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8 Months of Declining Year-Over-Year HUD Code Manufactured Home Production – When Will Manufactured Housing Institute Act?

June 4th, 2019 No comments

 

8MonthsDecliningYearOverYearHUDCodeManufacturedHomeProductionWhenWillManufacturedHousingInstituteActDailyBusinessNewsMHProNews

Monday afternoon 6.3.2019 at about 5 PM ET, near the manufactured home display on the National Mall. Where are the crowds?

The release below is from the Manufactured Housing Association for Regulatory Reform (MHARR), and they were charitable in not mentioning the Manufactured Housing Institute (MHI).

 

Following the MHARR release there will be a brief analysis and some linked information.

 

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HUD CODE PRODUCTION DECLINE CONTINUES BUT MODERATES

 

Washington, D.C., June 3, 2019 – 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 HUD Code manufactured home production declined again in April 2019, albeit at a moderating pace. Just-released statistics indicate that HUD Code manufacturers produced 7,993 homes in April 2019, down 3.2% from the 8,262 homes produced in April 2018. Cumulative industry production for 2019 now totals 30,352 homes, a decline of 10.1% from the 33,793 HUD Code homes produced over the same period in 2018.

While the production statistics for April 2019 show a moderation in the double-digit production decline that has thus far characterized 2019, the fact that there is any production decline at all in the face of continuing strong demand for affordable housing and homeownership highlights the failure of Fannie Mae and Freddie Mac – thus far – to implement the Duty to Serve Underserved Markets (DTS), particularly with respect to the personal property loans which account for nearly 80% of the manufactured housing consumer finance market. That failure, more than a decade after the enactment of DTS, effectively forces consumers into higher-rate loans that cost more than would be the case if there was, in fact, proper, market-significant DTS securitization and secondary market support, which would lower risks for lenders and promote greater competition within the HUD Code consumer finance market.  This, in turn, needlessly excludes potential buyers from the HUD Code market altogether, while making it more difficult for others to finance the purchase of a HUD Code home, both of which suppress overall market volume.  As more and more questions are being raised in Washington, D.C. by the press, government figures and others regarding such issues, it is becoming increasingly apparent that this matter can, should and must be looked-into further.

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 2019  — with cumulative, monthly, current year (2019) and prior year (2018) shipments per category as indicated — are:

ManufacturedHousingAssocRegulatoryReformMHARRApril2019ProductionShipmentReportDailyBUsinessNewsMHproNews

The latest information for April 2019 results in no changes to the cumulative shipments list.

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.

— 30 —

 

There has been some positive mainstream media coverage of the Innovation’s in Housing event on the National Mall in Washington, D.C., But it is clearly evident from the photo at the top that the Manufactured Housing Institute, which is the industry’s umbrella or post-production association, has done a terrible job of promoting this rare opportunity.

 

HUDSecretaryBenCarsonAddresstoManufacturedHousingIndustryManufacturedHousingInstituteLogoMHIlogoMHIwebsiteSearchMHProNews2019-06-03_0844

MHI put a notice on their fly-in page on 5.30.2019, but that’s targeted for MHI members, not the general public. Where is their vaunted promotion of the industry? Recall their claim late last year?

ManufacturedHousingInstituteMarketingDailyBusinessNewsMHProNews

Pinocchio’s nose shows as it grows.

Secretary Carson seems to be doing more than any HUD Secretary in the last 2 decades. But MHI’s part of the effort is arguably badly lacking.

There will be more insights on this problematic but revealing MHI handling of this event in the days ahead, so stay tuned.

This is your 2nd 6.4.2019 installment of manufactured home “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Census, HUD Official Residential Construction Report for April 2019, Dare to Compare to Manufactured Housing Data

National Association of Home Builders Co-Hosting HUD Innovative Housing Showcase

MHARR Weighs in, HUD Secretary Carson Letter – “Discriminatory…Exclusionary Zoning of HUD-Regulated Manufactured Homes”

https://manufacturedhousingassociationregulatoryreform.org/lead-follow-or-get-out-of-the-way/

https://manufacturedhousingassociationregulatoryreform.org/mharr-releases-study-recommending-independent-collective-representation-for-post-production-sector/

 

Cowards, How Winning Is Done, and Manufactured Housing

 

 

 

 

 

 

 

New 2019 U.S. Housing Infographic with Manufactured Home Data Points

February 2nd, 2019 Comments off

 

New2019USHousingInfographicWithHUDCodeManufacturedHomeDataPointsDailyBusinessNewsMHProNews

Image and text designs, MHProNews.

