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Posts Tagged ‘HUD Code manufactured Home’

Manufactured Housing Shipment Totals, June 2018

August 6th, 2018 Comments off
ManufacturedHomeShipmentTotalDailyBusinessNewsMHProNewsJune2018

For the industry professionals who know the inside of a factory-building operation, the home in this photo is the start of a modular flooring system. The plant in the photo builds both HUD Code manufactured homes, and state coded modular homes. Details matter.

Manufactured housing shipments continued to rise, but the pace of growth slowed in June, per the latest data from the Manufactured Housing Association for Regulatory Reform (MHARR).  MHProNews presents MHARR’s latest data, and their formal statement, followed by an MHProNews analysis. 

 

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Washington, D.C., August 6, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production growth was sustained in June 2018.

Just-released statistics indicate that HUD Code manufacturers produced 8,258 homes in June 2018, a 1.3% increase over the 8,152 HUD Code homes produced during June 2017.

Cumulative industry production for 2018 now totals 50,897 homes, a 9.4% increase over the 46,502 HUD Code homes produced over the same period in 2017.

A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through June 2018 — with cumulative, monthly, current year (2018) and prior year (2017) shipments per category as indicated — are:

Top10ManufacturedHousingshipments2018CummulativeManufacturedHousingAssocRegulatoryReformMHARRTXLAFLALNCMSCAKYMITN-DailyBusinessNewsMHProNews

The latest information for June 2018 results in no changes to the cumulative top ten list.

About MHARR

The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. 

ManufacturedHousingAssocRegulatoryReformJOINMHARRbani-200x200

Click the above to learn more, which is not connected to this report.

MHProNews Analysis

MHARR is statistically correct in pointing to the ongoing rise in shipments.  There are good reasons to celebrate any gain.

That said, as the Daily Business News on MHProNews reported last week, the statistics also point to a slowing of the growth rate. MHARR’s leadership, in a video previously posted, indicates that the industry ought to be fully engaging in the post-production side, in order to grow more rapidly.  As if to underscore that point, the latest HousingEconomics data reveals that conventional housing is outselling manufactured homes by more than 16 to 1.

HousingEconomics Releases New Data on U.S. Housing, Comparing MH and Stick Built Data

Given that data point, consider the wide cost difference between conventional and manufactured homes.

Fresh Facts, Figures, Future of Affordable Housing -Comparisons- Conventional Site-Built v Mobile/Manufactured Home Industry Data

Couple that with some state-specific data, and there are several states which represent a potential warning sign for HUD Code manufactured housing producers, and sellers – if this trend were to continue.

Significant Slowdown of New HUD Code Manufactured Home Production Growth in June, Per Latest Data

When one looks at the data for conventional housing starts, what this trend also reflects is the continuing underperformance of manufactured housing in the marketplace.

The related reports reflect several concerns being expressed by various industry voices, and those who are researching manufactured housing.

The industry historically did much more.  It can and should be doing more today. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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

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

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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:

They Did It Before…Sunday Morning Manufactured Home Industry News Headline Recap July Aug 5, 2018

 

“Fixing Our Industry’s Terrible” Public Relations, a Proven Strategy

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

 

Manufactured Home Production and Shipment Report, April 2018, per MHARR, HUD, IBTS

June 4th, 2018 Comments off

ManufacturedHousingIndustryShipmentReportDailyBusinessNewsMHProNews

The Manufactured Housing Association for Regulatory Reform (MHARR) reports to the Daily Business News that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD) by their contractor.

 

Year-over-year “manufactured housing industry production grew again in April 2018. Just-released statistics indicate that HUD Code manufacturers produced 8,262 homes in April 2018, a 15.0% increase over the 7,184 HUD Code homes produced during April 2017.  Cumulative industry production for 2018 now totals 33,646 homes, a 10.0% increase over the 30,568 HUD Code homes produced over the same period in 2017,” said Mark Weiss, President and CEO of the national association that advocates for regulatory reform and promotes positions that would benefit consumers and manufactured home companies, such as the full implementation of the Manufactured Housing Improvement Act of 2000, and for the Duty to Serve manufactured housing by the Government Sponsored Enterprises (GSEs), mandated by HERA 2008.

