Archive

Posts Tagged ‘#authorRick’

Controversy Erupts! Tunica Manufactured Home Show ‘Educational Seminar’-Legally Questioned “Lease Option” “Chattel Lending” ‘Taught’ by Spencer Roane, Promoted By George F. Allen, SECO

March 9th, 2019 Comments off

 

TunicaManufacturedHomeShowLogoSpencerRoanePhotoPentagonPropertiesPromotedGeorgeFAllenCommunityInvestorEducateMHCMHVillageLogo600

We can’t be perfect but we can try to be. As I’ve said in these memos for more than 25 years: ‘We can afford to lose money—even a lot of money. But we can’t afford to lose reputation—even a shred of reputation.’ We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter.”

  • Warren Buffett,
    Chairman, Berkshire Hathaway, parent of Clayton Homes, 21st Mortgage and other manufactured housing and other industry brands. Quote cited by Business Insider, Reputation Defender, previously on MHProNews and others.

 

The manufactured housing industry is arguably routinely risking and losing shreds of reputation.

The bookend to the Buffett quote above is the following one, that industry professionals ought to grasp.

 

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett, cited by CNBC and others.

 

One could debate how well certain industry brands have – or have not – lived up to that high standard.  But the principles stated are an apt backdrop for what follows.  Why?  Because some industry association leaders are de facto weighing the risk to reputation, and arguably could be opening the doors to legal concerns and future litigation in the #nettlesomethings that follow.

 

 

Risking the Industry’s Reputation and the Threat of Litigation

Last year, industry professionals experienced several weeks of largely dark mainstream news reports by reporter Tyler Jett and others in media.  These involved the troubling stories of over a dozen home owners in northern Georgia who alleged that they paid or where paying for homes ‘sold’ to them ‘contract for title’ by land-lease community owner, Tom Lackey.  But per those customers, no titles were ever provided. Some said they lost ‘everything.’ Spencer Roane and the Southeastern Community Owners (SECO) were in the background of that ‘education’ of Lackey, as was promoter and blogger George F. (F?) Allen.

Neither Roane nor Allen would in any way repudiate what Lackey did, per a report by on May 26, 2018 by mainstream writer Jett, linked here.

 

TimesFreePressIndustryMembersDeclineCommentTylerJettManufacturedHousingINdustryDailyBuisnessNEwsMHProNEws

One of several stories about problems at Tom Lackey’s manufactured home community. In this report, Spencer Roane and George F. Allen both declined to criticize Lackey, and in some ways, defended him. See report at this link. http://www.timesfreepress.com/news/local/story/2018/may/26/industry-members-decline-take-sides-rossville/471775/

 

The manufactured housing industry in general and land-lease community owners alike – most entirely unconnected to the troubling matter – nevertheless had their reputations arguably tarnished by the string of mostly bleak media reports.  As often occurs, that reputational harm occurred even though it was a tiny minority of the industry’s professionals involved in the troubling stories of ‘lease option’ ‘sales’ gone wrong involving Lackey and his SECO ‘educators.’

 

Fast forward to March 2019

Tornadoes. Rent control. Fires & crimes. Zoning. There are plenty of problematic items about manufactured housing in the news already. Does the industry’s independents, associations, and other companies need more avoidable pitfalls?

But unless a course correction is made, it will be no logically be no surprise if one or more future mainstream and trade news reports will again follow in the wake of ‘lease option’ related ‘education’ and related business practices.

But this time, the potentially avoidable miscue is scheduled to occur in Tunica, MS, at the industry trade show scheduled there for later this month.

According to an industry attorney with ties to Manufactured Housing Institute (MHI) rather than the Manufactured Housing Association for Regulatory Reform (MHARR), that lawyer previously advised the Daily Business News on MHProNews that the practice described is “illegal.”

In a message to our publisher, specially commenting on practices being promoted by Roane, Lackey, and SECO, that attorney said the following.

 

Tony, not sure if I’m walking into a [manufactured home industry political] land mine, but as I think you know, it’s ALWAYS been my position that lease option and rent to own are illegal if they are a “workaround” for chattel financing, which is what most such schemes are,” per that legal expert.

