George Allen / EducateMHC Blog Mobile Home & Land Lease Community Advocate & Expert

February 13, 2011

Best Salmagundi of MHIndustry ‘Insider Information’ Ever!

Filed under: Uncategorized — George Allen @ 8:55 am

Best Salmagundi* of MHIndustry ‘Insider Information’ You’ll Ever Read!

• Salmagundi is ‘a little of this, a little of that; a mixture of something, information’

S.A.F.E. Act ‘fear factor’; portfolio ‘player’ vs. small owner/operator; one liner responses – and more, to last week’s blog about MHAssociations; ‘Where’re Greg O’Berry, Bob Blatz & Greg Harmon? And, where will YOU be March 14 & 15, 22nd, 29 & 30, 2011?

I.

“Many (landlease, nee manufactured home, community) owners are misusing a limited amount of uncertainty in the S.A.F.E. Act final rules, as an excuse to ‘do nothing’ (to ensure their self – financed home loans are in compliance). Their ‘fear factor’ is high, and the tragedy is, there’s no reason for it, except among the smallest of operators.”

“The problem is, they (LLCommunity owners) ‘don’t know enough about what they don’t know’, and hence are so paralyzed, they don’t reach out to get the knowledge they need to make the ‘fear factor’ go away! There’s also fear, among some large portfolio folk, their corporate structure needs changing, meaning someone with the knowledge and experience to set up and run a successful finance arm, would become as important and valuable to the organization, as the traditional CEO and COO ‘golden boy’ positions. And the pay for these financial execs could also be a problem. In an organization doing 40 loans a month, the top finance job is going to be a six figure position.”

“All his doesn’t change the fact that every LLCommunity, capable of filling even a dozen rental homesites a year with self – finance homes, cannot afford not to be doing it the right way! This widespread ‘wait & see’ attitude is a spurious one indeed, simply masking a lack of will and foresight. There’ll always be changes in lending law, and it’s shortsighted not to expect change, and to plan accordingly.” Kenneth Rishel, writing in an email response to an earlier blog posting, by the author, relative to the S.A.F.E. Act. (Lightly edited. GFA)

II.

The following story was prompted by an earlier blog posting, cautioning LLCommunity owners/operators not to be too aggressive with rental homesite rent increases, as more and more properties have been going back to lenders, following large rent increases that have resulted in severely declining physical and economic occupancy.

“I can say first hand, a (LLCommunity) REIT is out of control on their rent increases and fees. I bought a home in a ________- owned property and left it there vs. moving it to my park, since it seemed like a good investment. WRONG. Not only did the market drop shortly after my purchase, but my lot rent shot up from $387 to $427 in three years!”

“What bothered me more, is the fact they charged a flat fee for (natural) gas and water, even when my home sat empty month after month. Their rules and regs state they ‘only charge for consumption’, yet they continued to charge these fees (approximately $37/month), which I continued to ignore. Eventually they evicted me for back lot rent. Frankly, the lot rent was current, but I was behind with the flat fees. Rather than lose the home, I chose to donate it to the St. Vincent de Paul Society. Even that was a struggle to get them to approve, even after I paid all their fees, just to keep the home there.”

Question to this writer: Did they know you were a fellow LLCommunity owner?

Answer: “Absolutely. They knew I was a LLCommunity owner, which was why they were anxious to get me to leave once I started asking too many questions.”

III

One liners, a.k.a. ‘zingers’, have long been the staple of stand up comedians. And the following one liners, emailed in response to last week’s posting title: ‘Why I Belong!, but am frustrated with most MHAssociations’, would be humorous if they weren’t so darn serious!

“You hit the nail very squarely, sir, on the associations.” N

“This won’t make you many friends in MHAssociation (mis) management circles. LOL.” H

“Concerning MHAssociations in your latest blog – it’s time someone threw the skunk out on the table and talked about this.” R

“George, all it takes is the whisper of RENT CONTROL in the (state) legislature, to activate interest in industry political action, which is the ground roots of association membership.” P

There was but one lengthy, thoughtful reply, penned by James Ayotte, a veteran association exec in OH, New England, with MHI/NCC for awhile, and now exec with the Florida Manufactured Housing Association.

