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Posts Tagged ‘Kevin Clayton’

The Report, Warren Buffett, Kevin Clayton and Clayton Homes

February 28th, 2017 Comments off
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Buffett and Kevin Clayton. Credit: Reuters.

When the “Oracle of Omaha” speaks, people listen.

Actually, millions of people listen.

On February 25th, Warren Buffett delivered his annual letter to shareholders. In his letter, the manufactured housing industry was front and center, as Buffett discussed Clayton Homes.

Clayton and Berkshire have been a wonderful partnership,” wrote Buffett.

Kevin Clayton came to us with a best-in-class management group and culture. Berkshire, in turn, provided unmatched staying power when the manufactured home industry fell apart during the Great Recession.

According to the Knoxville Sun-Sentinel, for the second year, Buffett also defended Clayton’s financing practices. In 2015 a joint Seattle Times, Center for Public Integrity and BuzzFeed investigation accused Clayton Homes of pushing minorities into high-interest predatory loans, which Clayton has strongly denied. The Daily Business News covered this story extensively, separating fact from fiction.

That story is linked here.

Last year Clayton had to foreclose on 8,304 manufactured-housing mortgages, about 2.5 percent of its total portfolio, wrote Buffett.

He also spoke to Clayton’s efforts to assist those who were having trouble with payments, writing about Clayton’s loan-extension and payment forgiveness programs.

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Buffett with Clayton team members. Credit: CNBC.

Last year about 11,000 borrowers received extensions, and 3,800 had $3.4 million of scheduled payments permanently canceled by Clayton. The company does not earn interest or fees when these loss-mitigation moves are made,” wrote Buffett.

Since we lose significant sums on foreclosures – losses last year totaled $150 million – our assistance programs end up helping Clayton as well as its borrowers.”

For all of 2016, 94 percent of Clayton’s loan balances were current on payments.

Clayton’s pretax profit rose 5 percent to $744 million, primarily from its $13.3 billion mortgage portfolio.

Revenue rose 18 percent to $4.23 billion, and with the sale of 42,075 homes, accounted for five percent of all new home sales nationwide.

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Clayton Homes figures from Warren Buffett’s annual letter, listed as Manufactured housing and finance.

The company accounts for about 2 percent of Berkshire’s overall profit, and employs 14,677 people throughout the U.S.

Clayton Homes is the largest producer of manufactured homes (MH) in North America. Vertically integrated, the company has several hundred retail centers nationwide. Through its affiliates and family of brands, Clayton builds, sells, finances, leases and insures Clayton-built manufactured and modular homes.  The operation also buys products and uses services from other producers.

For the most recent closing numbers on all Berkshire Hathaway – and all MH industry-connected tracked stocks – please click here. 

Buffett’s annual letter is linked here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronewsSubmitted by RC Williams to the Daily Business News for MHProNews.

60th Anniversary Home, “Proud to carry on tradition of Jim Clayton”

February 1st, 2017 Comments off
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Credit: Clayton Homes.

Clayton Homes, one of the nation’s largest builders of manufactured housing and a subsidiary of Warren Buffett’s Berkshire Hathaway (BRK/A), is celebrating.

I’m so proud to continue the tradition my father, Jim Clayton, started – making the dream of homeownership a reality,” said CEO Kevin Clayton.

Over the past 60 years, we’ve welcomed families home to well-built, affordable, sustainable housing with smart storage, thoughtful amenities and room to grow.”

 

In honor of the occasion, the company has designed The Clayton Built Anniversary Home, a three bedroom, two-bathroom model with 1,216 square feet of space.

The home is available with the Energy Smart upgrade that includes Low-E windows, a programmable thermostat and several other energy efficiency features.

Vertically integrated, Clayton Homes has several hundred retail centers nationwide. Through its affiliates and family of brands, Clayton builds, sells, finances, leases and insures Clayton-built manufactured and modular homes. The operation also buys products and uses services from other producers.