 

The Alabama Manufactured Housing Association (AMHA) acknowledged they received our query about this controversial issue, which included a mention of the legal opinion above. They have not yet said what, if anything, that they and their colleagues plan to do about it. Along with the Mississippi Manufactured Housing Association (MMHA), those states are part of the South Central Manufactured Housing Institute (SCMHI) and that nonprofit ‘owns’ the Tunica Show. Show Ways Unlimited and others in the mix have also been advised about these legal concerns too.

 

TunicaShowJenHallDorisHydrickDennisHillLanceLathamMicheleMiddletonSpencerRoaneGeorgeAllenMHProNews

WARNING. Don’t scan this article, or you’ll risk missing the point.

 

Additionally, all were advised that the New York State Attorney General’s office last year settled dozens of claims – including several larger manufactured home community operations – all of which reportedly involved variations of lease option transactions.  If larger communities couldn’t make lease option (LO) transactions work legally with officials at the state of NY, how is it that Roane and Allen believe that they can do better?

For the official statement from the NY AG’s office to MHProNews can be accessed via the linked text-image box below.

NYAGUAnnouncesMajorSettlementManufacturedHomeParkOwnersReformRentToWonPracticesFollowingIndustryWideInvestigationCommunityMHProNews

See the document as a download linked here. The question should be simple. If Spencer Roane and George Allen have prof that their system is legitimate, why don’t they simply provide that evidence?  If they can prove its legal, from a state or federal government agency letter saying as much, then by all means, let their ‘education’ go forward.  But if not, why should risk be created for others by problematic teaching of a practice that most say is illegal as the law currently stands?

 

 

 

Spencer Roane, George F. Allen Questioned – And Their Responses

As noted above, Spencer Roane and George F. Allen are no strangers to the legal and media controversies that can arise from ‘contract for title’ type sales that Roane and SECO ‘teaches.’  Neither Roane not Allen would condemn or correct on the record to the  Chattanooga Times Free Press the allegations about Tom Lackey selling homes where over a dozen households lost out, because no title was purportedly delivered to his “buyers.” The story made periodic news for weeks, across several news sources. The word heard that the legal fallout from that matter is far from over. So while the headlines are missing in the mainstream, per sources, the investigations continue.

So Lackey, Roane, Allen, and SECO could find themselves once more in the news over that industry black eye, which the majority of manufactured home professionals had nothing to do with.

Undeterred by the past pain, they press on.

MHProNews asked Roane and Allen (GFA) to show proof to the Tunica Show management and this media outlet that their education is legitimate and legal.

Allen, writing to Tunica Show officials, Spencer Roane, Ken Corbin, and MHProNews – among others – said this via email.

GeorgeAllenCommunityInvestorBlogMHMPostedMastheadBlogManufacturedHousingIndustryCommentaryNewsMHProNews-133x150a

George Allen, photo credit, MHProNews.com.

In my opinion, there is nothing to be gained by responding to this request. All anyone, interested in this timely subject, has to do, is attend a presentation describing lease-option in detail. This is not a rent to own type housing finance program. Period. 

GFA

 

Note that at no time did Allen offer proof or any evidence beyond his word and Roane’s that this was a legally compliant program, one vetted by any attorney, much less authorized or vetted by the Consumer Financial Protection Bureau (CFPB), or any state authority. Yet that’s what Roane and Allen were asked to provide.

Furthermore, here’s what the Tunica Show website said on 3.9.2019.

 

2019-03-09_1152TunicaShowPromoSECOSpencerRoanePentagoPropertiesDailyBusinessNewsMHProNews

Further into Roane’s promo on the Tunica site, Roane claims: “Why the contract “passes muster” in some states…” – the italics has been added for emphasis. That phrase itself suggests that it doesn’t pass muster in other states.

Which ought to beg the question – why should the prospective attendees to an official trade association sanctioned event be made to hunt for proof of the legality of a practice that has been deemed non-compliant in NY, or elsewhere? Why did MHVillage – who handles this website – not question the matter?  Is it because they are chummy with Allen and company?

