Tenant Site Lease Provisions (‘TSLPs’)

December 1st, 2020

Blog Posting # 615 @ 4 December 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: What a bargain! This blog is the only weekly news outlet featuring manufactured housing and land lease community news – and it’s FREE. This week, learn about the Tenant Site Lease Provisions now required by the FHFA and two GSEs. Also learn more about Legacy Housing. And finally, a potpourri of past, present, and future news bits that should be of interest to you. To encourage us, here at EducateMHC, to continue keeping YOU informed, you should be subscribing The Allen Confidential! business newsletter. How? Simply visit www.educatemhc.com And remember, PRIME subscriber status also gets you the annual ALLEN REPORT (32nd edition will be out during January 2021), National Registry of ALL Lenders, and ten additional statistical compendiums and helpful directories.

I.

Tenant Site Lease Provisions (‘TSLPs’)

Federal Housing Finance Agency (‘FHFA’) now requires ‘manufactured home communities’ (‘MHCs’) to have Tenant Site Lease Protections, if they’re to be categorized as mission-driven business, hence eligible for multifamily lending considerations by Fannie Mae & Freddie Mac. And what are these TSLPs?

• One-year renewable term for the site lease

• 30-day written notice of rent increases

• 5-day grace period for late rent payments

• Rights of the tenant of a site lease to sell their manufactured home without having to move it out of the MHC; sublease the manufactured home or assign the site lease to a buyer, provided buyer meets minimum MHC rules and regulations, and credit quality for financing; post ‘For Sale’ signs on the manufactured home, provided signage complies with MHC rules and regulations; sell the manufactured home in place within 45 days after eviction; and, receive at least 60 days notice of any planned sale or closure of the MHC.
MHC borrowers who implement all eight TSLPs are eligible to receive reduced interest rate spread pricing, and up to $10,000 per property in third party report cost reimbursement.

Backstory. Two Listening Sessions ago, in St. Louis, FHFA and GSE representatives were warned they’d already guaranteed mortgages on land lease communities recently acquired by new portfolio investors from outside the manufacture housing industry, and to expect abuses to homeowners/site lessees. Don’t know for sure, but appears the requirement for TSLPs is the result of that warning cum actual experience.

II.

How Well Do You Know Legacy Housing?

This paragraph quoted from a recent Press Release issued & distributed by Legacy Housing.

“Legacy Housing Corporation builds, sells and finances manufactured homes and ‘tiny houses’ that are distributed through a network of independent (street) retailers and company-owned stores, and are sold directly to land lease communities. We are the fourth largest producer of manufactured homes in the U.S. as ranked by number of homes manufactured based on information available from the Manufactured Housing Institute (‘MHI’) and the Institute for Building Technology & Safety (‘IBTS’) for the fourth quarter of 2019. With current operations focused primarily in southern U.S., we offer our customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet, consisting of one to five bedrooms, with 1 to 3 ½ bedrooms. Our homes range in price, at retail from approximately $22,000 to $140,000.” (Lightly edited for trade terminology and clarity. GFA)

Legacy Housing also touts its’ belief it’s “…one of the most vertically integrated in the manufactured housing industry, (offering) a complete solution to our customers, from manufacturing custom-made homes using quality materials and distributing those homes through our expansive network of independent retailers and company-owned distribution locations, to providing tailored financing solutions for our customers.”

Know what? They’re right about that, but ‘vertical integration’ of this sort is pretty much status quo for the manufactured housing industry these days, considering the Big 3-C firms in particular: Clayton Homes, Skyline-Champion, & Cavco Industries. To make the firm fully integrated vertically, Legacy Housing will need to develop and or acquire one or more land lease communities to complete this four part business model. And the firm, in the above-referenced Press Release indicates it has been purchasing raw land, perhaps for this purpose.

If you found this interesting, you should be reading the monthly ‘MHShipment Volume & Stock Market Report’, an addendum to The Allen Confidential newsletter! To subscribe, visit www.educatemhc.com Do So Now, as we plan format improvements in early 2021, e.g. nine public firms to be listed alphabetically within their respective ‘manufacturer’ and ‘land lease community’ classifications. And, toying with the idea of charting stock prices, with new home shipment volumes superimposed on said chart. It’s already a fascinating month-by-month statistical story; this will just make it all the more instructive, even fun, to read and track. Don’t miss out!

III.

MUSINGS, past, present, future…

PAST. Several untimely deaths occurred during the past few weeks: Art Decio, founder & chairman of Skyline and dad to Terry; Glenn Kummer of Fleetwood renown (Read about him in the late John Crean’s autobiography, The Wheel & I), and Roger Huddleston (independent-street-MHRetailer in IL.), son of the late Warren Huddleston. Art, Glenn, Warren, and John are manufactured housing industry pioneers, and members of the RV/MH Hall of Fame.

PRESENT. Well, it’s only one month away. What? The 32nd annual ALLEN REPORT, a.k.a. ‘Who’s Who Among Land Lease Community Portfolio Owners/Operators Throughout North America!’
This year’s report has been difficult to research (Had to chase far too many ‘players’ for their portfolio stats) but easier to compile (Thanks to EducateMHC staff putting data on spread sheets). Never ceases to amaze me how often, those who procrastinate providing key info, are often the first and most persistent in wanting access to the published data. Go figure.

FUTURE. By now you likely know the Biloxi MHShow will occur 15-18 March in Biloxi, Mississippi. And given the retirement of Dennis Hill, show management of this event, will be handled by Rick Robinson and the firm he helps lead these days, manufacturedhomes.com

Also plan to be at the RV/MH Hall of Fame, in Elkhart, IN., 13 May, for the postponed induction banquet for the Class of 2020. Phone (574) 293-2344 for details and to purchase tickets.

And you should be saving the dates 7-9 July 2021, to attend the postponed 2020 National Networking Roundtable! For more information on this event, visit www.educatemhc.com

***
George Allen, CPM, MHM EducateMHC

Four Takeaways @ State of National Housing Address

November 27th, 2020

Blog Posting # 614 @ 27 November 2020; Copyright 2020: Educatemhc

 

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

 

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

 

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educatemhc.com

 

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

 

INTRODUCTION:

 

 

 

I.

 

Four Takeaways @ State of National Housing Address

 

The Joint Center for Housing Studies at Harvard University recently hosted a virtual presentation of its’ 31st annual State of the Nation’s Housing research and conclusions. Supposedly there were 1,000 listeners. I was underwhelmed by the number and nature of the observations made during the webinar. Here’re the four that stuck with me:

 

While it was acknowledged, housing matters are ‘local’, as in local housing markets, panelists agreed there was need to re-envision national housing policy at federal level. Depends on which administration.

 

The 2007 & 2008 recession was characterized by a foreclosure crisis; while today’s 2020 pandemic times characterized by a renter crisis. In both instances, beware scams!

 

Today there’s a stronger homeownership market than rental market; thanks, in large part, to young millennials with jobs, buying their first houses.

 

Underscoring all this was a plea for more homebuyer education and information, better screening.

 

I know, not much meat here, and I apologize for that. Perhaps a blog reader, who sat in on this virtual presentation, has more to offer. If so, let me know via gfa7156@aol.com  Thanks! GFA

 

II.

 

MHARR Harangues Post-Production Segments of MHIndustry but Offers No Practical Solutions!

 

In its’ REPORT AND ANALYSIS dated 20 November 2020, MHARR lamented the “…ineffectual representation of the industry’s post-production sector in the nation’s capital, in order to bring these crucial, market essential matters (i.e. consumer financing, discriminatory zoning and placement) to fruition.” (Lightly edited, with parenthetical addition & punctuation. GFA)

 

Rightly and wrongly, MHARR lays this failure at the feet of MHI. Rightly, because MHI overtly claims to represent the entire manufactured housing industry, including post-production sector businesses. Just how effective though, has their advocacy been? Wrongly, because even though there’re MHI divisions representing suppliers, land lease communities, and independent (street) MHRetailers, the bulk of the institute’s funding comes from HUD-code housing manufacturers, who – as a result, pretty much determine the direction, scope, as well as present and future efficacy of the organization.

