Blog Posting #759, Copyright 15 September 2023. EducateMHC
Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815, email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955 and my autobiography, From SmittyAlpha6 to MHMavaen – describe combat adventures in Vietnam, and a 45 year business career in MH and community ownership/management.
George Allen, CPM®Emeritus, MHM®Master, Emeritus member of Manufactured Housing Institute (‘MHI’), RV/MH Hall of Fame enshrine, retired lieutenant colonel of U.S. Marines, and author/editor of 20 books re MH, communities, business & management wisdom, and prayer.
SECO DELIVERS!
More than 500 land lease community owners/operators, would be investors, service and parts suppliers, and HUD-Code housing manufacturers were present in Atlanta, GA., this week to attend the 12th SECO Conference, and tour four new HUD-Code homes! What follows is not an event by event recitation of what occurred during Monday, Tuesday & Wednesday, but rather a potpourri collection of observations and lessons learned at this annual seminal conference.
Monday, besides being Manager Monday, commemorated the 22nd anniversary of ‘911’ – that tragic day in U.S. history when our homeland was attacked, in New York City, Washington, DC. and rural Pennsylvania, by terrorists in hijacked commercial airliners. SECO organizers arranged for two combat veterans, of the Iraq and Afghanistan conflicts, to be keynote speakers, opening this year’s event.
Following audience recitation of the pledge of allegiance to the American flag, Scott A. Huesing, a retired USMC major, shared his combat leadership experiences. For Scott’s exciting story, read ‘Echo in Ramadi’, a firsthand story of U.S. Marines battles in Iraq’s Deadliest City. Then, Scott Mann, retired USA Lt. Col., shared his heart-stirring experiences arranging the emergency evacuation of a highly respected Afghan commando and his family from that country. Scott’s book, ‘Operation Pineapple Express’, details what he and his eclectic group of veterans did to make this happen. Both books are available for purchase, in print & Kindle versions, from amazon.com
As far as ‘industry news’ is concerned, the first stirring public announcement had to do with CAVCO Industries’ stated intent to encourage more direct new home sales with land lease community owners/operators nationwide. To this end the firm has launched a new branding campaign under the name of CAVCO Communities, spearheaded by former Fleetwood Sales executive Steve Quick.
So, what are the ‘hot topics’ these days, relative to manufactured housing and land lease communities? While not on the formal SECO agenda per se, there was nary a group conversation where the following three matters didn’t receive lively comment and discussion:
- The recent Class Action Complaint – Jury Trial Demanded, filed in U.S. District court, northern district of Illinois. Here, homeowners/site lessees, as plaintiffs, have filed this class action complaint to recover treble damages, injunctive relief, and other relief, from no fewer than ten defendants – all well-known firms in the industry and real estate asset class. Nature of the action? Alleged actions by the defendants to “…fix, raise, maintain, and/or stabilize manufactured home lot rental prices.” General voiced attitude? This would not have happened if land lease communities were far better represented, and said matters addressed, in quasi-public fashion well before getting to this point. Now that ‘the horse is out of the barn’, our businessmen and women will have to deal with the consequences. Hope this is a ‘wake-up call’ for national advocacy bodies!
- While no Class Action Complaint to date, or known anti-trust actions by governmental agencies, the factory-built housing manufacturer sector of the industry might be suspect for conspiring to fix, raise, maintain, and/or stabilize manufactured housing pricing on new units produced and shipped. Appears that no sooner does one manufacturer announce price adjustments to customers, than other manufacturers follow suit. General voiced attitude? Given the manufacturer-dominated nature of our national advocacy groups, there is very little that other segments of the MH industry can do to combat this restraint on competition. Sadly, there is ‘no light at the end of this tunnel’.
- Pending manufactured housing ‘chassis’ legislation and a recent White Paper published by the Manufactured Housing Association for Regulatory Reform (‘MHAR’). Gist of the conversation? Whether to support, or not, the concept of chassis removal, where HUD-Code homes are concerned. Appears land lease community folk see little value to them, relative to said ‘removal’; while manufacturers, independent (street) MHRetailers, and ‘company stores’ selling product onto scattered building lots conveyed fee simple, see significant advantage. And MHARR’s repeated use of the term ‘surgical removal’ needs explanation. How do you feel about this issue? Reply via gfa7156@aol.com
On a lighter note, I learned a few new things during the SECO Conference.
Bumper sticker distributed at the event: ‘HONK If You Have a Park to Sell!’
Baseball cap with this logo: ‘Make Mobile Home Parks Great Again!’ What’s with this ‘mobile home park’ terminology? Thought we were well beyond that in year 2023! Long live land lease communities!
A new acronym to me: Do you know what NINJO means, from a financial perspective? How ‘bout ‘No Income, No Job!’ loan candidates. Aha! Repeating the $ errors of year 1998? Let’s hope not.
And while there were several exhibitors present with Christian backgrounds, I found the verso (back) side of the Newby Management (Ellenton, FL) business card to be particularly telling. Their Mission Statement? “Sharing the Love of Christ, While Providing Unique Management Services for the Manufactured Housing Industry.” As an aside, I’ve been familiar with this community fee-management firm since the early 1990s, when founder Martin Newby (now retired in NC) was one of 19 community owners who stepped forward to help launch the Industry Steering Committee (‘ISC’) cum National Communities Council (‘NCC’) division of the Manufactured Housing Institute (MHI’). Lotta interesting history around land lease communities and their owners/operators! For example, read the Allen Legacy column in current issue of MHInsider magazine; titled, ‘Vietnam War Veterans in the Manufactured Housing Industry’.
There’s so much more I could tell you about this year’s SECO Conference, but it’ll have to wait for a subsequent weekly blog posting.
George Allen, CPM, MHM