That said, here’s what Roane replied to the same circle of show-related officials, with the “Amen” by Roane presumably being a response to George F. (F?) Allen’s comment.

 

Amen.

Anyone truly interested in “the facts” might be well advised to do the following:

  • read the SAFE Act of 2008 & the Dodd-Frank Act of 2010
  • read each state’s modification of its mortgage law to comply with Federal law
  • read NY AG court case
  • attend MLO and MB/ML licensing course
  • pay for the special membership to IAMHA to obtain a copy of their attorneys’ L-O opinion & docs
  • pay $500+/hr. for consultation w/ attorney specializing in finance law
  • ignore sensation-driven, poorly researched, disreputable MH publications with poorly written articles based solely on unidentified “sources” and “no comment”.
  • attend my presentation at the Tunica Show (if allowed)

Regards, Spencer

 

RedHerringWikipediaDailyBusinessNewsMHproNews

Artful dodge, razzle dazzle, or other trickster ways of emotionally or otherwise manipulating or moving the focus away from the actual issue.

 

Breaking Roane’s Response Down

Roane himself ducked the question with a blizzard of verbiage.  This is known as a red herring or a dodge.  Roane failed to at any time provide or offer proof of what he wants to teach that he claims is legally permissible. If its legal, why no proof?  Shouldn’t the Tunica Show, the associations, and sponsors care?  On the flip side of Roane and Allen’s claims are one of several thousands of search results about this very legal concern, which often references the CFPB calling the practice illicit.

SpencerRoanePentagonPropertiesSECOSoutheasternCommunityOwnersSymposiumCFPBTunicaManufacturedHousingShow2019-03-09_1134

 

So where the record stands is this.  Thousands on-line have commented on this issue, and the commentary largely runs contrary to what Roane and Allen have said.  Even this year, the NY AG’s office recently filed yet another case on this specific issue, see the linked text-image box below.

 

State AG Files Suit Against, Manufactured Home Community, Rent to Own, Lease Purchase Option Warning

 

Once again, here is the official release by the NY State AG last year, involving dozens of communities.  Also recapping, that MHI connected attorney said the matter is NOT legal.

Tony, not sure if I’m walking into a [manufactured home industry political] land mine, but as I think you know, it’s ALWAYS been my position that lease option and rent to own are illegal if they are a “workaround” for chattel financing, which is what most such schemes are.”

The Law Professors website notes that “the CFPB has taken an interest in these types of predatory transactions as well. … This looks more like just a loan disguised as a lease…”

Given all the evidence to the contrary, why should Roane and Allen be believed?

Roane himself seemed uncertain that he would be allowed to proceed.

It is not yet clear if the SCMHI and related Tunica show leaders and sponsors will allow him to do so.

 

MHI Asked to Weigh in on Legal Questions, Concerns

The sponsor of the Tunica Show website is shown as MHVillage.  They are a Manufactured Housing Institute (MHI) member, and the state associations involved are MHI affiliates.  Those firms in New York that the state attorney general forced into settlements included MHI member firms. If MHI cares about industry image, following the Buffett mantra above, why not weigh in on this, and head off possible problems?

MHI attorney Rick Robinson was among those contacted by MHProNews to see if he will defend Roane and Allen’s controversial stance, or not. Clayton Homes attorney Tom Hodges is a MHI Executive Committee board member.  Hodges and MHI Chairman Joe Stegmayer likewise been asked to defend, clarify, or alert others about the legal worries involved.

The National Association of Manufactured Housing Community Owners (NAMHCO) have also been contacted. Will the new NAMHCO trade group weigh-in on an issue that the New York Attorney General’s office and others believe is no longer legal?

MHProNews will monitor the matter and follow up as it may be necessary to alert possible victims (err, attendees) of Roane’s ‘seminar education’ that he claims is legitimate, but for which he will offer no proof from the CFPB, state officials, or other authoritative sources that will certify its legality.

 

Secondary Liability?