 

To that end, the question arises, from time to time, when does a business type (e.g. HUD-Code housing manufacturing and home only chattel finance) cross the line, in terms of $ or national market share, to become a monopoly, monopsony, oligopoly or duopoly? The differences among these entities? This definition from Wikipedia:

 

“A monopoly…exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony, which relates to a single entity’s control of a market to purchase a good or service, and with oligopoly and duopoly which consist of a few sellers dominating a market.”

 

So, there maybe we have the answer to that decades old question of manufactured housing market dominance. Oligopoly or duopoly? Digging deeper into ‘definitions’, we find OLIGOPOLY to be the appropriate term: “a market situation in which prices and other factors are controlled by a few sellers”. Duopoly? Two firms control the market. So, OLIGOPOLY it might be!

 

And while I plowed this furrow in last week’s blog posting (#613), the observation made by MHARR is worth repeating again – as it does in this 20 November report:

 

“Nearly 13 years after enactment of the DTS (i.e. Duty to Serve) mandate by Congress, neither Fannie Mae nor Freddie Mac have securitized a single manufactured housing personal property loan – and have no current plans to provide any DTS support for such loans for the foreseeable future – despite the fact that personal property loans comprise (and have historically comprised) nearly 80 percent of the manufactured housing market, according to U.S. Census Bureau data.”

 

Finally. MHARR laments “…a level of complacency on the part of (HUD) program regulators, toward the regulatory reform process and, at worst,…encouraged outright resistance to (the) process.” I ‘feel the pain’ in this observation. But don’t think blame can be laid entirely at the feet of MHI & MHARR. Frankly, the manufactured housing industry is way underserved, in my opinion, when it comes to investigative journalism and news coverage of regulatory and related matters. Gone are the days of the Manufactured Home Merchandiser magazine and The Journal tabloid. Today, The Allen Confidential! focuses on the information needs of land lease community owners/operators, while the quarterly MHInsider magazine is not on the scene enough to exert the sort of pressure needed from time to time.

 

Underscoring the message of the previous paragraph is the woeful lack of financial support (including advertising) from would be subscribers and readers of these few remaining print publications. It seems we’ve become so used to reading immediate, albeit shallow news at any number of online sites – oft penned by self-proclaimed, short-lived ‘experts’ with questionable credentials. Are you doing your part to keep quality trade journalism coming your way?

 

In closing, and as a peripheral matter, I think MHARR’s message(s) would be more effective if not conveyed in 111 word paragraphs, and they’d stop referring to ‘hybrid’ homes, when everyone knows they’re describing the CrossMod™ model HUD-Code manufactured home.

**

George Allen, CPM, MHM

‘MHIckey & MHARRio’

November 20th, 2020

Blog Posting # 613 @ 20 Nov 2020; Copyright 2020: Educatemhc

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and /or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Recognize MHIckey & MHARRio from blogs past? I use these two ‘play on words’ creations to demonstrate how closely the trade advocacy entities are related in the manufactured housing industry and the minds of those of us who career there.

I.

‘MHIckey & MHARRio’

Musings. I’ve known of the Manufactured Housing Institute (‘MHI’) since entering the manufactured housing business in 1978. Didn’t really pay much attention to it, however, until 1980, when Carolyn and I launched GFA Management, Inc., as a fee management firm. And the Manufactured Housing Association for Regulatory Reform (‘MHARR’)? While not present at the ‘big split’ in 1985, when Danny Ghorbani left MHI to help found MHARR, I was certainly aware of the proceedings.

It was shortly thereafter, in 1988, I began, what’s turned out to be, my perennial on again – off again tete-a-tete, with whoever ran MHI at the time. To that end, I’ve lived and worked through no less than a half dozen MHI executive vice presidents since 1990. MHARR, in contrast, performed its’ yeoman work, in behalf of manufactured housing, under the leadership of its’ founding exec, until a few years ago when he retired.

What happened in 1988 that ‘set the tone and tenor’ of my ongoing relationship with MHI? After penning articles for the Manufactured Home Merchandiser, and Ask George column in The Journal, I pulled the published material together in the first book on professional community management in two decades! The self-published, perfect bound book was titled, Mobile Home Park Management. And here’s where ‘the rub’ began. As a Certified Property Manager (‘CPM’) member of the Institute of Real Estate Management (‘IREM’), I planned to imitate that certification with one of my own – for mobile home park owners and managers.

It was at that very time, MHI decided to launch the Accredited Community Manager (‘ACM’) certification program – and asked me to hold off starting the Manufactured Housing Manager (‘MHM’) certification program. In the interest of being a ‘team player’, I agreed, even helping Craig White, ACM, pen the first of three ACM lesson plans, then teaching a 101 session with him in Portland, OR. *1

Point? As a new small business owner in the manufactured housing arena, I wanted to ‘get along with everyone’. But my first Lesson Learned was, this would be possible, only as long as I followed the lead of the institute’s elected and salaried leaders at the time – albeit they and their foci changed every couple years.

Things went smoothly enough for ten years. Then I learned, after asking pointed questions, there’d been barely 100 new ACMs designated during that period of time! Not a sign of program success. At that point, I dusted off the MHM program, and to their chagrin, started teaching it myself, from coast to coast and throughout Canada. Today there’re nearly 1,500 MHMs owning/operating land lease communities. MHARR has and had no such program.

Then an organizational hiccup occurred, between years 1993 and 1996. This was a pre-REIT (real estate investment trust) effort to ensure effective national advocacy for land lease community owners/operators (though, at the time, we were still talking ‘manufactured home communities’), once several of the large portfolio firms ‘went public’ in 1994. The Industry Steering Committee (‘ISC’), formed in 1993, evolved into the National Communities Council, effective 1 January 1996, under the leadership of Jim Ayotte. This whole scenario is documented in Bruce Savage’s book, The First 20 Years!, available via www.educatemhc.com

At the turn of the century, the manufactured housing industry and land lease community real estate asset class began the 20+ year paradigm shift that’d see, given the loss of easy access to chattel capital, the bulk of new home sales move, eventually, from independent (street) MHRetailers, to being effected within land lease communities. Everyone was ‘hustling’ at the time, as the annual new home shipment volume dropped from 372,943 in 1998 to 48,789 by year end 2009. MHI and MHARR, in my opinion, had no answers or solutions to this seven fold decline in shipments. According to MHI, at the time, more than 10,000 MHRetailers went out of business; and land lease community owners/operators realized they’d have to become their own saviors if they were to survive. This realization led to the debut of Community Series Homes in 2009. Result? In 2009, only 24 percent of new HUD-Code homes were shipped into this property type nationwide. By year 2014 the percentage increased to 40+/-!*2

And there was – and continues to be, CONSOLIDATION – on two fronts. There were 25 major housing manufacturers shipping new homes in 1977. Leading that group was Skyline Corp. at #1, followed by Fleetwood Enterprises (now part of CAVCO Ind.), then Champion Home Builders. The next 22 firms have all been consolidated into others or gone out of business – except for Commodore Corp. of VA (presumably same one as in Goshen, IN. today). Clayton Homes is not on that 43 year old list. Today, we generally talk of two groups of HUD-Code housing manufacturers, the ‘Big 3-C’ firm members of MHI (i.e. Clayton Homes, Skyline-Champion, and CAVCO Industries), plus a few smaller firms. And the smaller, relatively few regional ‘players’ who align with and support MHARR. *3

The other CONSOLIDATION front? Land lease communities nationwide. Back in 1989, when I researched and published the first ALLEN REPORT, there were but 25 known portfolio owners/operators of (then) ‘mobile home parks’. Today, that number has swelled to 500+/-. As the unique, income-producing property type has increased in popularity, among investors, as the Ten Good Reasons for Owning a Land Lease Community became widely known. *4

So, has CONSOLIDATION been good or bad for the manufactured housing industry? I can state only my position, but here goes:

• Where HUD-Code housing manufacturers are concerned, their ‘floor fee $s’ and reduced number presence (i.e. fewer but larger firms as MHI members) has concentrated their influence (and power), in my opinion, at the expense of all other segments of the manufactured housing industry; e.g. lack of proxy voting, patronizing of luxury meeting venues (a.k.a. affluence gerrymandering), etc..*5

• Where land lease communities are concerned, state housing associations have suffered the most, as there are fewer ‘Mom & Pop’ owners to patronize and support education, networking, and political action events. And the relatively recent influx of ‘outside investment $’, and resulting property mismanagement, has created increased turmoil, and once again, raised threats of landlord-tenant legislation, like rent control.