This Saturday morning’s data points will be simple, yet profound.  The Daily Business News on MHProNews begins with the current estimated totals for all U.S. Housing sales for 2018.

 

The total dollar volumes for the chart below uses data collected on 1.31.2019, from the sources as noted.

 

ManufacturedHomeTotalsin1.6TrillionDollarUSHousingIndustry2018-Feb22019

 

Regular MHProNews readers may recall our Daily Business News report that noted Jeff Bezos led Amazon Alexa Fund’s estimate last year that the total potential market for new U.S. prefab housing could be about $330 billion dollars a year.  But the estimated pace for manufactured homes for all of 2018 was only $7.89 billion?

 

That’s opportunity in disguise.  Here’s just one reason why.  The next chart reflects the Census Bureau data from July, that used February 2018 figures. In an affordable housing crisis struck nation that needs over 8 million housing units, per the National Association of Realtors, only factory building can close that gap rapidly enough.  The facts below are just one reason why far more buyers could be won over to modern manufactured homes.

 

 

Americans are demonstrably skeptical about manufactured homes. It is obvious that what’s being done now is not effective enough.  That’s why new as well as proven ways of ‘breaking through’ the confusion with facts and evidence must be used. 

 

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

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

 

Proven internal and external educational efforts are part of what’s needed.  Because as useful as videos, 3D tech, pretty photos, and sharp websites are, those have been around in MHVille for years.  The needle is barely moving in some states, and is going backwards in others. Facts are what they are.

 

IfPrettyPicturesVideosAloneWereEnoughMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews1

 

What These Facts Suggest

What these data points suggest is just how immense the opportunity is for manufactured homes in 2019 and beyond.  MHProNews has preached that market potential for years.  It has sadly only been more recently that others have begun to corrobrate what should have be obvious.

Manufactured home sales are demonstrably underperforming.  Last night’s latest job numbers from the Bureau of Labor Statistics (BLS) demonstrate that the labor market is growing. Manufacturing in America, once deemed dead by some political leaders just two years ago, is coming back to life. Construction is growing.  The economy is strong, despite some trying to talk it down for political reasons.

While much of the nation is roaring, it is manufactured housing that is snoring.

 

 

Why is the manufactured housing industry struggling so?

 

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

The facts are troubling, but also spell opportunity in disguise. But it will require work, and changes. It is obvious that more of the same will only bring more of the same.

 

Will the industry turn to the so-called leaders that have led and kept the industry at this low point for well over a decade?

 

average-shipment-per-decade-manufactured-home-posted-on-mhpronews-com-d

Graphic provided by Ross Kinzler, former executive director of the Wisconsin Housing Alliance (WHA).

 

Day by day, we get tips from readers that often explain the troubling reasons why manufactured housing is struggling.

 

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To understand the issues – cause and effects – more clearly, see the related reports, linked further below the by lines and notices.  Some of those reports – ICYMI – are new and ‘read hot.’

 

CaseyMackLegacyHousingManufacturedTinyHomesKudosMHProNews

 

That’s your rousing wake up call. Let the facts inspire you to yearn for more. That’s MH “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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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.

 

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MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

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

 

“The Illusion of Motion Versus Real-World Challenges”

MHARR Releases Study Recommending Independent Collective Representation for Post-Production Sector

 

 

 

 

 

 

 

 

 

HUD Code Manufactured Home Shipments, Housing Production – March 2018 Data

May 3rd, 2018 Comments off

HUDCodeManufacturedHousingNewHomeShipmentsMarch2018StatisticsDataDailyBusinessNewsMHProNews

The Manufactured Housing Association for Regulatory Reform (MHARR) reports that official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), year-over-year manufactured housing industry production grew again in March 2018.

