Archive for February, 2018

‘Once in a Career’ & ‘Follow the Money’!

Tuesday, February 20th, 2018

Blog # 477; Copyright @ 18 February 2018; community-investor.com

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

This blog posting is the sole national advocate, voice, official ombudsman, historian, research report & online communication media for all North American LLCommunities.

To input this blog &/or affiliate with Community Owners (7 Part) Business Alliance, a.k.a. COBA7, use Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

COBA7 Motto: ‘U Support US & WE Serve U!’ Goal of its’ print & online media =
to not only inform & opine, but to transform & improve MHBusiness performance!
_____________________________________________________________________

INTRODUCTION: Hey, a minor tweak to blog # 476. MHIndustry shipped 92,905 new HUD-Code homes during year 2007, NOT in 2018, as stated! Sorry ’bout that. If you own a copy of SWAN SONG, be sure to insert that 92,205 into the space left for it in Figure A in chapter # 1 of the ‘History of the Land Lease Community Real Estate Asset Class.

What’s to be found here in blog # 477? A Call for Immediate Action by everyone with ‘skin in the game’ of manufactured housing & land lease communities! And that’s YOU!

Then a view of the soft underbelly of FHFA & GSEs, where $ distribution is concerned. Confident you’re not aware of the deep state political $ carryover that apparently carries more weight than maxing out DTS to get manufactured housing healthy again.

I.

A ONCE IN A CAREER OPPORTUNITY FOR YOU!

Before 26 February, Identify for Review, Specific Troubling HUD Rules & Regulations Relative to Manufactured Housing & Land Lease Communities

That’s right, this is a very short fuse, potentially explosive opportunity, for manufactured housing aficionados and land lease community owners/operators, to directly input HUD concerning rules and regulations that have been hindering new housing fabrication and home placements for the past decade or more.

How to do this? Four immediate courses of action enable you to respond by 26 February:

• Go to www.regulations.gov When asked to identify the focus of your remarks, enter: Docket No. FR-6075-N-01 Regulatory Review of Manufactured Housing Rules. Then, in 5,000 words or less, type your list of troubling HUD rules & regulations relative to manufactured housing & land lease communities!

• Contact the Manufactured Housing Institute (‘MHI’) via (703)558-0400, and ask them allow you to sign onto their electronic communication to HUD on this important matter, or provide you a model letter to immediately emulate and mail!

• Contact the Manufactured Housing Association for Regulatory Reform (‘MHARR’) via (202) 783-4087, & ask them to provide a model letter, identifying salient issues for review & improvement, to emulate and mail to HUD!

• Contact the Community Owners (7 Part) Business Alliance (‘COBA7’) via gfa7156@aol.com, and request a copy of their letter being sent to HUD this week.

If you miss this ‘once in a career opportunity’ you only have yourself to blame!

II.

FOLLOW THE MONEY!

Yes, the Federal Housing Finance Agency (‘FHFA’) approved Government Sponsored Enterprises (‘GSE’) – read Fannie Mae & Freddie Mac – long-awaited but profoundly disappointing Duty to Serve (‘DTS’) pilot programs that will serve a mere 1.8 percent of manufactured housing purchases through to year 2020. Some say this will pencil out to between only $1.5 to 2 million dollars.

HOWEVER

According to a recent (18 February 2018) article in the Washington Examiner, “Fannie said it planned to make a $239 million payment to (affordable housing) trust funds this quarter, and Freddie said it would disburse $114 million.”

HUH?

Yes, you read that right. The two GSEs, combined, are donate $353 million (versus $1.5 – 2 million in manufactured housing mortgages) to affordable housing trust funds, groups that some – if not many – in the manufactured housing industry view as being housing supply competitors.

WHERE IS THE PARITY IN THIS?

Should we, as manufactured housing industry businessmen and women, once and for all, now see how little regard the GSEs really have for our type quality affordable housing, when it comes to their supporting of subsidy and entitlement programs?

WHAT DO YOU THINK?

III.