While I’ve seen CONSOLIDATION slow somewhat, during the past few years (i.e. limited number of manufacturers and investment grade communities to acquire and consolidate), it won’t stop altogether. Smaller, regional manufacturers are still easy prey for behemoth firms; and today, portfolio firms are wont to ‘trade’ properties among themselves, rather than – as in the past – rely on real estate brokers to bring prospective sellers to them.

Back to MHIckey & MHARRio. My lowest and highest points as an MHI member? Lowest occurred during the 2011 annual meeting in Austin, TX., in a National Communities Council division gathering, when the chairman called me, and a friend (fellow land lease community owner) sitting next to me, ‘out’ loudly and publicly for opposing what we viewed as too much portfolio control of that group. This happened in front of 70 business associates and was embarrassing. We were given no opportunity at the time, or later, to defend or even explain ourselves. That was the last MHI meeting my friend has ever attended.

High points? Actually, there’ve been two. One, a few years before the sad incident described in the previous paragraph; when MHI honored me as their Industry Person of the Year! And then, in 2018, MHI honored me as their first and only (to date) Emeritus Member!

Today? I’m content with my relationship with MHI and MHARR – though in the latter instance, I am not, nor have I ever been, a member, given their tightly focused mission of ‘regulatory reform’ in behalf of smaller HUD-Code manufacturers. I continue, however, to believe MHI, and by extension, the NCC division, would better serve land lease community owners/operators nationwide, if they’d incorporate some of my/our (now EducateMHC) products and services into their resource repertoire for this real estate asset class.

End Notes
1. Quoted from SWAN SONG, combined history of the realty asset class and official record of new HUD-Code housing shipments from 1955 to the present day. Available for purchase via www.educatemhc.com
2. Ibid
3. Ibid
4. Ibid
5. By way of example, there’s this paragraph, with redactions, from a recent email exchange between MHBusinessmen: “…one of those…thinly veiled trade secrets within MHI. Specifically, as long as the (interrelated) firms you mention – and their leaders in particular (e.g. ______ = chairman of MHI & corporate attorney for __________ ; ________ = past chairman & still influential within MHI & head of __________; and, of course, _________ = ‘everyone’s friend’ & head of __________) reign in Alexandria, VA. (MHI’s headquarters); well, the entire industry and realty asset class will pay a price related to business suppression.”

I.

FHFA 2021 Loan Caps Lower & Restrictive

$ “Volume caps for Fannie Mae & Freddie Mac have been set at $70 billion for each Enterprise, with respect to their purchase of multifamily loans in calendar year 2021. This is a modest proportionate reduction compared to the prior year cap, which was $100 billion during the longer five-quarter period…” *1

But here’s the rub:

“To be counted as mission-driven, affordable housing manufactured housing communities (‘MHCs’), must either be resident/government/nonprofit-owned (think ROCs or resident-owned communities) or must have tenant pad lease protections as outlined in the Duty to Serve (‘DTS’) regulation.”*2 In my opinion, this latter paragraph is misleading, discriminatory, but reacts to predatory business practices (i.e. extreme rent increases) of outside investors whose property loans the GSEs guaranteed during the past couple years. Specifically:

• Affordable housing manufactured housing communities. Where did the FHFA come up with this beaut? They’d have been better off, and easily understood, if they’d opted for ‘affordable land lease communities’. When will they ever learn?

• Discriminatory? So the FHFA believes resident-owned communities are fairer to homeowner/site lessees than privately owned (and REIT) land lease communities. Not always so. Not all residents have invested in the cooperative-owned business structure, and are subject to, some times different, rent rates set by their erstwhile peers.

• Reaction to predatory business practices. Guess we, as a realty asset class, deserve to have ‘tenant pad lease protections’ foisted on us, given the extreme rent increases, and other abuses to homeowner/site lessees, that have occurred during the last couple years.

It pains me to tell you how disappointed I am in recent Press Releases from the FHFA and GSEs (i.e. Fannie Mae & Freddie Mac). Last week you learned here, of the ‘infeasibility requests’, by said GSEs – approved by the FHFA, to backburner the ongoing and dire need for chattel capital, to effect mortgages for home-only loans! And now this week, while not as overtly negative for land lease communities, we see the naiveté GSEs continue to demonstrate relative to the realty asset class – see the three bullet points above. GFA

End Notes.
1. Quoted from MHI’s HOUSING ALERT dated 17 November
2. Ibid

***

& Now There Are Nine…

November 13th, 2020

Blog Posting # 612 @ 13 Nov 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Part one announces latest manufactured housing-related firm to ‘go public’. All nine stock exchange firms (including five featuring land lease community property portfolios), are examined monthly in the combined ‘MHShipment Volume & Stock Market Report’, prepared and distributed by EducateMHC. Part II, is kinda historic, as it directly quotes the Federal Housing Finance Agency agreeing with the two GSEs, Fannie Mae & Freddie Mac, it’s INFEASIBLE for them to improve our industry, and especially our realty asset class’, access to chattel capital for home-only mortgages! And Part III. Whether the Trump administration remains in place, or the Beiden group ‘rules’, both must remain wary of the actions by the Chinese government (CCP = Chinese Communist Party).

I.
& Now There Are Nine…

EducateMHC’s November edition of its’ ‘MHShipment Volume @ September 2020, & Stock Market Report of 3 November 2020’ Introduce Flagship Communities as ninth public company in the manufactured housing industry.*1

Yes, the rumors are indeed true. Longtime business partners Kurt Keeney and Nathan Smith, founders and owners/operators of the Kentucky-domiciled SSK land lease community portfolio, renamed Flagship Communities, took their firm public on 7 October 2020 via the Toronto Stock Exchange (‘TSX’). These 45 land lease communities, containing nearly 9,000 rental homesites – including 600+/- rental units, will rank high on the upcoming 32nd annual ALLEN REPORT – now being compiled, and scheduled for distribution during January 2021, as an addendum to The Allen Confidential! business newsletter. To reserve a copy, visit www.educatemhc.com

The other eight public companies? Four of which are HUD-Code housing manufacturers: Berkshire Hathaway, Inc. (i.e. Clayton Homes), Skyline Champion, Cavco, and Legacy Housing Corporation. Four land lease community portfolio owners/operators: ELS, Inc. (first & largest REIT), Sun Commu8nties, Inc., UMH Properties, and Manufactured Housing Properties, Inc. And now, of course, Flagship Communities.

II.

FHFA’s Annual Housing Report Comes Clean

MHI and MHARR have been saying and writing for months – no, make that ‘years’, the Federal Housing Finance Agency (‘FHFA’) and two GSEs (government-supported enterprises) it oversees (i.e. Fannie Mae & Freddie Mac) have been way underperforming, in behalf of the manufactured housing industry! Just read the blog postings of the last two weeks for their commentary.

And now, along comes FHFA’s Annual Housing Report, for the period 1/1/2019 thru 12/31/2019, but only released publicly on 30 October 2020. Why the nearly long communication lag from year end 2019 to nearly year end 2020? Go figure.