 

Just-released statistics indicate that HUD Code manufacturers produced 8,830 homes in March 2018, a 7% increase over the 8,245 HUD Code homes produced during March 2017,” said MHARR in a release to the Daily Business News.  “Cumulative industry production for 2018 now totals 25,531 homes, a 9.1% increase over the 23,384 HUD Code homes produced over the same period in 2017.”

MHARR said that, “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 March 2018 — with cumulative, monthly, current year (2018) and prior year (2017) shipments per category as indicated — are:”

March2018HUDCodeManufacturedHousingShipmentDataTopTenStatesDailyBusinessNewsMHProNews

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. ## (News, analysis, and commentary.)

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Juliet Eilperin’s Washington Post HUD Manufactured Home Program News Confirms Manufactured Housing Institute Position and Report

May 2nd, 2018 Comments off

JulietEilperinWashingtonPostManufacturedHousingIndustryDailyBsuinessNewsMHProNews

The [association] efforts have come as [Trump] administration officials are embracing manufactured homes as a way to increase the stocks of affordable housing using the private sector rather than taxpayer funding,” writes Juliet Eilperin, for the Washington Post (WaPo).

 

Already, they [manufactured homes] serve as the largest source of unsubsidized affordable housing in America, with 22 million Americans living in structures ranging from trailers [*] to high-end homes with ample amenities,” Eilperin said.

Juliet Eilperin is The Washington Post’s senior national affairs correspondent, covering how the new administration is transforming a range of U.S. policies and the federal government itself,” reads her brief WaPo bio. “She is the author of two books — one on sharks and another on Congress, not to be confused with each other — and has worked for The Post since 1998.”

The Washington Post is owned by Jeff Bezos, the world’s richest man, according to Forbes. Billionaires Bezos and President Donald J. Trump have been sparring over issues related to giant Amazon, which Bezos founded. Their politics differ too.

For most of its existence, the Office of Manufactured Housing has been an unassuming office within a federal department not known for its glitz and glamour,” said Eilperin.

But the little-known agency in the Department of Housing and Urban Development has been thrust into the spotlight as trade groups mount an unusually intense lobbying effort, seeking to scale back regulations that they say are hampering an industry that could provide a market-based solution to the affordable housing crisis,” said her insightful WaPo narrative.

That the Trump Administration would be party to such an amazingly ill-considered, offensive and arguably scandalous action ... is directly contrary to president trump’s own pledge to ‘drain the swamp’ in Washington D.C.,” wrote Mark Weiss, president of the Manufactured Housing Association for Regulatory Reform, in a July 27 letter [2017], which was unusually harsh even by Washington standards,” the narrative continued, revealing part of the backstory, as to which association did what in the drama that took place at HUD last year.

Within a few months, Office of Manufactured Housing Programs Administrator Pamela Beck Danner had been reassigned, and the woman she had hired, Lois Starkey, had been terminated,” Eilperin said.

Lesli Gooch, vice president of government affairs and chief lobbyist for the institute, said in an interview...[that] her association [the Manufactured Housing Institute, or MHI] did not weigh in on Danner’s reassignment, preferring to push for a broader reorganization.”

 

First Takeaways from the Washington Post MH Report

Eilperin has arguably done thousands of manufactured housing industry professionals, and potentially millions of Americans, several significant favors through her tightly-written narrative.

Among them? Eilperin confirmed the following:

  • Lesli Gooch admits that MHI did not try to get Pam Danner removed from her destructive role as administrator over the HUD Code manufactured housing program office. Put multiple stars next to that revelation, and keep in mind that HUD Secretary Ben Carson called the regulations “ridiculous.”
  • Between the two national associations, the Manufactured Housing Association for Regulatory Reform (MHARR) was credited for their part in having Danner removed from her ‘leadership’ as the administrator of the HUD Code Manufactured Housing Program Office.
  • The above portion of the WaPo story confirms months of reports by MHProNews. Specifically, that in spite of the call by numerous manufactured home industry pros, MHI’s own chief lobbyist admitted to the mainstream media that they did not attempt to have Danner removed.
  • Rephrasing, MHI was tacitly abetting Danner’s stay at HUD’s MH program office. Where was the logic in that for the majority of the manufactured housing industry? Over 17 years of experience since the passage of the Manufactured Housing Improvement Act of 2000 should have made it clear that the administrator of the program can implement, or foil, the intent of the law. Don’t MHI staffers know that history? Isn’t that self-evident logic, even absent that history?
  • MHI was clearly going against the wishes of the majority of the industry, which wanted to see Danner removed, see one of several examples of that in a report, linked here.

