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Insights on Manufactured Housing From Obama White House Federal Archives

June 17th, 2019 Comments off

 

InsightsManufacturedHousingFromObamaWhiteHouseFederalArchivesDailyBusinessNewsMHProNews

There is an affordable housing crisis, as HUD Secretary Ben Carson has been stressing for some time.

 

To fully grasp the value of a bipartisan approach to addressing what has arguably been going wrong with the most proven form of affordable housing in America – manufactured homes – it is relevant to look back.  Snapshots and details from prior handling of manufactured homes paint a picture that professionals, advocates, legislators, and others can consider.

During the Obama Administration, there is a federal archive, dubbed: obamawhitehouse.archives.gov.

From that, the following information has been harvested from the “ExpectMore.gov” pages.

In section 1.3 of the information quoted at length, below, is this: “The [Manufactured Housing Improvement] Act provides that the Federal construction and safety standards for manufactured homes pre-empt all state and local building codes. Therefore, no other Federal, state or local program has any authority in this area.”

That may bear repeating. So let’s do so.

The [Manufactured Housing Improvement] Act provides that the Federal construction and safety standards for manufactured homes pre-empt all state and local building codes. Therefore, no other Federal, state or local program has any authority in this area.”

In that context, consider what the Manufactured Housing Association for Regulatory Reform (MHARR) published in their recent letter to HUD Secretary Carson, found as a download from the link below.

 

MHARRCallsHUDSecretaryCarsonEndDiscriminatoryZoningHUDRegulatedManufacturedHomesCommodoreHomesCorpMHARR

Photo of Commodore Homes model, MHARR logo, are provided under fair use guidelines. See article and letter to Secretary Carson, linked here. https://manufacturedhousingassociationregulatoryreform.org/mharr-calls-on-hud-secretary-to-end-discriminatory-and-exclusionary-zoning-of-hud-regulated-manufactured-homes/

 

But there is much more in this assessment from the Obama Archive that merits consideration.  Numbers of concerns that the public at large has held for years are debunked by the federal findings published below.

One of the topics addressed is resale values.  The FHFA and the National Association of Realtors both published research in 2018 that reflect the appreciation of manufactured homes. Note too that this appreciation is occurring despite the lack of a full and proper implementation of the Duty to Serve Manufactured Housing.

The report that follows is summed up as follows, per that same source.

ExpectMoreGovManufacturedHousingStandardsDailyBusinessNewsMHproNews2019-06-17_1205

Having set the table, let’s dive into Obama Administration archive era federal report.

 

Questions/Answers (Detailed Assessment)

Section 1 – Program Purpose & Design
Number Question Answer Score
1.1 Is the program purpose clear?

Explanation: Yes. By establishing and enforcing uniform Federal construction and safety standards, the program’s purpose is to protect the residents of manufactured homes from personal injury, property damage and insurance costs; to advance the quality, durability, safety and affordability of manufactured homes; and to facilitate the availability of affordable manufactured homes and increase homeownership for all Americans.

Evidence: The purposes of program are set forth in the National Manufactured Housing Construction and Safety Standards Act of 1974 as Amended by the Manufactured Housing Improvement Act of 2000 (The Act).

YES 20%
1.2 Does the program address a specific and existing problem, interest, or need?

Explanation: Prior to the Act, manufactured housing historically had lacked the quality, durability and safety of site-built homes. With the enforcement of uniform Federal safety and construction standards, the quality and safety of manufactured homes has significantly improved. Standardized oversight and inspection of design and construction has also reduced the cost and administration to manufacturers that have a common set of standards.

Evidence: Committee hearing testimony from 1974 documented the numerous safety and quality problems with pre-HUD code homes. Studies by the National Fire Protection Association and HUD showing that civilian fire deaths in HUD units built from 1980 to 1996 were 64% lower than for pre-HUD units. Similar reductions for injuries and property damage were also found. HUD standards also reduced complaints of formaldehyde exposure from 1500 to nearly zero in 1984. Newly published HUD report on Hurricane Charley documenting improved performance of manufactured homes built to the wind standards published in 1994 following Hurricane Andrew.

YES 20%
1.3 Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The Act provides that the Federal construction and safety standards for manufactured homes pre-empt all state and local building codes. Therefore, no other Federal, state or local program has any authority in this area. The Act also provides that individual states may apply to participate in the enforcement of the program as State Administrative Agencies (SAAs).

Evidence: The preemptive nature of the Act and the regulations requiring HUD approval before a state may participate in the enforcement of the Act.

YES 20%
1.4 Is the program design free of major flaws that would limit the program’s effectiveness or efficiency?

Explanation: The program allows HUD to establish national standards for the construction and safety of manufactured homes, and further allows HUD to act in multiple ways to enforce those standards. HUD can receive information indicating that a serious defect or imminent safety hazard may exist in a class of manufactured homes from the monitoring contractor, an SAA or through a consumer complaint. HUD can then act by investigating the information and issuing a preliminary determination, as can its 38 state SAA partners. In the 12 states without an SAA, only HUD may take such action. A potential flaw in the design of the program is the difficulty ensuring that the In Plant Inspection Agents (IPIAs) who are employed by the production plants remain sufficiently independent and report all violations.

Evidence: No recommendations to fundamentally restructure the program have been made during its 29-year existence; however, the Manufactured Housing Improvement Act of 2000 gave HUD additional authority to design installation standards and a dispute resolution program.

YES 20%
1.5 Is the program design effectively targeted so that resources will address the program’s purpose directly and will reach intended beneficiaries?

Explanation: The program has the ability to target program activities and resources to the agencies and program partners demonstrating the greatest problems. For example, a manufacturer and its in-plant primary inspection agency (IPIA) that demonstrates a higher than average number of failures to conform after a HUD-sponsored audit, or an increased number of failures to conform would be subject to “follow-up” audits. ” As part of these audits, an IPIA operating in a plant, receives a second or third auditing visit from the Department’s contractor to ensure the IPIA and the manufacturer have put in place the necessary correction noted in the Department’s first audit.

Evidence: The monthly report provided by the program’s monitoring contractor lists every follow-up and post-production follow-up audit conducted during the previous month. In 2004, there were XX follow-up audits representing approximately xx% of the HUD’s audit resources.

YES 20%
Section 1 – Program Purpose & Design Score 100%

 

Section 2 – Strategic Planning
Number Question Answer Score
2.1 Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The program has two long-term performance measures reflecting the statutory mandates. For protection of consumers and ensuring the safety of manufactured houses, HUD will measure (and aim to reduce) the number of fire deaths in manufactured homes. In addition, to measure the quality of manufactured housing, HUD will measure the re-sale value of manufactured homes. Another long-term measure HUD has adopted is ensuring new Installation and Dispute Resolution programs are adopted.

Evidence: The number of fire deaths is an excellent outcome measure that tells an important story about the safety of manufactured homes. In addition, it can serve as a proxy for how well other standards are being met. Trends in the re-sale value of homes will also provide some indication of the quality and durability of the homes although other factors may influence this number as well.

YES 11%
2.2 Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: Fire death and re-sale value data will be collected every 5-10 years, and ambitious targets have been set for both. For ensuring establishment of the two new programs, the target is to ensure the provision of installation and dispute resolution services by certified firms and individuals in HUD-administered states by 2008.

Evidence: HUD plans to work with the National Fire Protection Association (www.nfpa.org) to get data every 10 years on the number of fire deaths. HUD aims to reduce the number of fire deaths by 50 percent over next 10 years. Re-sale value of manufactured homes will be collected from industry data.

YES 11%
2.3 Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program’s long-term goals?

Explanation: HUD’s annual measures support the program’s long-term goals is to assist the Department in reaching its Strategic Goal to Embrace High Standards of Ethics, Management and Accountability to Ensure Program Compliance by enhancing monitoring and enforcement. HUD is working to develop efficiency measures for their program. They must work to identify administrative costs needed to perform follow-up audits, correct homes, or pursue enforcement cases.

Evidence: Three annual measures are or will be reported: 1. The annual performance measure for protecting consumers is the number of investigations and enforcement cases pursued each year. 2. HUD also measures the number of homes corrected as a result of federal investigations and enforcement actions. 3. HUD recently decided to count the number of plants requiring follow-up audits to measure how well its inspection processes work.

YES 11%
2.4 Does the program have baselines and ambitious targets for its annual measures?