In any event, here’s the damning paragraph in said report:

“For manufactured home titled as personal property, or chattel loans, both Enterprises submitted infeasibility requests on their chattel pilot initiatives, requesting that FHFA exclude these objectives from a consideration during the Annual Duty to Serve (‘DTS’) performance evaluation for 2019. An Enterprise may submit an infeasibility request if underserved market conditions or other extenuating circumstances outside of its control substantially interfere with its accomplishment of an objective. FHFA approved these infeasibility requests on February 27, 2020.” (Only edit = insertion of DTS)

So, what does this mean? Quoting from ‘MHARR’s News Item’ dated 4 November 2020,

“…nearly 80 percent of the entire manufactured home consumer loan market – is totally excluded from FHFA’s compliance evaluation.” That, my readers, is the entire chattel (capital) sector of the manufactured housing market!

Bottom line for me? We’ve been wasting our time and resources, except where land lease community real estate-secured mortgages are concerned, courting the favor, support, and cooperation of Fannie Mae and Freddie Mac. I now begrudgingly admit, the time and money spent traveling to Washington, DC., and participate in three FHFA-hosted Listening Events, during the past several years has been a near 100 percent waste!

III.

Enemy Report

Following two paragraphs extracted from Brian T. Kennedy’s speech, delivered on 29 September 2020, at a Hillsdale College National Leadership Seminar.

“We know with certainty that after the (corona) virus began spreading in Wuhan (during) the fall of 2019, the Chinese government closed down flights from Wuhan, which is in Hubei province, to the rest of China. At the same time (however), it allowed flights from Wuhan to continue to go to Europe and to the U.S. – where the Chinese knew with certainty that the virus would spread. And when President Trump closed the U.S. to flights from China, its foreign ministry and one of the CCPs (Chinese Communist Party) propaganda arms, the Global Times, pushed for a reversal of this policy – again, knowing full well how contagious the virus was. Indeed, the Chinese government locked down Wuhan and released videos of men in hazmat suits welding doors shut so people could not leave their homes.” (Lightly edited. GFA)

“It is also believed that Chinese operatives in the Houston consulate provided intelligence to Black Lives Matter and Antifa rioters in Houston, as a way of demonstrating their solidarity. Indeed, there is growing evidence the CCPs United Front includes these groups, and that some of the funding for BLM and Antifa is coming from CCP-sponsored groups; Liberation Road, the Freedom Road Socialist Organization, and the Chinese Progressive Association.”

If you’d like to receive Hillsdale College’s IMPRIMIS (free) monthly newsletter – and it is well worth reading, phone (800) 437-2268

***

Seven Past & Present Manufactured Housing Executives’ Books Available on Amazon.com

November 6th, 2020

Blog Posting # 611 @ 6 Nov 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and /or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Have been wanting to share this information with you for some time now. We have some talented writers in our industry and realty asset class, and you should be (in my opinion) reading their published works. Here’s that information in Part I. And, Part II, shows yet another of our industry’s national advocates keeping pressure on the federal government bureaucracy, to better serve our financial (lending) needs! Part III announces a professional property management position available with one of the 500 land lease community portfolio firms.

I.

Seven Past & Present Manufactured Housing Executives’ Books Available on Amazon.com

Yes, you read that rightly. More and more manufactured housing and land lease community businessmen and association executives’ books are available for purchase via Amazon.com Here’s a summary of the ones found there today.

Four of the authors – one of whom is deceased, have their autobiographies available to purchase and read. Jim Clayton and Samuel Zell are the most widely known of these folk. Jim’s First a Dream was penned some time ago and is in its’ second edition. (There’s an interesting, albeit humorous story, that takes place between Jim and me, as he moves from the first to the second edition. Remind me to tell you about it someday.) And Sam Zell’s book, Am I Being Too Subtle? is classic Zell. In my opinion, probably one of the best non-fiction ‘stories’ in the entire mix.

Then there’re Mike Conlon’s Unconventional Wealth treatise – as much a HOW TO (get rich) text as partial autobiography. (And there’s an incident in these pages few know about today.). Why partial autobiography? When Mike penned this manuscript he was a young man, certainly in his 30s or 40s; so, room for more tale-telling down the road. The late George Goldman, unknown to most ‘newbies’ of the past couple decades, did a credible job with his autobiography, titled, The Road Less Traveled. While I Knew George, and his wife Judy, I still learned quite a bit about their land lease community business history, as well as their Woodall’s ‘mobile home park directory’ ownership for a time.

Rick Robinson and Charles Irion break the mold of MH non-fiction. I’ve known Chuck for most of my 40 year career, initially as a ‘mobile home park broker’ and limited partner in deals. But, more than that, I appreciate his skills as a mystery/thriller author. His books on Amazon.com? Murder on Kilimanjaro, Murder on Aconcagua; and recently, Murdered by Gods. Chuck also has a few ‘off the wall’ titles, one of which being, Roadkill Cooking for Campers. And finally, he’s an artist of sorts; unsure what to call the colorful representations I’ve seen to date.

Back to Rick Robinson. Most folk reading this know him from his years with the Manufactured Housing Institute; and of late, manufacturedhomes.com – where he’s vice president for industry relations. That aside, he’s a prolific author of mystery/thrillers, with these titles: Opposition Research (most recent book), The Advance Man, Alligator Alley, The Maximum Contribution, Sniper Bid, Manifest Destiny, Writ of Mandamus, Killing the Curse, The Promise of Cedar Key, Washing Cars to Hollywood Stars, and Strange Bedfellow. WOW! What production! Me? I’ve read the first three of the books listed.

I also feel fortunate to have my books available, not only via Educatemhc.com, but at Amazon.com These include new editions of the Chapbook of Business Management & Wisdom, as well as the Chapbook of Prayer, and Collection of Figurative Language & Figures of Speech – ‘A Tool of Writers & Readers’. ‘Closer to home’, so to speak, are these manufactured housing and land lease community-related titles: Community Management in the Manufactured Housing Industry (8th edition of Manufactured Housing Manager certification text, and most comprehensive land lease community management text ever published!); also, SWAN SONG, the combined ‘MHShipment Totals from 1955 to date’ & personal, semi-autobiography within our industry and realty asset class. Also on Amazon.com, as ‘used texts’ are the two J. Wiley & Sons classic tomes: Development, Marketing & Operation of Manufactured Home Communities (1994) and How to Find, Buy, Manage & Sell a Manufactured Home Community (1996) – both long out of print but still popular as references, nonetheless.

Now, there are other interesting titles, and places to get them. For example, the RV/MH Hall of Fame stocks and sells above-referenced books by Jim Clayton, George Goldman, and some by George Allen; also an autobiography, The Trailer Twins, by the late Darrell & Harrell Cohron. Then, there’s Al Schrader’s autobiography, No Respect At All – A Path to Million$. The most recent addition to titles available via RV/MH, is Leap of Faith by Jim, Ralph, & Jeff Scoular.

Well, there you have it. Some really great reading in most of the books authored by manufactured housing executives and businessmen. Heck; maybe there’s a story you need to be telling! If so, contact me via email (gfa7156@aol.com) and ask for a FREE copy of the booklet, ‘Who Will Preserve Your Legacy?’ This little gem contains not only excerpts from the ten MH autobiographies penned to date, but describes five HOW TO ‘legacy pen’ steps along the way.

II.

MHI Keeps Pressure on FHFA & GSEs!

This from Manufactured Housing Institute’s ‘News & Updates’ newsletter of 28 October 2020:

“MHI…to the Federal Housing Finance Agency (‘FHFA’) emphasizing the critical importance of access to secondary markets for manufactured home loans through Fannie Mae and Freddie Mac (the GSEs), under their statutory Duty to Serve (‘DTS’) manufactured housing. In the letter, MHI acknowledged the progress the GSEs have made in increasing volume of land-home loans and creating new financing options for the industry’s new CrossMod™ homes, but called for more progress in the development of a secondary market for chattel lending. MHI also discussed the GSE’s financing for land-lease communities for Duty to Serve Credit.”

