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Posts Tagged ‘conference call’

HUD Code Manufactured Home Producers Want Regulatory Fairness and Stronger Congressional Oversight

August 18th, 2014 Comments off

is=hud-making-home-less-affordable--graphic3-daily-business-news-mhpronews-com-A builder of HUD Code manufactured homes contacted MHProNews  Monday morning with comments regarding concerns that arose from a conference call with producers, HUD’s third party inspectors and others they said took place last Wednesday, August 13th at 2 PM ET.

The caller urged that we contact other independent producers, asking them for their take on allegations such as the following:

  • that no cost-benefit analysis is being done by HUD on the impact of their requirements,
  • that the consensus process is being ignored or bypassed,
  • HUD is going past its mandates, 
  • that third party inspectors are essentially benefiting when more regulations are put in place

among other issues raised. Asked about the above allegations, a C-Suite level official at another independent manufactured home (MH) producer made this statement to MHProNews, quoting verbatim:

Your caller is 100% correct, in my opinion, on each and every point made.”

Fear of Regulators?

The original source stated that HUD Code MH producers are “scared to death” about making public or on-the-record statements on such matters, because there are “…so many gray areas in the regulations that it would be easy to get shut down on a relatively minor point, and essentially be put out of business.”

MHProNews  contacted HUD about these allegations. We were informed that MH program director Pam Danner is “out until  Wednesday, September 3, 2014.”  Two alternative contacts were given, including Rick Mendlen, whose voice mail stated he would be “out until August 26th.” Patricia McDuffie  was the other alternate contact, and she nor others at HUD returned our inquiries as of press time.

gao-report-to-congressional-requesters-july2014-manufactured-housing-efforts-needed-to-enhance-program-effectiveness-and-ensure-funding-stability-The MH Industry’s Need to Know

I just do not think most people in our business understand the burden and arbitray nature of the regulations,” a C-Suite level HUD Code builder claimed.

An executive level producer’s comment – likewise shared off-the-record – was “There is no new revelation” in these comments, but empahsized that “It just needs to be better understood” by MH Industry professionals as well as by Congress, who is supposed to be providing oversight to regulators.

Indeed, a recent GAO report issued that was requested by members of Congress, dealt with HUD Code program challenges in some depth.

Regulatory Impact on Potential Home Buyers?

Young people aren’t buying homes,” said a builder, yet “rental rates continue to rise” in the housing market. The source’s point was that regulatory burdens – certainly not only for manufactured housing, but true for other industries including finance – are harming affordability and access by consumers to options they’d normally seek absent those regulations.

Another comment was that much of what comes out of Washington, DC is couched in legalize, making it hard for greater numbers in the industry to relate to the true impact of this or similar issues regarding “regs.”

The same could be said about finance and regulations,” a lender told MHProNews.  “Nor am I talking about MH regs alone, just look at the number of community banks that have shut down since Dodd-Frank went into effect.” Regulatory costs are easier for the larger banks to deal with, that source asserted.

Off the Record from HUD?

The Manufactured Housing Consensus Committee (MHCC) is the body that the Manufactured Housing Improvement Act of 2000 (MHIA 2000) established to insure reasonable and effective regulations. A source close to the HUD MH Program stated the following:

I assume the manufacturers are complaining about program guidance. The only thing that must be submitted to the MHCC for comment are actual regulation changes.  Guidance may be written, but unlike regulations, guidance does not have the force and effect of law.  While guidance may determine how HUD and its agents (IBTS, IPIAs and DAPIAs) will go about enforcing the regulations, they are not law and are subject to legal challenge.” 

MHProNews  was also told by an informed source:

Well, the new label fee is now law.  Honestly, I think it is justified.  Congress has stopped supplementing the program budget with tax dollars, so they really needed a big increase.   When you think about it, $100 per unit really isn’t that much to reimburse HUD for all the program activity that unit requires.  One problem I can see would be the windfall HUD would gain if the industry experiences a strong recovery. I’m for a label fee rule that would be based on a formula that would adjust based on production.” 

More than just hikes in HUD Label Fees…

A source who spent years with a major MH producer emailed MHProNews the following statement on these issues:

I can tell you the following.

· The HUD Label is a pass through to the end consumer. It is a line item like any other option and it is marked up like any option. The end consumer will bear the brunt of additional HUD Label cost. Just like the Beef industry. The end consumer ultimately pays for all material or labor increases.

