HR5302; Big 3-C Mfr. Ads; & MHAlive!

July 27th, 2016

Blog # 407 Copyright 2016 COBA7® @ 31 July 2016, community-investor.com

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media for North American LLLCommunities!

To input this blog &/or affiliate with Commu9nity 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 =
‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION. What follows here, are a couple of the salient and pithy topics scheduled for open discussion at Monday’s (1 August 2016) MHAlive! ‘Think Tank’ session in the library of the RV/MH Hall of Fame in Elkhart, IN! Even as you read these lines, it’s not too late to participate. Just be in the library before 9AM, when we start with ‘manufactured housing’, and at 10:15AM when we switch to LLLCommunity matters until 11:30AM. No fee to attend. Just come with an open mind and willingness to ‘think inside & outside the box’ relative to industry/asset class issues and challenges! Hope to see you there. Phone (317) 346-7156 to let me know you’re coming. Thanks, GFA

I.

Why Don’t ‘Big 3-C, HUD-Code Home Manufacturers’ Advertise Large, Like the Major Automobile Brands?

Reacting to a headline in his local business press, which read: ’Home sales are at the fastest pace in years!’, a land-lease-lifestyle community owner, queried his business associates: “A question for others higher up the chain than me: Why aren’t MH sales, of our affordable housing product, matching this trend? Is it interest rates or something else beyond our control?” Hmm. Good question.

To which, one of his fellow LLLCommunity owners replied:

“Here’s my take on the matter. People don’t buy what they don’t know about! What other industry produces and sells a product whose target market amounts to 100,000,000 US consumers, but does not have a national advertising campaign? Reminds me of the definition of insanity.*1 Don’t look to either of ‘our national advocacy organizations’ to organize, promote, & execute a national (advertising) program – they are ONLY national lobbyists. A good part of what we all now pay for ‘dues’, on the new homes we buy, should start going to another organization, one that handles a national brand advertising program! The $100.00 floor fee, on each of the 70,544 new HUD-Code homes shipped during 2015, would have funded $7,054,400.00 to this end! While that amount would not buy many Super Bowl ads, it would surely generate a heck of a lot more manufactured housing product awareness than we have now!”

But is that the whole story? No it’s not; nor do I think we’ll ‘answer the leading question’ in this op/ed piece; however, some historical statistical background data might set the stage for the transfer of national brand advertising dollars away from Washington lobbyists, in toto or via each of the Big 3-C firms, to a marketing entity capable, experienced, and motivated to bring maximum product exposure to the manufactured housing industry! Here’s the data.

Remember last week’s ‘first time ever published’ stats describing HUD-Code home manufacturers 38 year consolidation, between 1977 and year end 2015?

• In 1977, the Top 25 ‘mobile home’ firms shipped 70 percent, or 186,462 new homes of the 265,651 manufactured that year! Consolidated national MH brand advertising did not occur that year, and it’s doubtful it ever will, when more than two dozen ‘players’(corporate egos) must agree with ad design and placement.

• In 2015, the ‘Big 3-C’ HUD-Code firms*2 shipped 71+/- percent, or 50,086 new homes of the 70,544 manufactured that year! Consolidated national MH brand advertising still has not occurred, but certainly makes more sense, now there’re but ‘three’ decision-makers, and not 25. However, to do so, two of the ‘players’ must overcome concerns about further consolidation; and all three, in the past, have worried (rightly or wrongly?) about smaller home manufacturers benefitting from their largesse.

As an industry, we already know we’re 16 years into a major business model paradigm shift – where LLLCommunity owners/operators are rapidly supplanting independent (street) MHRetailers as major purchasers of new HUD-Code homes, often Community Series Homes, from manufacturers. As you’ll likely recall, in 2009, when the MHIndustry hit its’ shipment nadir (lowest point ever), only 25% of new HUD-Code homes went into LLLCommunities nationwide. That percentage blossomed to 40% by year end 2015; and some say, we’ll likely hit 75% by year 2020. No wonder, pundits are calling this the NEW ERA for Manufactured Housing!

That said, the ‘Big 3-C HUD-Code home manufacturers’, in this veteran industry observer’s opinion, should want to ‘Get the word out!’, as suggested by the first LLLCommunity owner quoted at the beginning of this piece. After all, LLLCommunity owners/operators are now commonly referred to as being the ‘New Breed of MHRetailer & Lender’. ADVERTISE MORE & Get the traffic a-coming into Salescenters, off and on-site, in these properties coast to coast. This ‘NEW ERA of Manufactured Housing’ is entering a tender stage, where it will further blossom (with aid of national advertising) or stall – given the continued difficulty of accessing chattel capital. Which will it be?

The major stumbling blocks to national brand advertising? Apparent lack of such advertising expertise among the ‘Big 3-C firms’, and lack of a national trade body skilled at orchestrating an aggressive, collective, first ever, national ad campaign! With that said, however, beware those who’ll surely step forward, after reading this op/ed, and offer their services. The acid test = If they’re so GOOD, about what they offer to do, they’d be doing it now with a flair, for themselves, and or another company or companies.…

End Notes.

1. Definition of insanity attributed to Albert Einstein: “Doing the same thing over and over again and expecting different results”

2. Big 3-C HUD-Code home manufacturing firms: Clayton Homes, Cavco Industries, Champion Home Builders

II.

SO, What do YOU Know about HR5301, the Seller Finance Enhancement Act?

The HR5301 legislative initiative has taken MHI, MHARR, & COBA7® by surprise! As I pen these words, on 26 July, all of us are scrambling to sort out the content of this bill to ascertain:

Is it indeed the proverbial and much-needed ‘silver bullet’ for small to mid-sized LLLCommunity owners/operators (i.e. making seller finance transactions OK for ‘mobile homes’ but limited to 24 per year), or is it just another false start to come down the legislative highway during the past decade or so?

In the meantime, to learn more about it, go to www.sellerfinancecoalition.org/learn-more

And continue to rely on this weekly BEBA (Blast Email Blog Alert) and blog posting to keep you informed of matters just like this.

III.

MHAlive! ‘Think Tank’ on 1 August at RV/MH Hall of Fame in Elkhart, Indiana

This is why you’re receiving this weekly blog posting four days early; to give you one last chance to beat feet to Elkhart, IN., on Sunday 31 July, to be in place at 9AM Monday morning, in the library of the RV/MH Hall of Fame (21565 Executive Parkway), to participate in the manufactured housing industry’s inaugural MHAlive! – a ‘Think Tank’ experience for anyone in the industry or realty asset class who wants to participate and engage in open discussion of industry issues and other matters. No fee. Just phone (317) 346-7156 to let me now to expect you.

This is the ‘real deal’ and a ‘real $ deal’ for you! Up until a year or so ago, the Urban Land Institute’s Manufactured Housing Communities Council (‘MHCC’) convened in similar fashion, a couple times each year – but you had to be a member or invitee to attend, and even then, it cost one upwards of $1,000 – 2,000 to participate! MHAlive!, again, is FREE, to MHIndustry & LLLCommunity aficionados. Will you be present?

So, what’re we going to be talking about that morning? The preliminary agenda, published in this blog series a few weeks ago, remains unchanged.

MANUFACTURED HOUSING

• Status of chattel capital & Duty to Serve rulemaking – with emphasis on ‘lack of creative thought to date’ = “a conspiracy theory busman’s holiday”; status of MHI’s bill; & more on HR5301.

• Are one or more forms of hybrid chattel capital on the horizon for the MHIndustry? This seminar description from the 25th anniversary Networking Roundtable, hints: “Wise business people look at where they’re already having success, and try to do more of it! There’s one company in the LLLCommunity business, currently operating with Fannie Mae ‘home only’ loan product in some of their properties. How does it work? What are the key elements of the program? Is it a new model for ‘home only ‘loan production with the GSEs?” No details at MHAlive!, just promise of ‘what’s to come’….

• Status of DOE energy regs and when to expect ‘net zero energy use’ MHomes? (Hint: 2020 in CA). COBA7® was at recent DOE public hearings & will share some startling observations about attendees and the proceedings. Not a pretty picture.

• Finally. Able to quantify the $ impact MHProduction (alone) has on the national economy, Come and learn the secret sauce (Hasn’t been written about by anyone else yet…)

• Corporate consolidation. The topic of last week’s and beginning of this week’s blog postings…

• ‘Two Days of Plant Tours & Home Sales Seminars’. Two exciting announcements!

• Be aware & beware HUD-Code home shipments numbers being reported differently by IBTS, HUD, MHARR, COBA7®, vs. MHI. Why does this self-immolation continue?

OK, those are the manufactured housing topics. And there’re seven more, relative to the LLLCommunity asset class, but we won’t go into them here.

Decide now whether you want to swoop to Elkhart, IN., over the weekend to participate in MHAlive!

Besides phoning me, consider hanging around the rest of the day to attend the RV/MH Hall of Fame Induction Banquet that evening. To make a reservation and buy banquet tickets, phone (574) 293-2344. Hope to see you there!

***

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

Never before published MHIndustry statistics!

July 23rd, 2016

Blog # 406 Copyright 2016 COBA7® @ 24 July 2016; community-investor.com/blog

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media for North American LLLCommunities!

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 = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION. Our office phone continues to ring, as callers inquire about last week’s blog’s thinly-veiled description of a shadow agenda affecting manufactured housing, specifically within the home manufacturing and chattel capital finance segments. This week? DISTRIBUTION & CONSOLIDATION trend stats never before published! And finally, the ice may be breaking around FHFA’s Duty to Serve (‘DTS’) rulemaking ice dam.

I.

MHAlive! Presages Networking Roundtable

(a.k.a. 2016 Chattel Capital Summit)

1 August & 7-9 September, are shaping up as two highly important dates during year 2016, for cerebral consideration of manufactured housing’s recent past, present, and near future Zeitgeist (‘spirit of the time’), summarized as the NEW ERA for HUD-Code manufactured housing.

