Archive for the ‘Uncategorized’ Category

Best Kept Secret In All of Manufactured Housing!

Monday, April 2nd, 2018

Blog #480; Copyright @ 2 April 2018; community-investor.com

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

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

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

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

INTRODUCTION: Best Kept Secret; Exciting Stats & Continuing Trends; and, Be Careful Who You Read & What You Believe!

I.

Best Kept Secret in All of Manufactured Housing!

Everyone has heard, one way or another, about the Manufactured Housing Consensus Committee (‘MHCC’) – spawned by the Manufactured Housing Improvement Act of 2000, a.k.a. MHIA2000.

Well, did YOU know, as a manufactured housing ‘producer’ (Read, manufacturer), ‘user’ (Read, consumer interest), and or someone with ‘general interest &/or public official’ involvement with manufactured housing, you’re eligible to apply for an open seat on the MHCC? Didn’t think so. That’s why said opportunities continue to be the ‘Best Kept Secret in All of Manufactured Housing’!

And right now there are openings to be filled! By YOU?

If sincerely interested in ‘putting your hat into the ring’, so to speak, get hold of the Federal Register/Vol. 82, No. 54/Tuesday, March 20th, 2018/Notices; page 12200. MHCC members serve for ‘up to two terms of three years’, and ‘meetings take place by conference call or in person’.

Also contact the office of Teresa B. Payne, acting deputy administrator, office of manufactured housing programs at HUD, via (202) 708-6423, for more information.

One caution. In my opinion, this can be a very political minefield. I’ve applied in the past, but could never get past the manufacture housing industry politics that seem to prevail in Washington, DC. So, if you’ve got ‘friends in the business’, better positioned than mine, solicit their support as you quickly navigate the application process!

Deadline for submission of applications? 19 April 2018. So, this is a short fuse opportunity. FYI. A couple of our business peers who’ve served on the MHCC in years past are Susan Brenton in AZ, and Doug Gorman in OK.

II.

Have You Been Paying Close Attention?

There’s a plethora of not only encouraging statistics of late, but some ‘telling’ trending occurring on as well. And what are these leading indicators:

• Probably the most exciting, and announced in the feature article of the March issue of the Allen Letter professional journal are these two gems: 2018 new manufactured housing shipments are projected, based on trending to date, to reach 107,000 units by year end! And, continuing with said trending uptick in shipments, maybe 200,000 by year end 2022. Now, how bold & exciting is that?

• Then there’s the continued ‘proof’ of the ongoing paradigm shift, since the turn of the century – away from distribution by independent (street) MHRetailers to on-site home sales within land lease communities! This phenomena is referred to as the NEW ERA of manufactured housing & land lease communities. Specifically; seeing 24% of new HUD-Code homes going into LLCommunities during 2009, jump to more than 41% by year end 2015; and estimated to eclipse 75+/-% by year 2020. Now, how bold & exciting is that?

• And finally, for now anyway, there’s the ‘first time ever’ proof of affordable housing production dominance, by dint of HUD-Code manufactured housing shipments! How so? When polled, the ‘Big Three C’ manufactured housing producers (i.e. Clayton, CAVCO, Champion, together with a commanding 75+/-percent national market share) reported an average of at least 65 percent of their new home shipments during 2017 were (wholesale) valued at $50,000 or less! Now, how bold & exciting is that?

Did you get all that? By year end 2018 the manufactured housing industry might well have shipped more than 100,000 new HUD-Code homes; that by year end 2022, we might return to that ‘sweet spot’ of 200,000 new HUD-Code homes shipped; and during the same time frame, we see the volume of new HUD-Code homes going directly into land lease communities, increase from 24 percent to maybe 75 percent! But most important of all = WE ARE AFFORDABLE HOUSING!

III.

Ezine Distorts Manufactured Housing Trend

As much as some folk would have you believe, One REIT (Sun Communities), and a couple more (ELS & UMH – also REITs) do not a trend make!

Yes, according to a recently published Intelligence Report (3/29), a ‘third or more new manufactured housing shipments (i.e. 41 percent at year end 2015, & more now. GFA) are going into land lease communities.’

And yes, aforementioned property portfolios are buying in bulk, i.e. large numbers of new HUD-Code homes

But, the ezine misses an unfolding story, when it concentrates on what it views as the ‘three to five year window before (those three firms) MHCommunities fill their vacancies of existing home sites.’ – proposing that new HUD-Code housing shipment volume will go flat!

The ezine makes no mention of the 85 percent of estimated 50,000 land lease communities nationwide, characterized as having fewer than 100 rental homesites apiece, many of which are presently vacant.

That my friend, is where ‘the action’ should and will be going forward in manufactured housing and land lease community history! How so?

For the most part, the owners/operators of these estimated 43,000 smaller land lease communities don’t know how to fill their vacant rental homesites. Seriously. Most of them developed and or acquired these properties during the decades when independent (street) MHRetailers ‘were’ the distribution arm of the manufacturing process.

Most of that changed following the turn of the 21st century, when ‘easy access to chattel capital’ went away and has yet to return. Today, the new manufactured housing paradigm rests on the shoulders of entrepreneurial owners/operators of land lease communities. Individuals who are only now, for the most part, learning to

• Get their properties ‘ready’ to sell new homes on-site, e.g. curb appeal, foundations, advertising, etc.

• Spec & buy, with the right price point(s), new HUD-Code homes, directly from one or another manufacturer

• Effectively sell these new homes on-site and lease the rental homesites

• And when need be, seller-finance new home sales transactions via ‘captive finance’, manufacturer $ assistance, local banks, lease-option, contract sale, even leased as rental units.

Where are these businessmen and women going for assistance with this four step drill?

Some rely on freelance consultants (e.g. Ken Corbin), experienced peers (e.g. Spencer Roane, MHM re lease-option), factory training, and their state manufactured housing association.

One good example of the latter resource will occur 8 & 9 May at the RV/MH Hall of Fame in Elkhart, IN., when the IMHA/RVIC (Indiana association) hosts the second Two Days of New Home Seminars & Plant Tours. There, all four segments of the new home sales process will be taught by a half dozen capable, experienced, motivated land lease community owners/operators. Attendance is limited to 200. And other state MHAssociation executives are encouraged to attend and take this customized training session back to their membership.

A corollary to this training will be the ‘Six Right Ps of Marketing’, i.e. Product, Place, Price, Promotion, People, Process. If this too is new to you, be present to receive a plastic 3X5 wallet card, used as a Ready Reminder of how to market homes effectively!

For more information and or to register for this event, phone (317) 247-6258 x 14 and or visit www.inmharvic.org/homesalesplanttours/

OK, back to the theme of this part of this week’s blog posting.

