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White House Signing Ceremony on Historic Pro-Growth Financial Regulatory Reform

May 25th, 2018 No comments

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WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement to the Daily Business News upon attending a signing ceremony at the White House for S. 2155.

 

The “Economic Growth, Regulatory Relief and Consumer Protection Act,” is the formal name for S 2155, which was signed into law yesterday.

The White House pressroom provided the video below.

 

 

Hensarling’s office tells MHProNews that this “represents the most significant pro-growth financial regulatory reform package since the passage of Gramm-Leach-Bliley nearly a generation ago.”

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Jeb Hensarling, official photo, chairman of the powerful House Financial Services Committee, R-TX.

Thanks to hard work and leadership in both the House and the Senate, this pro-growth, bipartisan package will provide much-needed regulatory relief to Main Street banks and credit unions,” the Texas Republican told MHProNews.

This bill takes a major step toward allowing the banking system to serve the needs of American businesses and American families instead of working in the interest of Washington bureaucracy,” Hensarling said.“I look forward to continuing to work with my colleagues on both sides of the aisle and in both chambers to build on the progress we achieved here with an additional package of bipartisan pro-growth capital formation provisions to unleash the full potential of our economy.”

While a national manufactured housing association is trying to crow about this somehow being their success, long-time, careful MHProNews readers know that the Manufactured Housing Institute declined a deal like this by agreement with the non-profit groups, during the Obama years. If this was a good deal now, why wasn’t it a good deal then?  See related reports, linked below, for more.

Based upon her own campaign pledges, this deal to pass S 2155 would not have happened under a Madam Clinton Administration. The Trump Administration, those in Congress who voted yea, plus those who supported them are the ones who deserve the credit.

Again, as a reminder, the Manufactured Housing Institute had two paid pro-Clinton speakers on their stage in Chicago just days before the 2016 election. Why don’t they mention that in their message to member?

MHI’s most powerful members are part of Warren Buffett led Berkshire Hathaway.  They never thought that Donald Trump would win, they never saw the roll back to Dodd-Frank elements signed into law this week coming.

An industry member called just minutes ago, laughlingly said thanks for the “telling the truth,” and spoke about Tennessee “mountain men,” who stick up for each other.  He used a HatfieldMcCoy feud analogy.  He explained that the industry is in a blood feud, a fight to the finish. Smiling faces should not be confused with reality.  That’s why industry members have left MHI, and some are formalizing a new trade association.  More on that in the related resources, linked below.

They arguably have no victory lap to take in Arlington, Knoxville, or Omaha. If they want to debate that publicly on video, they should let our publisher know.  “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Related Reports:

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

Clayton Homes, Top 25 Manufactured Housing Industry Report, Trend Lines

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Shifting Momentum, Demographics, Women, the 2018 Midterms, and Manufactured Housing

May 23rd, 2018 No comments

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If one takes candidates at their word – which is never a given once they are elected  – it must be noted that candidates Secretary Hillary Clinton, and businessman, builder and media maven Donald J Trump each made a range of stated policy positions.

 

Last night, the House passed S. 2155, see that report linked below. The bill gives manufactured housing professionals some benefits and relief from Dodd-Frank.  It fulfills part of the 45th presidents pledge to undo what he said was the economic damage wrought by the CFPB and the Dodd-Frank regulatory regime.

 

That bill which has now been passed by the House and Senate would not have been signed had Ms. Clinton been the president, per her own statements.

By contrast, there is every expectation that President Donald J. Trump will sign the measure that provides relief for the industry on the MLO rule and other fronts.

Also last night, President Trump, addressed the conservative, pro-life women’s group gala, the Susan B. Anthony List. He was welcomed like a rock star.

The video posted will reflect several things that industry leaders, investors, and strategists should consider. Note that the female population is slightly larger than that of men. Note to the charts that will follow.

First, the president is repeating a theme, that the group also spotlighted – “promises made, and promises kept.”

Next, the pro-life group is pledging a serious voter mobilization effort for the fall.

Note that the NRA – the National Rifle Association – has made a similar pledge to the president for supporting candidates that he and his party will back. The president and Vice President Mike Pence are signaling that they will be very active on the campaign trail in much of the rest of 2018.

Reuters’ latest generic ballot has now tipped the midterm race slightly ahead for GOP candidates over Democratic ones. It is a tidal shift from the end of last year.

According to Vote Run Lead, exit polls reported that 53 percent of voters in the 2012 election were women.

In every presidential election year from 1980 – 2008 women have outnumbered men in voting Democratic and the same is true for men outnumbering women voting Republican,” says Wikipedia.

The U.S. Census Bureau tells the Daily Business News that, “Voting rates have also historically varied according to age, with older Americans generally voting at higher rates than younger Americans (Figure 4). In 2016, this was once again the case, as citizens 65 years and older reported higher turnout (70.9 percent) than 45- to 64-year-olds (66.6 percent), 30- to 44-year-olds (58.7 percent) and 18- to 29-year-olds (46.1 percent). However, in 2016, young voters ages 18 to 29 were the only age group to report increased turnout compared to 2012, with a reported turnout increase of 1.1 percent. All older age groups either reported small yet statistically significant turnout decreases (45- to 64-year-olds and those age 65 and older) or turnout rates not statistically different from 2012 (30- to 44-year-olds).”

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There is every indication that the president’s popularity is rising among blacks, Hispanics, and women. He already had a strong lock on Evangelicals, and white men.

MHProNews cited the New York Times polling, our own yard sign straw poll of a Florida manufactured home community, and a straw poll of industry professionals at an MHI event as part of our pre-election projections in 2016 that Mr. Trump would do well among manufactured housing residents and professionals.

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It was part of our MHProNews broader analysis. These were among the reasons for our projecting that he could pull off an upset on election night.

There is no other known group or media in manufactured housing that made similar projections. We editorially supported the Trump candidacy, as being better for business, workers, investors, and our industry.

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While the Manufactured Housing Institute (MHI) paid for two pro-Clinton speakers in the closing days before the 2016 election, the Kovach family and MHProNews supported Donald J. Trump’s candidacy as the best for the industry, small business, and hundreds of millions of Americans. One of those stories ended up on the president’s campaign website, and hundreds of conservative and pro-Trump websites.

 

Washington Insider Info

While MHProNews doesn’t claim much advantage over anyone else that is willing to dig for data and insights.  We have not yet personally met the president, but we do get several daily media and other briefs from the White House.

There are good reasons to believe that baring the unexpected, the GOP under President Trump’s leadership could pull off yet another surprise in the upcoming midterms.

The president himself is predicting it.

When you listen to the enthusiasm of this crowd from last night, does it remind you of the rallies from his campaign? No ‘entertainment’ was needed.

The theme is “Promises Made, Promises Kept.” It’s a powerful message for a campaign.

Step-by-step, President Donald J. Trump has undone in less than 18 months, much of the 8 year legacy of President Barack Hussein Obama. The Heritage Foundation claims over 60 percent of his agenda is already accomplished.  While that statistic might be debatable, what is certain is that his steady and relentless pace is getting voters to respond.  

Look for our Daily Business News latest U.S. economic report, and how that will play into the manufactured housing industry’s calculations. That surprising snapshot will be published later this morning.  We Provide, You Decide.” © ## (News, analysis, and commentary.)

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S. 2155 “House Passes Most Significant Pro-Growth Financial Regulatory Reform in Generation”

May 22nd, 2018 No comments

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WASHINGTON, D.C. – “Today, the House of Representatives voted 258-159 to pass the “Economic Growth, Regulatory Relief and Consumer Protection Act,” which represents the most significant pro-growth financial regulatory reform package since the passage of Gramm-Leach-Bliley nearly a generation ago,” said the House Financial Services Committee Chairman in a statement to MHProNews.

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Jeb Hensarling, House Financial Services Committee Chairman. credit, Wikipedia.

For far too long, far too many people in our country have struggled to make ends meet. They’ve struggled to buy a car; they’ve struggled to buy a home; they’ve struggled for their version of the American Dream. Why is this happening? Because Main Street banks and credit unions that Americans depend on have been stifled by the weight, load, volume, complexity and cost of heavy Washington bureaucratic red tape which has prevented them from serving their communities. But today, that changes,” said Chairman Hensarling.

Although we didn’t have a formal conference with the Senate, I look forward to continuing to work with colleagues on both sides of the aisle and in both chambers to build on the progress we achieved here today with an additional package of bipartisan pro-growth capital formation provisions that the House and Senate will vote on soon,” concluded Hensarling.

Approximately half of the bill – including ¾ of the regulatory relief provisions and nearly 90% of the capital formation provisions – originated in the House of Representatives,” said the Financial Services Committee release to the Daily Business News.

“Gramm-Leach-Bliley co-author Senator Phil Gramm said, “The oppressive regulatory burden of the Obama-era forced community financial institutions to spend capital on compliance officers instead of loan officers and the economy suffered. Thanks in large part to Chairman Jeb Hensarling, that is about to change. The passage of S.2155 represents the most significant pro-growth financial legislation since the Congress adopted the Gramm-Leach-Bliley Act in 1999.  The bill is a major step toward allowing the banking system to serve the needs of American business and American families instead of the political designs of the government.  If the Senate will now adopt the additional regulatory relief provisions that the House has adopted overwhelmingly, Congress will have taken a vital step toward bringing back the 3% growth rate that, prior to the Obama era, had been part of America’s birthright.”

Text from a number of House-originated provisions is included in S. 2155:

