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

Blog Posting # 836; Copyright 21 March 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction), contrasted with traditional stick-built housing (a.k.a. onsite construction). Then, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH. And considering various types of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages) describes post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial MH information source. Contact EducateMHC via (317881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (Should be in every land lease community office nationwide!), and SWAN SONG – History of land lease communities & official record of annual MH production 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 freelance consulting and authoring of 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, RV/MH Hall of Fame enshrinee, the Allen Legacy columnist and editor at large for MHInsider magazine.

MH Trade Term & Trend Tracking for You!

How closely do you read the four introductory paragraphs to this weekly blog posting? Well, effective this week, within posting #836, there’s a significant trade term and trend tracking adjustment to the ‘Know this!’ admonition that begins the first paragraph.

Heretofore, HUD-Code manufactured housing (‘MH’) has been widely known as ‘federally-regulated, performance-based, affordable-attainable, factory-built housing’ – and still is! However, given the year 2023 launch, albeit relabeling, of ‘offsite construction’, to contrast and mate with ‘onsite construction’, there’s a present and ongoing need for trade term definition and trend tracking clarification.*1

Onsite construction housing. Every type single-family, residential housing constructed and erected onsite at scattered and subdivision building sites. This type housing is also commonly referred to as being ‘stick-built’ and traditional construction.

Offsite construction housing. This category of single-family, residential housing is fabricated in and shipped from offsite locations (e.g. factories) to scattered and subdivision building sites. This type housing (a.k.a. manufactured housing) generally includes factory-built products such as HUD-Code manufactured housing, modular & panelized housing, as well as Park Model RVs.

Why is this knowledge of onsite/offsite distinction important? Again – heretofore, all single-family residential construction in the U.S. has been tallied monthly and solely. as onsite construction, per  U.S. Census Bureau’s online reporting. Offsite construction, however, has not been included in this reporting, except for HUD-Code manufactured housing units permanently-installed on building sites conveyed fee simple. Hence, thousands of HUD-Code homes, and hundreds of modular homes and panelized homes, as well as Park Model RVs, have never been included in these figures! Result? An ongoing but incomplete reporting of all new housing permits, starts, and completions throughout the U.S.!

This reporting deficiency is now being addressed in a monthly ‘Total U.S. Housing Completions’ report by EducateMHC. For example, U.S. Census Bureau, for the month of January 2025 reported 137,583 onsite housing completions. But when 11,923 offsite construction completions are added to that figure, there’s a grand total of 149,506 units. And when annualized with no seasonal adjustments, we see 1,794,072 new housing unit completions estimated  during year 2025 – not the 1,650,996 estimated using just U.S. Census Bureau data.

So, is this ‘much ado about nothing’? Depends on one’s perspective. The way onsite housing completion data is reported now, we’re given a ‘glass half empty’ perspective. However, when offsite construction housing data is added to the U.S. Census Bureau mix, the perspective evolves to being ‘ glass half full’. Me? I prefer to know the total U.S. Housing completion story!

End Notes.

1. Debut of offsite construction marked by launch of the trade magazine Offsite Builder Magazine, and a similarly-named website.

• Census.gov/construction/nrc/current/index/html

The One & Only Manufactured Housing Boom?

The Minneapolis Federal Bank, in late February, published an essay by economist James Schmitz, J., titled: ‘Learning from the first (and only) manufactured housing boom’. This is pretty much a summary of common knowledge relative to HUD-Code manufactured housing in general, and some specific aspects in particular.

Early in the report, the writer posits the “heyday of mobile homes – from the 1950s to the early 1970s…not only was this episode the first successful U.S. experiment in mass producing homes…it remains the only one.” Not! While 1973 saw acme production of ‘mobile homes’ @ 579,940 units, the industry experienced a subsequent mini-renaissance in 1998 when 372,943 new homes were produced and shipped!

And a little earlier in said report, the writer paints an incomplete picture of why there aren’t more new manufactured homes produced today. See if you can identify what’s missing here: “Manufactured homes…could be the answer for millions more households than they now serve…if not for lingering stigma, hostile zoning, and a regulatory legacy that raises costs for manufactured homes and preserves the power of traditional ‘stick-built’ home construction.” How ‘bout accessible, appropriate home financing’ of chattel or ‘home only’ type, as well as real estate-secured loans? This is the challenge for ‘outside’ folk, to accurately tell us what’s wrong with our industry.

Now here’s an interesting factoid tucked into this report, relative to past years: The city of “Urban Grove lies just feet outside of Minneapolis, (&) two of Minnesota’ smallest full-fledged cities – Hilltop and Landfall – began as mobile home communities that later incorporated.”

The writer also points out that in 1955, L.C. Michelon authored How to Build and Operate a Mobile Home Park. That was the most contemporary development and management resource he could cite. No mention at all of Community Management in the Manufactured Housing Industry, nee Mobile Home Park Management, circa 1988 and 2021. Oh well, once again that outside perspective.

A final ‘interesting perspective’ finds the writer making these observations about the stick builders and the MH industry: “…although many firms operate in the traditional homebuilding industry, the industry functions as a monopoly that inhibits innovation and competition – especially from factory construction. He sees troubling monopolistic behavior in parts of the modern manufactured housing industry as well, such as vertical integration in which the same corporate entity owns the manufacturer, lender, and park.” Probably should have gone on to say that ‘the Big 3-C’ HUD-Code manufactured housing producers control 70+/- national market share.

George Allen

Blog Posting # 834; Copyright 7 March 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, including types of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describes the post-production segment of MH!

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial MH information source. Contact EducateMHC via (317) 881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (Copy of which should be in every land lease community nationwide!) & SWAN SONG – History of land lease communities & official record of annual MH production 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

Have You Heard of the ‘3-3-3 Plan’?

Following information is quoted directly from the February 2025 issue of NEWSMAX magazine (p.6). There one reads of Treasury Secretary Scott Bessent’s trifecta of growth “…to supercharge the (U.S.) economy and bring the Mount Everest-sized debt down to more manageable levels.” Specifically,

1. Increase economic growth to 3% per year for four years

• Cut the budget deficit to 3% of gross domestic product (‘GDP’)

• Raise U.S. energy production by 3 million barrels of oil per day

Now, all it will take is for Congress to cooperate, and these goals will likely be met.

Just thought you’d like to know. I’m certainly encouraged by these goals.

Manufactured Housing’s ‘Watchdog’ Barks at HUD!

In a recent communique, the Manufactured Housing Association for Regulatory Reform (‘MHARR’) encouraged HUD Secretary Scott Turner to thoroughly review ‘fraud & abuse’ of the HUD manufactured housing program, with emphasis on:

1. HUD’s 50 year dependence on the same ‘monitoring’ contractor – despite various corporate names.

• HUD’s bypassing legally-mandated sole source safeguards to continue said contract

• HUD’s use of monitoring contractor to perform inherently governmental functions.

• HUD’s alleged mismanagement of the manufactured housing program via, among other things, manipulation of the statutory Manufactured Housing Consensus Committee (‘MHCC’) and appointments thereto.

• HUD’s alleged consistent favoritism toward the industry’s largest manufacturers.

• HUD’s alleged failure to federally preempt discriminatory zoning exclusion of manufactured housing per existing federal law.

Why is all this important? Because, as MHARR points out in the same communique, “…the manufactured housing industry, in 2024, produced 103,314 new HUD-Code homes.” Yes, worth acclamation, but not much. Why? Because during the first year for which annual MH production data is available, circa 1955, annual ‘mobile home’ production reached 111,900 new units! That’s 8,586 more ‘mobile homes’ than manufactured housing units today! One answer is less regulation on the federal level!

