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

May 31, 2024

Offsite Construction – or Not?

Filed under: Uncategorized — George Allen @ 6:27 am

Blog Posting # 795, Copyright 1 June 2014. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable factory-built housing (a.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trade term & trend tracker, as well as information resource for both business models, and to some extent, the recreational vehicle industry! Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & via www.educatemhc.com to purchase Community Management in the Manufactured Housing Industry, and SWAN SONG, a history of land lease communities & official record of annual MH production totals since 1955. And my autobiography, From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as prolific non-fiction author and popular freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine columnist and editor at large. He’s a Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, and author/editor of 30 books & chapbooks on MH, communities, business management & prayer.

Offsite Construction – or Not?

Have you noticed? During the past few months a new trade term has been inserting itself into the casual parlance (‘way of speaking, language’) of housing at large. One offsite construction viewpoint I ascribe to embraces modular and manufactured housing, as well as Park Model RVs, various types of ADUs (‘accessory dwelling units’, e.g. Tiny Houses) and pre-fab housing units under the umbrella of this apt trade term – as they are all fabricated offsite.

But then I’ve noticed, of late, that the relatively new trade publication ‘Offsite Construction’ routinely narrows the definition of offsite housing to focus solely on modular housing. A recent column (‘The Final Word’ by Ken Semler), however walks both sides of this offsite construction terminology conundrum. Here, writer Semler describes “Vertical integration essentially means that you won or control the five key aspects of (modular) construction: Design, Manufacture, Delivery, Installation and On-site Finish.” (Emphasis on ‘modular’ added. GFA).

Point being: All forms of offsite construction – again, modular & manufactured housing, Park Model RVs, types of ADUs, and pre-fab housing units, ALL typify the five key aspects of construction just cited. So, why shouldn’t they be included in the collective term ‘offsite construction’? An alternative, I suppose, would be for the magazine to change its’ name to something restrictive, like ‘Modular Construction’ – or resurrect and use the short-lived trade term ‘HUDULAR’ (i.e. HUD manufactured & modular housing combined) from year 2002.

Guess we’ll have to wait and see how this pencils out during the months ahead. For me, however – and in the meantime, I plan to continue to talk and write about offsite construction as being inclusive of modular & manufactured housing, Park Model RVs, types of ADUs, and pre-fab housing units. What say you? Let me know via gfa7156@aol.com

Attend RV/MH Hall of Fame Induction Banquet!

The evening of 19 August 2024 will be very special in the lives of five of our peers in the manufactured housing industry! Sam Landy, Kamal Shouhayib, Nathan Smith, Todd Su, and Charlie Hemphill will be inducted into the prestigious RV/MH Hall of Fame, located in Elkhart, IN. Are you planning to attend? I sure hope so. This is the sole annual gathering in our industry, where pioneers, leaders, and significant ‘players’ are formally recognized with this singular honor. For more information, visit the RV/MH Hall of Fame website or phone (574) 293-2344.

Now, for a word about being selected for induction into the RV/MH Hall of Fame. The process begins with a close friend or associate in the industry or realty asset class, willing to complete the application process in your behalf – if you have at least 25 years direct experience in either the RV or MH industry, and recruit three individuals to pen letters of recommendation to accompany the application. And yes, you can begin this process yourself. Again, visit the RV/MH Hall of Fame website for more information.

Also, understand this is not usually a ‘slam dunk’ process. Only occasionally are individuals selected for induction the same year their application is submitted. For many, it takes ‘years’ to experience the honor. And applications are kept on hand for active consideration for five years, and then must be updated/refreshed. IMHO, induction should not be viewed or bestowed as an ‘end of tour/career’ award; rather, earned recognition for significant contributions of personal service, notable improvements, and or achievement within one’s industry or realty asset class.   

Here’re a couple unsolicited and unofficial, but personally-experienced tips for those considering positioning oneself for induction. Attend at least one RV/MH Hall of Fame banquet before beginning the process! Why? To ‘get the lay of the land’, as to what happens during the afternoon and evening of the annual induction banquet. And while at the RV/MH Hall of Fame, make it a point to visit RV & MH exhibit halls, to truly appreciate the legacies of both industries preserved therein. While you’re on site, make a monetary contribution to support the continued work of the RV/MH Hall of Fame federation. Finally, when recruiting individuals to pen letters of reference in your behalf, consider having one of them being a present enshrinee of the RV/MH Hall of Fame.