  • H.R. 2226, the “Portfolio Lending and Mortgage Access Act,” sponsored by Representative Andy Barr (R-KY).
  • H.R. 2255, the “Housing Opportunities Made Easier (HOME) Act,” sponsored by Representative David Trott (R-MI).
  • H.R. 2954, the “Home Mortgage Disclosure Adjustment Act,” sponsored by Representative Tom Emmer (R-MN).
  • H.R. 389, the “Credit Union Residential Loan Parity Act,” sponsored by Representative Ed Royce (R-CA).
  • H.R. 2948, the “S.A.F.E. Mortgage Licensing Act,” sponsored by Representative Steve Stivers (R-OH).
  • H.R. 1699, the “Preserving Access to Manufactured Housing Act of 2017,” sponsored by Representative Andy Barr (R-KY).
  • H.R. 3971, the “Community Institution Mortgage Relief Act of 2017,” sponsored by Representative Claudia Tenney (R-NY).
  • H.R. 2403, the “Keeping Capital for Local Underserved Communities Act of 2017,” sponsored by Representative Gwen Moore (D-WI).
  • H.R. 3093, the “Investor Clarity and Bank Parity Act,” sponsored by Representative Michael Capuano (D-MA).
  • H.R. 4725, the “Community Bank Reporting Relief Act,” sponsored by Representative Randy Hultgren (R-IL).
  • H.R. 1426, the “Federal Savings Association Charter Flexibility Act of 2017,” sponsored by Representative Keith Rothfus (R-PA).
  • H.R. 4771, the “Small Bank Holding Company Relief Act of 2018,” sponsored by Representative Mia Love (R-UT).
  • H.R. 5076, the “Small Bank Exam Cycle Improvement Act of 2018,” sponsored by Representative Claudia Tenney (R-NY).
  • H.R. 1457, the “MOBILE Act of 2017,” sponsored by Representative Scott Tipton (R-CO).
  • H.R. 2148, the “Clarifying Commercial Real Estate Loans Act,” sponsored by Representative Robert Pittenger (R-NC).
  • H.R. 2683, the “Protecting Veterans Credit Act of 2017,” sponsored by Representative John Delaney (D-MD).
  • H.R. 3758, the “Senior Safe Act of 2017,” sponsored by Representative Kyrsten Sinema (D-AZ).
  • H.R. 4258, the “Family Self Sufficiency Act,” sponsored by Representative Sean Duffy (R-WI).
  • H.R. 898, the “Credit Score Competition Act of 2017,” sponsored by Representative Ed Royce (R-CA).
  • H.R. 2121, the “Pension, Endowment, and Mutual Fund Access to Banking Act,” sponsored by Representative Keith Rothfus (R-PA).
  • H.R. 1624, the “Municipal Finance Support Act of 2017,” sponsored by Representative Luke Messer (R-IN).
  • H.R. 4546, the “National Securities Exchange Regulatory Parity Act,” sponsored by Representative Ed Royce (R-CA).
  • H.R. 1312, the “Small Business Capital Formation Enhancement Act,” sponsored by Representative Bruce Poliquin (R-ME).
  • H.R. 1219, the “Supporting America’s Innovators Act of 2017,” sponsored by Representative Patrick McHenry (R-NC).
  • H.R. 1257, the “Securities and Exchange Commission Overpayment Credit Act,” sponsored by Representative Gregory Meeks (D-NY).
  • H.R. 1366, the “U.S. Territories Investor Protection Act of 2017,” sponsored by Representative Nydia Velazquez (D-NY).
  • H.R. 1343, the “Encouraging Employee Ownership Act of 2017,” sponsored by Representative Randy Hultgren (R-IL).
  • H.R. 2864, the “Improving Access to Capital Act,” sponsored by Representative Kyrsten Sinema (D-AZ).
  • H.R. 4279, the “Expanding Investment Opportunities Act,” sponsored by Representative Trey Hollingsworth (R-IN).
  • H.R. 3221, the “Securing Access to Affordable Mortgages Act,” sponsored by Representative David Kustoff (R-TN).
  • H.R. 4790, the “Volcker Rule Regulatory Harmonization Act,” sponsored by Representative French Hill (R-AR).
  • H.R. 4028, the “PROTECT Act of 2017,” sponsored by Representative Patrick McHenry (R-NC).
  • H.R. 385, a bill to amend the Expedited Funds Availability Act to clarify the application of that Act to American Samoa and the Northern Mariana Islands, sponsored by Representative Aumua Amata Coleman Radewagen (R-AS).

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Senator Tim Scott, Rep. Erik Paulsen – Overlooked Part of Tax Reform, Plus New Credit Plan for ALL Housing, Including Manufactured Homes

May 18th, 2018 No comments

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In a series of video media releases to the Daily Business News, Senator Tim Scott (R-SC) touts recent accomplishments, explains how he hopes to narrow the gap for minorities, and boost all Americans’ earnings.

 

In one of these video releases, Senator Scott also spotlights an effort to get more credit – especially for housing purchases – which includes manufactured homes.

Senator Scott’s plan was amplified by Representative Erik Paulsen (R-MN).

Congressman Paulsen’s recent Op-Ed to the Washington Examiner said, “In January 2017, prior to tax reform and regulatory reforms, the Congressional Budget Office projected only 1.9 percent growth for 2018. CBO now projects 3.3 percent growth for 2018, the highest annual growth rate since 2005.”

The Minnesota Congressman explained that “While all Americans will benefit from this growth, some still need even more help. In the average state, 15 percent of the population lives in a distressed community.”

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Paulsen explained that, “As a component of the Tax Cuts and Jobs Act, Opportunity Zones are intended to incentivize long-term private investment into low-income areas, based on the Census. This approach allows state governors, and not Washington central planners, to select 25 percent of the state’s low-income census tracts as Opportunity Zones. If the state has fewer than 100 low-income census tracts, governors can designate 25 of them.”

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Juxtapose those points with the Senator Scott videos posted on this report, and MHProNews business professionals and investors will realize why the best may yet be to come from the Tax Cuts and Jobs Act.

There has already been a new production center announced since the tax plan was passed into law (see the report, linked below).

According to the CFPB’s white paper, South Carolina has the highest percentage of manufactured homes per capita.  About one in five in that state live in a pre-HUD Code mobile home, or a post HUD Code manufactured home.

Senator Scott and the Trump Administration worked closely to make the incentives for investment a reality, as Daily Business News readers may recall during the presidential signing ceremony.


Credit Plan Changes, Aimed at Boosting Minority Wages, Enhanced Opportunities for All

CNBC contributor Jennifer Streaks points out in a new column that “Black families have 10 times less wealth than whites and the gap is widening—but there’s hope.”

Streaks said, “Black families now have 10 times less wealth than whites.”

Readers may recall last year that during a speaking tour by HUD Secretary Ben Carson, that he emphasized that renters have an average net worth of $5,000, while the average home owner has an average net worth of $200,000.

Citing research that points to credit access inequalities that harm minorities, Streaks article said that “There needs to be an alternative scoring model to judge credit-worthiness,” according to Senator Scott. “That’s why he has introduced the Credit Score Competition Act, which would create an alternative model for credit-worthiness that would include consistent payments for rent, utilities and cell phones.”

Executives with the Government Sponsored Enterprises (GSEs) have said they welcome this initiative.

MHProNews readers are reminded of the research by Florida Atlantic University (FAU) professor, Ken Johnson, who told MHLivingNews how purchasing a manufactured home can be a favorable vehicle for increasing personal wealth.

Researchers Shake Up American Dream? Rent vs. Buy, Ken Johnson, Florida Atlantic University, Exclusive to ManufacturedHomeLivingNews

That’s echoed by research by Prosperity Now.  It is yet more evidence that manufactured housing and affordable home ownership are bi-partisan in nature, not a left-right issue.

MHProNews will provide an exclusive on a related efforted by the White House, which may accelerate the Scott plan through executive action.

Notice: For those not yet on the MHProNews emailed updates, click the link below to join in second the thousands of professionals who will get that upcoming report, along with all other timely headline news from the industry’s leading trade media news source.  See the sign up, after related report links, further below. ## (News, analysis and commentary.)

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President Trump – “Bigger than Watergate,” “We Need Accountability” – National, MH Industry Impacts

May 18th, 2018 No comments

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Imagine if during the 2008 campaign, if someone in the Bush Administration had planted one or more FBI informants in then Senator Barack Obama’s campaign. Then further imagine, that federal investigations were started, based in part on information paid for by opposition to then-candidate, Senator Obama.

 

Then envisage that word of that hypothetical attempt to illegally influence a presidential election had leaked out, or if the story was broken by news media. That would have been a huge scandal, and rightly so.  Part of the bedrock of the American political system are free and fair elections.

To have the power of the federal government weaponized for political opposition purposes would debatably be “worse than Watergate.”  That wouldn’t be a partisan issue, its a question of integrity and the rule of law to protect the rights of all.

There is no evidence that the above hypothetical ever occurred during the Bush years.  But there is mounting evidence that federal taxpayer funded resources were used to influence a presidential election.

That in brief is what President Donald J. Trump’s Thursday tweet means with respect to Obama-Clinton operatives.

That has sparked political pundits, media outlets, and public reaction.

Wow, word seems to be coming out that the Obama FBI ‘SPIED ON THE TRUMP CAMPAIGN WITH AN IMBEDDED INFORMANT,‘” the president tweeted in reference to a National Review report published last week, said the Hill, a news source based in the nation’s capital.

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For those who may not recall, the Watergate scandal occurred when President Richard Nixon, a Republican, was tied to the attempted coverup of a crime, in which former FBI and CIA agents broke into the offices of the Democratic Party and George McGovern (that year’s Democratic Presidential candidate).

Watergate was the location for the DNC offices at that time.  The Watergate break-in was an illegal political spying effort, designed as part of an illicit plot to help defeat McGovern.  It was no doubt a dark, ugly chapter in our nation’s history.

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The photo above at the left is an aerial view of the Watergate complex, the buildings which at the time were the office of the Democratic National Committee (DNC). That’s what gave rise to the name of the break-in and cover-up scandal, called, Watergate.

But today, we’re not talking about former federal agents.

Rather, the concern is that active, paid FBI and other federal agency staffers have illicitly been involved in derailing a political campaign – and post-election – of attempting to unseat a duly elected president.

If the leak yesterday – that the above concerns are part of what an upcoming inspector general report will allegedly reveal – that would be a bombshell.

Andrew McCarthy says, ‘There’s probably no doubt that they had at least one confidential informant in the [Trump] campaign.’ If so, this is bigger than Watergate!

There are now numerous reports that allege that Obama-era led agencies used their surveillance powers to monitor and attempt to disrupt the Trump campaign.

This is not the first time that the Obama administration has been accused of spying on the Trump campaign.

Last year, President Trump accused the former president of wiretapping Trump Tower shortly before the 2016 election.

Terrible! Just found out that Obama had my ‘wires tapped,’ in Trump Tower just before victory. Nothing found. This is McCarthyism!” the president tweeted in March 2017.  Then White House Press Secretary Sean Spicer later clarified the tweet to mean that the Trump campaign had spied upon, not a literal wiretap.

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Attorney, Author, Talk Radio Mark Levin Calls for Accountability

 

MHVille – First Look

The Daily Business News has for over a year made the case held by thousands of manufactured housing professionals, from coast-to-coast. Namely, that the current Trump administration has been far more business-friendly than former President of the United States (POTUS) Barack Obama’s Administration was.

The National Federation of Independent Business (NFIB) and others have praised President Donald Trump for his pro-growth, pro-business policies.  The NFIB has hundreds of manufactured housing industry members.

POTUS Trump has also been more business-friendly than the Bush or Clinton Administrations were. That’s according to the National Association of Manufacturers (NAM) survey, NFIB surveys, and statements from the Manufactured Housing Association for Regulatory Reform (MHARR).

The regulatory freeze that has given the industry relief from several pending regulations did not occur under Barack Obama.

Rather, President Trump is undoing many of the costly and burdensome regulations of prior administrations.  These points aren’t a matter of posturing, they are all a matter of record.

Accurate Trump Administration Predictions

Based upon the Trump Administration’s policy stances, statements made over a year ago from MHARR’s top officials predicted that President Trump would be pro-business, and that others in the industry needed to rally around his efforts.

Proof?  See the focused 2 minute 20 second video, posted above. Note that foresightful MH industry leadership.

By contrast, Democratic presidential candidate, Secretary Hillary Clinton pledged very similar policies on regulations as Barack Obama had initiated with Congress.

Secretary Clinton named Dodd-Frank as an example.  She pledged to keep those onerous regulations as they had been during the POTUS Obama years, suggesting that she may also strengthen them.

The Manufactured Housing Institute (MHI) is officially hoping that next week the House will vote to pass their version of S. 2155.  That bill includes a roll back of the CFPB’s so-called MLO rule, that effectively gagged unlicensed personnel from speaking to consumers about lenders and loan terms.

It must be noted that this Congressional effort would not be taking place with any hope of enactment under a hypothetical Hillary Clinton presidency.

Who says?

That’s the application of the logic of former MHI government relations vice president, Jason Boehlert.

President Obama opposed a similar MHI backed bill, threatening to veto it. Secretary Clinton said she agreed with Mr. Obama, pledging to do the same or ‘strengthening’ Dodd-Frank.  Now, look again at the video with MHARR posted above, and ask, what were MHI and those who rule that association thinking?

2012 Election Results and Coming Lame Duck Session

 

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The Special Counsel Robert Mueller investigation of the so-called “Trump campaign-Russian collusion” allegations has now turned one year old.

Even as third-party analysts claim that 90 percent of mainstream media reports have been anti-Trump, public opinion has nevertheless shifted away from Mueller.