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

A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through April 2018 — with cumulative, monthly, current year (2018) and prior year (2017) shipments per category as indicated — are:”

April2018ManufacturedHomeIndustryProductionShipmentReportManufacturedHousingAssocRegulatoryReformMHARRMHProNews

About MHARR

The Manufactured Housing Association for Regulatory Reform (MHARR) is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing.

2018 Projections?

Based upon the April results, projected out for 12 months, the totals for 2018 would yield 99,144 new HUD Code manufactured homes. 

Using the first four months total for 2018, and projecting that out for the balance of the year, would yield  100,938 new HUD Code manufactured homes in 2018. ## (News, analysis, and commentary.)

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

Related Reports:

NAR’s Lawrence Yun Raises Alarm for New Housing Crisis, MH Import?

Rollohome, Creating 60,000 Factory-Built Homes in 2 Years

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NAR’s Lawrence Yun Raises Alarm for New Housing Crisis, MH Import?

May 30th, 2018 Comments off

LawrenceYunMay2018InventoryHousingOnMarketManufacturedHousingDailyBuisnessNewsMHproNews

The housing industry today is facing a different kind of crisis:
not enough homes for sale
.”
– Lawrence Yun, Forbes Contributor.

 

A decade ago, the housing sector was in a mess. The mistakes of easy subprime lending resulted ultimately in the catastrophic collapse of the housing sector. Home values collapsed by a third nationwide, and the inventory of unsold homes spiked to unprecedented heights. Miami, for example, at one point was said to have 30 years of housing inventory.” – said Lawrence Yun, Forbes contributor and chief economist for the National Association for Realtors (NAR).

GoodEconomyJobAdditions90StraightMonthsUnemployment3.9PercentHighStockMarketHighNetWorthWagesRisingYunNARMay2018ManufacturedHousingMHProNEws600

Fortunately, after many years of sobering up, with proper lending and consistent job creations in the economy, the housing market has regained some health, with higher home sales and a very low foreclosure rate. However, the industry today is facing a different kind of crisis: not enough homes for sale,” Yun wrote just days ago.

5PointsToBoostHousingYunNARMay2018ManufacturedHousingIndustryDailyBusinessNEwsMHproNews

The inventory of homes on the market last year in 2017 was one of the tightest ever. In early 2018, it is even worse. In the first quarter, the number of homes on the market averaged 1.59 million, which is down 8.4% from the same period one year ago,” Yun stated. “Strictly focusing on single-family home listings, this is the lowest inventory since the tracking of the data from the early 1980s.”

GoodEconomyJobUnempoyemntHighStockHighNetWorthWagesRisingYunNARDailyBusinessNewsMHproNews600

This acute housing inventory shortage has fired up home prices. The median home price has risen by 40% in the past five years and is still rising strongly, with a 6% annualized gain in March. Such a rapid gain in home values at a time when wages are rising by only 2% to 3% a year is measurably cutting into affordability. With the Federal Reserve set to raise its short-term interest rates several more rounds over the next two years and unwind some of its prior asset purchases, longer-term interest rates, including that of mortgages, will surely rise and hence further hamper affordability,” the NAR economist stated.

HomePriceExpectationYunNARMay2018ManufactuerdHousingIndustryDailyBusnessNewsMHProNews600

Interestingly, though, home-buying demand remains super-robust. The steady build-up in household formations following the recession continues. Many of the new households have not purchased a home, as evidenced by the still historically low homeownership rate,” Yun explained, adding, “Pent-up housing demand, therefore, is large.”

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Not New, but Important to MHVille

The Daily Business News has reported on Yun’s keen real estate and housing insights for years.

His previously published statements include the quote below, where he says that builders must get busy to get beyond the current housing crunch.