George Allen

May 24, 2024

A Memorial Day Story & Tribute

Filed under: Uncategorized — George Allen @ 6:20 am

Blog Posting # 794, Copyright 24 May 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH”) is federally-regulated, performance-based, affordable-attainable factory-built housing (a.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trade term & trend tracker, as well as information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, 7 via www.educatemhc.com to purchase Community Management in the Manufactured Housing Industry, and SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955. And my autobiography, From SmittyAlpha6 to MHMaven! Describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as prolific non-fiction author and popular freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine columnist & editor at large. He’s a Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, and author/editor of 30 books & chapbooks on MH, communities, business management & prayer.

The Housing Meetings Trifecta-like Conflict

National trade associations often plan their membership gatherings, annual and otherwise, during spring and fall meeting shoulder seasons, to benefit from generally lower hotel room rates. What is shoulder season? It’s occurs between peak and off-peak tourist seasons when there’s less overall business to be captured by hotels with meeting facilities.

With that said, know there’s a ‘MH meetings trifecta conflict’ on the horizon. First off, what’s a ‘trifecta’? Well it’s ‘a horseracing term requiring choices of first, second and third place, in exact order to win’. So, the Manufactured Housing Institute (‘MHI’), the ‘I’m HOME Network at the Land Institute’, and annual ‘Shed Exposition’ (the latest housing fringe) have already scheduled overlapping national meetings on the 25th of September at different locations – hence the trifecta-like metaphor. Here’s how they pencil out – following the ever-popular SECO gathering in Atlanta GA., on16-19 September 2024. OK, here goes:

MHI’s annual meeting will be held in Phoenix, AZ. From 23-25 September

‘I’m Home Network’/ the Land Institute, will also be held in Phoenix, AZ., on 24 & 25 September

The annual SHED EXPO will occur in Grand Rapids, MI., on 25 & 26 September

So, where will you be on 25 September 2024 of the trifecta race to meet? I’ll likely be at the SHED EXPO. Why? Can’t really afford the trip to Phoenix, and frankly, I’m intrigued by the increasingly sophisticated design and utility of the contemporary shed product. Here’s more…

The ‘I’m Home Network’, recently partnered with the Land Institute, is focused on manufactured housing issues. The SHED EXPO is a relatively unknown entity to MH folk. However, I’ve noticed, at a previous national gathering, and in recent editions of their trade publication,  ‘sheds’ are looking like various designs of ADUs (‘accessory dwelling units’) such as Tiny Houses, Park Model RVs, steel shipping container conversions, and more. These variants can also be characterized as being offsite construction (factory-built housing). By the way be watching for a national gathering of ADU-interested folk in CA., in the foreseeable future

Public Listening Session on Equitable Housing Finance Plans…

June 5th is coming up quickly! If you want to participate in an FHFA hosted “public listening session to hear interim feedback on Fannie Mae & Freddie Mac’s (the Enterprises) implementation of their current Equitable Housing Finance Plans (‘EHFP’)”, and preparation of their 2025-2027 plans, contact the Federal Housing Finance Agency to register for this timely event. I plan to participate.

RVs Continue to Set Data Pace for MH Industry

You know how I’ve been sharing RV-related statistical data these past few weeks, suggesting MH would do well to emulate our sister industry where Economic Impact data, etc., is concerned? Well, here’re recent ‘data finds’ that we, in the MH and land lease community business, would do well to know about ourselves:

Wholesale RV shipments finished at 313,174 units for the year 2023, with a retail value of $20.27 billion. Well, MH shipments finished at 89,169 units for the year 2023. So, what’s the retail value (a.k.a. Economic Impact) of these new HUD-Code manufactured homes? Don’t you think it high time that MHARR &/or MHI figures that out and let us all know? Answer: YES!

Texas remains the top destination for RV shipments, receiving 9.13% of total RV wholesale shipments, followed by California at 7.42%, Florida 1t 7.3%, Ohio at 3.96 percent ,and Michigan at 3.68%. Now, in this instance we can actually compute these percentages for MH, thanks to monthly data published by the Institute for Building Technology & Safety (‘IBTS’), HUD’s scorekeeper for our industry.

And, Indiana overwhelmingly continues to lead the country in RV production, manufacturing nearly 84% of all RVs in the U.S. and Canada.

You know, it’s embarrassing the RV industry has a much better handle on their Economic Impact – and more, than we do over in manufactured housing. Why is that? Not the embarrassment part, but the woeful lack of data that characterizes our business models. I can’t ‘say’ for the manufacturing and retail sales segments of the industry, though I do look to the two national trade groups who claim affinity to MH.

But I do know this: For 40 years I researched and published identity, occupancy, OER information, REIT growth – and more, for land lease community owners/operators. But now that I’m retired (since 2021), no one (that I’m aware of) has stepped forward to continue identifying property portfolio folk (i.e. 500+/- entities) and the above-referenced data that helps them manage their land lease communities.  