For more information on the announcement, click here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

“An Elephant Ass,” Understanding GSEs, Duty to Serve, Manufactured Home Lending

January 28th, 2017 Comments off

PimpleOnElephantsAssGSE-FHFA-ManufacturedHomeLending-MHProNewsThe manufactured homes chattel lending market poses challenges and risks for the enterprises

– FHFA statement in its request for comments on the Government Sponsored Enterprises (GSEs) Duty to Serve Manufactured Housing.

 

This is a great opportunity for consumers of affordable housing to have additional lending options…”

– Cody Pearce, President, Cascade Financial Services.

 

Mark my words, it will get dismissed by some as small and insignificant….”

– Paul Bradley, President, ROC USA.

 

Mammoth losses incurred by the GSEs and other mortgage lenders in the 2008 housing/mortgage crisis made the losses on manufactured housing in the early 2000s look like “…a pimple on an elephant’s ass.

– Manufactured housing industry veteran’s off-the-record remark to MHProNews.

 

Systematic controls in the 2000s” by remaining manufactured home industry lenders
resulted in much better loan quality and benefited consumers as well.”

 – Marty Lavin, JD, MHI Totaro award winner for lifetime industry contribution in MH lending,
former consultant to Fannie Mae on manufactured home lending.

 

Getting more lending into the manufactured housing space is not a simple snap of a finger and “poof!” it’s done. Getting more lending starts…with the three prongs of needed Education. It relies too on the 4S’ of good lendingSafe, Sound, Sanitary and Sustainable.”

– Titus Dare, SVP, Eagle One Financial and factory-built housing industry veteran.

 

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Brian Collins, credit, National Mortgage News.

The recent column by Brian Collins in National Mortgage News entitled Why FHFA Is Seeking More Data on Chattel Loans resulted in a range of responses from manufactured housing industry professionals.

The quote from Fannie is illuminating,” said M. Mark Weiss, President, and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR).

It’s been nearly a decade since DTS was enacted by Congress,” Weiss told MHProNews, “and FHFA is just now seeking information on the chattel loans that comprise 80% of the market — with no assurance that there will ever be a chattel program — and that’s portrayed by some as progress?”

In a separate and related op-ed on Industry Voices, Weiss said, “If Congress had meant the “duty to serve” to be optional, it would not have called it a “duty.

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Text and image credit, MHProNews.com.  To see Weiss’ commentary, click here or the image above.

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Cody Pearce, CMB, photo credit, LinkedIn.

Cody Pearce, President of Cascade Financial Services said, “We look forward to working with the GSE’s in forming the basis for their lending objectives as they strive to meet DTS requirements.  We are hopeful that the credit box created will truly cater to lower income and lower FICO borrowers.”

I understand the desire from industry insiders to want a chattel program immediately, however, the GSE’s were burnt and burnt badly by the Conseco/Greentree debacle of the late 90’s,” said Barry Noffsinger, in a longer comment that will be posted soon on Industry Voices. “I view this as a journey to explore where their fit is in our industry.”
Concerns and Red Flags?

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Industry professionals assert that some, but not all, in the GSEs, media or in federal policy positions have little or no clue about the evolution from trailer houses, to mobile homes to modern HUD Code Manufactured Homes. Image credit, and story linked here – on MHLivingNews.  There have been no mobile homes built in the U.S. for over 40 years.

A regional manufactured home lender has told the Daily Business News that their program has worked very well.  They said that perhaps their biggest exception is when a repossession occurs in some community where the operator fails to honor their “park agreement,” to help them rapidly sell that home, and for a reasonable price.

Worse still are cases, that firm said off-the-record, when a community essentially punishes a lender by charging lot rent – or getting exorbitant amounts to do refurbishing of a home – before it goes back to market.  That lender refers to those communities they actively do business with as ‘partners.’  That partnership – or strategic ally – perspective would be common among most non-recourse, third-party lenders in manufactured housing.  The prudent and moral professional doesn’t burn a partner.