YES, today the lion’s share of new HUD-Code homes being shipped ‘appear’ to be going mainly into the largest of the property portfolio firms’ land lease communities. And that’s expected to continue for awhile. However, the vast majority (i.e. 85%) of land lease communities across the U.S., are not in portfolios, and have an increasing number of vacant rental homesites – as the supply of ‘repos’ and resale homes dries up. That’s where and why new home shipment will have to head for years to come. And the sooner state manufactured housing associations, and HUD-Code housing factories, realize this – and start teaching owners/operators to effect this four step improved occupancy process, the better!

***

Shame On Us!

Friday, March 23rd, 2018

Blog # 479; Copyright @ 25 March 2018; community-investor.com

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

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

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

COBA8 Motto: ‘U Support US & WE Serve U!’ Goal of its’ print & online media =
to not only inform & opine, but to transform & improve MHBusiness performance!
____________________________________________________________________

INTRODUCTION. 50 land lease community owners/operators joined Spencer Roane, MHM, and George Allen, CPM, MHM, during the lunch hour on 3/20 at the MHShow in Tunica, Mississippi. If you were present, you know what you ‘did not miss’ – and excellent Power Point presentation titled, ‘Chattel Financing You Can Take to Your Bank!’ Since this is a ‘work in progress’, present intent is to present much of this same material as the feature article in the May issue of the Allen Letter professional journal – just in time to serve as a handout at the second Two Days of Home Sales Seminars & Plant Tours, at the RV/M H Hall of Fame in Elkhart, IN., on 8 & 9 May 2018.

FYI: to receive the aforementioned newsletter use contact information contained in the heading of this blog posting. To learn more about, and register to attend, the Two Days program, phone (317) 246-6258 X 14 or visit www.imharvic.org/homesalesplanttours/

Now, the narrative following this INTRODUCTION, contains some ‘never before published statistics’ related to the shipment of new HUD-Code homes by the Big Three C manufacturing firms. Frankly, nothing I’ve penned during the past 35 years better describes how the manufactured housing industry provides the lions’ share of the most affordable housing available in the United States today – despite the negative connotation implied in the title. Read on…

I.
Shame On Us!
A Sincere Plea to Manufactured Housing Aficionados

At the very time we should be rallying together to ‘ship more new HUD-Code homes’, elements within the manufactured housing industry, attempt to drive us apart! Read what follows here, then reach out to those distracting elements, encourage them to ‘get on board’, with everyone else, working together to effectively address, maybe even solve, the national ‘Lack of) affordable housing crisis so rampant in the U.S. today!

Yes, there is an affordable housing (supply) crisis; as many – if not most, homebuyers/owners and renters today, spend 40 to 50 percent (& higher) of their Annual Gross Income (‘AGI’) on PITI (principal, interest, taxes & insurance) mortgage payments or rent, oft exceeding the widely agreed upon 30 percent Housing Expense Factor (‘HEF’) guideline – one of six measures of affordable housing.*1

Know what? While manufactured housing claims to be the most affordable form of factory-built housing (i.e. This includes on-site production builders using factory-fabricated components; exterior & interior wall panelizers; manufacture housing; & modular housing) on a cost per square foot basis,.*2 we take this bold claim one major step further,

‘Most new HUD-Code housing shipped today is demonstrably affordable!’ How so? Specifically, the majority of new HUD-Code manufactured homes shipped during years 2017, and 2018 to date, were/are affordable, with an average of 60 percent of all shipped homes being valued at or below $50,000 (wholesale) apiece!*3&4

Now, compare this ‘theory cum truism’ with the critical flim flam (‘humbug’ or sham) bandied about concerning the near debut of a new type or class of upscale manufactured home.*5 As you just read, we’re already well-serving the affordable housing market with $50,000 new HUD-Code homes – even as the industry continues to be denied reasonable access to chattel capital for the on-site financing o f new homes within land lease communities (a.k.a. manufactured home communities). So, why not design and fabricate HUD-Code manufactured homes appealing to underserved markets throughout the U.S.? Lest you think this is a novel phenomenon, recall the days of Developer Series Homes, a.k.a. MHSelect, during the late 1990s – and now, in the minds of GSEs (‘government-sponsored enterprises’ Fannie Mae & Freddie Mac) maybe MHAdvantage. Still others are saying Millennial Housing!

A few months ago, a mini-white paper was published, and widely distributed to ‘housers’ throughout the U.S. Titled, ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities’. Well this ‘Shame On Us’ op/ed piece is a follow-on to that first ‘affordable housing crisis solution’, an admonishment to peers in the manufactured housing industry to settle down and collectively focus on two important matters at hand: continue to build more affordable homes, and increase shipment volume! To this latter point, we’re on track, at 90,902 new HUD-Code homes shipped during year 2017, to eclipse the idyllic 200,000 mark by year 2022!*6 So, let’s not derail our progress to date – or again, ‘Shame On Us!’

End Notes.

1. Six commonly recognized measures of affordable housing include aforesaid Housing Expense Factor (‘HEF’); Housing Opportunity Index (‘HOI’); Housing Wage (‘HW’); Workforce Housing (‘WFH’); Income to Home Value Ration (‘IHVR’); & ‘One or anyone who believes they live in affordable housing.’ From Book of Formulae, Rules of Thumb & Helpful Measures, George Allen, PMN Publishing, 2012, p. 38

2. $57.21/square foot for manufactured homes; $108.10 for new site-built homes (not including underlying realty); & $87.76 for existing site-built homes, per US Census Bureau MH Survey & HUD’s Survey of Construction.

3. This compares favorably to the $43,126 per manufactured housing unit ‘production value’ estimated by Dr. Stephen C. Cooke, using 2013 year housing production (shipments) as a base year, while engaged in research in behalf of the Manufactured Housing Institute.

4. HUD-Code manufactured housing producers were polled during March 2018 YTD, as to the percentage of new homes shipped that were/are valued at $50,000 o r less, wholesale. Those HUD-Code home manufacturers collectively control an estimated 75-80 percent of national market share, of this type factory-built housing. Among these Big Three C manufacturers, they reported percentages of 60, 65, & 70 percent.

5. Multisection manufactured homes with 5/12 roof pitch & shingled; conventional house siding; energy efficiency enhanced; built-in porch, and possible presence of a garage.

6. Based on the lead story in the March 2018 issue of the Allen Letter professional journal.

Note.

