Archive for December, 2020

Take Time Now, to Sit Back & Ponder…About What?

Monday, December 28th, 2020

Blog Posting # 619 @ 29 December 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 HTOLINE: (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: At least once annually, we owe it ourselves, peers, employees, and loved ones
To reflect on what’s been ‘good & bad’ about our business interests during the previous months. Have you done so yet? This would be a good week and weekend to start.

I.

Take Time Now, to Sit Back & Ponder…

About What?

Are you resigned to the covid pandemic malaise affecting manufactured housing production these days, i.e. raw material shortages and labor force fluctuations; or, committed to figuring out how to

• Encourage our industry’s HUD overseers to put their mouth where their writings have been for some time, and overtly promote manufactured housing as affordable housing!

• Markedly improve our industry’s access to home-only mortgage financing by, if need be, requiring loan security buy-in, on the part of land lease community owners.

• Engage in national product (manufactured housing) and brand (Big 3-C firms*1 & others) marketing and advertising via various public, business, and social media.

• Getting everyone using standard trade terminology, e.g. manufactured housing, land lease communities, homeowner/site lessee, resident (not tenant), and more….

And this list continues. For a complete listing of such Evergreen Issues*2, read the 32nd annual ALLEN REPORT, released this month as a Resource Document for PRIME subscribers to The Allen Confidential newsletter. (Visit www.educatemhc.com to subscribe & get the ALLEN REPORT).

Do you remember Ross Kinzler, retired executive head of the Wisconsin Housing Alliance? Well, in recent correspondence he commented on four manufactured housing industry-related issues that trouble his thinking these days (i.e. going into year 2021):

• There is NO industry acknowledgement that many land lease communities are ‘aging out’ these days. Their electrical systems and streets are failing. In rural areas, communities are always on the watch for failing septic systems. The contraction in the number of such communities is real and accelerating, due to these factors and urban encroachment.

• ‘Big Box = Big Bucks’ (1995 – 2005) was a trend the economic downturn destroyed, but it was not all a waste. It taught the industry it can compete with traditional homebuilding. However, the industry never fully faced the issue of what I call ‘building code conflicts’. For example, the HUD-Code allows for construction of stairwell openings narrower than IREC requires for stair treads. Fire alarm interconnection is another issue. The HUD-Code must be expanded to include code for the entire structure being fabricated.

• Where are the raw land developers? Land lease community new construction is nil. Where is the appetite to use manufactured homes in multifamily rental communities? Homes in full and completed developments, renting in the $1200-1900 range, would be hot!

• The industry needs a Task Force, ‘think tank’ or someone thinking and outlining plans for the future! One example would be an industry agreed upon development standard for new land lease communities. (Lightly edited. GFA)

Your reaction to all this? This is the mental exercise all manufactured housing executives and land lease community owners should engage in this time of year. Give it a try & let me know!

Yet another manufactured housing industry leader voiced this sentiment (criticism) in recent email correspondence:

“Meanwhile, (neither) Fannie or Freddie have any interest in chattel loans for would be manufactured housing buyers/site lessees. That’s where help is needed! That’s where the Duty to Serve is. And they (GSEs & FHFA) are nowhere to be found!” (Lightly edited. GFA)

End Notes:
1. Big 3-C Firms = Clayton Homes, CAVCO Industries, & Skyline-Champion
2. Evergreen Issue is content that is always relevant and timely.

II.

Did You Know?

Manufactured Housing Institute & its’ leader, Dr. Leslie Gooch, have been identified as being among the most influential lobbyists in Washington, DC. today. Good to know!