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Paul Bradley. photo credit: Fosters. For an in-depth interview with Bradley, click here.

Those insights dovetail with comments from ROC USA’s Paul Bradley, who says that even when the Enterprises hopefully become active in lending on manufactured homes in communities, they will likely be selective in which communities they do business in.

Another warning flare from the vantage point of “the Enterprises” is this.

Sorry, but the GSEs and secondary market just don’t get excited about hearing “Blue Book” when it comes to valuing a home,” said Titus Dare, SVP of Eagle One Financial to MHProNews last summer.

Dare presaged the concerns implied by the words used in the National Mortgage News column, when Collins quoted the FHFA saying, “Historically, many manufactured home chattel loans have performed poorly, the collateral has generally depreciated, and many chattel loan origination and servicing practices have lacked important borrower protections.”

But Dare himself pointed out that the GSEs have some chattel loans in their portfolios.

Furthermore, the Enterprises also have successfully done mortgages in leaseholds, that mimic home-only, chattel lending, because ownership of the real estate is not involved. MHProNews has spoken with industry professionals who have asserted that those GSEs loans in their communities performed well; Dare independently made the same point.

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Text and image credit, MHProNews.  For Dare’s article that featued the quote above, click here.

There are numerous examples of competitive rates on manufactured home loans performing in communities; as well as of MH homes gaining as well as losing in value.

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So, when huge losses occurred in the conventional housing loan market just a few years ago, why is that overlooked today, while comparatively smaller losses almost 20 years ago on manufactured home (MH) loans are seen as a road block on MH lending now?

Caution, or Excuses? 

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Marty Lavin, JD.

Marty Lavin has previously told MHProNews that it is self-evident that the national manufactured home lenders active in the business are profitable.

In an upcoming video episode in the Inside MH Road Show series, officers of a credit union speak out about their experiences in making loans on manufactured housing for about 8 years. One of their executives said on-camera that they thought that the GSEs were coming late to the game.

That credit union reports that they have been doing loans profitably and sustainably.  Because they’re regulated, that claim rings true.

Not Everyone’s Cup of Tea…

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MHProNews Sponsor, for more information, click the banner above.

It should be noted that while most of the public comments on the FHFA and the GSEs Duty to Serve (DTS) manufactured housing favor the implementation of the law, there are those within the industry who quietly resist or oppose the GSEs ever doing chattel lending on MH.

This is one of the undercurrents that is rarely, if ever, reported by others in media. Yet it is an important factor to consider in why the pace of progress on the issue might be so slow.

The Need?  The Goal? The Impact?

Several public DickErnst-creditMHC-MD-com-postedDailyBusinessNewsMHProNews-comments at trade shows and other events by Financial Services Chairman Dick Ernst are worth noting.

Ernst said during lender panel discussion that there is no practical limit to the capacity of manufactured home lenders to make qualifying loans. When he asked those lenders on those panels about that point, they concurred.

So, if there is “no lack of capacity” to make loans that meet MH lenders current criteria, what then is the goal for the industry in pushing the GSEs for the Housing and Economic Recovery Act (HERA 2008) mandated Duty to Serve?

Borrower FICO scores in the 10th percentile have marched higher from mid 500’s in 2001 to 650 today,” said Cascade’s Pearce, “while GSE credit scores for first time borrowers is 742 and 755 for repeat borrowers.”

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Pearce’s statement was part of a longer one to be published on Industry Voices, in which he stresses his hope that the GSEs will give the lower credit score borrowers access to more affordable lending.

FICO scores are used by lenders in part to assess their risk in making a loan, the likelihood of timely repayment, and overall loan performance.  While some lenders and land-lease communities have done loans on manufactured homes to customers with lower credit scores successfully – as was previously noted – but those loans often require more servicing.

Cascade’s president’s full comments to MHProNews will be published soon on Industry Voices, as will Bradley’s, Noffsinger’s, Weiss’ and others cited in this report.