Free copies of the mini-white paper ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’, as well as the March 2018 issue of the Allen Letter professional journal, are available ‘for the asking’, by phoning the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or via COBA&: gfa7156@aol.com

***

Chattel Financing You Can Take to Your Bank! & Two Days of Home Sales Seminars & Plant Tours

Tuesday, March 13th, 2018

Blog # 478; Copyright @ 11 March 2018; community-investor.com

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

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

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

CBA7 Motto: ‘U Support US & WE Serve U!’ Goal of its’ print & online media =
to not only inform & opine, but to transform & improve MHBusiness performance!
_____________________________________________________________________

INTRODUCTION. So, where will YOU be during the lunch hour, 20 March, at the Tunica MHShow? Hopefully you’ll be convening with dozens of other land lease community owners/operators at the second ‘in search of chattel capital’ meeting. The first was held 17 January during the Louisville MHShow. Since then, much progress has been made, and Spencer Roane, MHM, and I, look forward to sharing this new knowledge with YOU! For more info, contact genevieve@roane.com GFA

In the meantime, here’s…

I.

Chattel Financing You Can Take to Your Bank!

We’ll be gauging the willingness of small to mid-size land lease community owners to reduce lender risk when underwriting personal property (chattel) loans on new manufactured homes sited on rental homesites within their properties. We know many owners/operators are motivated to do so, knowing and desiring significant financial incentives associated with filling vacant sites with new Community Series Homes (a.k.a. CSH models). These benefits include: 1) upgrading of curb appeal, 2) improvement to monthly cash flow, & 3) increased value of one’s realty investment! Furthermore, many sell new homes at minimal profit, to realize these benefits, and enjoy the likelihood of fewer defaults when homebuyers/site lessees are properly pre-qualified, and enjoying lower home loan interest rates.

Since many land lease community owners are already ‘guaranteeing’ their seller-financed loans, we suspect they’re not opposed to guaranteeing mortgages. We know many prefer mortgages, from third party lenders, over alternative forms of seller-financing, especially when dealing with such lenders avoids mortgage origination compliance issues.

Furthermore, we hope HUD-Code housing manufacturers join us in this endeavor, as ‘effecting more mortgages’ significantly increases the potential of selling and shipping more new Community Series Homes into land lease communities! After all, we still have an estimated 250,000 vacant rental homesites to fill throughout the nation.

The need for this strategic financial information is so great, and timely, we’ve formed a team to travel the U.S., teaching small to mid-size community owners/operators 1) home acquisition financing, 2) effective screening of homebuyers, 3) basic underwriting of loans, 4) how to reduce defaults, and 5) importance of establishing reserves to cover default-related costs. We’re looking to partner with HUD-Code housing manufacturers, and state manufactured housing associations, to bring this ‘first of its’ kind’ program to their members.

So, if you’re a new home manufacturer, or executive director of a state manufactured housing association, plan now to schedule this one day program for your members! Contact Spencer Roane, MHM, via genevieve@roane.com And it ‘goes without saying’, don’t wait for anyone else, national advocacy entity or otherwise, to offer YOU a similar educational opportunity. It simply is not going to happen. Why? Because only land lease community owners, actively and successfully engaged in seller-finance, know what YOU need to know to be successful!

II.

TWO DAYS OF NEW HOME SALES SEMINARS & PLANT TOURS

Did you attend – or miss the first Two Days of Plant Tours & Home Sales Seminars when held at the RV/MH Hall of Fame in Elkhart, IN., during the Spring of 2016? Well, the program is back!

Two Days of Home Sales Seminars & Plant Tours (Subtle title alteration signals change in priority between ‘then & now’) will occur 8 & 9 May, again at the RV/MH Hall of Fame in Elkhart, IN. This year’s event planned and sponsored cooperatively by COBA7 and the IMHA/RVIC (Indiana) association.

What’s will be covered? Building on the four steps to selling and financing new homes on-site within land lease communities…

• Getting One’s Property Ready for On-site Sale of New Manufactured Homes

• ‘Spec’ing’, Determining Affordable Price Point for, and Buying New Homes

• Effectively Selling New HUD-Code Homes On-site &/or Renting Them

• Seller-financing New Homes via contract, ‘captive finance’, lease-option, etc.

with particular emphasis on applying the ‘Six Right Ps of Marketing’ to the marketing and sale of new homes, as well as leasing of rental homesites!

Plan NOW to attend. Telephone (317) 247-6258 x 14 and request an event brochure, or online@imharvic.org/homesalesplanttours Attendance limited to 200, so don’t delay registering! Also visit www.imharvic.org/homesalesplanttours for info and or to register!

***

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

Tuesday, February 20th, 2018

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

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

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

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

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

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

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

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

I.

A ONCE IN A CAREER OPPORTUNITY FOR YOU!

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

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

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

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

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

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

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

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

II.

FOLLOW THE MONEY!

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

HOWEVER

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

HUH?

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

WHERE IS THE PARITY IN THIS?

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

WHAT DO YOU THINK?

III.

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

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

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

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

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

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

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

***

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

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

Friday, February 16th, 2018

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

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

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

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

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

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

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

&

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

I.

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

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

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

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

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

II.

‘A Call for New Tactics & Improved Strategy’

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

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

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

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

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

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

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

Back to the first bullet point.

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

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

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

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

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

***

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

***

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

Five Options;Making History; MHInsider & More!

Wednesday, January 31st, 2018

Blog # 475; Copyright @ 24 January 2018; community-investor.com

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

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

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

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

INTRODUCTION. Whew! Here’s what you’re about to read in this blog posting:

1. COBA7 moves center stage, as my decades long membership in MHI lapses. After 40 years, I no longer own/manage a land lease community & hence, am ineligible to continue participation in the NCC division I helped found more than 20 years ago!. Now I’m focused on serving your information, resources, communication, networking, deal-making, & PM training/certification needs.

2. Spencer Roane, MHM, & I stepped forward, on 1/17/2018, to lead the effort to craft & launch a hybrid chattel capital loan program to promote the seller-financing new HUD-Code homes within land lease communities!

3. MHInsider, our industry/asset class new print trade magazine took Louisville MHShow by storm. It is one impressive publication. Want a copy, phone (887) 853-0298 & ask for Darren Krolewski. And there will be no second new MH publication this Spring as once hinted at occurring. More about that later.

4. Four handouts you absolutely want to have in your possession going forward!

Sorry ’bout the length of this blog posting, but every single part is breaking news!

Five Options Update; Making History, MHInsider, & More!

Everything following is about our future, seller-financing new homes in land lease communities; a new, better & free way to get industry/asset class news; and, why you work in the most exciting business model in the U.S. today!

So, Where Do the Five COBA7 Alternatives Stand Today?

1. No change to COBA7. Investigating not for profit status procedure and have interviewed a manufactured housing capable, experienced, motivated representative in Washington, DC., to possibly represent land lease community interests across the board: legislative, regulatory, & housing supportive.