Explanation: HUD sets ambitious targets for each of its three annual measures. They aim to improve performance between 5 and 10 percent each year for each measure.

Evidence: HUD aims to increase the number of enforcement cases and homes corrected as a result of those cases by at least ten percent each year from the baseline of 34 enforcement cases in 2003. The baselines for number of homes corrected and number of plants requiring audits are still being developed.

YES 11%
2.5 Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: In protecting consumers through investigations and enforcement, the program relies on a variety of cooperating parties. Many of the Department’s investigations and enforcement actions stem from the initial investigations undertaken by the 38 state administrative agencies who have cooperative agreements with the federal program, the 17 in-plant primary inspection agencies (IPIAs), and 7 design approval primary inspection agencies (DAPIAs). States and their appointed agencies have worked with HUD program staff to ensure that states develop installation and dispute resolution program regulations to allow the maximum number of states to administer their own programs. HUD will continue to work with stakeholders on new measures adopted.

Evidence: The Department also works in cooperation with the other federal agencies to identify potential non-compliance, and in initiating investigations and enforcement by the Department. HUD also partners with the National Fire Protection Association. To ensure establishment of the two new programs in all states, federal program staff have worked with the following states in the state efforts to put in place the necessary elements to administer state installation and/or dispute resolution programs by January 2006: DE, GA, ID, IA, IN, KS, LA, NY, OH, OK, PA, TN, WA, and WI. HUD has also shared information with the two national industry groups, the 0Manufactured Housing Institute (MHI) and the Manufactured Housing Association for Regulatory Reform (MHARR), assisting them in their efforts to encourage and assist states to establish state-based manufactured housing installation and dispute resolution programs.

YES 11%
2.6 Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: Prior to undertaking most construction and safety standards revisions of a substantial nature, the Department undertakes independent research to support the program improvements. The program has relied on a variety of independent evaluations to support program improvements and evaluate effectiveness and relevance to the program area. However, most evaluations to date have focused on specific aspects of safety standards rather than the program as a whole. HUD next plans to work with PD&R to develop a comprehensive study that examines the entire program offices’ effectiveness.

Evidence: Examples of recent research include a March 2005 report from the Institute for Building Technology and Safety entitled “An Assessment of Damage to Manufactured Homes Caused by Hurricane Charley.” Fire research also supported the Smoke Alarm Rule in 2002, the final rule for formaldehyde emissions published in 1984, the upgraded wind requirements in the final rule published in 1994, and the upgraded energy requirements final rule published in 1993. Independent evaluation of fire losses in manufactured homes identified trends supporting the actions taken in the final rule. In 1998-1999 the Department commissioned the National Institute of Standards and Technology to evaluate the adequacy and reliability of the current requirements for smoke alarms, which had been in the federal manufactured home construction and safety standards since 1976.

YES 11%
2.7 Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program’s budget?

Explanation: The level of appropriations is key to the Department’s oversight and auditing of the design approval primary inspection agencies. With reduced appropriation, the federal manufactured housing program would reduce its oversight of these three groups, providing increased opportunity for poor performance by manufacturers, and an increased number of failures to conform in completed homes.

Evidence: The Office of Manufactured Housing Programs outlines its budget justifications as required by OMB, with a Performance Measurement Table and the Performance Indicator outlined in the Annual Performance Plan. Appropriated funds are provided in that format. The 2005 Congressional Justification is provided as required by the Department. In the FY 2005 justification, the cost categories totaled the requested amount for the appropriation of $13 million and are broken out into the following categories: Payments to states; Salaries; Contract for monitoring primary inspection agencies and states; Contract for consensus committee administering organization; Other contracts; Contract for installation inspection and enforcement; and Contract for dispute resolution enforcement.

YES 11%
2.8 Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The Office of Manufactured Housing and Standards conducts annual, monthly, and weekly meetings that identify deficiencies and ensure achievement of long-term goals.

Evidence: The Office of Manufactured Housing and Standards conducts an annual strategic planning meeting, followed by monthly meetings with staff and the contractor responsible for sustaining compliance of homes to the construction and safety standards; monthly meetings with staff and the Administering Organization contractor responsible for maximizing cooperation with the MHCC; weekly meetings with the FHA Commissioner on FHA matters; and planned monthly meetings with staff and the contractor responsible for overseeing the federal installation program in 2006.

YES 11%
2.RG1 Are all regulations issued by the program/agency necessary to meet the stated goals of the program, and do all regulations clearly indicate how the rules contribute to achievement of the goals?

Explanation: All regulations currently being drafted and published as proposed rules are tied to goals established by the 2000 Act, in addition to the statutory goal of establishing the installation and dispute resolution programs.

Evidence: The first proposed rule necessary to establish one of the two mandated programs was published on April 26, 2005. The other proposed rules include a draft proposed rule to establish the Installation Program and the Dispute Resolution Program. Another proposed rule for which the public comment period has ended and the Department is preparing a final rule, is a proposed rule to revise the federal construction and safety standards. In addition to those mandated by statute, there are regulatory actions proposed by the MHCC which the program office is required by statute to act. These include a rule to define and allow on-site completion of manufactured homes. Other regulatory actions include a proposed rule to correct inequities created in a regulation revising the payment of fees to states, and a rule in draft to increase the fee amount from $39.

YES 11%
Section 2 – Strategic Planning Score 100%

 

Section 3 – Program Management
Number Question Answer Score
3.1 Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: The agency collects performance information and uses it to improve performance. The program office relies on staff and contractor oversight of the performance of the in-plant primary inspection agencies (IPIAs), design approval primary inspection agencies (DAPIAs), and state administrative agencies (SAAs) through annual performance reviews. Inspectors spend approximately 300 days each year in manufacturing plants overseeing the monitoring work of the IPIAs, receiving for record and random review 18,000 design pages of manufactured homes, and undertaking 22 reviews of state administrative agency performance. They submit checklist assessments to HUD annually. Based on this information, the program office identifies program weaknesses and requires increased HUD monitoring, or plans of corrective action. Information on follow-up audits and homes completed is also gathered from these actors.

Evidence: Based on audits or visits to plants, the program office may shift resources to increasing monitoring of poorly performing partners. IPIAs may receive follow-up audits, DAPIAs may receive increased monitoring, and SAAs may receive on-site visits. The program’s contractor has collected this information for over 20 years, providing valuable baseline information for the performance of program partners. For example, an increased number of audit findings in plants in Florida (in which the State of Florida serves as the IPIA) caused the federal program to order a higher than usual number of follow-up audits on the Florida production lines. This combined with a static number of failures to conform during the follow-up audits keyed the federal program to target technical assistance and intervene early.

YES 9%
3.2 Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: The program managers and partners are accountable for achieving performance goals. The Manufactured Housing Program Administrator reports to the Assistant Secretary for Housing and the Secretary, and in the Office of General Counsel, the Assistant General Counsel for the Division of Compliance. For program partners, the performance of IPIAs, DAPIAs and SAAs are reviewed annually, based on regular audits throughout the year.

Evidence: All state administrative agencies (SAAs) and primary inspection agencies (PIAs) are held accountable for cost, schedule and performance results through oversight of their own work within manufacturing plants throughout the year, which is summarized in an annual review of performance. These third parties are paid directly from the manufacturers, with their costs, schedules, and performance controlled by market forces for the private PIAs, and by state regulation for the state PIAs. The work of the program contractor, conducting the PIA audits on behalf of the federal program, is monitored by program office staff, ensuring the work is completed within budget, on schedule and meets performance results.

YES 9%
3.3 Are funds (Federal and partners’) obligated in a timely manner and spent for the intended purpose?

Explanation: Funds are obligated in a timely manner. For investigations and enforcement the funds are expended through the cost of salaries, and payments to the states – a primary partner in identifying cases for investigation and enforcement. For establishment of the two new programs the primary program expense is for salaries, cost of the Administering Organization for the MHCC, and upcoming costs of procurements for establishing the programs. Each year all funds are obligated (if not yet expended) prior to the end of the fiscal year

Evidence: The annual appropriations Act provides authority to collect user fees for an amount up to but not exceeding the appropriated amount. The FY 2005 appropriation was for no more than $13 million. The regulations mandate the formula by which the incoming fees are shared with the state administrative agencies (SAAs). Congressional budget requests outline seven categories of how the funds are to be targeted. Fees are tallied and transferred to the expenditure account on a monthly basis, limiting all expenditures to current funds on-hand. Fee income and expenditure is recorded by HUD’s budget office. Contractor costs are monitored by the GTR and DCAA audits. The payments to states are made based on formula, and state program costs are monitored within the appropriate state as mandated by state law or regulation.