“You raise several relevant points. It has become much more difficult to do the work of the association in face of falling revenues. We’ve all been forced to reduce expenses, eliminate non – core services, and focus our limited resources on what’s important – protecting and promoting the MHIndustry’s interests. These decisions have required leadership from staff and volunteer leaders.

“…our mission is clear – to increase the sales of manufactured housing and residency in landlease communities. This mission is evident in everything we do, from ongoing meetings with our customers (e.g. Federation of Manufactured Home Owners of Florida), to our government affairs and legal agenda to our consume education and marketing activities. FMHA’s job is to educate the public about the value and potential of manufactured housing and LLCommunity living, to ensure communities remain open and profitable, and consumers have the ability to buy a manufactured home and (buy/rent) homesites like any other type of single – family housing.

“We don’t lack vision (‘forward focus’) or leadership here in Florida, we lack the resources necessary to accomplish everything we want to do as quickly as we want to do them. These past few years have been sometimes difficult, sometimes gut – wrenching, but we have never lost sight of our mission!

“I am excited about the future of the manufactured housing industry in Florida, and the role we play to position the industry for growth. According to the AARP, 8,000 people a day are turning age 65, and there is a growing wave of first – time homebuyers. These population trends support expansion of the industry. How well we capitalize on these opportunities will depend on the effectiveness of FMHA and industry members marketing efforts and education.

Jim continues his reply for another three paragraphs, and ends thusly: “These are issues I think about everyday, and I’m sure my colleagues do the same. Together, we can meet the industry’s challenges head – on and prevail! Separately, we will languish and waste our time talking about what the industry could have been.” Previous paragraphs lightly edited. GFA

Know what? That was the sole response received from MHAssociation execs nationwide, even after making a special effort to send this blog posting their way! Know what I think? Board chairmen should consider placing last week and this week’s blog in front of their salaried association executive, and ask them to pen a response based on their state’s present day experience, as Jim has done here. Then, distribute copies to all the association’s board members, to stimulate discussion, and maybe stimulate some ‘forward focus’, as well as renewed member recruiting. It’s worth thinking about…

By the way, several blog ‘floggers’ (faithful readers) reminded me of other irksome practices and trends characteristic of some MHAssociations, over time:

• Faux takeover of a state association by one or another membership segment. On one hand, this is easy to observe in states where landlord tenant legislation is a near perennial bugaboo. Count the number of attorneys who pen articles in the MHAssociation’s newsletter; more tellingly, what percentage of articles are penned by legal counsel? 100% in some cases! And rent control doesn’t have to be present; as some attorneys wind up specializing in LLCommunity law and are better able to write than most. And of course, there’s the historic leaning of an association, towards manufacturing & retailing (of homes) vs. the real estate investment side of the house – resulting in ‘two associations’ in some states, e.g. WA, OR, CA, AZ, and others.

• Want to be a ‘player’ on the national scene, but maybe avoid paying dues to become a direct member of the national advocacy body? Position yourself to become a state MHAssociation’s Certified Representative to that national group. Frankly, it a responsible job when ‘done right’; meaning attending as many committee meetings as possible, then reporting proceedings back to one’s state association board. Too many times however, assignment as a Certified Representative is sought and treated as a ‘perc’ by past board chairmen, who may or may not fulfill either responsibility. What’s wrong with sending a young, aggressive, even new association member, to learn what’s going on at the national scene, perhaps developing a passion for our industry and or asset class? As is oft said, and this certainly needs to be heeded by the MHIndustry, ‘Our future is our youth!’

To end this review of association peccadilloes on a positive note, join me in welcoming Lisa Brechtel as the new MHI executive hired to lead the National Communities Council division of the institute!

IV.

OK, where’s Greg O’Berry (former president and COO of Hometown America); Bob Blatz (‘Mr. American Land Lease’); and, Greg Harmon, formerly a regional property manager with Green Courte Partners?

Well, Greg O’Berry resurfaced recently, at Onyx Real Estate, LLC., in Chicago, having just taken on an apartment consultancy project for the firm.

And Bob Blatz recently relocated, and went to work as an executive, with a self – storage firm headquartered in Valley Forge, PA.

Greg Harmon, MHM & BDM? He’s discovered, and now enjoys the ‘challenge and rewards’ of the entrepreneur life, as head of GHP, LLC, working throughout the Pacific Northwest.