MH2X! Project

As you already know, the goal of the MH2X Project is to encourage, even enable the manufactured housing industry to double its’ production of new HUD-Code homes during years 2024 & 2025 – by initiating home sales workshops thru the rest of 2024 and into 2025, hosting the ever-popular SECO Conference in September (16-19 in Atlanta, GA.). Also by encouraging land lease community owners/operators to upgrade their properties and fill vacant rental homesites with new MHs sold and seller-financed on-site.

To this end, I came across a random comment recently, penned by an MH2X Project aficionado, and edited for this edition of our weekly blog posting:

“One of the main reasons community owners don’t buy and sell more new homes, is the difficulty would be homebuyers have obtaining conventional (home only) financing. As you may know, we bypass that obstacle by selling new homes on-site via lease-option contracts.” If you’d like to learn more about how to effect the lease-option, let me know via gfa7156@aol.com

Memorial Day

Memorial Day reminds me how, at one time in my life and for a considerable period of time (13 months), I walked near death’s door with other young men who’d volunteered to serve our nation on foreign soil. Fortunately, I made it home alive to live out my life with Carolyn and our children. So many of my friends, however, did not make the trip home, having died on one or another battlefield. That’s why, every Memorial Day, I make it a point to pause and remember them, along with the firefights and other engagements we experienced together. Not an easy task – in either perspective.

Here’s one example. During February 1969, U.S. Marines assaulted enemy (NVA & Red Chinese) positions in the infamous Ashau Valley (i.e. NW corner of Vietnam bordering Laos, called Leatherneck Square). During one battle we captured two Russian field guns (artillery), along with ammunition and supplies. One of the NCOs (non-commissioned officers) that led one of the charges was Sergeant Don Myers. In his autobiography, Your War My War, he describes some of the action that day…

“When the air strike lifted, 1st platoon started up the small mountain. A tremendous firefight erupted, and I could hardly believe the tremendous volume of weapon fire coming off that slope, considering the pounding our flyboys had just tossed in there.”

“I grabbed the radio handset from PFC Fish and monitored the net, hoping to find out what was going on. 2nd Lt. Archie Biggers, platoon commander of the 1st platoon was shouting frantically over the radio to Capt. Kelly, C Company CO, ’There’re big guns up ahead and a big truck is burning. We’re gonna need help up here fast!’ “

“I yelled at my people to drop their packs and go forward on the run. Our rear element pushed the front of the platoon, and they too got caught up in our charge, dropping their packs as they joined the rush up the large hill. The mid-afternoon sun was blistering, and bullets were whizzing and zinging through the underbrush and beating into trees. The noise of gunfire and small explosions was all but deafening, as I looked up the slope of the mountain-like hill. Not 40 meters away stood the largest enemy artillery piece I’d ever seen! The long barrel of that cannon looked like it was pointing straight down the trail at not only me, but the rest of the men that were scrambling up the slope with me as well. I yelled aloud, ‘Sweet Jesus, don’ shoot that mother f_______!’  In seconds, I moved past the unmanned gun, and noticed several bodies of dead NVA lying near the weapon. I was glad someone had gotten them before they had unlimbered that gun for firing. The barrel extended out 30 feet and the tires came up to my waist. A caisson affair was in back of the artillery piece with an open, ready box of big brass shells sitting upright in slots.”

“Lt Biggers was being treated by a corpsman for back and arm wounds. My platoon commander, 2nd Lt. Bob Palisay was also being treated by a corpsman for hand grenade wounds. Lt. Palisay ordered me to continue the assault. I got the 3rd platoon moving again and moved uphill less than 300 feet, when stopped by a renewed volume of small arms fire. I plopped to the ground next to a burning hulk of a tracked artillery prime mover. Napalm had cooked the driver behind the wheel (and was still) engulfed in flames. Another ‘crispy critter’ lay burning a few feet from me. Squad leader of the first squad, Cpl. Jack Reynolds, crawled over to me wanting to know what we should do next. I don’t know what came over me just then. Maybe I was mad or just didn’t care anymore. It was like a bloodlust, wanting to get to the top of this hill. I said a foul word or two, and then stood up and yelled, ‘Let’s go!’ Jack didn’t say a word, but stood up next to me. Both of us advanced with our weapons leveled at the hip, firing away.”

“The entire platoon was on its’ feet, surging forward, screaming at the top of their lungs. A cluster of five enemy soldiers came running downhill toward Jack and me. We cut them down without a pause in our stride.”

“Obscenities rang through the virgin jungle as the enemy tried to make a stand. The entire platoon was maneuvering by fire, shooting their rifles on automatic select, as we hosed the enemy.”

“We passed another artillery piece, a twin to the one below us. Enemy dead were lying all around it.”