YES 9%
3.4 Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The program cannot receive credit for this because it is still developing an efficiency measure. However, procedures to use competitive sourcing and contracting are authorized in the language of the 1974 statute, and have assisted the program in achieving efficiencies in program execution. Additional authorities to contract for services were part of the 2000 Act. Competitive sourcing and procurement of monitoring services assist in protecting consumers through investigations and enforcement (See 3.1 response).

Evidence: The Manufactured Housing Program has accomplished the above with what is currently a workforce of 10 professional and 3 administrative staff, and only one fee increase in over 15 years. In addition, since 2000, total program income has fallen (due to a fall in production and related income) 30 percent. This has required the program to reduce on-site, design and state monitoring by 60 percent. These resource commitments are to be compared to the total number of manufactured homes in the U.S., over 8 million.

NO 0%
3.5 Does the program collaborate and coordinate effectively with related programs?

Explanation: The fundamental basis of the Federal Manufactured Housing Program is collaboration and coordination with state and private programs. While responsible for ensuring the quality, safety and durability of manufactured homes, the foundation of the program is for the federal office to oversee the work of manufacturers through partnerships with states and private organizations overseeing or investigating the quality of the manufacturers’ work.

Evidence: For enforcement and investigation the federal program relies on the efforts of ten state primary inspection agencies (PIAs), six private primary inspection agencies, and 38 state administrative agencies (SAAs), as outlined in the program regulations. The program office also collects information from FHA, HUD’s Office of Policy Development and Research, the Federal Emergency Management Agency, Consumer Product Safety Commission, and the U.S. Fire Administration to identify specific cases for further investigation and enforcement, or to analyze trends in safety in manufactured homes. A recent example of effective collaboration with CPSC, was a CPSC product recall requiring notification of homeowners and correction of a defective gas water heater valve, a process required in 24 CFR Part 3282.404. In this case, CPSC recalled approximately 35,000 gas water heaters nationwide manufactured by the firm “State Water Heaters.”

YES 9%
3.6 Does the program use strong financial management practices?

Explanation: The Manufactured Housing Program displays strong financial practices. The monitoring contractor accounts for the collection of all manufactured housing fees, calculates payments due to the SAAs, and produces the paperwork necessary to authorize these payments. This not for profit organization is chosen in a competitive procurement process. The contractor’s financial management has been audited in accordance with the OMB Circular A-129 requirements. Over 29 years, the same or a related organization with the same management leadership, has fully accounted for HUD’s accurate payments to its state partners.

Evidence: The program has never been over budget. The Federal Manufactured Housing Program has never been identified by the Office of Inspector General or GAO as requiring an audit for oversight, nor have its contractors. There have been no Congressional investigations or hearings. The primary contractor working with this program has completed independent audits consistently returned with no action items.

YES 9%
3.7 Has the program taken meaningful steps to address its management deficiencies?

Explanation: The Administrator now holds a monthly enforcement meeting with program and OGC staff, and with the assistance of monitoring contractor staff, identifies potential enforcement cases.

Evidence: The most recent deficiencies were identified in 2002 when the recently appointed Administrator noted no existing process to generate investigations or enforcement actions. This led to setting a performance goal in this area. The Administrator initiated a monthly meeting with selected program staff and staff of the Office of the Office of General Counsel to identify potential enforcement cases for investigation. The appointment of the Administrator also facilitated smoother action in carrying out the steps necessary to reach the long-term goal of establishing the two new programs mandated by the 2000 Act.

YES 9%
3.RG1 Did the program seek and take into account the views of all affected parties (e.g., consumers; large and small businesses; State, local and tribal governments; beneficiaries; and the general public) when developing significant regulations?

Explanation: The Department is undertaking a large amount of regulatory development to complete the statutory mandates of the Manufactured Housing Improvement Act of 2000. This includes the preparation and publication of proposed rules for the Model Manufactured Home Installation Standards, the Manufactured Housing Installation Program Regulations, and the Manufactured Housing Dispute Resolution Program. In several instances, the 2000 Act mandates coordination with the Manufactured Housing Consensus Committee (MHCC). In other instances, the Department has published an Advance Notice of Proposed Rulemaking, soliciting public comment prior to drafting the proposed rule, and has solicited comment from the PIAs and SAAs.

Evidence: In the instance of the Model Manufactured Home Installation Standards, the statute mandated that the proposal come from the Manufactured Housing Consensus Committee, comprised of 21 persons representing Users, Producers and General Interest. HUD also discusses with PIAs and SAAs the other proposed rules currently under consideration by the Department and the MHCC, for their information and feedback prior to proposed rule publication.

YES 9%
3.RG2 Did the program prepare adequate regulatory impact analyses if required by Executive Order 12866, regulatory flexibility analyses if required by the Regulatory Flexibility Act and SBREFA, and cost-benefit analyses if required under the Unfunded Mandates Reform Act; and did those analyses comply with OMB guidelines?

Explanation: All rules are reviewed internally at HUD by designated offices, and externally at the appropriate agencies for their cost impact, regulatory impact, regulatory flexibility, and small business impact. Of the draft or completed proposed rules, only the Model Manufactured Home Installation Standards has completed OMB review. The program office received limited comments from OMB, all of which were incorporated into the proposed rule. No comments were received from any other agency (See response to 4.1).

Evidence: Previous program rules published within the past five years have also complied, including the Smoke Detector Rule and the proposed revisions to the Construction and Safety Standards. The cost-benefit impact of this rule was estimated to be between $9 and $11 million, with approximately 30 lives saved.

YES 9%
3.RG3 Does the program systematically review its current regulations to ensure consistency among all regulations in accomplishing program goals?

Explanation: The program office has introduced, and worked with the MHCC in its proposed revisions to regulations to ensure consistency among all regulations, when drafting new or revised regulations. The MHCC is charged by statute to propose revisions to the Manufactured Housing Construction and Safety Standards at least once every two years, requiring a regular review of the design and construction regulations.

Evidence: The MHCC is developing proposed revisions to Subpart I of 24 CFR Part 3282, “Consumer Complaint Handling and Remedial Actions” and program and counsel staff have worked extensively with the MHCC in the development of these potential revisions and to identify current regulations in 24 CFR Part 3280 and 3282 which need revision as a result of changes to Subpart I in 3282. The program office proposed revisions to 24 CFR Part 3282.15 “On-Site Completion of Homes” to simplify the process of installing homes at the site, and 24 CFR Part 3284, “Manufactured Housing Program Fee”, and has identified specific sections of Parts 3280 and 3282 which need revision.

YES 9%
3.RG4 Are the regulations designed to achieve program goals, to the extent practicable, by maximizing the net benefits of its regulatory activity?

Explanation: The proposed regulations mandated by the 2000 Act are designed to achieve the program goals stated in Response 1.1 (Program Purpose), and are designed to reflect current practices in the private sector for home inspection and approval. However, cost-benefit analyses have not been completed for two key rules – Installation and Dispute Resolution standards.

Evidence: The proposed regulations are the result of actions mandated by the statute such as the proposed rules for the Model Installation Standards, the Dispute Resolution Program, or the Installation Program, actions to assist the program in reaching its goals such as Part 3282.15 “On-Site Completion of Homes” or the clarification and simplification of the “Consumer Complaint Handling and Remedial Actions” being developed by the Department and the MHCC.

NO 0%
Section 3 – Program Management Score 82%

 

Section 4 – Program Results/Accountability
Number Question Answer Score
4.1 Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: The target and timeframe for investigations and enforcement is an increase of investigations and enforcement cases by 100 percent from 2003 to 2008. Data for other key long-term outcomes on fire deaths and resale value has yet to be collected. Fire deaths correspondes to the long-term goal of ensuring housing is safe, while re-sale value provides a proxy for the durability of the home.

Evidence: HUD is within the proposed timeframe to meet targets for enforcements and number of homes corrected. HUD plans to work with stakeholders to gather data to show progress towad its other long term measures that it is working to collect baseline data for, including fire deaths and resale value of manufactured homes.

SMALL EXTENT 6%
4.2 Does the program (including program partners) achieve its annual performance goals?