 

MHI and MHARR, Follow Ups

MHI has been asked to confirm, comment on, or clarify this Washington Post report. They have not yet done so as of this time.

MHARR issued a clarifying statement to their members and the industry in a release to the Daily Business News, after the online version if the WaPo report was published. That MHARR memo is linked below.

Washington Post “Once obscure office at HUD [Manufactured Housing] is the subject of unusually intense lobbying effort”

 

Bottom Lines, and What’s Ahead as a result of this WaPo MH report?

More will follow in the days ahead as the Daily Business News unpacks numerous revelations found in Eilperin’s insightful mainstream media reporting.

Keep in mind that the Washington Post just confirmed what some thought to be MHProNews’ controversial reports in 2017.  The WaPo report vindicates MHProNews, which MHI operatives and surrogates have allegedly sought to undermine. Indeed, the revelations above arguably suggest why MHI has sought to undermine this pro-industry trade news operation.

The facts matter to industry professionals and investors. MHProNews strives to be evidence and fact based, regarding HUD, MHI, or any other topic.  That’s MH “Industry News, Tips, and Views Pros Can Use.” ©  ## (News, analysis and commentary.)

AdvocatingEffectivelyForManufacturedHousingInToday'sWashingtonMHInsiderManufactruredHousingInstituteLogoJulietEilperinWaPoIndustryDailyBusinessNewsMHProNews

[* The use of the word “trailers” here by Eilperin was inappropriate, see the graphic below, or to learn more, click here.]

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Evergreen, Manufactured Homes and NIMBY, “Why the Feds Must Step In”

April 12th, 2018 Comments off
EvergreenMHNimbyWhyTheFedsMustStepInmanufacturedHousingIndustryDailyBusinessNewsMHProNews

Residents packed a meeting room to discuss – or oppose – a planned manufactured home community near their neighborhood.

A HUD PD&R, and other third-party studies reveal that manufactured homes appreciate side-by-side with conventional housing.

 

There’s been no new mobile homes built in the U.S. since June 15, 1976, the date construction on the first HUD Code manufactured homes formally began.

But you may not know those facts if you were one of dozens of residents who piled into a Montana town’s meeting room.

According to NBC Montana, most of those residents where there to protest the development of a new 122 site manufactured community.

A hung jury for the Flathead County Planning Board Wednesday night regarding a controversial mobile home [sic] development on West Evergreen Drive,” per NBC Montana.

SICSicutJournalismDefintionSocietyProfessionalJournalismDailyBusinessNewsMHProNews

The 6 person jury was split, 3 voted against and 3 voted for the proposed West Evergreen Estates subdivision.

More than 70 people turned out for the meeting from the surrounding vicinity to give testimony against it and a decision wasn’t reached until past midnight,” per the NBC affiliate.

Residents gave public comment on how the proposed 122-lot mobile home [sic] park could potentially lower their property values, increase crime in the neighborhood and strain their already congested streets and schools,” wrote Larisa Casillas.

Who’s going to pay for the loss in our property? We already have people who have their homes for sale, and the buyers will say, ‘It’s going to depend on whether the mobile home goes through, otherwise we don’t want your property,’” said Virginia Feiker, an Evergreen resident.

It’s really going to be devastating to all of us what ends up happening,” she added.

Anders’ neighbor Chance Jeschke doesn’t think it’s a good idea. “Neighbors would like to see another type of development built on the vacant lot across from them, but they feel a trailer park may lower their property values,said Casillas.

I was raised in a trailer, I don’t have a stigma against it, but I just don’t know if that’s exactly what we need right here,” said Jeschke, who has lived in his current home for 19 years.

The issue will now go before the County Board of Adjustment on May 1.