20th National Registry of ALL Lenders to be Distributed in Early March 2018!

Only the clamor for the annual (19th) ALLEN REPORT, a.k.a. ‘Who’s Who Among Land Lease Community Portfolio Owners/operators Throughout North America!’ exceeds enthusiasm for the annual (20th) National Registry of ALL Lenders!

Both Signature Series Resource Documents (‘SSRDs’) are researched and updated annually by the Community Owners (7 Part) Business Alliance. Both are distributed to Option II level COBA7 affiliates. To affiliate with COBA7, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

This time around, the 20th National Registry of ALL Lenders identifies and lists more than $5 billion in acquisition and refinance mortgages, for land lease communities, originated by no fewer than 25 lenders and loan brokers located throughout the U.S! And the names and contact information for more than 50 loan originators are listed for reference by would be borrowers.

And, of course, there’s a directory of independent, third party chattel capital lenders who specialize in mortgages for manufactured housing sited within land lease communities. Also contact information.

Lease-option is fast becoming the new home finance option of choice in many regions of the U.S. Information is included about that option as well.

And finally, as most blog floggers (readers) know, a movement has been afoot, since 17 January 2018, in Louisville, KY, to create a hybrid form of chattel capital tailored to the land lease community environment! A second meeting, of all interested parties, will occur during the lunch hour, 20 March 2018, at the Tunica MHShow in Mississippi. To be ensured an ‘invite’, email genevieve@roane.com Be a key part of land lease community history!

***

George Allen, CPM, MHM
Box # 47024, Indianapolis, IN. 46247
(317) 346-7156

92,902 New HUD Code Homes Shipped in 2017 & Time for New Tactics & Improved Strategy

Friday, February 16th, 2018

Blog # 476; Copyright @ 11 February 2018; community-investor.com

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

This blog posting is the sole national advocate, voice, official ombudsman, historian, research report & online communication media for all North American LLCommunities

To input this blog &/or affiliate with Community Owners (7 Part) Business Alliance, a.k.a. COBA7, use Official MHIndustry HOTLINE: (877) MFD-HSNG or gee-4764

COBA7 Motto: ‘U Support US & WE Serve U!’ Goal of its’ print & online media =
to not only inform & opine, but to transform & improve MHBusiness performance!
______________________________________________________________________

INTRODUCTION. Never before have we lived and worked in such exciting times!

Manufactured housing shipment volume continues to rise – albeit slowly. More and more new HUD-Code homes are being sold, and often seller-financed, within land lease communities nationwide! Beyond the exciting developments described in the following paragraphs, what we need now as an industry is to, STOP WORRYING about what we call ourselves, and what outsiders call us, and concentrate on WORKING TOGETHER to Sell, Ship, & Seller-finance More HUD-Code Manufactured Homes! In just Four Words, we are 1) HOUSING, & 2) LAND LEASE COMMUNITIES! Nuff said!

&

Here’s ‘the Question of the Month! ‘Which large U.S.- based portfolio owner/operator of land lease communities purchased ten such properties, in Canada, from their Canadian owner – and is keeping the acquisition Very Quiet? Answer? When the identity is made known, you’ll likely read about it First in the Allen CONFIDENTIAL! business newsletter or the Allen Letter professional journal. To ‘subscribe’, affiliate with the Community Owners (7 Part) Business Alliance, or COBA7. See masthead information above…

I.

92,902 New HUD-Code Homes were Shipped During 2018, with an Estimated Production Value of $4,000,000,000.00 (Yes, that’s ‘billions’ of dollars!). Now the Big Question Emerges: When Will the Manufactured Housing Industry Likely Reach Its’ 200,000 Homes ‘Sweet Spot’? Think about that….

Yes, you read that right! HUD’s contractor, the Institute of Building Technology & Safety (‘IBTS’), provided monthly new manufactured housing shipment totals throughout 2018 – unadulterated by ‘minus & plus’ shenanigans with DESTINATION PENDING units each month. Then HUD, MHARR, & COBA7 totaled said monthly shipment totals to realize the 92,902 annual total for year 2018! And that’s the 2017 annual MH shipment total that’ll be written into the industry’s official archives.

