Archive for December 11th, 2011

2012, a Watershed Year for MHAdvocacy? More than one way to implement radical change…

Sunday, December 11th, 2011

More Than One Way to Implement Radical Change…

I.

As a Major Paradigm Shift, Belatedly Effecting National Advocacy Change,

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Now’s time for this 60 year ‘double dual industry’, broadly comprised of

1) manufactured housing fabrication & distribution segments, and

2) landlease community developers, investors & managers,

to maybe ‘leave the MHI home’ and go their separate ways. Can YOU think of any other U.S. industry, where the product manufacturing and sales business model shares the same national political and regulatory advocacy presence with their commercial, wholesale, and retail customers? No? And that forced intimacy, as we know from history, makes for a fertile breeding ground for collusion on one hand (Think questionable chattel lending practices circa 1978 & 98) and conflicts of interest (Relative to land zoning perspectives), on the other!

Or simply,

The pronouncement of a ‘third choice’ national advocacy alternative for manufactured housing purists, landlease community owners, and everyone else in today’s MHIndustry and LLCommunity asset class.

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Nature of paradigm shift, radical change, third choice advocacy alternative?

First; one more time, review the present day status quo and previously recommended Radical Change at the Manufactured Housing Institute, proposed and described here, during the past several weeks:

• “A Congressional hearing takes place in late November 2011 in Virginia, and there’s no salaried spokesperson or advocate testifying in behalf of the Manufactured Housing Institute. MHI’s annual meeting takes place in Phoenix, AZ., earlier this Fall. Since then, there’s been little communication to direct, dues – paying members by its’ National Communities Council division, including follow – up of matters (e.g. CAS Task Force & more…) discussed at said meeting. And during a recent conference call with state manufactured housing executives, MHI’s chairman indicated there’s no rush to find a replacement for Thayer Long. That’s a brief summary of this industry observer’s ‘grassroots constituency view’ of manufactured housing (MHI) and landlease community (NCC) national advocacy to date. In other words, National Advocacy Choice # 1 = Maintain the status quo.” (Edited. GFA) Also probably why, for the first time since this weekly blog appeared 170 editions ago, some of its’ more than 500 readers have started calling and writing, asking, ‘Will MHI will be in business by year end 2012; and, whether they should pay dues this next year?’

• “…on 13 November 2011, this weekly blog posting proposed a Radical Change at the Manufactured Housing Institute. To wit, “Finally merge a renamed Manufactured Housing Association for Regulatory Reform (a.k.a. MHARR) with MHI, yes indeed, and make Danny Ghorbani executive – in – charge of all home manufacturing/distribution matters, and yours truly, George Allen, executive – in – charge of all landlease community owner/operator affairs!” In other words, this National Advocacy Radical Change = Choice # 2. (Edited. GFA). As a related aside, one has to wonder what the answer(s), and advocacy results, might have been, IF indeed, MHI’s elected leaders had made a serious overture to Mssrs. Ghorbani & Allen.

Since there’s been no recent encouragement from MHI’s elected and salaried leaders, that status quo choice # 1 will markedly improve during the weeks and months ahead; and, there’s been no interest expressed in pursuing National Advocacy Change, Choice # 2, by the same parties (With one marked exception), the stage is effectively set, and door opened wide, to introduce National Advocacy Radical Change, Choice # 3.

National Advocacy Radical Change, Choice # 3?

HUD Code home manufacturers who design and market a line of modular homes, might join the Building Systems Council (‘BSC’) of the National Association of Homebuilders (‘NAHB’). This is not without precedent. Champion Homes’ Genesis (modular homes) division already belongs; and, Clayton Homes, as well as Palm Harbor Homes (now part of the Cavco Industries family of companies) are past members of NAHB’s BSC. However, this alternative would leave ‘HUD Code only’ firms adrift and alone. A better alternative, in my opinion, would be for all HUD Code manufactured housing producers, large and small, to affiliate en masse, with a renamed Manufactured Housing Association for Regulatory Reform (‘MHARR’), to henceforth effect a stronger and united national advocacy presence relative to all manufactured housing PRODUCTION matters politic, and regulatory affairs.

Who knows? Maybe after 11 long years, we might see the Manufactured Housing Improvement Act of 2000 (a.k.a. ‘MHIA@2000’) finally fully implemented over HUD’s perennial resistance to our industry’s heretofore conflicted status quo national advocacy efforts.

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At the same time, either reorganize the Manufactured Housing Institute as a national POST PRODUCTION advocacy body, sans all HUD Code home manufacturers, henceforth focused on the needs and wants of ALL other segments of the manufactured housing industry, possibly including the landlease community real estate asset class.

OR, if indeed, the timing and motivating circumstances are now right and compelling,

Birth a new realty – based national advocacy ( & more) body, similar to the NAR, IREM, BOMA, NAA, NMHC, CA, CIREI, C of RE, REEA, NAREA, etc., to represent and advocate in behalf of 50,000+/- landlease communities, and their owners/operators, nationwide. And while at it, broaden that new body’s scope of products and services to include statistical research and reporting; weekly online and monthly print communication with members; viable and economical professional property management training and certification; an annual International Networking Roundtable event; periodic, confidential FOCUS Group meetings for top executives; as well as, preparation and distribution of key resource documents and directories long utilized, though heretofore prepared commercially, by individual and portfolio landlease community owners/operators nationwide. This would indeed be the welcome, needed, and long awaited dawning of a new and exciting day, decade, and future for landlease (nee manufactured home) community developers, investors, professional property managers, even the asset class’ homeowner/rental home site lessees!

The remaining segments, including state manufactured housing associations? That’d be a matter, as suggested earlier, best addressed by the reorganized MHI; or if need be, the new landlease community national advocacy and research/resource body.

The matter frankly, is almost as simple and straightforward as just described. Probably the biggest considerations, next to deciding on a national headquarters location, will be, ‘What to do with the annual Manufactured Housing Congress in Las Vegas, Nevada, each Spring?’ And, ‘How to best handle Washington, DC., lobbying in behalf of landlease communities and non – manufacturing segments of the manufactured housing industry?’ Yes, there’ll be a myriad of additional details to address, while implementing this paradigm shift, radical change, third choice national advocacy alternative. But what other ‘real choice’ do we have today? The status quo? Really?

With that said, what’s the next step in this radical change process?

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SUGGESTION. Print off & SAVE this ‘Radical Change Implementation’ blog posting for reference, during the weeks, maybe months ahead.

And remember, your input on this timely matter, and others, is requested, respected, and greatly appreciated! Correspond in confidence via: gfa7156@aol.com or phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or write to GFA c/o Box # 47024, Indpls, IN. 46247.

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II.

Maybe More Chattel $ for in – Community Home Deals

Remember awhile back, when the BEBA (Blast Email Blog Alert) message introducing that week’s blog posting, hinted at a new source of chattel capital for in – landlease community new home sales transactions? Well, progress is being made in that direction and to that end. Hopefully, in a few weeks or longer, we’ll announce the nature and launch of this new radical change (improvement) partnership, addressing the need to self – finance new home transactions and stimulate factory production and shipments.

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George Allen, CPM®Emeritus, MHM®Master
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156