 

“…Hasn’t done Jack Sh-t…

A twenty-five year award winning veteran of a well known manufactured home industry operation lamented to the Daily Business News that the industry “hasn’t done Jack Sh-t” to deal with the image issue.

Frank Rolfe, before going silent in the wakes or reported “encouragement” from 21st Mortgage Corp., complained that the Manufactured Housing Institute (MHI), the industry’s self-proclaimed post production association routinely failed to deal with the challenge of bad news, and often ignored positive media reports beyond their own advertorials.

I think that [Richard] Dick Jennison [MHI’s President and CEO] wants to control the narrative with media. He’s afraid to talk to the press, because he knows he can’t control the narrative,” a state association executive told MHProNews

 

Why the Feds Must Step In

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

L. A. “Tony” Kovach, photo by Mark Simon, shows Kovach engaging with SAAs in NY. 

This is the latest sign of a long pattern that costs America an estimated $2 trillion dollars annually in lost productivity,” said published L.A. “Tony” Kovach (see linked YIMBY vs NIMBY, in related reports, linked further below).

Every claim and concern voiced in these videos by locals has a fact-based third-party response that’s been documented on MHLivingNews and MHProNews,” Kovach said. “Call it bigotry or ignorance, but their thinking fits a textbook definition for prejudice. This is why the Feds must step in, just as they did in the 1950s and 1960s on school and racial issues. Access to affordable housing is a right, part of the dream and promise of America.  Which of those residents would want to have their access to ownership denied in a similar fashion?”

 

He pointed out that the homes across the street have roof pitches that looked very much like those found on lower cost, entry-level manufactured homes. The award winning industry professional explained that HUD arguably had the jurisdiction to act in cases like this.

 JackieAndersEvergreenResidentSunshineHomesRedBadAlManufacturedHousingIndustryDailyBusinessNewsMHProNews

But beyond legal force, there ought to be a sustained educational effort. “Understanding that this costs them money not to do it, plus denies honest economic development, there are many reasons to do this kind of project.”

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Homes like those shown would enhance the neighborhood in Evergreen, where a proposed community of 122 sites is being debated.

Manufactured home professionals are routinely honorable people. Manufactured home residents aren’t criminals whose kids are to be shunned in school. Change the story from NIMBY to race, and these people would be labeled bigots,” he said, adding “But this isn’t about name calling. It’s about action. This will cost their tax base if it isn’t advanced.  It will cost people who need or want a manufactured home an opportunity to build equity. Presuming the developer does what so many want, and execute on this project properly, it would raise their property values.” 

Many benefit if it is done properly, and the very ones protesting, plus many others are the losers if it isn’t advanced,” Kovach said.

 

Where is MHI?

When will MHI routinely begin to act to engage on issues like this one?

When will state and local officials realize that it often costs them money, because they have to create subsidized rental housing?

RevDonaldTyeJrBusinessmanManufacturedHousingAdvocateDailyBusinessNewsMHProNews

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

And when will HUD and federal officials enforce the laws and rulings that could create more economic development and opportunities in towns like this from coast-to-coast? ## (News, analysis, and commentary.)

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

Related Reports:

Manufactured Housing “Top Ten Truths”

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

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

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Which Manufactured Home Producer is the #1 Leader in the Hot Florida Market?

March 12th, 2018 Comments off

WhichManufacturedHomeProducer#1LeaderHotFloridaMarketDailyBusinessNewsMHProNews

It’s not the industry’s giant, Clayton Homes.

 

In fact, Clayton – which leads the nation by a wide margin in manufactured home retail and production – is nevertheless not number one in several individual states.

ManufacturedHomesMarketShareMHIMembersClaytonCavcoChampionDaiyBusinessNewsMHProNews

See related report, “Warren Wages War,” linked here.

The red-hot, sunny Florida housing marketplace is one of them.

According to reports from the Florida Manufactured Housing Association (FMHA), the top seller of both manufactured and modular homes in the state – based upon floor dues – is the independent producer, Jacobsen Homes.

JacobsenFloridaLeadingManufacturedHomeBu8ilderDailyBusinessNewsMHProNews

The rest of the field is as shown.