ALERT. Read blog # 837 on 28 March 2025

Most years around this time I’m asked to reflect on and share experiences and lessons learned in combat nearly 60 years ago in the Republic of Vietnam. I recently shared what author Ronald Winter wrote in Victory Betrayed, about my presence and activities during February 1969 in the Ahsau Valley, participating in Operation Dewey Canyon. But ‘what’s to come’ is different. It’s far more personal than having someone else talk about you. My hope is that these reminiscences will be as poignant for you as they are for me. GFA

George Allen

Blog Posting # 833; Copyright 28 February 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, including types of housing finance (e.g. chattel or  ‘home only’ loans & real estate-secured mortgages), describes the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via (317) 881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (Copy of which should be in every land lease community nationwide!), & SWAN SONG – History of land lease communities & official record of annual MH production 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

SEVEN INTERESTING THINGS FOR YOU TO KNOW

What follows here is a potpourri of personal, corporate, association, industry, and property-related views and news that have materialized during the past seven days. Read and ponder, enjoy, use, and plan for your near and interim future!

In response to last week’s blog posting (‘Someone is Always Fiddling With MH’), one veteran land lease community, privately-owned portfolio owner/operator responded: “I don’t mind the use of ‘attainable’ in place of ‘affordable’. If nothing else it reads differently, and sometimes it’s good to shake up the nomenclature. As far as ‘climate resiliency’ goes, we took care of that with the 1994 (?) hurricane zoning reclassifications. Otherwise, I assume the Urban Land Institute (‘ULI’) is located in Washington, DC, and is more of the same old Global Warming ^*x#4& that permeates and oozes from the folk on the left.” (Lightly edited. GFA) Here’s a further recollection about ULI, quoting from SWAN SONG. Are you aware that during year 2004 ULI “…launched the Manufactured Housing Communities Council (‘MHCC’) under the leadership of Randy Rowe, of Hometown America and (eventually) Green Courte Partners renown? This quasi Think Tank contributed to industry and realty asset class interaction and knowledge for 11 years, before being shuttered by ULI.” P.40 Now ULI publishes research reports prepared, generally, by non-MH industry individuals. Oh well…

Here’s your very own personal MH production summary, from year 1955 through 2024:

1955 = 111,900 new ‘mobile homes’; 1973 = 579,940 mobile homes; 1998 = 372,943+/- manufactured homes; 2009 = 48,789+/-; 2021 = 105,772; 2023 = 89,169 & 2024 = 103,314. These historic annual MH production & shipment totals are quoted, again, from SWAN SONG. The ‘+/-‘ designations indicate confusion, those years, between annual totals published by HUD, MHARR, & EducateMHC versus MHI. (Keep this paragraph of rare data for future reference)*1

Here’s an interesting piece of historical MH trivia. California’s WMA, in its’ January 2025 edition of WMA Reporter, describes how that statewide land lease community advocacy association changed its’ name five times since its’ founding in 1945. Here’re the names: “California Motor Court & trailer Park Owners Association, California Trailer Park Association, Western Mobilehome Association, Western Mobilehome Parkowners Associations; and finally, our current incorporated name – Western Manufactured Housing Communities Association (‘WMA’), as of 1999.” How ‘bout that? Nine name changes in 54 years!

Speaking of California news, here’s an update relative to the famous Lido Peninsula land lease community in Newport Beach. This has to do with the latest ‘for sale’ MH listing there: “Home owners continue to see huge equity gains. In this case, over $1,400,000. Even with site rent of over $6,000. Not bad for a community built in 1949 with 26 units per acre.” For those of you ‘not in the know’, Lido Peninsula, right on the California’s Pacific coast, was recreated, so to speak, more than a decade ago when 1940s era 10X40 ‘trailers’ were selling for hundreds of thousands of dollars apiece! A new type two story HUD-Code home was designed and built – having the same footprint as aforementioned ‘trailers’. Once these change-outs were complete, the appearance and utility of the entire property improved dramatically! Why don’t we see two story HUD-Code homes around today? At least two reasons: Having to ship at least two or more ‘modules’ via highway, so homes could fit under interstate overpasses; and, once on site it took much longer to ‘make ready’, mating first and second floor units, then sheathing exteriors of the homes. Lido Peninsula continues to be a ‘must see’ for manufactured housing aficionados.

Mark your calendars NOW. The 2025 SECO Conference will occur 8-10 September 2025, at the Renaissance Waverly Hotel in Atlanta, GA. I believe this is at least the 12^th year for this stellar event – catering to small-to-midsize land lease community owners/operators nationwide, and with community-friendly new HUD-Code homes on display. I plan to attend, how ‘bout you? For more information, google search SECO Conference.

I’ve long wanted to know ‘the rest of the story’ relative to the controversial 2020 Presidential election. Well, finally found a book (actually two) that goes into great detail about what happened before, during, and after that controversial election. Authored by Joe Hoft, Volume I (which I did not read), set the stage for Volume II (The Steal), which I did read, from cover to cover. This is the most detailed, albeit complicated, ‘reads’ I’ve encountered in quite a while. Will defer sharing ‘what happened’, other than to say: Now it all makes sense to me!  I recommend The Steal, Vol II, and hope you read it.

And finally. With good health and parental care, our great grandson Pfc. Hunter Falks and his wife Savanna, will birth their first child this fall. That event will make Carolyn and me ‘great great grandparents’! The last time we had a great great grandparent in our family was when Carolyn’s Mother lived with us for seven years, before passing at 92 years. So, here we go again!

End Note.

1. 1955 = first year for which we have verifiable MH data; 1973 = acme (highest) year MH production; 1998 = 25 years later, a mini-renaissance; 2009 = nadir (lowest) year MH production; 2021 = first year over 100,000 units since 2006; 2023 = production drops below 100,000 units once again; 2024 = production barely eclipses 100,000 unit target.

‘MHIckey’ & ‘MHARRio’

Frankly, I’d long hoped to never need to resurrect these two tongue-in-cheek anonyms*1. First appearing more than two decades ago, ‘MHIckey’ & ‘MHARRio’ were coined to lampoon (via satire) the perennial inability of the Manufactured Housing Institute (‘MHI’) and Manufactured Housing Association for Regulatory Reform (‘MHARR’) to work together for the overall Good of the manufactured housing industry.*2 But here we go again, one national advocacy entity claiming a significant exclusive regulatory victory, but with NO mention whatsoever of like contributions effected by their lobbying counterpart. Here’s the sad tale, quoting from their respective HOUSING ALERT and memorandum, both dated 24 February 2025.

“MHI is pleased to announce a significant victory for the industry: the U.S. Department of Housing and Urban Development’s (HUD) decision to delay the implementation of the Manufactured Home Construction and Safety Standards (MHCSS) 4^th and 5^th Sets final rule until September 15, 2025.” Furthermore, “this extension is the result of MHI’s direct engagement and lobbying efforts: MHI consistently emphasized the need for additional time to ensure a smooth and cost-effective transition for manufacturers, suppliers, retailers and community operators.” Quoted directly from MHI’s HOUSING ALERT dated 24 February 2025.

Now for the ‘rest of the story’. Following lines quoted from MHARR’s memorandum dated 24 February 2025. “…while some in the industry are rushing to claim credit for this extension, a delay was inevitable given the regulatory freeze ordered by President Trump upon taking office. Moreover, MHARR in early communication to President Trump, HUD Secretary-Designate Scott Turner and Department of Energy Secretary-Designate Chris Wright, emphasized the need to delay and withdraw pending regulations and to ensure the full, proper and complete implementation of the industry’s two existing federal laws.”

