Archive for January 18th, 2015

Immediate Responses to Blog Posting # 332

Sunday, January 18th, 2015

Copyright 2015 George Allen, CPM® & MHM® First North American Rights Only

This Has Not Happened, in this Volume, Before!

Within hours of today’s (1/18/15) blog posting at community-investor.com, multiple pithy responses, telling observations, & insightful questions poured back in response to ‘Look into Manufactured Housing’s Uncertain Future’ & ‘Evolution of the Manufactured Housing Business Model, Past, Present & Future!

These email responses came from HUD-Code home manufacturers, land-lease-lifestyle community owners/operators, state MHAssociation executives, and at least one freelance manufactured housing consultant. Obvious by their absence, was anything from national advocacy entities.

A sampling of what we’ve received so far, in no order of priority.

“Good commentary, you account for the ills of the industry! By mentioning tiny houses and energy efficiency momentum in the (same) sentence, it makes readers think how old HUD-Code (home) factories have not kept in touch with other forms of housing.”

“What do repurposed shipping containers and Tiny Houses have in common? Neither comes close to complying with building codes, and building inspectors are turning a blind eye to them. Why? Because both (forms of housing) are sexy and inspectors don’t want to be seen as anti-green.”

‘Excellent post today George! Unusually well written. Is there a soon-to-be-announced editor in the works for COBA7®?” (Answer: Yes; stay tuned to this weekly news source)

“I say ‘bring on the new (DOE energy efficiency) rules’. Let’s be the most energy efficient housing (type). BUT, only if we are willing to tell that story in a Big Way, and we tie it to the 40th anniversary of the HUD-Code.” – (coming in 2016)

‘When will we hear more about the Pre-Purchase Counseling (‘PPG’), and lease-option?” (Answer: As soon as I hear and see more material on the two timely, strategic topics!)

‘I hope to see something other than a 1970s ranch home in Louisville (this week). Our designs are boring. Affordable doesn’t have to be boring. If (manufacturing) plants say ‘Yes they do’, then lack of sales (i.e. home shipments) is their fault.”

“Good comments about the changing (or changed?) MH business model and ‘green’ interest in manufactured housing. The Community Series Home (trend) during the past 5+ years (i.e. since National State of the Asset Class caucus on 2/27/2009 in Elkhart, IN.) has had significant affects on the MHIndustry. We’ve always had two to three distinct (HUD-Code) housing segmentations, e.g. lower priced & functional, versus ‘big box – big bucks’. Now we clearly differentiate between the two. While profit margins in the former are lower, I think it represents the sustenance of the MHIndustry today, because the latter segment is much smaller – competing head to head with site-built housing, and financing is tough (i.e. those who qualify for a $75K MH can also qualify for a lower interest $100 K site-built home.” We now know CSH Model homes, with one or more WOW! factors and a plethora of durability-enhancing features (to ease make-ready, between homebuyers and renters), are the favored housing type for in-LLLCommunity installation on rental homesites.

“Comments from a leading MH manufacturer, recently, that ‘MHIndustry can survive with 80,000 homes shipped per year, (given) increasing stability of LLLCommunity owners/operators, (a.k.a. ‘New Breed of MHRetailer & Lender’), suggest to me, we may actually have a future! A national advertising program supported by an organization representing interests of those actually selling new manufactured homes – (Again, the ‘New Breed of MHRetailer & Lender’), with more focus on ‘green’ and a return of ‘some form of chattel financing’ – that works when homebuyer and owner/operator have ‘skin in the game’, are what the MHIndustry needs most and now!”

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