JacobsenFloridaLeadingModularHomeBu8ilderDailyBusinessNewsMHProNews

But note that per the FMHA data reported by Jacobsen, more than one company outsells Clayton in Florida.

It’s a reminder to those in or considering entry into HUD code manufactured housing that the Berkshire Hathaway owned industry leader  isn’t all-powerful.

Not just in Florida, but in other markets too, Clayton are being outperformed in a variety of locations across in the U.S. More on this topic in the days ahead, stay tuned.

New Manufactured Housing Production Results Report for January 2018

To see the top ten states in HUD Code manufactured housing production, click the linked report, above.  “We Provide, You Decide.” ©   ## (News, analysis, and commentary.)

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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.

MHProNews is the most read publication in manufactured housing.

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Pamela Beck Danner, JD – Current HUD Manufactured Housing Program Director – Video from Supporters

November 13th, 2017 Comments off

PamelaBeckTrusteeLeadershipAwardDailyBuisnessNewsMHProNews720It was 5 years before there was a slogan for the Democratic Party’s nominee, “I’m with Her.”

But it’s a slogan that Pamela Beck Danner, JD, could have used to promote her own prior contest, which was spotlighted in this campaign video made by her backers.

MHProNews editorially has spotlighted for some 2 years (+/-) the need to see Ms. Danner replaced as the administrator for the HUD Code manufactured home program.

That call for Danner’s replacement at HUD recently seemed to get a high visibility boost.  More on that story’s update, linked below.

Andy Gallagher, “Ousting” Pam Danner, MHI, Clayton’s RVP, WVHI – “Transparency”

 

MHProNews has given Ms. Danner an opportunity to respond, which has not yet been accepted.

We believe in ‘fair and balanced’ coverage.

So when someone doesn’t speak up for themselves – as a ‘next best thing,’ posting this flashback video by Danner’s supporters, while not related whatsoever to her current role at HUD – gives readers a sense that she is personally liked by many.  That includes manufactured home industry professionals, a number of whom nevertheless want to see her be replaced at HUD (see the linked article, above).

MHProNews has previously reported before her deep ties to Democratic politics, just as we did Lesli Gooch’s ties to GOP politics.  “We Provide, You Decide.” © ## (News, events, analysis, commentary.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

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

 

Secretive “NEW” Class of Manufactured Housing Raises Serious Concerns

October 11th, 2017 Comments off

SecreativeNewClassManufacturedHomesRaisesConcerns700x491An increasing number of inquiries expressing concern about “secretive discussions within the Manufactured Housing Institute (MHI) regarding “research” and other activity apparently designed to result in the development of a new “class” of manufactured homes,” has been brought to the attention of the Manufactured Housing Association for Regulatory Reform (MHARR).

The concerns include “corresponding changes to existing federal manufactured housing law in order to facilitate the development, delivery and use of such homes,” MHARR tells MHProNews in a release “Intra-MHI discussions concerning this “new class” of homes occurred at MHI’s recent meeting in Orlando, Florida according to participants.”

MHProNews was independently made aware of such MHI discussions by the largest HUD Code factory home builders, which date back roughly a year or so.

Given the long-term de facto domination of MHI by Clayton Homes, Inc. (Clayton) and the parallel domination of the national manufactured housing market (including both home production and consumer financing),” MHARR stated to the Daily Business News, “by that same entity and its finance affiliates (i.e., 21st Mortgage Corporation and Vanderbilt Mortgage Corporation) under the corporate umbrella of Warren Buffet’s Berkshire Hathaway Corporation – and given the unique comprehensive federal regulation of the manufactured housing industry under federal law —  these activities are justifiably a source of serious concern for the broader industry and independent producers of manufactured housing, but, most importantly, for consumers.”

The fact that MHI members are bringing this to the attention of MHARR is noteworthy.

Could such a program by MHI’s larger members result in yet another hurdle that favors larger producers, and creates new burdens on smaller ones?

Would that in turn impact non-major corporate independent retailers, and communities?