MHAlive! occurs the morning of 1 August, from 9-11:30AM in the library of the RV/MH Hall of Fame in Elkhart, IN – the same day ten RV & MH industry leaders and pioneers will be inducted into the prestigious RV/MH Hall of Fame! No charge to attend MHAlive, just phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to let us know you plan to attend. For RV/MH Hall of Fame banquet tickets, phone (574) 293-2344. Location for both events? 21565 Executive Parkway, Elkhart, IN. 46514.

25th anniversary Networking Roundtable. Occurs 7-9 September, at the Gaylord Opryland Resort Hotel & Conference Center in Nashville, TN. Event brochure attached to BEBA (Blast Email Blog Alert) announcing this blog posting. Or phone the MHIndustry HOTINE & request a hard copy be mailed to you ASAP.

So, what’s the Big Deal about ‘manufactured housing’s recent past, present, and near future Zeitgeist’, a.k.a. NEW ERA for HUD-Code manufactured housing?

In retrospect (‘contemplation of the past’) it’s SIMPLE; however, looking forward, it’s also COMPLICATED and unpredictable….

DISTRIBUTION.

First example. Manufactured housing’s now 16 year paradigm shift, relative to DISTRIBUTION of its’ shelter products; and WHY?

Well known today, is the disappearance of 10,000+/- ‘independent (street) MHRetailers’ (By the way, do you know freelance consultant Bill Carr is the one who coined that descriptive term?), but not ‘company stores’, from the distribution system for HUD-Code manufactured homes. And how, today, they’ve been replaced in large part – but certainly not completely, by land-lease-lifestyle community (‘LLLCommunity’) ‘owners/operators’ (A term originated by David Helfand, formerly with ELS, Inc. & ARC portfolios) selling and oft seller-financing new homes on-site! You know ‘the numbers’: 25% of shipments into LLLCommunities during 2009; 40+% in 2015; and, an estimated 75% by year 2020.

What precipitated the paradigm shift? Suicidal loss of easy access to chattel capital at the turn of the 21st Century.*1 A sorry matter that continues unresolved; despite professed openness, on the part of the Federal Housing Finance Agency (‘FHFA’), and GSEs (Fannie Mae & Freddie Mac), to consider creative alternatives (one of which will be hinted at later in this blog posting) to get ‘home only’ $ chattel capital – or a hybrid form thereof, flowing to the manufactured housing industry.

CONSOLIDATION.

Then there’s CONSOLIDATION. Everyone, in the MHIndustry, ‘knows about it’, but few ‘talk about it’ much, at least not openly.

First, the REALTY segment. Between 1988 (When first ALLEN REPORT was researched; published in early 1989) and year 2016. In 1987, the TOP 25 (then) ‘mobile home park’ portfolios (owned/operated 181,705 rental homesites), then grew, through consolidation, to 500+/- portfolios throughout the U.S. & Canada – with the 120 LLLCommunity portfolios identified in the 27th ALLEN REPORT, owning/operating 841,796 rental homesites! Just imagine how many all 500+/- ‘players’ own/operate these days….

Consequences? A half dozen real estate investment trusts (‘REIT’s), but with only three in business today; multibillion dollar portfolio transactions occurring during 2016; a precipitous decline in property owner memberships within most state MHAssociations nationwide; and, formation of two national advocacy entities: MHI’s National Communities Council (‘NCC’) division in early 1996, and the Community Owners (7 Part) Business Alliance® or COBA7® in early 2014.

Then there’s the ongoing consolidation of the MANUFACTURING segment of the MHIndustry. During 1977, the TOP 25 ‘mobile home manufacturers’ (A list headed by Skyline, Fleetwood, Champion, Guerdon & Wick) shipped 186,462 new mobile homes, exactly 70 percent of national market share (265,641 total shipments during 1977)! Today, the TOP 25 firms of 1977, have been consolidated (except for Skyline) into mainly, the ‘Big 3-C’ HUD-Code home manufacturers: Clayton Homes, Inc., Cavco Industries, Inc., & Champion Home Builders, Inc. National market share for the ‘Big 3-C’ firms together? 71+/- % of 70,544 new manufactured homes shipped during 2015, with 40+/-% alone shipped by Clayton Homes, Inc.

Bottom line? 25 manufacturers shipped 70 percent of all new ‘mobile homes’ in 1977; and, three manufacturers shipped 71+/- percent of new manufactured homes during 2015. Consequences? Some good; others not so much…

These are but two of the NEW ERA Zeitgeist matters open for discussion at MHAlive! and the 25th anniversary Networking Roundtable. Will YOU be present for either or both venues?

End Note.

1. Given the opportunity, read a reprint of the Manufactured Home Merchandiser magazine classic, circa year 2000, ‘Upside Down in a Mobilehome Park’. FREE copy ‘for the asking’ when you phone (317) 346-7156 or request it via email.

II.

FHFA: Wants Duty to Serve (‘DTS’) Ideas for Serving Underserved (‘MH’) Markets!

This from a 21 July Press Release from the Federal Housing Finance Agency, titled: ‘Update on FHFA’s Proposed Rule on Duty to Serve Underserved markets’:

‘The…goal of Duty to Serve proposed rule is to increase the availability of mortgage financing in a safe and sound manner for very low, low, and moderate-income families across the country. FHFA, as regulator of Fannie Mae and Freddie Mac, will oversee the development of the Enterprises’ plans to meet their Duty to Serve Requirements.”

And this, a Networking Roundtable presenter’s description of the topic he address on 8 September in Nashville, TN:

“Wise business people look at where they’re already having success and try to do more of it! There’s one company in the LLLCommunity business that’s currently operating with Fannie Mae ‘home only’ loan product in some of their communities. How does it work? What are the key elements of the program? Is it possibly a model for a ‘home only’ loan program with both GSEs?”

You’ll have to be present for this session to learn the details from a CEO who’s creatively answering the FHFA’s Duty to Serve challenge! Perhaps more will follow his lead after the roundtable event ends…

Phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 for a brochure describing the agenda for this 25th anniversary Networking Roundtable, 7-9 September, in Nashville, TN.

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

COBA7 Goes to Washington; New Top Ten List; &, MHAlive!

July 15th, 2016

Blog # 405 Copyright 2016 COBA7® @ 17 July 2016; community-investor.com/blog

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media for North American LLLCommunities!

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

COBA7® Motto = ‘U Support US & WE Serve U!’ Goal of its’ print/online media = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION.

COBA7® ‘Goes to Washington’; Creates New ‘Top Ten List’ of HUD-Code Home Shippers; and, Refines ‘MHAlive! Think Tank Agenda’ for 1 August morning session at RV/MH Hall of Fame library, in Elkhart, IN.

I.

COBA7® Goes to Washington!

‘No one in Washington, DC., knows what a land-lease lifestyle community is, let alone a manufactured home community – only a ‘mobile home park’!’

Community Owners (7 Part) Business Alliance® traveled to our nation’s capitol twice during the past few months to participate in public meetings hosted by the Federal Housing Finance Agency (‘FHFA’), and the Department of Energy (‘DOE’). In the first instance, proposed Duty to Serve (‘DTS’) rulemaking, relative to chattel capital and LLLCommunity finance were the foci. This past week at DOE, the focus was on ‘energy conservation standards proposed rulemaking for manufactured housing’.

Here are my ‘takeaways’ from both meetings; in the first instance (#1) ‘seasoned’ by the passage of time (a few weeks) and confidential conversations; and this week, (#2) the stark realization no one is aggressively representing the business interests of our unique income-producing realty asset class!

(#1) Try this on for size. Federal regulatory agencies and GSEs are appear frustrated at the manufactured housing industry’s reluctance & reticence to suggest new or even past, creative or mundane, means & ways, to start or increase, the flow of chattel capital from new or renewed sources (e.g. local lenders of various types) to fund loans on new home sales occurring within land-lease-lifestyle communities nationwide! It appears the chattel capital status quo, presently enriching a couple large, well-positioned & politically savvy firms, will not be challenged, let alone supplanted, by national advocates claiming to represent the manufactured housing industry at large.

The sole ‘breath of creatively fresh $ air’ occurred when Freddie Mac recently guaranteed a $3,600,000.00 mortgage on an ROC (resident-owned community) in CA

Point? This is a first time, one-off finance happenstance (‘fortuitous happening’) that could likely be replicated in the ‘home only finance’ arena with some creative thought!.

If you’d like to dig deeper into this alleged marginalization of DTS rulemaking, be present at the MHAlive! Think Tank session, 1 August at the RV/MH Hall of Fame library in Elkhart, IN.; and or the ‘2016 Chattel Capital Summit’ as part of the 25th anniversary Networking Roundtable at the Gaylord Opryland Resort Hotel & Conference Center in Nashville, TN., on 7-9 September 2016. For info on both, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

(#2) When HUD-Code housing manufacturers start adding $2,000 – $4,000 to the wholesale price of every new singlesection & multisection manufactured home – to implement new energy conservation standards, LLLCommunity owners/operators (selling said homes on-site) will surely ask: ‘When, how and why did this happen?’ Know what the answer has to be? ‘Between 2007 & 2016, at the behest of the federal government, working with energy conservation and manufactured housing advocacy groups, but with no one truly representing the business interests (i.e. MHSales efficacy & profitability) of LLLCommunity owners/operators!’