Explanation: The program reports its performance in the The FY 2002, 2003, and 2004 Performance and Accountability Reports and has largely met its target for the Annual Performance Plan (APP). The program has made progress on investigations and enforcement by reaching its annual targets for the number of enforcement cases, and by beginning to track the number of homeowners positively impacted by the investigations and actions. HUD is still gathering data to show progress in reducing the number of follow-up audits.

Evidence: The Performance and Accountability Reports describe the progress of the program office in its efforts to reach the statutory goals outlined in each fiscal year’s Annual Performance Plan. The Program Office and OGC’s Office of Compliance maintain a tracking system indicating the number of enforcement cases opened and closed in each calendar year.

LARGE EXTENT 12%
4.3 Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: While the program does not currently have an efficiency measure, it can demonstrate some improved efficiencies and cost effectiveness. For example, the number of program staff from FY 2003 to FY 2005 has decreased as has the real dollar value the program commits to its monitoring contractor; however the program has been able to continue establishing the two new programs and increase the number of enforcement cases.

Evidence: To sustain compliance of manufactured homes to the federal standard the program currently operates with a staff capacity of ten professional and three clerical staff. Recent staff reductions have resulted in somewhat lower program accomplishments, but the program continues to meet most long-term targets. The primary goal of the program with the reduced staff is the sustained compliance of manufactured homes to the federal standard while making progress to meet the two long-term targets by 2008.

SMALL EXTENT 6%
4.4 Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: While comparisons are difficult, other agencies also protect consumers through investigations and enforcement. For example, two other federal programs with similar legal foundations are the National Highway Transportation Safety Program, and the Consumer Product Safety Commission. Other similar programs include State or local codes and corresponding regulatory programs for factory-built housing, designed and built according to state or local code, such as modular housing. Another program with a similar purpose and goal would be a code and regulatory program for site-built housing. These are designed and constructed to state or locally enforced standards and are constructed on-site. The fee charged by any state or oversight agency for every transportable “modular” unit, built in a factory varies according to state or local requirements. In 2002 at the time the federal manufactured housing fee was $21.00 per transportable unit, state modular housing fees in 29 states averaged $51.00 per transportable unit.

Evidence: HUD’s manufactured housing is most efficient and cost effective as compared to the two benchmarking industries. The regulatory fees and number and cost of construction inspections are low. Design approvals take less time, and the preemptive nature of the program removes the cost of a single builder constructing in more than one jurisdiction being required to be knowledgeable of more than one building code. The quality gap that previously existed between manufactured housing and modular and site-built has reduced significantly. [Still awaiting data to support this claim.] The remaining gap in quality is determined primarily by market forces and consumer needs, rather than the ability of the industry to provide higher quality housing.

LARGE EXTENT 12%
4.5 Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: These evaluations include the recently released study on the performance of manufactured homes during the multiple-hurricane period in Florida in the summer of 2004: “An Assessment of Damage to Manufactured Homes Caused by Hurricane Charley” – March 2005. Each evaluation confirmed the effectiveness of the federal program in continuing to achieve the required level of safety and standards conformance with the current level of staff and resources. HUD plans to work with HUD’s Office of Policy Development and Research to design an evaluation of its program office’s effectiveness.

Evidence: One of the primary measurements of effectiveness and results is in the sustained compliance of manufactured homes to the federal standards. The most recent is in the just-released study entitled, “An Assessment of Damage to Manufactured Homes Caused by Hurricane Charley” – March 2005, conducted by an integrated team of staff from HUD’s manufactured housing office, and its contractor, and an independent contractor experienced in post-disaster housing damage assessments. The report concluded that manufactured homes produced after July 13, 1994 when the Department’s current wind load requirements were implemented, performed significantly better than pre-1994 homes at a statistically significant high level of confidence. Further, pre-HUD Code homes were much more severely damaged than newer (post 1976) HUD Code units at a high confidence level. The State of Florida Installer Licensing Program also issued a report in August 2004 after Hurricane Charley, and in September 2004 after Hurricane Ivan. Both Florida reports noted the performance of homes and installation systems, and the “admirable” performance of manufactured homes built since HUD’s 1994 stricter construction requirements in high wind zone areas.

LARGE EXTENT 12%
4.RG1 Were programmatic goals (and benefits) achieved at the least incremental societal cost and did the program maximize net benefits?

Explanation: Three primary indicators best measure how programmatic goals have been achieved at least societal cost. One is the comparison of the federal government’s overall added cost to the product, with the federal fee measuring less than one quarter of one percent of the overall cost of the average manufactured home unit ($39 compared to $45,000 average cost of a house). HUD has also completed several specific cost analyses if new or revised construction and safety standards that show societal benefits.

Evidence: The program analyzed past enforcement actions, which showed that 90 percent of the enforcement actions undertaken by the program and its counsel over the past three years have been actions of settlement, and not pursued to judgment. These actions have resulted in corrections being made to all existing homes and designs, to the greatest benefit of those at risk. For the additional smoke alarm requirements added through the Final Rule published March 19, 2002, the average cost impact was estimated to be $40 per unit, and estimated to result in 30 lives saved annually. The number of complaints related to problems with formaldehyde exposure after improving the standard decreased from 1,500 to approximately five complaints per year.

YES 10%
Section 4 – Program Results/Accountability Score 58%

 

This report is found on the webpage, linked here.

This should be viewed in the context of the broader related reports, linked below the bylines and notices.

That’s this Monday’s second installment of News Through the Lens of Manufactured Homes, and Factory-Built Housing,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Manufactured Housing Professionals, HUD Secretary Ben Carson, Must Promote These Two Words

Secretary Ben Carson’s, Julian Castro’s Manufactured Housing, “Trailer,” “Mobile Home” Revelations, 2020 Battles Ahead

Prosperity Now, Nonprofits Sustain John Oliver’s “Mobile Homes” Video in Their Reports

HUDSecretaryBenCarsonSpeechManufacturedHomesManufacturedHousingActiveIngredientMedicationStrongerAmericaMHLivingNews

https://www.manufacturedhomelivingnews.com/hud-secretary-ben-carson-speech-on-manufactured-homes-manufactured-housingactive-ingredientmedicationfor-a-stronger-america/

 

 

 

 

 

 

 

Killer Alabama Tornadoes Didn’t Discriminate – Tragic Yet Powerful Storms vs. Manufactured Housing, Conventional & Commercial Construction Insights

March 8th, 2019 Comments off


KillerAlabmaTornadoesDidntDiscriminateTragicYetPowerfulStormsVsManufacturedHousingConventionalCommericalConstructionInsights 

Roughly 40 storms that struck 4 states were among the “tornados that devastated our state and left 23 people dead” said the Alabama Manufactured Housing Association’s Lance Latham to the Daily Business News on MHProNews. The tragic deaths apparently occurred in all types of construction, conventional housing, and factory-built housing too.

 

Dozens of souls are injured.  How many are missing that once found could cause an increase to the final death toll?

Conventional housing, commercial buildings, and manufactured homes were all ravaged by the tornadoes that brought President Donald J. Trump and First Lady Melania Trump to Lee County, AL on Friday to tour the devastation, comfort the grieving, and thank recovery workers.

The tragedies have focused a grim spotlight on how much better manufactured homes performed than some untrained eyes may realize.

 

Beyond Death, Destruction and Injuries – Sobering Surprises?

In the background of the reporter in this first video by AL.com is a HUD Code manufactured home.  Trees are stripped and down. Nearby is what appears to be some structure that was swept away. But the manufactured home, with the roof partially ripped away, nevertheless is still standing. A Coca-Cola truck is tipped over right by it.

 

 

ABC News filed this next report.

 

 

What their video above doesn’t specify is that the commercial structure in their opening still and is this factoid.  That commercial structure – a bar-  lost its entire roof.  It appears to be the same building in this next raw footage from the video surveillance cameras, which shows the approaching tornado. ABC’s report suggests the connection between the video below and their story.

Rephrased, the raw video below is of this devastated commercial building seen in the opening still above of the ABC News report. Why is that detail of interest to industry professionals, advocates, and others?

 

 

Because those details suggest that the manufactured home in the AL.com footage apparently better survived the horror of this powerful storm than that commercial building – that bar – in the ABC News report did. There is other visual evidence one can spot in these various videos that reflect a contrarian reality to the commonly believed thoughts about manufactured homes.  They have to be tough, because they have to be moved to their location.  Industry pros must get that, so that the public learns it.