“I have no idea what eerie thoughts the enemy must have had as this rebel-rousing, reeling, curing, insane group of marines came at them in John Wayne style charge. I have a feeling, if I saw this berserk group trotting towards me, waving and shooting rifles, many with bayonets affixed, screaming bloody murder and loudly singing the Marine Corps hymn, I may have been inclined to break and run. And that’s just what the enemy did. I glimpsed shadowy figures bobbing and weaving at a distance, moving away from our advancing force.”

This is how the late Sgt. Myers described the battle we shared 55 years ago. Don served several tours in Vietnam, and for many years was recognized as the most decorated Marine in the state of Indiana. While we were in this same battle we did not meet until years later, at a Marine Corps function in Indianapolis, IN. Don died a few years ago.

So, this is how Memorial Day goes for me. Not particularly emotional, just respectfully honoring the memories of these warriors I once knew.

At least two other books, besides Don’s, describe aspects of the battle just described. Karl Marlantes’ historical novel Matterhorn makes passing mention of Operation Dewey Canyon (Karl was a Marine lieutenant there at the time). And my autobiography, From SmittyAlpha6 to MHMaven contains short stories from that time frame (e.g. ‘PUC Beer’). The ‘Smitty Alpha 6’ reference is to my radio call sign then, when I was a company commander with 3rd Shore Party Battalion. My role then? As battalion rigging officer, prepare both Russian artillery pieces for helicopter retrograde back to the Dong Ha forward combat base, before shipment to the U.S. for testing and display. One gun is on permanent display at the USMC Museum in Quantico, VA. Imagine my emotions when I visit the museum and, once again, stand close to it and remember….

George Allen

May 16, 2024

First, a Review of 67,695+/- New Homes in US @ March 2024

Filed under: Uncategorized — George Allen @ 3:59 pm

Blog Posting # 793, Copyright 17 May 2024. EducateMHC

Know this! HUD-Code manufactured housing (“MH’) is federally-regulated, performance-based, affordable-attainable factory-built housing (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trade term & trend tracker, as well as information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & via www.educatemhc.com to purchase Community Management in the Manufactured Housing Industry, And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955. And my autobiography, From SmittyAlpha6 to MHMaven! describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as prolific non-fiction author and popular freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee,  MHInsider magazine columnist & editor at large. He’s a Vietnam combat veteran & retired lieutenant colonel of U.S. Marines. and author/editor of 30 books & chapbooks on MH, communities, business management & prayer.

First, a Review of

67,695+/- New Homes in US @ March 2024

Here’re key stats from the first-ever ‘Whole U.S. Housing Story’ (March 2024), researched by EducateMHC. Did you read it in last week’s blog posting # 792? If not, but interested, request the blog via gfa7156@aol.com. In the meantime, here’re the U.S. new housing statistics:

8447 new HUD-Code manufactured housing units were produced during March 2024.

+1155 Modular & Panelized (i.e. ‘prefab’) housing units estimated produced during March 2024

+343 Park Model recreational vehicle (‘RVs’) were produced during March 2024

=9,945 composite subtotal of the three previous offsite housing production totals listed above.

+57,750 estimated number of single-family site-built housing units started during March 2024

=67,695 estimated total number of new housing starts throughout the U.S. during March 2024

Reminder. This ‘Whole U.S. Housing Story’ is a work in progress. If you have critiques or suggestions, especially relative to data sourcing, let me know via gfa7156@aol.com  And understand this; all the above-referenced estimates & sources are footnoted in original blog.

And Then There Was This…

The RV industry’s ‘Move America Economic Impact Study’ provides political savvy $ information that is totally missing from the manufactured housing industry & land lease community real estate asset class scene! Here’s how the RV industry’s pithy Press Release reads:

“The RV Industry Association’s latest Economic Impact Study in 2022 measured the impact the RV economy had on jobs, wages, taxes and spending. The study revealed the RV industry had an overall economic impact to on the U.S. economy of $140 billion, supporting nearly 680,000 jobs, contributing more than $48 billion in wages and paying over $13.6 billion in federal, state and local taxes.” Whew! What an impact that industry has on national decision making! And there’s more:

The study goes on to show what comprises the $140 billion economic impact figures:

$73.7 billion generated by RV manufacturers and suppliers

$35.7 billion generated by RV campgrounds and related travel

$30.5 billion generated from RV sales and service facilities

Now, here’s the ‘future’ Press Release paragraph every MH aficionado should want to read – with the blanks filled in, no longer ‘unknown’ Economic Impact statistics:

“The MH industry associations’ latest Economic Impact Study, in 2023, measured the impact the MH economy had on jobs, wages, taxes and spending. The study revealed the MH industry has an overall economic impact on the US Economy of $_______________billion, supporting nearly _______________jobs, contributing more than $_____________billion in federal, state, and local taxes!”