Read kinda harsh? It was meant to be. Why? Before COBA7® attended the DOE public hearing on 13 July 2016 in Washington, DC., the 20+/- bureaucrats there, from DOE, HUD, MHI, MHARR, SBRA, DOJ & others, had no idea more than 10,000 independent (street) MHRetailers (‘distribution’ arm of the MHIndustry) had gone ‘out of business’ since the turn of the 21st Century (exceptions oft being those who also owned LLLCommunities). Nor did they know how this unique, income-producing property type is fast becoming the primary wholesale purchaser of newly-built HUD-Code homes, i.e. 25% of shipments in 2009, 40+% in 2015; and an estimated 75% by year 2020! – and who will bear the brunt, along with their homebuying/site lessee customers, of new, questionable ‘energy conservation standards’ product up-costs and prices!

Seriously. This is a working group who, until 13 July 2016, was using 2014 shipment data (60,000 units shipped) in their decision-making, until COBA7® informed them the very next year, 2015, saw no fewer than 70,544 new HUD-Code homes shipped from factories – a clear indication the MHIndustry was working its’ way back to prosperity! And how this is the wrong time to add to product cost!

And there’s more, but it’ll have to wait for time to put all the pieces together for you.

If you’re an Option III affiliate of COBA7®, expect to receive a copy of the five page, single-spaced after-action report submitted by COBA7® to the DOE, making this important point among others.

II.

COBA7® Creates New ‘Top Ten’ List!

EDITORIAL NOTE. COBA7® expanded its’ statistical research & reporting scope, from the LLLCommunity arena into manufactured housing production & distribution ONLY after an MH national advocacy body, during the Spring of 2015, imitated – and continues to do so, the (then) 26 year running ALLEN REPORT. Since that time, COBA7® has exposed & explained the unfortunate difference in reporting of monthly new HUD-Code housing shipment totals supplied by the Institute of Building Technology & Safety (‘IBTS’), and parroted by HUD, MHARR, & COBA7®, but not MHI. What follows here, is the debut of a third new MHIndustry statistical reference. George Allen, CPM & MHM

The Manufactured Housing Association for Regulatory Reform (‘MHARR’) routinely prepares and publishes a proprietary Top Ten List featuring new HUD-Code home shipments “…from the beginning of the industry production rebound (from) August 2011 thru May 2016, with cumulative, current year (2016) and prior year (2015) shipments….’ For example,

1. Texas 59,612 new HUD-Code homes to date (2011-2016)
2. Louisiana 20,929
3. Florida 17,647
4. N. Carolina 12,719
5. Alabama 12,700
6. Mississippi 11,538
7. California 11,091
8. Kentucky 10,920
9. Tennessee 9,046
10. Oklahoma 8,366

The latest IBTS information, for May 2016, resulted in ‘no change’ to this cumulative list

COBA7®, however, believes ‘an inquiring business public’ would like to know, from month to month, which are the Top Ten new HUD-Code home shipment states going forward, unaffected by past performance. Hence the new ‘Top Ten’ List of states shipping the most new HUD-Code homes:

1. Texas 1,096 new HUD-Code homes shipped during May 2016
2. Florida 434
3. Louisiana 403
4. Alabama 377
5. Michigan 309
6. N. Carolina 273
7. California 265
8. S. Carolina 258
9. Mississippi 252
10. Kentucky 210

The latest IBTS information, for May 2016, indicates the total number of new HUD-Code homes shipped to be 6,780; up from 6,689 new HUD-Code homes shipped during April 2016.

Bottom line? By default & design, the task of researching & compiling helpful MHIndustry & LLLCommunity statistics & data is being handled by the Community Owners (7 Part) Business Alliance®. So, if not already affiliated with COBA7®, consider doing so today, joining hundreds of manufactured housing aficionados from throughout the U.S. and Canada. See introduction to this blog posting for details. GFA

III.

MHAlive! ‘Think Tank Agenda for 1 August 2016

We continue to refine the 14 point agenda (7 @ MHIndustry & 7 @ LLLCommunity) to be presented and parsed during MHAlive!, from 9Am – 11:30AM, at the RV/MH Hall of Fame library, 1 August 2016. Will share the detailed agenda with you next week, 24 July, in that Sunday blog posting.

For now, know MHIndustry executives & LLLCommunity owners, from CA, CO, GA, and the Midwest, have already indicated their intention to participate in the two sessions. There’s no fee; just request you let us know, via (317) 346-7156, or via email, of your intention to be present at 9AM that morning.

To purchase tickets to that evening’s RV/MH Hall of Fame Induction Banquet, phone (574) 293-2344. You’ll be glad you attended – along with 400-700 of our peers. Me too!

MHAlive!, 2016 Chattel Capital Summit, & Shipment Stats…

July 9th, 2016

Blog # 404 Copyright 2016 COBA7® @ 10 July 2016: community-investor.com/blog

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media, for North American LLLCommunities!

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 =
‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION. Parts I & II = ‘MHAlive!’ @ RV/MH Hall of Fame, & ‘2016 Chattel Capital Summit’ @ 25th anniversary International Networking Roundtable, in August & September. Two ‘Must Participate’ MHEvents in Indiana & Tennessee!

Part III. Official MHShipments @ May 2016 per IBTS, HUD, MHARR, & COBA7®

I.

‘MHAlive!’Taking Shape as 1 August Nears

“It happened in Elkhart in the RV/MH library, with the colonel using a cane-mounted steel hitchball purloined from a 1970s era DeRose singlewide mobile home.”

Opening line from a new murder mystery set in northern Indiana?

No, it’s a ‘tease’, to entice you to spend Monday morning and early afternoon, 1 August, in the library at the RV/MH Hall of Fame – with George Allen. Doing what? Publicly parsing and discussing sensitive, key MHIndustry & LLLCommunity matters, issues, legislation, regulatory concerns, and more….

There is no registration fee to participate in MHAlive! But we only have room, in the library, for a dozen or so participants. So, if you know now you plan to attend MHAlive!, email us or phone (317) 346-7156 and let us know.

Know too, there is a fee to attend the Hall of Fame induction banquet that evening – honoring 10 RV/MH industry pioneers and leaders!. To make a dinner reservation, phone (574) 293-2344. Location for both events is 21565 Executive Parkway, Elkhart, IN. Expecting more than 400 businessmen and women to attend the induction banquet.

OK, so what’s taking place at MHAlive! ? It’s simple and straightforward:

HUD-Code manufactured housing matters, issues, legislation, regulatory concerns, etc..
@ 9-10:15AM

• Status of chattel capital and Duty to Serve rulemaking

• Are one or more forms of hybrid chattel capital on the horizon for MHIndustry?

• Status of DOE energy regs & when to expect ‘net zero energy use’ MHousing?

• Finally, quantification of the $ impact of MHProduction on the national economy

• How much more corporate consolidation before federal regulators start inquiring?

• ‘Two Days of Plant Tours & Home Sales Seminars’. A new regional MHShow!

• Beware HUD-Code shipment #s at odds with IBTS, HUD, MHARR, & COBA7®

That’s the ‘working list’ now. It might change before 1 August arrives. Anything you’d like to see added, deleted, changed on that list? If so, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. And again, let us know if you plan to attend.

Land-lease-lifestyle community (a.k.a. manufactured home community) matters, issues, regulatory concerns, etc.
10:15-11:30AM

• ‘Chattel Capital Summit’ occurs 8 & 9 September. Six + presentations scheduled!

• CSH Models = 25% into LLLCommunities @ 2009; 40+% @ 2015; 75% by 2020

• Beware regional site rent surveys sans all LLLCommunities in local housing mkt.

• ‘YES! Communities’ going Chinese? ‘Sun Communities’ going RV?

• Beware misleading imitation of the ALLEN REPORT ; 28th edition @ 1 January

• How to effect changes to ‘overtime regulations’ relative to property managers?

No host luncheon off-site @ 11:30 – 12:30PM.

‘Mini-Writers’ Conference’ in the RV/MH Hall of Fame library. A no fee, no reservation event, for RV/MH industry businessmen and women @ 12:30-1:30PM. Come and meet with MHIndustry historian and publisher, to learn how to get your story told via…

‘Beginning One’s Memoirs & Autobiography’, a.k.a. preserving one’s personal & corporate legacy, like Alvin Schrader did in ‘No Respect At All…’ A PATH TO MILLION$. Have you read it yet? It’s on sale at the RV/MH Hall of Fame store. Or phone (317) 346-7156 to order a copy for only $25.00 postpaid. $20.00 of the book purchase is donated by the author, to the RV/MH Hall of Fame!

MHAlive! Will end between 1:30 & 2:00PM, so RV/MH Hall of Fame members can attend the reception being given in their honor at the RV/MH museum.
.

II.

2016 Chattel Capital Summit, to date….

Attend the 25th anniversary of the International Networking Roundtable, 7-9 September, at the Gaylord Opryland Resort Hotel & Conference Center in Nashville, TN., and participate in the following Six Significant Chattel Capital Summit Events:

• Traditional chattel capital = keynote presenter, Tim Williams of 21st Mortgage

• Chattel capital & ‘Duty to Serve’ = panel comprised of reps from GSEs & FHFA

• Hybrid chattel capital = lecturer committed and will be identified at event proper

• Lease-Option = Fast growing new home methodology, Spencer Roane, MHM®

• Clayton, Cavco, Champion $ spokespersons will be present to answer questions.

• Community Series Homes into LLLCommunities = Keith Anderson, Champion

And Yes, there’s even more being planned, but this should well whet your appetite to be present, as we ‘make history’ parsing what’s happening now, and preparing for what’s about to occur in the near future, chattel capital wise, for the manufactured housing industry & LLLCommunity asset class! No conscientious MHIndustry businessman or woman will miss this seminal event!

BOTTOM LINE. We’re 16 years into the ‘turn of the 21ST Century paradigm shift’, where widespread abuse of chattel capital made it ‘go away & stay away’ (Read ‘Upside Down in a Mobile Home Park’*); 10,000+/- independent (street) MHRetailers have gone out of business (Unless they owned one or more MHCommunities); and, 500+/- portfolio owners/operators of land-lease-lifestyle communities now routinely buy, sell, seller-finance, even lease new HUD-Code, oft Community Series Homes (a.k.a. CSH Models) on-site! You simply can’t summarize the past 16 years any simpler than that! So, plan to be at the 25th International Networking Roundtable in September. Phone (317) 346-7156 to register and or request a descriptive brochure, complete with agenda and hotel information.