“MHI comment letter follows remarks by MHI CEO Lesli Gooch before the FHFA, Fannie Mae & Freddie Mac, during its’ recent Listening Session about the GSE’s Duty to Serve manufactured housing, and a recent MHI meeting with FHFA Director Mark Calabria on the subject.”

It is so important the national advocates for manufactured housing and land lease communities continue to apply pressure to the FHFA and GSEs relative to their DTS responsibilities!

III.

Regional PM Position Open

One of the 500 land lease community portfolio owners/operators is seeking a regional property manager for the Southeast U.S. If qualified, experienced, and interested, let me know via email: gfa7156@aol.com Attach resume and I’ll forward your message and attachment to this firm.

***

George Allen, CPM, MHM
EducateMHC.com

The Trojan Horse Christmas Card

October 30th, 2020

Blog Posting # 610 @ 30 Oct. 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. #1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Part I is a rare look into my personal and political life. Here sharing the content of a Trojan Horse Christmas Card, because it’s timely and thought-provoking, given the soon-to-occur U.S. presidential election. And Part II? As an industry and realty asset class, we’re fortunate to have two national advocates representing us in our nation’s capitol. In this instance, one advocate continues to pressure federal bureaucracies to do us a far better job!

I.

The Trojan Horse Christmas Card

We received our first 2020 Christmas card on Thursday 22 October. Imagine our surprise and anticipation opening the envelope, to see the holiday greeting from friends we’ve known for more than four decades! Imagine our surprise and disappointment as we read the vitriol-laden political message contained in the enclosed typed lengthy message! Opening lines?

“The COVID-19 pandemic could not have been stopped completely, but it could have been controlled. Trump’s failure to act, his lying and ignoring medical advice cost us at least 170,000 lives and has sent our economy down the tubes. This did not happen in any other developed country. He did not even protect his own family.”

And it gets worse the further one reads into the screed. First a list of six personal deprivations, e.g. ‘I have not been to a symphony, a live performance, movie, or museum.’ Horrors! Then a recitation of seven COVID-19 factoids (i.e. questionable or unsubstantiated facts) such as: “Hospitals are unable to care for all the patients.” Really? Where? Since this letter was penned in the Pacific Northwest (You know, ‘blue state mismanagement’), so may be true there. But you get the drift. Someone is very unhappy, politically charged, and wants everyone to know.

We enjoy receiving holiday greetings, but not of this stripe. Sure, the writer is entitled to their view and opinion on any matter; but to harangue (i.e. a long, vehement speech) one’s friends with “I beg you to vote Trump out of office.” & “VOTE for Biden-Harris, to begin to put this virus back in its box…and to bring our Democracy back and rescue us from this madness.” Is an ideological ‘bridge too far’ afield for those who’re patriotic Christian citizens in this great country! We are grateful for a president who has kept his campaign promises, by lowering taxes and deregulating wherever possible; and before the coronavirus emerged, lowered the unemployment rate, especially among minorities; strengthened our military and secured our nation’s borders! Oh, and let’s not forget, where foreign policy is concerned, he negotiated better trade deals for the U.S., pressured NATO members into paying their fair share for defense, defeated ISIS once and for all, and ensure ‘no nuclear war’ with North Korea! What more could we possibly ask of a first term U.S. President? Hmm. How ‘bout appointing constitution ‘originalists’ to the Supreme Court (three to date) and other Federal courts? Done!

This Trojan Horse Christmas Card did not fly, let alone walk where and how its writer likely intended. Many, if not most, U.S. citizens are happy living in this great country; self-quarantining through the COVID-19 pandemic (This is our 227th day enjoying one another’s company); and soon deciding, whether they want ‘more of the same Trump’ during the next four years (i.e. ‘Make America Great Again! & ‘Keep America Great!’) OR, vote to take the first wrongful step toward failed socialism via liberal and progressive politicians!

II.

MHARR Keeps Pressure on FHFA & GSEs

In…comments responding to a September 23, 2020 ‘Request for Information’ (‘RFI’) published by Fannie and Freddie’s federal regulator, the Federal Housing Finance Agency (‘FHFA’), the Manufactured Housing Association for Regulatory Reform (‘MHARR’) – as it did at (the) recent FHFA ‘Listening Session’ – maintains the ‘implementation’ of Duty to Serve (‘DTS’), within the manufactured housing market, to date, has been a failure, which has severely prejudiced the industry’s smaller businesses, as well as American consumer of affordable housing! MHARR’s comments…call on FHFA to scrap its current baseless and ineffective approach to DTS, and instead, within a very brief time, take action to fully implement DTS in a market-significant manner across all sectors of the mainstream manufactured housing market! (Lightly edited. GFA)

The MHARR is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. Reach Mark Weiss via (202)783-4087

Get Over It!

October 23rd, 2020

Blog Posting # 609 @ 23 Oct 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.eduacatemhc.com

Motto: ‘U Support US & WE Serve U! Goal: to promote HUD-Code manufactured housing & land lease communities as U.S> # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Something quite different this time around! The Federal Housing Finance Agency (‘FHFA’) – sponsored Listening Session (16 October 2020), relative to ‘underserved market of manufactured housing’ – in time, will be viewed either as a ‘same-o, same-o’ exercise in nothingness; OR, a ‘line in the sand’ of factory-built housing history!

This was the third Listening Session, on this timely topic, to occur during the past five or so years. And frustration and disappointment with the FHFA and Government Sponsored Enterprises (‘GSE’s’) Fannie Mae & Freddie Mac ‘lack of Duty to Serve (‘DTS’) program progress, was strikingly evident in several key presentations! And those sentiments are what we’re bringing to you today in this blog posting.

‘Get Over It!’ is the edited composite of MHI, MHARR & EducateMHC critiques of the FHFA, Fannie Mae & Freddie Mac, as presented at said Listening Session. After you’ve read through this blog, please take time to reach out to those who commented in your behalf, and assure them of your continued support, and share recommendations regarding how to proceed. All of our business futures depend on getting the FHFA and two GSE’s off dead-center, where chattel capital (personal property finance) for home-only loans is concerned!

Get Over It!

MHI, MHARR & EducateMHC Critique FHFA, Fannie Mae & Freddie Mac
at 16 October 2020 Virtual Listening Session

More than a dozen panelists and nearly 100 registrants participated in the FHFA (Federal Housing Finance Agency) – hosted Listening Session on Friday, 16 October 2020.

What follows here are synopses of presentations orated by representatives of the Manufactured Housing Institute (Dr. Lesli Gooch), Manufactured Housing Association for Regulatory Reform (Mark Weiss), and EducateMHC (George Allen). For more information on these presentations, contact the responsible individual.

I.

Let’s begin with the shortest of the presentations, the one by EducateMHC. Knew it was important for me to ‘set the stage’, as a businessman with equity interest in the activities of the FHFA and both GSEs – and how, on two previous occasions (not counting two earlier Listening Sessions in Chicago & St. Louis), I’d witnessed their actions and inactions, relative to manufactured housing and land lease communities. Specifically…

• Year 2010. 100+/- Midwestern businessmen & women met in a downtown Elkhart, IN. office building (I was there), and were told by FHFA & two GSEs: “You are now on your own, relative to personal property (chattel) capital!” This, following year 2009, when only 48,789 new HUD-Code homes were shipped, in large part, due to lack of easy access to home-only financing’, which had disappeared due to MH industry’s financial finagling, i.e. 300,000 repossessed homes valued at $1.3 billion, per Consumer Finance Protection Board.

• Year 2014. When representatives from FHFA, Fannie Mae & Freddie Mac, participated in lively panel discussions at the annual Networking Roundtable I hosted, in Peachtree City, GA. Why important? That event marked the ‘return’ of FHFA and both GSEs, in a rudimentary fashion, to the industry and realty asset class. This has been followed by further meetings, ever since, with industry and realty asset class representatives.

