Blot Posting # 816; Copyright 25 October 2024. EducateMHC
Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. another type of offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks_, comprise the commercial real estate (‘CRS’) 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 a lesser extent, the recreational vehicle (“RV’) industry. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, and 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. Also 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 freelance consulting, and authoring many nonfiction texts.
George Allen is the sole 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’s ‘Allen Legacy’ columnist and editor at large. He’s a Vietnam combat veteran, retired lieutenant Colonel of U.S. Marines, author/editor of 30 books and chapbooks on MH, communities, business management, prayer, and figures of speech.
American Community Survey (‘ACS’) Data Stuns!
Census Bureau recently released new ACS data showing, in 2023, “…a record high 22.0 million renter households spent at least 30 percent of their income on housing.”
And “Rent increases outpaced renter income growth.” In 2023, median gross rent (including utilities) paid by renters was $1,406month – up 8 percent from previous year.
“Multiple factors raising costs of homeownership.” Median monthly cost for 51.6 million homeowners, with a mortgage, was $1,904. Why so high? Rising property taxes, insurance premiums, and other non-mortgage costs.
“Homeownership rates among households under age 35 decreased 0.5 percentage points to 2022-2023 to 36.1 percent.” This offset by higher rates among older households kept national homeownership rate at 65.2 percent in 2023.
“…the homeownership rate for black households remained 27.7 percentage points below the homeownership rate for white households (72.4 percent).” Homeownership rate among Hispanic households? (51.0 percent). Asian households @ 63.4 percent.
Household growth has been hot since the pandemic, but is now slowing. In 2010-2019, the US averaged 915,000 new households annually; then 2.33 in 2022; and, now 1.46 million in 2023.
“…the number of renter households living in single-family homes increased by 22,000 in 2023, the first growth in this rental housing stock since 2016. Total? 14.3 million Renter households lived in single-family homes last year.”
Have You Heard of the ‘1792 Exchange’?
It’s a 501©(3), educational, non-profit organization whose mission is to “preserve freedom by steering public companies back to neutral on ideological issues.” What’s that mean? Well, in a recent Press Release, the organization’s CEO urged “America’s top business leaders to take a stand against stakeholder capitalism and ditch divisive agendas.” that was first proposed at the 2019 Business Roundtable with 200 chief executives present.
1792 Exchange’s goal? Encourage business executives to reevaluate stakeholder-driven governance (as opposed to supporting shareholders & maximizing value), and get back to the business of doing business.
Recommend you research the ‘1792 Exchange’ online to learn more and form your own opinion of their actions and how their goal might relate to your corporate interests.
HUD Changes Monitoring Contractor
HUD’s Office of Manufactured Housing Programs (‘OMHP’) “has secured the services of a new monitoring contractor for the Federal Manufactured Housing Installation Program. The firm? Tribal One, replacing SEBA Professional Services.
Effective immediately all installer applications, HUD Forms 306, 307, 308, & 309 should go to Tribal One.
Contact information? Mailing address: 6161 S. Syracuse Way, Ste # 280, Greenwood Village, CO. 80111. Email: MHIPservices@tribal.one And phone: (719) 675-6720. Points of contact: Peter Uson & Jeff Simpson.
Personally, I lost faith in HUD’s administration of the manufactured housing installation program when it decided, several years ago, to ignore the practicality and engineering integrity and efficacy of the Frost Free Foundation (‘FFF’) system originally proposed by industry consultant George Porter. In my opinion, if everyone (i.e. land lease community owners/operators) nationwide faithfully and rightfully used FFF to install and secure all HUD-Code manufactured homes, ‘everyone’ would be in compliance, not just the mishmash of compliant and noncompliant states we endure today.
Have You Signed Up to Attend MH2X Yet?
MH2X is SECO’s initiative to double 2025 production of manufactured homes, by encouraging community owners/operators to buy and sell new HUD-Code homes to fill vacant rental homesites and upgrade their properties.
Next MH2X Workshop will occur 20 & 21 November 2024, at the Country Inn &u Suites at 4500 Circle 75 Parkway, Atlanta, GA. 30339.
What’s involved? A dozen presenters, a community tour, templates, document and files, practical examples, and superb interpersonal and corporate networking. For more information and to register, visit contact@secoconference.com
Who will be present? In addition to owners/operators of land lease communities and property portfolios, there’ll be Business Development Executives present from all three Big-C HUD-Code housing manufacturers: CAVCO, Champion/Skyline, Clayton, and Live Oaks Homes.
What would it mean to ‘double 2025 production of manufactured homes’? Well, in 2022 our industry produced a century-to-date (‘CTD’) record high of 112,886 new MHs. The next year, in 2023, that total dropped to 89,169. And we can expect that decline to continue unless land lease community owners/operators (‘You!’) buy more new homes to place onto rental homesites within your properties. It’s entirely possible, with your efforts, to see year 2025 end with 170,000 new MHs produced (i.e. that’s roughly double the 89,169 produced back in 2023.
So, will we see you at this and future MH2X Workshops? Sure hope so! And if you can’t make it to this one, plan to be present at the Louisville MHShow, 15-17 January 2025, as that’s likely where the next MH2X Workshop will be held.
George Allen