End Note. For a FREE copy of a reprint of that now classic Manufactured Home Merchandiser article (‘Upside Down in a Mobile Home Park!’), phone (317) 346-7156 and request it. Frankly, it should be ‘required reading’ for anyone who’s come into the MHIndustry since the year 2000!

III.

May 2016 MHShipment Total
per IBTS, HUD, MHARR, & COBA7®

Institute for Building Technology & Safety, HUD, MHARR, & COBA7® report 6,780 new HUD-Code homes shipped during May 2016, up from 6,689 shipped during April; boosting total to 32,570 YTD! Do not be misled. HUD, MHARR, COBA7® & MHI all pay for this monthly data from IBTS; only one national advocate reports it differently.

And, 2015 HUD-Code ‘manufactured housing production only’, at 70,544 units, contributed an estimated $3,045,313,936 to the national economy! Per formula introduced June 2016 by Dr. Stephen C. Cooke of the Alward Institute for Collaborative Science, i.e. base year 2013 @ $2,600,00 divided by 60,228 units = $43,169/unit.

An increasing number of businesses and government agencies rely on COBA7® for their MHIndustry & LLLCommunity information. Don’t be left out; affiliate with COBA7® via Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4763. Research begins soon on 28th annual ALLEN REPORT, a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators Throughout North America!’

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

New Overtime Regs, MHALive! & yellow journalism

July 2nd, 2016

Blog # 403 Copyright 2016 COBA7® @ 3 July 2016; community-investor.com website

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media, for North American LLLCommunities!

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 = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION: 1) New Overtime Regulation, for salaried employees. News to you? Prepare to be shocked! 2) And MHAlive!? Read this, and if YOU want to participate, let me know ASAP! 3) Two WARNINGS: one protects your computer from invasion & personal data theft! The other one? Latest example of yellow press – ‘Journalism that exploits, distorts, or exaggerates the news to create sensations and attract readers.’

I.

New Overtime Regulations…

On 1 December 2016, Salary threshold Changes to $47,476/year.

This affects almost all salaried property managers of land-lease-lifestyle communities (a.k.a. manufactured home communities)! How so?

Recalling, only 15 percent of 50,000+/- LLLCommunities in the U.S. have more than 100 rental homesites, know it takes – depending on site rental rate, at least 290 rental homesites to generate enough income to pay an on-site administrative property manager ‘PM’ who is not performing maintenance duties, $47,000 annual salary in accords with new regs. For example: 290 sites X $300/month rent X 12 months X 4.5 percent OER* (.045) = $46,980.

*OER = Operating Expense Ratio per Industry Standard Chart of Operating Accounts; specifically, 4.5% administrative PM per Allen Model.

Salary total can be, I’m told, a combination of salary, concessioned housing and utilities, as well as commissions, and possibly, other forms of compensation.

Some LLLCommunity owners have already converted salaried on-site managers to hourly workers. Watch here for further details. MHI’s National Communities Council division is also working on this pending change. For more information, phone (703_ 558-0666.

For a FREE copy of above-referenced COBA7® Industry Standard Chart of Operating Accounts, containing OERs for LLLCommunities, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and request it.

II.

MHAlive!

We’ve been talking about this, off and on, during the past couple months – beginning during the inaugural Two Days of Plant Tours & Home Sales Seminars at the RV/MH Hall of Fame in Elkhart, IN. Well, many of us (maybe 600) are about to gather there again on 1 August 2016, for the annual RV/MH Hall of Fame Induction Banquet. If you haven’t yet bought your ticket, phone (574) 293-2344 ASAP!

Originally I planned to spend the morning of 1 August, leading group discussions about MHIndustry issues and LLLCommunity matters. Then head off to a no host luncheon together. And in the early afternoon, spend an hour or so, leading a (free) mini-writing seminar, focused on preserving personal and corporate legacies. Think Al Schrader’s recent autobiography: ‘No Respect At All…A PATH TO MILLION$’ By the way, Al’s book is on sale at the RV/MH Hall of Fame store.

Well, though we’ve received some inquiries about the morning MHAlive! agenda, the consensus has become, ‘Let’s wait until we all get to the 25th anniversary International Networking Roundtable, at the Gaylord Opryland Hotel in Nashville, TN., 7-9 September 2016’. Why?

A ‘near perfectly (good) storm’ appears to be a –brewing, as the top chattel capital firms, FHFA, both GSEs, and 200 practitioners (i.e. LLLCommunity owners/operators) make their way to this annual event. Hybrid finance alternatives is even on the schedule this year! So, use brochure attached to the BEBA (Blast Email Blog Alert) announcing this week’s blog, to register. Seating is indeed limited this year….

Bottom line? I will be in the RV/MH Hall of Fame library by 10AM on 1 August – earlier if folk want to meet and ‘talk shop’ (Phone 317/346-7156 or email me via gfa7156@aol.com). Would like to ‘do lunch’, around 11:30AM, with several businessmen and women. And then, after lunch, until 1:30PM or so, host the mini-writer’s conference. Why stop at 1:30PM? There’ll be a private reception then, for all past and new RV/MH Hall of Fame inductees and board members.

How can you not want to be in Elkhart, IN., on 1 August? Just about ‘anyone who’s anybody’ in the MHIndustry & LLLCommunity asset class will be present!

***

III.

Warning! Warning! Warning! Warning!

Beware ‘FREE download’ offer of How to Find, Buy, Manage, & Sell a Manufactured Home Community!

As author of that 500 page copyrighted text, I assure you there is No Free Download – it’s a ploy to gain access to, and steal information from your computer.

For that matter, the book, published in 1996 by J. Wiley & Sons, New York, is out of print! Long touted as the bible of manufactured home community investment, with thousands of copies sold – the material is now two decades old. However, most of the investment and management principles remain valid, guiding one’s experience with the unique, income-producing property type. If you’d like a FREE copy of the four page syllabus I used to teach that heady subject, over the years, simply phone the above-referenced COBA7® number and ask for it. Used copies of this book are often available online at amazon.com

&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&

Be aware & beware a rogue reporter representing the (‘self-proclaimed’) ‘industry’s leading professional trade publication’. The faux journalist, in a yellow press release, criticizes, without documented specifics, manufactured housing’s largest national advocacy entity – for not performing in the manner he expects; and allegedly desired by (unnamed) members of said body. Commentator goes on to suggest the ‘launch (of) a new trade organization to promote the industry’s interests.’

Well, The Journal, the Allen Letter professional journal, & the Allen CONFIDENTIAL! remain the only three ‘leading’ print professional trade publications serving the manufactured housing industry and land-lease-lifestyle community (a.k.a. manufactured home community) realty asset class. Why leading? Because all three have been published and supported by the MHIndustry & LLLCommunities, for a minimum of two decades apiece, three decades in the case of The Journal None of these is the publication alluded to in the previous paragraph.

There are two national advocacy bodies representing manufactured housing today: the Manufactured Housing Institute (‘MHI’) & the Manufactured Housing Association for Regulatory Reform (‘MHARR’). The Community Owners (7 Part) Business Alliance® or COBA7®, focuses on the statistical, information, communication, networking, deal-making, PM training/certification, & national advocacy needs of LLLCommunities nationwide and in Canada! The rogue reporter is likely not a member of MHARR (It accepts only HUD-Code housing manufacturers), nor an affiliate of COBA7®. And given MHI held a national meeting in Indianapolis, IN., this past week, with 100+/- members in attendance, was this reporter present, to gather information for this yellow press release, and or to make his views known? Probably not.

As far as launching a new national manufactured housing trade association is concerned, memory recalls this individual being highly vocal against similar plans a few years ago. Causes one to ponder the motivation behind this new suggestion. Perhaps “Follow the money!” a catchphrase popularized in the 1976 movie, All the President’s Men, applies.

***

COBA7 Hits Stride Big Time!

June 24th, 2016

Blog # 402 Copyright 2016 COBA7® @ 26 June 2016; community-investor.com website

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities
And ‘mobile home parks’, comprise the real estate component of manufactured housing

This blog posting is the sole national advocacy voice, official ombudsman & historian,
research reporter & online communication media for North American LLLCommunities!

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 =
‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

COBA7® Hits Stride Big Time!

While all ‘seven parts’ of the alliance’s core mission remain intact and active, refinements thereof, and a ‘new presence’, enhance COBA7®’s increasingly vital and involved role on the national manufactured housing and land-lease-lifestyle community business scene….

Yes, COBA7® continues to do and provide the following important products and services to LLLCommunity owners/operators throughout the U.S. and Canada:

• Ongoing statistical research, beginning with the seminal ALLEN REPORT (a.k.a. ‘Who’s Who Among LLLCommunity Portfolio Owners/operators Throughout North America!). And frankly, since one national MHIndustry advocate persists in misreporting monthly shipments of new HUD-Code homes (i.e. different from the total published by the Institute for Building Technology & Safety), more national agencies are coming to COBA7® foraccurate data pertaining to manufactured housing and the realty asset class.

• Updating & distribution of ‘more than a dozen’ Signature Series Resource Documents, or SSRDs, usually as lagniappes in the Allen Letter professional journal. Yet another example of where federal regulators, GSEs, and agencies, now ask COBA7® to list them in one or more of the alliance’s popular directories, as they’re updated monthly.