· Larger manufacturers can implement regs much easier because they have a Quality Control Manager at each plant and this is his or her only job where at smaller independent manufacturer this job may be assigned to someone in the plant that has other responsibilities.

· The HUD Labels have to be purchased from the State SAA or whatever state agency has the IPIA Inspection contract and are issued after completed inspection. They are not purchased directly from HUD.

· All Manufacturers fear additional HUD Regulations because the HUD Code already takes up a 3000 page book of requirements and you can only teachlaborers so much.

· To interpret and build to a new HUD Reg wrong, even though unintentionally, can result to thousands of dollars in fines and Temporary Plant Closure.

· When HUD pinpoints a Reg that a plant has not adhered to it can also require the plant to go back and change every house in the field they have ever built which can cripple a Manufacturing facility. So yes, there is a high degree of fear by all plants.

·The lower your production levels are, the more dollars per unit new Regs can cost. All plants are operating at roughly 50% to 65% of their capacity.”

Feeding the above comment back to a previously cited producer drew this reply:

Well said and nice to hear how others live in fear as we do.

Yes, the labels are a pass through and in and of itself not crippling, but in context of all the regulation costs, why has there not been any cost benefit analysis?  If anything””there has to be some push back from the industry or they will frequent this well all too soon.

Keep in mind most of us are building several codes in our facilities because HUD numbers have dropped so far, making additional regulations and changes even more difficult to deal with. The more we have to deal with, the less ability we have to build our mandate: high value homes.”

This comment below from yet another industry professional/MH producer, likewise given the opportunity to be on or off the record with MHProNews, stated as follows regarding the impact of regulations by HUD on builders:

I agree on all fronts, I don’t seeing what naming anyone does to benefit the cause. The fact that no one can justify being on record should say more about how oppressive HUD and this administration is to our industry.“##

(Editor’s Note: On or off the record comments are welcome: iReportMHNewsTips@mhmsm.com.)

(Graphic credits: GAO Report cover, and Making Home Affordable – albeit modified – as shown.)

Sun Communities to Offer Q2 2013 Results

July 25th, 2013 Comments off

Manufactured Housing Community owner Sun Communities, Inc. (NYSE:SUI) will release its Q2 2013 financials before the market opens Thurs., July 25, to be followed by a conference call at 11 a.m. that same morning. For the first quarter of this year revenue increased 24.4 percent over the same period last year. The company has a one-year low of $36.15, a one-year high of $57.78, and a 50-day moving average of $50.34. Sun fell -3.06 percent Wed., July 24 to close at 51.02. The dailypolitical reports Sun’s market cap is $1.887 billion and the P/E ratio is 281.44. As MHProNews knows, Sun Communities is a real estate investment trust (REIT) that owns and operates 380 manufactured housing and recreational vehicle communities comprised of 67,380 developed sites.

(Photo credit: Sun Communities, Inc.)

Equity LifeStyle Properties to Release Q2 Financials

July 23rd, 2013 Comments off

Chicago-based, land lease community operator Equity LifeStyle Properties (NYSE:ELS) will announce its second quarter 2013 earnings report in a conference call Tue., July 23 at 11:00 AM. In its first quarter 2013 earnings data, ELS reported revenue of $190.59, beating the consensus estimate of $177.42. According to utahpeoplespost, the revenue for the first quarter increased 5.1 percent on a year-over-year basis. As MHProNews knows, ELS is the largest operator of manufactured housing and recreational vehicle communities in North America, with 383 properties comprised of 142,682 homesites.

(Photo credit: Equity LifeStyle Properties–Lake Haven, Clearwater, Fla.)

Killam to Release Q2 Financials

July 15th, 2013 Comments off

Killam Properties Inc. (TSX: KMP) will release its financial results for the second quarter ending June 30, 2013 on Wednesday, August 7, 2013, after the close of the market. A conference call to discuss the financials will be held on Thursday, August 8, 2013, at 12:00 PM EST. In Toronto call (647) 427-7450 to access the conference call. In the rest of North America, call toll free (888) 231 8191, as MHProNews has learned from newswire.ca. One of Canada’s largest residential landlords, based in Halifax, Nova Scotia, Killam owns and operates 50 manufactured housing communities as well as multifamily apartments.

(Photo credit: Killam Properties, Inc.)