Furthermore, using MHI contractor Dr. Stephen C. Cooke’s ‘production value’ of $43,126 per housing unit – based on year 2013 ‘shipment # & $ data’ – it pencils out that those 92,902 new HUD-Code homes are valued at approximately $4,000,000,000.00!

Here again is that timely question: At the current rate of new manufactured housing shipments, from year 2009 thru 2017, when will the manufactured housing industry likely hit its’ ‘sweet’ spot’ of 200,000 units? Answer? That’s the headline story in the March 2018 issue of the Allen Letter professional journal – as well as a key news bite in the same monthly issue of the Allen CONFIDENTIAL! (‘TAC!’) business newsletter. Seriously. We have this figured out. Sure it’s not ‘carved in stone’, but makes perfect sense when one researches the numbers and trends. You don’t want to miss this story!

Again, if not already receiving the Allen Letter or TAC!, but would like to do so, simply phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or email me via gfa7156@aol.com.

II.

‘A Call for New Tactics & Improved Strategy’

…to restore reasonable access to chattel capital for on-site financing of new HUD-Code home sales transactions within land lease communities; and, increase the number of new HUD-Code homes shipped monthly – especially into this unique, income-producing property type, i.e. 24% in 2009; 40% in 2015; & 75% by 2020!

This CALL initially went out during January, beginning with the historic meeting among dozens of land lease community owners, at the Louisville MHShow, on 17 January 2018. If you didn’t receive a copy of this ‘Call for New Tactics & Improved Strategy’ – you should want one. Simply, again, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or email me via gfa7156@aol.com.

Among the six recommended ‘Further Action’ recommendations, listed therein, were these two:

• “Land lease community owners come together to create and use a hybrid form of HUD-Code housing chattel finance, using time-tested parameters of existing loan programs, to create a WIN, WIN, WIN situation for lenders, homeowners/site lessees, and land lease community owners seller-financing homes on-site.”

• “Land lease community owners, if need be, to retain services of a Washington, DC., manufactured housing consultant, ensuring these chattel finance concerns are front-and-center at all FHFA & GSE meetings.”

Well, the first one materialized at the aforesaid 17 January meeting in KY. A second meeting will occur during the Tunica MHShow! Want to attend? If you seller-finance new and or resale manufactured housing on-site in one or more land lease communities, You Need to be Present! To do so, email genevieve@roane.com and request your name and contact information be placed on the rapidly growing Hybrid Loan Information & Invite List.

The second bullet point? We’ve identified a Washington, DC – based freelance consultant who ‘knows’ the manufactured housing industry well, and is available to represent land lease community owners/operators in matters legislative and regulatory. So, pretty impressive progress during the past month or so.

Back to the first bullet point.

Today’s status of a new hybrid loan program? In very general terms:

At least one independent chattel capital source (firm) has stepped forward and expressed strong interest in partnering with (small to mid-sized) land lease community owners to this end!

An other lender is very interested in marketing and selling seasoned chattel loans in behalf of land lease community ‘lenders’, freeing up capital to fund more new home purchases.

But there’s still a lot of work to be done re: funding issues, underwriting standards, nature of guarantees, GSE-preferred leases and community standards, and much much more.

Well, that’s all for now. If this timely and strategic topic interest you, plan to be at the Tunica MHShow, 20-22 March 2018. Ensure your name is on the Hybrid Loan Information & Invite List; then attend the special land lease community owner luncheon!

***

A postscript of sorts. Have you reserved the dates 5-7 September on your planning calendar for 2018? Please do so, as that’s when at least 200 land lease community owners/operators, and their preferred lenders ‘of all types’ will convene for the 27th annual International Networking Roundtable. Making the location decision this week.

***

George Allen, CPM, MHM
COBA7
Box # 47024,
Indianapolis, IN. 46247
(317) 346-7156