2. Meld COBA7 into the rumored new independent national advocacy entity planning to represent and serve all non-manufacturing segments of the industry. This isn’t going to happen if COBA7 is expected to be the lead entity; though, would be open to supporting all other segments in this fashion if it materializes.

3. Partner COBA7 with MHI, broadening the focus of its’ NCC division, to better serve information and statistical reporting needs of land lease communities nationwide! A second conversation has occurred, but no firm plans to date. There is a way to make this happen, but only if in the best interests of the asset class!

4. Have COBA7 quit MHI and proceed alone. Why? MHI, despite repeated invitations, remains unaffiliated with COBA7. Having sold my last land lease community, I’m ineligible to continue as a member, despite having helped found the NCC division, & am a perennial board member. I have not renewed membership & do not plan to do so unless irritants like ‘no proxy voting’, change.

5. Dissolve COBA7 during year 2018. Too early in the year for that alternative. Main concern? Unlike the way things are today (i.e. research, good resources, communication, networking & deal-making, & PM training/certification), land lease community owners/operators would again, as during the late 1970s – when I entered this business, operate in an information, training, & advocacy vacuum

Well, there you have it. Some progress since the first of the year (2018). And once again, if you have input re suggestions, etc., on this important matter – to those who own/operate land lease communities, of all sizes, nationwide, let us know via Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or gfa7156@aol.com. Thanks!

Land Lease Community Owners on Threshold of Making Manufactured Housing History, Financing New Homes On-site

Three dozen owners of land lease communities gathered for an impromptu, unofficial, likely historic meeting at 11AM, Wednesday, 17 January, during the Louisville MHShow. Why?

(*) Following recent release (circa 5 January) of “…final ‘Duty To Serve’ Underserved Markets plans…by Fannie Mae & Freddie Mac…approved by…the FHFA….” serving (an estimated) only “…4,000 purchasers, or a mere 1.85% of the (new) manufactured housing market through (year) 2020” – land lease community owners now realize the only practical solution to their need for ongoing chattel capital to fund HUD-Code housing transactions on-site, lies with them – likely in partnership with one or another supportive lender.

And that was the gist of the meeting hosted and led by George Allen, CPM & Spencer Roane, MHM, veteran land lease community owners/operators in the Midwest, East, and Southeast U.S.

Following background (historical) information from Allen, Roane covered the following points and more…

• During the past two years, the FHFA, Fannie Mae, & Freddie Mac have attended networking roundtables and congresses to learn more about the manufactured housing industry and land lease communities. They’ve also hosted listening sessions around the U.S. and in Washington, DC. Recent results? Reread second paragraph above (See *); plus they made an overt, but sadly unanswered, request for loan performance information from the industry. Ask me ‘Why?’ sometime….

• 1.85% of (MHARR) estimated 216,000 new HUD-Code homes to be shipped during 2018, 2019, & 2020, for a total of only 4,000 units. This barely scratches the surface of how much chattel capital land lease community owners need for on-site transactions during that period of time. So, community owners almost have to come up with an alternative $ source of their own. Where to start?

• Maybe create a hybrid loan made solely to carefully screened, qualified homebuyer/site lessees*1, a loan ensured (i.e.’ guaranteed’) by community owners, on attractive functional, reasonably-priced Community Series Homes (a.k.a. CSH models). And where a similar loan program might already be in effect, emulate the parts best suited for use in the land lease community environment.

• Desirable loan parameters: As low interest rates as possible, depending on lender’s borrowing ability; short term @. 12-15 years max); qualified community (Maybe graded per the ABClassification System*2) per curb appeal, resident relations, maintenance; long term rental homesite leases (longer than loan term) with reasonable escalations; and a community owner motivated by penalty (recourse) and or reward (no defaults).

OK, so where to go from here?

First step is already in play, by growing a list of community owners, and others (lenders, GSEs) desiring to be kept abreast of development of this hybrid loan program. And soon, there’ll be an opportunity to volunteer to be part of an ad hoc task force to actually articulate and proof the lending methodology. If you’re interested in having your email address added to this august list, simply send it to gfa7156@aol.com

End Notes:

1. Have 10% down payment; appropriate & sufficient verified income; securely employed; good rental history; no criminal history; acceptable to lender, debt-to-income (‘DTI’) ratios, front & back; and good credit.

2. For a FREE copy of the ABClassification form used, for decades, by land lease community owners/operators, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

MHInsider = most popular topic of conversation at MHShow!

We lost the Manufactured Home Merchandiser magazine a decade ago; The Journal, this time last year. Now MHInsider debuts to ‘pick up that slack’ with a top quality slick magazine, initially quarterly but prepared to go monthly if demand and support so indicates. You really do need to get your hands on the inaugural copy of MHInsider. Not only is it awash with good and timely trade information about manufactured housing and land lease communities, it’s now a Collector’s Item for placement in your corporate library. To request a copy, follow the instructions in the INTRODUCTION to this blog posting. And hey, Darren is looking for capable, experienced, motivated writers!

Four Part Handout Package Pulls It Together for ‘Housers’

• the mini-white paper: ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ Hundreds of copies now in circulation within and outside the manufactured housing industry. Read it!

• Official Definition of Affordable Housing. This is a FIRST for the manufactured housing industry and land lease community real estate asset class!

• $ examples of Affordable Housing, by definition, as well as Low Income Housing (‘LIH’), & Very Low Income Housing (VLIH’). New territory for many of us!

• ‘A Call for New Tactics & Improved Strategy’ Watch out! This one page, two sided challenge goes where no one in the MHIndustry has gone before! It’s a MUST READ. if you want to be inspired to take action in the days ahead.

Want FREE copies of one or ALL four documents? Simply phone the Official MHIndustry HOTLINE and request it/them, or via gfa7156@aol.com

***

George Allen, CPM, MHM
COBA7, a division of GFA Management, Inc., dba PMN Publishing.

Five Options Update; Making History; MHInsider; & More!

Friday, January 26th, 2018

Blog # 475; Copyright @ 24 January 2018; community-investor.com

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

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

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

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

INTRODUCTION. Whew! Here’s what you’re about to read in this blog posting:

1. COBA7 moves center stage, as my decades long membership in MHI lapses. After 40 years, I no longer own/manage a land lease community & hence, am ineligible to continue participation in the NCC division I helped found more than 20 years ago!. Now I’m focused on serving your information, resources, communication, networking, deal-making, & PM training/certification needs.

2. Spencer Roane, MHM, & I stepped forward, on 1/17/2018, to lead the effort to craft & launch a hybrid chattel capital loan program to promote the seller-financing new HUD-Code homes within land lease communities!

