s buying copies of my autobiography, ‘From SmittyAlpha6 to MHMaven’? Real estate brokers, for clients to whom they just brokered a land lease community. And, folk using the book as Christmas presents. Just saying….www.educatemhc.com

I.
GET READY!

Don’t let your Thanksgiving dinner table conversations be shattered by angry political conversations. The Leadership Institute provides political communications training for conservatives. And now there’s an eBook with practical instructions for everyone:

202111 Holiday eBook Landing Page (Treatment)

First section of the eBook discusses the foundational mindset necessary to have fruitful conversations.

Second section considers how to prepare for a political discussion with family members who disagree with you.

Third section deals with the practical elements of a good argument and discusses some relevant examples.

I’ve already read the nine pages eBook and wish I’d had it in my possession ‘years ago’.

Happy Thanksgiving!
II.

THE FUTURE THAT IS NOW!

Ever look back at a formal ‘prediction of the future’ to see how it materialized over decades?

Well, on 23 November 1997 – that’s nearly 25 years ago, Walter R. Young, Jr., President & CEO of (then) Champion Enterprises, as well as MHI, delivered a speech to members of the Iowa MH Association celebrating their 50th anniversary. The talk was titled:

‘The Future of the Manufactured Housing Industry’. This speech was recorded for prosperity within the pages of the association’s 50th anniversary historical record. What follows here are direct quotes from Walter Young, followed by editorial comments penned in accords with contemporary (Year 2021) perspective.

“…since 1990, our industry has grown to the tune of 93 percent! The site-built industry…has grown just 30 percent. Today, our homes constitute 32 percent of the single-family housing market. Just seven years ago we held only 26 percent of the market. We are now a $23 billion industry.” P.65

*Yes, in 1990 we shipped 188,172+/- new HUD-Code homes; in 1997 we shipped 353,377+/- homes. We were ‘on a roll, but it didn’t last long.*1

“When I walked into Champion in 1990, they were filling out their Chapter 11 paperwork. They had lost $30 million in five years. Suppliers wouldn’t ship to us; banks wouldn’t talk to us. Our stock was overpriced at 50 cents a share.” P.66

*On 3 November 2021, Skyline Champion Corporation (SKY) stock price was $72.42 per share!

“It took a while for our industry to recognize customers simply wanted homes that looked like homes – not homes that looked like trailers. Our customers wanted the same creature comforts and the same level of quality site-built homes had to offer.” P.66

*As it turned out, our industry designed and shipped many Developer Series homes (a.k.a. ‘big box = big bucks’) homes during 1997 & 98; until ‘easy access to chattel capital’ ended at the turn of the century. And it took until 2018 before the CrossMod design was ready for market.

“At Champion, our customers are not (sic) longer limited to the two extremes of either ‘Generation X’ or the ‘AARP set.” P.66 (Which is to say ‘newly wed & nearly dead’).

*Generation Y (‘Gen Y’) ‘millennials’ are our customers now, during 2021. They’ll soon be followed by Generation Z (‘GenZ’) ‘zoomers’ – the children of Generation X folk from way back in Walt Young’s day. Hmm. Ever wonder what comes after Gen X, Y, & Z?

“Manufacturers have also changed. Although the industry has doubled in size, the number of manufacturers has decreased. In fact, at the end of 1995, the top four manufacturers in our industry held 50 percent of the (national) market.” P.67

*Today’s manufactured housing industry is less than one third the size it was in 1997 (i.e. 1997 = 353,377+/- & 2020 = 94,390 new homes shipped), with the top three (or Big 3-C) HUD-Code housing manufacturers (i.e. Clayton, Cavco, Skyline/Champion) garnering a whopping 82+ percent of national market share – upon the acquisition of Commodore Homes by Cavco Industries during 2021. Pareto’s Law: 80% of production from 20% of the participants.

“We’ve seen Centex purchase Cavco. Pulte has been using manufactured housing in several of its developments, and just recently, opened a retail center. And, Zaring has begun retailing.” P.67

*Three of these four firms have passed from the HUD-Code housing scene….More to follow?

“We’ve seen community ownership change hands from ‘Mom & Pop’ parks to corporations and real estate investment trusts or REITs. Four REITs continue to grow in size through aggressive acquisition and consolidation. Chateau Communities, for example, now manages 43,000 spaces! All four REITs manage over 100,000 spaces.” P.67

*Nope. Chateau Communities is long gone, having sold out to Hometown America in 2003. And yes, the four REITs continue to grow in size, from the 88,450 rental homesites owned/operated in 1994, to 300,566 rental homesites today during year 2020. Unfortunately, no more ALLEN REPORTs ‘keeping score’ from year to year.

“Let’s do some crystal ball gazing….” P.67 Here’s what Walt predicted in 1997.

“In 10 years I see factory-built housing supplying 50 percent of our nation’s new housing. If we do our job, we can improve America’s home ownership from 65% to 70% in 10 years.” P.68

*Not without financing! Today we’re lucky if we’re supplying five percent of U.S.housing starts.

“Our homes will continue to evolve dramatically. Multi-sections may grow to over two-thirds of our mix.” P.68

*Nope! Constant vacillation balances between 45 & 55 %es; singlesection & multisection.

“The financing and zoning issues that plagued us in the past will become faint memories. Fannie Me and Freddie Mac will be common names in the industry.” P.68

*No & Yes! Financing and zoning issues continue to plague our industry. And yes, the two GSEs have become commonplace, of sorts, but have not delivered chattel $ via their Duty to Serve (‘DTS’) plans. But ‘affordability’ is rumored to be a much higher priority during year 2022.

“…consolidation may well change the face of the retail business as we know it today. There will be independents out there. But, we predict independents will make up a much smaller piece of the retail mix in even the next three years.” P.68

*Boy, Walt was right on this one! Shortly after the turn of the century, 10,000+/- independent (street) MHRetailers and company stores went out of business when the industry lost its’ easy access to chattel capital. However, that slack was subsequently taken up by the marketing and sale of Community Series Homes (‘CSH’) on-site in land lease communities, beginning in 2009.

“We at MHI are attacking this installation issue head on. With a small group representing all aspects of the industry, we are developing some creative approaches that will economically motivate all of us to solve this consumer issue. We must solve this issue ourselves, for no one else can.” P.69

*13 years after that line was penned and stated by Walt Young, the Frost Free Foundation (‘FFF’) system appeared (2010); a.k.a. ‘Alternative Shallow Frost Protected Foundation Design for Manufactured Homes’. This was a collaborative effort among George Porter, Hayman engineering, and the Systems Building Research Alliance (‘SBRA’). Initially approved by HUD, for use with manufactured homes in land lease communities, only rarely is it mentioned or used. So, in this industry observer’s opinion, the installation issue remains unsolved to this day!