As a comprehensively federally-regulated industry, under largely performance-based standards which must balance “reasonable” protection and affordability, the industry, since the advent of federal regulation in the mid-1970’s, has produced thousands of different home models and types, within the relatively liberal size and construction/safety parameters of federal manufactured housing law and the HUD standards, not only for the general public, but for a variety of federal, state and local government needs,” the Washington, D.C. based trade group representing independent producers of HUD Code homes stated.

The performance-based character of these standards, together with their emphasis on affordability, have generally produced – or, more accurately, allowed for – more-or-less robust competition over most of the 40-year history of the federal regulatory program. Thus, the federal standards have inherently and functionally resulted, over the long term, in a fiercely competitive manufactured housing market which has fulfilled the primary policy objective of federal manufactured housing law – i.e., to provide an intrinsically affordable source of housing and home-ownership for all Americans and particularly for lower and moderate-income families,” MHARR stated.

Given the fact that manufactured housing is performance based and flexible – and by law, a preemptive code – what is the possible rationale for such a program?

Further, existing law and regulations also provide for the approval of homes and home designs which either deviate in some respect from the federal standards or include features that require on-site completion,” MHARR said.

ManufacturedHousingAssocRegulatoryReformMHARRologPreservingTheAmericanDreamOfHomeOwnershipThroughRegulatoryReformLogoDailyBusinessNewsMHProNewsAnd while this system has been damaged and abused over the last four years by the current program Administrator and the program’s entrenched, revenue-driven contractor, it still provides a mechanism — within the established system that is and has been open to all manufacturers and all competitors within the industry – for the production and sale of “new” types of manufactured homes and “new” types of manufactured home designs,” their release asserted.

And, needless to say, the current system has been successfully utilized for government purchases of specially-designed homes for many years.  Thus, if anything, the industry should focus – and concentrate its full efforts – on stopping and correcting abuses of the existing system by HUD regulators and contractors, instead of re-inventing the wheel for a “new class” of “manufactured homes.””

MHARR’s concerns are obviously multilayered.

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For example, they said that “Full, free and open competition requires that the ability to create “new” home designs and “new” home types (as broadly allowed by existing law) rest fully with the individual entrepreneurs who comprise the industry, not with secretive combinations of the largest industry manufacturers acting either alone or in conjunction with government regulators who are ethically forbidden from favoring, in any way in their official actions, any individual – or self-restricted group – of regulated parties.”

Put differently, it is up to the free market and individual entrepreneurs and competitors within that free market to create “new” home designs and home “types,” not regulators or special interests within the market acting in concert to the potential detriment of full and open competition as mandated by federal antitrust statutes,” their release to MHProNews said.

MarkWeissManufacturedHousingAssociationForRegulatoryReformMHARRPresidentCEOMHProNews

Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR).

Moreover, given the unique, successful and well-established federal manufactured housing law, which has been in place for nearly a half-century, and which industry competitors would like to have for their own homes, together with the inherent unpredictability of the legislative process, the proponents of this effort should be wary of the famous warning to “be careful what you wish for,””  MHARR reasoned.

Given the importance of a sound federal law to the success and future growth of the industry, and MHARR’s de facto role as guardian of that law for the industry and consumers, MHARR will continue to carefully monitor this and other legislative matters that could have an adverse impact on the law and on the ability of all industry members to compete on a level playing field.” ## (News)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

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

Lois Starkey, Pam Danner, Manufactured Housing Institute, Fire Sprinklers, MHARR Reacts

September 6th, 2017 Comments off
LoisStarkeyManufacturedHousingInstituteHUDCodeManufacturedHomesPamDannerRichardADickJennisonMHProNews

Lois Starkey, left, Richard A Dick Jennison, center, HUD’s Pam Danner, right. Fire sprinkler image credit is as shown, collage credit, MHProNews.com.

Sources in the Washington, D.C. metro area tell MHProNews that one of former Manufactured Housing Institute (MHI) Vice President Lois Starkey’s “pet interests” related to fire sprinklers and their use in manufactured homes.

As the Daily Business News previously reported, Starkey left MHI with no official announcement.

Just a few weeks the head of the manufactured housing program at HUD, Pam Danner, JD, announced that Starkey was joining Danner’s team.

Since her arrival at HUD, the subject of fire sprinklers in manufactured homes has suddenly heated up. Coincidence?