3. MHInsider, our industry/asset class new print trade magazine took Louisville MHShow by storm. It is one impressive publication. Want a copy, phone (887) 853-0298 & ask for Darren Krolewski. And there will be no second new MH publication this Spring as once hinted at occurring. More about that later.

4. Four handouts you absolutely want to have in your possession going forward!

Sorry ’bout the length of this blog posting, but every single part is breaking news!

Five Options Update; Making History, MHInsider, & More!

Everything following is about our future, seller-financing new homes in land lease communities; a new, better & free way to get industry/asset class news; and, why you work in the most exciting business model in the U.S. today!

So, Where Do the Five COBA7 Alternatives Stand Today?

1. No change to COBA7. Investigating not for profit status procedure and have interviewed a manufactured housing capable, experienced, motivated representative in Washington, DC., to possibly represent land lease community interests across the board: legislative, regulatory, & housing supportive.

2. Meld COBA7 into the rumored new independent national advocacy entity planning to represent and serve all non-manufacturing segments of the industry. This isn’t going to happen if COBA7 is expected to be the lead entity; though, would be open to supporting all other segments in this fashion if it materializes.

3. Partner COBA7 with MHI, broadening the focus of its’ NCC division, to better serve information and statistical reporting needs of land lease communities nationwide! A second conversation has occurred, but no firm plans to date. There is a way to make this happen, but only if in the best interests of the asset class!

4. Have COBA7 quit MHI and proceed alone. Why? MHI, despite repeated invitations, remains unaffiliated with COBA7. Having sold my last land lease community, I’m ineligible to continue as a member, despite having helped found the NCC division, & am a perennial board member. I have not renewed membership & do not plan to do so unless irritants like ‘no proxy voting’, change.

5. Dissolve COBA7 during year 2018. Too early in the year for that alternative. Main concern? Unlike the way things are today (i.e. research, good resources, communication, networking & deal-making, & PM training/certification), land lease community owners/operators would again, as during the late 1970s – when I entered this business, operate in an information, training, & advocacy vacuum

Well, there you have it. Some progress since the first of the year (2018). And once again, if you have input re suggestions, etc., on this important matter – to those who own/operate land lease communities, of all sizes, nationwide, let us know via Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or gfa7156@aol.com. Thanks!

Land Lease Community Owners on Threshold of Making Manufactured Housing History, Financing New Homes On-site

Three dozen owners of land lease communities gathered for an impromptu, unofficial, likely historic meeting at 11AM, Wednesday, 17 January, during the Louisville MHShow. Why?

(*) Following recent release (circa 5 January) of “…final ‘Duty To Serve’ Underserved Markets plans…by Fannie Mae & Freddie Mac…approved by…the FHFA….” serving (an estimated) only “…4,000 purchasers, or a mere 1.85% of the (new) manufactured housing market through (year) 2020” – land lease community owners now realize the only practical solution to their need for ongoing chattel capital to fund HUD-Code housing transactions on-site, lies with them – likely in partnership with one or another supportive lender.

And that was the gist of the meeting hosted and led by George Allen, CPM & Spencer Roane, MHM, veteran land lease community owners/operators in the Midwest, East, and Southeast U.S.

Following background (historical) information from Allen, Roane covered the following points and more…

• During the past two years, the FHFA, Fannie Mae, & Freddie Mac have attended networking roundtables and congresses to learn more about the manufactured housing industry and land lease communities. They’ve also hosted listening sessions around the U.S. and in Washington, DC. Recent results? Reread second paragraph above (See *); plus they made an overt, but sadly unanswered, request for loan performance information from the industry. Ask me ‘Why?’ sometime….

• 1.85% of (MHARR) estimated 216,000 new HUD-Code homes to be shipped during 2018, 2019, & 2020, for a total of only 4,000 units. This barely scratches the surface of how much chattel capital land lease community owners need for on-site transactions during that period of time. So, community owners almost have to come up with an alternative $ source of their own. Where to start?

• Maybe create a hybrid loan made solely to carefully screened, qualified homebuyer/site lessees*1, a loan ensured (i.e.’ guaranteed’) by community owners, on attractive functional, reasonably-priced Community Series Homes (a.k.a. CSH models). And where a similar loan program might already be in effect, emulate the parts best suited for use in the land lease community environment.

• Desirable loan parameters: As low interest rates as possible, depending on lender’s borrowing ability; short term @. 12-15 years max); qualified community (Maybe graded per the ABClassification System*2) per curb appeal, resident relations, maintenance; long term rental homesite leases (longer than loan term) with reasonable escalations; and a community owner motivated by penalty (recourse) and or reward (no defaults).

OK, so where to go from here?

First step is already in play, by growing a list of community owners, and others (lenders, GSEs) desiring to be kept abreast of development of this hybrid loan program. And soon, there’ll be an opportunity to volunteer to be part of an ad hoc task force to actually articulate and proof the lending methodology. If you’re interested in having your email address added to this august list, simply send it to gfa7156@aol.com

End Notes:

1. Have 10% down payment; appropriate & sufficient verified income; securely employed; good rental history; no criminal history; acceptable to lender, debt-to-income (‘DTI’) ratios, front & back; and good credit.

2. For a FREE copy of the ABClassification form used, for decades, by land lease community owners/operators, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.

MHInsider = most popular topic of conversation at MHShow!

We lost the Manufactured Home Merchandiser magazine a decade ago; The Journal, this time last year. Now MHInsider debuts to ‘pick up that slack’ with a top quality slick magazine, initially quarterly but prepared to go monthly if demand and support so indicates. You really do need to get your hands on the inaugural copy of MHInsider. Not only is it awash with good and timely trade information about manufactured housing and land lease communities, it’s now a Collector’s Item for placement in your corporate library. To request a copy, follow the instructions in the INTRODUCTION to this blog posting. And hey, Darren is looking for capable, experienced, motivated writers!

Four Part Handout Package Pulls It Together for ‘Housers’

• the mini-white paper: ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ Hundreds of copies now in circulation within and outside the manufactured housing industry. Read it!

• Official Definition of Affordable Housing. This is a FIRST for the manufactured housing industry and land lease community real estate asset class!

• $ examples of Affordable Housing, by definition, as well as Low Income Housing (‘LIH’), & Very Low Income Housing (VLIH’). New territory for many of us!

• ‘A Call for New Tactics & Improved Strategy’ Watch out! This one page, two sided challenge goes where no one in the MHIndustry has gone before! It’s a MUST READ. if you want to be inspired to take action in the days ahead.

Want FREE copies of one or ALL four documents? Simply phone the Official MHIndustry HOTLINE and request it/them, or via gfa7156@aol.com

***

George Allen, CPM, MHM
COBA7, a division of GFA Management, Inc., dba PMN Publishing.