Will we ever see this happen, after 70+ years of waiting? That’s up to you! If you’re a dues-paying member of either national MH trade advocacy entity, that’s where to begin – with your suggestion for them to get busy and give us tools with which to influence legislators and more.

GOAL. A manufactured housing Economic Impact study for the year 2024!

An MH & RV Industries Conundrum Stated &…

While researching the history of the RV/MH Hall of Fame, in Elkhart, IN., I had this epiphany*:

‘Why, in the MH & RV industries, do realty-based business models, like land lease communities, RV parks, and campgrounds, demonstrate markedly less influence, to the point of being rarely mentioned in trade publications, than their product manufacturing counterparts, e.g. HUD-Code manufactured housing and various types of recreational vehicles?’

Think about it. The Manufactured Housing Association for Regulatory Reform (‘MHARR’), by charter, is 100 percent housing manufacturer focused. The Manufactured Housing Institute (‘MHI’) though boasting representation of all segments of the manufactured housing industry, is dominated by housing manufacturer members, when it comes to statistical performance reporting, federal legislation and regulatory matters. And now that I’m learning more about the RV industry I’m seeing the same emphasis there: manufacturers front and center, realty-based businesses nary a mention.

Why is this? To begin with, ‘follow the money’. All MHARR’s income comes from their regional manufacturer membership, and the majority of MHI’s income is contributed by the Big 3-C HUD-Code firms, lesser from real estate-based businesses. And then there’s the nature of the business models. ‘Something’ is always happening where housing (& RV) products are concerned, from design changes to marketing challenges to regulatory matters. Whereas, among land lease communities and RV/campground businesses, rental income and operating expenses are relatively stable, but for seasonality and effects of transiency and other factors.

All this likely ‘splains’ why we see lesser presence of, and publicity about, the realty-based businesses that make up the manufactured housing and recreational vehicle industries – at the national press level, RV/MH Hall of Fame, and elsewhere. The MHARR folk see it this way: “…national post-production representation has failed to hold government agencies – FHFA & HUD accountable….” Why? Because their presence and influence is marginal to non-existent on the national advocacy level. And I don’t see this changing anytime soon. For a brief period of time, roughly from 1993 till the turn of the century, land lease community property portfolio owners/operators, via their newly formed National Communities Council (today a division within MHI) made their presence known, and as long as strong leadership was in place, well-represented. That, in my opinion, is no longer the case; the NCC is a shadow of its’ past.

Conclusion. Realty-based (i.e. commercial real estate) MH & RV-related businesses will always be secondary influencers within national trade entities. The sole exception to this has been how  conventional apartment owners formed and grew the National Apartment Association to (‘NAA”) its’ present size and influence in realty matters of national importance.

End Note.   1 Epiphany: ‘a sudden, intuitive perception of or insight into reality or the essential meaning of something, often influenced by some simple, commonplace occurrence.’ From Random House Webster’s College Dictionary.

MHARR Quotes HUD,

 Then Tromps ‘attainable’ & ‘off-site’ Lingo

I have long been critical of trade publication articles that lightly use the term ‘affordable housing’ without defining just what they mean by it. Here’s a rare exception, found in a recent communique from MHARR quoting HUD’s Office of Policy Development and Research (‘PD&R’), in an August 2017 article titled ’Defining Housing Affordability’, to wit:

“Housing programs in the United States have long measured housing affordability in terms of percentage of income. Over time, (a) 30 percent threshold…became the standard for owner-occupied housing, and it remains the indicator of affordability for housing in the United States.” Furthermore, “…household (that) spend more than 30 percent of income on housing costs (are) housing cost burdened.”

What this definition does not do, is specify whether the ’30 percent of income’ includes housing costs like PITI and utilities – or not.* This is so important! Including PITI+ quickly and noticeably increases the ’30 percent’ factor, reducing the amount of housing  prospective homebuyers can afford; whereas, not including PITI+ means the party can buy far more house – but increases lender risk. By the way, this is the same 30% factor is cited in the widely-circulated ‘Ah Ha & Uh Oh Worksheet’ for estimating how much MH & conventional housing folk can buy and site in land lease and fee-simple ownership environments. For a free sample copy of this versatile form, email gfa7156@aol.com and request it – be sure to include your USPS address.

MHARR, in this same communique, went on to point out “…the average sales price of all new manufactured homes was $127,300. This compares to a $430,808 ‘average’ for a site-built home, excluding the cost of land in both instances. And, according to the U.S. Census Bureau data, “real median household income in the US was $74,580.”