So, what does all that mean today? Well, to be gracious about the matter, one might say the latter event, and three Listening Sessions since then, demonstrate FHFA and GSEs ongoing interest in working with us to cultivate and secure more sources of chattel capital for new home sales. However, there’s a continuing ‘dark side’ to that perspective, and that’s what I attempted to communicate during my presentation, in the following fashion…

“Ongoing recalcitrance pursuant to Congressional fiat, on the part of the FHFA and GSEs Fannie Mae & Freddie Mac, to secure realistic, appropriate, and ongoing access to chattel capital for (manufactured) home-only loans is, in my opinion, profound benign neglect – by definition: “…an attitude or policy of ignoring an often delicate or undesirable situation one is held to be responsible for dealing with….”

What might be remedies for this pattern, now sad culture, of profound benign neglect?

• Once and for all ‘Get over it!’ – the chattel capital lending debacle of 1998 – 2003! Begin a new and helpful chapter via GSE’s tangible and overt support of manufactured housing and land lease community lending! Stop pretending progress!

• Reverse 12 years of minimal activity, relative to GSE’s Duty to Serve (‘DTS’) plans and programs – to date, appearing to be languishing and, in a word, ineffective.

• During year 2021, buy many seasoned chattel manufactured housing mortgages, to stimulate a much-needed secondary market for selling these specialty loans; in the end, freeing up capital for additional manufactured housing sales and financing.

And yes, there’s more that could be said – specifically; but why waste time elucidating measures likely to be, once again, ignored; until FHFA & GSE’s ‘Get Over’ what happened two decades ago?!

II.

MHARR “…has rebuked FHFA, as well as Fannie Mae and Freddie Mac, for their continuing failure to fully and faithfully implement the remedial DTS directive within the mainstream manufactured housing market, to the profound detriment of both consumers and the industry.”

This is what we expect from the ‘Washington watchdog for the manufactured housing industry’! MHARR goes on to say…

“…some 12 years after enactment of DTS, as a remedy for Fannie Mae and Freddie Mac’s long-term failure to serve the mainstream manufactured housing market, and the lower and moderate-income American consumers who rely on inherently affordable manufactured homes, only 5-6 percent of the total market for new manufactured homes is being ‘served’ under DTS, while the industry’s single largest and most affordable segment – comprised of homes financed as personal property – has been left totally unserved. Worse yet, FHFA, in various reports to Congress, has falsely certified that both Enterprises are in compliance with the DTS mandate, when they clearly are not. Thus…94-95 percent of the current-day manufactured housing market remains completely unserved under DTS.” (Lightly edited. GFA)

Therefore, “…more than 90 percent of manufactured housing personal property borrowers (have been forced into) ‘higher-rate’ loans, according to federal data, with less-than-fully-competitive lending market dominated by a relative handful of ‘portfolio’ lenders, most of which are directly affiliated with the industry’s largest corporate conglomerates. This discrimination in the implementation of DTS not only subjects millions of lower and moderate-income Americans to needlessly high borrowing rates for mainstream, personal property manufactured home loans, but also needlessly excludes many more families from the American Dream of homeownership altogether.”

MHARR’s recommended remedies:

• “…FHA must conduct a thorough internal investigation into its failure to faithfully implement DTS within the manufactured housing market for 12 years…”

• (Ensure) the two Enterprises terminate their diversionary tactics under DTS and scrap their current non-complying ‘plans’ and programs.

• (Ensure) Fannie and Freddie immediately implement effective, market-significant and fully comp0liant DTS programs within all segments of the mainstream HUD-Code manufactured housing industry….”

MHARR is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. (202) 783-4087

III.

The following remarks have are quoted directly, in part, from Dr. Lesli Gooch’s presentation, in behalf of MHI at the subject Listening Session on 16 October.

“In light of the impact of COVID-19 on the economy, MHI believes the importance of the Enterprises carrying out their charter access-to-credit and statutory Duty to Serve (‘DTS’) manufactured housing responsibilities should be a priority. In the longer term, as Fannie Mae and Freddie Mac move toward eventual exit from conservatorship, adherence to DTS responsibilities become increasingly critical to ensure these underserved areas are not ignored.

In assessing progress in meeting their statutory DTS responsibilities so far, let’s first look at the GSE’s performance on manufactured homes backed by real estate. Both Fannie and Freddie’s plans promised to develop more flexible, innovative loan products for real property loans – and we believe they have done so.

MHI is also pleased both GSE’s have introduced new programs that provide conventional financing for manufactured homes with site-built features. Qualifying home features for the MHAdvantage and CHOICE Home programs align closely with the industry’s new CrossMod™ homes with higher roof pitches, permanent and lower profile foundations, garages or carports, and porches. CrossMod™ homes are a point of entry for home buyers who are currently priced out of homeownership because traditional site-built housing is not produced at below $200,000. homes, with higher roof pitches, permanent and lower profile foundations, garages or carports, and porches.

A secondary market for chattel manufactured home loans, also called personal property loans, is an area that continues to elude the manufactured housing industry. Chattel loans are mortgage loans which are only backed by the manufactured home, and not by underlying land. Both Fannie Mae and Freddie Mac had included the acquisition of existing chattel loans as a pilot project within their three-year plans. We assume this (COVID-19) has been a factor in Fannie and Freddie not making any visible progress to develop a secondary market for chattel financing in the first three years of their plans.

We would also appreciate candor about how long this delay in re-entering the chattel loan market will continue – and more specifically, what Fannie and Freddie hope to accomplish next year.

There has been much discussion about the GSE’s support for the purchase of land lease communities, both within and outside of DTS. Land lease communities offer more than affordable housing. Communities offer a sense of neighborhood and often feature a range of amenities. MHI recently conducted a national survey of people living in manufactured housing, which showed 87 percent of residents in all-age communities are satisfied with their homes.

MHI understands some parties have raised concerns about some bad actors raising rents excessively and otherwise acting in bad faith. Raising rents and evicting tenants is counter to the prevailing business model of every professional land lease community owner-operator who relies upon stable rent and high occupancy. Going forward, MHI remains committed to responsible, professional ownership of (land lease communities) – and to the homeowners in those communities.” (Lightly edited. GFA)

In closing, MHI appreciates FHFA and the GSE’s for setting up these Listening Sessions.

MHI is an Arlington, VA. – based national advocate for all segments of the manufactured housing industry, including the land lease community real estate asset class. (703)558-0400

IV

Who else was scheduled to address the
Enterprises’ ‘Underserved Markets Plans for the Manufactured Housing Market: Proposed 2020 Modifications and 2021 Additions’?

Todd Kopstein, Cascade Financial
Doug Ryan, Prosperity Now
Bruce Thelen, Sun Communities, Inc.
Paul Barretto, MH Initiatives
Stacey Epperson, Next Step Network
Paul Bradley, ROC USA, LLC
Garth Rieman, National Council of State Housing Agencies
Keith Wiley, Housing Assistance Council
Thomas Heinemann, Heinemann Consulting

George Allen, CPMEmeritus, MHM Master @ EducateMHC

Nostalgia or Timeless Truths?

October 16th, 2020

Blog Posting # 608 @ 16 Oct. 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877)MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educaatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Two widely divergent points of view this week. First, a retrospective look at manufactured housing history stimulated by the closing of my outside office; and, what I plan to share at the FHFA Listening Session on Friday, 16 October 2020.