In a recent survey, just over half the country now believes that Mueller’s so-called probe into alleged Russian collusion with the Trump campaign is – as the 45th president has often called it – “a witch hunt.”

It’s worse than most realize, because there was never a predicate crime being alleged.  

Democratic attorney Alan Dershowitz argued over a year ago that there is no federal crime of collusion.

Had collusion between the Russians and the Trump campaign existed, said Dershowitz – noting that there is no evidence of any collusion – it would have looked bad.  But the Harvard law professor Dershowitz said that even if the alleged collusion existed, it would not have been illegal.

Then what was the Mueller investigation all about?

Recall that President Obama said days before the election, that the Russians were unable to interfere in the American elections.  There is no evidence that a single vote was changed by Russian attempts to hack.

Recall that MHProNews advised readers last year that even a CNN producer admitted to undercover investigators a year ago that the Russia-Trump stories were “bullsh-t.”

An underreported aspect of the specious ‘Russia’ story is that governments around the world, including the U.S. government, attempt to influence each other’s elections all-too-often.

Recall that Barack Obama attempted to interfere with Israel’s elections, and with the Brexit vote in England. Arguably worse, is that POTUS Obama – following calls from the Clinton State Department – invaded Libya.  For what?  The Libyan nation – as a result of that Obama-Clinton action – has since been destabilized. As but one tragic result, America later lost diplomats in Benghazi, Libya.  That’s been one of many consequences from that outrageous Obama-Clinton military plan to attack Libya’s leadership. The previously pacified Libyan people now are suffering a civil war.

The Russian efforts to interfere in the 2016 U.S. election, per sources, is their “payback” for Secretary Clinton’s alleged interference in the Russian elections.

Ironically, every scandalous effort to weaponize federal resources are boomeranging back onto Democrats and their anti-Trump allies.

The U.S. ought to be vigilant and protect the election process, against foreign and domestic manipulation and interference.

U.S. policy ought to respect the rights of foreign nations.   Furthermore, U.S. policy ought to pro-actively protect our own nation’s borders, and then it can call upon others to act similarly.

For years, America has been living in a topsy-turvy world.  So much so, that Barack Obama candidly and accurately said not long ago that there are two ways that the nation looks at the facts.  That’s sad, but true.  Isn’t he, Secretary Clinton, and their allies part of the reason that claim is accurate?

Facts Matter – Mr. Obama’s “Alternative Universe,” Trump Admin, Investors & Politicized Manufactured Housing Data

Plausible allegations of officials – starting during the Obama era – using:

  • federal agents,
  • taxpayer dollars,
  • and illicitly applying federal legal procedures to stop or unseat a campaign – or a duly elected president – are all indeed worse than Watergate.
  • Aren’t these an apt description for an attempted coup?

DefineCoupD'EtatWikiManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Simplified Summaries of Threads

Former DNC Chair Donna Brazile said that the Hillary Clinton campaign rigged the primaries, to prevent Bernie Sanders from becoming the Democratic Party’s candidate.

“Hacks” – Explosive 2016 Campaign Claims by Former DNC Chair, Donna Brazile

It is now clear that the Clinton campaign paid millions for the so-called “Steele Dossier,” which used foreign intelligence assets – British and Russian sources – to try to paint then candidate Trump in an unfavorable light.

That bogus politically-motivated ‘fake dossier’ – along with leaks of one or more FBI memo(s) – were in turn used by then FBI director James Comey to spark the Mueller probe.

If that isn’t outrageous enough, Special Counsel Robert Mueller has a staff packed with Clinton campaign donors.

Millions of taxpayer dollars have been spent on what looks to be a political effort initially designed derail candidate Trump, and later used to spark a stir they apparently hoped would lead to a duly elected president’s impeachment.  All on totally spurious – faked! – grounds.

If this is so, it’s not just outrageous, its criminal.

 

Why This Matters to MHVille, Next Week

Next week, the House will vote on their version of S. 2155, which includes a provision that would remove the MLO rule.  The mortgage loan originator (MLO) rule that is widely seen as harmful to manufactured housing industry retailers, communities, lenders, and others.

GovTrack tells MHProNews the odds of passage for S. 2155 stands at 56 percent.

Under President Obama, such a measure would have been vetoed.

Under a hypothetical Hillary Clinton Presidency – based upon her campaign promises – a bill like S. 2155 that will change Dodd-Frank would have been vetoed.

If S.2155 bill passes – and MHProNews’ publisher has editorially supported a similar such pro-business, pro-consumer change like this for years – it will be a Trump Administration accomplishment.

It would be entirely spurious for MHI to claim any legitimate bragging points.

Why?

MHProNews reported that days before the 2016 election that MHI had not one, but two paid pro-Clinton speakers on their stage in Chicago.

Warren Buffett was pro-Barack Obama and pro-Secretary Hillary Clinton.

Buffett is the Chairman of Berkshire Hathaway.  Berkshire is the parent to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage, and has interests in a raft of other suppliers, lending, and services entities that intersect with manufactured housing.  Berkshire’s brands are widely seen as dominating MHI.

Based upon feedback from industry sources, there is a growing realization that MHI has been slow-walking or stonewalling reforms that hurt the industry, rather than championing them.

The Washington Post’s recent report on HUD, Pam Danner and manufactured housing underscored those concerns.

MHI Lender Shakes Up DTS and MLO Rule Discussions

As a result of years of MHI failures and allegedly weaponized reports, there is also a growing interest in creating a new post-production association, one that truly represents the independent retailers, communities, lenders and others.

 

Manufactured Housing is Non-Partisan

Manufactured housing – because it is affordable housing – ought to be viewed as a non-partisan issue.  It has long enjoyed the support of Democrats and Republicans alike for that reason.

But during end of the ‘Bush 43’ years, and during the eight years of the Obama presidency, anti-business policies often harmed our industry.

By contrast, President Trump – and cabinet members such as Secretary Ben Carson – have been working to undue those harms, pledging a new era of cooperation.  Would that have taken place under madam Clinton’s leadership?

 

Developing News on More Manufactured Home Lending

There is a developing story on financing that you may not hear from MHI or their echo-chamber surrogates. They will certainly not reveal it unless and until MHProNews hereby and in upcoming reports spotlights it.

When you see that upcoming report, you’ll see why.

Watch for that pending finance focused report from the MH Industry’s leading independent news source.

For almost a decade, MHProNews has brought you the most popular “Industry News, Tips and Views that Pros Can Use.” ©

With facts, evidence, and sound analysis in hand, then readers can apply the next tag line: “We Provide, You Decide.” ©

Which is all part of the reason why a top level executive said – as part of a longer communication – that “…if MHProNews is writing about it, I want to know about it.” (News, analysis and commentary.)

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PS: Our thanks to those who have taken the time to mention that they see that MHProNews reports, analysis and projections have proven to be accurate, time and again.

PSS: Watch for an exclusive report on a non-profit group that is attempting to harm manufactured housing industry businesses.

Related Reports:

Kanye Controversy, Universal Income, Venezuela, President Trump, Manufactured Housing, First Principles, and You

Manufactured Housing Supporting VP Mike Pence in Elkhart, Indiana – Highlights

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

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Ben Shapiro Nails It on Taxes, Regulations, and Affordable Housing – Under 2 Minute Video Must View for MH Industry Pros

May 16th, 2018 No comments

BenShapiroTaxesRegulationsAffordazbleHousingDailyBusinessNewsMHProNews

Ben Shapiro is a renowned conservative political pundit, syndicated columnist, lawyer, and NYT bestselling author. He is Editor-in-Chief of news and opinion site The Daily Wire and host of the popular video podcast, The Ben Shapiro Show,” says his YouTube page.

 

Fox News has called Shapiro “a leading millennial conservative.”

In the under-two minute video clip below, Shapiro joined Fox & Friends to discuss the new “head tax” in Seattle.  In it, he rapidly lays out the case that should have affordable housing advocates – including manufactured home professionals – on the edge of their seats, with note pad in hand.

Shapiro says that high demand, and over-regulations on developing are part of what’s fueling soaring housing costs.

A profile video on the fast-talking attorney is below.  Shapiro’s approximately 100 million page views a month Daily Wire is roughly 30 times more than what Webalizer says industry-leading MHProNews traffic is. He clearly must have something to say that people want to read and hear.

While the evidence-and-logic focused attorney doesn’t mention any specific kind of housing in the first video, common-sense suggests that the modern manufactured homes that HUD Secretary Ben Carson called “amazing” in recent Senate testimony are an important part of the solution to the affordable housing crisis.  You don’t have to be a brain surgeon to realize that almost everything we use comes from a production center.

The logic of factory-based home building is proven, and necessary.

Affordable housing is a non-partisan issue, as Danny Ghorbani – an engineer and the retired founding president of the Manufactured Housing Association for Regulatory Reform (MHARR) – has often said.

With this more business-friendly regulatory environment under the Trump Administration, the time is now to promote a better understanding of the factors that fuel economic growth.

Lower taxes, less and more common-sense regulations, are spurring the economy.

The Treasury took in a record amount of taxes last month, even though there’s been a big tax cut.  The formula that the Daily Business News has noted worked for Democratic President John F. Kennedy and Republican President Ronald Reagan, is also working for pragmatic President Donald J. Trump.

If the industry can cut through the D.C. noise, and get HUD and FHFA to enforce existing laws, the result will be a revival of manufactured housing (see related reports, below).  Thus private enterprise – in the form of routinely unsubsidized manufactured homes, as Secretary Carson said – can be an important part of the solution to the affordable housing crisis.

On a closing note regarding Shapiro.

BenShapiroJDDailyWireWikipediaManufacturedHousingIndustryDailyBusinessNewsMHProNews

Note that “progressive” (read, Democratic) Jeff Bezos led Amazon, and equally progressive led Starbucks are among those hollering the loudest about the new Seattle head-tax.  Doesn’t Amazon’s threat to not build there make the point that higher taxes harm an economy?

Issues of taxation and regulation, as MHProNews has said for years, can be summed up like this.  The power to tax or regulate is the power to destroy. Manufactured home industry professionals, investors and advocates need to see the reality of that logic.  It is up to professionals to point to events both past and present that prove that to be so. We must personally take those proven principles, and make that case with your circle of influence, in the marketplace, and at the ballot box. ## (News, profile, analysis, and commentary.)

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Related Reports:

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

Seattle’s Assault on Amazon, Bigger Businesses Passes Affordable Housing Tax, Plus MH Market Updates

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L. A. ‘Tony’ Kovach addressing industry professionals in an educational session.

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Governor Signs new “Mobile Home” Act

May 10th, 2018 Comments off

RepDarrelEalumManufacturedHousingIndustryDailyBusinessNewsMHProNews550x324

Two South Georgia lawmakers, Darrel Ealum of Albany and John Corbett of Valdosta, helped write legislation to clean up what Ealum says are “old ugly eyesores,” said WALB.

The bill gives landowners a voice they previously didn’t have,” writes Vontresia Cutts.

Yes, it the bill is what the George Manufactured Housing Association [GMHA] desired. Our old Abandoned home law left a lot to be desired,” said Jay Hamilton of the GMHA.

The old law required the community owner to remove the home and put it in storage at his expense to clear the spot for a new home.  It was unfair to the community owner to absorb the cost of this process. The community owner also had to pay for storage for 90 days or until claimed if before 90 days,” Hamilton told the Daily Business News.

jay-hamiltong-executive-director-georgia-manufactured-housing-association-gmha-posted-mhpronews-com1-1

Jay Hamilton, Executive Director, Georgia Manufactured Housing Association (GMHA).