Summary? Again quoting MHI: “MHI’s efforts, combined with strong engagement from manufacturers and key stakeholders, resulted in a unified industry voice that resulted in this necessary extension, ensuring a more practical and achievable transition period.”

OK, all might have been hunky-dory if, in the previous paragraph, the ‘stakeholders’ were identified. Considering a previous paragraph, they could have assumed to have been ‘manufacturers, suppliers, retailers and community operators’. But how much more effective would this summary have been rendered if MHARR had been inserted and credited as being one of the key stakeholders, a partner with MHI. I think it’s high time our salaried and elected leaders learn how to work together, sharing credit and disdain together as well.

Bottom Line, for me anyway. I so dislike being part of an industry that has long functioned (i.e. since 1985 or 40 years!) in our nation’s capitol via two trade associations, two lobbyists, and two regulatory ‘watchdogs’ – some would say ‘lap dogs’. Think how much more effective we’d be as an industry if we got our act together (i.e. Unify!) 100 percent of the time in shared interest and effort!

End Note.

1. Anonym definition. “Refers to an anonymous person or pseudonym.” Richard Winer, quoted in Collection of Figurative Language & Figures of Speech, PMN Publishing, 2011. Available via EducateMHC.com

• ‘MHIckey’ & ‘MHARRio’ debuted in blog posting #613 (approximately year 2000)

George Allen

Blog Posting # 832; Copyright 21 February 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, with variations of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via (317) 881-3815, email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy of which should be in every land lease community nationwide), & SWAN SONG – 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

SOMEONE IS ALWAYS FIDLING WITH MH

Which, in your mind, is more important as a key factor pursuant to the success (i.e. increased unit production and shipment) of manufactured housing? Increased access to all forms of HUD-Code manufactured housing finance, especially ‘home only’ mortgages, OR, making today’s new homes ‘climate resilient’?

Well, interestingly that second factor, climate resiliency, is the one the renown Urban Land Institute (‘ULI’) focuses on  in its’ Research Report titled ‘Building a Climate-Resilient Manufactured Housing Stock’ (February 2025). This 65 page report is a compelling ‘read’, not only  for the climate resiliency proposed for our type housing, but even more so for what ULI researchers have to say about our industry and realty asset class (i.e. land lease communities, a.k.a. manufactured home communities). For a copy, contact the Urban Land Institute.

In the paragraphs to follow, I’ll mostly quote MH industry-specific excerpts from said report, and leave the use and interpretation thereof, to you.

By way of introduction to MH: “Manufactured homes (‘MH’) are dwelling units built in a factory and transported to a site for installation. Modern-day MHs are built to a single federal building code – the Manufactured Home Construction and Safety Standards (‘MHHCSS’), also known as the HUD code – and to the same standards of quality and durability as other housing types. In fact, MH is the only housing type whose standards for construction, design, and installation preempt state and local building codes. MHs are less expensive than equivalent site-built houses and can be constructed as a faster pace.” (lightly edited. GFA)

And then there’s this: “If manufactured housing is to help address our national housing shortage, it will need to be climate resilient – that is, capable of withstanding the shocks and stresses of our current and future climate.” My response? ‘Who sez?’ Due to lack of easy access to chattel capital, not climate resiliency, the MH industry continues to languish at a pitiful 100,000 units produced and shipped annually – when during decades past, we eclipsed 580,000 during the early 1970s and nearly 400,000 during 1998. Year 2024? Only 103,314 units! Consequence? “MH represents 6 percent of the US housing stock and is home to about 18 million people.” I do not see ‘climate resiliency’ boosting MH production now or in the future.

Furthermore, “Nationally, an estimated 40 percent of MH is in land lease communities known as manufactured home communities, sometimes called mobile home parks. These communities typically lease plots of land (known as ‘pads’)*1 and utility hookups to the owners of MHs. Recent evidence suggests new MH stock continues to be placed in land lease communities at a significant level, 37 percent in 2020 placed therein.” As a related aside, MH placement is concentrated in the Southeast U.S., e.g. Texas, Florida, N. Carolina, then California. (lightly edited. GFA)

Switching focus. “A significant body of research and evidence, including the (33) expert interviews we conducted for this report, point to mobile homes (i.e. pre-HUD Code) as a critical source of climate risk and a top priority for federal, state and local interventions. But how many of these units are there? Using two different methods, we estimate there are 1.24 to 1.35 million mobile homes in the nation’s existing housing stock.”, with California having the largest stock of pre-1976 mobile homes, followed by Florida, then Texas.

Pricing and affordability. “While MH share of newly built affordable housing has been decreasing since 2014, in 2021, nearly all (99.4 percent) new MH were priced below $250,000., compared with a little over a quarter of new site-built homes. During the same period, MHs accounted for virtually all new homes priced under $125,000.” And, “…MH offers a vital pathway to homeownership for households with low and moderate incomes. The income of the average MH buyer stands at $57,000, much lower than the $93,000 for site-built buyers. National analyses show nearly one in five homes purchased by first-time, low-income households, is a MH.”

The challenge. “U.S. is facing a severe housing shortage, analysts estimate the country needs 3.7 million additional home units to meet current demand, and will need to build millions more in the coming decade to keep pace with population growth, replace aging housing stock, and rebuild homes lost to disasters.”

“We conducted a total of 33 interviews with 44 stakeholders actively involved in 1) production of MH, 2)creation of MH-related policies, programs, &/or regulation, 3) creation &/or protection of affordable housing for low-income families…” and  “Interviews with a group of leading manufactured housing experts with a wide range of backgrounds and unique perspectives.” Or so they say. NO HUD-Code housing manufacturers are included in this heady mix, and only the REIT, SUN Communities, represents the interests of all land lease communities. Beyond that, Freddie Mac (but not Fannie Mae), Next Step Network, Lincoln Institute of Land Policy, National MH Owners Association, HUD, and ROC USA are the only other names I recognized. Not as heterogeneous or august a research group, in my opinion, as promised above.

The interviews did uncover a proverbial and perennial MH Achilles Heel. “…HUD sets the minimum standards for MH installation, but states can adopt and enforce additional requirement if they meet or exceed federal guidelines. Thirty-six states have opted to enforce their own installation standards, including anchoring requirements, while HUD administers installation in the remaining 14 states (neither Hawaii nor Washington, DC). The result is a fragmented installation process, and there is little reliable evidence about the quality of installations or performance of installation standards under climate conditions beyond hurricanes and high-wind events.” My opinion? Universal approval and use of George Porter’s innovative and practical Frost Free Foundation system, for safe and secure installation of MHs, continues to be long overdue!

“The consolidation of MH community ownership. “…(‘mom and pop’ parks) have now become a prime target for acquisition by a range of investors, including multistate corporations, real estate investment trusts, and some of the largest private equity and real estate investment firms in the world….(causing) a very large barrier to how we can implement climate resilience….” Once again, the paucity of housing finance trumps climate resiliency!

“The local regulation of MH (i.e. zoning and land planning) limits its potential as climate-resilient housing. And here, NIMBY trumps climate resiliency!*2

Of course there’s much more to this report, and perhaps we’ll cover some in a future blog posting.

End Note.

1. True MH aficionados today refer to these ‘plots’ & ‘pads’ as rental homesites.

• NIMBY = ‘Not in My Back Yard’.

DID YOU KNOW?

