What You’ve Been Waiting for….

Blog # 247 Copyright 2013 26 May 2013

Perspective. ‘Land lease lifestyle communities, a.k.a. manufactured home communities & earlier, ‘mobile home parks’, are the real estate component of manufactured housing.’

Purpose. ‘Primary research, resources, & op/ed communication means among land lease lifestyle community owners/operators nationwide; plus, national advocacy awareness.’

I.

Manufactured Housing Dichotomy Contrary to Reason

II.

Triple Threat to Manufactured Housing Trumps Obama’s Press – described Trifecta!

III.

Manufactured Housing’s ‘Perfect Storm’ is in the Offing…

IV.

Errata

V.

Purpose

***

Manufactured Housing Dichotomy Contrary to Reason

A dichotomy occurs when something is divided into two parts. For the purposes of this discussion, we’re referring to the HUD – Code manufactured housing reality, where we fabricate and market the Most Affordable Shelter Option Available Anywhere (Half the cost, per square foot, of contemporary site – built homes, not including underlying realty), on one hand; and, on the other, the Ability to Produce Super Quality, Exciting Design Homes Priced at a Quarter of a Million Dollars! What a disparate dichotomy!

But then, look what happens to this dichotomy when Marketing and Sales Functions do their part, and Home Finance comes into play.

Title I chattel (personal property) capital is the ‘choice of necessity’ for financing affordable manufactured homes sited within land lease lifestyle communities (a.k.a. manufactured home communities). For the most part, that type home financing has been ‘missing’ since the turn of this century; missing not for lack of capital resources, but ‘missing the mark’ at which many, if not most, prospective homebuyers, of manufactured homes, find themselves in today’s battered national economy. Contemporary chattel loan underwriting is understandably stringent; but as a consequence, is woefully underserving its’ traditional market of the past 60+ years.

Title II realty – secured capital is available to an increasing degree, as the overall U.S. housing industry slowly – but – steadily recovers from its’ debacle of 2008. And know what? It’s this type home finance that is most readily available to mortgage the quarter million dollar HUD – Code manufactured homes described earlier.

Bottom line? The folk who need affordable housing the most, have the least opportunity to secure financing for it; while those who’re fortunate enough to qualify for quarter million dollar homes, have little problem becoming mortgagors.

Hence, manufactured housing’s double dichotomy is contrary to reason; to wit: mortgage financing is, for the most part, unavailable to the lowest priced homes (buyers) produced by HUD – Code home manufacturers, especially when going into LLLCommunities. But mortgage financing is generally readily available to the highest priced homes (buyers) produced by HUD – Code home manufacturers, when being sited on developed realty conveyed fee simple. Go figure. It’s a conundrum of the first degree.

II.

Triple Threat to Manufactured Housing Trumps Obama’s Press – described Trifecta!

Ah yes, another definition to start this discussion. This time around however, the key word, trifecta, is being blatantly misused by this nation’s secular press as they report on three abuses of power being laid at the feet of the current administration.

Trifecta: “a wager in horseracing requiring correct choice of first, second, and third place in exact order to win.” The New American Webster College Dictionary.

Excuse me, but I’ve yet to see, let alone understand, how the Bengazi murder cover up, IRS targeting of conservative political groups, and Department of Justice’ wholesale accessing of Associated Press (‘AP’) telephone records, qualifies as anything but a triad, or triplet of missteps, but certainly not a ‘trifecta’, occurring during President Obama’s second term in office. And at this point, I don’t think the American public really cares which ‘offence’ comes in first, second, or third – as they’re equally onerous trampling of our rights ‘to know’, ‘enjoy privacy’, and ‘engage in free speech’.

So, does the HUD – Code manufactured housing have its’ own set of (three) challenges to be dealt with during the present time frame? You bet, and it’s certainly not a ‘trifecta’. For the purposes of this blog posting – and the luncheon presentation I’ll deliver in Urbana, IL. during IMHA’s annual meeting on 13 June, 2013, I’m describing them as the Triple Threat to Manufactured Housing! Want to attend? Phone (217) 528-3423 and talk to Bob Thieman, CAE.

Here are three titillating paragraphs recently mailed to all HUD – Code home manufacturers and independent (street) MHRetailer, as well as land lease lifestyle community owners/operators, throughout the Midwest:

• Everyone talks of the shortage of chattel (personal property) capital to finance home transactions within LLLCommunities; but that’s NOT the real problem ‘holding us back’. Come and hear the truth, and learn what you might do about the matter. That is, unless YOU don’t care what happens to the MHIndustry….