The person who owned the storage facility often ended up with the home after the community owner paid all of the expenses, because of the cost of high cost of moving back to the community and re-installing. Under the old law, it prohibited someone who bought real estate with an abandoned home on it from removing home because they did not hold the title or the MSO,” Hamilton, executive director of the GMHA, said.

An MSO is a Manufacturer Statement of Origin.

Because of our [GMHA] relationship with the legislature, we were at the table from day one,” said Hamilton. “Obviously, we had to negotiate some items with the Bankers Association, the Realtors Association, and with the State Judges and the Judiciary Committee. But overall this is a vast improvement.  It was patterned after Alabama’s law.

Hamilton said that the legislator on camera was the one “whom we chose to sponsor the bill, because he owns two manufactured home communities in Albany GeorgiaSo, “we knew he could convey first-hand knowledge as to why this law was needed.” ## (News, analysis, and commentary.)

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Californians Addressing Affordable Housing with $300 Million “Robin Hood” Plan, Including Manufactured Homes, ADUs

April 26th, 2018 Comments off

LyndaHopkins5thDistrictSonomaCountyCAManufacturedHousingIndustryDailyBusinessNewsMHproNEws

In response to the more than 5,000 homes destroyed in the October firestorm, stakeholders and county supervisors are pushing for a $300 million housing bond to be placed on the November ballot,” says Sonoma West.

 

The plan would include funds to upgrade or replace manufactured homes, or could be used for Accessory Dwelling Units (ADUs), which are often prefabs or modular.

A survey indicates 71 percent of voters support the November ballot measure.

Other CA jurisdictions have passed similar measures. “There’s a tremendous need county wide for affordable housing,” Lynda Hopkins said. “After the catastrophic fires the need only intensified.Lynda Hopkins is the Fifth District Supervisor, and spoke to the Sebastopol City Council.

SonomaCOuntyCalinforniaManufacturedHousingIndustryDailyBusinessNewsMHProNews_001

Sonoma County is near the red-hot Bay area housing market.

Supervisors are expected to consider a formal vote to put the bond on the ballot sometime in July. The Press Democrat reports 5,300 homes were destroyed in the fires that hit their county, and likewise devastated other parts of the state last year.

Sonoma West says the funding would come from, an increased “tax rate of $19.53 per $100,000 of assessed value, with a term of 26 years and a assumed interest rate of 4.56 percent, according to a working draft of the bond,” thus the term Robin Hood tax, taking from ‘richer’ property owners, and giving it to others. 

Whatever position the county takes, wouldn’t a more accepting use of manufactured homes on infill and other sites offer a private sector solution to the problem?

Out of this came a desire for a cross-jurisdictional, regional approach to addressing our affordable housing crisis,” Hopkins said.

Supervisors approved efforts to place the bond on the ballet during their April 17 regular meeting. Later that day, Fifth District Supervisor Lynda Hopkins spoke to the Sebastopol City Council to encourage feedback and support.

TheSystemHasFailedPressDemocratManufacturedHousingINdustryDailyBusinessNewsMHProNews

There’s a tremendous need county wide for affordable housing,” Hopkins said. “After the catastrophic fires the need only intensified.”

Sonoma County officials said similar affordable housing bonds in Alameda, San Mateo and Santa Clara counties have successfully been approved by voters. Hopkins said the county received positive feedback from a formal poll they undertook as part of the housing bond initiative several months ago.

In the poll, 71 percent of responders gave positive feedback to a proposed housing bond of more than the current $300 million proposed bond.

Out of this came a desire for a cross-jurisdictional, regional approach to addressing our affordable housing crisis,” Hopkins said, adding – ”This is in many ways a Robin Hood tax, where those with high-assessed property values are going to be contributing hugely to this bond.”

The county’s issues are a microcosm of what is happening in the nation’s most populous state. Housing affordability is perhaps the most pronounced in California. So on the one hand, it is encouraging to see manufactured homes being considered in this mix.

At the same time, CA is several ways, one of the more NIMBY – Not In My Back Yard – states.

As a consequence of NIMBY, “In 2016, according to the 2018 housing assessment of the California Department of Housing and Community Development, the state faced a shortfall of more than a million units for households earning between 50% and 120% of the median…” income.

If 1/3 of that million unit shortfall was filled by manufactured homes over 5 years, it would be an a huge increase over the 13,898 homes HUD Code manufactured homes sold in the that state in the 6½ years since August 2011 through February 2018.

It’s a clear example of obstacles and opportunities. The same needs exist in numerous markets from Hawaii to Boston, MA, or from Alaska to Florida. According to the researchers in the related report linked below, the choking off of affordable housing is costing the nation some $2 trillion dollars a year. ## (News, analysis, and commentary.)

Related Report:

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

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Manufactured Housing – Regulatory, Other Roadblocks and Potential Solutions, Up for Growth Research, plus Urban Institute Report Revisited

April 17th, 2018 Comments off

 

“Sadly, the growing recognition of [restrictive zoning for housing]
by scholars and policy analysts across the political spectrum has so far
not resulted in much political action.”

— Libertarian law professor Ilya Somin,

per the Up for Growth National Coalition,
April 2018.

 

Manufactured homes could ease the affordable housing crisis.
So why are so few being made
?”

–      Urban Institute,
January 2018

Overview

U.S. fell 7.3 million units behind housing demand from 2000 – 2015,” according to new research from the Up for Growth National Coalition, ECONorthwest, and Holland Government Affairs in a media release to the Daily Business News.

ExecutiveSummaryUndersupply7.3MillionUitsUpForGrowthDailyBusinessnewsManufacturedHousingMHProNews

 

Their figure for the production shortfall is similar to one used by the National Association of Realtors (NAR) Lawrence Yun, who says that the nation needs some 8.3 million housing units.

 

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Yun’s NAR research comes to a similar conclusion that Up for Growth has, namely, that there must be significant levels of new construction. Several housing experts believe that factory building is the faster, greener and less costly way of addressing that need. Manufactured housing is the lowest cost permanent housing, per U.S. Census Bureau data.

 

The housing shortage is far more severe than originally believed, and much more widespread,” said Clyde Holland, Founder and CEO of Holland Partner Group and Up for Growth Executive Chairman in their release. “From California to Maine, the supply of housing is simply not matching its growing demand. Not building enough new housing pushes rents up, forces quality of life down, and is a significant drag on the economy. As this research clearly shows, these trends and the barriers to building market-rate and affordable housing are unsustainable. To achieve affordable, sustainable, and vibrant communities, we need a new approach to housing.”

Against that backdrop, there’s the recently produced exchange captured on CSPAN between Housing and Urban Development (HUD) Secretary Ben Carson, and Senator Thom Tillis (R-NC).  That video is below.  Highlights include the fact that Carson called the progress and quality of manufactured homes “amazing.”  In response to Tillis question, Carson said the regulations at HUD regarding manufactured housing have been “ridiculous.”

 

 

Tip

We recommend to first time visitors and others not as familiar with these issues read the text of this report, and then circle back later to read the related reports, linked below. Those links provide additional information, quotes and/or documents.

 

Backdrop

Some tout an American energy policy which should include ‘all of the above’ energy production options.  Similarly, some promote an American affordable housing policy that includes a robust use of all kinds of housing, including housing retention whenever possible, plus the liberal use of modern manufactured homes.

CostBurdeningHousingUnderproductionUpForGrowthDailyBusinesssNewsManufacturedHousingMHProNews

 

But several factors have limited manufactured housing in the past decade-plus.  The graphics and information that follows provide context, point to causes, and potential solutions.

 

HousingStartsHaventKeptPaceUpForGrowthManufacturedHousingIndustryDailyBusinessNewsMHProNews

From the Up for Growth report.

 

SunCommunitiesSUI-InvestorPage11ManufacturedHomeVsSingleFamilyHousingManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

From publicly traded Sun Communities (SUI) investor presentation.

SunCommunitiesSUI-InvestorPageComparetoMultiFamilyHousing10ManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

Publicly trade companies produce reports like the one these in the recent Sun Communities (SUI) provides comparison data, showing the cost of manufactured housing viz a vis single family, and multi-family housing.

 

Some of the responsibility for those limiting elements are laid at the feet of public officials.  There has been a combination of a lack of enforcement of existing laws, as well as overreach on regulations.  Those details are found herein.

 

ManufacturedHomesGAO2014ReprotCompareApartmentsSingleFamilySiteBuiltHousingManufacturedHomesMHLivingNews

The Government Accountability Office (GAO) did a report in 2014 that produced reams of data that underscored the value of modern manufactured homes. For example, even with higher interest rates, manufactured homes are routinely the lowest cost per month for housing. https://www.manufacturedhomelivingnews.com/researchers-shake-up-american-dream-rent-vs-buy-ken-johnson-florida-atlantic-university-exclusive-to-manufacturedhomelivingnews/

 

Others within the manufactured home industry have – by action and inaction, commission and omission – allowed or encouraged policies that resulted in the consolidation of large parts of the industry into fewer hands.  The following published comments by others captures some of those viewpoints.

DougRyanAmericanBankerManufacturedHousingMonopoly-postedDailyBusinessNewsManufacturedHousingIndustryProNews-575x237

ManufacturedHousingIndustryMonopoly-Oligarchy-GeorgeAllen-PostedDailyBusinessNewsManufacturedHousingIndustryMHProNews-

Allen hasn’t denied these comments, but has toned it down, perhaps in a desire to sell his business interests to MHI, a suggestion he’s raised himself.

 

The above concerns have occurred in a manner that several public officials, along with private individuals, believe is monopolistic.

–      There is significant evidence of how this has occurred,

–      what this costs American society,

–      and the role that public officials have played in what many believe has been – at least in part – an artificially manipulated process.

Publications, politicos, and advocates across the left-right divide have commented on these trends, allegations, concerns, and forces.  This publication is far from alone, as the links and quotes reveal. What’s unique here is bringing the various elements into the scope of a single report, with additional linked references.

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

The solution to the affordable housing crisis is hiding in plain sight.  It’s found in the widely under-appreciated manufactured home (MH), which is much better than the majority of the public has been led to believe.

Who says so?

This report will cite:

  • MH Industry,
  • public officials,
  • outside experts,
  • a clip from a focus group of home owners,
  • and outlines the often-surprising findings of third-party researchers, that praise manufactured homes.

Those who take a different view are also briefly examined, each in the light of known facts.

 

Harvard’s Eric Belsky

Experts such as Harvard’s Eric Belksy believed manufactured homes would dominate in sales over conventional housing, by 2010.  That didn’t happen.  Why not?

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Belsky was aware of the slide in manufactured home lending and the repossessions that were occurring. See the new home shipment graphic below.  He still made this expert projection of the industry’s coming dominance. Some inside and outside of the industry believe that the kind of issues this report raises explains why Belsky missed the 2010 projection.

This survey will introduce the insights that can help answer that question.

We Provide, You Decide.” ©

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews

Note how the Up For Growth period of insufficient growth in new housing has an inverse relationship to the dearth of new manufactured home production in roughly those same years.

 

MHARR on Federal Overreach, and the Under Use of Preemption

Responding to a question from MHProNews, Mark Weiss, J.D., President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) said, “the frost free foundation and on site completion rule matters reflect their overreach and are in violation of the manufactured housing statute.  More generally, their failure to do rule making and cost benefit analysis on multiple issues are other major problems,” are among the problems with the administration of the federally regulated HUD Code manufactured housing program.

MHARR members met with HUD Secretary Carson, who pledged to reform the program.

MHARR’s president has previously noted that it is “Time to Enforce Federal Preemption” – meaning, the preemption enjoyed by HUD Code manufactured homes under federal law.