The lead or title on the Manufactured Housing Institute’s website reads as follows: ‘Elevating Housing Innovation; Expanding Attainable Homeownership’. Ah finally, we’re purposely distancing ourselves from the ‘Affordable Homeownership’ shibboleth that brought us to this housing dance! Is this a good or bad move on the part of our elected and volunteer national advocacy leadership? What do you think? Please let me know via gfa7156@aol.com

George Allen

Blog Posting # 831; Copyright 14 February 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, with variations of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via (317)881-3815, email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy of which belongs in every land lease community nationwide), & SWAN SONG –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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MH’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

MH Inside Information No One Else Will Tell You!

You likely know manufactured housing is represented by two different national trade entities, the Manufactured Housing Association for Regulatory Reform (‘MHARR’) & Manufactured Housing Institute (‘MHI’). But did you know, during its’ long (70 years) history, the latter advocate has cycled through nearly a dozen salaried leaders; while the former body, founded in 1985 as an offshoot of MHI, has had only two, its’ present CEO, and founder Danny Ghorbani, who’s now retired and is an RV/MH Hall of Fame enshrinee.

But there’s more to know, and much ‘came out’ during the first week in February in a Press Release from MHARR. Its’ title? ‘MHARR Initiates Action with Trump Administration On Major Industry Bottlenecks.’ An interesting but humdrum title. What made this lengthy communique intriguing, were several unsubstantiated premises and position statements. Here we go…

First, “Manufactured housing must be – and must remain – federally-regulated pursuant to uniform standards, uniform enforcement and robust federal preemption which result in cost savings that are passed to homebuyers.” Now, for newbies to the MH business model, this statement is emblematic of the proverbial phrase: ‘When life gives you lemons, make them into lemonade!’ Meaning here, when the federal government foisted a regulatory lemon (i.e. the HUD-Code) on the manufactured housing industry in 1976, over time, MH businessmen and women turned that lemon into marketing lemonade, using its’ uniform standards and federal preemption to sell more homes! But is that still the case today?*2 So, ‘Why must we continue to be federally-regulated?’  Some, if not many, say: ‘Federal regulation appears to be doing little, today, to sell more manufactured homes!’ Perhaps being able to openly market as offsite housing – housing built within factories, might be more attractive to potential home-buyers, especially those not wanting a steel chassis under their new home.

Second. “It is beyond dispute that today’s federally-regulated manufactured homes are the industry’s best homes ever, offering high quality and inherent affordability….” Once again, the question begs answering: What’s driving our housing market? Federal regulation or the quality and inherent affordability of our product? Frankly; neither. It’s the paucity and lack of access to personal property or chattel (a.k.a. ‘home only’ loans) financing for new manufactured homes going directly into land lease communities and sited on vacant rental homesites.

Third. “The industry largely wasted its opportunity during the first Trump Administration to remove the three principal bottlenecks that have impaired the industry’s growth and expansion while simultaneously harming homebuyers.” What were those bottlenecks?

• “Forcing HUD to fully implement the enhanced federal preemption of the 2000 Reform Law to end the discriminatory zoning exclusion of HUD-Regulated manufactured housing from entire communities.”

• “Forcing Fannie Mae and Freddie Mac to serve the dominant manufactured housing personal property consumer financing market in accordance with Duty To Serve (‘DTS’)…” This sentence makes no sense as penned; perhaps rewrite in part:’ Forcing (the GSEs) to dominate the manufactured housing personal property consumer financing market….’

• ‘Eliminating DOE’s draconian, destructive and discriminatory manufactured housing ‘energy conservation’ standards.” No argument here.

The Press Release goes on to criticize MHI for spending the years 2016-2020 “…pursuing speeches, exhibitions, displays and other public relations stunts that ultimately did nothing substantive to change the diminished status quo for (SIC) the industry…a wild goose chase of wasted opportunities.” Dealing with Washington bureaucrats and regulators has to be a constant education process, given attrition, elections, and more. There’s really no way of telling how much good the MHI-hosted ‘Homes on the Mall’ did for our industry, but it needed to be done.

In another premise, the writer decries ‘ceding market share to other types of construction.’ Just what is manufactured housing’s ‘market share’ in today’s overall housing market? Frankly, no one really knows! Why? Because manufactured housing, modular, panelized & Park Model RVs are not included in the U.S. Census Bureau’s monthly total of residential single-family, site-built housing starts (because most MHs are not permanently sited on scattered building sites conveyed fee simple, and no one tracks the other types of offsite construction). It is this writer’s contention that the total housing market starts in the U.S. should include residential single-family, site-built housing, HUD-Code manufactured housing, modular & panelized (i.e. pre-fab) housing, as well as Park Model RVs. Until that happens we will not be able to accurately calculate what percentage of the national housing market truly belongs to HUD-Code manufactured homes.*3

The most outspoken recommendation in this Press Release has to do with the contractor used by HUD to supervise the manufactured housing program. Here goes: “….MHARR…calls for strong HUD action to remedy endemic (*1) mismanagement of the HUD manufactured housing program, including its unprecedented, destructive and inexcusable dependence on an entrenched ‘monitoring’ contractor which has held a de facto sole-source contract for 50 years without any of the legal safeguards normally required for non-competitive federal contracts.” Whew! Aside from wordiness, this commentary does raise this strong and valid point: Why no change in monitoring contractors, where manufactured housing is concerned, over 50 years?

Another bugaboo appears to be “…last-minute (a.k.a. ‘midnight’) Biden Administration appointments to the statutory Manufactured Housing Consensus Committee (‘MHCC’).These appointments, announced four days before the inauguration of President Trump, continue HUD’s tactic – since at least the Obama Administration – of undermining the independence of the MHCC by manipulating MHCC membership…” e.g. refusing representation for smaller, independent producers of manufactured housing. It’d be interesting to learn the names of these last minute appointees, to ascertain ability to perform, experience in MH, and political persuasion. MHCC has, in my opinion, long been a political quagmire. For example, I’ve tried since 1980 (i.e. 45 years!) to be named to this august body, and its’ predecessor the Manufactured Housing Advisory Council (‘MHAC’), all to no avail.

There’s more, to be sure. But I wanted to give you a hefty taste of what goes on ‘behind the scenes’ where the regulation of HUD-Code manufactured housing is concerned. Once again, if you have information or opinions on these matters and are willing to communicate them to me, please do so via gfa7156@aol.com

End Notes.

1. endemic. ‘peculiar to a location or a people’

• 1976 = 246,120+/- new HUD-Code homes produces, compared to 2024 with but 103,314 new homes produced and shipped (per IBTS data)

• Given 1,588,404 ‘total U.S. housing starts’ in 2024 (including onsite & offsite housing types), divided by 103,314 new HUD-Code homes produced during 2024, estimated national market share for manufactured housing is 6.5% (i.e. .065)

Official Historical Record Available to You for Free!