Industry Concerns

Manufactured Home Community (MHC) operators, retailers, and producers are among those who have long opposed the use of such sprinklers in HUD Code homes.  They cite the fact that manufactured homes are already safer than conventional housing, as this linked report and fire safety study detailed.  They also note that sprinklers can be added as an option, instead of forced upon consumers who may not want them.

Communities and retailers point out that due to the added costs, the National Association of Home Builder research documented could “price out” potentially hundreds of thousands of home buyers.

Community operators and retailers also note that sprinklers aren’t practical in many locations nationally. There may not be enough water pressure for sprinklers to do their job properly. In other words, they could be a waste of money.

MHARR Reacts

MarkWeissManufacturedHousingAssociationForRegulatoryReformMHARRPresidentCEOMHProNewsThe Manufactured Housing Association for Regulatory Reform (MHARR) has informed MHProNews in a release about a related issue on federal preemption, fire sprinklers and HUD regulated manufactured housing.

A letter from MHARR President and CEO, Mark Weiss to the Director of Maryland Codes Administration, Norman Wang, expressed their view of that state’s lack of understanding for federal preemption under the “Manufactured Housing Improvement Act (MHIA) of 2000.”

Wang claims that MHIA of 2000 “does not preclude a local government from setting its requirement of fire sprinkler[s] in manufactured homes.”

But the communique from MHARR pointed out that the federal HUD Code is not meant to be looked at as “minimum standards.”

Regulatory overreach issues like these are not often contested by the Department of Housing and Urban Development (HUD). What MHARR and other industry professionals say could be avoided because of federal preemption, is in fact being tacitly if not actively allowed by HUD, they say.

That’s an issue that JD Harper and the Arkansas Manufactured Housing Association have addressed, and which several other state association executives reportedly share too.

LoisStarkeyFormerlyVPManufacturedHousingInstituteRichardADickJennisonPresidentCEOMHIDailyBusinessNewsManufacturedHomeIndustryReportsResearchDataMHProNews

See the report by clicking the image above.

The current management analyst for HUD’s Office of Manufactured Housing, and prior Vice President (VP) of Regulatory Affairs for the Manufactured Housing Institute (MHI) has reportedly pushed for this sprinkler requirement in the past.  That may also explain in part why HUD felt comfortable neglecting to protect federal preemption on this issue.

OverRegulationCreditBradyHomesDailyBusinessNews

Featured image credit, Brady Homes.

HUD is pushing for various new regulations. MHARR and others say oversteps the agency’s mandate, as well as the new policies of the Trump Administration.


For more from the Manufactured Housing Association for Regulatory Reform and their complete release and letter cited above on the issue of fire sprinklers, click here. ## (News, analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for MHProNews.

 

 

“Make MH Great Again” – Marty Lavin Exclusive

August 4th, 2017 Comments off

MakeMHGreatAgainMartyLavinManufacturedHousingIndustryCommentaryDailyBusinessNewsMHproNewsIt could prove to be one of the most controversial, witty, sarcastic, and challenging commentaries of the year about the state of the modestly growing manufactured housing industry.

The title MHI award-winning Marty Lavin has chosen isn’t “Make MH Great Again.” But that’s precisely what his unstated theme is.

Lavin looks at the facts.

He thoughtfully examines the industry’s “business model.”  Step by step, the actively retired veteran unpacks the present in light of the past that brought the industry to this stage.

The attorney and industry expert’s writings have long been of keen interest to investors, the GSEs, thousands of MH professionals, association leaders — and even the industry’s billionaires.

As his classic home in a posh Burlington neighborhood – and the fine three-level custom Italian vessel berthed in Miami reflect, Lavin’s years in the community, retail and finance sides of the manufactured home industry brought him significant success.

His points are not to be taken lightly.

FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

Lavin’s must-read views will be live on the MHProNews home page Sunday night, August 6, 2017.  His commentary will be joined by over 18 featured articles, including several other notable industry professionals.  Don’t miss it. ## (News, commentary, scheduling, announcements.)

Update: Marty’s article is live on the home page, at this link here.

(Image credits are as shown above.)

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