Daily Business News

Stocks end the month on a down note pulled by weak domestic economic news and Spain’s declaration it’s in a recession. CNNMoney tells MHProNews the Dow Jones Industrial Average edged down -0.11 percent, -14.68 points, to end the day at 13,213.63 The Nasdaq lost even more, -0.74 percent, to close at 3046.36, while the S&P also moved down, -0.39 percent, to 1397.91. All three indexes closed down for the month, the first time this year. The Yahoo! Finance Manufactured Housing Composite fell -0.83 percent to close at 1080. All housing stocks we track closed down except one. UMH Properties gained +0.86 percent, +0.10, to close at 11.79. Deer Valley fell the most of tracked stocks, declining 34.29 percent, -0.24, to end the trading day at 0.46. Affiliated Managers Group 113.62 -0.72 (-0.63%). Cavco 51.60 -0.43 (-0.83). Clayton Homes, Vanderbilt Mortgage and Finance, as well as MH home-building, lending and other housing suppliers parent company Berkshire Hathaway 120,800 -125.00 (-0.10%). Champion, Liberty Homes, and Palm Harbor all remained unchanged. Drew Industries 29.78 -0.24 (-0.80%). Equity Lifestyle Properties 69.94 -0.17 (-0.24%). Louisiana Pacific Corp. 9.05 -0.06 (-0.66%). Nobility Homes 7.22 -0.08 (-1.10%). Patrick Industries 12.95 -0.05 (-0.38%). Skyline Corp. 5.49 -0.52 (-8.65%). Sun Communities 43.75 -0.03 (-0.07%). Third Avenue Value Fund (4-27) 45.53 -0.08 (-0.18%). UMH Properties 11.79 +0.10 (+0.86%). Universal Forest Product 37.40 -1.03 (-2.68%).

(Graphic credit: CNNMoney and RealTick)

In her segment about the tornadic dangers to MH residents, Iowa's KWWL-TV reporter Kera Mashek does not distinguish between pre-HUD Code homes and manufactured housing in her report. It is all “mobile homes” to her. Unfortunately, the U.S. Commerce Dept.'s National Oceanic and Atmospheric Administration's (NOAA) statistics on fatalities resulting from tornadoes does not either. The video does show one MHC in Iowa that does have a storm shelter for residents, and a man living in MH who values the affordability over the fear factor. Stressing that no one is safe above ground in a tornado, Iowa Manufactured Housing Association (IMHA) member Margaret Clark, responding to the video, says the report gives the false sense that if you do not live in manufactured housing, you will be safe. Citing the Joplin twister that killed 160, none of whom lived in manufactured housing, Ms. Clark notes NOAA's statistics which show over twice as many died in “permanent” homes as in “mobile homes”, without distinguishing between mobile and manufactured. She says Iowa law requires manufactured homes to be anchored 3-4 feet deep. MHProNews has learned Minnesota is the only state that requires MHC's to have storm shelters. For Ms. Clark's response to Kera Mashek, here is the link.

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Following a story we posted April 25, Indiana's Gov. Mitch Daniels met with RV industry leaders in Elkhart, Indiana to commend them on their industry turn around and discuss the future of the industry. He says 83 percent of all RVs are made in Indiana, an increase from the 60th percentile before the recession. RVBusiness says Elkhart County had been the poster child of the recession with its employment rate hovering around 20 percent, but has now dropped to 9.9 percent. Doug Gaeddert of RV manufacturer Forest River, Inc., says he has hired 3,500 employees since 2009, and now has a workforce of 8,500. The unemployment rate before the recession was around five percent. MHProNews understands Elkhart is also home to a number of manufactured housing and manufactured housing component producers. (Photo credit: Fairmont Homes)

A bill up for second consideration today (April 30) by the Pennsylvania House of Representatives, according to the Newtown-Pa.Patch, would require the Department of Community and Economic Development to establish regulations for relocating manufactured homes. SB 1141 (Sen. Charles Mcllhinney, R-Bucks/Montgomery) also defines “manufactured housing.” MHProNews has leaned the third consideration for the measure is set for the following day, Tue. May 1. (Image credit: Wikipedia Commons)

From Georgia MHProNews.com learns ChronicleAugusta reports a pre-HUD Code mobile home that caught fire in the middle of the night in 2006 and took the lives of a young couple spawned several lawsuits brought by the families. The city of Augusta claims protection under the legal principle of sovereign immunity in defending itself, a claim rejected by the court. A city electrical inspector, who did not enter the 37 year-old rental, had approved reconnecting the electricity a month before the fire broke out at night. The city claims it was not necessary to enter the home and that the cause of the fire is unknown. Plaintiffs contend city code requires an inside inspection. The city has lost appeals to the Georgia Court of Appeals and the Georgia Supreme Court. Augusta may now appeal to the U.S. Supreme Court, settle with the families, or face trial in neighboring Columbia County. Georgia Power and one of the landlords, both named in the lawsuit, settled out of court. (Photo credit: The Augusta Chronicle)