As some of you already know, I recently updated the ‘Official Historical Record of HUD-Code Manufactured Housing Production’, the seminal document featured in the industry text, SWAN SONG. Now this official record extends from 1955 through year 2024 (i.e. 69 years). Here’s how the first and final data entries read:

1955 = 111,900 new mobile homes produced & shipped

2024 = 103,314 new HUD-Code manufactured homes produced & shipped

Boy, at first glance it does not appear we’ve made any production progress during the past seven decades, but that’s not the whole story. To learn more, request a FREE electronic copy of this document via gfa7156@aol.com  Between the 69 annual performance entries and 27 historical footnotes, you’ll read quite the story!  GFA

George Allen

Blog Posting # 830; Copyright 7 February 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction).Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and with variations of housing finance (e.g. chattel or ‘home only’ loans & real estate secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via 9317) 881-3815l email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy of which should be in every land lease community nationwide), & SWAN SONG – 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrine, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

‘TOTAL U.S. HOUSING STARTS’ IN DECEMBER 2024

This Total U.S. Housing Starts report, unlike the U.S. Census Bureau’s Monthly New Residential Construction Report of ‘new single-family, site-built, privately-owned housing starts’ INCLUDES offsite construction (a.k.a. factory-built) units such as HUD-Code manufactured housing, modular & panelized (or ‘prefab’) housing, and Park Model RVs!*1

Here’s the basic data. In December, the U.S. Census Bureau’s Monthly New Residential Construction Report estimated 1,499,000 seasonally-adjusted privately-owned new housing starts for the year 2024, or 124,916 during the month of December alone. However, when 11,060 offsite construction units are added to that U.S. Census Bureau total, it increases it to 135,976 for the month of December, and when annualized, results in Total U.S. Housing Starts during year 2024, calculated to be 1,631,712 seasonally-adjusted privately-owned new housing starts.

Bottom line? Without including offsite construction in its’ monthly report of new housing starts, the U.S. Census Bureau routinely underestimates annual U.S. housing starts, in this case, by 132,712 units! So, which ‘total’ are you inclined to want to reference going forward? U.S. Census Bureau’s 1,499,000 new housing starts or, including offsite construction, 1,631,712?

What follows here are descriptions of offsite construction housing (again, a.k.a. factory-built housing) types, and how they’re calculated for inclusion in this ‘Total U.S. Housing Starts’ report.

HUD-Code manufactured housing, when installed on permanent foundations on scattered building sites conveyed fee simple, are identified as ‘single-family, site-built housing’. Manufactured housing not permanently installed, is oft sited in land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) on vacant rental homesites – though in some instances, said sites are conveyed fee simple in subdivisions like Stardust Hills in Cloverdale, IN. So, one way or the other, all types of manufactured housing are included in this ‘Total U.S. Housing Starts’ report. Where does HUD-Code manufactured housing production & shipment data originate? Monthly, via the Institute for Building Technology & Safety (‘IBTS’), on a subscription basis.*2 Annual production & shipment’ totals are not published by IBTS, but calculated and referenced by the Manufactured Housing Institute (‘MHI’), Manufactured Housing Association for Regulatory Reform (‘MHARR’), and EducateMHC.

Unfortunately, the annual production & shipment totals reported by these manufactured housing advocacy entities rarely agree! Here’s how the 2024 December and year end production & shipment totals have been recently reported:

IBTS                 7,078 MHs produced & shipped during December 2024; no annual total given

MHI                 7,048 MH shipments in December                 103,571 MH shipments during 2024

MHARR           7,078 MHs produced in December                103,314 MH produced during 2024

EducateMHC  7,078 MHs produced in December                103,314 MH produced during 2024

For record-keeping purposes, relative to this (December) ‘Total U.S. Housing Starts’ report, we’ll be featuring the 7,078 and 103,314 HUD-code housing totals in the next edition of the manufactured housing industry’s historical record: SWAN SONG, available for purchase via www.educatemhc.com

Then there is modular & panelized (‘prefab’) housing, two more types of offsite construction (again, a.k.a. factory-built housing), neither tracked by anyone! Why? Offsite construction units like these are built to local building codes (e.g. International Code Council or ICC), so are nearly impossible to research and categorize. However, some housing professionals suggest this formula: 2% of seasonally-adjusted annual housing starts, per U.S. Census Bureau reporting, then reduce to a monthly figure (e.g.1,499,000 X .02, divided by 12 months) = 2,498 modular & panelized units fabricated during December 2024.

Park Model RVs (‘recreational vehicles’) production is tracked and reported monthly by the Recreational Vehicle Industry Association (‘RVIA’) via their online publication RVIA News (e.g. 273 Park Model RVs produced during December 2024). Why Park Model RVs? An increasing number of Park Model RVs are being used as permanent housing, particularly in Sunbelt regions of the U.S. And it appears some HUD-Code housing manufacturers are routinely fabricating Park Model RVs, some even in compliance with the HUD-Code, blurring the lines between these two types of offsite construction.

Now to pull the four pieces together (i.e. ‘single-family, site-built housing’, and three types of offsite construction or factory-built housing), beginning with the latter category – all during December 2024:

• HUD-Code manufactured housing unit production/shipments        7,078
• Modular & panelized (‘prefab’) formulaic estimate (2%/12)            2,498
• Park Model RVs produced                                                                      273
• Offsite construction subtotal for December 2024                             9,849

• U.S. Census Bureau site-built housing ‘starts’ during December   124,916
• (+) Offsite construction subtotal for December 2024                       + 9,849
• Grand total of all U.S. Housing Starts during December 2024        134,765
• (-) 2498 Modular & panelized units, to offset double count           132,267

Bottom Line: True ‘Total U.S. Housing Starts’ during December 2024  =  132,367

End Notes.

1. Offsite construction. ‘Refers to the planning, design, manufacture, and assembly of building elements at a location different from their final location, to support the rapid spread of and efficient construction of a permanent structure.’ Wikipedia

• Production & Shipment totals of MHs by IBTS are usually mirror totals in the institute’s monthly reports to subscribers.

STOCK MARKET REPORT FOR 3 FEBRUARY 2025*1

BRK-A                          Berkshire Hathaway, Inc. (Clayton Homes)                           $697

SKY                              Skyline Champion Corporation                                              $92.09

CVCO                           Cavco Industries, Inc.                                                             $520.80

LEGH                           Legacy Housing Corporation                                                  $25.65

NOBH                          Nobility Homes                                                                       $30.00

ELS                               Equity Lifestyle, Inc.                                                                $65.76

SUI                               Sun Communities, Inc.                                                           $127.18

UMH                           UMH Properties, Inc.                                                              $18.05

TSC                              Flagship Communities, Inc.                                                    $20.84

MHPC                          Manufactured Housing Properties, Inc.                                 $.62

Manufactured housing/land lease community Composite Stock Index (‘CSI’) @ 3 February 2025 = $1,000.00; up from $929, and still well above the $790.07 base established in January 2022.

End Note.

1. Five manufactured housing manufacturers and five portfolio land lease community owners/operators

CORRECTION

Last week we introduced you to the RV/MH Hall of Fame Class of 2025, but inadvertently omitted one name and spelled another incorrectly. SO, here’s an accurate list of the manufactured housing/land lease community members of this Class of 2025 enshrinees:

Mark Rukar. Longtime independent (street) MHRetailer and owner/operator of several land lease communities in Michigan.*1

Bill Poynter. Manufacturer/MHRetailer with Guerdon Industries in Lexington, KY

Kurt Kelley. Insurance executive and founder of Mobile Insurance, also publisher of Manufactured Housing Review online newsletter, in Spring, TX.

Nelson Steiner. Veteran landlease community portfolio owner/operator, founder of Steiner Communities in Tampa, FL.

Steven Schaub. Senior executive of YES! Communities in Denver, CO., a longtime portfolio community owner/operator of land lease communities throughout the U.S.

Why not use this CORRECTION notice as a motivating reminder to buy your banquet tickets now, to attend the RV/MH Hall of Fame Induction Ceremony on 18 August 2025. You’ll be dining with more than 500 of your peers from the MH & RV industries at the beautiful RV/MH Hall of Fame museum and library facility in Elkhart, IN. Contact via (574)293-2344 or via website online. I certainly plan to be present to enjoy meeting many many friends in our unique business environments. GFA

End Note.