• COBA7®’s weekly blog posting (‘What you’re reading here’) and two monthly print business newsletters are increasingly in demand as the alliance’s affiliate base grows in number. And given the dearth of advertiser-supported trade publications serving the manufactured housing industry these days, watch for an increasing number of paid display ads within the Allen Letter professional journal during the coming months. And the Allen CONFIDENTIAL! Newsletter? More senior executives and large portfolio owners/operators now rely on its’ confidential ‘advance’ news than ever before!

• Superb interpersonal networking opportunities are still a hallmark of COBA7®. The upcoming 25th anniversary Networking Roundtable, 7-9 September, at the Gaylord Opryland resort hotel in Nashville, TN., promises to be the ‘biggest & best ever’, given the special lineup of presenters and timely, controversial, contemporary MHIndustry topics! Once again, the GSEs & FHFA will be present on a public discussion panel.

• Deal-making, of course, is part and parcel to the annual Networking Roundtable, as virtually every national real estate broker, specializing in LLLCommunities, is present for the Investors Symposium, Wednesday afternoon (7 September), thru to the end of the event.

• Professional property management certification via the popular Manufactured Housing Manager®, or MHM® program, is another of the ‘seven parts’ on the rise. Here, two MHM®s have been added to the instructor staff, as the one day class is scheduled around the U.S. No wonder there’s now 1,000+ MHM®s owning/managing LLLCommunities in the U.S. & Canada. Are you & your PMs MHM® certified yet?

• National advocacy. when need be’, includes official MH ombudsman and historian responsibilities. This is where COBA7® has seen the most growth since its’ founding, January 2014. To date, the alliance has published two history texts: Bruce Savage’s The First 20 Years! – a history of MHI’s National Communities Council division’s first two decades. And just recently, Alvin Schrader’s autobiography: ‘No Respect At All’…A PATH TO MILLION$. This latter title has been so popular, the initial print run is more than half gone! To order either or both books, along with affiliation with COBA7®, simply phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

Finally, there’s this ‘new presence’, where COBA7®, a division of GFA Management, Inc., dba PMN Publishing, is repeatedly invited to attend agency and department meetings in Washington, DC., to represent LLLCommunity owners/operators interests nationwide. Meeting hosts’ attitude is almost always one of ‘We’ve waited a long time for you guys to be represented!’

Here’s an example of how these new working relationships have been coming together to shed new light on past and contemporary issues dealt with by the MHIndustry. By now, you’ve likely heard of the Department of Energy’s recently released rulemaking proposal. And how said mandated energy efficiencies will likely increase the price of new HUD-Code manufactured homes. Well, here’re the estimated ‘number consequences’ of the proposed DOE energy regulations for manufactured housing, courtesy of Washington-based entities now working with COBA7®

Year 2015 avg. price singlesection MH = $45,600. To this, add $2,226 estimated upcharge per DOE proposal – or $4,000 via ‘others’ estimate = $47,826 & $49,600 respectively.

Year 2015 avg. price multisection MH = $86,700. To this, add $3,109 estimated upcharge per DOE proposal – or $6,000 via ‘others’ estimate = $89,809 &$92,700 respectively.

Compare this with the Year 2015 avg. price for a stick-built home @ $360,000.

The Department of Energy will be holding a public meeting on 13 July in Washington, DC., to review said proposal. There will likely be a number of questions at that time: Why add this energy efficiency burden when HUD-Code homes are already viewed as being more energy efficient than site-built homes. And, the ‘added cost’ estimates just cited, don’t appear to include a variety of enforcement mechanisms that’ll be required to monitor implementation, e.g. testing and other regulation compliance costs.

As you can see, COBA7®, more and more, is relied upon for accurate MHIndustry statistics, informative SSRDs, reliable& newsworthy online & print news, superb networking & deal-making opportunities, professional property management training & certification, as well as a variety of national advocacy – related ombudsman & historian services, plus active participation in national matters and meetings.

Finally, if you own one or more LLLCommunities, like me, you owe it to yourself to affiliate with the only national entity (COBA7®), formed to serve the information, statistical data, networking, and communication needs of LLLCommunity ownership nationwide! No one else comes even close to supplying the array of products and services described in the previous paragraphs.

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

***

‘MHAlive!’ & ‘DTS @ FHFA + GSEs = MH$?’

June 17th, 2016

Blog # 401 Copyright 2016 COBA7® @ 19 June 2016; community-investor.com website

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research, reporter & online communication media for North American LLLCommunities!

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.

COBA6® Motto = ‘U* Support US & WE Serve U!’ Goal of its’ print/online media = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION. Part I. Sets the stage for ‘Where Will You Be On 1 August 2016?’ Part II is the most detailed treatment to date, of ongoing machinations at the Federal Housing Finance Agency (‘FHFA’) pertaining to Duty to Serve (‘DTS’) rulemaking relative to manufactured housing finance. And Part III codifies future reporting of differing HUD-Code home shipment totals, monthly & YTD, by IBTS, HUD, MHARR, COBA7®, also MHI.

I.

MHAlive!

Birth of a New Annual Manufactured Housing Event

The first workday of every August hundreds of MH & RV businessmen and women travel to Elkhart, IN., to honor industry pioneers and leaders from throughout the U.S., for their corporate contributions and personal legacies. This pilgrimage culminates that evening at the annual RV/MH Hall of Fame Induction Banquet, when ten men and women are feted in a glorious manner! Have you attended a Hall of Fame Induction Banquet? You really should!

Over the past few years, during the daytime before the Hall of Fame Induction Banquet, small groups of businessmen and women have convened in the Elkhart facility’s library or board room, to participate in mini-writers’ conferences. Two years ago, the focus was on ‘writing one’s legacy for family & friends’; this past year, focus shifted to ‘writing in general – for publication & profit’. 2016 will be different, as there’s an industry wide need to be addressed; specifically, how to replace the unfortunate slack suffered upon demise of the Think Tank being nurtured via the Urban Land Institute’s (‘ULI’) Manufactured Housing Communities Council (‘MHCC’), a few years ago?

To date, no national manufactured housing or land-lease-lifestyle community advocacy-focused body, not MHI, MHARR, or COBA7®, has called for any form of national, public, all inclusive convening of businessmen and women concerned about the past, present, and future of the HUD-Code manufactured housing industry & land-lease-lifestyle community asset class, to gather for a Think Tank like parsing of industry and realty asset class issues! This did happen once, in a minor-but-landmark way, at the 23rd annual Networking Roundtable in Peachtree City, GA., in 2014, when Ken Rishel of Rishel Consulting & Michael Sullivan, CPM® of Newport Pacific presented opposing perspectives and rousing challenges to the audience: to ‘maintain the MH business model unchanged’ vs. ‘make radical changes, if need be, to appeal to changing market demand’; and, the next day, both GSEs, Fannie Mae & Freddie Mac, opened wide the doors of communication between LLLCommunities and their offices! So, see what can happen?

Here’s what’s been proposed to date for 1 August 2016. The first half the morning of ‘MHAlive!, to focus on the ‘Status of the Search for Chattel Capital &/or a Hybrid Form Thereof!’ (Read Part II following!) Last half the morning to focus on ‘Move Over Traditional Chattel Capital Financing; Enter Lease-Option!’. This to be followed by a group luncheon off-site. And the first half the afternoon = FREE TIME to enjoy the RV/MH Museum, or participate in a two hour mini-writers conference focused on ‘How to Organize & Pen Your Personal & Corporate Legacy for Family & Friends’. When that session concludes, it’ll be time to return to hotel rooms to freshen up and change for evening festivities at the annual Hall of Fame Induction Banquet.

At this point in time, the two events, on the first workday of the month of August; 1 August, are separate in registration and facilitation. No fee planned for participation in ‘MHAlive!’ Think Tank and mini-writers conference in the afternoon. Pre-registration required though, so phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 to register for MHAlive!

And, to make reservations to attend the evening RV/MH Hall of Fame Induction Banquet, phone (574) 293-2344. There will be between 400 and 700 RV & MH industry leaders and pioneers present that evening! It is really quite an elaborate affair.; something everyone should experience at least once during their career. I go every year….

II.

MH Seeks DTS Solutions at FHFA with GSEs!

(In layman’s language, that’s ‘Manufactured Housing (i.e. national advocacy groups) seeks Duty to Serve solutions at the Federal Housing Finance Agency (‘FHFA’), relative to Fannie Mae & Freddie Mac!’)

To date, the Manufactured Housing Institute (‘MHI’), Manufactured Housing Association for Regulatory Reform (‘MHARR’), and the Community Owners (7 Part) Business Alliance®, or COBA7®, have weighted-in on the timely and strategic topic, Duty to Serve, with written comments pertaining to proposed rulemaking by the FHFA, relative to both GSEs. There’s even an informal national task force of volunteer businessmen and women, not exclusively aligned with any one of the aforementioned groups, taking an independent, third party ‘look’ at the matter, also in search of a practical DTS solution.

Well, a recent feature article in MULTIHOUSING PROFESSIONAL magazine (May/June 2016), pp. 38-40, focused on ‘Fannie & Freddie’s multifamily programs’, indirectly sheds helpful light on the aforementioned MH (chattel capital) effort; specifically, how ‘Each GSE utilizes its own risk-sharing models (to) protect it from losses’ – models that worked effectively throughout the recent national economic downturn, a.k.a. the Great Recession. Quoting in large part….