This ought to be a no-brainer for factory-built housing professionals.  But due to years of several different internal industry issues, coupled with regulatory challenges, and public perceptions, manufactured housing has been kept at historically low ebb.

Now, emerging technology could be poised to supplant modular and some of the potential output of manufactured housing industry professionals (see related reports, further below.)

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

For newcomers to the website not familiar with modern manufactured homes, learn more by clicking the image above or the link here.

The realities undercut some of the logic that the Manufactured Housing Institute (MHI) Ducker Worldwide concepts have called for, and their so-called “new class” of manufactured homes.

The image issues from an ongoing series of largely unrebutted industry issues rounds out the problems faced by manufactured housing.

Part of the opportunity-in-disguise must be the investment by industry pros at the location level of the time, talent, and treasure to tap the opportunities provided by an 8.3 million affordable housing units needed.

Another element of the solution ought to be the establishment of new, post-production representation of the independent companies of the industry.

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

What arguably won’t work is more of the same.  The status quo on a range of issues has led the industry’s homes to the status of 3rd, 4th or 5th choice housing for millions.  When the industry’s quality is better than its ever been, it is incongruous.

Yun’s recent presentation of 2018 housing data, from which the slides above are taken, is found at the download linked here. “We Provide, You Decide.” © ## (News, analysis, and expert commentary.)

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

Related Reports:

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GSE Asked: Will Manufactured Housing Overtake Conventional Homebuilding?

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Code of Conduct – Good or Bad News, and Home Selling – Monday Morning Manufactured Housing Sales, Marketing Meeting

Emerging Building, Construction Technologies Poised to Disrupt Housing, Developing, and More

Survey Top 2017 PreFab, Modular, Tiny and 3D Printed Housing News Stories

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

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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.

 

Manufactured Housing – “Giants vs. Independents” – Tunica Talk – “You’ve Got to See This”

March 22nd, 2018 Comments off

ManufacturedHousingGiantsVsIndependentsTunicaManufacturedHousingShow2018TamasKovach

An independent manufactured home retailer walked up to the Daily Business News team in Tunica Wednesday to say, thank you” for the depth of coverage of the industry’s news.

A HUD Code home producer said, “I wish you’d tone it down a bit,” on the controversies, while expressing “appreciation for the unrivaled coverage of industry events not found anywhere else” in the manufactured home industry’s trade media.

Another independent retailer and his family approached the MHProNews squad during the lunchtime hospitality. He wanted to give his family and team members a chance to discuss what’s been taking place on finance related issues, such as the Government Sponsored Enterprises (GSEs) Duty to Serve (DTS).

TunicaManufacturedHousingShow2018-550

A long-time Manufactured Housing Institute (MHI) member said, “you [MHProNews] were right about HUD, Pam Danner, and Lois Starkey,” but took exception to the controversy surrounding the so-called “new class” of manufactured homes that MHI is promoting.

TunicaShow2018ManufacturedHousingIndustryDailyBusinessNewsMHProNews

Meanwhile, a veteran factory-built housing professional that had previously been “open minded” about MHI’s project for a “new class” of manufactured homes has after reading and doing his own research, turned against the plan (see Related Reports, linked below, for more details about these hot topics, plus more from the 2018 Tunica Show).

Rephrasing, the comments and reactions to the industry’s issues have run the gamut. From management team members in the industry’s biggest companies, to mom and pop operations and all others in between, the data and engagement reflects the pragmatic respect given to this MH Industry trade media resource.

FlatscreenTVBehindBarnDoorsTunicaManufacturedHousingShow2018DiningArea550

We are not wearing bold branded t-shirts, ball-caps or neon signs in Tunica. Part of what’s noteworthy is that lacking any identification of MHProNews other than the Tunica Show’s badge – which the wind routinely whips around – many professionals are eager to engage and express their views to the manufactured housing industry’s most popular and independent trade news.