1. Are these three trade terms unfamiliar to you? Well, the ‘independent (street) MHRetailer’ moniker was coined by longtime Iowa-based MH/RV industry consultant William Carr. And the ‘owner/operator’ label originated with David Helfand, past senior executive with ELS & ARC REITs. And the ‘land lease community’ moniker is fairly common parlance today, originating around year 2010.

George Allen

Blog Posting # 829; Copyright 1 February 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, along with a couple types of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH Historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via (317) 881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy of which should be in every land lease community nationwide), & SWAN SONG – 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institutes (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

RV/MH HALL OF FAME’S MH CLASS OF 2025

This time every year RV & MH aficionados anxiously wait to see who will be selected for induction into the prestigious RV/MH Hall of Fame in Elkhart, IN.  Well, here’s the list of manufactured housing pioneers and business leaders who’ll be enshrined Monday evening, August 18^th, 2025:

Bill Poynter. Manufacturer/MHRetailer with Guerdon Industries in Lexington, KY

Kurt Kelly.  Insurance executive with American Insurance Alliance, & publisher of Manufactured Housing Review online newsletter, in Spring, TX.

Nelson Steiner. Portfolio community owner/operator, founder of Steiner Communities in Tampa, FL.

Steven Schaub. Portfolio community owner/operator, with YES! Communities in Denver, CO. Successor to Gary McDaniel, who was inducted in 2014.

I encourage you to plan now to attend this gala affair in mid-August. Always more than 500 people present. And, besides the five individuals identified above, there’ll be five more who’ll be inducted from the RV industry. For more information visit RV/MH Hall of Fame website or phone (547)293-2344.

On another RV/MH Hall of Fame matter. Were you at the recent Louisville MHShow, during early January? If so, you noticed the half dozen or so individuals wearing bright green blazers during the first day of the show. These were all RV/MH Hall of Fame enshrinees, and the purpose of wearing their distinctive green RV/MH blazers was to increase awareness of this individual legacy honor for the RV & MH industries.

HERE WE GO AGAIN!

Quoting from SWAN SONG (History of land lease communities*1), page 30: “The year 1998 was truly pivotal for the HUD-Code manufactured housing industry! That year 372,843+/- new homes were shipped from factories to throughout the nation.” But “… home manufacturers (began) saturating local housing markets, with more ‘Big Box = Bix Bucks!’ homes than said markets could bear” leading to finance abuses affecting the industry to this day. So, “…predatory lending practices led to the industry’s loss of easy access to chattel capital from independent third party lenders.” For example, this mantra was popular: “We have no down (payment), no job, no problem (housing) deals for you!” Just how bad did get at the dawn of the century? Read ‘Upside Down in a Mobile Home Park’, circa 2000, Figure G in this text.

Fast forward to year 2025. What’s changed? Well, while we await year end MH production total for 2024, (Industry shipped only 89,169 new homes in 2023, but 100,000 are expected for year 2024), and continue our search for more ‘home only’ loans for manufactured homes sited in land lease communities, federal regulation once again rears its’ head. How so? Without naming the firm, here’s how the Consumer Financial Protection Bureau (‘CFPB’) recently (1/10/25) lambasted the manufactured housing industry for ‘setting borrowers up to fail in manufactured home loans’.

And how did all that happen? The CFPB cites three major ways:

“Manipulated lending standards when borrowers did not make sufficient income”. Here the firm “disregarded evidence borrowers did not have sufficient income or assets to pay their mortgage and cover recurring obligations and basic living expenses, like food and health care.”

“Fabricated unrealistic estimates of living expenses.” Here the firm used “artificially low estimates of living expenses that made no adjustment for higher expenses in different geographic areas. These families were left with little or no buffer to cover unexpected expenses.”

“Made loans to borrowers it projected could not pay.” Finally, the firm “made loans to borrowers who, even under the company’s overly-optimistic estimates, did not have enough income to cover the mortgage and basic living expenses.”

It is important to note here, only one independent MH finance firm is being challenged at this time. Hopefully there will be no further revelations.

In summary, it appears some of the same nefarious lending practices used in 1998-2000, to keep new MH production at 372,943+/- per year, are allegedly being used again today when we’re below 100,000 new manufactured homes produced per year. No wonder our industry – and realty asset class component; ballyhooed on one hand as this nation’s most affordable type housing, continues to suffer from a perennial poor reputation and image-tarnishing practices like those just described, as well as unduly escalating rental homesite rate hikes, and continuing sad lack of professional property management! If we want to experience another renaissance for manufactured housing production and land lease community lifestyle popularity, we know where we must improve performance – and sooner the better! GFA

Postscript. Does anyone in the manufactured housing industry and throughout the land lease community realty asset class see, as I do, the ongoing need for better national and regional leadership – both volunteer and paid, to step forward and challenge everyone in these two business models to get their act together and treat our customers and residents as fellow stakeholders? Right now, the only criticisms and pleas for market improvement come from online ‘influencers’, an occasional trade publication editorial, and a few pundits (i.e. ‘learned men & women’). We need to hear and see more leadership from our national and state industry and asset class advocates! For example, is this matter even on the agenda of at MHI’s upcoming winter meeting? I don’t know, as I’ve not been invited to attend and speak these issues.

Your thoughts on these timely – and some would say self-defeating, trade practices? Let me know via agfa7156@aol.com Your responses are kept confidential unless you indicate otherwise.

End Note.

1. SWAN SONG is available for purchase via www.educatemhc.com

George Allen

Blog Posting # 828; Copyright 24 January 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (a.k.a. offsite construction_. Land lease communities (a.k.a.) manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, along with various types of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC vis (317) 881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy of which should be in every land lease community nationwide), & SWAN SONG – 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 freelance consulting & authoring 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (“MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

LOUISVILLE MHSHOW RETROSPECTIVE

Ok, this was the biggest, coldest, best Louisville MHShow ever! The homes exhibit area was large enough to imagine walking through a luxury land lease community anywhere in the U.S. And the home designs, inside and out, were impressive (e.g. interiors featured textured and wood accents on walls, even wood shelving in closets). Supplier exhibiters were everywhere, or so it seemed – even several toters (a.k.a. transporters) or primary haulers. Everyone from OEM (original equipment manufacturers) to aftermarket suppliers of products and services was represented. Public educational and information-sharing sessions were more often packed to capacity than not. And finally, enough food vendor trucks to supply show attendees well!

With that said, here’s how one industry veteran businessman and show attendee summed up his experience at this year’s MHShow:

“I was encouraged to see more homes at the Louisville Show designed for the community market. There also seemed to be more ‘buzz’ about the community segment of the industry. A year or two ago there was NO talk whatsoever about new raw land development. Nowadays I’m hearing more and more. Perhaps (hopefully!) some of the old dysfunctional ‘trailer parks’ will go the redevelopment route and more attention will go to filling all communities. Another trend I noticed at the Show was the number of next generation community owners/operators getting into the business. I also HOPE I accurately perceived apprehension on the part of newbies about paying the dumb, outrageously high prices for communities that brokers and sellers have been promoting for several years.” (Lightly edited. GFA)

My further comments here confirm what you just read, and take matters a step or two forward:

Small homes, large homes, homes with many windows and front-loaded porches. Every one of these would be an attractive addition to any community with a vacant rental homesite large enough for installation. This underscores SECO’s (a supplier booth presence) MH2X project, whose goal is to encourage community owners/operators to ‘buy more new homes’ and see the industry’s annual new HUD-Code housing production total double by year end 2025. This means growing from 100,000+/- in 2024 (total isn’t official yet), to nigh 200,000 in 2025. How?*1

And yes, for the first time in years there were several firms represented who specialize in new community design and construction, as well as redevelopment. The only thing that bothers me about this renewed interest is that there hasn’t been a new text describing HOW TO develop new land lease communities since J. Wiley & Sons 1992 classic, Development, Marketing & Operation of Manufactured Home Communities. Used editions sometimes available online.