As a final note to event sponsors, there is a question of downstream liability connected with a legally disputed issue like this too. Should this Roane-SECO lease option ‘training’ not be addressed in advance of the event, and if the ‘seminar’ goes on without published proof of the legality of the disputed concept, attorneys have advised MHProNews on similar issues that this could lead to secondary liability, later legal woes.

Seminar and SECO attendees of “LO” ‘education,’ beware. Free education of a legally challenged concept could prove costly.

Stay tuned for more, as needed and deemed warranted.  That’s manufactured housing “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted 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.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

 

Manufactured Housing Institute’s Three Stooges? SECO ‘Leaders’ George F. Allen, Spencer Roane, Tom Lackey and ‘Rent to Own’ Scams?

 

 

 

 

 

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

March 6th, 2019 Comments off

 

MHIgrowthAgendaRickRobinsonJDSVPManufacturedHousingInstitutePreemptionEvidenceWritofMandamusAddressingHUDCodeManufacturedHomeShipmentWoes

Ask the typical business professional or sales agent this. Do they want to sell more or less of their product or service?  Do they want more profits, or lower profits? The typical answer will be ‘More, of course.’  The background of this story is the profitable sale of more new HUD Code manufactured homes.  But the foreground of this report is the headline question, because it explains a vital path to achieve the sale of more new homes for the manufactured housing industry.

 

Stating the obvious can clarify an issue.

Journalists routinely are about seeking answers to questions. Associations are about agendas. A reasonable question is, what is an association’s agenda? Not just the Manufactured Housing Institute (MHI), but any association?  How does a specific trade group go about promoting an agenda? Is a trade group or association successful? If not, why not? If so, how so?

Consider these possible goals.

  • Selling more new manufactured homes.
  • Closing more loans.
  • Providing more of the products and services your firm or others in the industry may wish to sell.
  • These are worthy and logical goals – an agenda – for every forward-looking business.
  • They are also logically at the heart of the P.E.P. of every good post-production trade group, with P.E.P = Protect, Educate, and Promote.

Investors in publicly traded companies operating in manufactured housing, may wonder in the wake of the Cavco stock brouhaha, are publicly traded firms in MHVille doing all that they can to maximize shareholder value?  Are some trade groups that a given company supports working toward more growth and profitability, or not?

With the backdrop of those interests, questions, and possible agendas, consider the following facts, quotes, and insights.

 

Rick Robinson, JD

During the 2017 battle in the state of Ohio over their state’s manufactured home regulatory commission, the Manufactured Housing Institute (MHI) Senior Vice President (SVP) and General Counsel, Rick Robinson made an argument on behalf of the industry in that state’s House of Representatives.

That argument included a mention of the federal preemption that HUD Code manufactured housing enjoys. The text of that talk by Robinson is linked here as a download.

It is widely acknowledged, including by MHI, that zoning and related challenges are a concern that is hampering the sales of more HUD Code manufactured homes. This is no secret. It’s been a challenge for many years. MHLivingNews, in an article by award-winning journalist Jan Hollingsworth, linked from the text-image box below, spotlighted that problem some years ago.

 

Local Star Chambers Wage War on Affordable Housing

 

In an interview for that article by Hollingsworth, a Texas retailer told our journalist that zoning and placement issues were a bigger challenge to the industry than Dodd-Frank was at the time.

Pause and ponder that for a moment.  A volume retailer, in the number one state selling for manufactured housing, said that the biggest issue at that time wasn’t fewer lenders or points and fees on manufactured housing loans. The biggest issue wasn’t the MLO rule, which has since been rolled-back as part of the Trump Administration’s deregulatory agenda.

GaryAdamekPHotosFayetteCountryHomesMHLivingNewsMHProNewsThe biggest issue for retailers – per Gary Adamek, of Fayette Country Homes – was zoning and placement related woes.

The Manufactured Housing Association for Regulatory Reform (MHARR) has likewise spotlighted the issue for several years. Indeed, one might say that MHARR fought for this issue over 20 years ago, in the run up to what became the Manufactured Housing Improvement Act of 2000 (MHIA 2000).