BUILDER magazine, in the current issue makes a positive nod to pre-built housing:
“One proven way to reduce the framing budget is with an offsite system, which consists of pre-built framing components such as wall, floor, and roof panels. Material costs are about the same as with site-built framing but, according to one leading panel provider, (one) can shave 11 framing days from a typical single-family home.” And later in the same magazine, this statistical gem: “A strong, well-trained workforce is critical to the industry due to housing’s outsized role in the economy, and there are possibilities for significant gob growth. Building 1,000 average single-family homes creates 2,900 fulltime jobs and generates $111 million in taxes and fees for all levels of government to support police, firefighters, and schools.” P.57

And how, during late 2010, at the annual Networking Roundtable, in Phoenix, AZ., Randy Rowe challenged nearly 200 land lease community owners, to implement a Five Part Market Share Recovery Plan:

• Better Home Warranties and Improved Customer Service for homeowner/site lessees
• Chattel Financing Matters, even with loss of 3rd party lenders, expect increased scrutiny
• Economic Security, for residents, via long term leases and fair rental homesite rates
• Multiple Listing Service. Nonexistent than; still the case, sad to say.
• National Marketing of housing product and communities. No movement here either.

For more detail on these five challenges, see p. 52 of SWAN SONG, available via www.educatemhc.com
***

George Allen, CPM, MHM
EducateMHC

Not ‘The Christmas Story’, but a Christmas Story Nonetheless

Tuesday, December 22nd, 2020

Blog Posting #618 @ 22 December 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 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: If you haven’t made arrangements yet, to receive the 32nd annual ALLEN REPORT (a.k.a. ‘Who’s Who Among Land Lease Community Portfolio Owners/operators Located Throughout North America!’), then do so this week! It will be distributed during January as a Resource Document to The Allen Confidential newsletter. Visit www.educatemhc.com And as a newsletter subscriber, you’ll also get to read the combined official ‘MHShipment Volume @ November 2020 & Stock Market Report @ 3 January 2021’. These are one-of-a-kind resources!

I.

Not ‘The Christmas Story’, but a Christmas Story Nonetheless

Ever since spending Christmas 1968 at Landing Zone Stud, a tenuous Marine redoubt located a few miles east of infamous Khe Sanh forward combat base , in the Republic of South Vietnam, I’ve held a special place in my heart for this holiday – and purposed to never spend it alone, without family, again. To that end, most Christmases, I stop and reread the title-less and anonymous poetic tale that follows here.

‘Twas the night before Christmas, he lived all alone.
In a one bedroom house made of plaster and stone.
I had come down the chimney with presents to give,
And see just who in this home did live.
I looked all about, a strange sight I did see,
No tinsel, no presents, not even a tree
No stocking by mantle, just boots filled with sand.
On the wall hung pictures of far distant lands,
With medals and badges, awards of all kinds,
A sober thought came through my mind.
For this house was different, it was dark and dreary.
I found the home of a soldier, once I could see clearly.
The soldier lay sleeping, silent, alone
Curled up on the floor in this one bedroom home.
The face was so gentle, the room in such disorder,
Not how I pictured a United States soldier.
Was this the hero of whom I’d just read?
Curled up on a poncho, the floor for a bed?
I realized the families that I saw this night,
Owed their lives to these soldiers who were willing to fight
Soon round the world, the children would play,
And grownups would celebrate a bright Christmas day.
They all enjoyed freedom each month of the year,
Because of the soldiers, like the one lying here.
I couldn’t help wonder how many lay alone
On a cold Christmas Eve in a land far from home
The very thought brought a tear to my eye,
I dropped to my knees and started to cry.
The soldier awakened and I heard a rough voice,
“Santa don’t cry, this life is my choice
I fight for freedom. I don’t ask for more,
My life is my God, my Country, my Corps.”
The soldier rolled over and drifted to sleep.
I couldn’t control it, I continued to weep
I kept watch for hours, so silent and still
And we both shivered from the cold night’s chill.
I didn’t want to leave on that cold, dark, night,
This guardian of honor so willing to fight.
The soldier rolled over, and with a voice soft and pure,
Whispered, “Cary on Santa, it’s Christmas day all is secure.”
One look at my watch, and I knew he was right,
“Merry Christmas my friend, and to all a good night.”