I.
Nostalgia or Timeless Truths?
During weeks, maybe months, ahead, I’ll be sharing a raft of information that surfaced as I closed our Franklin, Indiana office. You see, the coronavirus pandemic, and Carolyn and I being self-quarantined at home for more than 210 days so far, have eased me into semi-retirement.
So, I no longer need a remote office – but what to do with hundreds of books, along with other manufactured housing and lend lease community resources? (It’s long been said, our corporate library is the most comprehensive collection of texts and material, on those two subjects, in existence anywhere!). Well, we’ve been boxing-up this intellectual treasure (20 large boxes so far) in preparation for delivery to the RV/MH Hall of Fame library in Elkhart, IN. At one time or another, the Library of Congress and Building Institute, in Washington, DC. have expressed interest in ‘housing’ our extensive collection. But when one gets ‘right down to it’, this trove truly belongs where our industry and realty asset class’ legacies are honored and preserved.
I’ll be describing some of these intellectual treasures here in future blog postings, and in The Allen Confidential! For that matter, the November issue of TAC! will contain a fascinating description of early 1960s ‘mobile homes’ and mobile home living, penned by famous writer John Steinbeck, in his bestseller – at the time – Travels with Charlie, In Search of America. His descriptions are priceless, educational, and timeless. To subscribe to the newsletter, visit www.educatemhc.com
This time around, here in this blog, I’ll share six steps to do Before Each Sales Call:
1. What do I wish to accomplish with this call?
2. Am I calling on a qualified prospect and decision maker?
3. Am I presenting the best solution for the customer?
4. Would I buy if it were my business?
5. What really needs to be done to get the order?
6. Can I get the order today? If not, when?
And seven steps After Each Sales Call
1. Could I have closed the account today?
2. Will they really buy, or am I just doing things?
3. How do I know they will buy?
4. What have I learned from this call?
5. How would I do it again?
6. Do I know what is needed to close this account now?
7. Did I ask for a referral to another potential client?
Quoted from a Calling Card by Lynn K. Munson of Practical Business Consulting.
Yes, I know, these steps aren’t necessarily the ones we use in manufactured housing sales and rental homesite leasing, but there are indeed good suggestions contained therein. And there’s much more to come.
II.
Listening Session @ 10/16/20
What follows here is ‘a work in progress’. Simply, the following paragraph and bullet points describe my view of what’s been going on – or better said, ‘not going on’ at federal bureaucracies Federal Housing Finance Agency (‘FHFA’) and two Government Sponsored Enterprises (‘GSEs’), Fannie Mae & Freddie Mac, relative to their Duty to Serve (‘DTS’) plans/programs these past few years:
‘Ongoing recalcitrance pursuant to specific Congressional fiat, on the part of the FHFA and GSE’s Fannie Me & Freddie Mac, to secure realistic, appropriate, and ongoing access to chattel capital for (manufactured) home-only loans is, in my opinion, profound benign neglect”, being “…an attitude or policy of ignoring an often delicate or undesirable situation one is held to be responsible for dealing with….’
What are remedies for this pattern – now culture, of federal profound benign neglect?
• Once and for all ‘get over’ the chattel capital lending debacle of 1998-2003. Begin a new and helpful chapter via GSE’s tangible support of manufactured housing and land lease community lending!
• Reverse 12 years of minimal activity, relative to GSE’s Duty to Serve plans and programs – to date appearing to be languishing and ineffective.
• During year 2021, buy many seasoned chattel manufactured housing mortgages, to stimulate a much-needed secondary market for selling these specialty loans.
And yes, there’s more that could be said – specifically; but why waste time elucidati9ng measures likely to be, once again, ignored?
***
George Allen, CPM™Emeritus; MHM™Master; & Emeritus member, MHI
Senior consultant & lead author of EducateMHC
Gfa7156@aolc.om

Did YOU know?

October 9th, 2020

Blog Posting # 607 @ 9 Oct 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email: gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U!’ Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

INTRODUCTION: Hang onto your seat! This is the first time, in a long while, that we’ve had five major parts to a blog posting – but every one of them is newsworthy and likely of value to you!

I.

FLASH ANNOUNCEMENT

RV/MH Hall of Fame Induction Banquet has, once again, been postponed; this time from 3 December to 13 May 2021.

For more information and to purchase tickets, phone (574) 293-2344

II.

Did YOU Know?

(Quoting from MHARR’s recent epistle titled: ‘Wasted Opportunities Mount as the Clock Ticks Down’, dated October 2020.)

“Fannie Mae seeks approval to back away from any further 2020 loan purchases under its’ ‘enhanced manufactured housing loan product for quality manufactured housing and purchase loans, “ and instead, “replace loan purchases with expanded outreach and education activity.” Sure! And Freddie Mac, in its’ proposed 2020 Plan modification and 2021 extension proposal, totally eliminates its’ previously proposed ‘chattel pilot’ program for 2019-2020, and its’ previously proposed purchase of 800-2,000 manufactured home chattel loans over the same period. Not content with that, though it also would cancel its’ alleged ‘outreach’ and education programs related to chattel lending over the same period.

Do you understand what’s being penned here? Read the paragraph again, before proceeding to the next ‘kill manufactured housing’ bombshell.

“And lest anyone be confused over Federal Housing Finance Agency (‘HFA’) intent to seriously consider Duty to Serve (‘DTS’) stakeholder input (Hey, that’s YOU and ME!) on these ‘proposed’ revisions at a scheduled October 16, 2020, ‘listening session’, or in written comments (due October 23, 2020), FHFA, in its’ Request for Input (‘RFI’) regarding the proposed modifications (Previous Paragraph in this blog!), helpfully notes it ‘expects to issue Non-Objections to the Enterprises proposed modifications…after considering…public input,…by January 11, 2021.” So, it sounds like ‘public input’ will get about as much ‘consideration’ from Fannie, Freddie and FHFA as it has in the past, which is zero to none.”

I’ve already signed-up to ‘public input’ at the Listening Session hosted by the FHFA on 16 October 2020. But now it seems, given accuracy of MHARR’s quoted commentary above, that effort will be akin to ‘pissing up a rope’ in terms of policy change efficacy. Good thing the session is ‘virtual’, or I’d really be upset about spending money to travel to Washington, DC, to speak in behalf of manufactured housing and land lease communities nationwide.

Want your own copy of MHARR’s epistle just quoted? Inquire of Mark Weiss via (202) 783-4087

And if you do wind up with a copy, be sure to turn to page # 2 and read the third (full) paragraph thereon, beginning with this sentence: “But what about the missed opportunities of the past four years – such as those at HUD under Secretary Carson?” Would have quoted it here but for space limitation.

III.

SECO20 in the eyes of its founder…

What follows here is quoted directly from a feature, describing this year’s SECO Conference, penned by one of the event founders, Spencer Roane, MHM. To enjoy and learn from the entire HOW TO article, read it the November issue of The Allen Confidential! business newsletter. To subscribe, read heading to this blog.

“When COVID-19 forced the SECO20 Planning Group to cancel plans for the 10th annual conference, the 16 member group, primarily headquartered in Atlanta, began looking into a virtual meeting instead.”

“MHVillage narrowed the list of capable platforms down to a half dozen.” Then, “MHVillage ….began programming the Sococo platform – and selling sponsor and exhibit space.”

:”Co-founder (David) Roden suggested two important additions to SECO20: Manager Monday and Founders Friday.” Maria Horton, MHM, of Newport Pacific wound up handling most of the scheduling details for the first event.

“In the end, SECO20 proved to be a resounding success. This was the first large scale (almost 500 registrants from 35 states – with twice as many from CA than from GA) event in the manufactured housing industry!”

IV.

MHI Holds Annual Meeting Virtually

Monday through Thursday of this week, featured morning and afternoon sessions for MHI members. This observer listened in on Monday, as Dr. Leslie Gooch and Mark Bowersox announced 2020 board officers would ‘repeat’ during year 2021. Then introduced a new purpose statement ‘elevating housing innovation & expanding attainable housing ownership’ – or words to that effect. (And how does this purpose statement address land lease communities?) Also presentation of various awards to members. Learned, when attorney Marc Lifset was honored with the Lifetime Achievement Award that he either has retired or is in the process of doing so. Wonder if he’ll ‘disappear into the woodwork’, so to speak, like former MHI chairmen Barry McCabe and Gary McDaniel, or continue to influence the industry from afar, like Ross Kinzler and Tim Dewitt? Guess we’ll have to wait and see.