Appreciation, Depreciation and Exit Strategies

Perhaps the most problematic and troubling statement to forward-looking industry professionals in Collins’ column, Why FHFA Is Seeking More Data on Chattel Loans, has to do with the agency’s assertion that manufactured housing historically loses value.

How fair or accurate is that claim?

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Barry Noffsinger, photo credit, MHProNews. For an in-depth interview, see A Cup of Coffee with…Barry Noffsinger, at this link here.

Contemporary facts and data, says Noffsinger, demonstrate otherwise.

Manufactured housing, just like site built homes, can both appreciate and depreciate.  There are many factors such as location, market conditions, mobility, the condition of the home, etc.  that effects the home’s value,” Noffsinger told MHProNews.

MHARR’s CEO stressed a kind of discriminatory hypocrisy.

When it comes right down to it,” Weiss said of the GSE’s reluctance to loan on manufactured homes, “it’s a double-standard — they downplay the risk of large site-built mortgages despite huge losses previously, while they play-up the risk of MH chattel loans based on comparatively much smaller losses.”

In the light of developments and the range of views, Dare’s commentary last summer bear another, closer look.

Thinking in part about the reasons why profitable U.S. Bank pulled the plug on their sustainable manufactured home lending program, Dare said, There aren’t just barriers of entry, in fact there are barriers for staying in manufactured housing.”

Overlooked and under-discussed is a crux issue, summed up by Dare in this notable quote by the industry’s best known billionaire, “Kevin, it seems to me that the problem with your industry is resale,” Warren Buffett told Kevin Clayton. 

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The more real estate like the exit-strategy is for manufactured home owners and lenders, Dare says, the more attractive and sustainable the MH market becomes for consumers and investors alike.

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Dare argued in a series of columns on MHProNews that there are several factors – including education, public policy, image, media, and the need for certain systemic changes – necessary in order for manufactured housing to achieve its widely-recognized potential.

Will the new Trump administration be helpful in this process?  It is possible, because the president and his surrogates have often said that they want to “enforce the law.”

Will industry players do what is needed to assure the support of public officials and policy advocates?

We missed this chance 10 years ago with the Freddie Mac program in land lease communities,” Paul Bradley, President of ROC USA told MHProNews.  “We’re getting a second bite at the apple.  I hope we don’t spit it out.” ##

 

Editor’s notes – Follow up reports on MHProNews and via Industry Voices commentary will dive more deeply into these and other pressing questions on MH industry lending, DTS and the GSEs.

Let us hereby note this publishing principle – “Often First; Always the Best Industry Coverage.”  ©

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With that new tag line/mantra in mind, please note that MHProNews has been pioneering something new in trade publishing; it’s new even for the news media in general.

Every writer, every editor picks and choses what they include – or leave out – of a story.  It’s a necessity, as stories would become too long and unwieldy otherwise.

That said, MHProNews has often published the full comments on Industry Voices of those we ask for or who offered their input on issues.  Then, as do others in news, we use what fits the article.  But by publishing the full quotes as shared via Industry Voices , that allows our industry readers, researchers, and others the opportunity to digest all that was said by those cited.

If you’ve seen that done elsewhere, please point it out.  We believe this a pioneering step for the best trade publishing practice. It also gives policy advocates, researchers and serious readers an opportunity to dive deeper, for a more robust understanding of each quoted person’s perspective.

In an era of low trust in journalism, MHProNews believes that is an important step in transparency, credibility, and integrity.  That allows us to honestly say this long-standing, fair-and-balanced tag line, “We Provide, You Decide.” ©  ###

(Image credits are as shown above.)

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

Clayton Homes Announces New Home Buyer Tool

January 13th, 2017 Comments off
kevinclaytonl-warrenbuffettr-inclaytonhomecredittodayonline-postedmanufacturedhousingindustrydailybusinessnewsmhpronews

Kevin Clayton, left, Warren Buffett, right, standing in a Clayton Homes model. Credit, TodayOnline.