 

Weiss has said that every day that the Duty to Serve (DTS) isn’t fully implemented by the GSEs – which is still under the supervision of the FHFA – is a “gift” to Berkshire Hathaway owned lenders.

Among Weiss’ concerns?

FHFA held closed door meeting(s) with Manufactured Housing Institute (MHI) and their member companies, and hasn’t released the minutes of that meeting(s).  Whatever occurred, the bottom line has been a failure to robustly implement DTS.

The GSEs pointed to a lack of current loan performance data from some larger firms in the industry among their reasons for not doing more to support manufactured housing under DTS.  But it should be noted that other data and research already made available to them suggests that there was sufficient evidence for the FHFA to prompt the GSE’s into doing more lending than the tiny pilots that Fannie Mae and Freddie Mac will be launching.

American Bankers Urged to Lend More on Manufactured Homes

From Hawaii to Boston, recent reports in the mainstream media spotlight the push-back and controversies tied to the use of manufactured housing. There are periodic and notable exceptions, such as the examples cited below.

Bloomberg, HousingWire, Realtor and Fox all suggest Manufactured Homes as Important Solution for Affordable Housing in America

But much of that resistance by politicos, some in media, and others are based upon false, misleading and/or outdated information.  Ignorance is part of the problem, so education is part of the cure.

Those public officials who’ve been properly exposed to the realities of modern manufactured homes – as Secretary Carson indicated – are often positive-to-enthusiastic.  One of several examples is found in the video below.

 

 

The comments in the video below were made in 2017.  They reveal the frustration and concerns shared by advocates for independent producers of manufactured housing.  They clearly state what they believe are important elements of what’s holding up the proven, largely private-sector solution, to the affordable housing crisis.

 

 

For at least two decades, third-party researchers have documented their belief in the quality of modern manufactured homes.  Some like Belsky and CFED – rebranded as Prosperity Now – have explained why manufactured housing would be an important part of the future of American home building.  The examples shown and linked are only a sampling.

 

RegulatoryBarrierstoManufacturedHousingPlacementinUrbanCommunitiesHUDPDR-postedManufacturedHomeLivingNews595x357 (1)

What the HUD PD&R screen capture – with linked download available here – reflects is a lack of understanding about how enhanced preemption could solve the affordable housing crisis using mostly private capital. The research is useful, but adding in the missing ingredient of enhanced preemption would make it priceless. 

 

University level research commissioned by HUD, part of their HUD Office of Policy Development and Research (PD&R) series, was published in 2011 under the title, Regulatory Barriers to Manufactured Housing PlacementThat research revealed that manufactured homes appreciated side-by-side with conventional housing.

So, one of the biggest reasons for “NIMBY” – Not In My Back Yard – fear of depreciation caused by manufactured homes nearby, is based upon a myth.  

But part of what makes the HUD PD&R noteworthy is the lack of commentary on federal preemption.

Since manufactured homes are proven to be dynamically similar in quality to conventional housing, and HUD’s own research demonstrates that there is no economic harm to neighboring homes, why not make a robust use of federal preemption?

 

Other Examples of Classic Ignorance – a Lack of the Facts

Many believe that crime and manufactured homes somehow go together.  But third-party research debunks that myth too.

Pride and Prejudice: The Truth About Manufactured Home Communities and Crime

On issue-after-issue – including windstorms and how manufactured housing performs during such events – the realities documented by research are different than what is generally believed.

Weather Expert’s Surprising, Bombshell Statement on Tornado Deaths and Affordable Manufactured Homes

Another study by two university professionals performed late in the Obama Administration suggests the following.  That not having a solution for affordable housing is costing the U.S. economy some $2 trillion dollars annually.  While their specific research doesn’t point to manufactured housing, it does reveal the kind of economic benefits that would flow if the Trump Administration would promote enforcement of existing laws.

Rephrasing, if the government enforces preemption and fully promoted the lending options the federal government already has established by law, more will become manufactured home owners, and more economic growth will follow.

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

So, why aren’t preemption and other federal laws already on the books properly enforced?

TruliaLowIncomeHousingImpactOnNearbyHousingValuesDailyBusinessNewsMHProNews600

The Ultimate Manufactured Home Industry Fact$, Data, and Insights – Bullets plus at-a-Glance Infographic

 

The Urban Institute largely positive research on manufactured housing points to key, and troubling, clues to that question.  In fact, the Urban Institute raised that question, as the second quote at the top of this article reflects.

 

Disturbing Answers to Urban Institute’s (UI) Penetrating Question…

The Urban Institute’s report says that manufactured homes are quality. They point to land-use (restrictive zoning) issues, as does the Lincoln Institute or others.  UI notes financing challenges, and slower appreciation, but acknowledge that manufactured homes can and do appreciate.

It’s what’s not in their January 2018 report that point to arguably emblematic examples of what’s gone wrong for those seeking to advance manufactured housing as a key solution for the affordable housing crisis.

For example, when lending is cut off or restricted, that impacts all housing value, site built or manufactured. Further, supply and demand impact housing values.  What linked and other research reveals is that given a level playing field, manufactured housing preforms.

So, when affordable home ownership is widely seen as a social good, why is the playing field not level?

With proper understanding, lending, and public policies, the evidence suggests that manufactured homes would be a good investment for buyers.  Further, manufactured homes routinely provide lower income, and first time buyers an opportunity they may not get in any other way.  Or as one citizen told anti-manufactured home officials, it isn’t a crime to be poor.

“It Isn’t A Crime Time to Be Poor” Citizen Tells Anti-Manufactured Home Lawmakers

Research by CFED – rebranded since as Prosperity Now – reflects the wealth building potential for even lower income Americans.

ManufacturedHousingTopTenTruthsImHomeInnovationsinManufacturedHomesDailyBusinessNewsMHProNews

For the rest of the top ten, click here.

 

UI’s Undisclosed Facts

MHProNews learned that one of the four writers of the Urban Institute (UI) research – Ed Golding – used to work for HUD. In fact, sources with ties to HUD said the recently-removed administrator of the HUD Code manufactured housing program – Pam Danner, J.D. – reported to Golding.

Golding knows manufactured housing “well.”  Danner has been the source of years of growing controversy in manufactured housing. Why didn’t Golding and UI disclose his relationship to Danner? Conflict of interest guidelines in university style research suggest that even the appearance of conflict of interest should be disclosed.  So why are there no disclosures on the webpage of the report published by UI?

http://www.mhmarketingsalesmanagement.com/blogs/daily-business-news/wp-content/uploads/2017/11/GeorgeGunnelClaytonHomesRVP-WVMHIFMHAMHIHUDPamDannerMustGo.png

In spite of widespread concerns about Pam Danner, JD, at HUD and her problematic handling of the manufactured housing program, industry voices note that it took months of pressure before the Manufactured Housing Institute (MHI) began to relent, why? Click here.

Golding, like Danner, didn’t promote federal preemption.  Rather, what they did was authorize heavy regulations that fell disproportionately to smaller producers and independent companies.

 

PamDannerQuestionMarkLightBulbDailyBuisnessNewsMHProNews

Danner appeared on MHI’s stage, yet members and non-members alike found her handling of the program to be problematic.

 

Now You Will Hear — the Rest of the Story

So nowhere on the Urban Institute (UI) webpage where their report was published disclosed:

–      Golding’s bio, and his ties to Danner and HUD’s manufactured home program,

–      That the Manufactured Housing Institute (MHI) and Berkshire Hathaway owned Clayton Homes and affiliated lenders were part of the UI research, but that they were promised “anonymity” in the published report.  The reality of that statement is based on sources in UI, sent via email to MHProNews. No similar engagement by UI reportedly took place with MHARR members.  Why did only the major players get such special access to input on the UI report, which was published shortly before pending comments to federal regulators was due?

–      Or that Warren Buffett is a lifetime trustee of the Urban Institute.  Buffett also sits on the board of the Gates Foundation, which he’s given billions of dollars of Berkshire Hathaway stock to, and the Gates Foundation in turn donated millions to the Urban Institute.

While some of this can be learned elsewhere on UI’s website, or can be found via public records, none of these items noted in the bullets above were disclosed on the page where their report on manufactured housing is published.

In several messages by MHProNews with them, the Urban Institute only asked for one significant correction to our published reports. That one request?  It was on a point that UI was arguably mistaken. Namely, that the Daily Business News noted that Buffett indirectly had donated to their organization, as outlined in the bullet above, or as is documented in the report linked below.  Thus the concerns raised have gone essentially unaddressed, even though UI was given the opportunity to do so.

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

As manufactured housing advocate, the Rev. Donald Tye, Jr. has noted, the above has the look of interlocking directorates, which are an item that antitrust regulators look for when investigating a possible monopoly.

The Berkshire Hathaway dominated Manufactured Housing Institute (MHI) never publicly explained how Lois Starkey, a former vice president of theirs, ended up leaving them and going almost immediately to work for Danner at HUD.  When Danner was transferred away from the manufactured housing program recently, Starkey was dismissed by HUD.  It was learned by MHProNews that MHI requires non-disclosure agreements from their current and recent staffers.

HUD’s Pam Danner Announces former MHI VP Lois Starkey Joining HUD

 

Other Disclosures and Facts “Missed” by the Urban Institute (UI)

UI’s fails to mention enhanced preemption, or they largely underplay regulatory overreach.  Yet their report co-author – Ed Golding – certainly knew about these issues.

EdwardGoldingHUDFHAUrbanInstituteUILinkedInManufacturedHousingIndustryDailyBusinessNewsMHProNews

But perhaps as significant, is the clear failures to note that details about the capital/lending point – correctly raised by UI –  but which nevertheless fails to mention how Berkshire Hathaway benefited from FHA/HUD’s 10-10 rule.  Or how Berkshire brands have – at various times – allegedly interfered with the independents in the industry’s ability to tap into capital and lending. These are examples of federal law being applied or ignored in ways that harmed the many, but arguably have benefited the few as a result.

Is there clear evidence for Buffett’s Berkshire choking off lending or capital to kill off competition?

Yes, and it’s been published.

To date, this document shown below, signed by 21st President Tim Williams, stands unchallenged.

21stMortgageCorpTimWillamsJune112009LetterBerkshireHathawayWarrenBuffettClaytonHomesManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Another like it also exists, and is linked from the report found below. Not only is the above described by some industry professionals as a “smoking gun” for a monopolistic power play, its only part of a broader pattern that’s drawn concerns from across the left-right political and economic divide.

Killing Off 100s of Independent Manufactured Home Retailers, Production Companies – Tim Williams/21st Mortgage “Smoking Gun” Document 2

For example. The Nation, a progressive publication in a report linked further above, blasted Buffett’s Berkshire, specifically naming Clayton as part of their alleged monopolistic play.

Maxine Waters Statement, Preserving Access Manufactured Housing Act 2017, Warren Buffett, Clayton Homes

Maxine Waters and other Democrats have called Buffett’s Clayton a “near monopoly.” They demanded a federal investigation by the Consumer Financial Protection Bureau (CFPB) (see above, plus related reports and resources, at the end of this report).

The Campaign for Accountability has raised their own issues, and cite their sources.

 

 

Waters and others in Congress and beyond have noted that Berkshire Hathaway dominates the Manufactured Housing Institute (MHI).  Two of the four seats on their governing executive committee have been held for years by some of Buffett’s manufactured housing team members.  At present, the chair is a former Clayton division executive, and two others work for a Berkshire brand in manufactured housing.

The Preserving Access to Manufactured Housing Act – which MHI has spearheaded for years – has drawn fire from Waters and those who support no changes to Dodd-Frank.  Preserving Access has two main ‘legs.’