• According to the Uniform Manufactured Housing Act, agreed upon by the Uniform Law Commission last July, manufactured housing ‘vehicle titles’ are to become ‘a thing of the past’, the sooner the better – in their eyes. Consider the tax consequences and otherwise! Come and learn the ‘who’, ‘when’, ‘where’, ‘how’ & ‘why’ behind this imminent threat to manufactured housing – as we’ve known it for more than 60 years!

• We’ve come to think of HUD as a ‘way of (business) life’, where manufactured housing is concerned. Well, guess ‘who’ is working to supplant HUD and become our new federal regulator – and ‘why’, as well as ‘where’ & ‘how’? And if we’ve had difficulties getting HUD to ‘overtly support the marketing of the most affordable housing option in the U.S. today’ – a reality they understand and write about, but don’t go out of their way to support – think how much more difficult it will become with a new ‘unknown’ regulating our industry, particularly one with an ‘agenda’, e.g. like having fire sprinklers installed in every manufactured home….

Well; all that should get you to thinking, if not disturbing your complacency relative to the near and interim future of HUD – Code manufactured housing and LLLCommunities nationwide. What can YOU do about it? For starters, patronize IMHA’s annual meeting in Urbana on 12 & 13 June 2013 – to learn ‘the rest of the story’; OR, wait for a few weeks to read what we post in future blogs. That is, unless one or another of our national advocacy bodies, and you know we have two of them, decides to ‘really go public’ with the whisperings we’ve been hearing the past few months….

III.

Manufactured Housing’s ‘Perfect Storm’ is in the Offing…

What is manufactured housing’s Perfect Storm? Well, since it’s just now becoming apparent to some, we need to bide our time and comment a bit, as unique – in this case ‘once in three decades’ circumstances are coming together to ‘rock our boats’. One of the few hints I’m comfortable giving you, this time around – so as not to violate confidences, is to suggest researching the specific definition of the last word in this III blog title: offing. Thought I knew what the word meant beforehand, but was surprised when I checked. The specific definition eerily applies.

OK, here’s another tidbit. the Perfect Storm involves individuals, not things, places, products, or services. And perhaps matters we’ve taken for granted for many years, are about to change – markedly. Might happen today; but no, probably a bit further down the road. How far? Now there’s the unanswerable secondary question. It’s like watching weather personalities on TV. We view for information, enlightenment, even Warning; but given the ‘nature’ of weather; and in this case, people; well, the Perfect Storm could indeed happen tomorrow, maybe a few weeks or months from now, but certainly no longer than a year out! And No, this isn’t a consequence of the ‘Big Three C home manufacturers’ controlling MHI, or the few mega portfolio owners/operators dominating the NCC.

Will tell you this though. When that Perfect Storm is indeed on MHIndustry’s near horizon; you’ll likely read about it here first, maybe even in Jim Visser’s The Journal, or both places. So, as they say in radio talk: ‘Stay tuned!’ And it’s unlikely I’ll be the one to ‘Break the news’ to you. In fact, as I reflect on the matter, I believe Bruce Savage, former MHI staffer and present day freelance public relations consultant, is the only MHIndustry – savvy wordsmith remaining, who has the stones and cred to sound a Perfect Storm WARNING! In the meantime; want to hire Bruce to assist with communications and public relations work for your firm? Reach him via (202) 664-4512.

IV.

Errata

If you’re an Allen Letter professional journal subscriber, and received advance copies of the registration brochure, describing the upcoming 22nd International Networking Roundtable, know the hotel phone numbers listed on the back panel are INCORRECT. Here’re the correct phone numbers:

Hotel/Chicago Indian Lakes Resort in Bloomingdale, IL: (800) 334-3417. When phoning in your reservation, mention the ‘Networking Roundtable/GFA’
Need driving directions to the resort hotel? Phone (630) 529-0200

V.

Purpose

Did YOU notice? We’ve added a Purpose statement at the beginning of this blog posting. Why? In recognition of the emerging reality, among many land lease lifestyle community owners/operators, and an increasing number of MHIndustry ‘players’, a New Era is indeed upon us, Perfect Storm or no Perfect Storm. And it turns out this weekly blog posting is expected to ‘lead the way’ into it! We’re grateful you’re along for the ride. GFA

***

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

Leave a Reply