 

titleVI-manufactured-housing-improvement-act-2000-mhia-2000graphic-posted-daily-business-news-mhpronews-

 

Associations in the same industry normally monitor each other’s work. MHI was also part of the process of getting the MHIA 2000 passed into law. So, there is no denying that MHI would institutionally know about federal enhanced preemption.

Furthermore, MHI hired an attorney to attempt to threaten – some might say, attempt to bully – MHProNews, and their attorney said they will be monitoring our website. Okay, it’s a public site for industry professionals. Put differently, MHI stated via said outside counsel that they read what the Daily Business News on MHProNews publishes. We already knew that from a variety of other MHI sources.  But MHI’s contracted outside attorney from Ohio made their close reading of the MHProNews website official.

The point is that there are no common-sense arguments that MHI can make whereby they could claim ignorance of federal preemption, or any lack of knowledge about the enhanced preemption provided under the MHIA or 2000.

Those predicates establishes these facts.  MHI knows about federal preemption, and enhanced preemption.

 

Which brings up the following.

Author Rick’s Book…

Rick Robinson Twitter handle is @authorRick, so tweets about him are at #authorRick. Robinson wrote a book entitled “Writ of Mandamus.” The dictionary defines said writ as follows.

RickRobinsonWritOfMandamusDailyBusinessNewsMHProNews@authorRick#AuthorRick

 

So, attorney and author Robinson knows this infrequently mentioned legal process — the writ of mandamus. Follow the evolving logic, because it is potentially profitable, thus worthwhile, as well as revealing.

How and why? Because properly applied, there is at hand a potent legal tool that already exits that could lead to opening more markets for manufactured housing (MH) sales.  Everyone in the MH industry that benefits from more sales would benefit from the application of the details revealed in this report.

So, MHI should care about using this, and be front and center on this issue, right?

 

Getting a Law Enforced

The passage of a law is normally a multi-year task.  Perhaps sadly, it may then become a challenge to get a law enforced. At least, that has been the experience of the manufactured housing industry on some key pieces of legislation.

Two current and practical examples of that challenge of getting an existing law enforced?

 

  • The Duty to Serve (DTS) Manufactured Housing and underserved markets mandated for the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac under the Housing and Economic Recovery Act of 2008 (HERA).
  • The routine enforcement by HUD of the “enhanced preemptionclause of the MHIA 2000. It will be recalled that Arkansas Manufactured Housing Association (AMHA) Executive Director JD Harper has sounded off on the issue of enhanced preemption several times, including here on MHProNews. By contrast to enhanced preemption, HUD vigorously enforces fair housing laws. Where is a similar level of enforcement for the MHIA of 2000 enhanced preemption by HUD?

It should be noted that a source at HUD told MHLivingNews that HUD had a staff attorney who served that agency’s manufactured housing division for years and who per sources routinely declined to enforce that enhanced preemption provision of the federal code. As a side note, the finger pointing at an attorney was not Bill Matchneer, but another lawyer who has since left the agency after several decades there.

Why did that attorney not push HUD’s preemption for manufactured housing hard?

JenniferHallMSmanufacturedHousingAssocDailyBusinessNewsMHProNewsThat’s approaching the heart of the issue.  Note that it isn’t that HUD’s preemption was never enforced, as Jennifer ‘Jen’ Hall from the Mississippi Manufactured Housing Association (MMHA) demonstrated.  See her article about the letter she obtained from HUD regarding federal preemption.  Hall’s commentary on that HUD letter are linked here, with the document from HUD on preemption linked here.

 

 

So, state execs know about federal preemption too.  At least some have previously pushed for the enforcement of said federal preemption.

MarkWeissJDPresidentCEOManufacturedHousingAssocRegulatoryReformDailyBusinessNewsMHProNewsMHARR continues to push for the enforcement of enhanced preemption.  But with the MHIA passed, preemption it is now a “post-production” issue, and MHARR is a production regulatory focused trade group. Thus, what MHARR does now is periodically spotlight the matter, as it falls on state associations and/or MHI to deal with this as a post-production enforcement matter.