IslandKitchensDailyBusinessNewsMHProNewsTunicaManufacturedHousingShow2018

 

You’ve Got to Read This…”

Walking through a display model for a new HUD Code producer, a retailer and his colleague from Texas engaged with us. “I used to forward your news emails to” his partner, with the message – “You’ve got to read this.”  Then he shared later email news updates, saying, “You’ve got to see this and read this one too.” That went on for some time, until his colleague signed up for his own email news.

TunicaManufacturedHousingShow2018FranklinHomesNTechIndustriesDailyBusinessNewsMHProNews

That same Texan said “We’re giving the giants a run for their money” in his market area.

They were looking for a non-Clayton producer to buy new homes from. “Why?” was our question. “Because of the issues raised in stories you’re reporting on, like the long-lead times” post-Harvey in Texas.

FranklinHomesTunicaManufacturedHousingShow2018DailyBusinessNewsMHProNews

You sure do keep it stirred up,” opined a straight-faced industry professional, who paused – adding “keep it up – followed by a slight smile.

Tony, I read every emailed news update, from top to bottom” said another retailer, with exhibitors and community professionals often saying something similar.

TamasKovachKidsRoomManufacturedHousingIndustryDailyBusinessNewsMHProNewsCappaert

 

Upbeat, But Aware…

Attendance is up slightly over last year, say show sources.

CappaertManufacturedHousingDailyBusinessNewsMHProNews

Independent producers are becoming more aware than ever of the trajectory of the industry, the causes of that trend, and are taking steps to address it, say industry sources.

Rain on Tuesday didn’t dampen traffic in the display homes, said several manufacturing exhibitors.  Wednesday was windy, but warmer and sunny.  Traffic in the homes was brisk.

DisplayModelTunicaManufacturedHousingShowTamasKovachAttendeeDailyBusinessNewsMHProNews

Tamas Kovach (pronounced like “TahMash CoVatch), is part of the MHProNews MHLivingNews family, with a Tunica Show attendee. Numerous such photos are taken during the course of the event.

The mood of attendees has been overall upbeat, association executives, and exhibitors told the Daily Business News. Comments from attendees made directly to the MHProNews confirmed those observations.

We’re more upbeat about the industry in some ways, but we are also more aware of the trajectory of the industry toward consolidation,” said an attendee.  “Those who don’t plan according to reality are in denial.”

HamiltonHomesNewHUDCodeManufacturedHomeBuilderTunicaShow2018DailyBusinessNewsMHProNews

 

Everyone Knows Your Name…

As one attendee said after another industry mom and pop couple stopped us to say hi, “It’s like a line out of the TV comedy, Cheers – where everyone knows your name.

PaulNationDailyBusinessNewsMHProNewsTunicaShow2018

Stopping to chat with industry professionals in Tunica, happy to have their photos shared.

Your son is getting taller, and stronger” said one after getting a hand-shake from Tamas Kovach.

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KabcoManufacturedHomes2018TunicaShowDailyBusinessNewsMHProNews

The industry’s professionals “are hungry for real news, not happy talk” explained a factory-producer.

ChetMurhpreeDeerValleyHomesTunicaShow2018ManufacturedHousingIndustryDailyBusienssNewsMHProNews

Note: the photos are randomly placed, and should not be construed to match the commentary.

One attendee pointed to stacks of a new trade publication in high-visibility racks near the exhibit hall.  They appeared to be untouched.  “It’s not ‘rah rah’ that will help a company navigate the challenging waters of the industry,” said an exhibitor.

MHInsiderMagazineManufacturedHousingIndustryDailyBusinessNewsMHProNews

There are several websites and trade media that are de facto surrogates for MHI ‘news,’ per industry sources.  Those media routinely have far less engagement from the industry than what readers say is our “hard-hitting coverage on issues that matter to investors and professionals.” The proof is shown dramatically in images like the above. Racks like this posted near the entrance of the exhibit hall looked untouched, with every glossy magazine going unread. MH professional readers vote with their time, browsers and engagement – or lack of engagement.