What’s Going On?

Tuesday, January 16th, 2018

Blog # 474; Copyright @ 7 January 2018; community-investor.com

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

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

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

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

What’s Going On?

Why the erratic blog postings from COBA7 these past few weeks? I could blame the holidays (i.e. shopping, parties, travel); or, just ‘end of the year blahs’ – for me anyway. The truth of the matter is, I’m trying to sort matters out relative to our personal and corporate past, present, and future, relative to the manufactured housing industry and land lease community real estate asset class. And, as of this moment, New Years Day, I’ve not accomplished that end.

You see, I’m in good health; thoroughly enjoy what I do for you, i.e. collect data & research information, repackaging it in statistical reports, two monthly newsletters, several directories, the occasional mini-white paper – and yes, of late, semi-weekly blog postings. Plus, we provide professional property management training and certification (No one else does!), as well as hosting networking and deal making opportunities. But I feel a pressing need for significant and lasting change, during the weeks and months ahead. What form(s) might that change, or changes, take? As you know from blog posting # 473, we listed merger, partnership, sale or transfer, and liquidation, as four alternatives for COBA7, going forward.

And we requested your input – and many of you provided it. For that, we’re very grateful! As a result we’ve expanded those alternatives, in number, from four to five.

• No change to COBA7. Continue growing as ‘the primary national advocate & information resource’ for land lease communities nationwide & in Canada! This will likely necessitate converting to ‘not for profit’ tax status, & retaining services of a Washington, DC – based consultant as lobbyist.

• Meld COBA7 into the rumored new independent national advocacy entity planning to represent and serve all non-manufacturing segments of the industry! This group has met, is surveying your interest, & will likely proceed accordingly.

• Partner COBA7 with MHI, broadening the focus of its’ NCC division, to far better serve information and statistical reporting needs of land lease communities nationwide! An overture has been made to this end. One conversation to date.

• Have COBA7 quit MHI and proceed alone! Why? For starters, MHI, despite repeated invitations, remains unaffiliated with COBA7; continues reporting MH shipment #s different from IBTS, HUD, MHARR & COBA7; engages in meeting location affluence gerrymandering; &, allows no proxy voting at NCC elections.

• Dissolve COBA7 during year 2018, ending a 40 year career in professional property management, & 35+ years providing information and services to 50,000+/- land lease communities nationwide! This is least desirable alternative, but a practical one, relative to ongoing indecision per preceding bullet points.

That new fifth alternative recommendation, ‘Have COBA7 quit MHI and proceed alone!’ took us by surprise. But you make a good case when suggesting it, in light of more than one state manufactured housing association terminating membership with the institute. And we continue to field frustrations expressed, at being ignored, by other single and small portfolio owners/operators of land lease communities.

In the interest of full disclosure, our past and present MHI membership has been, and continues to be, for the time being, in the name of one or another of our for-profit firms, not COBA7 per se..

Well, there you have it. The gist of our efforts, now with your assistance, to sort things out relative to COBA7’s past, present and future, relative to the manufactured housing industry and the land lease community real estate asset class. The last thing we want to see, as first expressed in blog # 473, is a return to the information, resources, communication, PM training & certification, and networking wasteland of 40 years ago (1978), when I took over my first four (then) ‘mobile home parks’. But that’s where we could be headed….

What would you do? Again; I truly would like to know your input! So, respond either via gfa7156@aol.com, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764; or, via a personal note to GFA c/o Box # 47024, Indianapolis, IN. 46247. And I’m available most afternoons via (317) 346-7156. Many of you have helped get us this far, especially since COBA7s’ founding during early 2014. Thanking you in advance for your latest assistance.

George Allen, CPM, MHM
COBA7, a division of GFA Management, Inc., dba PMN Publishing

What Began in 1978 Comes to Close in 2018 – or Does It?

Friday, December 29th, 2017

Blog # 473; Copyright @ 23 December 2017; community-investor.com

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

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

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

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

INTRODUCTION: You a conscientious manufactured housing executive, savvy land lease community owner/operator, or better than average state MH association executive?

Three topics in this blog post have (in Part I) potentially long-range and serious consequences; (in Part II) unique education offerings not to be repeated anytime soon; and, (Part III…well, just wait to read what you’ll find there….) the MHIndustry is a-changing!

Please pay attention to all three messages. Again, one finds us on the cusp of moving ahead as a realty asset class OR regressing back to the ‘near total lack of resources of the 1970s’. The second simply offers opportunities available from no one else anywhere! And the third? The ‘jury is out’. Will a successor be better or worse for the MHIndustry?

I.

2018

What Began in 1978 Comes to a Close in 2018, or Does It?

Intimates know I started my professional property management career in 1978, with Turtle Creek Management, Inc., managing conventional apartment communities and four (then) mobile home park ‘turnaround challenges’, in Indiana and Kentucky.

In 1980, Carolyn and I founded GFA Management, Inc., overseeing, as she was wont to say at the time: “Anything that didn’t move!” We soon purchased our first (then) manufactured home community – out of foreclosure, selling it two years later for a sixfold return on our investment.

In 1988, via PMN Publishing, self-published my first book, Mobile Home Park Management (Since renamed Land Lease Community Management, 8th edition). Six years later, with co-authors David Alley & Edward Hicks, we published, via J. Wiley & Sons, Development, Marketing, & Operation of Manufactured Home Communities, along with its’ sister text, two years later, How to Find, Buy, Manage & Sell a Manufactured Home Community. Both case bound tomes became now industry classics and used copies continue to be available online.

During the next two plus decades, we launched the annual ALLEN REPORT; Allen Letter professional journal; International Networking Roundtables; the Allen CONFIDENTIAL! business newsletter; Manufactured Housing Manager (‘MHM’) professional property management training program & certification designation; and most recently, the Community Owners (7 Part) Business Alliance, or COBA7

Now, as we close in on our 40th year serving the manufactured housing industry and land lease community real estate asset class, we and business associates find ourselves in the midst of exploring, and soon deciding, which of several organizational alternatives ensures the continuation of the 40 year legacy of COBA7, a division of GFA Management, Inc., dba PMN Publishing.

Those alternatives to date, late December 2017, early 2018?

• Merger. A written proposal, to this end, was delivered via email to the Manufactured Housing Institute in early December. No response to date. No surprise there.

• Partner. Met with advocates for a new national entity representing all post-production segments of the manufactured housing industry. No commitments made, but COBA7’s presence would jump start such an effort.

• Sale or transfer. Intellectual assets of COBA7 offered to a business entity comprised of land lease community owners/operators, and parties, not interested in reverting to the 1970s wasteland of land lease community resources and communication.