Are there other former high profile execs you’ve lost track of but would like to know there whereabouts these days? Like Scott Jackson, Stephen Wheeler, Craig White, Nancy Huppert, Kathleen Lyden, Chrissy Jackson, and Gail Cardwell. Just let me know…

V.

Where will you be during the MHIndustry & LLCommunity asset class ‘triple play’ during March 2011?

14 & 15 March. Manufactured Housing Institute’s Spring (Winter?) meeting in Washington, DC. If you own/operate LLCommunities, you owe it to yourself to be present for the National Communities Council (‘NCC’) meeting on 14 March, from 2:30 – 4PM. For information, phone Thayer Long @ (703) 558-0678. I’ll be there for sure, after traveling via Cape May, New Jersey & the Lewes Ferry over to Delaware. Gotta have some of that fresh seafood cooked up by my brother!

22 March. The ‘Manufactured Housing Industry Innovation Summit’ in Portland, ME. Boy, this is one event I don’t want to miss, but probably will. Can’t be everywhere. But, if you live and work anywhere in New England, then you should phone Karen Brown – Mohr @ (207) 761-4221 for program details. Tell her ‘George sent me!’

29 & 30 March. Told you about this gem of a seminar program in last week’s blog posting. Nancy Geer has put together a ‘show stopper of an agenda’ for LLCommunity owners/operators! Call her @ (518) 867-3242 for details. Registrants are already signing – up from throughout the U.S. You don’t want to miss this unique opportunity to learn more about on – site, self – financing of new and resale homes, how to calculate ‘affordable’ & ‘risky’ price points on new and resale homes, within and outside LLCommunities, and much much more!

VI.

Are you a subscriber to the Allen Letter professional journal? If not, and you own one or more LLCommunities, you should be! It’s the ONLY trade publication in the U.S. & Canada that is focused on the information and networking needs of LLCommunity owner/operators. And, for a limited time, PMN Publishing is making the following ‘deal’ available to readers of this weekly blog:

For $250.00, subscribe to the Allen Letter professional journal, and, receive a copy of the recently released 50+ page, 22nd annual ALLEN REPORT. That’s right, a $334.95 savings! How so? The newsletter subscription is $134.95, and ALLEN REPORT retails for $450.00. YOU get both, for a limited period of time for only $250.00. Go figure! Better yet, pick up the phone and order today, via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

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

Best Salmagundi* of MHIndustry ‘Insider Information’ You’ll Ever Read!

• Salmagundi is ‘a little of this, a little of that; a mixture of something, information’

S.A.F.E. Act ‘fear factor’; portfolio ‘player’ vs. small owner/operator; one liner responses – and more, to last week’s blog about MHAssociations; ‘Where’re Greg O’Berry, Bob Blatz & Greg Harmon? And, where will YOU be March 14 & 15, 22nd, 29 & 30, 2011?

I.

“Many (landlease, nee manufactured home, community) owners are misusing a limited amount of uncertainty in the S.A.F.E. Act final rules, as an excuse to ‘do nothing’ (to ensure their self – financed home loans are in compliance). Their ‘fear factor’ is high, and the tragedy is, there’s no reason for it, except among the smallest of operators.”

“The problem is, they (LLCommunity owners) ‘don’t know enough about what they don’t know’, and hence are so paralyzed, they don’t reach out to get the knowledge they need to make the ‘fear factor’ go away! There’s also fear, among some large portfolio folk, their corporate structure needs changing, meaning someone with the knowledge and experience to set up and run a successful finance arm, would become as important and valuable to the organization, as the traditional CEO and COO ‘golden boy’ positions. And the pay for these financial execs could also be a problem. In an organization doing 40 loans a month, the top finance job is going to be a six figure position.”

“All his doesn’t change the fact that every LLCommunity, capable of filling even a dozen rental homesites a year with self – finance homes, cannot afford not to be doing it the right way! This widespread ‘wait & see’ attitude is a spurious one indeed, simply masking a lack of will and foresight. There’ll always be changes in lending law, and it’s shortsighted not to expect change, and to plan accordingly.” Kenneth Rishel, writing in an email response to an earlier blog posting, by the author, relative to the S.A.F.E. Act. (Lightly edited. GFA)

II.

The following story was prompted by an earlier blog posting, cautioning LLCommunity owners/operators not to be too aggressive with rental homesite rent increases, as more and more properties have been going back to lenders, following large rent increases that have resulted in severely declining physical and economic occupancy.