“As we look to the 21st century, all of us need to work to further promote the image of our industry. Together, we need to educate consumers about the evolution of our homes, our quality standards, the many benefits of manufactured housing, and the financing options available.” P.69.

*Well, this is certainly one industry goal articulated, more than two decades ago, that remains valid (unfulfilled) to this day. There is no formal, funded, national image-improvement program in effect now, just as there wasn’t way back in 1997. .

“…we want to establish a secondary market with Fannie Mae and Freddie Mac for personal property manufactured home loans.” P.70

Yet another 24 – 25 year prediction still awaiting fulfillment!

End Notes.
1. Why the +/- notation after shipment totals? Acknowledgement of the differences in reporting this shipment data by the Institute of Building & Technology Safety (‘IBTS’), HUD, & MHAARR, versus MHI.

Blog Posting # 664 @ 12 November 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD0HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Difficult to believe this past week could be any more full of MH events than it was – but it was! Part I reviews the hectic schedule. Part II? We have the unique opportunity, right now, to correct a decades-long ‘wrong’, where the reporting of new HUD-Code housing shipments is concerned. We can only hope our salaried and elected national leaders pay attention NOW, and put us, once and for all, on a united path of performance reporting!
Part III. A decade or two ago we didn’t even know what computer ‘hacking’ was; now it’s a concern virtually every one of us has, at home on PCs & laptops, and at work.

I.

MEA CULPA! (MY FAULT!)

Unintentional omission! Last week, in blog #663, I described this past week (8-15 November) as a BONUS WEEK. Why? Because MHI/NCC Leadership Forum would occur in downtown Chicago; the 246th birthday of the U.S. Marine Corps would be celebrated on 10 November; Veterans Day on the 11th; Iowa MHAssociation’s Joe Kelly’s retirement celebration on the 14th; and, the IMHA annual meeting in Cedar Rapids on the 15th. So, what did I miss?

Rent Manager’s annual conference for 600+/- of the firm’s clients, at the Cheyenne Mountain Hotel in Colorado Springs, CO. In my opinion, this singular event rivals every other national venue that occurs for the manufactured housing industry and land lease community owners/operators! I’m invited to be a presenter every couple years, and count it a privilege to address their august audience. The Rent Manager event occurs 9-11 November, so certainly fits well within the BONUS WEEK.

Another unintentional oversight had to do with the celebration of Veterans Day. To commemorate that holiday, the November issue of ‘The Allen Confidential’ newsletter featured a firsthand story penned by freelance installation consultant George Porter, describing his Tet experience in Vietnam during 1968. This is a never before published story deserving to be read by everyone in the manufactured housing industry. And you may recall, George was inducted into the RV/MH Hall of Fame this past August.

II.

LIGHTNING STRIKES THRICE!

For the third month in a row, all major reporting agencies throughout the manufactured housing industry announced the same volume of new HUD-Code homes shipped – this time, during the month of September. The total number shipped? 9,025. So says the IBTS, HUD, MHI, MHARR, & EducateMHC!

Now that’s ‘saying something’, and is what should occur every month of the year without exception. ‘Why’ the same volume reported three months in a row? Because there were none, zero, Destination Pending units reported by HUD-Code factories. When I asked ‘why’, the opinion was that with production so far behind (i.e. six to 12 months out), due to covid and supply chain problems, every home was shipped to a specific destination!

Two parting thoughts:

First. Since we’ve now demonstrated to federal legislators and regulators our industry can indeed be consistent in how we count and report HUD-Code home shipments (i.e. ‘keeping score’), why not make it standard practice going forward? In a word, STOP adjusting the IBTS monthly total, by deducting number of Destination Pending units one month, only to add them back to the total next month. Right now is our unique and historic opportunity to do this right! Let’s not purposely besmirch our credibility going forward, by resuming the Destination Pending (-&+) numbers game!

And then there’s the quietly spoken, but increasing belief, among post production segments of the manufactured housing industry, that ‘record profits’ reported by HUD-Code housing manufacturers are being achieved ‘on the backs’ of wholesale purchasers of new homes, who’re enduring lengthy delivery times, as well as exorbitant, repetitious price increases. Or as one reader put it in a recent email message to me: ‘How many companies are using the supply chain excuse to gouge their customers?” If true, and I hope it isn’t, perhaps time is fast approaching for forensic accounting to ascertain what is really going on these days.

III.

HACK TRACKS!

According to the International Data Group (‘ID’), there are at least 15 signs one has been hacked:

1. You get a ransomware message
2. You get a fake antivirus message
3. You have unwanted browser toolbars
4. Your internet searches are redirected
5. You see frequent, random popups
6. Your friends receive social media invitations from you that you didn’t send
7. Your online password isn’t working
8. You observe unexpected software installs
9. Your mouse moves between programs and makes selections
10. Antimalware, Task Manger or Registry Editor is disabled.
11. Your online account is missing money
12. You’ve been notified by someone you’ve been hacked
13. Confidential data has been leaked
14. Your credentials are in a password dump
15. You observe strange network traffic patterns.

As you read through this lengthy list of signs or hack tracks, it’s difficult to not be discouraged with the whole online communication and social experience. But ‘being forewarned is being forearmed’!

George Allen, CPM, MHM
EducateMHC

Blog Posting # 663 @ 5 November 2021: EducateMHC

Perspectivev.; 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!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Another potpourri of manufactured housing and land lease community-related news, stories, and opportunities! Hopefully I’ll see you at one or another of the events occurring between 8 & 10 November. And I hope you’ll position yourself for an entertaining and interesting ‘read’ during the weeks and months ahead. GFA

I.

BONUS WEEK

Leadership Forum, 246th USMC Birthday, Veterans Day, & Joe Kelly’s Retirement

There’ll be a lot happening between 8 & 15 November! How much will you be involved?

8 – 10 November will see land lease community portfolio owners/operators convening for the National Communities Council division of MHI’s Leadership Forum in downtown Chicago. For more information re: schedule and to register, visit MHI’s website. Seminars and networking sessions are planned throughout the three day NCC program.

In my opinion, what should be covered will not likely even get ‘a mention’. Last week’s blog posting (#662) described the pressing, contemporary need for a ‘National Spokesperson for Land Lease Community Owners’! As you likely know, with my retirement (12 August 2021), there no longer is any individual researching (e.g. ALLEN REPORT, etc.) and publicly speaking out, in print (The Allen Confidential newsletter) and otherwise, in behalf of the real estate asset class – certainly no one with ‘skin in the game’ as a bona fide owner/operator of land lease communities!