Two Illinois men have been charged with defrauding investors out of $800,000 in a modular home building scam, the DailyHerald tells MHProNews.com. Richard Osty of Waukegan and Ronald Moore of Wheaton allegedly told investors $1,500 (sometimes more) would get them a loan for a green modular home, a one dollar plot of land from the city of Chicago, contacts with modular producers, assistance selling the home, and a 10.25 percent return. On Thursday, April 28 a DuPage County grand jury returned a 122-count indictment against Osty for theft and securities fraud, and an 18-count indictment against Moore for securities fraud. The pair apparently had made contacts with none of the above. One of the counts against Osty is for theft over $500,000. (Photo credit: FEMA/dhs)

MarketWatch reports net sales for T.J.T., Inc. fell 24 percent for the second quarter ending March 31, 2012, resulting in a net loss of $286,000 for the quarter compared to a net loss of $296,000 for the same quarter a year ago. Net loss for the six months ending March 31, 2012 was $615,000, higher than the net loss of $582,000 for the same six months the previous year. The report cites increased administrative expenses, start-up costs for the new North Dakota plant, and corporate office relocation expenses for the increase in net loss. TJT provides recycled tires and axles, and set-up supplies, to the manufactured housing industry, and also sells after-market products to the MH, RV, and residential markets. MHProNews.com has learned the company filed suit March 30, 2012 against four former management employees including the former CEO, president, and chairman Terrence Sheldon alleging wrongful use of trade secrets, breach of fiduciary responsibilities, and interference with third-party relationships. (Image credit: T.J.T., Inc.)

All three indexes ended the last full week of the month on a positive note as the Dow Jones Industrial Average gained 23.62 points, + 0.18 percent, to end the day at 13,228.24, according to CNNMoney. The Nasdaq gained even more, +0.61 percent, to close at 3069.20, while the S&P also moved up, +0.24 percent, to 1403.36. The Yahoo! Finance Manufactured Housing Composite rose +1.64 percent to close at 1089.1. Housing stocks we track mostly closed up. Patrick Industries gained the most of tracked stocks, moving up 13.63 percent, +1.56, to close at 13.00. Skyline Corp was the only tracked stock that closed down, losing -0.99percent, -0.06 to close at 6.01. Affiliated Managers Group 114.54 +0.64 (+0.56%). Cavco Industries 51.95 +2.30 (+4.63%). Clayton Homes, Vanderbilt Mortgage and Finance, as well as MH home-building, lending and other housing suppliers parent company Berkshire Hathaway 120,850 +150.00 (+0.12%). Champion, Liberty Homes, and Palm Harbor all remained unchanged. Deer Valley 0.70 +0.05 (+7.69%). Drew Industries 29.97 +1.46 (+5.40%). Equity Lifestyle Properties 70.13 +0.78 (+1.12%). Louisiana Pacific Corp. 9.11 +0.28 (+3.17%). Nobility Homes 7.30 +0.31 (+4.43%). Sun Communities 43.78 +0.56 (+1.30%). Third Avenue Value Fund (4-26) 45.61 +0.12 (+0.26%). UMH Properties 11.69 +0.11 (+0.95%). Universal Forest Product 38.42 +1.18 (+3.17%). (Graphic credit: CNNMoney and RealTick)

WOOD-TV reports from Edmore, Michigan the owner of scrapped Erdmore Estates Mobile Home Park is in jail, and cannot respond to any violations. Corey Davy bought the community in 2008 in a bankruptcy sale after the state had revoked the previous owner's license. Davy went to jail for two years for a drunk driving offense, and due to numerous violations Montcalm County condemned Erdmore Estates. Davy trashed the homes last summer, collected the scrap metal, and left the remains, which pose a health hazard. MHProNews.com has learned his lawyer says he has mental health issues. Davy is currently in jail for fighting with his wife. There are state and local laws and regulations governing the preparation, placement, and operation of manufactured housing communities but none that deal with them once they are abandoned. (Photo credit: WOOD-TV)

SBWire reports ModularHomesNetwork (MHN) says the modular housing industry is stabilizing after losing a number of manufacturers in 2011. With more starts this year than last, and growth in the multi-family market, MHN notes Q1 modular housing growth in the New England area, New Jersey, and upper Midwest as well as Texas and Louisiana. Figures in our MHProNews story posted Dec. 2, 2011 (the last accounting we have seen) from the National Modular Housing Council show 3,544 modular homes shipped in the third quarter of 2011, a two percent drop from the same quarter 2010. (Photo credit: Modular Homes of Delaware)