Years ago I penned a feature article for Manufactured Home Merchandiser magazine identifying dozens of families well into their second and third generations (one in its’ fifth) of ownership. Perhaps it’s time to revisit that phenomenon. Just think: Zeman, Landy, Partrich, Casenhiser, Fannon, Leichtman, Voss, Vukovich, Hames, Follett, Young, Steiner, Cohron, Newby, Shouhayib, Thomas, Scoular, Farren, and Blank, to name a few.

It’s about time common sense returns to valuing land lease communities. For too long, land lease community owners have been greedy selling their income-producing properties. Let me tell you about individuals who went this route while emotionally attached to their holdings – the personal consequences were seldom pleasant. And realty brokers/lenders facilitating overvaluing; they’ve turned this real estate asset class on its’ ear, and we’re now subject to all sorts of landlord-tenant legislation from coast to coast. Time to return to the old IRV formula!

If you missed this year’s MHShow you missed a very good one. Plan now to attend during January 2026.

End Note.

1. Via attending the SECO Conference in Atlanta, 8-10 September; participating in a daylong MH2X ‘HOW TO’ conference; and, using SECO’s exciting ShowSearch telephone application = ‘a new digital means of identifying factory sources of new HUD-Code homes nearby one’s community.’ Visit secoconference.com

New York City’s Big Ideas for Lowering Housing Costs

Last Sunday’s edition of the NEW YORK TIMES newspaper showcased this headlined feature:

BIG IDEAS FOR LOWERING NEW YORK CITY’S SKY-HIGH COST OF LIVING (Eliza Shapiro). Amongst the ideas were a few that just might be fare for HUD-Code manufactured homes and other forms of factory-built housing, a.k.a. offsite construction.

CONSTRUCT AFFORDABLE HOUSING ON PUBLIC HOUSING PARKING LOTS…Here quoting Rev. David Brawley, pastor of a church in Brooklyn. “We’ve identified New York City Housing Authority parking lots that could create about 15,000 homes for seniors.” This way, seniors moving out of NYCHA developments into these new homes would free up public housing for families on NYCHA waiting lists. Anyone in New York City paying attention?

ALLOW HOUSING IN BACKYARDS. “Homeowners should be able to allow their adult children to erect a foldable, tiny home in their backyards with a simple permit.” This has already become lawful and a commonplace practice in the state of California, but small footprint HUD-Code manufactured housing would be much more commodious than ‘foldable tiny homes.”

FIND SPACE FOR 12,000 NEW APARTMENTS THAT ARE ACTUALLY AFFORDABLE…”Trickle-down housing policies do not work, and so the city should invest in building at least 12,000 new units of deeply-subsidized affordable housing per year for five years, with half of those units targeted specifically for homeless households and half for extremely low-income households.” Again, small footprint HUD-Code manufactured homes would easily meet this affordability challenge!

USE MODULAR CONSTRUCITON TO HELP BUILD ALL OF IT. “Minneapolis and other cities are using modular construction to reduce costs and speed up timelines in affordable housing construction.” Yes, that’s indeed the case with HUD-Code manufactured homes, modular and panelized units, as well as possibly with Park Model RVs and ADUs (accessory dwelling units) such as customized steel shipping trailers, even sophisticated sheds.

MAKE IT ILLEGAL TO CHARGE MORE THAN 30 PERCENT OF HUEHOLD INCOME FOR RENT. Once again ‘rent control’ raises its’ progress destructive head. So much of this argument is hopelessly confused by what constitutes one’s gross and or net income, and just what household expenses to include in the equation.

These were just some of the interesting suggestions offered by the author of this idea list.

MEI Replaces DEI

Well there’s a new ‘sheriff’ in town. Donald Trump returned to the U.S. presidency on 20 January 2025 and took less than a day of ‘shock & awe’ to neuter many of his predecessor’s liberal policies and $-wasting directives. Probably chief among these changes was the official death of cultural and employment DEI (Diversity, Equity, Inclusion). So, what fills the void? Simply, MEI, short for Merit, Excellence, & Innovation. Nuff said.

Oh, the next day on Facebook, I saw a sign that ‘says it all’, where former president Biden’s family and friend pardons are concerned:

INNOCENT PROPLE DON’T NEED PARDONS!

George Allen

Blog Posting # 827; Copyright 17 January 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing (i.e. a type of offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH; and, along with various forms of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), characterize the post-production segment of MH.

EducateMHC is the official MH historian, trade term & tend tracker, as well as perennial information source. Contact EducateMHC via (317) 881-3815; email: gfa7156@aol.com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy should be in every land lease community office nationwide!) & SWAN SONG – 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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (”MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

INDUSTRY ‘WATCHDOG’ BARKS AGAIN!

If you weren’t aware the manufactured housing industry has a regulatory ‘watchdog’ alive and well, working on its’ behalf in Washington, DC., you haven’t been paying attention! The Manufactured Housing Association for Regulatory Reform (‘MHARR’), a 1985 spinoff from the Manufactured Housing Institute (‘MHI’), routinely and faithfully represents the regulatory-related interests of regional, independent HUD-Code manufactured housing producers.

What follows here are excerpts from a recent communique by MHARR titled: ‘TRUMP 2.0 – THE INDUSTRY’S SECOND CHANCE’, January 2025, penned by association executive Mark Weiss.

Following a detailed review of what the writer called ‘Trump 1.0’; a recitation of failed attempts to revitalize manufactured housing, MHARR offers this summary: “…at the conclusion of Trump 1.0, the industry remained in the crosshairs of a still-dangerous DOE energy standards directive, nothing of substance regarding the HUD program, and its preemptive regulatory authority, had changed, (as) localities were still targeting manufactured homes and manufactured homeowners with discriminatory and exclusionary zoning, and DTS remained an unfulfilled promise with absolutely no support forthcoming for the vast bulk of the manufactured housing consumer financing market….”*1 (Lightly edited. GFA)

With that said, MHARR challenges the manufactured housing industry to encourage Trump 2.0, “as a second Trump presidential term (begins), with a renewed and even more vigorous emphasis on regulatory reform and  availability of affordable housing being two of the central features of that impending administration…” And how “…the entire industry should be focused on tackling, addressing and, most importantly, resolving and remedying, once and for all, the three principal bottlenecks (identified) by MHARR in a May 2, 2024 News Release…” Those three bottlenecks being:

• Destructive and discriminatory DOE energy regulation

• Discriminatory and exclusionary state and local zoning laws; and

• Non-implementation of the DTS mandate with respect to manufactured housing personal property consumer loans.

If you want to learn more about these three bottlenecks, and you really should, reach out to MHARR via (202) 783-4087

Here’s how this MH trade advocacy entity ends this multipage challenge to the manufactured housing industry:

“…a second Trump presidential term provides the industry with a remarkable second chance! A second chance to clear away unnecessary and debilitating regulation. A second chance to eliminate (or significantly reduce) the discriminatory and exclusionary zoning edicts that have wrongly restricted its’ availability , a second chance to demand – and push through to fruition – much needed federal secondary market and securitization support of the vast bulk of manufactured home consumer chattel loans in accordance with DTS.”