If you’re reading this and planning to attend the MHI/NCC Leadership Forum, why not make it a point to ask what individual(s) are willing to take on the public face role as capable, experienced, and motivated Spokesperson? As I see it, there are but two opportunities for this to occur: MHI/NCC to formally designate such a national spokesperson; and/or the SECO planners to do so.

10 November marks the 246th birthday of the U.S. Marine Corps! Not of much consequence to non-Marines, but a near hallowed holiday for those who’ve served as U.S. Marines, in and out of combat, during past decades. I already plan to be in touch with Marines with whom I’ve served, between March 1964 when I enlisted, to 1969 in the Ashau Valley in the Republic of Vietnam, to 1991 when in Honduras during Operation Desert Storm. I’ll also be wishing my Marine grandson Travis a ‘Happy Birthday’! Do the same to any U.S. Marines you know!

11 November. Veterans Day, a.k.a. Armistice Day & Remembrance Day (in other countries) will be celebrated promptly at 11AM on 11 November, at the Tomb of the Unknown Soldier, in Arlington National Cemetery, Arlington, VA. For anyone who’s not attended this somber ceremony, it is quite ‘moving’ for everyone present. My brother Mark and I’ve attended together, and talk about the experience to this day.

14 November. Retirement Celebration in honor of Joe Kelly, longtime executive director of the Iowa Manufactured Housing Association. Spencer Roane, MHM, and I plan to travel from Atlanta and Indianapolis to participate in that gala send-off. At the very least, mail Joe Kelly a Happy Retirement card. Send it to Andy Conlin c/o IMHA, 1400 Dean Ave., Des Moines, IA. 50316.

Speaking of retired state association execs. Did you hear? The New York Housing Association recently honored former executive, Nancy Geer, by naming their new office building in her honor! Like Ross (WI), Tim (MI), and Betty (KY), Nancy has officially retired. Miss them all!

15 November. Annual meeting of the Iowa Manufactured Housing Association, to be held in Cedar Rapids, Iowa. Interesting program planned. Visit the association’s website for more info. Hope to see you there.

II.

NO LOUISVILLE MH SHOW!

You’ve probably already heard the surprising and sad news. But it makes sense. HUD-Code housing manufacturers are reluctant (i.e. ‘refusing’) to send their labor force to Louisville to be exposed to the coronavirus. And, why display new homes when one’s delivery times are already six to 12 months out, thanks to supply chain breakdown and other reasons. So, while there won’t be a manufactured housing show in KY during year 2022, know there are plans afoot to bring prospective Midwest homebuyers (i.e. independent ‘street’ MHRetailers and land lease community owners/operators) to northern Indiana for factory visits and maybe marketing/sales education at the RV/MH Hall of Fame in Elkhart, IN. As far as we know at present, the Biloxi MHShow is still on track for this spring.

Continue to read this weekly blog posting for further details.

LAST CALL!

Only a few copies of the autobiography, ‘From SmittyAlpha6 to MHMaven’ remain in inventory. Once these are sold and shipped, the five month long marketing window will close. There are no present plans for a subsequent printing. So, if desiring to buy a copy of my Adventures of a Lifetime, visit the website www.educatemhc.com

Explanation of the title? ‘SmittyAlpha6’ was my radio call sign while a USMC company commander in Vietnam during 1968 & 69. ‘MHMaven’ is an Allenism (i.e. poetic license) for ‘manufactured housing maven’ (‘expert’). Book is chockfull of photographs and short stories, in addition to the biographical narrative, describing a formative childhood, 55+ year romance, war stories, and yes, key parts of a 40 year career in professional property management and land lease community ownership.

George Allen, CPM, MHM
EducateMHC

Blog Posting # 662 @ 29 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: I have long attempted to not make the content of this weekly blog personal in nature. Well, this week’s focus runs counter to that goal. Why? Because, in my opinion, come January 2022, there will no longer be an independent third party Spokesperson holding forth, publicly, in behalf of land lease community owners/operators nationwide! Lest you think I exaggerate, right now name one person who routinely researches and reports on the realty asset class in print, online, and in person? Here’re the details of where we are today….

I.

NATIONAL SPOKESPERSON FOR LAND LEASE COMMUNITY OWNERS?

And who might that be going forward? It really hasn’t been an issue until now. Because, up until the end of December this year, we’ve had folk filling that role via weekly blogs, a monthly subscriber-supported newsletter, national networking roundtables or conferences, the ALLEN REPORT, and op/ed columns in various trade publications, e.g. ‘Manufactured Home Mechandiser’, the ‘Journal’, and now MHInsider magazine. And of course there were occasional communiques from MHI, where land lease communities were concerned, presumably from its’ National Communities Council (‘NCC’) division.

But much of that will soon be changing, albeit ‘going away’! Then ‘who’ will land lease community owners/operators look to for timely news reporting, regulatory concerns, issue resolution, professional property management training & certification, and networking opportunities? Here’re the possibilities as I see them today.

Frankly, first and foremost, spokesperson responsibilities and services should – in my opinion – be coming from NCC leadership, but that’s not the case today. Some illustrations: What salaried MHI staffer routinely functions and speaks in behalf of the realty asset class? No one since Jim Ayotte, CAE, and a couple of his successors, post 1996 founding of the council. And this. During a recent Senate Banking Committee hearing (21 October 2021) titled, ‘How Private Equity Landlords are Changing the Housing Market’, MHI representatives (not the NCC) felt they were successful “…ensuring the conversation was not disparaging to the land-lease community model overall.” OK, but when one reads their Statement for the Record, here’s a sampling of what they told the Senators:

• Land-lease manufactured housing communities, manufactured housing communities, and land-lease communities. These trade terms were used interchangeably throughout the presentation. Confusion anyone? Among journalists today, it’s land lease communities!

• Time and again, ‘research’ and ‘studies’ were cited to buttress claims about ‘rent payment increases’, ’31 percent of new manufactured homes placed in land-lease communities’, and ‘why residents choose professionally managed land-lease manufactured housing communities’, and more – with NO substantiation of claims!

• Much ado is made about professional property management training and certification of community managers, but only MHEI’s ACM program is identified. NO mention of IREM’s Certified Property Manager (‘CPM’) designation, or EducateMHC’s Manufactured Housing Manager (‘MHM’) program, or California’s statewide program. Too narrow a focus for a truly effective national spokesperson for the realty asset class.

• At one point MHI commissioned research, representative of 1,000 communities, to cite statistics relative to CapEx spending. Impressive number until one realizes, according to the 32nd annual ALLEN REPORT, just the top three portfolio owners/operators profiled, own and or fee-manage 1,103 communities! So 1,000 communities is not a representative sampling of 55,000+/- such properties nationwide.