These are the kinds of facts that industry professionals, advocates, weather professionals, researchers, and public officials need to be made better aware of, for the sake of all. AL.com stated that “At least four of the 23 people killed in Sunday’s tornado outbreak in Lee County were said to have been inside mobile homes.”  As the facts become better known, we plan to do a report for Manufactured Home Living News.

ABC said that one of the twisters was an EF4, with 170 mile per hour winds. That storm was nearly a mile wide, reportedly cutting a path of over twenty miles of devastation.

Yet, the stills from the ABC video reveals some manufactured homes in the distance appear to have survived the deadly and diabolically destructive storm.

 

ABCNewsAlTornadoKillsAtLeast23DailyBusinessNewsManufacturedHomeSurvivesMHProNews

 

National Weather Service Insights

To better understand this issue of windstorms and manufactured housing, see the MHLivingNews report, which includes an official statement by a National Weather Service (NWS) statement that ought to be required reading for every weatherman, manufactured home researcher, and advocate.

 

 

 

Killer Storms

Tornadoes kill. Lightening, hurricanes, or even straight winds can be murders too.

But deaths during weather events aren’t caused by a type of housing or construction. Remember that the destructive tornado that struck Joplin, MO destroyed conventional housing only.  There are urban legends and ‘mobile homes are tornado magnet’ myths that must be debunked almost every time such an event sadly occurs. You can’t stop Mother Nature from doing what she’s done decades before the first mobile home, or later, manufactured homes, were built.

2011JoplinMOtornado#F5DailyBusinessNewsMHProNews

 

Storm strikes are not easy to predict, which is part of the danger.  But thankfully, the fatalities – while tragic – are relatively tiny compared to other causes of death, like automotive accidents.

 

 

So it isn’t housing types that cause deaths. Those fatalities are caused by storms. Flying poles, trees, metal and other objects can penetrate the envelope of most types of construction. Once a structure’s envelope is breeched during a windstorm, it can get ripped apart.

This is an issues that haunts our industry, because not enough has been done by industry leaders to allay the fear that causes many to never consider a manufactured home because of skewed perceptions about this troubling issue.  It should be noted that the journalists in these posted videos didn’t bad mouth manufactured homes.

No one wants to see any premature deaths. MHProNews extends its condolences to all who have suffered losses.

See the related reports for more storms and manufactured housing fact-based insights. That’s “News through the lens of manufactured homes and factory-built housing”  © where “We Provide, You Decide.” © ## (News, analysis, commentary.)

 

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http://www.theledger.com/opinion/20161016/letter-important-to-millions

What Michigan State Climate, Tornado and ‘Mobile Home” Researchers Missed, and Admitted

Cavco Industries Woes Mount, Official, Unofficial Insights, Broader Manufactured Home Industry Impacts?

February 14th, 2019 Comments off

 

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Thank you. And before we begin, please be advised that comments made during this conference call by management will contain forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995, including statements of expectations or assumptions about Cavco’s financial and operational performance, revenues, earnings per share, cash flow or use, cost savings and operational efficiencies,” said Mark Fusler, Director of Financial Reporting for Cavco Industries (CVCO), per the Motley Fool’s official earnings call transcript.

 

Some factors that may affect the company’s results include, but are not limited to the risk of litigation or regulatory action arising from the subpoenas we received from the SEC, the risk of potential litigation or regulatory action arising from the SEC related internal investigation and its findings, potential reputational damage that Cavco may suffer as a result of matters under investigation, adverse industry condition, our involvement in vertically integrated lines of business, including manufactured housing, consumer finance, commercial finance and insurance, market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing,” said Fusler for Cavco.

This conference call also contains time-sensitive information that is accurate only as of the date of this live broadcast Tuesday, February 5, 2019. Cavco undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the date of this conference call, except as required by law,” Fusler stated before turning the call over to Daniel L. Urness, President and Acting Chief Executive Officer of Cavco.

One could unpack those disclosures at great length and depth.

But what was not directly stated was that the number of shareholders plaintiffs’ attorneys doing “investigations” of Cavco and CVCO stock has mounted. It’s about a dozen known firms, to date – and while it is implied by Fusler – it is not bluntly stated.

Nor was it directly said that Cavco continues to take several preparatory moves, per legal sources, that make it clear that they expect a potentially protracted legal battle over the Stegmayer-SEC subpoena reported issue. That too may be construed as implied, but was not stated.

 

 

The Curious Case of Cavco and Joe Stegmayer?

There are communications that have been sent to MHProNews as news tips that have occurred since he stepped down as chairman and CEO of Cavco that some might interpret as Stegmayer exercising more leadership at Cavco than his current job title may imply.

The fact that Stegmayer is still Chairman of the Manufactured Housing Institute (MHI) Executive Committee ought to be of interest too.

 

CavcoIndustriesWikiPage2142019ManufacturedHousingIndustryDailyBusinessNewsMHProNews

Why? Several possible reasons, per sources that include, but may not by limited to the notion of “derivative liabilities.” We will explore that topic in an upcoming report.

But look again at this part of Fusler’s disclaimer statements: “...market forces and housing demand fluctuations, our business and operations being concentrated in certain geographical region, the loss of any of our executive officers, federal government shutdown, and extensive regulation affecting manufactured housing…”

Which of those plaintiffs attorneys investigating Cavco have begun to uncover the various concerns about alleged market rigging or related that has been raised by MHProNews, MHLivingNews, MHARR and others? Which shareholders investigators have connected the relevant dots between Cavco, Clayton, and MHI?

Or who at the SEC is doing so?

How many of those shareholders attorneys or the SEC have had staff pouring over reports published here or elsewhere about Stegmayer, Cavco, Clayton, and MHI?

Without revealing sources and methods, it is common-sense to think that such research is the underway. If so, doesn’t that mean that Cavco’s legal bills and exposure will mount?

 

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But the market’s investors are apparently beginning to regain a measure of confidence in Cavco. They may – correctly or incorrectly – think the worst is over for CVCO, and that the stock is now “a value” in the Warren Buffett sense of the term.

 

 

CavcoIndustries2142019ManufacturedHomeIndustryNewsDailyBusinessNewsMHProNEws

 

The storm brewing over Cavco could disrupt more than what some in MHVille, the investment community – or even in Phoenix, Knoxville, and Arlington –  may currently believe. MHProNews will do follow up reports that will continue to unpack what is occurring in the developing case.

 

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

 

Until the next report, note as a disclosure that MHProNews’ management holds no position in any tracked stock in our evening markets report, nor plans to open a position in the next few days.  Some prior reports can be accessed from the text/image box below.

 

What’s Coming at Cavco Industries (CVCO), Plus Manufactured Housing Industry Stock Updates

 

But we are keenly interested. As the #1 read, and pro-sustainable growth manufactured housing trade media, plus consulting, and professional services provider, we wonder aloud why certain steps have not yet occurred at MHI, their member companies, including Cavco, Clayton, 21st Mortgage and others haven’t already occurred?

Stay tuned, because more is almost guaranteed to be revealed. And if so, will it once more send shock waves though Cavco, or others?  “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

Independent National Manufactured Housing Post-Production Association Takes Major Step

President Trump Announces Nominee Dr. Mark Calabria to Become New Director of Federal Housing Finance Agency

MHARR Calls on HUD To Remove Zoning, Placement and Consumer Financing Barriers to Manufactured Homes

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

Independent National Manufactured Housing Post-Production Association Takes Major Step

“Washington Post Article Underscores Clear Need for An Independent Post-Production Association”

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

 

 

 

 

 

 

 

Cavco Industries New Board Member, Susan L. Blount – Corporate, Manufactured Home Industry Insights on Pick, Timing

January 29th, 2019 Comments off

CavcoIndustriesLogoCVCOlogoNewBoardMemberSusanLBlountPhotoManufacturedHomeIndustryInsightsPickTimingDailyBusinessNewsMHProNews

Cavco Industries (CVCO) has provided a recent release to the Daily Business News on MHProNews, regarding the announced selection of Susan L. Blount to the troubled firm’s Board Of Directors.

 

We’ve held that release for reasons that yesterday’s report on Cavco make clear. Before turning to portions of the Cavco release, industry sources tell MHProNews what this move represents.

Blunt on the Cavco Board of Directors is “…meant to inspire confidence both now and going forward…” for the Securities and Exchange Commission (SEC), plus the firm’s current and prospective shareholders.

