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

September 30, 2021

WASHINGTON WATCHDOG BARKS AGAIN!

Filed under: Uncategorized — George Allen @ 9:49 am

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

September 24, 2021

CALL TO ACTION – AGAIN!

Filed under: Uncategorized — George Allen @ 11:02 am

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

September 17, 2021

CALL TO ACTION!

Filed under: Uncategorized — George Allen @ 7:51 am

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

September 10, 2021

AN HISTORIC OCCASION, UNLIKELY TO BE REPEATED!

Filed under: Uncategorized — George Allen @ 6:10 am

Blog Posting # 655 @ 10 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 HOTINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aoal.com & visit www.eduatemhc.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: An historic occasion & sobering statistics!

I.

AN HISTORIC OCCASION, UNLIKELY TO BE REPEATED!

Some will say this is ‘much ado about nothing’; others will opine ‘this is the way it should be’!

What are we talking about here? Well, the Institute for Building Technology & Safety (‘IBTS’), HUD’s official ‘scorekeeper’, reported 7,564 new HUD-Code manufactured housing shipments for the month of July 2021. This was remarkable for several reasons:

• This was the first time in contemporary industry history when ALL reporting entities (i.e. IBTS, HUD, MHI, MHARR, & EducateMHC) published the same number of new homes shipped – unaffected by adjustments for Destination Pending (‘DP’) units – as there were none! That’s the historic part.

• Quoting from MHI’s ‘Monthly Economic Report’, 7,564 homes shipped is “…a decrease of 1,870 homes, or 19.8 percent, compared to June 2021” (the previous month), and an increase of 74 homes or 1.0 percent compared to July 2020.”

• Furthermore. “…compared with the same month last year, single-section homes were down 9.2 percent, while multi-section homes were up 9.3 percent.” MHI

And there’s more. What does the total shipment picture look like come the end of year 2021?

“The seasonally adjusted annual rate (‘SAAR’) of shipments was 105,224 in July 2021, down 3.4 percent compared to the adjusted rate of 108,885 in June 2021.” What this means is that, given present day shipment levels, we might exceed the 94,390 total realized year end 2020. What do you think?

But the conundrum continues. How can HUD-Code housing manufacturers complain of building material shortages and high prices on one hand, and be boasting record profits on the other?

II.

CASUALTIES (# DEATHS) DURING SEVEN CONFLICTS

Have you ever wondered how the number of combatant deaths, among seven major conflicts, compare? I did, so engaged in a little research via the Congressional Research Service’s ‘American War & Military Operations Casualties’ website. Here’s what I learned:

Civil War, with 3,212,363 combatants, experienced 364,511 deaths; 2 percent of all who served

World War I, with 4,734,991 combatants, suffered 116,516 deaths; 2 percent of all who served

World War II, with 16,112,566 combatants, endured 405,399 deaths; 3 percent of who served

Korean War, with 5,720,000 combatants, tallied 36,574 deaths; one percent of all who served

Vietnam War, with 8,744,000 combatants, had 58,220 deaths; one percent of all who served

Afghanistan, Iraq, Persian Gulf War inconclusive to date, but more than 7,000 deaths to date

This is why it’s widely agreed: ‘War is hell!’ It’s also why some recall the sobering but true words of author George Orwell, “People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf!”

Had occasion to speak before a group of veterans last night at Warriors Hope 15th anniversary celebration. I shared how, on Christmas Eve 2005, I met a woman manager – my age, in a local pharmacy. And how she told me she marched in Vietnam protest marches at a nearby university and believed tales of us (combatants) being baby killers and worse! Nothing changed her mind for 40 years – until her son joined the U.S. Air Force. When she saw him graduate from basic training, she was convicted of her misplaced hatred, and decided to find a veteran – not to ‘thank him’, but ask forgiveness for what she did all those years ago! As three short sentences, in the ‘Making Amends’ short story I later wrote, say: “We talked. I cried. She atoned.” And, “I reflected on fallen friends who’d never hear these words but through me.”

I try not to think along these lines often. But when I do, I always walk away from the experience reminded of sentiments I’ve lived with for 52 – years, since last in combat; those being, I’m proud to be an American and having served my country. Very grateful to be alive and healthy. And how I now enjoy my family into the fourth generation. But God forbid I forget my friends who did not make it back to live out their lives like me.

Much the same can be said as we recall lives lost 20 years ago on 9/11/2001 or ‘911’. Did you realize? Children in school today, from kindergarten through 12th grade, were not alive on that tragic, historic day?