Clayton Homes, a subsidiary of Warren Buffett’s Berkshire Hathaway (BRK/A) has announced its commitment to make the home buying process an outstanding experience for customers during every single step.

With the release of a news infographic, They can now guide the customer through the experience of shopping for a home.

The company tells MHProNews that the infographic walks customers through the complete “homebuyer’s journey,” from browsing the website to becoming a homeowner.

Clayton already offers a number of tools for navigating the homeownership process on its website, including a “Learn” page that provides helpful articles and videos that educate customers on what they can expect.

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The new Clayton Homes infographic. Credit: Clayton Homes.

The Learn section of Clayton Homes is full of helpful resources and guides for homebuyers,” said Clayton CEO, Kevin Clayton.

We want people to know what to expect at every step of the way because a better informed customer creates an empowered homebuyer. When the process is demystified, our customers are able to better make informed decisions and truly enjoy the journey of finding, designing and buying a Clayton Built home that is perfect for their families.

Clayton is further enhancing the home-buying experience through the unveiling of its newest customer experience initiative, “Building Happyness.” The mantra is designed to remind Clayton team members that every customer touchpoint is an opportunity to make the experience extraordinary.

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Clayton Fusion model, New Durham Estates, Westville, IN.

We are always looking to provide the best customer experience possible at every step of the home-buying process,” said Clayton.

As a company providing the dream of home ownership, we are responsible with helping each customer in their pursuit of happiness. We will deliver an outstanding experience by continuing to push ourselves to focus on innovation, sustainability, quality and durability.

Clayton Homes is the largest producer of manufactured homes (MH) in North America. Vertically integrated, the company has several hundred retail centers nationwide. Through its affiliates and family of brands, Clayton builds, sells, finances, leases and insures Clayton-built manufactured, modular homes.  The operation also buys products and uses services from other producers.

For the most recent closing numbers on all Berkshire Hathaway – and all MH industry-connected tracked stocks – please click here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Clayton Homes Makes a new Acquisition

December 1st, 2016 Comments off
claytonhomesmakesacquisitioncreditdoylemobilehomes-postedtothedailybusinessnewsmhpronewsmhlivingnews

Jim Clayton, David Doyle and Kevin Clayton. Credit: Doyle Mobile Homes.

Clayton Homes, a subsidiary of Warren Buffett’s Berkshire Hathaway (BRK/A) has acquired Flemingsburg, Kentucky based manufactured home retailer Doyle Mobile Homes. Terms of the deal were not disclosed.

Clayton Homes will turn Doyle Mobile Homes into a Clayton Home Center, and current owner David Doyle will remain with the operation as general manager.

I’ve known David Doyle and his family my entire career,” said Kevin Clayton, CEO of Clayton Homes. “We are so fortunate they have decided to join Clayton Homes. Their home center was inducted into the Hall of Fame in 2001 and their home center is achieving a 98 percent Customer Service Index score, which has rarely ever been done.

Brothers and World War II veterans, Russell and Adrian Doyle, founded Doyle Mobile Homes in 1962. For the past 30 years, the company has been an exclusive Clayton homes distributor and was recognized as a 2001 CMH Hall of Fame sales center, making it the fourth business to be given this recognition.

The CMH select designation is bestowed on those retailers/builders that exemplify a level of excellence in service and a long time commitment to Clayton Built manufacturing.

We’re thrilled to join the Clayton family,” said David Doyle. “We’ve been selling Clayton homes in this community for a long time, and we’re going to continue to do so while maintaining our commitment to customer service. Flemingsburg is a tight-knit community of just over 3,000 people and we plan on remaining a vital business to the families of this area.

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Credits: Clayton Homes, Doyle Mobile Homes.

Clayton Homes is part of one of the industry-connected stocks monitored each business day, here on the MH Industry’s leading professional news resource, the Daily Business News, on MHProNews.

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Credit: Clayton Homes.