“There’s broad consensus the next iteration of the housing finance system must protect taxpayers, emphasize the private markets, support a broad variety of housing options, and remain liquid throughout ebbs and flows of an economic cycle.” It’s generally agreed, Fannie & Freddie’s multifamily programs, as opposed to single-family portfolios, already meets those four objectives! How effectively? “…GSE’s combined multifamily comprehensive income reached $30 billion from 2008 through the second quarter of 2015, per Division of Housing Mission and Goals 2015.” P.38

How have the two GSEs managed to accomplish this impressive feat? “…because of the GSE mu8ltifamily programs’ adherence to 1) prudent underwriting standards, 2) sound credit policy, 3) effective third-party assessment procedures, 5) conservative loan portfolio management, and most importantly, 5) risk-sharing and retention strategies that place private capital ahead of taxpayers.” Here’s how that works for each of the GSEs:

• ‘Fannie Mae employs a delegated originator and service model (the Delegated Underwriting & Servicing program, or DUS), where risk is shared between Fannie Mae and the DUS lender. Each loan purchased is securitized, and resulting mortgage-backed security sold to investors carries a full guarantee of Fannie Mae in the event of default. Their two risk-sharing models? PARI-PASSU = Fannie Mae 7 the lender share losses on a pro rata basis, with one-third borne by the lender and two-thirds borne by Fannie Mae. And STANDARD = Lender bears a share of losses, calculated using a tiered loss-sharing formula (generally involving a first-loss position and a cap at 20% of original loan amount( based on established risk factors, such as loan-to-value and debt-service coverage ratios.”

• ‘Freddie Mac employs PROGRAM PLUS, a prior approval business model wherein it underwrites each loan purchased from its’ network of sellers, creates a multi loan, multiclass security, and sells that security to investors. The repayment of the senior-most security is guaranteed by Freddie Mac, while the bottom 10% to 15% of first-loss securities are sold to qualified investors.”

Now, pickup on this salient point: “GSEs’ multifamily programs address a market failure in the housing finance system that results in an abundance of capital for high-end properties in top-tier markets but largely ignores middle market and affordable housing needs in urban cores and leaves secondary and tertiary markets underserved.” While this point was penned with conventional apartment lending in mind, it sets two stages where 1) land-lease-lifestyle community acquisition and refinance, and 2) new HUD-Code home mortgages, are concerned. In the first instance, there’s nary a problem for 100+ rental homesite properties to qualify for Fannie Mae-guaranteed mortgages, HOWEVER, there’s a major issue (i.e. lack of access to chattel capital) relative to new HUD-Code manufactured homes – whether installed on scattered building sites conveyed fee simple, or within LLLCommunities on rental homesites. It’s right here, at this second stage, that Duty to Serve comes into play!

So, how are manufactured housing (single-family finance) proposed DTS programs to be articulated, even emulate existent GSE programs that work well, in the near future, ensuring solutions that produce results? In my opinion, and in the most simplistic fashion, ‘copy and apply what presently works in conventional multifamily programs – to the manufactured housing single-family finance scene’!

To that end, read and study seven principles identified by the article’s authors, Doug Bibby of NMHC & Robert DeWitt of GID, used to help shape multifamily finance reform efforts at the GSEs. Then ask yourself, ‘What might apply to manufactured housing’s dire need for access to chattel capital?’ Here, only the descriptive headings are listed. If you’d like the complete treatment, respond directly to this blog posting, or phone the official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and ask for the additional details.

1. Provide access to an explicit government-guaranteed backstop
2. Provide broad liquidity support, not just ‘stop-gap’ or emergency financing
3. Protect taxpayers
4. Restrict federal credit support to the security level
5. Support private capital participation and protect taxpayers through effective guarantee structure and pricing
6. Empower strong regulators
7. Retain limited portfolio lending without a federal guarantee

Again, the obvious question is, how many of these seven principles are applicable to manufactured housing single-family finance market reforms relative to proposed DTS rulemaking? This MHIndusty observer does not know, but this might well be a likely start in the right direction.

Or is it?

During a preliminary review of this blog (Part II), by one of several MHIndustry leaders, it was suggested that attempting to apply ‘what works’ in GSA multifamily finance arenas, to the manufactured housing need for chattel capital, might be akin to fitting a square peg into a round hole. That reviewer’s counter suggestion is similar to what is generally referred to as ‘zero-based budgeting’, where one starts with few to no preconceived notions or ‘rules of thumb’, and creates a new and comprehensive budget, or in this case – a proposal, ‘out of whole cloth’, so to speak. Whew! That reads tough-to-do to me. But, it certainly might have merit. What do you think?

If, as you’re read this posting, you have practical ideas you’d like to share with our peers, simply contact me – and send an electronic file to gfa7156@aol.com or hard copy to GFA c/o Box # 47024, Indpls, IN. 46247.

III

Here We go Again, Only It Gets Worse…

‘COBA7® Marks One Year Anniversary, Documenting & Outing Monthly New HUD-Code Home Shipment Reporting Flaws!’

As manufactured housing historian, it pains me to highlight, month after month, how one of our industry’s national advocates fails to report the same number of new HUD-Code home shipments tallied, for a fee, by the Institute for Building Technology & Safety (‘IBTS’). Now the matter worsens…

How so?

As one might suspect, when giving thought to the matter, Year To Date (‘YTD’) totals will also differ! For example, IBTS shipment total for April 2016 is 6689, & 2016 YTD total = 25,790 – likewise reported by HUD, MHARR & COBA7®! For the same time frame however, MHI reports 6,697 new HUD-Code homes shipped in April, with a 2016 YTD total of 25,673. Sure, that’s only a 24 home difference YTD, but a $1,492,800 gap (i.e. 24 homes X $62,200 @ 2013 average value = $1,492,800.) so far – when there’s really no excuse (at least none being offered) for any divergence at all!

Tell you what.

Henceforth, in this blog, the Allen Letter professional journal, and the Allen CONFIDENTIAL!, we’ll report monthly shipments of new HUD-Code homes in the following fashion – until all the manufactured housing industry’s national advocates report the same month end & YTD shipment totals…

***

New HUD-Code Manufactured Homes Shipped During the month of APRIL 2016.
Institute of Building Technology & Safety reports 6,689 homes shipped, & 25,790 YTD

HUD, MHARR & COBA7® also report 6,689 new homes shipped, & 25,790 YTD

MHI reports 6,697 new homes shipped, & by extension, 25,673 YTD

For accurate manufactured housing & land-lease-lifestyle community data & statistics, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

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

7 1/2 Years of Blog Posts & Continuing….

June 11th, 2016

Blog # 400 Copyright 2016 COBA7® @ 12 June 2016; community-investor.com website

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media for North American LLLCommunities!

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 = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance.!’

I.

7 ½ Years of Blog Posts & Continuing!

Has it really been 7 ½ years since Manufactured Home Merchandiser magazine ceased publication in 2009? How many of you remember the late Herb Tieder? Or his 1990s publishing partner, the late James Mack? This blog debuted in the Merchandiser during that final year of publication.

Today, this weekly blog is distributed via the internet, to 1,000 readers, as one of ‘seven parts’ comprising the Community Owners Business Alliance®, or COBA7®, a division of GFA Management, Inc., dba PMN Publishing – the sole international consultancy & advocate, ombudsman & historian, for manufactured housing & land-lease-lifestyle communities (a.k.a. manufactured home communities) throughout the U.S. & Canada!

Year 2009 was also the year HUD-Code manufactured housing suffered it’s new home shipment nadir (‘lowest point’), going nearly 70 years to 1947, when 60,000 new ‘mobile homes’ were shipped. Just how bad is that? Here’s a telling footnote to an historic MH Shipment Chart: “Before 1947, production varied from 1,300 in 1930 upward to 60,000 in 1947. Source: Manufactured Housing Institute, Merrill Lynch” Page # 5..That, apparently, is the ‘end of the story’, since there are no further statistics to cite. And FYI, the manufactured housing industry did finally eclipse that 1947 era 60,000 figure during 2013, with 60,228 new HUD-Code homes shipped!

Back to the blog! What’s kept me writing over the years, now decades? Besides sharing MHIndustry & LLLCommunity NEWS ‘as it happens’, or as soon as I can get it into print, there’re perennial Opportunities, Frustrations, & Threats – relative to these two business models, I get to explore (research), ponder (organize), express (write), and distribute (publish) here, and in one or both print newsletters, the Allen Letter professional journal, and the Allen CONFIDENTIAL!

For that matter, the ‘working title’ of this 400th blog posting was originally cast as ‘Opportunities & Irksome Matters’. Here’s a Summary of some of them…

OPPORTUNITIES

• To promote professional property management throughout the land-lease-lifestyle community real estate asset class, via IREM’s Certified Property Manager® & AMO® programs; PMN Publishing’s Manufactured Housing Manager® one day class; and MHEI’s Accredited Community Manager®. To be candid, professional property management has yet to be widely embraced by LLLCommunities.

• To promote affordable housing. It seems everyone knows – and writes, of today’s ‘affordable housing crisis’ in the U.S., but few take time to 1) define affordable housing when they talk and write about it (i.e. There are six means of measuring affordable housing. Do you know what they are? Didn’t think so!); and or, 2) articulate one or more ways to specifically address the affordable housing crisis! (I do so, later in this blog, under one of the four Threat categories)

• To improve the less than flattering image of manufactured housing, a.k.a. ‘mobile home living’, by replacing archaic trade terminology with image-enhancing descriptions (e.g. housing vs. ‘mobile home’; LLLCommunity vs. ‘mobile home park’, etc.); 2) encouraging peers to ‘take the high road’, ‘rather than a low road’ when engaged in manufactured housing and or ‘community’ business endeavors; even, 3) move away from long obsolete concepts such as the 1970s era Woodall Star rating system for ‘mobile home parks’.

• To unite LLLCommunity owners/operators throughout the U.S. & Canada, into state, province, and national political advocacy trade groups, some featuring education, interpersonal networking, deal-making, and lobbying activities as mini-independent post-production associations..

FRUSTRATIONS

• With national trade politics, where self-proclaimed national advocacy and regulatory ‘watchdog’ organizations are concerned. They’ve rarely worked well together; and as a result, legislators and regulators use their rivalry to compromise political and anti-regulatory efforts.