• Liquidate intellectual assets of COBA7 over time, as need be….

Nothing particularly new here. MHI made a half-hearted pass at acquiring certain (now COBA7) assets more than five years ago. Post-production folk have been underrepresented for decades, someone is now addressing the matter. A few COBA7 assets are being absorbed by various business interests; though, the sum total is available to a capable communicator, industry experienced, motivated successor. And the least desirable alternative, liquidation, will occur quickly, or over time, depending on circumstances.

Bottom line? If you, as an individual, influential member of one or another national trade entity, and or businessman/woman owner/operator of land lease communities, desire to see COBA7 research (e.g. ALLEN REPORT, etc.); resources (e.g. National Directory of ALL Lenders, etc.); communication (e.g. Allen Letter & TAC!); networking (Networking Roundtable); publishing (‘All MHIndustry & LLCommunity books in print); and, professional property management (‘PM’) training/certification (e.g. the MHM program) continue on into the 21st Century, you’ll explore, and seriously consider supporting one or another of the first three alternatives described.

The question begging answering, by all, is: ‘How do you want to see year 2018 end?’ Like it is NOW, awash in products & services, OR, how it was in 1978 when there was no research, few resources, little communication, paltry networking, no publishing, and no PM training! Seriously. That is the compelling question! Your answer?

Want to discuss the matter? Reach GFA via the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764 or (31`7) 346-7156 or gfa7156@aol.com or via Box # 47024, Indianapolis, IN. 46247.

II.

Take Control of Your Education In Year 2018!

Are you, like many of our peers in the manufactured housing industry and throughout the land lease community real estate asset class, frustrated with the paucity of quality educational, via seminars and panel offerings during the course of the year? Well, here’s one effective way for you to help salve that frustration during the months ahead.

In a couple weeks, every state and province manufactured housing and community-related trade association, along with many of the property portfolio firms, will receive a letter from COBA7, a division of GFA Management, Inc., dba PMN Publishing, offering no fewer than six pithy and timely topics for presentation to members and employees. Here’s a summary of those offerings:

• ‘Official State of the Manufactured Housing Industry & Land Lease Community Real Estate Asset Class!’ No one else, on the public speaking circuit, presents ‘both sides’ of our industry/property type story to you and others!

• ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ The mini-White Paper, by the same name, has ‘housers’ in Washington, DC., talking about manufactured housing!

• ‘Four Part Procedure for Selling New (HUD-Code) Homes On-site, Using ‘Six Right Ps of Marketing’ to Get the Job Done!’ This the gist of the first ‘Two Days of Plant Tours & Home Sales Seminars’ in 2016. The handouts are incomparable!

• One day ‘Manufactured Housing Manager professional property management training & certification program’. 1,000+ MHMs own/operate communities throughout U.S. & Canada. The only active national program in the U.S. today!

• ‘Basic MH & LLCommunity Math, Formulae, & Rules of Thumb!’ No one else in the MHIndustry & LLCommunity business will share this sensitive info with you!

• ‘How to Pen & Self-publish Your Career or Firm’s Worthwhile Story!. This program has already spawned two autobiographies and many memoirs. Is your story worth telling? If so, now is the time to learn how to prepare and share it!

One or more of these six topics spike your interest? Then reach out to the state and national trade entities to which you pay dues, and request they explore hosting one or more of these programs for you, and your peers, during 2018. Cost? Minimal! All we ask is for host association or firm to cover travel expenses and offer a modest honorarium. In the case of the MHM program @ $295/student? If 20 or more paid candidates are in the class, expenses are taken from the tuition. No one else in the manufactured housing industry offers a more cost effective educational opportunity!

For questions, and to schedule sessions, phone the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764, or (317) 346-7156, or GFA 7156@aol.com

III.

Heard on the Street:
‘Danner is reassigned & Starkey is gone!’
Or, words to that effect….

That’s all we have to say on that subject at this time. More as it becomes available.

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Definition of Affordable Housing & We are ‘housers’!

Wednesday, December 6th, 2017

Blog # 472; Copyright @ 3 December 2017; at community-investor.com

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

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

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

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

INTRODUCTION: Here learn the official definition of ‘affordable housing’; what it means to be a ‘houser’; how two print trade publications, covering manufactured housing and land lease communities, will debut during next six months; and, how to become involved in ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ at Louisville MHShow on 17 January 2018.

I.

Definition of Affordable Housing*
by
George Allen, CPM Emeritus, MHM Master

“Housing is Affordable when an individual or household’s Annual Gross Income (‘AGI’), or local housing market’s Area Median Income (‘AMI’) – identified by postal zip code & available online at zipwho.com, can lease a conventional apartment and or buy a home in this local housing market, using no more than 30 percent of said AGI, or AMI, for said shelter and its’ related household (utility) expenses. For example. $50,000 AGI/AMI X .3 HEF (i.e. 30 % Housing Expense Factor) = $15,000 (divided by 12 months = $1,250/month) available for rent or mortgage PITI (principal, interest, taxes, insurance) & household expenses.” GFA

Furthermore,

Low Income Housing (LIH), is a subset of affordable housing, and occurs when AGI/AMI is only 80 percent of aforementioned 30 percent HEF. For example. $50,000 AGI/AMI X .3 HEF = $15,000 for rent or mortgage PITI, X .8 LIH factor = only $12,000/year, or $1,000/month available for rent or mortgage PITI & household expenses.

Furthermore,

Very Low Income Housing (‘VLIH’), is yet another subset of affordable housing, and occurs when AGI/AMI is only 50 percent of aforementioned 30 percent HEF. For example. $50,000 AGI/AMI X .3 HEF = $15,000 for rent or mortgage PITI, X .5 LIH factor = only $7,500/year, or $625/month, available for rent or mortgage PITI & household expenses.

* Copyright 2017 by COBA7, a division of GFA Management, Inc., dba PMN Publishing
Box # 47024, Indianapolis, IN. 46247
Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

Addendum to Definition of Affordable Housing, relative to manufactured housing’s use of chattel capital for new HUD-Code homes sited in land lease communities.

Here are two significant considerations pursuant to the three part definition cited above:

• First, know there must be an adjustment for rental homesite payments in the examples cited above, to fully account for the allocation of said 30 percent HEF. Deducting, for example, $333/month in each instance, the amount remaining for renting a manufactured home and rental homesite together, or rental homesite alone when one owns their home, is as follows:

Affordable: $15,000 (-) $3,996 (i.e. $333/month rent X 12 months) = $11,004 divided by 12 months = $917/month available

LIH: $12,000 (-) $3,996 = $8,004 divided by 12 months = $667/month

VLIH: $7,500 (-) $3,996 = $3,504 divided by 12 months = $292/month

• Second. Know routine manufactured housing finance generally does not include ‘household expenses’ within the 30 percent HEF cited above. By not doing so, homeowner/site lessees pay their 30 percent HEF for rent or mortgage PITI, while their household expenses (i.e. utilities, but not including CATV & phone) effectively increase the target 30 percent HEF to 40 percent and higher. End result? An otherwise ‘affordable’ housing investment turned ‘risky’!