Point? Again, logic would suggest MHI and its’ NCC division is/are natural national spokespersons for land-lease communities. But, again – in my opinion – without a salaried staffer heading the NCC, one that ‘knows’ the community business and is capable of communicating it in an appropriate, accurate, and substantiated fashion, they have no business posing as national spokesperson. Perhaps this matter can be addressed at the NCC Leadership Forum in downtown Chicago during early November? Anyone listening out there?

Then there’re the land lease community owners/operators in Georgia who, 11 years ago, launched what today is widely known and respected as the SECO conference. From the very beginning there was but one audience – land lease community owners; initially in the Southeast, but today, nationwide, attracting 500+/- businessmen and women. National spokesperson for the realty asset class? Perhaps, if they hire an executive director, and start communicating regularly and digitally with their audience nationwide.

Now, just about everyone else has their ‘interest in two pockets’: manufactured housing production/sale and land lease communities. Think DATACOMP with its’ MHVillage and MHInsider magazine. Yes, they research MH and community statistics on a routine basis, but to the best of my knowledge, there isn’t a land lease community owner/operators on staff – for handling the finer points and nuances of property ownership and management.

And then there’s manufacturedhomes.com, a fairly new online entry into the fray. It is primarily focused on manufactured housing production/sales – related topics. Any land lease community firsthand influences on their staff?

That brings us to the end of this discussion today. Yes, land lease community owners/operators need and deserve an effective national spokesperson (organization) functioning in their behalf. Looking back almost 30 years, the need for focused national advocacy, via a spokesperson or organization, is why 19 community owners gathered in Indianapolis, IN., on 31 August 1993. Three years later, we had the NCC in place at MHI – with a salaried staffer at the helm. That is not the case today. And given my recent retirement, we will not have an independent third party spokesperson producing a newsletter, networking roundtable, or ALLEN REPORT, in behalf of land lease communities, going into year 2022.

What are we going to do about that?

George Allen, CPM, MHM
EducateMHC

Blog Posting # 661 @ 22 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Quite a mix of topics today! First, some important and timely information relative to DOE regs that threaten the intrinsic affordability of HUD-code manufactured housing. Then a personal pique relative to how ‘others’ attempt to affect our daily lives. And finally, a personal lamenting of the passing of more than three decades of dedicated work in behalf of land lease community owners/operators nationwide and in Canada.

I.

AGAIN, ‘DOE REGS MUST BE DOA!’

That’s the ‘short title’ to Part I of this week’s blog posting. Here’s the ‘long title’, so to speak, quoting from the Manufactured Housing Institute’s (‘MH’) latest newsletter to members:

“The Department of Energy (‘DOE’) has published a proposed rulemaking on energy standards for manufactured housing which, if finalized, will eliminate manufactured housing as an affordable housing option for hundreds of thousands of potential homebuyers.”

Did you get that? MHI’s communique goes on to say: “The current DOE proposal is fundamentally flawed and must be completely rewritten to ensure manufactured home remain an available option for American families.”

So, YOU on board with ensuring the DOE regs are ‘DEAD ON ARRIVAL (‘DOA’)?’ If so, YOU must contact MHI’s Policy Department via (703) 558-0675 and ask how YOU can participate in their Call to Action program right now! I’ve already done so.

LATE BREAKING NEWS! Deadline has been extended from 25 October to 26 November 2020! That gives YOU and ME more time to submit written comments relative to DOE’s Supplemental Notice of Proposed Rulemaking (‘SNPR’) concerning manufactured housing energy conservation standards.

II.

YOU WOKE?

What do the following words have in common?

America, Mute, Freshman, Straight, Depressed. War. Policeman. Handicapped parking, Mr & Mrs., You guys. Long time, no see. Rule of thumb. Hold down the fort.

According to FIRE, a.k.a. Foundation for Individual Rights in Education, “they’re all included in a list of ‘words to avoid’, compiled by Colorado State University’s Inclusive Communications Task force.” And while not banned, per se, they’re words faculty and students are encouraged to avoid, in favor or words that make everyone feel welcomed and ‘safe’.

Don’t know about you, but I’m increasingly pissed off at the wokeness that seems to be occurring these days, especially where the use of personal pronouns is concerned. While completing an application, for something, recently, I was asked to indicate what pronouns I identified with, not whether I was a male or female.

III.

DO YOU REALIZE?

The date, 1 January 2022, is fast approaching, when there will be no annual update to the ALLEN REPORT. We did not survey the 500+/- known owners/operators of land lease community property portfolios this fall, so I have no statistics to compile and write into what would have been the 33rd annual ALLEN REPORT. What does ‘having no updated ALLEN REPORT’ mean to you and me?

• No historical perspective of contemporary land lease communities. In the 32nd edition we identified the seven types of shelter now commonplace on rental homesites.

• No historical perspective relative to HUD-Code housing shipments during the past 50 years, and how our industry sullies its’ ‘cred’ by reporting two totals each month.

• Overall total of rental homesite counts among reporting portfolios, and number per portfolio; as well as number of land lease communities owned and or fee-managed.

• Volume of rental homes and contract sales per property portfolio.

• Average national physical occupancy among reporting property portfolios.

• Average national Operating Expense Ratio (‘OER’) among reporting portfolios.

• Status of professional property management certification among portfolios.

• Growth in rental homesite count to date (i.e. between 1994 & 2020) among all real estate investment trusts (‘REITs’) during the past 26 years. Who will tell you now?

• And in the 32nd ALLEN REPORT, a list of a dozen Evergreen Issues (i.e. ‘always present, always important!’) re manufactured housing and land lease communities.

That’s pretty much what’s ‘leaving the body of land lease community knowledge and statistics’ researched and faithfully reported during the past 32 years. Hopefully someone will come along, in time, and shoulder the mantle (‘covering’) of this unique income-producing property type and popular real estate asset class.

After all, and to date, the ALLEN REPORT opened the door to annual Networking Roundtables, two monthly subscriber-supported newsletters, a weekly blog, the Manufactured Housing Manager (‘MHM’) professional property management training and certification program, as well as a host of Resource Documents such as the National Registry of ALL Lenders, and directories of freelance consultants, MH factories, national and state trade associations, as well as GSE & NGO organizations influencing manufactured housing and the asset class.