One is the repeal of the so-called MLO (Mortgage License Originator) rule, that arguably helps almost everyone in the industry involved in sales to the public.

The CFPB imposed MLO rule effectively muzzled the free speech rights of manufactured home sellers who didn’t take a test.  According to those who’ve taken the test, the MLO instructions largely have little or no applicable use for manufactured housing.  By contrast, real estate agents have no similar muzzle, and no such license required.  The same point could be made about autos or RVs.  Why does manufactured housing get this unwanted, special treatment?

The other leg raised the points-and-fees that can be charged on low cost loans. This benefits several in the industry, but primarily, benefited Berkshire Hathaway owned brands.

So, MHI – by going through unsuccessful (some say, posturing) efforts to mitigate regulations – is doing the bidding of brands that benefit either way.

Rephrased, Berkshire owned companies arguably benefit if Preserving Access passes or not. Yet this has been the centerpiece of MHI’s lobbying for years.

Manufactured housing for decades was made up for thousands of independent “mom and pop” operations. When smaller businesses give up the fight after years of ever-growing regulations, they will often sell out for less than their normal value would be absent those conditions.  This has led to consolidation of the industry’s smaller companies by larger ones.

While ex-Clayton man Ken Corbin offers a different interpretation of the data, he nevertheless points to some 10,000 independent business have failed in manufactured housing since its peak in 1998.  That 10,000 drop of retailers results in others failing or selling out for less too.

Ken Corbin “the 10,000 Drop,” points to Industry Woe, Causes of Manufactured Housing’s 10 & 20 Year Collapse?

Even Bank of America shut down their profitable manufactured home lending program.  They cited a combination of relatively low total volume, and relatively high regulatory risk.  Heavy regulation, and some would say artificially low new manufactured home sales volume. The U.S. Bank example should speak volumes to seriously researchers.

Barney_Frank wikipediaPostedDailyBgusinesNewsMHProNews

Barney Frank, official photo, credit Wikipedia.

It’s worth noting too that Barney Frank, who’s name is part of the Dodd-Frank bill, said in a letter linked here that some of the regulations imposed on manufactured housing were never indented to apply to the industry.

That letter from Frank to a constituent was provided by that MHProNews reader.  It was published here at that time, and later read into the Congressional record.  In spite of such evidence of legislative intent, the heavy foot-on-the-brake pedal from regulators continued.

It is worth noting that MHI has previously called Frank a ‘champion’ for the industry, and that MHI PAC money has reportedly flowed to him.

As MHI’s own VP said – in the linked report below – that there was essentially no chance of passing Preserving Access. Yet, the association kept pursuing for 4 years a course of action that was known in advance to essentially be doomed to fail.  Why waste the time and money?  Insiders say it in one or two words. Posturing.  Shadow boxing.

2012 Election Results and Coming Lame Duck Session

An MHI insider told MHProNews that ‘the big companies have figured out how to get the little companies to pay for what they want to do.’

Smaller firms, some of whom say off-the-record to the Daily Business News that they feel pressured to be MHI members if they want benefits such as access to 21st lending or other business – and are wittingly or not, feeding the hand that bites them.

So heavy regulations aren’t being mitigated by MHI, because the normal lobbying advocates seem to have an unstated agenda, which allows those regulations to act against the interests of smaller companies.  

In fact, the reason that MHARR exists in large measure is precisely because MHI has for years cozied up to regulators.  Those regulators in turn have imposed – or not mitigated – heavy regulations.

Economists, advocates, and some professional associations have noted, the larger the operation, the more easily it bears the costs of heavy regulation.

To rephrase, smaller companies are at a disadvantage with respect to heavy regulations. Thus, Berkshire Hatchway brands in manufactured housing would arguably benefit whether or not their Preserving Access bill passed.  The same is true of HUD or other regulations. 

What does MHI have to say about such things?

 

Heavy Regulations, Plus Choking Off Capital, Limiting Lending, and Closures or Reduced Price Sales of Businesses Results

Because of that pattern of choking off capital/lending, and heavy regulations, Berkshire owned Clayton has grown from 25 percent of the industry’s production to 50 percent in just 7 years. See Kevin Clayton’s own statements in the video further below.  They confirm Buffett’s strong distaste for competion, “foreign or domestic” – and confirm Buffett’s monopolistic concept.

That Buffett plan is dubbed as broadening “the Moat.”  Does it work?  The MHI produced data, shown below, suggests it does.

MHI-21stMortgageKevinClaytonClaytonHomesManufacturedHoomeCorporationsPlantsDailyBusinessNewsMHProNews_001

Hundreds of independent retailers closed or sold out for less due to the conditions described in this report. That in turn caused several producers of HUD Code manufactured homes to sell out, or close entirely. http://www.mhpronews.com/blogs/daily-business-news/was-the-urban-institute-misled-duped-or-part-of-a-manufactured-housing-industry-scam/

These aren’t conspiracy theories, as the Nation, MHARR, the Atlantic magazine, and several other sources from inside-and-outside of manufactured housing have made clear.

AmericasFastestDyingBusinessMobileHomesManufacturedHomesAtlanticIBISWorldDailyBusinessNewsResearchDataReportsMHProNews

IBISWorldAtlanticManufacturedHousingIndustryDailyBusinessNewsResearchReportsMHProNews

Heavy regulatory burdens, combined with choking off capital and other items noted in this report, would result in a loss of independent manufactured home retailers. That in turn would “kill off” or force to sell for less, independent producers of HUD Code manufactured homes that supplied those independents. IBIS World and the Atlantic were proven to be correct. Learn more, linked here.

 

Rather, they are examples of the truth hiding-in-plain-sight.

A close reading of Buffett’s modus operandi and business philosophy reveal quotes pointing to exactly what’s occured in manufactured housing.

The sharks in the waters of Buffett’s moat – see quote below – arguably include, but are not limited to, heavy regulations, cutting off or limiting finance, and capital options. These and other items may look at first blush like marketplace happenstance.  But upon closer examination, they were very much within Buffett’s brands and the association they dominate – MHI’s – ability to influence.  They were a combination of government regulations – and business strategies that utilized regulators – apparently working against smaller companies.  The results are jobs lost, and affordable housing opportunities for millions are lost via this process too.

WarrenBuffettTheMoatQuoteMemeManufacturedHousingIndustryDailyBusinessNEwsMHProNEws

 

Kevin Clayton cites “the moat” time and again, during an in-depth video interview, found further below.  These concepts of Buffett’s are stated in his own words.  He also says how they even use education and non-profits (see related reports, linked below) or other resources too.  Indeed, if MHI and UI (both nonprofits) are examples, each have both provided benefits to Clayton and other Berkshire brands operating in manufactured housing.

 

Preemption, Preemption…

University level researchers rarely mention preemption. Why is it so under promoted by MHI?  For example, why didn’t MHI have UI include it in their manufactured housing report? Some say MHI reports are ‘weaponized‘ to keep up the appearance of activity, while in practice doing little.  Note what former MHI Chair Nathan Smith said in the video posted in the resources, further below.  

As has been noted above, MHARR and independents want to see preemption promoted.

But federal preemption been throttled by prior administrations on both sides of the political aisle.

There may be a change coming under the Trump Administration, if they in fact “enforce the law,” which is a broad theme of theirs. HUD Secretary Carson has promised reforms.  He speaks in general terms about public private partnerships.

But Dr. Carson has not yet publicly commented on preemption.  If change is coming, it has not yet occurred.

Secretary Carson is scheduled to speak at MHI’s upcoming annual conference in Vegas.

Meanwhile, millions who could own for a home for less than rent are harmed by the issues noted herein. So too are the independent businesses that could serve them.

MHI produces ‘research,’ which is often a mish-mash of accurate and inaccurate information.  What are savvy shoppers who spot inconsistencies, or hear so much problematic reporting, to believe?  Why doesn’t MHI correct and address root issues, as needed?

By contrast, the RV industry is outselling manufactured housing by some 5 to 1.  Even towable RVs are higher cost per square foot, are a luxury item, and have avoided the kinds of onerous regulations that manufactured housing has. The RV example is just one of many ways of noting that an industry that shipped some 372,000 new homes in 1998, has slid, while RVs have risen.

MHI is the only national association that claims to deal with post-production issues.

RVAnnuaShipments2011to2016RVIALogoDataCompareManufacturedHousingIndustryDataDailyBusNewsMHProNews

 

Enforcing the Law

Arguably federal budgets would be reduced over time by a steady enforcement of HUD’s federal preemption under the Manufactured Housing Improvement Act of 2000. Why?  Because the need for subsidized housing would diminish over time.  As the legislation that created and supported manufactured homes (MH) notes, the industry is largely providing unsubsidized – and truly affordable – housing.

RevDonaldTyeJrBusinessmanManufacturedHousingAdvocateDailyBusinessNewsMHProNews

RevDonaldTyeJrManufacturedHousingAdvocateQuickestWayWealthIndustryVoicesMHProNews500

 

Beyond Capital Control, Supporting Candidates Who Supported Policies Benefiting Buffett’s Business Units

Buffett backed Secretary Hillary Clinton for president, and President Barack Obama before her.  That would seem to run counter to what MHI and then Chairman, Tim Williams/21st Mortgage Corp said he wanted.

VicePresidentMikePenceWifeKarenHandOverHeartPledgeColts49ersGameWashingtonTimesDailyBusinessNewsMHProNews

Notice. One can agree or disagree with 21st Mortgage CEO and prior MHI Chairman Tim Williams’ presentation, from which the slide above was taken with permission.  But either way, the question remains.  How is it possible that Williams was intellectually at odds with Berkshire Hathaway Chairman, Warren Buffett. Or was it all, as some think, a head fake? ‘Shadow boxing?’  Buffett has noted that most don’t read as he does, and most don’t pay attention to history, as he does.

 

Other Avenues to Capital, Reduced or Delayed

On other avenues to access capital and lending, FHA, and the Government Sponsored Enterprises (GSEs) had what seemed like an unusual favoritism that tilted toward the practical benefit of Berkshire Hathaway.

The Duty to Serve (DTS) mandated by the 2008 Housing and Economic Recovery Act (HERA 2008), was designed in part to provide financing for manufactured housing.  But Berkshire Hathaway’s 21st Mortgage Corp President, Tim Williams, slow walked DTS (see linked report).

MHI memos to members touted their support for DTS.  But Fannie Mae’s Paul Barretto, when asked by MHProNews, admitted that neither 21st or Vanderbilt Mortgage and Finance – both owned by Berkshire Hathaway – provided them with the data they requested.

Another MHI lender shed more light on this topic, in the report linked below.

MHI Lender Shakes Up DTS and MLO Rule Discussions

On FHA Title I lending, a so-called “10-10” capital rule was established.  At that time, it meant that only 21st and Vanderbilt – again, both owned by Berkshire Hathaway – were the sole manufactured home lenders that could qualify to make those loans.  Once more, government set standards were set that benefited Buffett’s Berkshire Hathaway.

In fairness, MHI has made publicized efforts on many of these matters.

But they’ve come up short every time, and have for several years.

Thus some inside and outside of MHI have speculated, how sincere was the MHI effort?  For example, why did other industries escape similar regulations from the CFPB, when manufactured housing couldn’t?

KennyLipschutzQuotePoorJobOfLobbyinginMHIndustry-postedMHProNews48thMHINCClist

An MHI member company.

Manufactured housing state associations were largely forced to play along, per reports from state executive directors to MHProNews.  See the report, linked below. Since that report was published, even more state association executives have privately confirmed the same allegation.