• With the near constant power plays and maneuverings, between and among large business entities, as well as between large and smaller firms. This matter is aggravated when large firms send salaried employees to fill leadership roles, oft positioning them at odds with entrepreneur businessmen and women shepherding small to mid-sized firms with differing needs in their respective marketplace.

• With misleading claims of manufacturers, ballyhooing their production of quality, low cost manufactured housing; when in reality, unit prices continue to rise while quality remains constant, or slips when controls lapse.

• With lack of public, regional and national industry & realty asset class forums and caucuses, where issues and significant matters can be addressed, and dealt with openly, among business and trade organization stakeholders. When was the last time you were asked to participate in an industry Think Tank, of sorts? Recall the caucuses of 2/27/2008 (FL) & 2/27/2009 (IN), as well as some meetings of the now defunct Manufactured Housing Communities Council (‘MHCC’) of the Urban Land Institute (‘ULI’). Nothing since then! Hmm. Maybe we need the morning and afternoon Think Tank on 1 August, after all….

THHREATS

• Is it competition from ‘other type builders’ outside the factory-built housing industry we should fear, politically and otherwise; or simply, our own lack of vision and ability to perform ‘together’, at fault where MHIndustry malaise is concerned?

• Perennial mishandling of chattel capital, during at least two historic time frames, since the mid-1970s, has resulted in the present prolonged absence of easy access to it! Might simple commitment to two significant changes ‘to the way we do things’ restore access? 1) 100% commitment to strict pre-qualification of prospective homebuyers, by those marketing and selling new HUD-Code homes; and; 2) Henceforward, use 30% Housing Expense Factor as affordability guide, requiring mortgagees to insist said 30% includes not only principal, interest, taxes & insurance (‘PITI’) – as it stands today, but include anticipated housing utility costs as well (e.g. electric, gas, water, sewer) – no longer requiring homeowner to pay such expenses ‘outside’, or in addition to, the 30% Housing Expense Factor! Note. When 30% HEF = PITI alone; utilities = at an additional 10+% on top of the 30% HEF, making it 40%. And then, when homeowner’s additional financial commitments (e.g. vehicles, alimony, etc.) are established, the back end debt percentage will grow, from 40% to 50, even 60%! No wonder homeowners oft ‘walk away’ from such overwhelming financial commitment.

• Overregulation of chattel lending, and uneven enforcement of the installation of manufactured homes, state by state, is arbitrary and unfair to everyone involved. Also, when certain LLLCommunity portfolio firms ‘thumb their noses’ at traditional methods of comparing site rents with other forms of multifamily rental housing in the same local housing market, skewing homeowner/site lessee’s housing propositions (i.e. fair and balanced relationships between home & site rent payments), one learns to expect dire consequences over time.

• Loss of a primary forum and audience, for manufactured housing, via the Urban Land Institute (‘ULI’), and related land planning bodies, has in part, stymied land development of new land-lease-lifestyle communities! Today there is no formal, or informal, Think Tank presence anywhere in the manufactured housing industry and LLLCommunity asset class. We are ‘dead in the water’ until there’s easier access to chattel capital, and we – once again, routinely dialogue with land planners and local zoning boards. There hasn’t been a LLLCommunity land development text published since 1994, that’s how out of touch we are with this aspect of real estate development and investment.

Of course there’s more, much more, that deserves to be researched and publicized here.

For example; have long believed, if one is going to put forth statistical data to the trade public, one has responsibility to explain said statistics and facts, ensuring from the beginning, the numbers are indeed accurate. So why isn’t this happening across the board? More about this in a later blog posting.

In the meantime, if not affiliated with COBA7®, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, and ask for brochures describing:

• COBA7® affiliation at one of three Option levels
• 25th anniversary Networking Roundtable (7-9 September in Nashville, TN.)
• Al Schrader’s just released autobiography (a ‘should read’ by every LLLCommunity owner/operators in North America!)
• The popular Manufactured Housing Manager® professional property management training & certification program.

In the meantime, let us know what you think regarding Opportunities, Frustrations, & Threats described and parsed in this week’s blog posting via gfa7156@aol.com

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

To GO or NOT to GO?’, Guidebook + Rumor has it…

June 4th, 2016

Blog # 399 Copyright 2016 COBA7® @ 5 June 2016; community-investor.com website

Perspective: ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sold national advocacy voice, official ombudsman & historian, research report & online communication media for North American LLLCommunities!

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

COBA7® Motto = ‘U Support US & WE Serve U!’ Goal of its’ print/online media = ‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
INTRODUCTION. ‘On a Personal Note’ is sincere, timely, and pertinent!

‘To Go or Not to Go?’ also sincere, timely, and personally pertinent – describing my frustrations about paying dues to, and being unduly imitated by the national advocacy body (division) I helped found between years 1993 & 1996. For details of that beginning, read Bruce Savage’s The First 20 Years!, PMN Publishing, Indianapolis, IN., 2013.

‘Guidebook for Selling & Seller-Financing New HUD-Code Homes in Land-lease-lifestyle Communities’ is the likely product of the recent Two Days of Plant Tours & Home Sales Seminars, in Elkhart, IN. Attempts at such a guidebook have failed in the past. Hopefully there’ll be a positive result this time around, as ‘home sales & seller-financing’ Lessons Learned, and penned by Adriane DeRose, MHM®, Pamela Ziemer, MHM®, Jamie Dougherty, MHM®, Kenneth Lipschutz & Danya Mallad, and Spencer Roane, MHM® are collected and published in an easy-to-use HOW TO guide for LLLCommunity owners/operators. To be distributed at 25th anniversary Networking Roundtable, 7-9 September 2016, at the Gaylord Opryland hotel in Nashville, TN.

And finally, ‘Rumor Has It’. Given the veracity of this recent rumor, will exorbitant price increases for new HUD-Code manufactured homes, be a Wake-up Call (to action), OR, Death Knell for the MHIndustry – where its’ affordable housing heritage and reputation are concerned? Think about it….Better yet, be Ready to React if/when it’s official!

I.

On a Personal Note…

MANY THANKS to the 75+ of you who, via Facebook, sent Birthday Greetings on 1 June, as Carolyn & I celebrated my 71st birthday. We spent the day sightseeing & lunching at an old stagecoach station turned B&B, in the remote rural quaint town of Story, IN – a place that describes itself as ‘an inconvenient location since 1851.’ Then shopped in Nashville, IN, before heading home for wine and cheese on the back porch.

For those intrigued by my reference to Operation Dewey Canyon, when commemorating Memorial Day. If you took my advice and googled ‘Dewey Canyon 1969’, you likely found a four minute film clip titled: ‘1969 Marine Corps Operation Dewey (Canyon)’. Know that, as you watch it, Marines shown using hand and arm signals to guide CH46 helicopters into landing zones, are HSTs (Helicopter Support Teams) from the Shore Party Company I commanded as a 24 year old first lieutenant. And several of the action sequences (e.g. firing of 155mm howitzers & Marines in the assault) continue to stimulate memories from 47 years past…

II.

To Go or Not to Go?

Sometimes Disappointed When I DO (go), & Expect to be Imitated When I DON’T (go), to NCC Division Meetings…

Next meeting of the Manufactured Housing Institute’s National Communities Council (‘NCC’) division is from 11AM to 12:15PM on Monday, 27 June, in Indianapolis, IN.

I’m sometimes disappointed when I DO (go), because…

• Rarely is input solicited beforehand, as it was in the past by Michael O’Brien, for topics members desired to be listed on the NCC meeting agenda

• And then, a set agenda, decided by someone, is distributed upon arrival at the meeting, rarely before.

• Nor is enough time allotted (e.g. only 1 ¼ hr. this time around), or proceedings controlled well enough, to cover the entire agenda, let alone added topics

• Hardly ever more than a dozen LLLCommunity owners are present at meeting; and those in leadership positions are almost always from the largest of the property portfolio firms. Consequence? Little sensitivity to the needs of small to mid-sized owners/operators.

• And worst of all, from time to time, one can expect to be publicly and verbally ambushed within an NCC meeting – recalling the 8 October 2012 NCC meeting incident, in San Antonio, TX.

And I’m oft undercut and or imitated, as a community owner, freelance consultant, and direct dues-paying NCC board member, when I DON’T (go), e.g.

• The MHM® certification program predates ACM® by three years, has trained and designated far more professional property managers, but continues to be ignored by the NCC & MHEI, as an education vehicle for LLLCommunity folk!

• The annual international networking roundtable has been so successful during its’ 24 year run, it just had to be imitated by the NCC, with a downtown Chicago event for major LLLCommunity portfolio owners/operators.

• And the 27 year ALLEN REPORT, also predating the NCC, is now imitated by that division’s ‘Largest 50 Owners & Operators’ list. Is nothing respected in the manufactured housing business & LLLCommunity real estate asset class?

What would I like to see on the 27 June NCC division meeting agenda, for discussion?

• Chattel capital. Discuss restoration of easy access – if possible; other potential sources; even hybrid forms of financing on-site new home sales transactions, e.g. lease-option, post titling, etc…

• Small to mid-sized LLLCommunity owners/operators. How to attract them to join NCC and voice their needs, as more and more of them know they must now buy new HUD-Code homes, sell & oft seller-finance them on-site, if they’re to remain profitable in this difficult business climate – given the disappearance of 10,000 independent (street) MHRetailers during the past 15 years!

• Discontinue ‘Largest 50 Community Owners & Operators’ list. Why? Errors and oversights, in latest edition, discouraged potential new members from joining.

• Propose bylaws change – or, if need be, create NCC division bylaws; among other things, permitting proxy voting by direct, dues-paying MHI members.

• Announce and encourage purchase of LLLCommunity portfolio owner/operator Al Schrader’s autobiography, ‘No Respect At All’…A PATH TO MILLION$, as it’s a ‘good read’ and he’s donating all $ proceeds to the RV/MH Hall of Fame!