Did that get your attention? Then join the ‘Solving Our Nation’s Affordable Housing Crisis’ movement, by attending the Louisville MHShow on 17 January 2018. Look me up there – I’ll be easy to find – and request a FREE copy of the mini White Paper, ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ Likely, opportunities for public discussion of the document, and planning how to effect said solution(s) to solve our nation’s affordable housing crisis.

II.

You & I are ‘Housers’!

That’s right. When one attends a Solutions for Affordable Housing program, planned and hosted by the National Housing Conference, one learns anyone who provides housing to American citizenry is a ‘houser’. Seriously. Now you know!

In any event, 220 of us convened at the Ronald Reagan Building & International Trade Center. to participate in as many as eight concurrent conference sessions, plus luncheon and closing plenary sessions. Among the attendees were three COBA7 affiliates, two MHI members, one MHARR executive, & one freelance manufactured housing industry consultant.

Prior to and during this event, three dozen copies of the aforementioned mini-White Paper: ‘Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!’ were distributed to presenters, including:

• Dana Wade, General Deputy Assistant Secretary at HUD. Good to know her!

• Jim Gray, Federal Housing Finance Agency (Think Duty to Serve pilot programs)

• David Leopold, VP, Target Affordable Production & Investments at Freddie Mac

• Michael Hernandez, VP, Affordable Housing Initiatives at Fannie Mae

• Neal Rackleff, Assistant Secretary, Community Planning & Development, HUD

In addition to these federal housing-related executives, there were representatives present from major banks and various NGOs (non-government organizations) such as Enterprise Community Partners, Mission First Housing, LeadingAge, Housing Partnership Equity Trust, Prosperity Now (formerly CFED), Mortgage Bankers Association, Urban Institute, National CORE, and many many more.

So, what topics were covered? Duty to Serve rule implementation, New Solutions for Nonprofit Rental Housing, Economic Revival in Challenged Communities; Minority Ownership, Meeting Housing Needs of Older Adults, and Rental Assistance Demonstration – plus the plenary sessions.

Learned a second new word at this NHC event: COLONIA. Know what it is? In the U.S., along the USA-Mexico border, colonias are ‘low-income, unincorporated housing areas inhabited mostly by Mexicans’.

The most exciting aspect of this one day event? How ‘manufactured housing’ was mentioned, as a practical solution to the U.S. ‘affordable housing’ crisis, in all three sessions I attended! The downside? With but a handful of manufactured housing aficionados present, there really wasn’t much we could do to carry the day for our industry and realty asset class! Maybe next time around…

III.

What to Expect During 2018 – Revisited!

As you’ll, recall, blog posting # 471, tee’d you up as to what to expect to occur during year 2018. Remember?

• A ‘new class’ of HUD-Code manufactured home, not likely to be referred to as such, but designed to appeal to underserved housing buyer markets, e.g. millennials. Unique features? 5/12 roof pitch with asphalt shingles, mounted on permanent foundations, have a built-in porch, and likely a garage or carport at one end of the home. Some wags have already taken to refer to this ‘new class’ of home as being Millennial Housing. What do you think it should be called? Tell the folk at MHI: (202) 783-4087. MHI’s Dick Jennison will be ‘holding forth’ on this timely subject @ 8AM on 1/17 at the Louisville MHShow. Be there!

• The affordable housing crowd, including ‘low cost’ & ‘very low cost’ housing folk are discovering HUD-Code manufactured housing and the land lease community lifestyle! This is already a-happening, as evidenced at the recent National Housing Conference program: ‘Solutions for Affordable Housing’ in Washington, D.C. (Frankly, I can’t figure why there were no salaried or elected MHI leaders present – yet the institute is a ‘member’ of the NHCC) Go figure.

• Another change ‘in the wind’, involves an active initiative to organize and launch a new independent third party national advocacy entity to serve the lobbying and related needs of post-production segments of the manufactured housing industry. This is not COBA7! – but something altogether new. I’ll put you in touch with the ‘organizers’ if you email me via gfa7156@aol.com

• Land lease communities continue to be the ‘new and growing primary market’ for the distribution of HUD-Code manufactured homes. However, this trend, while obvious among most of the 500+/- portfolio owners/operators of land lease communities, has not taken hold among the estimated 42,500 smaller LLCommunities (i.e. mostly Mom & Pop properties). So, a second year initiative is being planned by the IMHA/RVIC (Indiana) during the Spring of 2018: a second Two Days of Plant Tours & Home Sales Seminars’, at the RV/MH Hall of Fame in Elkhart, IN. Want to attend? Phone (317) 247-6258.

So now we learn there’s a fourth initiative to materialize during year 2018! The launch of not one, but two new print trade publications (i.e. magazines) to serve the information needs of the manufactured housing industry and land lease communities nationwide. As you know, Kurt Kelly’s online ezine, Manufactured Housing Review launched earlier this year. Well, be present at the aforementioned Louisville MHShow to pick up copies of the new pub, rumored to maybe be MHInsider (Sound familiar? It should. That’s how COBA7 affiliates are referred to in each of the Allen CONFIDENTIAL! business newsletters – but there’s no connection with the alliance). And a second new print trade publication will likely debut during the Spring of 2018. No further details available at this time. Well, appears the manufactured housing industry will be back in the communication business!

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TWO POSTSCRIPTs.

Be aware, this is the absolutely last week (12/4-8/2017) for submission of LLCommunity portfolio statistics to COBA7, for inclusion in the 29th annual ALLEN REPORT, due out as a lagniappe in the January 2018 issue of the Allen Letter professional journal!

And, we’re putting together a one day Manufactured Housing Manager (‘MHM’) professional property management training and certification class on 16 January 2018 (the day before the Louisville MHShow begins) at a hotel near the KY fairgrounds. If interested, phone (317) 346-7156 to secure an invitation. Class limited to 25 @ $295.00 apiece. Remember, more than 1,000 MHMs now own/operate LLCommunities nationwide and throughout Canada. No other PM certification program comes anywhere close to covering this important material.

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George Allen, CPM & MHM
COBA7, a division of GFA Management, Inc., dba PMN Publishing
Indianapolis, IN. 46247
(317) 346-7156