Most states are as-or-more dominated financially and in the numbers of members/board positions as MHI is by Berkshire Hathaway,  and their allied firms.  These state execs, if they like their jobs, can’t publicly buck MHI or Buffett’s brands.

But two states, who were not as tied to Berkshire Hathaway, broke with MHI last year. They specifically cited MHI’s failure to do what they claim to be working toward.

State Associations, Companies Quit Membership in Manufactured Housing Institute, (MHI), One Explains in Writing, ‘Why?’

ELS’ Sam Zell has not per se pointed his finger at Berkshire or MHI, which is company is a member of, and has had a board seat too.

But the description Zell’s made of the industry’s failures in finance leaves few other realistic options to consider as to what he meant by his published comments.

ELS’ Sam Zell – Compliance Costs Destroys Smaller Businesses = Consolidation

 

Media, MHI and Berkshire Hathaway

MHI member Frank Rolfe blasted MHI last year for their failure to engage the media as needed to defend and promote the industry.

SuzanneFelberFrankRolfeRichardADickJennisonAmericanHousingAdvocatesManufacturedHousingIndustryDailyBuisnessNewsMHProNews600

MHI uses surrogates, like Suzanne Felber, to promote them and/or attack those who question their policies and positions. Several – if not all of these apparent surrogates – receive money directly from MHI, or from a Berkshire Hathaway brand, and/or get other benefits – or some combination of the above. These concerns and allegations are found inside and outside of the MHI membership.

Sources say that 21st Mortgage and others involved with Berkshire Hathaway “spoke with” Rolfe, who after several critiques of MHI and their leadership were published here in MHProNews, went silent late in 2017.

21st is an apparent sponsor for Rolfe.

But prior to going quiet about MHI, Rolfe had plenty to say.

FrankRolfeMHIHypocrisyQuote-MHProNews

While MHI award-winner Marty Lavin’s comments were made about a different topic. That said, don’t his principles apply to the pattern of activity noted herein?

FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

Lavin is an MHI award winner, and a success story in communities, retail and finance.

What Lavin has been outspoken about were items related to issues like financing and the public image of the industry.

Marty Lavin Lashes the Manufactured Housing Institute’s (MHI) Latest Initiative

Lavin has lashed MHI directly on their media engagement, or lack thereof. Failure to address the image/media issue, per numbers of industry members, holds the industry back in its public acceptance.  For that matter, failure of federal officials to clear up the record as it relates to their work with manufactured housing also causes the industry harm.

“Kevin…the Problem of Your Industry…”

Yet, Berkshire Hathaway owns a number of their own media outlets.  MHI has its own media relations people. They routinely won’t engage to correct the record, as needed. What gives?

Kevin Clayton in the softball video interview in the related reports further below said they were prepared 7 years ago to work on the image issue.  It was only late last year, as the heat around MHI has risen, that a tepid, toe-in-the-water effort was finally launched. It’s been an embarrassment in terms of public impact.

Why haven’t they done more, when the stories about manufactured housing are so compelling?

The working hypothesis by many is that by allowing the foot-to-stay-on-the-brake pedal via:

–      heavy regulation, which disproportionally impacts smaller firms than larger ones,

–      failure to enforce preemption,

–      failure to address the image issue and engage with the media, while posturing such via ‘advertorials’ that have proven to have no noticeable market impact,

–      capital control,

–      and limiting lending,

all of these have resulted in pressures on independents.  The net result, in the time since the video interview with Clayton produced, (shown further below),  half of manufactured housing production, and in some states, up to 6o or 70 percent of retail sales from a sales center or community, flows through Clayton Homes and/or a Berkshire Hathaway connected brand.

In a one trillion-dollar annual housing industry, manufactured housing sank instead of grew for several years.  That’s the opposite of what Eric Belsky and others believed would happen.  Don’t the facts and concerns noted help explain why?

LATonyKovach-QuestioningNYSAAteam-NewYorkHousingAssociation-MHProNews-com-PhotoCreditMarkSimon-250x167

L. A. “Tony” Kovach, photo by Mark Simon, shows Kovach engaging with SAAs in NY.  State officials were being accused of having a rogue field regulator. Kovach is the publisher of the industry’s two largest and most popular trade media, MHLivingNews.com and MHProNews.com.

Belsky wrote his projection for manufactured housing before Warren Buffett bought Clayton.

The year Buffett bought Clayton, he then bought and combined it with Oakwood Homes.  That created in about a year the industry’s largest producer.  Their size and market domination — using their moat principles – have steadily grown since then.

Sometimes outrageous cases of local officials overreaching on manufactured housing take place.  For example, New York State had a regulator that reportedly said he would put manufactured housing “out of business” in his state.

What did HUD’s Danner do?

What did MHI do?  It was not until months after Dr. Carson became HUD Secretary, that Danner was finally removed from the HUD program.

 

Conventional Housing, and Up for Growth

Conventional ‘on site’ or stick-builders are not able to keep up with the growing demand for housing. The new report by the Up for Growth National Coalition states it would take many years to catch up.  See their chart below.

What the facts suggest is that that factory-based home building alone is able to more rapidly train workers, and ramp up housing production. Site builders can’t compete with manufactured housing on affordability.  Nor can they readily compete in speed of construction.

UptheGrowthHousingSHortageAdditionalHousingProductionNeededPerYearDailyBusinessNewsMHProNews

In theory, a factory can ramp up production more rapidly than conventional builders can. The costs will also be lower, and the homes will be ‘greener,’ with less waste too.

At some point, sources suggest that Clayton will decide they have absorbed as much of the retail and production in the industry as they can, without stirring up even more legal challenges to their alleged plan to monopolistically dominate manufactured housing.  While there is word that DOJ is investigating, there is no announced case to date involving Berkshire, MHI and ongoing allegations of monopolistic practices.

ManufacturedHousingIndustry50000CommunitiesCavcoManufacturedHousingInstituteMHIDailyBusinessNewsManufacturedHousingIndustryFactCheckMHProNews

 

CapeCodStyleHomeManufacturedHousingIndustryDailyBusinessNewsMHProNews

There are a wide variety of styles available in manufactured homes today, including multilevel models, or those built over a partial or full basement.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Every home in the collage above is a HUD Code manufactured home.

 

Buffett and Politics

Buffett has said he won’t attack President Trump.  The Trump Administration, if it follows through on stated principles, may offer some hope for regulatory relief, as MHARR and others have argued.

But while Buffett himself has largely been silent since the election, his surrogates have been attacking the president.

Buffett Blasts Trump, via Classic Twist

While

  • legal challenges,
  • federal investigations,
  • regulatory reviews,
  • and other efforts slowly work their way through the system,
  • thousands of manufactured home operations have been forced out of business or sold out for less than their value would have been under normal conditions.
  • Is it a coincidence that this fits Buffett’s self proclaimed love for a bargain?
  • Or how it fits his oft-repeated principle of expanding “the moat?”

Industry observers and advocates note that much of this would not be possible without various federal agencies overtly putting the thumb on the scales in ways that harms smaller, independent business.

Acts of omission and/or commission have caused consolidation that may seem at first blush to be ‘natural’ forces at work in the market. But upon a closer look, they appears to be anything but natural, once the details are studied.  And that’s an advantage to those involved, because it requires study of an industry that has sat unjustly in the shadows for far too long.

This isn’t to necessarily imply that there are a number of back room deals, although they are possible.

But the reality exists that onerous regulations have harmed the manufactured home industry, and a conglomerate has benefited from that time and again.  Intelligent readers can do their own math.

RegulationsCostShareHomePrice-creditNHAB-postedDailyBusinessNews-ManufacturedHousingIndustry=MHProNews-com-

Source, NAHB study.

regulatory-compliance-costs-for-manufacturers-source-national-assoc-manufacturers-posted-masthead-mhpronews0-com-_001-575x298

Source, NAM.

 

Related Nuts and Bolts

Berkshire’s Tim Williams’ can’t take back his own point that responding to negative media could benefit the industry.  It is normally what associations like MHI do.  But for whatever reasons, MHI has in fact has either largely avoided, or has done with fanfare and little impact.  The logic would be to respond to false claims as they arise, to correct the record, and in time, establish the reality.  Williams admitted to MHProNews that doing so would be a reasonable course of action.

TimWilliamsMediaRelationsManufacturedHousingIndustryDailyBuisnessNewsMHProNews-500x277

MHProNews was engaged for years at MHI, until they ‘discovered’ that we were news, and said in writing that they had no such membership category.  Our publisher spent years working within their system. He was routinely praised for pro-industry work.

TimWilliamsMHProNewsMHLivingNewsGoodCommunicationsResourcesILogonLatestNewsBigAssetExplainWhyIndustryVoices-768x339

MHProNews’ publisher arranged for public discussions at MHI events of how problematic issues could be successfully addressed.  Those efforts were praised. But they were not followed up on.

AnnParmanVPManufacturedHousingInstituteMHILogoLATonyKovachMobileManufacturedHomeLivingNewsMHProNews800

Williams, who for years was MHI’s chairman, can’t deny his prior praise for the independence, and value of this and our sister publication, MHLivingNews.

TimWilliamsWeAllMakeMistakesTonyCorrectedErrorsDailyBusinessNewsMHProNewsSo against that backdrop, why didn’t MHI’s SVP Rick Robinson answer questions about their policies and postures regarding HUD?  Or other problematic decisions made by the Arlington, VA based association?  Robinson ducked questions in front of dozens of industry professionals, gathered at a 5 state association meeting in Deadwood, SD in 2017.

RickRobinsonManufacturedHousingInstituteMHIDailyBuisnessNewsMHProNews

MHI’s president – knowing MHProNews had called for pointed questions at an event that was not theirs to control – cancelled a public presentation in January 2018, after the following report was published.

The Top Twelve Questions for Manufactured Housing Institute (MHI) CEO, Richard “Dick” Jennison

MHI and Berkshire Hathaway have declined numerous opportunities to debate or respond to these issues in public.  Instead, they’ve attempted other means of distracting or detracting from those who raise these concerns.  MHARR has made similar observations.

So while everyone is innocent until proven guilty in a court of law in America, the concerns noted above have gone unrefuted by MHI, or Berkshire Hathaway.

What will happen with Secretary Carson and the HUD Code manufactured home program?

 

Summary

The nation needs millions of units of affordable housing.

The Census Bureau says that manufactured housing is about half the cost of conventional construction.

HUD regulations requires that manufactured homes perform like conventional housing, and it does so at dramatically reduced costs. Manufactured housing enjoys – on paper – “enhanced preemption” established by the Manufactured Housing Improvement Act of 2000. So, the solution hiding in plain sight is manufactured housing.

Much of the affordable housing crisis could be solved by private capital, so long as enhanced preemption was routinely enforced.

Enhanced preemption and a robust use of Duty to Serve (DTS), FHA lending, and other government backed loans would level that playing field for independents in manufactured housing, and would make manufactured home purchases even more affordable for consumers.  Over time, that could correct the association challenges that currently exist, because of alleged Berkshire Hathaway dominance.

Conventional building can’t keep up with the needs, and would take longer to ramp up than factory builders would.

Be it the tragic need for housing in Puerto Rico post-Maria, or the growing need for affordable homes in Hawaii, or for the rest of the nation in between, manufactured homes are a proven path for millions.

Hawaii’s First “Trailer Park” on Oahu – Civil Beat’s Report Draws Heat

And once understood, modern manufactured housing is appealing enough for even millionaires and billionaires who gladly own them.

If they are good enough for the rich and famous, why not society at large?

Movie Mogul Rupert Wyatt and Screenwriter Erica Beeney’s Magnificent Manufactured Home

Why Are Billionaires Attracted to Manufactured Homes?