End Note.

• DTS = Duty to Serve. A congressional mandate for Government Sponsored Enterprises (‘GSE’) Fannie Mae & Freddie Mac to better serve underserved housing initiatives

George Allen

Blog Posting # 826; Copyright 10 January 2025. EducateMHC

Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable –attainable, factory-built housing (a.k.a. offsite construction). Land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (CRE’) component of MH; and, along with various forms of housing finance (e.g. chattel or ‘home only’ loans & real estate-secured mortgages), describe the post-production segment of MH.

EducateMHC is the official MH historian, trade term & trend tracker, as well as perennial information source. Contact EducateMHC via (317) 881-3815; email gfa71562@ao..com, and www.educatemhc.com, to purchase Community Management in the Manufactured Housing Industry (A copy should be in every land lease community office nationwide!), & SWAN SONG –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 freelance consulting and authoring of 30 nonfiction texts.

George Allen is the sole emeritus member of the Manufactured Housing Institute (‘MHI’), a founding member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, as well as Allen Legacy columnist and editor at large for MHInsider magazine.

‘TOTAL U.S. HOUSING STARTS’ IN NOVEMBER 2024

Yes, you read that correctly. I’ve thoughtfully changed the heretofore ‘Whole U.S. Housing Story’ to ‘Total U.S. Housing Starts’, per reporting month – this time November 2024. Why? Because, unlike the U.S. Census Bureau’s Monthly New Residential Construction report of only the volume of new single-family, site-built housing starts, this ‘Total U.S. Housing Starts’ also includes offsite construction housing types (Some say factory-built) that includes HUD-Code manufactured housing, modular & panelized (or ‘prefab’) housing, and Park Model RVs!*1

For example, the U.S. Census Bureau’s Monthly New Residential Construction reports 1,289,000 annualized new housing starts during November 2024, or approximately 107,416 for the month alone. But the  ‘Total U.S. Housing Starts’ report, building on this Census Bureau data, estimates a grand total of 116,329 new housing starts during November, an addition of 8,913 units! Now that’s the whole housing starts story! Report methodology described in paragraphs following.

Here’re detailed descriptions of the offsite construction housing types (a.k.a. factory-built housing) cited in this ‘Total U.S. Housing Starts’ report:

HUD-Code manufactured housing, when installed on permanent foundations on building sites conveyed fee simple, are also identified as ‘single-family, site-built housing’. Manufactured housing not permanently installed, is oft sited in land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) on rental homesites – though, in some instances said sites are conveyed fee simple (e.g. Stardust Hills in Cloverdale, IN.). All types are included in the ‘Total U.S. Housing Starts’ report. Where does HUD-Code housing production data originate? With the Institute for Building Technology & Safety (‘IBTS’), on a subscription basis. IBTS reports monthly data, then the Manufactured Housing Institute (‘MHI’) and Manufactured Housing Association for Regulatory Reform (‘MHARR’), after reporting monthly data, publish an annual total, e.g. 89,169 new HUD-Code homes during year 2023. The sole published compilation of annual MH production figures, going back to 1955, is featured in the SWAN SONG text, available for purchase via www.educatemhc.com

Then there’re modular & panelized (‘prefab’) housing, two more types of offsite construction (again, a.k.a. factory-built housing), neither tracked by anyone! Why? Offsite construction units are built to local building codes (e.g. International Code Council or ICC), so are nearly impossible to research accurately. However, some housing professionals suggest this formula: 2% of seasonally-adjusted annual housing starts, per U.S. Census Bureau reporting, then reduce to a monthly figure, e.g. 1,289,000 ‘starts’ X .02%, then divided by 12 months = 2149 estimated volume of modular and panelized units fabricated during November 2024.

Park Model RVs (‘recreational vehicle’) production is tracked and reported monthly by the Recreational Vehicle Industry Association (‘RVIA’) via their online publication RVIA News (e.g. 315 Park Model RVs produced during November 2024). Or, simply ‘google’ Park Model RV production. This category of offsite construction is included because an increasing number of Park Model RVs are being used as permanent housing, particularly in Sunbelt regions of the U.S. And reportedly, some HUD-Code housing manufacturers, while routinely producing Park Model RVs in the past, are now fabricating some in accords with the HUD-Code.

Now pull the four pieces together (i.e. ‘single-family, site-built housing’, and the three types of offsite construction or factory-built housing), beginning with the latter category:

• HUD-Code manufactured housing unit production during November 2024:  8,597
• Modular & panelized 9’prefab’) units estimated for November 2024:             2,148
• Park Model RVs produced during November 2024:                                           + 315
• Offsite construction subtotal for November 2024:                                        11,060

• U.S. Census Bureau site-built housing ‘starts’ during November 2024:        107,417
• (+) Offsite construction subtotal for November 2024:                                   + 11,060
• Grand total of all U.S. Housing Starts during November 2024:                      118,477
• (-) 2148 Modular & panelized units, to offset a double count of 2148          116,329

Bottom Line: True total U.S. Housing Starts during November 2024 is 116,329 new homes!

End Note.

1. Offsite construction. ‘Refers to the planning, design, manufacture, and assembly of building elements at a location different from their final location, to support the rapid spread of and efficient construction of a permanent structure.’ Wikipedia

Manufactured Housing Production @ November 2024

IBTS reports 8,597 new HUD-Code homes produced during November 2024, down from 10,283 produced the month before.

Year To Date (‘YTD’) production? As of November 2024, 96,236 new homes produced compared to 82,809 during November 2023. Well on the way to eclipsing 100,000 new homes by year end!

Production value? Again, based on the decades old ‘per unit’ value factor of $43,126/unit, November 2024 production is worth $370 million, and YTD $4.15 billion. Interestingly, if the MH industry does eclipse 100,000 units by year end, the production value alone will be $4.3+ billion. But there may be more to this story. Doesn’t anyone else find it curious that the originators of this value factor (i.e. $43,126/MH) eschew (‘shun’) updating it? For example, if the ‘per MH’ value today is closer to $70,000/unit, then this year’s production value would be $7 billion, a far sight higher than expected now! Methinks the ‘powers that be’ appear intent on understating our industry’s value to the national economy (Why?), rather than showing legislators and regulators how valuable we are. And don’t forget; this has only been about ‘production value’. What happens when we factor in retail value, rental homesite dollar volume, and more? Your input on this mysterious, self-demeaning matter? Gfa7156@aol.com

Stock Market Report for 6 January 2025

BRK-A                          Berkshire Hathaway, Inc. (Clayton Homes)                           $681

SKY                              Skyline Champion Corporation                                              $89.60

CVCO                           Cavco Industries                                                                     $451.13

LEGH                           Legacy Housing Corporation                                                  $23.50

NOBH                          Nobility Homes                                                                       $33.00

ELS, Inc.                       Equity Lifestyle                                                                       $66.72

SUI, Inc.                       Sun Communities                                                                   $124.53

UMH, Inc.                    UMH Properties                                                                     $18.66

Flagship Communities                                                            $21.42

MHPC, Inc.                  Manufactured Housing Properties                                        $.62

Manufactured Housing/land lease community Composite Stock Index (‘CSI’) on January 2025 was $929. Down from $995 in December, but well above the base of $790 established in January 2022.

ONE FINAL REMINDER!

The RV/MH Hall of Fame requests all inductees/enshrinees wear their bright green blazers on 15 January 2025, to the Louisville MHShow in Louisville, KY. And continue to wear the blazers that evening at the gala social event. See you there!

George Allen