George Allen
EducateMHC

September 2, 2021

HOUSE PRICES RISE 17.4 PERCENT

Filed under: Uncategorized — George Allen @ 6:10 am

Blog Posting # 654 @ 3 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: (88) 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: Yes, another potpourri of housing-related information and statistics. Enjoy!

I.

HOUSE PRICES RISE 17.4 PERCENT
Yes, you read that right! Quoting from the Federal Housing Finance Agency’s (‘FHFA’) August 31st Press Release: “U.S. House Prices Rise 17.4 Percent over the Last Year; Up 4.9 Percent from the First Quarter.”

And a few Significant Findings, in the same Press Release:

• House prices have risen for 40 consecutive quarters, or since September 2011.

• House prices rose in all 50 states and the District of Columbia between the second quarters of 2020 and 2021. Five states with highest annual appreciation rates? Idaho, Utah, Arizona, Montana, and Rhode Island (All in excess of 25 percent!)

• House prices rose in all the top 100 largest metropolitan areas over the last four quarters.

So, if that isn’t dismal enough news for those of us in the housing arena, what the Department of Energy (‘DOE’) is proposing to do to manufactured housing, with its’ new energy mandate standards, is ‘over the top’. How so? Read on….

II.

$7,958.00 PRICE INCREASE TO SINGLESECTION MANUFACTURED HOMES

Yes, once again, you read that right! Quoting from the Manufactured Housing Association for Regulatory Reform’s (‘MHARR’) August 30th Press Release: “…proposed DOE (‘Department of Energy’) standards would impose extreme and costly new energy mandates on manufactured homes…without input from the HUD-Code manufactured housing industry….” Just how bad would these price increases be? Well the above title leads the assault, followed by these additional estimates of price increases:

• “The 2021 IECC standards would result in a minimum $12,908.00 retail level structural price increase for a double-section (sic) ‘multisection’ manufactured home.”

• “Cost increases of this magnitude would exclude 6,816,883 (prospective homebuyer) households from the manufactured housing market, based on NAHB metrics developed in connection with DOE’s 2016 proposed energy standards rule for manufactured housing”

• These figures do not include additional costs for testing, enforcement, and regulatory compliance….

If you truly care about the present and future of HUD-Code manufactured housing, and its’ land lease community sector, then you’ll be present if/when given the opportunity to participate in public hearing(s) about ‘proposed DOE standards’ and their probable consequences to our ability to deliver affordable housing to this nation’s would be homebuyers!

III.

THE QUESTION ON EVERYONE’S MIND:

HUD-Code housing manufacturers having a profitable year or do they continue to suffer financial loss due to raw material price increases, OEM inventory issues, and transportation costs?

On one hand, Wall Street analyst reporting paints a generally rosy picture of manufactured housing profitability.*1 Yet communiques from some of these same firms (Think the Big 3-C companies) paint a dismal state of business affairs, e.g. “…we have concerns (as to) viability to continue to maintain price protection.” (&) “This is resulting in the production of hundreds of units at significant losses.”

Who and what to believe?

Your input on this confusing but important matter? Gfa7156@aol.com

End Note.

1. For examples of said stock market performance among HUD-Code manufacturers and land lease community real estate investment trusts (‘REITs’), read the monthly ‘Manufactured Housing Production & Stock Market Report’ that’s an integral part of every issue of The Allen Confidential newsletter. Visit www.educatemhc.com

IV.

HOW ‘BOUT A BREATH OF FRESH AIR?

Federal Housing Finance Agency (‘FHFA’) will, on 14 September 2021, host a Public Listening Session about ‘Using Accessory Dwelling Units (‘ADUs’) to Increase Housing Supply.’ This session will occur between 1 & 4PM EDT. Contact FHFA directly for more information.

FHFA goes on to say it “…is interested in learning more about the potential of accessory dwelling units (‘ADU’) to address housing supply and affordability challenges in communities across the U.S., including how FHFA and its’ regulated entities, Fannie Mae & Freddie Mac could support this housing type.”

A few personal observations about this emerging ADU matter:

First, I’m encouraged to hear a federal agency declare ADUs are indeed a ‘housing type’.

Second; Use of Tiny Houses (in my opinion, a type of ADU) are already approved for siting on larger building sites, in California, on which already sit larger stick-built or manufactured homes.

Third. In my opinion, ADUs (whether they be Tiny Houses or customized sheds with built-in sanitary facilities and kitchens), when allowed by local housing authorities, make for ideal siting on functionally obsolete rental homesites in land lease communities.

I plan to sit in, and possibly comment, during this Listening Session. How ‘bout you?

George Allen, CPM, MHM c/o EducateMHC

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