MHARR, furthermore, does not like new trade terms appearing on the homebuilding scene; describing ‘attainable’, in housing matters, as “meaningless linguistic blather” – and extends that criticism to the recently-invented term of ‘off-site’ housing (a.k.a. offsite construction), a synonym for factory-built housing.

Notwithstanding the profound respect I have for the manufactured housing industry’s ‘Washington Watchdog’ (‘MHARR’), the association should not dismissively ignore new ways to address industry matters of interest. Attainable might prove to be a means of putting a sharper edge to the question of Affordability. And offsite construction, at this point, does not seem to include manufactured housing, but it likely will – as manufactured housing, modular & panelized products, components, even Park Model RVs, are all fabricated in factories (i.e. factory-built housing) off and away from building sites. Give both terms a try. They’ll either blossom or die on the proverbial vine of disuse.

What do you think of these new trade terms? I’d like to know, via gfa7156@aol.com

End Note.

  1. PITI = principal, interest, taxes & insurance (+) utility expenses….

George Allen

May 8, 2024

Signed-on in Support of MH2X Project?

Filed under: Uncategorized — George Allen @ 6:50 am

Blog Posting @ 792, Copyright 10 May 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH”) is federally-regulated, performance-based, affordable-attainable, factory-built housing! (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email gfa7156@aol.com, & visit www.educatemhc.com to purchase Community Management in the Manufactured Housing Industry. And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955. And my autobiography, From SmittyAlpha6 to MHMaven! describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as non-fiction author and freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (“MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fam enshrinee, MHInsider magazine editor at large, & Allen Legacy columnist. Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, and author/editor of 30 books & chapbooks on MH, communities, business management & prayer.

Signed-on in Support of MH2X Project?

Last week we introduced you to the MH2X project, that grassroots movement whose goal is to motivate and assist the HUD-Code manufactured housing industry in ‘Doubling the Annual Production of Manufactured Homes During Year 2025’! How? By filling vacant rental homesites and upgrading land lease communities with new manufactured homes.

But for this to happen, the project needs nationwide tangible and moral support from businessmen and women in all sectors of the manufactured housing industry. Have YOU signed-on yet? If not, go to www.SECOConference.com. There, click on the MH2X prompt and enter your contact information and indicate what part you would like to play in this project.

So far, industry response has been more than encouraging! Plans are already in the works for training sessions as to how to buy, sell, and seller-finance new homes on-site in land lease communities and elsewhere. And there’s more, much more. But you likely won’t learn of the alternatives if you don’t express interest and participate soon. Visit the website!

‘Whole U.S. Housing Story’ for March 2024

Well, did you see it? The ‘first ever’ Whole U.S. Housing Story, as of March 2024. It was distributed nationwide earlier this week to hundreds of GFA ‘insiders’ and industry leaders.

What is the ‘Whole U.S. Housing Story’? Let me ‘splain’ it this way. Have you ever, while looking at MHI’s or MHARR’s monthly Manufactured Housing Shipment Report, found yourself wondering: “Hmm. Wonder what the rest of the housing industry is doing, relative to modular and panelize homes being built, as well as single-family site-built homes started, even maybe Park Models going into land lease communities this month?”

Well (again), this is why I’ve started cobbling together the ‘Whole U.S. Housing Story’. Here’re the very basic, first time ever, numbers I’ve come up with for the month of March 2024.

8447 HUD-Code manufactured housing units produced during the month of March.

1155 Modular & panelized (‘prefab’) housing units estimated for the month of March

343 Park Model recreational vehicles (‘RVs’) during the month of March

9,945 composite subtotal of the three previous housing totals; to be added to this:

57,750 Estimated number of single-family site-built housing starts during March, for a total of

67,695 new housing starts in the U.S. during March 2024

Now understand, this is a ‘work in progress’. I plan to work each month towards refining this data, proofing the sources, and presenting as accurate and timely information as possible. Keep in mind, I footnote my resources and formulae in the actual ‘Whole U.S. Housing Story’ Report. Criticism and suggestions welcome via gfa7156@aol.com

What Should Be But Isn’t!

Another manufactured housing-related conundrum (‘ a hard question, riddle’), goes like this: “Why do we know so little about the economic impact of HUD-Code manufactured housing & land lease communities on local, state, regional, and national scenes? Answer (in my opinion) has to do with the fact that ‘some folk’ simply don’t want that information to get outside our industry and realty asset class. Why? You’ll have to ask them (i.e. leaders of the industry). But here’s an example of a sister industry that does ‘keep score’ and happily lets the public know.