The feedback in many ways confirms what calls and messages to MHProNews between events likewise reflects.

TinyHomesLegacyManufacturedHOusingIndsutryDailyBusinessNewsMHProNews

Naturally, not everyone agrees with everything that is spotlighted by our pro-industry publications. But reader feedback, along with analytical data, reflects the dominance of MHProNews over other trade mediaCandid, fact-base reports and analysis are reasons routinely cited by pros.

SunshineHomesRedBayALManufacturedHousingIndustryDailyBuisnessNewsMHProNews

The quality and appeal of today’s manufactured homes continues to rise. While prices are going up, so too are costs for conventional housing, so the percentage savings for a consumer buying a manufactured home vs. conventional housing remains favorable and strong. A rep from Fannie Mae told MHProNews that as a newcomer to the industry’s product, he is impressed with the quality and value. 

SunshineHomesRedBayALManufacturedHousingINdustryDailyBusinessNewsMHProNewsTunica2018

A post-Tunica report will be coming soon, which will break new ground on issues ranging from:

  • manufactured home lending,
  • association related,
  • new class of homes,
  • ongoing “consolidation” of the industry – and possible steps to address that challenge,
  • HUD and regulators at all levels,
  • marketing, sales, and image related issues, plus more.

SunshineHomesRedBayALManufacturedHousingIndustryDailyBusinessNewsMHProNewsTunica2018Show

It’s part of manufactured housing’s leading Industry News, Tips and Views Pros Can Use.” ©

The Tunica Show in 2018 has thus far confirmed what the Louisville Show did earlier this year. With the affordable housing crisis raging, how is it possible that the manufactured home industry sunk to such a low ebb?  Why are HUD Code manufactured homes  only rising slowly from it’s bottom in 2009?

It was summed up late last year by an industry executive, who said. “Tony, if MHProNews is writing about it, I want to know about it.” ## (News, analysis and commentary.)

Related:

DUTYtoServePaulBarrettoFannieMaeManufacturedHousingIndustryDailyBusinessNewsMHProNews550

Finance related news was made Tuesday in Tunica, click the image above or the link here to learn more.

Tunica Manufactured Housing Show, Photo Report, Day One

Tunica, Nashville Trade Shows and Manufactured Housing Glory Days

Manufactured Housing Association for Regulatory Reform Demands Clarification on “New Class” of HUD Code Manufactured Home

4 F’s and True Believers

4 Concerns of Homebuilders Have Impacting Every American

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

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award-winning consulting, publisher, web, video, recruiting, sales training, business development service provider.

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

 

Boomers are Zoomers, Kevin Clayton says in latest PR Image Campaign announcement

August 26th, 2014 Comments off

sitting-with-si-robertson-duck-dynasty-kevin-clayton-homes-posted-daily-business-news-mhpronews-com-“Our customer research has revealed to us that this generation wants a home designed for entertaining and hobbies,” Kevin Clayton, CEO of Clayton Homes, says to MHProNews. “In fact, contrary to what some might think, this generation of retirees is very active and social. That is why they are referred to as ‘Zoomers.'”

PRWeb  routinely runs Clayton Homes announcements, such as their sponsorship in racing, tying in with Si Robertson/the Duck Dynasty craze or being America’s largest home builder. The steady stream of public relations releases, social media and YouTube videos produced by Clayton Homes are clearly their ‘private labeled’ industry image campaign.

“We’ve done a lot of research to figure out what Zoomers want and expect in a home,” Clayton said. “We will continue to offer more homes that are designed for the needs of our different generations, so that we will have a home to match any lifestyle.”

The Zoomer focused Clayton Homes Holland model reflects features Clayton believes will appeal to boomers, including a bragging wall, handy but hidden entertainment, hobby area and accessible laundry.

As regular MHProNews  readers know, Berkshire-Hathaway owned Clayton Homes has roughly 50% of the market share of new HUD Code manufactured home building. ##

(Editor’s note: Insights into Kevin Clayton’s history with Clayton Homes are found in this exclusive video interview with Jim Clayton, linked here.)