To borrow a phrase from Rand Paul about the two major parties and apply it to the manufactured housing industry, there is evidence of an “unholy alliance” – tacit or active – between government and deep pockets that have kept this solution for affordable housing from being fully and properly deployed.  Whatever the unseen realities may be, the known results are the same.

This, say researchers, costs the nation perhaps 2 trillion dollars a year in lost productivity that would otherwise exist. Millions could be building equity in affordable homes, instead of throwing their hard-earned money away on rent. After over 18 months of published reports, giving MHI and Berkshire Hathaway numerous opportunities to respond, they’ve ducked the questions – and allegedly pressured advertisers – instead.

Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth.” – Arthur Conan Doyle, author of the Sherlock Holmes detective tales, per BrainyQuote.com.  ## (News, analysis, and commentary.)

(Third party images are provided under fair use guidelines.)

Related Reports and Videos:

Videos begin with MHI President Richard “Dick” Jennison surprisingly arguing for slow growth. Low volume puts pressure on – and reduces the values of -smaller companies.

Next, is Nathan Smith – then MHI chairman – laughing about keeping the good news about the industry a secret, and admitting that MHI had made mistakes and needs to be more pro-active in the future. The problems noted have resulted in consolidation in production, land-lease communities – like the sector that Smith is working in – and retail. Nice admission, but did MHI performance in fact improve? Over four years later, where is a single clear cut MHI win on a big issue?

One may not realize it from the bulk of media reports, which routinely go unanswered by MHI’s media relations people, as Frank Rolfe noted. Yet, manufactured home owners – per third party research – are happy with their homes and lifestyle. The affordable housing focus group video includes comments from actual manufactured home owners. This is part of a planned multi-segment series.  Part one, is linked here.

Kevin Clayton in this softball interview below makes numerous surprising admissions about Warren Buffett, and how their grow “the moat” concepts operates. As Clayton says, the moat is designed to ever expand.  Buffett’s said he expects them to successfully expand and expand. That hurts competition.  Reports linked on this page further below are used to illustrate some of Kevin’s comments. Otherwise, the words spoken are unaltered.

Warren Buffett quotes followed by Buffett in his own words are the focus of the video below.  They show Buffett explaining some of the same concepts – such as “the moat,” and use of capital, which Kevin Clayton spoke about in his video, above.

Award winning independent retailer, Alan Amy, explaining why billionaires are buying up manufactured housing.

A montage of home owners and professionals, including a retired real estate agent, millennial, and a vet, all talking about their manufactured homes.

A walk down memory lane that takes viewers through trailer house, mobile home, and manufactured housing history in just minutes.

Industry professionals, on stage, questioning the effectiveness of MHI and their legislative efforts.

The reports linked below are just some of the dozens of reports published by MHProNews.  MHARR has done their own research.  It should be noted that for years, MHProNews published both MHARR and MHI news.  MHI suspended providing their news directly to MHI a few years ago, well prior to the more recent ‘heavy fact checks’ of their work.

Equal Justice, Citizen Power, and Manufactured Housing

“The Solution to the Affordable Housing Crisis is Hiding in Plain Sight”

 

Kevin Clayton Interview-Warren Buffett’s Berkshire Hathaway, Clayton Homes CEO

Warren Buffett, “the Moat,” Manufactured Housing, Berkshire Hathaway, Clayton Homes, 21st Mortgage, Vanderbilt, Wells Fargo, NAI…

Tunica, Nashville Trade Shows and Manufactured Housing Glory Days

MH Lending, FEMA and False Profits (and False Prophets)

MHARR vs. MHI on DOE Energy Rule, Pushback Pay$ Off?

NAHB Report – High Cost of Regulations Impact Housing – and Manufactured Housing

 

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

An Examination of Manufactured Housing as a Community- and Asset-Building Strategy, Harvard JCHS, NeighborWorks, Ford Foundation

Study Recommending New Manufactured Housing Association for Independent Retailers, Communities, Lenders, Others Released

While Manufactured Housing Overall Rises, Some Slip Sliding Away

$58,000 PreFabs, Videos, Updates of More Hi-Tech Backers

“Trailer House Trauma,” Fresh Look at Manufactured Housing’s Opportunities

 

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Hawaii’s First “Trailer Park” on Oahu – Civil Beat’s Report Draws Heat

April 17th, 2018 Comments off

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Hawaii’s Governor David Ige issued a proclamation in 2017 to deal with that state’s growing problem with homelessness.

 

Affordable housing is big issue in Hawaii, as it is in many parts of the mainland United States.

Oahu Civil Beat’s Natanya Friedheim wrote a report in March about the latest effort under Gov. Ige’s proclamation to ease their homeless crisis.

That story by Friedheim drew sharp criticism from a civil rights advocate in her state.MarshaRoseJoynerDrMartinLutherKingJrCoalitionHonoluluAdvertiserDailyBusinessNewsMHProNews

The reason?

Nope, they are not trailer parks,” is the subheading from Marsha Rose Joyner, of Honolulu. “I find that the headline “Oahu’s First Trailer Park Just The Latest In New Wave Of Public Housing” is salacious and terribly misleading,” said Joyner, who is identified by Civil Rights Movement Vet as the “past president of the Hawaii Martin Luther King Jr. Coalition.”

Joyner makes points editors and journalists in Hawaii – and beyond – should take to heart.

Addressing Friedheim’s choice of terminology, Joyner said, “The article continues “It is in essence Oahu’s first trailer park.” That simply is not true,” in a letter to Civil Beat’s editor.

The residents of the Waianae Coast have enough problems without Civil Beat demeaning their new homes, alluding to the stigma of trailer trash and stripping them of their dignity before they move in,” Joyner chides Friedheim.

Joyner isn’t shy about her views.  Writing about America’s involvement in the Middle Eastern wars, she wrote in 2003, “A time comes when silence is betrayal.”  Nor was she silent in a more recent claim of discrimination involving a ten-year veteran police officer.

So, it is interesting to note Joyner’s unwillingness to be “silent” in the case of Friedheim’s incorrect and prejudicial terminology.

Often people use the terms trailer and mobile home interchangeably. There is a huge difference,” Joyner correctly stated.

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

By an act of Congress in 1974, the U.S. Department of Housing and Urban Development was designated as the government agency to oversee the Federal Manufactured Housing, “The Office of Regulatory Affairs and Manufactured Housing,” Joyner wrote.

The small living units provide homeless families more stability than they might find in shelters or on the streets, but it is unclear how long people will live in them,” Friedheim said of the new housing option.

CivilBeatKahuikiVillageNimitzHighwayHawaiiDailyBusinessNewsMHProNews

The photo and text above are part of Friedheim’s article, that Joyner critiqued. These are not mobile homes, or manufactured homes.  They are Japanese prefabs. Per her report in Civil Beat, the units apparently don’t meet many standards that Americans would find common in all housing, including manufactured homes.

Some of the prefab housing that Friedham described would be $120,000 for 1,000 square feet. That’s more than double what a typical single section home installed on the mainland would be.  In late 2017, the national average for a new single section home was about $50,000, and would be about that 1000 sq. feet, or perhaps larger, per U.S. Census Bureau data.  The national average for a typical multi-sectional would be under $100,000, in late 2017.

SukupManufacturingCoManufacturedHousingIndustryDailyBusinessNewsMHProNews

The photo and text above are also part of Friedheim’s article, which fails to make clear that these steel bin units are emergency shelters designed to sleep as many as 10 people.  But these Sukup units aren’t permanent housing in the sense that a manufactured home would be, which by federal law, must include cooking, and bathing facilities.

  

The Controversy Highlight the Issues

Hawaii has a population of about 1.42 million people. Gov. Ige’s efforts to fight homelessness claims there’s some 7,200 homeless in the state.

That’s down by several hundred, per the governor’s office, due to their efforts to ease restrictions on alternative housing, like the examples shown from Civil Beat, above.

On Feb 7, 2018, “the average rent for a studio apartment in Hawaii is a whopping $1,821. For one-bedroom apartments, it’s $1,903. The price jumps to $2,453 for two-bedroom apartments and $2,977 for three-bedroom apartments,” stated Smart Asset.

As of 2017 the median price for a single family home in Hawaii was $730K. Condos were $390K. Average rent in Hawaii (Oahu) for a studio will vary based on location but expect to pay around $1,670 with Waikiki studios going from $1,400 to about $1,700,” says Aim for Awesome’s housing report about the island.

Even allowing for shipping costs, manufactured homes would be a fraction of such figures.

FabMac – a manufactured home operation in Hawaii – said in post-dated 2015, that since 2006, some 20 manufactured homes had been sold and installed there. But a source in manufactured housing told MHProNews that tough restrictions were part of what kept them from doing more business on the islands.

The video posted below uses several incorrect terms, and the cost data can’t be relied upon, as much of it was not accurate, even at the time it was filmed. That said, the video reflects insights from Hawaiians who were interested in seeing more manufactured housing on the islands. Short interviews by “KentJ1” are laced together.  They paint a picture of why manufactured homes – which the video incorrectly calls “mobile homes” –  aren’t already being more utilized there.

It’s hard enough to find the truth and state it clearly, isn’t it? Even the truth is getting harder to identify,” Joynor wrote in 2003. As was noted above, her topic was different than housing. But the principles behind her words about the difficulty in finding the truth echo the thoughts of manufactured housing activist, the Rev. Donald Tye, Jr.

Tye has promoted the use of manufactured housing’s enhanced preemption, in order to provide blacks and others an opportunity to build equity that affordable home ownership provides.

RevDonaldTyeJrBusinessmanManufacturedHousingAdvocateDailyBusinessNewsMHProNews

Tye explained that public housing – an entitlement – often yields addiction. Ownership vs. renting or living in “projects” leads to integrity, a view he likens to those of Dr. Martin Luther King, Jr.

Hawaii, along with other states that struggle with affordability issues, would benefit significantly by an application of the enhanced preemption provided under the Manufactured Housing Improvement Act of 2000 (MHIA 2000 – see related reports, linked below).

But ignorance about the MHIA 2000, plus the challenges of NIMBY, zoning, and placement restrictions are only part of the problem.

A historic lack of follow through by HUD in enforcing preemption has arguably harmed the citizens of Hawaii, and other states.

EconomicRacismIlGenAssemblyRevDonTyeJr-JDHarperArkManufacturedHousingAssoc-IndustryVoicesMHProNews

http://www.MHProNews.com/blogs/industryvoices/harper-thank-you-rev-donald-tye-fighting-for-enhanced-preemption-of-manufactured-homes/

That has a ripple effect in an economy. A source with deep ties to HUD told MHProNews in 2017 that an attorney there tasked with enforcing preemption made it a habit of avoiding invoking that federal power.

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Every home in the photo collage above is a HUD Code manufactured home.

Will the Trump Administration and HUD Secretary Ben Carson change that pattern?

Carson’s recent comments praising the “amazing” progress in manufactured housing, and branding many of the regulations at HUD as “ridiculous” may provide a clue that change is coming.  They’ve frozen regulations at HUD.  A top-down review was ordered.  Will that review bring enforcement of federal preemption?  Or an end to “interpretative bulletins” (IB) that don’t meet the standards set by the MHIA 2000? Time will tell.

As Joyner said, there are times when one must not be silent.  ## (News, analysis, commentary.)

(Third party images are provided under fair use guidelines.)

Related Reports:

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

“Move, Open, Live” De Rose Industries & Senator Thom Tillis’ Mobile Home Comments

Is More Manufactured Housing Coming to Hawaii?

 

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SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.