“I can say first hand, a (LLCommunity) REIT is out of control on their rent increases and fees. I bought a home in a ________- owned property and left it there vs. moving it to my park, since it seemed like a good investment. WRONG. Not only did the market drop shortly after my purchase, but my lot rent shot up from $387 to $427 in three years!”

“What bothered me more, is the fact they charged a flat fee for (natural) gas and water, even when my home sat empty month after month. Their rules and regs state they ‘only charge for consumption’, yet they continued to charge these fees (approximately $37/month), which I continued to ignore. Eventually they evicted me for back lot rent. Frankly, the lot rent was current, but I was behind with the flat fees. Rather than lose the home, I chose to donate it to the St. Vincent de Paul Society. Even that was a struggle to get them to approve, even after I paid all their fees, just to keep the home there.”

Question to this writer: Did they know you were a fellow LLCommunity owner?

Answer: “Absolutely. They knew I was a LLCommunity owner, which was why they were anxious to get me to leave once I started asking too many questions.”

III

One liners, a.k.a. ‘zingers’, have long been the staple of stand up comedians. And the following one liners, emailed in response to last week’s posting title: ‘Why I Belong!, but am frustrated with most MHAssociations’, would be humorous if they weren’t so darn serious!

“You hit the nail very squarely, sir, on the associations.” N

“This won’t make you many friends in MHAssociation (mis) management circles. LOL.” H

“Concerning MHAssociations in your latest blog – it’s time someone threw the skunk out on the table and talked about this.” R

“George, all it takes is the whisper of RENT CONTROL in the (state) legislature, to activate interest in industry political action, which is the ground roots of association membership.” P

There was but one lengthy, thoughtful reply, penned by James Ayotte, a veteran association exec in OH, New England, with MHI/NCC for awhile, and now exec with the Florida Manufactured Housing Association.

“You raise several relevant points. It has become much more difficult to do the work of the association in face of falling revenues. We’ve all been forced to reduce expenses, eliminate non – core services, and focus our limited resources on what’s important – protecting and promoting the MHIndustry’s interests. These decisions have required leadership from staff and volunteer leaders.

“…our mission is clear – to increase the sales of manufactured housing and residency in landlease communities. This mission is evident in everything we do, from ongoing meetings with our customers (e.g. Federation of Manufactured Home Owners of Florida), to our government affairs and legal agenda to our consume education and marketing activities. FMHA’s job is to educate the public about the value and potential of manufactured housing and LLCommunity living, to ensure communities remain open and profitable, and consumers have the ability to buy a manufactured home and (buy/rent) homesites like any other type of single – family housing.

“We don’t lack vision (‘forward focus’) or leadership here in Florida, we lack the resources necessary to accomplish everything we want to do as quickly as we want to do them. These past few years have been sometimes difficult, sometimes gut – wrenching, but we have never lost sight of our mission!

“I am excited about the future of the manufactured housing industry in Florida, and the role we play to position the industry for growth. According to the AARP, 8,000 people a day are turning age 65, and there is a growing wave of first – time homebuyers. These population trends support expansion of the industry. How well we capitalize on these opportunities will depend on the effectiveness of FMHA and industry members marketing efforts and education.

Jim continues his reply for another three paragraphs, and ends thusly: “These are issues I think about everyday, and I’m sure my colleagues do the same. Together, we can meet the industry’s challenges head – on and prevail! Separately, we will languish and waste our time talking about what the industry could have been.” Previous paragraphs lightly edited. GFA

Know what? That was the sole response received from MHAssociation execs nationwide, even after making a special effort to send this blog posting their way! Know what I think? Board chairmen should consider placing last week and this week’s blog in front of their salaried association executive, and ask them to pen a response based on their state’s present day experience, as Jim has done here. Then, distribute copies to all the association’s board members, to stimulate discussion, and maybe stimulate some ‘forward focus’, as well as renewed member recruiting. It’s worth thinking about…

By the way, several blog ‘floggers’ (faithful readers) reminded me of other irksome practices and trends characteristic of some MHAssociations, over time:

• Faux takeover of a state association by one or another membership segment. On one hand, this is easy to observe in states where landlord tenant legislation is a near perennial bugaboo. Count the number of attorneys who pen articles in the MHAssociation’s newsletter; more tellingly, what percentage of articles are penned by legal counsel? 100% in some cases! And rent control doesn’t have to be present; as some attorneys wind up specializing in LLCommunity law and are better able to write than most. And of course, there’s the historic leaning of an association, towards manufacturing & retailing (of homes) vs. the real estate investment side of the house – resulting in ‘two associations’ in some states, e.g. WA, OR, CA, AZ, and others.