(Photo credit of Si Robertson and Kevn Clayton: Clayton Homes)

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.)

NBC News Today Show report shows Manufactured Home did as well as Conventional On-site Construction in hurricane high winds test

July 23rd, 2014 Comments off

homes-vs-hurricane12-winds-test-credit=nbc-today-show-posted-mastheadblog-mhpronews-com-Regarding this previous portion of the test, IBHS indicated: “When one of these high wind-rated HUD-Code homes is installed on a permanent foundation, in most of the country, it would end up resisting wind storms better than surrounding site-built homes.”

So stated a MHI President and CEO, Richard “Dick” Jennison in a longer report to MHProNews. While part of the test was to show how superior a Wind Zone III home is to a standard HUD Code manufactured home in durability, Jennison said: the director of the IBHS (Julie Rochman, President) told the crowd how impressed she was at the performance of the Zone I home itself.”

MHProNews has been told that we will have additional information in the days ahead. More information on the specifics including stills and the video are found at this link, and a pre-broadcast report that provides more information and a related video is linked here. ##

(Image credit: NBC News Today Show)

Local official surprised by Attorney General’s suit against modular developer

September 30th, 2011 Comments off

Michael Delaney New Hampshire's Attorney General -credit DOJ-NH-GOVLaconiaDailySun reports on ‘surprise’ legal action by New Hampshire’s Attorney General Michael Delaney’s Office. In a follow up to the story covered earlier this week in MHProNews.com, Shanna Saunders said the city code enforcement office had been working with the developer and home owners to resolve some complains, but never expected the NH AG’s office to file suit. “I knew people were coming to the office and looking at their files,” Saunders said. Saunders explained the Villa at Paugus Woods was originally approved by the city planning board in 2006 as a cluster subdivision for a U.S. Department of Housing Urban Development (HUD) Code single-family manufactured homes. “I think when this was approved these had HUD stamped on it,” she said, noting that manufactured housing are built to federal HUD Code standards for manufactured housing and doesn’t required local inspections except for site work, like roads, drainage and the sewer systems and hookups to services like electricity, water and sewage. At some point, the project apparently changed from HUD Code manufactured housing to modular home construction. Former city contract code enforcement officer Jim Van Valkenburgh explained modular home ares engineered and built in factories and the design engineers and subcontractors are the ones responsible for design defects. “Each modular house also has a manufacturer’s sticker number with an identification number on the outside,” he said. “This means it was acceptable to our department of safety,” Van Valkenburgh said. He said that as the contracted code enforcement officer, all inspections were made as mandated by Laconia’s adopted International Residential Code of 2006, so he disagrees with the allegations in Delaney’s lawsuit that says life-safety issues are compromised. “I would not sign a certificate of occupancy without it meeting the minimum code standards of the residential building code,” he wrote. Brady Sullivan with the Villa at Paugus Woods development stated that he had cooperated with officials and that they would be vindicated.

(Photo credit: NH-DOJ)

 

i-House Net Zero Utilities draws eco-positive attention

August 12th, 2011 Comments off

ihouse Clayton Green-Bridge-Farm-Chevy-Volt-posted on Manufactured Home Marketing Sales Management MHMSM.com MHProNews.com JetsonGreen reports the completion of another i-House in eco-friendly Green Bridge Farm. The 25 lot subdivision is located in Effingham County, GA. The owner, Charles Davis, doesn’t expect to have an electric bill because the home has a butterfly roof with solar panels. The home is generating enough electricity to also power the owner’s Chevy Volt. The i-House is built by Berkshire Hathaway’s Clayton Homes, which has garnered considerable media coverage for this factory built home due to its green design features.  For example, TreeHugger has praised the modular/prefab design, while encouraging a HUD Code design version of the home.  TreeHugger notes that eco-friendly developments such as Green Bridge Farms is a positive option for the placement of the i-House.

(photo credit: JetsonGreen)