Now, there’s more I’d share with you from these meetings; but ‘years ago’, MHI instituted a gag restriction on news reporters and journalists of all stripes – for good reason at the time. Remember ‘YKW’? Personally, I’d like to see MHI ameliorate those restrictions on press privilege. Had that been the case now, I could – and would, have lengthened this part of the blog posting by

• pointing out an oversight relative to institute’s new Purpose Statement – besides the fact that ‘what we do’ (i.e. manufactured housing) is not even mentioned in it!
• how No Mention was made of CrossMod™ housing being a ‘no starter’ during year 2019 – and question ‘where it is’ this far into year 2020. A finance or design problem?
• some of the naïve commentary couched in the DuckerFrontier ‘Community Cost-Benefit Analysis’ as presented to the National Communities Council division during their meeting on 7 October 2020.

As it stands now, my writing, as an historian for the manufactured housing industry and land lease community realty asset class, is at a near standstill. Is that what we want or need?
V.

A Not-So-Rhetorical Question

One well-known portfolio owner/operator of land lease communities ordered two identical manufactured homes from the same factory, destined for the same location, with delivery three months apart. Second home arrived with invoice pricing nine percent (9%) higher than the first home. WHY?

According to the home’s HUD-Code manufacturer, it was due to drastic increase in lumber cost. And this might well be true. But it sure doesn’t make our unique HUD-Code housing product any more affordable, let alone attainable, by our traditional markets of the ‘newly wed & nearly dead’.

George Allen, CPM, MHM
EducateMHC

MHIndustry ‘watchdog’ on a roll!

October 2nd, 2020

Blog Posting # 606 @ 2 Oct 2020; Copyright 2020: Educatemhc.com

Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’

EducateMHC is the online national advocate, asset class historian, data researcher, education resource, & communication media for all land lease communities throughout North America!

To input this blog and/or affiliate with EducateMHC, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email gfa7156@aol.com, & visit www.educatemhc.com

Motto: ‘U Support US & WE Serve U! Goal: to promote HUD-Code manufactured housing & land lease communities as U.S. # 1 source of affordable attainable housing! Attend MHM class!

I.

MHIndustry ‘watchdog’ on a roll!

Last week (blog # 605), we encouraged you to contact the Manufactured Housing Association for Regulatory Reform (‘MHARR’), to request a copy of their REPORT & ANALYSIS, (‘R&A’) distributed during early September. Did you?

Well, here’s a new REPORT & ANALYSIS, dated 21 September 2020, you should read and ponder. Titled similarly to aforementioned R&A, ‘MHARR Exposes Fannie and Freddie Deception of Regulators, Congress, and Trump Administration on DTS.” (Duty to Serve)

The lead paragraph is probably the most indicting one I’ve read, to date, relative to the two GSEs (government sponsored enterprises), its’ overseer the FHFA (Federal Housing Finance Agency), along with “one or two industry conglomerates”.

Then, on page # 2 (second paragraph), Mark Weiss ‘makes his case’ as to how lack of affordability relates to – what he, in my opinion, erroneously refers to, as ‘MH Advantage’ & ‘new class’ homes. The correct terminology is CrossMod™. Be that as it may, his bottom line conclusion, is that this new shelter alternative “…would cost more than double the amount (i.e. $121,000 – $137,000 compared to $54,000 – $64,000) for current manufactured housing consumers DTS was designed and mandated to serve….” Hard to argue with that.

I’d like to have read MHARR Mark’s opinion, not just about what he felt were the shortfalls, e.g. DTS and the GSEs, but WHY they continue to occur. My opinion on the matter? Fannie Mae & Freddie Mac, along with their FHFA overseer, simply don’t want to RISK a repeat of what happened to them at the turn of the century, when they lost so much money and went into conservatorship – and remain there, though some say there’s a ‘light at the end of that tunnel’. Any commentary out there, about the efficacy or not, of that opinion?

Besides two post-production factors – “discriminatory consumer financing restrictions and discriminatory zoning and placement mandates” (Reads to me like pre-production factors, and classic ‘which came first’, the chicken or egg, conundrum?), MHARR blames much of this sorry state of affairs (i.e. recovering housing industry but declining shipment volume of HUD-Code homes) on “the absence of independent post-production sector (i.e. retailers, communities, finance companies, etc.) representation at the nation’s capital.” Once again, why doesn’t the writer of this opinion, share his reason(s) why this has not happened to date. WHY? I’ll offer one observation. As long as the largest national advocate for manufactured housing is funded and controlled by HUD-Code housing manufacturers, the three post-production sector business models will NEVER wield the type and degree of influence in our nation’s capital necessary to address issues, and regs, lamented early in the paragraph! And to date, no charismatic leader has stepped forth to lead ‘us’ out of captivity.

On one hand, I’ll give MHARR, a housing manufacturers’ trade association, a lot of credit for attempting to address macro issues germane to the land lease community realty asset class. However, doing so, from a less than fully-informed perspective, risks misunderstanding, even error. That happened on page # 5 of this P&A, when the writer pens: “the expansion of existing communities has largely been stymied; while existing communities are being sold and re-developed for other purposes at significant pace.” Not. According to annual ALLEN REPORTs, community expansions continue, and the hot trend of ‘park closures’, early this century, has cooled.

As I did last, week, encourage you to contact MHARR and ask them to email you a copy of this nine page REPORT AND ANALYSIS, dated 21 September 2020. You’ll be glad you did.

II.

A potpourri of MHIndustry Information…

A Storm Cloud on the Horizon?! Affordable Housing Finance magazine, in its’ Sept/Oct 2020 issue opines, “An estimated 30 million to 40 million people could be at risk of eviction in the next several months, according to a team of prominent housing experts….” P.8 Why? “…millions of Americans remain out of work due to COVID-19 and federal, state, and local protections expire.”

“Freddie Mac (in its’ midyear multifamily outlook report) predicts U.S. multifamily loan originations will drop severely for all of 2020, due to the outbreak of COVID-19 and the big blow the virus has dealt the U.S. economy.” Heartland Real Estate Business tabloid, p.18

A whisper of good news! “According to latest Federal Fair Housing Agency House Price Index (‘FHFA HPI’), house prices rose 6.5 percent from July 2019 to July 2020.” FHFA will release its’ next HPI report on 27 October 2020, with housing data through August 2020.

Did you do SECO last week? If you did, you were part of the first and largest national virtual gathering (i.e. 400+ registrants) of manufactured housing and land lease community (though ‘too many’ of the presenters kept referring to ‘mobile home parks’) to occur in the U.S. since the Louisville MHShow way back in January 2020. The SECO National Conference for Community Owners featured more than a dozen timely topics, covered by nearly three dozen speakers. I’ve requested input from the show’s organizers to use in next week’s blog posting, perhaps even a feature story in the November issue of The Allen Confidential! newsletter. The entire event was recorded, so visit SECO online to learn how to obtain a copy if so desired.

Are YOU signed-up to attend the Federal Housing Finance Agency’s (‘FHFA’) Listening Session for Manufactured Housing on 16 October 2020? I am. It’s virtual and extends from 1-4PM that day. Visit the FHFA website for more information. There is no registration fee.

Last call! If you or your firm owns and or fee manages a portfolio of five or more land lease communities, or a minimum of 500 rental homesites (at one or more properties) you qualify to be listed in the 32nd annual ALLEN REPORT, scheduled for distribution as an addendum to The Allen Confidential! newsletter during January 2021. To obtain a questionnaire to complete, simply email me via gfa7156@aol.com or phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Will I see you at the RV/MH Hall of Fame Induction Banquet in Elkhart, IN., on 3 December 2020? Sure hope so! To purchase banquet tickets, phone (574) 293-2344. This is an ‘in person’ event.

George Allen, CPM, MHM
EducateMHC