RVs Move America Economic Impact Study (a press release): “the RV Industry Association’s latest economic impact study in 2022 measured the impact the RV economy has on jobs, wages, taxes and spending. The study revealed that the RV industry had an overall economic impact to the US economy of $140 billion, supporting nearly 680,000 jobs, contributing more than $48 billion in wages and paying over 13.6 billion in federal, state, and local taxes.”

The study goes on to show what comprises the $140 billion economic impact figures:

$73.7 billion generated by RV manufacturers and suppliers

$35.7 billion by RV campgrounds and related travel

$30-.5 billion in RV sales and service facilities.

How ‘bout that? Tell me, wouldn’t you, like me, be anxious to read a paragraph as follows, with the blanks filled in, relative to manufactured housing and land lease communities economic impact?

‘The MH industry association’s latest economic impact study in 2023 measured the impact the MH economy has on jobs, wages, taxes and spending. The study revealed the MH industry has an overall economic impact to the US economy of $__________billion, supporting nearly __________jobs, contributing more than $______billion in federal, state, and local taxes.’

Well, it’s not happening – and won’t happen anytime soon; at least not until enough businessmen and women demand to have this sort of information available to them as they influence local and state legislators relative to manufactured housing and land lease communities. All we get now is the estimated production value of new HUD-Code homes produced each month, and that data is based on a formula more than a decade old! Surely, HUD-Code manufactured homes are worth more than just $43,126 per unit produced. But that’s what we’re expected to work with at this time.

So, just what is the economic impact the MH economy has on jobs, wages, taxes and spending here in the U.S.? When will we finally learn that critical information? The challenge is up to you!

Just Another Bugaboo!

Bet you didn’t know this! “The Department of Housing and Urban Development (‘HUD’) is seeking a Deputy Assistant Secretary to lead the Office of Manufactured Housing Programs, which regulates design and construction of manufactured home built in the United States.”

Open & closing dates: 4/22/2024 – 05/13/2024 (Just a few days from now)

Salary: $147,649 – $221,900

Location: Washington, DC

Appointment Type: Permanent, Full-time, Senior Executive

And there’s a whole lot more to the job opening.

Why a bugaboo (‘a fancied object of terror’)? Because this sort of job opening, in my opinion, should be given the widest possible distribution throughout the manufactured housing industry – by both our national trade advocacy bodies. Does it happen? Not in my 45 years of MH experience! No, jobs like this are made known – so I’m told – to selected, favored individuals. Yes, it is a ‘fancied object of terror’ knowing such a high profile job simply goes a-begging & maybe awry when it’s kept secret like this. We deserve to know what’s happening like this!

If this job had been available a decade or more ago, and I’d been told about it, you can be sure I’d have applied. I know of few other individuals active within, even recently retired from, the MH industry who know more about the ins and outs of manufacturing and land lease community segments of our business models. But I’m not a political insider, now or ever.

So, for the time being, expect to be kept ‘in the dark’ about such opportunities, unless you’re well-connected on the national level. Sorry ‘bout that.

George Allen

May 3, 2024

AN ‘MH MOVEMENT’ IS A-BREWING!

Filed under: Uncategorized — George Allen @ 6:29 am

Blog Posting # 791, Copyright 3 May 2024. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing! (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email gfa7156@aol.com, & visit www.eucatemhc.com to purchase Community Management in the Manufactured Housing Industry. And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955 and my autobiography, From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as non-fictio0n author and freelance consultant.

George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine editor at large, & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. marines, and author/editor of 30 books & chapbooks on MH, communities, business management & prayer.

AN ‘MH MOVEMENT’ IS A-BREWING!

Not since August 31st, 1993 (31 years ago!) have I sensed this high level of frustration on the part of land lease community owners/operators desiring to fill more vacant rental homesites within their properties, with new HUD-Code manufactured homes!*1 What seems to be the problem? First, a brief historical perspective spanning the first two decades of this century.

As you likely know, thanks to chattel capital (a.k.a. ‘home only loans’) shenanigans at the turn of the century, the MH industry lost easy access to personal property lending – to this day! Consequences? Annual new HUD-Code housing production plummeted from 372,943+/- units in 1998, down to a nadir 48,789+/- by year 2009. Only then, with the advent of Community Series Homes (specially-designed HUD-Code homes for in-community siting), and community owners/operators learning to ‘spec’, install, sell, and seller finance new homes onsite, did we see annual MH production climb to 105,772 units in year 2021.*2 Now we might be on our way back down – or so it appears early in 2024. Why?

Pandemic-related issues like labor shortfalls, raw material and OEM shortages, and now, high interest rates, have combined to lengthen manufacturing lead times, increase wholesale price, and more. Here’s where ‘An MH Movement is a-brewing!’ comes into play.

Community owners/operators have spawned a timely grassroots movement titled MH2X

And here’s what they have to say about it….