There really isn’t anything further that needs to be said here. Yes, but we’re ending what’s been a difficult year for many people around the world, fighting coronavirus, enduring erraatic economies, and some still seeking employment. But we’re enjoying a semblance of world peace, almost everywhere. So, join me today, expressing thanks to God for what we do have, and hope for a much different and improved New Year. GFA

***
George Allen, CPM, MHM
EducateMHC

Don’t Lower the Bar!

Thursday, December 17th, 2020

Blog Posting #617 @ 18 December 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 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: Talk about a disparate collection of topics in one blog; this one ‘takes the cake’, so to speak. Part I voices my concern the RV/MH Hall of Fame continues to enforce its’ high standards of selection for induction into that august body. Part II. Begins to make the case for needing an economist who studies, researches, and knowledgeably talks of the manufactured housing industry and land lease community asset class. And Part III is a mix of personal reflection and industry challenge, as to where helpful resources for land lease community owners/operators will come from in the not too distant future.

I.
Don’t Lower the Bar!

Induction Into the RV/MH Hall of Fame Should Never be
a Routine ‘End of Career’ Award.

More than 400 deserving RV & MH businessmen and women have been inducted into the prestigious RV/MH Hall of Fame since 1972. The inductees have been notable pioneers and leaders within their respective industries and segments thereof; founders and nurturers of companies; inventors and industry trend setters; and on occasion, charismatic leaders of industry advocacy groups, some of whom created venues advancing the interests of manufactured housing and recreational vehicles.

Website guidelines for nomination of individuals for induction into the RV/MH Hall of Fame:

• “Nominee must be, or have been, an active participant in any segment of the recreation vehicle or manufactured housing industries for a minimum of 25 years.”

• “Consideration will be given to nominee’s overall contributions to the good of the industry, to include both his or her positions, accomplishments, and innovations on the job as well as volunteer work both inside and outside the industry, with special emphasis on volunteer work done on behalf of state and national associations and owner groups, the Hall of Fame itself, and other industry-related organizations and causes.”

• And answer these two pithy questions: 1) “Is the nominee a respected, accomplished, honorable person who has done right by his/her business partners, and 2) Has the nominee contributed to the good of the industry beyond doing his job well?”

So, those are the high standards, pretty much in play since 1972.

During the past decade of four that I’ve been associated with the RV/MH Hall of Fame as a $ donor, meetings host, and 2011 inductee, I’ve noticed, in my opinion, slips in enforcing high standards of selection, during screening of candidates being considered for induction into this exclusive and honorable coterie of deserving individuals. Some examples of lowering the bar:

• Individuals inducted who’ve enjoyed decade’s long careers, with one or more firms or trade associations, but possess no worthy distinctions, like being a corporate founder, in receipt of significant industry honors, or having served as an elected national leader.

• Trade association executives nominating individuals who’ve been helpful to them, and said organization, but have no outstanding credentials nor received industry accolades.

• Courting of high wealth individuals for significant donations to the RV/MH Hall of Fame; who once inducted, disappear from the business scene via retirement and otherwise.

• End of tour awards. Here, individuals ‘everyone likes’ are recommended, but do not otherwise stand out among their peers, relative to implementing industry advances, filling key leadership roles, and or earning career distinctions and awards.

Enough already.
I am concerned about this matter since I’ve not seen or heard anyone else express concern, let alone awareness of such slippage. But given the number of applications and nominations now received at the RV/MH Foundation each year, it behooves the board of directors’ selection committee, to ensure continued selection of high quality inductees.
As two industries, MH & RV, we’re fortunate to have the RV/MH Hall of Fame as a high profile and seasoned means of annually honoring deserving individuals. Let’s not diminish this prestigious vehicle by compromising the high standards of selection for induction into the RV/MH Hall of Fame!
II.
Manufactured Housing Needs Its Own Economist!