GFA

George Allen, CPM, MHM
EducateMHC

Blog Posting # 660 @ 18 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Just realized I’ve been penning this weekly blog posting for nearly 13 years! It started back in the latter days of the ‘Manufactured Home Merchandiser’ magazine (2008), the year before manufactured housing shipments hit rock bottom, the nadir year being 2009. Anyway, here’s the news of today (Part I), tomorrow (Part II), and maybe/maybe not another book for you to read sometime in the future. GFA

I

NEW LEASE REQUIREMENTS FOR
LAND LEASE COMMUNITIES

On September 13, 2021, Freddie Mac issued a Press Release pertaining to its’ financing of land lease community purchases. Per that Press Release, the GSE is implementing eight tenant protections as a condition on all future transactions involving the GSE.

1. Lease length & Ability to Not Renew. One year renewable lease term, unless there is ‘good cause’ for non-renewal.

2. Rental Increase Notice Period. 30 day written notice of rent increases.

3. Grace Period for Rental Payments. Five-day grace period for rent payments and the right to cure defaults on rent payments.

4. Tenant’s Sale of Home Without Relocation. Right to sell home to a buyer that qualifies as a new tenant in community, without having to first relocate it out of the community.

5. Tenant’s Sale of Home after Eviction. Right to sell home in place within 30 days after eviction by the community owner.

6. Tenant’s Right to Sublease. Right to sublease, or assign the site lease, for the unexpired term to the new buyer of the tenant’s home without any unreasonable restraint, so long as buyer/sublessee qualifies as a tenant within the community.

7. Tenant ‘For Sale’ Signs. Right to post home ‘For Sale’ signs that comply with community rules and regulations.

8. Notice of Planned Community Sales. Right to receive at least 60-days notice of planned sale or closure of the community.

Of course these eight tenant protections will be required only when a land lease community mortgage is being guaranteed by this GSE.

II.

Four Ways Runaway Housing Prices Might Affect the U.S. Economy

In a communique from Harvard University’s Joint Center for Housing Studies, Don Layton writes of an “astounding increase of 19.2 percent” in the Housing Index during the past 12 months, leading him to observe these have become nothing less than ‘runaway home prices’. Then he asks, more than rhetorically, is the impact such runaway home prices will likely have on our national economy. He cites four; the first one positive, the next three not so much so.

1. Helping GDP (Gross Domestic Product) to grow. “Household consumption is the biggest source of GDP, and is influenced not just by the wages and other income of the typical family but by the household’s net worth. This is known as the wealth effect….” Given the meteoric rise in the Housing Index, this translates into more than $50,000 per household – increasing their willingness and capability to spend more if they wish to do so.

2. Making income inequality noticeably worse. Especially between the homeowner population, as the Housing Index continues to increase, and the35 percent of American families who rent their residences and do not enjoy the residual benefits of this rise in wealth. “Thus, ‘have’ and ‘have not’ is increasingly becoming synonymous whether a family owns their home or not.”

3. Pushing down the homeownership rate. “…a family looking to buy their first home is suffering a major decline in purchasing power.” This has much to do with the 22.5 percent increase in house prices since the pandemic began (offset somewhat by lower mortgage rates), leading to a net increase of more than 10 percent. This will especially impact the first time would be homebuyers.

4. Inadvertently causing reports of inflation to be misleadingly low. This is a complicated, difficult to explain, phenomenon – having to do with the manner in which the federal government computes inflation rate, along with the aforementioned increasing Housing Index coupled with decreasing mortgage interest rates. Suffice it to say here that the present five percent inflation rate (per U.S. government) may or may not come down if/when the supply chain issues are resolved.

It behooves each and every one of us to be alert to news and accounting reports that address one or more of the preceding four potential impacts on our national economy and lifestyle.

III.

‘SMITTYALPHA6’, A NOT SO SMALL TALE

By now, most of my friends – in and out of business environs, and family, are familiar with the book title: ‘From SmittyAlpha6 to MHMaven’. Writing that collection of memoirs (i.e. ‘short stories’) into my autobiography was a project decades in the making. And if I have a single thing to be grateful for, where the pandemic is concerned, it’s having 400 days of self-quarantine with Carolyn, during which we read books, did jigsaw puzzles together, and I finally put pen to paper. Now I’m trying to self-motivate to begin reading through, by coincidence, 400 letters I penned and sent to Carolyn during years 1968 & 69. I know there are more ‘SmittyAlpha6’ (i.e. my radio call sign while a company commander in Vietnam) tales contained in there to, once again, share with family and friends. But I also fear some of the memories they might stimulate….Guess I’ll have to wait and see.

Point in telling you all this? If reading this 200 page non-fiction book interests you, make it a point to order it soon. Only a few dozen copies remain from the initial printing and there are no plans, at this point, to do a second printing. So, to order, visit www.educatemhc.com

George Allen, CPM, MHM
Educatemhc

Blog Posting # 659 @ 8 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc

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

INTRODUCTION: This week’s blog posting was exciting (Part I), disturbing (Part II), and nostalgic (Part III) to pen. You’ll see ‘why’ as you read on through. GFA

I.

LIGHTNING STRIKES TWICE!

Institute for Building Safety & Technology (‘IBTS’), along with HUD, MHI, MHARR, and EducateMHC, all reported – as they had in July, the same HUD-Code new home shipment total for the month of August, when there were no ‘Destination Pending’ units to ‘muddy the statistical waters’, as has usually been the case for decades.

This is noteworthy, being a second lightning strike – so to speak, because the manufactured housing industry’s long standing penchant for reporting ‘two different new home shipment totals every month’ (due to presence of ‘Destination Pending’ units at reporting plants) has done nothing to improve its ‘cred’ (i.e. credibility) among Washington policy makers, business regulators, and other influential parties.

Bottom line? How nice it would be to continue, from this point on, to boldly publicize ‘one new MH shipment total’ every month of the year! Will this occur? Let’s wait and see. Sorry to say; but I, for one, am not holding my breath.

II.

DOE ENERGY REGS MUST BE DOA!

Did you know? Quoting here from MHI’s newsletter dated 1 October 2-021:

“The Department of Energy (‘DOE’) has published a proposed rulemaking on energy standards for manufactured housing which, if finalized, will eliminate manufactured housing as an affordable housing option for hundreds of thousands of potential homebuyers. The current DOE proposal is fundamentally flawed and must be completely rewritten to ensure manufactured homes remain an available option for American families.”

You read a similar, albeit much longer similar condemnation of proposed DOE energy regs, here last week, penned by Mark Weiss in behalf of the MHARR.

MHI has already launched a Call to Action about this important matter. Member or not, reach out to MHI, via their website, and offer to send a letter opposing the DOE rule. I’ve already done so! The DOE rule must be DOA (‘Dead on Arrival’) where manufactured housing is concerned.

And hey, there’s more to come. When given an opportunity to make further public comment, and or attend a hearing on this matter, in Washington, DC. do so. I did last time around, in 2014, and consider the experience a top personal learning experience during my career.