For the most recent closing numbers on all Berkshire Hathaway and all MH industry-connected tracked stocks, please click here. ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

 

MH Industry Leaders Pursue New Marketing Strategies

May 25th, 2016 Comments off

manuf home   royal homes of raleigh  nc  creditAt the 2016 National Congress & Expo for Manufactured and Modular Housing held in Las Vegas, 700 manufactured housing (MH) professionals heard a panel of industry leaders state that, with the onset of seniors downsizing, single-parent households and Millennials becoming the largest consumer group, the time is ripe for MH to move to the forefront of affordable housing.

According to sbwire, the discussion revealed the U. S. needs 1.3 to 1.4 million housing starts annually to keep up with demand, and that 55 percent of new mortgages are for first-time home buyers.

Noting the value of the entry-level market “that brought us to the dance,” CEO Kevin Clayton of Clayton Homes said MH producers are reaching out to a broader range of potential consumers who are just now discovering the MH lifestyle, with a focus on price, image, aesthetics and marketing strategies.

Energy savings and curb appeal have to be part of that draw, said Clayton, who said MH interiors are modern, and emphasized his company is drawing a bead on enhancing the exteriors away from the traditional skirting and low roof lines.

Now that the interior is nailed, we need to destroy that trailer image,” created by the outdated exteriors, said Don Westphal, who designs and develops manufactured home communities.

Champion Homes CEO Keith Anderson said his company is altering the outside to make MH look more like site-built homes but without major cost, and is tapping into the Millennials market via social media, new websites, MHVillage and its own employee base. He added Champion has seen a 500 percent increase in website hits and leads in the last six months.

Gary McDaniels, whose Yes! Communities zero in on creating family-focused developments, said the industry can meet every price point, but most consumers are looking for a clean, secure and affordable place to raise their families.

For more on what industry leaders had to say about the future of factory-built housing, see “Where do we go from here?” on MHProNews here.  ##

(Image credit: Royal Homes of Raleigh)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Clayton Weathers Storm, Turns $706M Profit in 2015, 2016 Looking Good

May 6th, 2016 Comments off

clayton_knoxnews_shelley_kimel_creditDespite all the criticism aimed at Berkshire Hathaway’s Clayton Homes over allegations of predatory and discriminatory lending through its two finance wings, marketing director Carl Hill said Clayton has had a very good spring and continued year-over-year growth, according to reuters. As MHProNews has reported monthly, manufactured home (MH) production has been on a rebound since Aug. 2011, and is currently up 25 percent over last year at this time.

Noting that nobody wins if an MH has to be repossessed, Hill said Clayton sold over 34,000 homes last year, resulting in revenue of $3.58 billion, producing a pre-tax profit of $706 million.

He also said one-third of Clayton’s borrowers are Millennials, mostly renters and those with lower credit scores. The next largest percentage are retirees looking to downsize. The prices for the MH start below $50,000, but Hill said the “vast majority sell for under $150,000.”

Speaking at the annual Berkshire Hathaway shareholder’s meeting, Berkshire Chairman Warren Buffett, who had praised CEO Kevin Clayton in Feb. during the firestorm of criticism, said only 2.64 percent of Clayton’s MH loans went into default last year, although the company did lose $157 million on 8,444 foreclosures. What percentage of these originated by other lenders was not disclosed.

As MHProNews reported April 29, 2016, Clayton expanded its reach into the site-built home building market by acquiring middle-Tennessee builder Goodall Homes, its second such acquisition following last year’s $50 million purchase of Chafin Communities of Georgia, as reported here Nov. 2, 2015. ##

(Editor’s Note: for a related story on Warren Buffett, click here.)

(Photo credit: knoxnews/Shelley Kimel)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily business News-MHProNews.