There are several states associations where sales volumes are so low that their state trade groups are marginal at best in size and resources. Thus, it falls to Arlington, VA based MHI, which claims to represent “all segments of factory-built housing industry” – including after construction, a.k.a. post-production issues – to seek the enforcement of this worthwhile federal law.

Where is MHI on that potentially profitable effort?

What is the MHI agenda on seeking the robust application of federal enhanced preemption?

These are important questions that demand answers from MHI.  Given months of shipment declines during an affordable housing crisis, what better time than now for them  to answer those questions? The latest data and analysis on the falling numbers for manufactured home shipments are linked from the text-image box below.

 

As Affordable Housing Crisis Rages, New HUD Code Manufactured Housing Shipments Fall, Some States Drop 35-40 Percent

 

So, there are good federal laws that are on the books. Why are those federal laws not being properly enforced?  MHARR in their recent report on the challenges facing new manufactured home shipment levels mentioned as important factors zoning, placement, and DTS.

Those are all post-production topics. So, the spotlight logically falls on MHI.

 

 

MHI and Their Photo Ops with Federal Officials

MHI enjoys touting their connections with high-level officials. Photos ops are shown to their readers, which are presumably supposed to impress their members and demonstrate visually MHI’s self-proclaimed clout.

GotClout-questionmark-GetItHere-MHI-ManufacturedHousingInstitute-postedMHProNews-com-

Beyond networking meetings, how has MHI achieved their own stated claim of clout in Washington, D.C.? Or with cities and states?  MHI was praised for their effort in Ohio, but that was a failed effort. Where is the MHI clout???

 

But there’s an apparent problem with these claims by MHI of their ‘clout.’

MHI has complained at times about zoning and placement that hinders more manufactured housing sales. At least by word, HUD Secretary Carson promised a “new era of cooperation” with manufactured housing at an MHI event. Certainly, Pam Danner was exited from the program – which was achieved in large part by the efforts of MHARR, per the Washington Post.

Did enhanced preemption get raised by MHI at their various meetings with Secretary Carson or other key HUD staffers? If so, to what effect? If the topics were not broached, why not?

In the words of the classic Wendy’s ad, “Where is the beef?”

Or consider Western Communities association executive director Sheila Dey, JD, in her recent Op-Ed complaining about a lack of placement parity in her state. Dey is correct that manufactured housing is a smart option for affordable housing, and she made useful points on the need for that parity in placement.

But why is Dey left pleading with state officials for a state law at all?  Why not make what can be viewed as a more logical plea?  Why isn’t   her trade group and MHI jointly going to HUD, and ask, ‘What’s up with the lack of enforcement of federal preemption for manufactured homes?

Those local zoning issues would arguably vanish, if federal preemption were robustly enforced.  One logical result is that manufactured home sales could soar.

ManufacturedHomeMHShipments1990-2017DailybusinessNewsManufacturedHousingMHProNews600

Note the trend line. Manufactured housing is underperforming. Note the difference between RVs 20 years ago, and MH 20 years ago. MH Is underperforming. No one else has advanced a thesis as logical and compelling. To date, Omaha-Knoxville-Arlington have not even attempted to refute the claims. Will they today?

 

Countering False Narratives Against the Placement of Manufactured Homes

Beyond the preemption law itself, the article linked below outlines compelling facts that explain why it is in the state or local governments’ best interests to push for more affordable manufactured homes.  The report below lays out the logic as to why local and state governments ought to embrace manufactured homes, why it would be an economic boon to them, good for their residents, why it is proven not to harm neighbors values, and thus compliments the legal side of the enhanced preemption argument.

 

 

These realities beg these questions. Why aren’t MHI, Dey, or others routinely raising those points? They apparently know, right? Why not use their best arguments?  Yet as recently as this week, and for weeks on end, MHProNews has spotlighted the fact that the words “enhanced preemption” are not to be found on the MHI website.