Sources also say that this move to bring Blount on board is meant to blunt prospective plaintiffs attorneys too. Cavco, per sources, have engaged in several moves designed to prepare the firm for the legal battles that are expected.  For more on those legal issues, see the related reports, further below.

 

Here are some quotes from Cavco’s release to MHProNews, following the composite screen capture from LinkedIn.

 

SusanBlountCavcoIndustriesBoardOfDirectorsManufacturedHousingIndustryDailyBusinessNewsMHProNews

Cavco Industries Appoints Susan L. Blount to Board Of Directors

Former EVP and General Counsel of Prudential Financial Inc. will Bolster the Board’s Financial Services, Governance and Insurance Expertise

Cavco Industries, Inc. (NASDAQ: CVCO)…announced that its Board of Directors (“Board”) appointed Susan L. Blount as an independent director of the Company’s Board. Ms. Blount, an experienced financial services executive, retired as Executive Vice President and General Counsel of Prudential Financial, Inc. in 2015, having served as General Counsel since 2005.

Ms. Blount’s appointment fills the vacancy on Cavco’s Board and brings its current membership to five directors, all of whom are independent. She will be a member of the Company’s Corporate Governance and Nominating Committee and the Company’s Compensation Committee.

We are extremely pleased to welcome Susan Blount to our Board,” commented William Boor, non-executive Chairman of the Board of Cavco. “Susan’s accomplishments speak for themselves. She has significant and very relevant experience in strategy, corporate governance, risk and compliance in both the public and private sectors.”

Mr. Boor continued, “Susan’s addition reflects our commitment to enhance the Board’s capabilities and diversity. We look forward to getting the benefit of her insights, judgment and counsel, and we are confident that Susan will make a meaningful and very positive impact on our Company’s future success.”

I am excited to join and begin to work with the Cavco Board as we move into 2019,” said Ms. Blount. “Cavco fills an important role in the US housing market and the Company has impressed me with its strong commitment to governance and focus on superior stockholder returns.”

Ms. Blount is an outstanding addition to our Board,” added Daniel Urness, President and Acting Chief Executive Officer of Cavco. “Her public company and diverse corporate management experience will offer fresh perspectives and oversight to help our leadership team enhance long-term shareholder value.”

Susan L. Blount

From 2005 to 2015, Susan Blount served as General Counsel of Prudential Financial, Inc. (Prudential), a leading provider of insurance, retirement and asset management products and services. In that role, Ms. Blount led the company’s global law, compliance, business ethics and external affairs organization. During that time, Ms. Blount was a member of key senior management committees including the Office of the Chairman Group, the Enterprise Risk Committee and the Capital and Financial Controls Committee. Ms. Blount joined Prudential in 1985 as a staff attorney in the company’s commercial real estate organization. Before being appointed General Counsel, she held various positions of increasing responsibility, including Chief Investment Counsel, Vice President and Corporate Secretary, and Associate General Counsel and Head of Shareholder Service. Prior to joining Prudential, Ms. Blount was an Associate at Kirkland & Ellis.

In 2017, Ms. Blount was an Advanced Leadership Initiative Fellow at Harvard University. Since 2016, she has taught as an adjunct professor at the University of Texas School of Law. Ms. Blount is active in professional and community service. She currently serves on the University of Texas Law School Foundation, the Executive Committee of the Center for Women in Law and the Nantucket Historical Association. Ms. Blount has also served on the Boards of organizations such as Montclair State University, the Leadership Council for Legal Diversity, the Association of Corporate Counsel and the New Jersey Law and Education Empowerment Project. She has also been a faculty member at Stanford University’s annual Directors’ College and a participant in Stanford’s Institutional Investors Forum.

Ms. Blount graduated from The University of Texas at Austin with a bachelor’s degree in history and a juris doctor with honors.

About Cavco Industries, Inc.

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. The Company is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle and Lexington Homes.

The Company is also a leading producer of park model RVs, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco’s mortgage subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer, a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

— end of quoted section of Cavco release —

CavcoIndustriesManufacturedHousingIndustry6MonthStockTrendCVCOMHProNews

JoeStegmayerCavcoCVCOMIChairBrianMontgomeryHUDFHASameLandyUMHPresidentDailyBusinessNewsMHPronews

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Cavco Industries (CVCO) Class Action Suit

Insider Trades, New Cavco Industries Investigation, Selling – Plus More Manufactured Housing Stock Updates

Hedge Fund’s Cavco Move, and More from Inside MHVille

 

Manufactured Home Production Decline Accelerates in November 2018

Manufactured Housing Institute on Cavco Industries, ex-Chairman Joe Stegmayer SEC “Debacle”

 

Why Is Manufactured Housing Struggling During an Affordable Housing Crisis? Former MHI President, VP, Other’s Quotable Insights

January 14th, 2019 Comments off

 

WhyManufacturedHOusingStrugglingDuringAffordableHousingCrisisFormerMHIPResidentVPOThersQUotableInsightsDailyBusinessNewsMHProNews

It is no secret that MHProNews believes in applying similar principles of accountability to an association that one should apply to a successful, ethical business.

 

If there was a business manager or company president that year-after-year, failed to deliver, what would happen to such a professional?  What happens to a head coach that doesn’t deliver?  How long would excuses by accepted?

How can the manufactured home industry understand and accept its long and enduring malaise in recent decades, when the industry’s modern manufactured homes are widely praised by third-party researchers?

The following is the first of a planned series of quotable quotes, including voices from within MHI.  They will serve to shed ‘insider light’ on this controversial but essential-for-future growth topic.

 

Understanding the Manufactured Housing Institute – Consider these Quotable Quotes – Infographic

UltimateManufacturedHousingInstituteLogoQuotes1DailyBusinessNewsMHproNewsMachievelianInstiutte
See the related report – by clicking on the text/image box – for Chris Stinebert’s comments in context.

 

Former Manufactured Housing Institute President, Manufactured Home Owners, Urban Institute, and You

 

Manufactured Housing and Grief? 

Numbers are seeing MHI for what it is, but there are those who struggle against a kind of grief – a sense of loss – in accepting the reality of what MHI is all about.  For those, the following tips about the 5 stages of grief are useful. While this graphic is focused on the ‘loss’ of a loved one, it can apply to the loss of other things too.

 

5StagesofGriefManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

MHI leadership?  Facts are #Nettlesome things.  And these quotes above from past and present MHI leaders and members are a vexing reality.

 

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Your Comments, Feedback, or News Tips can be email at this link. Or Connect via LinkedIn and comment.

 

MH Industry pros?  Head fakes and razzle dazzle shouldn’t fool mature adults forever. Grab your energy drink or coffee, put your boots on, and get ready for the internal battle for the future of manufactured housing – especially for independents.

RichardDickJennisonMHIPresidentPhotoBrianMontgomeryEnhancedPreemptionFHATitleChattelLoans1010RuleTimWilliamsDontLearnFromHistoryDailyBusinessNewsMHProNews

See the cartoon-laced, satirical MHI ‘razzle dazzle’ fact-checks, linked here and here.

Because this is your wake up call. Reality is what it is. Denying reality is to accept the status quo.

NothingIsChangedUntilItisChallenged-768x318

MHProNews’ parent operation demonstrated to MHI over the course of years options for lending, and ways to improve image at a low cost. For years, even though our parent operation was an MHI member, and showed proven ways to grow business, MHI leaders ignored those options. Why? Could it be that slow growth allowed more consolidation and at a cheaper price? We learned the hard way, what about you?

We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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

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Manufactured Housing Institute on Urban Institute, Bloomberg, National Association of Realtors Reports Praising Manufactured Homes

Exploring Corporate, Association, Individual, Investor, and Governmental Corruption Involving Manufactured Housing

Useful Manufactured Housing Institute Provided Info, MHI M.O. Revealed

Production Decline Continues in November 2018

 

Independent National Manufactured Housing Post-Production Association Takes Major Step

 

 

 

 

LinkedIn, Manufactured Housing, and Manufactured Home Industry Professional Insights

October 8th, 2018 Comments off

 

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LinkedIn is a useful tool in several respects, one which thousands of manufactured home industry professionals enjoy.

 

While Facebook certainly has more MH professional users, LinkedIn provides a different look, feel, features, and experience.