Did you sit in on the MHI-sponsored webinar, 15 December, titled: ‘The State of the Housing Market & Implications for Manufactured Housing’? If you did, you learned Freddie Mac’s VP & chief economist, Sam Kahter’s Four Talking Points relative to the national economy at large (macro view), but very little about relevance to HUD-Code manufactured housing (micro view), even less so about land lease communities.
Four Points – as I recall them, due to too short time allowed for viewing the Power Point slide.
• National economy is still in the hole, and with latest resurgence of the coronavirus, pushing us deeper into that hole; e.g. 33 percent national economic decline last spring, but back halfway since then – now slowed.
• Some cyclical bright spots, including housing (but not manufactured housing, as it was not mentioned until later in the hour long presentation)
• Growth in labor market stopped for a while, started back strongly, but now slowed; e.g. 20 million jobs lost, but with 10 million reclaimed to date.
• Low inventory. Retail sales (e.g. home repairs and remodeling) recovered faster than industrial productions ability to keep up, due to supply and labor shortages.
Sam Khater is the first economist, I’ve heard or read to date, to attach the ‘2020 Coronavirus Recession’ label to what we’ve all endured from March 2020 to date.
This brings me back to the title of Part II of this blog posting: Manufactured Housing Needs Its Own Economist! Wonder how many of you remember we once had a Dr. degreed individual on MHI’s staff as ‘manufactured housing economist’? He didn’t last very long – due as I recall, to our industry ‘tanking’ once again. And though he did try to ‘survive & succeed’ as a freelance economist for the manufactured housing industry, in DC. that didn’t work out either.
So, why do we need our own economist? That should be obvious. When was the last time you sat and listened to an economist hold forth on the manufactured housing economy, relative to ‘supply & demand’, as well as researched benchmark statistics relative to housing production and sales, and land lease community operating parameters? And this information shortfall will not improve unless and until we do it ourselves as an industry and realty asset class!
III.
‘I’ve Accomplished My Goal Over & Over & Over Again!’
Some of this tale has been told before, in the pages of the semi-autobiography, history of land lease communities, and Official Record of MH Shipments, titled: SWAN SONG.*1 Specifically, I was a reluctant property manager when arriving on the ‘mobile home park’ scene in 1978. Initially perplexed with the four under-performing properties challenge ahead of me, I was soon motivated, when I committed to the Career Goal of creating and providing practical resources to a unique, income-property type that was primitive, unsophisticated, and under-appreciated at the time!
The rest of this tale will be told in the January 2021 issue of The Allen Confidential newsletter. In it I identify 18 products and services we enjoy today, as land lease community owners/operators, that did not exist in 1978. In fact, three of those 18 resources will be embodied in said newsletter (i.e. #1 resource), with 32nd annual ALLEN REPORT as an addendum (i.e. #2 resource); and, the ‘MHShipment Volume for November 2020, & Stock Market Report for early December 2020’ (i.e. #3 resource).*2
I encourage you to read the January issue of the newsletter, not only for the ‘first time’ information shared therein, but to ponder this question: ‘Who will continue the resource sourcing Career Goal, beyond year 2020?’ Oh, I’m not going anywhere, beyond semi-retirement, anytime soon (I hope), but the question bears thought and discussion. Otherwise, ‘someday’ no one will be looking after your business interests as we have (i.e. EducateMHC), since 1978. Think about it…
End Notes
1. Available for purchase via www.educatemhc.com or via phoning Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
2. Ibid.
***

George Allen, CPM, MHM
EducateMHC

First, the Good – no, Great News!

Wednesday, December 9th, 2020

Blog Posting #616 @ 9 December 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: Good News, Important News, & Bad News.

I.

First, the Good – no, Great News!

The RV/MH Heritage Foundation Board of Directors recently voted unanimously to build the long-awaited Manufactured Housing Museum wing on the northeast side of the existing RV/MH Hall of Fame. The 20,000 sq. ft., $1.5 million dollar museum will showcase the manufactured housing industry through use of exhibits, interactive displays, historical artifacts, and generational manufactured houses. It is only fitting this Manufactured Housing Museum be located in Elkhart, IN., the widely-recognized birthplace of this industry.