III.

‘CHANGING OF THE GUARD’

It happens slowly and quietly, as matters about personal and professional retirement usually do. As I look back, it kinda began – this time around, with the slow-paced retirement (i.e. extending over a year period of time) of Danny Ghorbani, 1985 founder and decades long leader of the Manufactured Housing Association for Regulatory Reform (‘MHARR’). Today, Mark Weiss fills the Washington Watchdog’s shoes.

Yes, there is an ongoing, perennial, ‘changing of the guard’, so to speak, taking place these days. And the names that follow just ‘scratch the surface’ of who should be listed.

Then came Gary McDaniel, intrepid leader of ROC Properties (No, not ‘resident owned communities’!), REIT – Chateau Communities, and finally, YES! Communities. (I may have got Properties & Communities labels reversed; could never keep them straight – and I believe there was a firm in there between Chateau & YES!). In any event, Gary’s pretty much disappeared from the MH scene, in much the same fashion as Barry McCabe, former Hometown America property management executive, a decade or so earlier.

While I just know I’m going to unintentionally miss a few – or many, recent retirees during this recitation; how can I be faulted when so many go so quietly. Examples. Greg Johnloz, CPM, out of AZ; Win Moses, community owner, Indiana state legislator, and mayor of Ft. Wayne, IN; William Carr, consultant and husband of the late Judy Carr in Iowa.

Then there’s a raft of men and women who tell you they’re retired, but continue to show up at MH industry events, etc. (Like me). Here thinking of Lou Vela, the $ guy; Joe Stegmayer of AZ and former chairman of MHI, the RV/MH Hall of Fame, and Cavco Industries. Betty Whittaker of KMHI was a surprise retiree – to me anyway, so now I follow her on Facebook. And early this year, we learned of Cary Monroe and John Jacobs, both community loan originators, taking down their shingles. And George Porter, recent RV/MH Hall of Fame inductee, will likely disagree with me listing him as a recent retiree. But as a veteran combat pilot from the Vietnam era, he outa be retired! Maybe someday, with his permission, I’ll share his exciting short story, ‘My Tet Offensive, January 1968’ here or in MHInsider magazine.

A couple local ‘friends in the business’, Sharon Niccum (multi-community owner and appraiser), and Ron Farren, both in Indiana, have reduced their business footprint of late – though Ron has acquired a community or two ‘for fun’ (My comment, not his). And now we learn of Joe Kelley, executive of the Iowa MH Association retiring during November 2021 – that’s next month! Spencer Roane, MHM, and I plan to attend his send-off, to ensure he receives the praise and accolades he deserves after all these years in the saddle. And I’m unsure what to pen about Adriane DeRose, MHM, also here in Indiana. She recently sold her family’s land lease community. If she retires, it will mark the end of an era started many decades ago by ‘mobile home’ manufacturer, the late Robert DeRose (He was inducted into the RV/MH Hall of Fame in 1988).

OK, I know, there are many more individuals out there who deserve their due in this week’s blog posting. And I’m sorry I overlooked you. Let me know via gfa7156@aol.com

I’ll close this out with some musings from Greg Johnloz, CPM, mentioned earlier. “Semi-retirement is fun, you get to pick and choose what you want to do with a minimum of actual responsibility. You will find you are just as busy as you ever were, but enjoying it more.”

And that’s pretty much how I’ve found retirement to be. Plus, in my case, I got to author my autobiography, ‘From SmittyAlpha6 to MHMaven’. Most of the first printing are in readers’ hands, but if you’d like a copy – and I’m told it is a Good Read, visit www.educatemhc

Uh Oh! I haven’t even posted this blog and already I’m thinking of friends not included. Like Ross Kinzler of WI, now AZ; former community owner Jim Reitzner, also of WI; and the most visionary guy I’ve known in MH and land lease communities, Chuck Fanaro of SaddleBrook Farms and HI-Tech Housing reknown. Now my subconscious will start kicking in….

George Allen, CPM, MHM EducateMHC

Blog Posting # 658 @ 1 October 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Today’s blog is chockfull of timely and interesting information. Are you following what’s going on in Washington, DC. about DOE’s proposed energy standards for manufactured housing? How ‘bout the extremely high prices being paid these days for institution investment grade land lease communities? And finally, an advance look at the happenings at SECO21. Enjoy!

I.

WASHINGTON WATCHDOG BARKS AGAIN!

New DOE Regs Sacrifice Housing Affordability on the Altar of Climate Change.

That title and subtitle tell us, as manufactured housing businessmen and women, a lot!

First off; the Manufactured Housing Association for Regulatory Reform (‘MHARR’) in its’ 15 September 2021 letter to the Manufactured Housing Consensus Committee (‘MHCC’), once again, faithfully informs ‘everyone’ of the U.S. Department of Energy’s (‘DOE’) rulemaking relative to ‘Energy Conservation Standards for Manufactured Housing’. That’s what a ‘watchdog’ does! But more on that a little later….

AND, while jumping a bit ahead of myself here, this line – about ‘sacrifice housing affordability’ was taken from a short article penned by Judge Block, in the City-Journal (Iowa) on 14 September 2021. It puts this timely matter into clear perspective: “New (energy) regulations sacrifice housing affordability on the altar of climate change.” (I.e. More expensive energy-sophisticated houses = far fewer buyers!) So, how’s this all come together to this end? Starting with Mark Weiss, writing in the aforementioned ‘letter’, recommends the MHCC…

“…reject DOE’s proposed manufactured housing energy standards rule, in its’ current form, as a baseless, unnecessary attack on the availability and affordability of manufactured housing, which will…exclude vast numbers of lower and moderate-income Americans from the American Dream of homeownership in order to satisfy the ideological predilections of ‘climate’ extremists.” Why?

“…HUD-regulated manufactured homes, under existing HUD manufactured housing standards for energy and energy-related functions, already offer occupants lower monthly energy costs than other types of homes….” (And all sorts of energy savings examples are cited following)

AND, the new DOE regs would all but price manufactured housing out of the affordable housing market. How so? “An NAHB analysis presented…in 2014, demonstrated that for every $1,000.00 increase in the purchase price of a single-section manufactured home, 347,901 households (would be) excluded from the market.” A $1,000.00 increase in a multisection manufactured home would see 315,385 households excluded from the market. And these margins become much worse when extrapolating these stats under the full, unmodified 2021 energy savings proposal. To which Judge Block comments: “This amounts to pulling out the rung at the very bottom of the housing market.”

But that isn’t all! Judge Block, rehearsing some of the same arguments just cited, drives right to this point: “Furthermore, the poor tend to have a much greater need for money today than for money tomorrow; energy savings accruing decades from now are of no use if you go bankrupt this year.”