INTRODUCING MH2X

Doubling MH production in 2025

            Our industry has languished, with annual production at about 100,000 new manufactured homes (‘MHs’) for years. ‘Best Guess’ is there’re 40,000 – 50,000 communities*3 in the U.S., that about 10 percent of the three million related rental homesites are vacant, and  upwards of half the remaining homes onsite are old, unattractive, dysfunctional, barely habitable eyesores. MH2X is a SECO-sponsored grassroots initiative to ‘Double annual production of manufactured homes in 2025’, by filling vacant sites and upgrading communities with new manufactured homes!

What will it take to ‘double MH production during 2025’? Many more small and mid-sized community owners buying and selling new MHs to upgrade their communities and fill vacant rental homesites.

What will it take to make this happen?

  • Community by community, owners must improve the industry by siting at least one new manufactured home, at a time, within their community.
  • Educating community owners on the home buying process: by becoming a retailer, specifying options, features, and pricing ensuring quick sales of MHs to satisfied buyers.
  • MH manufacturers going the extra mile to accommodate smaller community operators.
  • Secure financing to acquire and mortgage the new manufactured homes
  • Promotion and cost-effective conventional and social media marketing
  • Sales training
  • ‘Financing’ savvy to facilitate sale of new MHs, e.g. conventional ‘home alone’ financing, lease-option, short-term rentals with goal of conversion to conventional financing.

How shall we, as an industry, accomplish all this?

  • SECO, a non-profit 501(c)(3) entity, whose annual conferences attract upwards of 600 small and mid-size community owners and other industry personnel, will sponsor 4-6 hour workshops through the end of this year (2024) and into next.
  • Speakers at the workshops will be fellow community owners and managers who have ordered, setup, promoted, financed, and sold dozens, if not hundreds, of new MHs to upgrade their communities by filing vacant sites. Many have switched from buying used (resale) MHs to new ones.
  • Additional speakers will be from other segments of the industry, including manufacturers, licensed setup firms, financing experts, insurance resources, and promotion/marketing/sales specialists.
  • Attendance cost will be minimal, with proceeds used for out-of-pocket meeting costs and speakers’ travel expenses.
  • Our objective will be for community owners to leave the workshops with all pieces of the MH buying and selling puzzle in hand, motivated and ready to order new MHs for their properties.

How can you get involved?

  • Go to the SECO website: www.SECOConference.com, click on MH2X, enter your contact information and indicate what part you would like to play (e.g. community owners ordering new homes, supplier/vendor of products/services, speaker at one or more workshops, etc.).
  • Upload your company’s logo. They will all be promoted by SECO supporting MH2X events
  • Await more information from SECO about an initial workshop in Atlanta, GA., probably in about two months. More workshops will be scheduled, based on demand.
  • Help spread the word by passing this information onto other community owners, and encourage them to become involved as well.
  • Assist organizing other workshops in more locations around the U.S.
  • Plan to attend SECO24 in September (See information on SECO website).

Well, this is your industry’s clarion call – to you, to participate in a program aimed to ‘double annual production of manufactured homes during year 2025’! Will you get on board today? If so, visit www.SECOConference.com now, and await further word as to workshops and more!

End Notes.

  1. Significance of 31 August 1993? Manufactured home community (trade term at the time, replaced ‘mobile home park’) portfolio owners/operators had identifies one another less than a decade earlier. Now some wanted to take their properties public as real estate investment trusts (‘REITs’), but the real estate asset class lacked national credibility and profitability awareness by Wall Street Analysts. So, at a meeting of 19 owners/operators on 8/31/1993, steps were taken to launch a new national advocacy group representing the unique income-producing property type. Three years later, on 1/1/1996, the Manufactured Housing Institute launched the National Communities Council (later a division of MHI) to those ends.
  • A little known story about manufactured housing production interacting with in-community placement of new HUD-Code homes goes like this: In 1998 when 372,943+/- new HUD-Code homes were produced, only 15 percent (or 57,441 units) went directly into (then) manufactured home communities. 25 years later, given steep decline in the number of independent (street) MHRetailers, and community owners/operators taking  initiative to sell and finance homes onsite, 51 percent (or 57,571 units) of the 112,886 new homes produced in 2023 went directly into communities nationwide. This has been a major paradigm shift, since year 2000+/-, for the manufactured housing industry. GFA
  • Communities. Were ‘mobile home parks’ in the 1979s & 80s, ‘manufactured home communities’ during 1990 – 20000. And since the turn of the century, a trade term change to ‘land lease communities’. Read SWAN SONG for more information, as well as the industry’s official annual MH production levels since 1955. Available via www.educatemhc.com   

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