Do you know what this means? That, within a year or so, we’ll be able to visit the new museum, to see and hear the history of manufactured housing and land lease communities. That opportunity has been a long long time coming – and is finally here! Let’s all celebrate!

Donations are sought, to help get construction on the fast track to reality. Donations needed before 15 February 2021. For more information, phone (574) 903-3850 or dlseaarer@aol.com

II.

Now, the Important News!

Wonder if you’ve ever thought of the trifold matter in this fashion? For those who manufacture HUD-Code homes, and those who own/operate one or more land lease communities, there’s but ONE periodic (i.e. monthly) report that tracks the stock market performance of all four public housing manufacturing and five land lease community portfolio firms!

The ‘MHShipment Volume & Stock Market Report’, prepared during the first week of every month, and distributed as an addendum to that month’s issue of The Allen Confidential newsletter, debuted in January 2019. The monthly shipment volume total, contained therein, is the same as published by HUD’s contractor, the Institute for Building Technology & Safety (‘IBTS’), and endorsed by HUD, MHARR, & EducateMHC. The MHSV & SMR is the only document that estimates monthly and ‘year to date’ values of new HUD-Code manufactured homes ‘produced & shipped’. And not only are the stock prices posted for each of the nine public companies, but a composite stock price, for group tracking purposes, is posted as well. If not presently receiving and using this seminal document, do so soon. Subscribe via www.educatemhc.com

Second. For 32 years, the ALLEN REPORT has been the gold standard, so to speak, for identifying up to 20 percent of the 500+/- known land lease community portfolios in North America; also sharing their benchmark statistics like physical occupancy, operating expense ratios, site rent rates, number of rental homes and ‘contract sales’, even the number of Certified Property Managers (‘CPM’), Accredited Community Managers (‘ACM’), and Manufactured Housing Managers (‘MHM’) serving this real estate asset class. The 32nd ALLEN REPORT will be distributed during January as a Resource Document in that month’s issue of The Allen Confidential newsletter. To subscribe, as a PRIME subscriber, visit www.educatemhc.com

Third. Just as there’s but one ‘MHShipment Volume & Stock Market Report’, and only one annual ALLEN REPORT, there’s also just one professional property management text: ‘Community Operations in the Manufactured Housing Industry’. This 200+ page book, first published as ‘Mobile Home Park Management’ in 1988, has gone through eight editions, plus three title changes, during the past 32 years. Today it is the core text for the aforementioned Manufactured Housing Manager (‘MHM’) training and certification program. One of these comprehensive PM texts belongs on-site in every land lease community in the U.S. and Canada. To order individual copies or in bulk, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or visit www.educatemhc.com

III,

And Finally, the Bad News….

Don’t know ‘bout you, but I’m tired of reading and hearing of ‘a few bad actors’, again – so to speak, sullying good reputations of professional property managers and honorable land lease community owners! I suppose the coronavirus has kept a lid on homeowner/site lessee (a.k.a. residents, tenants) complaints, of various types, during the past year. Well, given the content of a recent communique from the social activist group Manufactured Housing Action, all that appears set to be changed come year 2021, as they press for ‘issue campaign wins’.

Specifically, land lease community residents in Missouri, Illinois, New York, Iowa, and California – to name a few locations, are ‘up in arms’ about what some – if not many, view as predatory rent increases and other related landlord-tenant frictions. MHAction’s thrust? To “…lead racial, gender-justice-centric (whatever that is) issue campaigns….” going into year 2021.

Bottom line? If you, as a land lease community owner/operator, do not want ‘rent control’ and other forms of landlord-tenant legislation, NOW is time to get busy understanding your customers better, and if need be, treating them better!

***

George Allen, CPM, MHM
EducateMHC

Tenant Site Lease Provisions (‘TSLPs’)

Tuesday, 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