• Want to be a ‘player’ on the national scene, but maybe avoid paying dues to become a direct member of the national advocacy body? Position yourself to become a state MHAssociation’s Certified Representative to that national group. Frankly, it a responsible job when ‘done right’; meaning attending as many committee meetings as possible, then reporting proceedings back to one’s state association board. Too many times however, assignment as a Certified Representative is sought and treated as a ‘perc’ by past board chairmen, who may or may not fulfill either responsibility. What’s wrong with sending a young, aggressive, even new association member, to learn what’s going on at the national scene, perhaps developing a passion for our industry and or asset class? As is oft said, and this certainly needs to be heeded by the MHIndustry, ‘Our future is our youth!’

To end this review of association peccadilloes on a positive note, join me in welcoming Lisa Brechtel as the new MHI executive hired to lead the National Communities Council division of the institute!

IV.

OK, where’s Greg O’Berry (former president and COO of Hometown America); Bob Blatz (‘Mr. American Land Lease’); and, Greg Harmon, formerly a regional property manager with Green Courte Partners?

Well, Greg O’Berry resurfaced recently, at Onyx Real Estate, LLC., in Chicago, having just taken on an apartment consultancy project for the firm.

And Bob Blatz recently relocated, and went to work as an executive, with a self – storage firm headquartered in Valley Forge, PA.

Greg Harmon, MHM & BDM? He’s discovered, and now enjoys the ‘challenge and rewards’ of the entrepreneur life, as head of GHP, LLC, working throughout the Pacific Northwest.

Are there other former high profile execs you’ve lost track of but would like to know there whereabouts these days? Like Scott Jackson, Stephen Wheeler, Craig White, Nancy Huppert, Kathleen Lyden, Chrissy Jackson, and Gail Cardwell. Just let me know…

V.

Where will you be during the MHIndustry & LLCommunity asset class ‘triple play’ during March 2011?

14 & 15 March. Manufactured Housing Institute’s Spring (Winter?) meeting in Washington, DC. If you own/operate LLCommunities, you owe it to yourself to be present for the National Communities Council (‘NCC’) meeting on 14 March, from 2:30 – 4PM. For information, phone Thayer Long @ (703) 558-0678. I’ll be there for sure, after traveling via Cape May, New Jersey & the Lewes Ferry over to Delaware. Gotta have some of that fresh seafood cooked up by my brother!

22 March. The ‘Manufactured Housing Industry Innovation Summit’ in Portland, ME. Boy, this is one event I don’t want to miss, but probably will. Can’t be everywhere. But, if you live and work anywhere in New England, then you should phone Karen Brown – Mohr @ (207) 761-4221 for program details. Tell her ‘George sent me!’

29 & 30 March. Told you about this gem of a seminar program in last week’s blog posting. Nancy Geer has put together a ‘show stopper of an agenda’ for LLCommunity owners/operators! Call her @ (518) 867-3242 for details. Registrants are already signing – up from throughout the U.S. You don’t want to miss this unique opportunity to learn more about on – site, self – financing of new and resale homes, how to calculate ‘affordable’ & ‘risky’ price points on new and resale homes, within and outside LLCommunities, and much much more!

VI.

Are you a subscriber to the Allen Letter professional journal? If not, and you own one or more LLCommunities, you should be! It’s the ONLY trade publication in the U.S. & Canada that is focused on the information and networking needs of LLCommunity owner/operators. And, for a limited time, PMN Publishing is making the following ‘deal’ available to readers of this weekly blog:

For $250.00, subscribe to the Allen Letter professional journal, and, receive a copy of the recently released 50+ page, 22nd annual ALLEN REPORT. That’s right, a $334.95 savings! How so? The newsletter subscription is $134.95, and ALLEN REPORT retails for $450.00. YOU get both, for a limited period of time for only $250.00. Go figure! Better yet, pick up the phone and order today, via the MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

***

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

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