Clayton, Next Step, NeighborWorks Collaborate on Low-income Housing

April 18th, 2016 Comments off

waco_neighborworks__wacotrib_slash_Jerry_Larson__Steve_Fulton_Clayton_one_half_duplexAs part of a joint attempt to create more affordable housing in Waco, Texas, Clayton Homes in Waco is building a modular duplex to be sited on a lot owned by non-profit NeighborWorks, according to what wacotrib informs MHProNews. Each of the two 1,100 square foot units will feature three bedrooms, two baths with appliances and will rent for $900 a month.

Roy Nash, president and CEO of NeighborWorks Waco, expressed hope this is the first of several modular duplexes Clayton will build in conjunction with his organization and Louisville, KY-based Next Step, which seeks a network of builders to help replace two million energy-inefficient homes, as well as organizations that can offer low-cost financing.

Clayton Homes’ Steve Brady says CEO Kevin Clayton has a longstanding relationship with Next Step and is supportive of the non-profit’s mission.

CEO Chris Nicely of Next Step said his organization is acting as a liaison between Clayton and Waco’s NeighborWorks. “We see this effort as one that will produce high-quality and energy-efficient housing for those who need it most,” Nicely said. Families that lease space in the duplex may later decide to own their unit.

Work crews are expected to have the duplex ready for a public showing around mid-June. There are more vacant lots near Waco’s inner city that are also suitable as sites for housing for low-to middle-income residents.

Nash said NeighborWorks and Next Step will split a Clayton rebate worth about $12,000 as partners in the project.

Stacey Epperson, president of Next Step, said, “We believe factory-built homes are the answer to America’s growing affordable housing crisis. The right-sized home at the right price allows NeighborWorks Waco and other nonprofits to serve more deserving families. We are happy to be a part of the solution.” ##

(Photo credit: wacotrib/Jerry Larson–Steve Fulton of Clayton Homes in front of one of the duplexes)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Clayton to Open Texas Plant, as it Celebrates 60 Years in Business

April 13th, 2016 Comments off

Clayton_Homes__prnewswire__creditThe Athens (TX) City Council adopted a resolution in support of the Athens Economic Development Corp.’s $300,000 incentive package for jobs created by Clayton Homes bringing a manufacturing plant to the city, according to athensreview.

The council agreed to a property tax rebate for Clayton over a five-year period, beginning with 100 percent, dropping to 65 percent the second year, 45 percent the third year, and 25 percent each of the two remaining years. Athens, TX is just southeast of Dallas. As MHProNews knows, Texas is the number one shipment state for manufactured homes in the U. S.

Meanwhile, Clayton is celebrating its 60th year in business. Founded by Jim Clayton in 1956 with one retail center in Knoxville, Tennessee, the company has become one of the largest homebuilders in the nation, as reported by prnewswire.

Kevin Clayton, Jim Clayton’s son and current CEO, said, “I’m so proud of the level of quality and innovation our homes have attained over the last 60 years. This year we predict over 34,000 families will trust us to help them find the best home for their lifestyle and know that we will be there long after their purchase.”

In 2003 Warren Buffett’s Berkshire Hathaway acquired Clayton. ##

(Photo credit: prnewswire-Clayton Homes on Clinton Highway, Knoxville TN)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

John Kalec Grew Clayton through the Recession, Leaving after 20 Years

April 4th, 2016 Comments off

john_kalec_retiring_cfo_of_claytonJohn Kalec, Clayton Homes Executive Vice President and CFO, has announced his retirement after 20 years with the company, according to a press release reported by thedailytimes to MHProNews.

Focusing on strategic and operational activities, Kalec led the accounting and financial teams at Clayton. “Specifically, he has helped lead the company toward organic growth through multiple acquisitions and a housing recession,” the press release stated.

After Berkshire acquired the company in 2003, Kalec corresponded with other Berkshire counterparts.

Said Clayton CEO Kevin Clayton said in a statement, “John’s guidance and wisdom throughout the years cannot be measured or described in words. Under his watch, the company more than tripled in size.”

Amber Krupacs, also the CFO for Clayton’s Vanderbilt Mortgage, will replace Kalec. ##

(Photo credit: thedailytimes–John Kalec)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.