 

C:\Users\L. A. Tony Kovach\Downloads\ManufacturedHousingInstituteLogo2019-01-09_1250ManufacturedHousingEnhancedPreemptionSearchMHProNews3.png

Provided under fair use guidelines.

 

How to explain this troubling oversight?  Or is it rather, indicative of what is taking place in Arlington?

OccamsRazorDefinedManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Occam’s Razor

It is the job of post-production associations to protect, educate, and promote (PEP) solutions to advance their industry.  That PEP mantra is standard fare, according to an executive director of an MHI state affiliate.

So why isn’t MHI:

 

  • Using their self-proclaimed ‘clout‘ to ask HUD to enforce enhanced preemption?
  • If hypothetically HUD refused or declined for any reason to enforce enhanced preemption, then why didn’t MHI’s general counsel ask a court to issue a “writ of mandamus,” to compel the Feds to enforce the law?
  • Since MHI’s staff, general counsel, outside counsel, and numerous – if not all – state associations know about MHARR and our publishing about Enhanced Preemption, then why isn’t the enforcement of enhanced preemption even on MHI’s own website?

Here again is Robinson’s testimony that mentions federal preemption, linked here.

 

Troubling Answers?

There are only a few reasonable conclusions that the facts, evidence, quotes, and logic herein and step-by-step reasoning reveals.

1) Perhaps MHI is inept. Maybe they are too lazy to put articles about enhanced preemption on their website, and maybe they are too unmotivated to actually make the case in Washington, or with local jurisdictions.  That’s a possibility, right?

2) Or, MHI is trying to posture action – what MHARR’s Mark Weiss, JD called the “Illusion of Motion” – performing what seems like activity, while actually keeping the manufactured home industry at lower sales levels.

3) If #2 is true, one must ask, why would MHI work against more growth? Why would MHI fail to use sound legal arguments?

One proposed reason for #3 above that some in manufactured housing have advanced is that lower sales levels reduces business’ values. That in turn allowed Berkshire Hathaway and other corporate consolidators of smaller firms to acquire firms at a “discount.” That’s a Machiavellian charge, but in the light of recent incidents and allegations against Clayton Homes’ threat aimed at a prominent independent, is it unbelievable?

 

“Mobile Home Militia,” Retail/Production Sources, Sound Alarm Against Clayton Homes, CMH, New “Anti-Competitive Practices” Allegation

 

Meaning, is there a hidden agenda at MHI?  If so, is it an agenda that may violate antitrust or other laws, and that violates their advertised claim of representing all segments of factory-built housing?

Inept. Or a hidden agenda. Does either conclusion look good for Arlington, VA based MHI?

As to state association executives, don’t forget what certain executives previously told MHProNews.

 

 

The above concerns raise even more vexing questions.

Why did MHI sound no alarms over the letter and related documentation linked below about 21st Mortgage, Warren Buffett, and the video with Kevin Clayton? After all, MHI claims to represent all segments of the industry, not just the big boys.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

If MHI were ignorant about these issues, then the answer is to get educated. If they were ignorant before, they are now hereby educated, as they will read this along with their attorneys.  Other readers will better grasp this issue, because it is posted on the most read-trade media site in all of manufactured housing.

There has been silence for a while from MHI’s outside lawyers.  Will they, after this report, once more threaten MHProNews for calling MHI out for their purportedly false and misleading claims? One might ask, why doesn’t MHI use that same money spent on outside attorneys to contact cities and towns that violate enhanced preemption?

As noted, MHARR’s job is not post-production focused. But going above and beyond, MHARR’s President, Mark Weiss, JD, has at times been looped in or teamed up with MHProNews’ publisher to address certain test issues.  Those include specific tests of enhanced preemption.  Each test proved successful.

See the reports linked here below, with still more found further below, after the bylines, offers, and notices.

 

Dramatic Reversal, City Passes Urgency Ordinance Effectively Banning Manufactured Homes, Front & Back Stories

 

At the approaching Tunica Manufactured Housing Show, will Rick Robinson or any other MHI representative(s) be willing to publicly discuss, clarify, and debate these issues in front of hundreds of independents and other industry members?