Social media in many respects is ‘public,’ so on publicly posted messages, there is no expectation of privacy.  But so as not to discourage industry comments in social media, this Daily Business News on MHProNews item will not spotlight specific names in this post.

On a recent post by MHProNews on LinkedIn, a self-described Clayton Homes devote protested our coverage of a specific article that featured a mainstream media report by an ABC News affiliate.

That’s fine, it is her right, and our publisher thanked her for her comments. In fact, it sparked a useful discussion, worth reading. Let’s begin with the back ground.

ABC video reflected significant service problems on a manufactured home sold by one of their TRU producers.  As our publisher – L. A. ‘Tony’ Kovach – explained to that pro-Clayton industry professional on LinkedIn, this trade publication has for years done fact-checks, analysis and commentary on mainstream media reports about other companies in manufactured housing.  Perhaps she didn’t carefully read that article or view that video, because the video was used in part to turn lemons into lemonade.

Clayton is therefore no exception to our coverage of problems attributed to an industry company that has drawn mainstream media attention, and/or our analysis of such coverage and news.  As the largest producer and retailing company in our industry, Clayton no doubt gets more such coverage, but that is true in mainstream media too.

 

How Hot Is That Clayton Homes Story?

That story about Clayton’s service complaints is far and away the most popular read on MHProNews at this moment in October.  To understand the following data, as we’ve explained previously, MHProNews has numerous URLs and several C-panels.  Each of those has their own unique statistics and traffic. So, when we reveal ‘back end’ data, this is from only one c-panel, not all of them.  Rephrased, what follows is a fraction of the traffic, not all MHProNews traffic.

Per Webalizer – a third-party analytics provider – here is the data from one C-panel for our trade media site, as of Generated 08-Oct-2018 07:02 CDT.  The first number reflects the rank on that article on our website, the second the hits on that article, and the third rectangular box is the URL.

2 15523 http://www.MHProNews.com/blogs/daily-business-news/clayton-homes-ripped-by-customer-complaints-spotlighted-on-abc-news/

Clayton Homes Ripped by Customer Complaints Spotlighted on ABC News

Comparisons help someone get a better sense of that traffic. To give you a sense of just how hot that is, another Clayton article from September – for the entire month, not just 7.3 days, produced the following hit count. Again, the first is rank on our website from that URL at that time, the second is hits, the third is the URL.

13 10015 http://www.MHProNews.com/blogs/daily-business-news/toxic-trailers-clayton-homes-warren-buffett-kevin-clayton-clintons-expose-videos/

“Toxic Trailers” – Clayton Homes, Warren Buffett, Kevin Clayton, Clintons – Exposé Videos

MHInsiderManufacturedHousingINdustryDailyBusinessNewsMHProNewsNote that either of those data-points arguably reflects more readers than any other trade publication in manufactured housing today. MHProNews gets more readers in a day, than other MH trade publishers in our industry might garner in an entire month for all of their content.  The photo of MH Insider that is shown is just one way of reflecting that reality.

 

Take Aways?

First, while there are routinely occasions when:

  • via social media, or in
  • calls and messages to MHProNews
  • gets feedback for, against or in between on a particular article.
  • There is often significant interest in articles on Clayton, 21st, Vanderbilt, their leaders and Berkshire Hathaway Chairman Warren Buffett.

 

Second, articles that fact-check the Manufactured Housing Institute (MHI) also get thousands of hits, as do a number of others every month. Manufactured Housing Association for Regulatory Reform (MHARR) reports gets thousands of hits, and the MHARR News module often gets 5 figures of hits.  MHI stopped providing articles directly to MHProNews some years ago (note: they did to the Journal as well, prior to their ceasing publication), but others often provide them, for the purposes of fact-checks.

One obvious takeaway is that thousands of industry professionals want to have information other than what is sanitized or weaponized by MHI, Clayton, 21st and their purportedly ‘bought and paid for’ trade media allies.

As MHProNews – which has long been the number #1 trade media in manufactured housing – is often the only source for such reports, analysis and fact-checks, it is no surprise that ‘inquiring minds want to know.’  Others print items of interest, but debatably the reason that we dominate is because we cover topics and issues that others can’t, don’t or won’t.

As a result, MHProNews traffic has more than doubled since November of 2017, both in visits daily and in page views, as the Webalizer screen capture below reflects.  Again, this is one of numerous URLs – only one C-panel of statistics, a fraction of total MHProNews traffic, not all traffic.

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People want a full range of news, not just MHI hand-picked news. One reason why MHARR and MHProNews are so popular, is precisely because information that readers won’t get from MHI, are found here. On federal regulatory issues, the MHARR website covers insights in a very different way – fact and evidence based – than what MHI presents on a similar topic.

Why Does It Matter?

That community professional’s LinkedIn comments were largely polite, and ostensibly at her own initiative. When Tony asked her after the industry was broken off after the post linked below with Clayton, 21st et al, or would it be better off if those giants were broken up under anti-trust laws

The industry gets MHI and their ‘big boy’ backers news shoved down their throats from several third parties, and/or directly. MHI provides no diversity of opinion. When we provide MHI, Clayton or others a chance to respond, their responses are routinely off the record, not on, if they come at all.

Clayton Homes Consumer Complaints Saga Continues, Mold and More

Off-the-record replies from Clayton Homes team members on this ABC news controversy are found at the link above.  Keep in mind, that in the regrettably smaller world of manufactured housing, negative news that hits them, often unjustly spills over to others in the industry.

It arguably matters to the bottom line of independents and others, even if you don’t carry Clayton product.  Hopefully, by spotlighting them, they’ll not only address this consumer’s concerns, but others before they hit the mainstream media to further impair the industry’s public image.

Note that MHProNews has also raised the issue that conventional housing can have similar problems on homes that are often many times the cost of a manufactured home.  See the related reports, linked further below.

We’ll close this by noting that industry professionals feedback is encouraged, as are topic suggestions and news tips.  Several stories that we do are published because of tips from readers. “We Provide, You Decide.”  © ## (News, analysis, and commentary.)

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Related Reports:

 

Exposé! Heartbroken Conventional Housing Buyers? Dare to Compare Site Built with Modern Manufactured Homes

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

Seattle Times -Federal Investigations-Berkshire Hathaway’s Clayton Homes, GuruFocus Spotlights Buffett’s Clayton’s “Unethical,” Monopolistic Moat

Warren Buffett Would be Okay With Clayton Homes Losing Money, Says Kevin Clayton – But Why?

72% Blue Collar Workers “Optimistic,” White Collar and More Insights from Porch/Examiner Poll Report

September 14th, 2018 Comments off


PorchWashExaminer72%BlueCollarWorkersOptomisticWhiteCollarSentimentDailyBusinessNewsMHProNews

 

The Washington Examiner recently reported on a survey commissioned by Porch on worker sentiments.

 

Porch is a free online network that links homeowners and repair, renovation. and cleaning professionals.  Their research found concerns about robotics and automation.  That’s a topic that the Daily Business News on MHProNews has reported on several times in recent years, see related reports, further below.

JobSentimentByOccupationClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

But the new survey found “That recession driven grimness hanging over the workplace has lifted and now workers of all shades are feeling good about their future,” said the Washington Examiner.

PerceptionsByWorkerClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

The polling said that 72 percent of blue collar workers and 76 percent of white collar workers are optimistic about their future.

Many workers feel they can find another job easily.  That was confirmed by the latest JOLTs report, see that further below.

SentimentByWorkerClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

The survey found that most blue-collar and white-collar workers are happy, feel respected, and like each other.

Consumer confidence, manufacturers, and business confidence have also been on the rise, as MHProNews has been tracking those trends since the election of President Donald J. Trump.

See the related reports, further below.  This is another survey that may suggest a trend counter to what political polling is indicating, and thus is important to manufactured housing investors and businesses. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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New Records Achieved, Who Gets JOLT Credit? Surprising Insights for MHVille

“Growth,” “Fight on to Victory,” “One People, One Family, and One Glorious Nation Under God”

AI, Robots Replacing Skilled Positions More Rapidly Than Expected

 

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Billions in American Cash Flowing Back to U.S., Repartition Yields Capital for Manufactured Housing or Other Projects

Cavco Industries (CVCO) Insights, Financial Update, Fiscal 2018 Fourth Quarter. Year End Results

May 31st, 2018 Comments off

JoeStegmayerChairmanCEOPresidentCavcoIndustriesCVCOManufacturedMOdularFactoryZBuiltHomeINdustryMHProNews550

Cavco Industries, Inc. (CVCO) announced financial results for the fourth quarter and fiscal year ended March 31, 2018. On April 3, 2017, the Company completed the acquisition of Lexington Homes, Inc., which operates a manufactured housing plant in Lexington, Mississippi. Since the acquisition date, the results from this new business are included in Cavco’s consolidated financial statements presented herein,” according to the firm’s release to the Daily Business News.