So there you have it. A ‘bark’ from our ‘watchdog’, and colorful concurrence from Judge Block.

A personal recollection. I attended the last go-round with DOE on their proposed energy standards. Know what (negatively) impressed me the most? How there were no businessmen and women (except yours truly) in the room at the time. In other words, once again, bureaucrats were planning the fate (‘eventual demise’?) of our industry. Hardly anyone in the room had profit motive in mind; rather were espousing social activist (i.e. energy conservation) goals and mandates at any cost! And here we go again – or so it seems.

II.

HOTTEST SELLER’S MARKET IN LLCOMMUNITY HISTORY!

“Investment Property Group has acquired Skandia Mobile Country Club for $58,000,000 from the Coulter Family Trust. On 17 acres in Huntington Beach, CA., the property has 167 mobile home units.”

Hmm. That pencils out to a whopping $347,305 value per rental homesite in the land lease community. Remember a scant few years ago when a similarly –sized land lease community in Eugene, OR, sold for $100,000 per rental homesite – and everyone was aghast?

And the average monthly rent, in this property’s county, according to Yardi, is $2,164.00

So, what happens now? Since longtime, experienced owners/operators have acquired this land lease community – hopefully, little to no immediate changes. However, if the ‘buyer’ had been one of the notorious ‘outside the industry’ investment groups plaguing the realty asset class of late, residents could expect immediate and substantial site rent increases, sub metering of utilities (if not already in place), reduction of amenities, and introduction of new fees; predatory landlord features designed to boost the property’s cash flow in order to pay cumbersome debt and cover operating expenses.

III.

SECO21

Have you been participating in the 11th annual SECO conference this week? If so, you know how very well it’s been going.

Spencer Roane, MHM, interviewed me for 45 minutes Tuesday afternoon. Boy, did we cover a variety of timely, sometimes Evergreen, topics, e.g. industry and realty asset class consolidation, chattel capital for home-only loans, and much more. At the end of our session I offered everyone a ‘free’ copy of a speech outline I’d prepared, containing some of what Spencer and I discussed, but many additional subjects as well. So far, more than a dozen attendees have requested a copy. Do you want one? Simply ask via email: gfa7156@aol.com

We also talked about my autobiography, From SmittyAlpha6 to MHMaven. While this was authored as a summary of my Adventures of a Lifetime, it also contains helpful and interesting information about manufactured housing and land lease communities. If interested in learning more, and possibly ordering a copy (There really aren’t too many copies remaining in inventory), visit www.educatemhc.com

Wednesday afternoon (which hasn’t occurred as I pen these lines) will find me interviewing Sam Landy of UMH Properties (‘REIT’). Can hardly wait! Why? Because Sam, unlike the CEOs of other large land lease community property portfolios, has promised to share his firm’s proven operations formula for keeping their more than 24,000 rental homesites occupied and his homeowner/site lessees happy! So, hope you tuned in at 5PM Wednesday to hear Sam.

George Allen, CPM, MHM @ EducateMHC

Blog Posting # 657 @ 24 September 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

INTRODUCTION: Follow up to last week’s blog message: CALL TO ACTION! Surprised by strong positive response, so here we go again! AND, since we’re talking about change these days, for the first time in public, here’re the changes I recommended, upon requests from peers, earlier this year.

I.

CALL TO ACTION – AGAIN!

Wow! More folk read, and now respond, to this weekly blog posting than ever before. So I’ll revisit the subject again this week.

What triggered responses to the CALL TO ACTION blog posting? Best I could tell, ‘reading between the lines’, so to speak, was this short paragraph from blog # 656:

“…I think the time has come for our national advocates; specifically, the Manufactured Housing Institute (‘MHI’) and its’ National Communities Council (‘NCC’) division; along with others, to once-and-for-all, address troublesome matters foisted on land lease communities by real estate investors (a.k.a. consolidators) from outside (& within) our realty asset class. There are at least two upcoming events, one virtual, and the other in-person (so far), where these matters would make for appropriate and timely topics for group presentation and discussion.”

Then I went on to describe the soon SECO 21 Conference, 27 September – 1 October. This annual ‘by owners for owners’ event, in its’ 11th year, expects to draw 600 attendees. For more info, visit secoconference2021.

To this I’ll simply add: I’m scheduled to present the annual State of the MHIndustry & LLCommunity Asset Class around Noon that day. Will do my best to leave time then to address this timely and critical matter if SECO attendees express their desire to do so.

Then I described how, “…from 8-10 November, MHI’s NCC division will host its annual Leadership Forum, billed as ‘The only strategic executive level event of the year.’ To be held in downtown Chicago. For more info, visit manufacturedhousing.org/events.” But don’t expect to find me there, as I have not been invited to be a presenter on any land lease community topic.

OK, I’ve now done what several of you (‘responders’) asked me to do; to revisit this CALL TO ACTION! And as I penned before; will be interesting to see/hear if our elected and salaried national leaders rise to this challenge of addressing contemporary and evergreen issues in our behalf. Doing so will send one message; not doing so will send just the opposite. Which will it be?

II.

AN MHI/NCC MAKEOVER

Very early this year, when I made my plans to retire known, I was approached by several executives from the manufacturing and community segments of our industry. They asked me to draft ‘Suggestions to Improve Manufactured Housing & Land Lease Community Matters at the Manufactured Housing Institute (‘MHI’)’ I did so, and here, for the first time in public, are those suggestions in three parts: Overall, Manufacturers Division, & NCC Division.

OVERALL

Debate and effect needed changes to manufacturer and NCC divisions with the goal of ensuring ‘equal voice (votes) and representation’ among all MHIndustry segments at MHI meetings.

Decide whether to expand focus of MHI from ‘just lobbying’ to include research and distribution of business-related statistics, and several specialized directories re: manufacturers, land lease community owners/operators, lenders. (Note. This statement is a precursor to the anticipated demise of the ALLEN REPORT and a dozen Resource Documents at the end of year 2021)

Make MHI Membership Directory (online) accessible to all inquirers.

MANUFACTURERS DIVISION

Divide manufacturers division into two distinct groups; one comprised of largest firms (e.g. Big 3-C firms), and other comprised of smaller, regional firms – with both groups having equal say and voting power.

Floor fee distribution. Perhaps less $ to MHI and more to state MH associations if/when they actively promote manufactured housing, e.g. as in the state of Michigan, and SECO Conference.