If not, why not?

The solution for the affordable housing crisis is hiding in plain sight. Dey is correct in saying that manufactured homes are an important part of that solution. But there is growing evidence that the post-production voices that are supposed to represent all segments of the industry, are perhaps only representing the interests of the few.

 

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not make offer a cogent explanation?

 

 

That’s why NAMHCO members broke from MHI.

NealTHaneyNAMHCOWhyBreakawayfromManfuacturedHousingInstituteMHI

That’s why MHARR broke from MHI years before.

 

DannyGhorbaniFormerMHIVpQuoteFoundingMHARRPresidentQuoteDailyBusinessNewsMHProNews

 

Isn’t it time now for the rest of the industry’s independents to seriously view this multiyear pattern of behavior and failures to truly implement good laws, to do the same as NAMHCO and MHARR have done? Meaning, should independents break with MHI, and to the degree possible, with those who support the Arlington based trade group?

 

SubmitNewsTipsCommentsLettersToEditorMHProNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

 

Facts are #NettlesomeThings

Let MHI exist for the sake of big companies. It is their right. Let MHI cheerleaders kiss the MHI donkey all they want to, that’s arguably odd, but it is their right.

But it seems entirely wrong for MHI to claim clout, posture action, and assert that they care about growth, when in fact the solutions for the industry are already in hand.

Near the heart of that should be efforts to enforce laws already on the books.  Those laws should be enforced, even if they may run counter to the interests of big companies that happen to be MHI members.

  • Omaha-Knoxville and their surrogates in trade publishing can mouth whatever Arlington based MHI wants, that’s their right.
  • But it is not MHI’s right to claim one thing, and do another. That’s deceptive. And there are legal sources that say that laws that relate to deceptive trade practices can be applied to trade associations.

 

DeceptiveTradePracticesManufacturedHousingInstituteDailyBusinessNewsMHproNews

 

If MHI were doing their job, our firm would still be a member. The fact that numbers have left or broken away from MHI to form new trade groups should speak volumes.

The facts laid out and linked from herein should reveal that the remaining independents may be feeding the hands that bites their own interests.

Some in MHVille – who are often associated with MHI – for their own reasons, purportedly want to mitigate sales growth.  The reason stated is that lower sales volumes – or in the case of communities, more vacant home sites – makes buying out independents less costly.

 

 

Why are only MHARR and MHProNews raising such issues?

The logic of this is hard to avoid, once the facts are laid out in this fashion.  But if MHI wants to issue a written statement that explains this, we are once more inviting them to correct or confirm the record.

Only the truth known and acted upon will set the industry free to achieve more robust sales.  DTS and Enhanced Preemption are two of those tools.  Why isn’t MHI using their clout to move them in a way that benefits the maximum number of industry professionals?

That’s this afternoon’s “Innovation – Information – Inspiration for Industry Professionals,” © where “We Provide, You Decide.” © ## (News, analysis, commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted 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.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Boehlert promoted, Rick Robinson new GC at the Manufactured Housing Institute

Sheila Dey, Western Manufactured Housing Communities Assoc, Tells Capitol – Manufactured Homes Could Ease Housing Crisis, Report and Analysis

As Affordable Housing Crisis Rages, New HUD Code Manufactured Housing Shipments Fall, Some States Drop 35-40 Percent

 

Bad News Is Coming to MHVille, Again. Three Vital Stages for Manufactured Housing Professionals

Manufactured Housing’s Top 10, March 2019

Rent Control & MH – Politicians “Are Carpet-Bombing Our State With Regulations That Will Deliberately Destabilize The Housing Market And Leave It Obliterated”

“Billion Dollar Empire Made From Mobile Homes,” What Washington Post’s Peter Whoriskey Didn’t Report

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

Democrats, Republicans Agree – “Manufactured Homes Can Play a Vital Role in Easing” the Affordable Housing Shortage

Affirmatively Furthering Fair Housing, a Novel Yet Proven Solution to the Affordable Housing Crisis That Will Create Opportunities, Based Upon Existing Laws