Sun to Release Q2 2013 Financials

July 1st, 2013 Comments off

Real estate investment trust (REIT) Sun Communities, Inc. announces it will release second quarter 2013 financial results before the market opens on Thursday, July 25, 2013 to be followed by a conference call that same morning at 11:00 AM (EST) to discuss the results. To participate, call toll-free 877-941-0844. The conference will be available live on the company’s website, www.suncommunities.com, according to marketwatch.com. As MHProNews knows, Sun owns and operates a portfolio of 185 manufactured home and recreational vehicle communities comprised of 68,200 developed sites.

(Photo credit: Sun Communities, Inc.—Plum Creek Golf and RV Resort)

Largest Manufactured Home Community CEO Speaks

April 26th, 2013 Comments off

SeekingAlpha reports Equity LifeStyle Properties, Inc., the largest operator of manufactured home communities in the U.S., issued the transcript of its conference call for the first quarter 2013 financials April 23. CEO Margeurite Nader, noting the consistency of growth in their funds from operations (FFO), said demand continues to be strong for manufactured housing and the company focus is on increasing ownership. While the used sales volume increased 15% this first quarter, ELS and Cavco Industries, Inc. entered an agreement for Cavco to put homes in ELS communities and offer financing services. In the RV sector she said transient revenue rose ten percent over last year, mostly from Florida and Arizona, new RV distribution channels have been established, and a deal is cooking with a large RV rental firm. In addition, CFO Paul Seavey covers, in detail, the financials for Q1 2013 as well as expectations. MHProNews understands ELS is the largest MH and RV community owner with over 140,000 sites. For the complete transcript, click here.

(Photo credit: Equity LifeStyle Property–Calif. Country Club)

Drew to Release Financials

April 19th, 2013 Comments off

According to ADVFN, Drew Industries, Inc. (NYSE:DW) will release its 2013 first quarter earnings report Fri. May 3, 2013 before the market opens, followed by a conference call at 11 AM EST that morning to discuss the results. While participation in the question and answer segment of the webcast will be limited to institutional investors and analysts, others may listen in on Drew’s website at www.drewindustries.com As MHProNews knows, Drew supplies the manufactured and recreational vehicle industries with a multitude of components through its subsidiaries, Kinro, Inc. and Lippert Components, Inc.

(Image credit: Drew Industries, Inc.)

Killam Buying West

April 16th, 2013 Comments off

As MHProNews reported Nov. 13, 2012, CEO Philip Fraser of Killam Properties, Inc., calling Ottawa (the Canadian capital) “one of the strongest cities for long-term investment in Ontario,” announced the company purchase of a 25%  share with a Kuwaiti company for a 146-unit apartment development. Also in Ottawa, Killam acquired a 244-unit apartment portfolio consisting of four buildings for $24 million. Based in Halifax, Nova Scotia, Canada, net operating income (NOI)  in Q3 2012 rose 0.7% over the same period in 2011. For the 4th quarter 2012, NOI increased 1.4% over Q4 2011. According to Yahoo!Finance Canada, as we reported earlier, Killam will release results for the quarter ending March 31 May 7, 2013, after the close of the market.  Killam operates over 50 manufactured home communities, mostly in Atlantic Canada, comprised of nearly 7,500 homesites.

(Photo credit: Killam Properties, Inc.)

 

Killam to Release Q1 Numbers

April 12th, 2013 Comments off

The digitaljournal informs MHProNews that Killam Properties, Inc. of Halifax, Nova Scotia, Canada will announce its financials for the quarter ending March 31, 2013 on May 7, 2013 after the close of the market. A conference call to discuss the findings will follow on Wed. May 8, 2013 at 9 AM EST. To participate contact www.killamproperties.com With over 50 properties, Killam is one of the largest owners of manufactured housing in Canada.

(Photo credit: Killam Properties, Inc.)

Drew Set to Release Q4 Results

February 7th, 2013 Comments off

RVBusiness informs MHProNews Drew Industries, Inc. of White Plains, NY will release its financials for Q4 2012 before the market opens on Wed. Feb. 20, and then host a conference call that same day at 11 AM ET for institutional investors and analysts. Others may listen to a live webcast of the call by contacting the company. Drew is the parent company of Kinro Inc. and Lippert Components, Inc., which supply the MH and RV industries with doors, windows, and other components.

(Image credit: Drew Industries, Inc.)