Demonstrate unity with IBST, HUD, MHARR & EducateMHC by reporting monthly MH shipment statistics in the same manner. (Note. This should be the easiest of all changes to effect)

NATIONAL COMMUNITIES COUNCIL (‘NCC’) DIVISION

Divide NCC division into two distinct groups; one comprised of property portfolio firms (i.e. minimum size of 500 rental homesites in one or more properties), the other comprised of sole proprietor and corporate owners with fewer than 500 rental homesites in one or more properties.

Overtly promote professional property management via training and certification, e.g. CPM, ACM, & MHM programs. (Note. Still my belief all on-site property managers should be MHMs; all regional and executive managers should be ACMs, and top executives should be Certified Property Managers under the auspices of IREM – and their firms designated as AMOs (Approved Management Organizations), again, by IREM).

Allow proxy voting during division’s annual meeting and election of officers.

Write NCC Code of Ethics into NCC bylaws and enforce same, especially where predatory landlord practices are concerned. (Note. Mimic how IREM handles violations of their Code of Ethics via committee and public mention in their trade publication).

Assign an MHI staffer with the primary responsibility of serving NCC members needs – like it used to be between years 1996 and 2009. (Note. To not do so demonstrates we have accomplished little since years 1993 and 1996)

George Allen, CPM, MHM
EducateMHC

Blog Posting # 656 @ 17 September 2021: 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, asset class historian, data researcher, education resource & communication media for all land lease communities throughout North America!

To input this blog and or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com & visit www.educatemhc.com

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

CALL TO ACTION!

Late last week (9 & 10 September), tenant activist group MHAction (That’s short for ‘Manufactured Housing Action’), along with Americans for Financial Reform (‘AFR’), released an online video titled ‘Manufacturing Trouble’, Private Equity & Mobile Homes. This was their attempt to demonstrate, to local and national decision makers, ‘What it’s like to live in a land lease community’ owned by one or another of our nation’s 500+/- property portfolio owners/operators.

In my opinion, the substance of this video left much to be desired (i.e. accuracy), and clearly demonstrated naiveté of the folk who put it together. Specifically, the accompanying Press Release errantly mixes ‘manufactured housing’ & ‘mobile home’ terminology. This simply confuses video viewers. And, the property portfolio profiled in the video, is renowned for being ‘one of the best in the business’ when it comes to fostering good resident relations, attractive curb appeal, and desirable living environments. That error played in our favor.

So then, why a CALL TO ACTION? Well, rent hikes, safety matters, and maintenance (or lack thereof) issues alluded to in the Press Release have become commonplace in some land lease communities today – resulting in negative local press, calls for landlord-tenant legislation (i.e. rent control), and other business-restricting measures. It’s reasonable to expect additional, possibly more accurate, videos to appear in the not too distant future. The challenges identified, are not going away. Hence, the Best Defense is a Good Offence is where to begin!

Therefore, I think the time has come for our national advocates; specifically, the Manufactured Housing Institute (‘MHI’) and its’ National Communities Council (‘NCC’) division; along with others, to once-and-for-all, address troublesome matters foisted on land lease communities by real estate investors (a.k.a. consolidators) from outside (& inside) our realty asset class. There are at least two upcoming events, one virtual, and the other in-person (so far), where these matters would make for appropriate and timely topics for group presentation and discussion.

The SECO 21 Conference occurs 27 September – 1 October. This annual ‘by owners for owners’ event, in its’ 11th year, expects to draw 600 attendees. For more information, visit seco conference 2021

And from 8-10 November, MHI’s NCC division will host its annual Leadership Forum, billed as ‘The only strategic executive level event of the year.’ It will be held in downtown Chicago, IL. For more information, visit manufacturedhousing.org/events

Yes, I’ll be participating in the SECO 2021 Conference as a presenter (i.e. ‘State of the Manufactured Housing Industry & Land Lease Community Real Estate Asset Class’), as well as interviewing Sam Landy of UMH Properties, late afternoon on 29 September.

I likely won’t be participating in the NCC Leadership Forum. Though I’m a founding NCC board member (circa 1996), I haven’t been invited to presenter during the past decade or so. But no matter, this event is ripe to show owners/operators the NCC can be a viable national advocate.

Know what? There’s historic precedent for this CALL TO ACTION! On 26 October 1993, the Industry Steering Committee (‘ISC’), founded by 19 community owners two months earlier on 31 August 1993 (& predecessor to the aforementioned NCC), published a Mission Statement, seven Strategic Objectives, and 17 Issues of Note. Here are some of the appropriate wordings:

From the Mission Statement. “The manufactured home community industry… (has a) goal of providing affordable housing and a quality lifestyle.”

From the Strategic Objectives. “Improve industry image and encourage professionalism among peers.” & “Provide affordable land lease homesites.” & “Promote the manufactured home community lifestyle.”

From the 17 Issues of Note. “Improving management/resident relations” & “Avoiding and combating rent control and landlord/tenant legislation”

These guidelines were published with the intent of guiding present (1993) and future (2021) business operations of ‘manufactured home communities’, now ‘land lease communities’, relative to homeowners/site lessees. Now is time to become a positive national presence!

Again, the question: Whether to continue functioning nationally with a ‘business as usual mindset’, OR finally, come together for the common cause of countering negative property management practices (a.k.a. predatory land-lording), and take practical public steps to improve our industry image and community lifestyle!

Do I have corrective measures in mind? Sure. Some (following) I don’t mind airing via a public platform like this; others I’m reluctant to so disclose. In the first instance: Everyone to agree on a nationwide goal to support Certified Property Manger™ training and designation (‘CPM’) of all executive and regional property managers. And, at the property level, require all on-site managers to be trained and certified as Accredited Community Managers (‘ACM’) via MHEI, or EducateMHC’s Manufactured Housing Manager (‘MHM’) program. And, just as important, widely publicize the NCC’s Code of Ethics, enforcing the provisions contained therein!

Here’s one of my ‘reluctant corrective measures’. During past decades of community consolidation, it has bothered me how bona fide owners of communities, upon acquisition of their property(ies), are routinely replaced with salaried operations executives who do not have ‘skin (personal equity) in the game’. And I wonder whether this new type operator has, as we often say, ‘manufactured housing in their blood’? Specifically; do they have serious concern for the welfare of individuals and families living within their land lease communities, or not? In my experience, the sole exception to this aberration occurs only when professional property management (training & certification) prevails, from top down in property portfolios. Are all your property managers trained and certified as professional property managers?

In any event, it will be interesting to see if our salaried and volunteer national industry and realty asset class leaders embrace and publicly engage in this CALL TO ACTION! I, for one, hope they do!

How do you feel about these matters? CALL TO ACTION, training and certification of property managers, and more. Reach me via gfa7156@aol.com

George Allen, CPM, MHM
EducateMHC