So, with all that ‘said & done’, would you spend $429.00 to attend the MHI meeting, including NCC division meeting, in Indianapolis, IN., on 26-28 June?

Well, I’ve decided to do so! Why?

FIRST; the meetings are in my backyard. SECOND, there’s a guest speaker scheduled, whose research is, in the words of MHI, to help lay “…a foundation of professional and authoritative industry data.” – ”As MHI seeks to improve industry data and statistics….” In my opinion, MHI can start that quest (‘pursuit’) NOW, before the June meeting, by simply reporting monthly shipment volume of new HUD-Code homes in the same manner as the Institute for Building Technology & Safety (‘IBTS’) – the MHIndustry’s official scorekeeper. HUD, MHARR & COBA7® already do so! And THIRD? Well, I just don’t need any more surprise usurping of products and services long supplied to land-lease-lifestyle community owners/operators by the Community Owners (7 part) Business Alliance®, or COBA7®. Call it ‘protecting one’s turf’, if you will. And FOURTH; if I don’t go, as a single LLLCommunity owner, there’ll likely be no one else speaking up in behalf of the ‘85% of 50,000+/- LLLCommunity owners/operators’ whose properties number fewer than 100 rental homesites apiece!

See you in Indianapolis later this month! MHI and I, Welcome your Support! GFA

III
.

Guidebook for Selling & Seller-financing New HUD-Code
Homes On-site in Land-lease-lifestyle Communities!

Guidebook, if it materializes as planned, will be the legacy of the first Two Days of Plant Tours & Home Sales Seminars, held last in late May at the RV/MH Hall of Fame in Elkhart, IN. The six presenters have already been asked to submit outlines and or narratives of their respective seminars:

GETTING READY!

BUYING HOMES!

SELLING HOMES!

FINANCING HOMES!

Some of the unique features also being planned for inclusion in this ‘first ever’ new home HOW TO sales guide, for use in LLLCommunities, are as follows:

• Excerpts from Al Schrader’s autobiography, ‘No Respect At All’…A PATH TO MILLION$. He comments expertly on the ‘state of the MHIndustry’ and describes his firm’s evolution from ‘contract sales’ thru to ‘captive finance’ and beyond. If you haven’t read it yet, you really should. Only $25.00 postpaid. Just phone (317) 346-7156. All $ proceeds go to the RV/MH Hall of Fame!

• The ‘Six Ps of Planning’ & the ‘Six Right Ps for Marketing New Homes in LLLCommunities’

• Characteristics of Community Series Homes and where to order them…

• National Registry of All Lenders; chattel capital & real estate-secured

• Directory of Major Factory-built Housing Manufacturers

• Official MHIndustry Lexicon, Glossary.

The goal is to have the guidebook printed and bound in time for distribution at the 25th anniversary Networking Roundtable, 7-9 September, at the Gaylord Opryland Hotel in Nashville, TN. If you’d like to ensure an ‘invite’ to this highly popular 2 ½ day event, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 and ask to have your name placed on the reservation list.

IV.

Rumor Has it…

The new Department of Energy (‘DOE’) rule relative to energy use will, reportedly, jack the price of a new singlesection manufactured home by at least $2,226 maybe $4,000.And jack the price of a new multisection manufactured home by at least $3,109 maybe $6,000. Whew! And know what? These estimates, last I checked, do NOT include or reflect testing, enforcement, and regulatory compliance costs! True or False? Methinks we’ll soon learn more as said rule is released. It will be interesting, even ‘telling’, to observe just how our two Washington, DC., trade advocacy groups address, and SELL or OPPOSE, these anticipated exorbitant price increases to HUD-Code manufactured homes

***

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

Memorial Day 2016 & Tours/Seminars a Success!

May 28th, 2016

Blog # 398 Copyright 2016 COBA7® @ 29 May 2016; community-investor.com website

Perspective: ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.’

This blog posting is the sole national advocacy voice, official ombudsman & historian, research reporter & online communication media for North American LLLCommunities!

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 =
‘Not only inform & opine, but transform & improve MHBusiness Model Performance!’

INTRODUCTION: None needed this time around. Two very special stories for you.

I.

MEMORIAL DAY 2016

‘The day everyone honors KIA* war heroes; some of whom,
I honor every day of my life!’ GFA (KIA = ‘Killed in Action’)

As George Orwell aptly states, “People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” Well, here’s the true tale of one rough man, the late Marine Sergeant Don Myers, describing an assault he led, along the Ho Chi Minh trail in South Vietnam, during February 1969, resulting in the capture of the largest enemy weapons (a dozen 122 mm. Russian field guns) during that conflict.

“I yelled at my men to drop their (field) packs and go forward on the run. Our rear element pushed the front of the platoon, and they too got caught up in our charge…as they joined the rush up the large hill. The mid-afternoon sun was blistering, and bullets were whizzing and zinging through the underbrush and beating into trees. The noise of gunfire and small explosions was all but deafening, as I looked up the slope of the mountain-like hill. Not forty meters away stood the largest damn enemy artillery piece I’d ever seen. The long barrel of the cannon looked like it was pointing straight down the trail at not only me, but the rest of the men that were scrambling up the slope as well. I yelled out loud, ‘Sweet Jesus, don’t shoot that mother!’ In seconds, I moved past the unmanned gun and noticed several bodies of dead NVA lying near the weapon. I was glad someone had gotten them before they had unlimbered that gun for firing. The barrel extended out 30 feet and the tires came up to my waist. A caisson affair was in back of the artillery piece with an open, ready box of big shells sitting upright in slots.”

As it turned out, a dozen large Russian artillery pieces were captured that day, but the enemy spiked ten of them; so only two were retrograded to the rear area. My job, as battalion rigging officer, was to dissemble them, and rig for helo-lifting back to the Dong Ha Combat Base. Today, one is on display in the USMC Museum in Quantico, VA., and the other one? Well, that’s a stirring tale for another Memorial Day. And in the attack just described, two Russian advisors were killed.

Memorial Day is always difficult for me, as I recall Marines KIA in that firefight during Operation Dewey Canyon (Google it), as well as in previous offenses near LZ Stud, Gio Linh, and during the days we reopened route # 1 to the Khe Sanh Combat Base.

So, many Thanks to friends who phoned Friday, to reminisce and express heartfelt feelings about what happened, now almost 50 years ago, in that far away land.

FYI. Sgt. Myers died a few years ago, but not until after he authored YOUR WAR – MY WAR, from which this story is quoted – also used in a documentary I prepared for the USMC Museum, titled ‘Pluck, Politics, & Shore Party’.

II.

‘NEW ERA of Manufactured Housing’, circa 2015, Now Year 2016, Continues the 16 Year Paradigm Shift in New Home Sales Methodology!

Recent ‘Two Days of Plant Tours & Home Sales Seminars’ underscored the need for LLLCommunity owners/operators to have housing product knowledge (plant tours) & practice home selling techniques (seminars).

To set the stage for plant tours and four sales seminars that’d follow, a brief retrospective of HUD-Code manufactured housing travails & triumphs, since the turn of the century, was provided. Here’re the paradigm shifts that have moved the MHIndustry from being dependent upon independent (street) MHRetailers, to the filling of vacant rental homesites, with Community Series Homes (a.k.a. CSH Models) within LLLCommunities, by owners/operators of said properties – in increasing numbers.

NOTE to the READER. Print off or copy these eight bullet points, for future reference, as they’re quoted directly from the ‘Official Manufactured Housing Industry Timeline’ maintained by the Community Owners (7 Part) Business Alliance®, or COBA7® as official historian to the MHIndustry & LLLCommunity realty asset class.

• 1998 = 372,843 new HUD-Code homes shipped. Last MHIndustry renascence!

• 1999-2002 = 300,000 ‘repos’ = $1.3 billion loss in value per CFPB White Paper. Consequences? 1) Loss of easy access to chattel capital for in-community home loans; 2) far fewer new homes manufactured & shipped; & 3) 10,000 fewer independent (street) MHRetailers in U.S., until…

• 2009 = Forced change to traditional MH business model, with debut of Community Series Homes, when new HUD-Code home shipments hit nadir of only 49, 789 units – of which only 25% (12,446) went into LLLCommunities.

• Since 2010, large LLLCommunity portfolio owners/operators have been buying, selling, seller-financing, even leasing new HUD-Code homes on-site, to take-up the slack left by 10,000 fewer independent (street) MHRetailers in the U.S. – to fill an estimated 250,000 vacant rental homesites.

• By 2014, due to on-site selling & seller-financing of new HUD-Code homes on-site, LLLCommunities = New Breed of MHRetailer & Lender, selling ‘homes & lifestyle’ vs. ‘deal to deal’ mindset of independent street) MHRetailers. Also year of the birth of the Community Owners (7 Part) Business Alliance®.

• In 2015, an estimated 40+/-% of 70,535 new HUD-Code homes, or 28,000+/- went directly into LLLCommunities nationwide; more than double 2009 volume

• Now, most LLLCommunity ownrs/operators, with vacant rental homesites, buy & sell new HUD-Code homes on-site, or risk business failure. So, we must get 85% of LLLCommunities ‘not selling’, into the New Breed & NEW ERA mindset!

• Seller-finance is the ‘new game in town’ and is played several ways: leasing of units, seller-finance (contract sale) via ‘captive finance’, & lease-option. All the while, required to be compliant with state (S.A.F.E. Act) and federal finance regulations per CFPB,.

How was the program itself? Successful! As 100 LLLCommunity owners/operators and HUD-Code manufacturer representatives spent two days visiting six plants, in the Elkhart, IN., area, and learning from four ‘different topic’ seminars taught by their LLLCommunity owner/operator peers. For more details, read the July issue of the Allen Letter professional journal! To subscribe, phone (317) 346-7156.

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