 

IndustryMarketShareCavcoIndustriesManufacturedModularFactoryBuiltHousingDailyBusinessNewsMHProNews

Three months ended March 31, 2018 compared to the three months ended April 1, 2017 revealed the following results, per Cavco.

  • Net revenue was $242.5 million, up 22.5% from $198.0 million. The increase was the result of higher home prices and sales volume. The Company recognized $14.8 million of home sales revenue and $1.8 million of income from operations from early commercial loan payoffs received under Cavco’s wholesale lending programs. This revenue was previously deferred in prior periods in the normal course of business.
  • Income before income taxes was $30.7 million, an 86.1% increase over $16.5 million. Current quarter results include $4.5 million of other income from gains realized in the sale of corporate investments.
  • Income tax expense was $8.6 million, resulting in an effective tax rate of 27.9% compared to $5.6 million and an effective tax rate of 33.9%.
  • Net income was $22.1 million compared to $10.9 million, a 102.8% increase.
  • Net income per share, based on basic and diluted weighted average shares outstanding, was $2.45 and $2.40, respectively, versus $1.21 and $1.19, respectively.

CavcoIndustriesCVCO-InvestorRelations-ManufacturedHousingIndustryCompanyHighlightsDailyBusinessNewsMHProNews

Twelve months ended March 31, 2018 compared to the twelve months ended April 1, 2017,” according to their statement.

  • Net revenue was $871.2 million, 12.6% higher than $773.8 million. The increase was primarily from a larger proportion of higher priced homes sold and improved home sales volume.
  • Income before income taxes increased 42.0% to $78.5 million as compared to $55.3 million. In addition to the investment gain described above, the improvement was from increased home sales volume and pricing, a $3.4 million favorable dispute settlement resolution in the third fiscal quarter and improved earnings in the financial services segment.
  • Income tax expense was $17.0 million, creating an effective tax rate of 21.7% compared to income tax expense of $17.3 million and an effective rate of 31.3%. The current fiscal year benefited from the Tax Cuts and Jobs Act, which made broad and complex changes to the U.S. tax code. In connection with lower federal income tax liability related to the Tax Act and requisite revaluation of the net deferred income tax balance, the Company recorded a net income tax benefit of $4.8 million (or $0.52 per diluted share). Additionally, the Company recognized benefits of $2.1 million (or $0.23 per diluted share) from the current year adoption of accounting standards that required excess tax benefits on stock option exercises to be recorded as a reduction of income tax expense instead of equity as was previously required.
  • Net income was $61.5 million, up 61.8% from net income of $38.0 million.
  • Net income per share, based on basic and diluted weighted average shares outstanding, was $6.82 and $6.68, respectively, versus basic and diluted net income per share of $4.23 and $4.17, respectively.

Joseph “Joe” Stegmayer, Chairman, President, and Chief Executive Officer said, “We were pleased to complete the fiscal year with improved income from operations and growth in product sales. Fourth quarter gross profit as a percentage of revenue improved from home sales prices gradually increasing throughout the year to address rapidly rising material and labor input costs. Still, we work to keep prices competitive and affordable through efficient factory production processes and cost controls. We are also focused on improving production workforce size and productivity to raise home building levels further.”

BeachfrontHomeCavcoIndustriesManufacturedHousingIndustryDailyBusinessNewsMHProNews

Stegmayer continued, “Fiscal year 2019 begins with optimism about demand for housing as home ownership rates, currently at a low 64.2%, are reported to be trending higher. With housing prices and rental rates also on the rise, we believe systems-built housing will be an increasingly sought after option for affordable living.”

Stegmayer was inducted into the RV MH Hall of Fame in 2016.

JosephHStegmayerCavcoIndustriesRVMHHallofFameMuseumLibraryDailyBusinessNewsMHProNews_001

He is also the current chairman of the hall and museum.

CavcoIndustriesBloombergWatchlistManufacturedHousingIndustryDailyBusinessNewsMHProNews

CavcoIndustriesCVCO-InvestorRelations-ManufacturedHousingIndustryCompanyHighlightsDailyBusinessNewsMHProNews600

CavcoIndustriesQ4April2018ManufacturedHousingIndustryModularHomesDailyBusinessNewsMHProNewsCavcoIndustriesCVCOFocusTransformationManufacturedHousingIndustryDailyBusinessNewsMHProNews

CavcoIndustriesConsolidatedBalanceStatementsofIncomeDailyBusinessNewsMHProNews

 

CavcoIndustriesOtherOperationsq42018DailyBusinessNewsMHProNews

 

Behind the Curtain, and the Data

Cavco has been surpassed by Champion, which has taken over the number 2 spot in manufactured housing production, per their respective data sets.

Cavco’s president Joe Stegmayer was formerly with Clayton Homes.  Clayton today is owned by Berkshire Hathaway, and is the industry’s largest producer.

Cavco’s Stegmayer is the new chairman of the Manufactured Housing Institute (MHI).  For those members which thought that Stegmayer would lead the association in a new direction than the prior Berkshire Hathaway chair, there is no discernable difference.

ManufacturedHousingIndustryMHIBoardofDirectorsChairmanJoeStegmayerDailyBusinessNewsMHProNews

Cavco is one of the firm’s that is ‘vertically integrated’ in manufactured housing.

For more general industry insights, click the related report, links below.

Disclosure, MHProNews has no stake or financial interest Cavco, and is making no recommendation in this report.  “We Provide, You Decide.” © ## (News, analysis, and expert commentary.)

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

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

 

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

 

Robotics, 3D Printed Housing, Imminent Challengers for Manufactured Homes, Modular Housing – 3D Build Systems CEO Don Musilli

Understanding the Modern Realities of MHVille – Winners, Losers, Profits, and Loss

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

 

Fannie Mae: Manufactured Housing has Challenges to Overcome

June 27th, 2013 Comments off

In its latest Housing Insights report, Fannie Mae notes that while overall home construction fell by 70 percent between 2006 and 2011, manufactured housing (MH) began declining in 1998, falling nearly 90 percent. In 2012 MH accounted for 7.4 percent of total home construction, a substantial drop from 20.2 percent in 1998. The report says, “Given manufactured housing’s modest share of the total housing stock, the decline in manufactured home production might not seem important. However, manufactured homes account for an outsized share of low-cost housing, particularly among owner-occupants. Whereas manufactured homes account for approximately 7 percent of all owner-occupied homes, they represent 16 percent of owner-occupied units with monthly housing costs of less than $500.” As inman.com informs MHProNews, the average price per square foot for a manufactured home in 2012 was $42, less than half the square foot cost of a new site-built, single-family home. The report cites several barriers the industry must overcome, including limited conventional financing options due to titling of most manufactured homes as personal property, an underdeveloped secondary market for manufactured home loans, and pending financial regulations that could further curtail manufactured home lending.

(Photo credit: Jonathan Ernst/Reuters–Fannie Mae headquarters)

GSHS, QuikTrip Center, Tulsa, OK March 1-4

February 28th, 2012 Comments off

The Great Southwest Home Show, billed as the World’s Largest Indoor Manufactured Home Show, is packing a wallop of seminars, forums, and workshops in addition to all the vendors and homes from the nation’s foremost manufacturers. March 1 and 2 will be Industry Days with workshops ranging from new financing options to attorney Kurt Kelly’s presentation on MHC management, billed tongue-in-cheek, as “Here’s How Me, Daryl, and My Other Brother Daryl Ran Our Park and Why We Got Sued So Many Times,” and his Top Ten dumb management ideas. MHProNews publisher L.A. Tony Kovach will disclose proven strategies to attract more customers to retail and to communities, and Dick Ernst will moderate a panel of the top seven MH lenders, each of whom will give their best shot. The government will get in on the act with a Small Business Administration (SBA) official presenting a revised floorplan lending program, and Sherrie Clevenger will give tips and insights on getting the most out of your appraisal. March 3 and 4 will be Public Days. For more information go to www.mhao.org