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Posts Tagged ‘Manufactured Housing Assoc Regulatory Reform’

Manufactured Home Industry Groups Fighting Hard, Meanwhile, a Man Died

January 18th, 2019 No comments

 

EdSperawDMHOAManufacturedHomeIndustryGroupsFightingHardMeanwhileManDiedDailyBusinessNewsMHProNews

We as an independent manufactured home producer’s association have often worked successfully with resident groups, on issues of mutual interest. We don’t deal with community related issues directly. I believe that people of good will may agree or disagree on details, and still have mutual respect. Let me express my sincere condolences to those touched by the loss of Ed Speraw.” – Mark Weiss, JD, President and CEO of the Manufactured Housing Association for Regulatory Reform.

 

It goes without saying among numbers of manufactured home community (MHC) owners and managers, that activist resident groups are often viewed dimly. Resident activists routinely return that perspective.

That’s a recipe for years of more acrimonious relationships.

Recently, Ed Speraw – the former President of the Delaware Manufactured Home Owners Association (DMHOA) – died.

The Daily Business News on MHProNews pondered how the word of that passage of Speraw from this life might best be handled.

We reached out for comments from resident group leaders and manufactured home industry leaders. We obtained two, one a professional – above, another from a friend of the deceased.

Those and more are available via the linked text/image box posted, below.  It explores areas of agreement, and disagreement, and where common ground may be found.

 

Ed Speraw, Manufactured Home Owner “Hero”, dies at 81

 

Teachable Moment?

Editorially, MHProNews management hopes that this might be a conversation starter. The report above will certainly cause some to react or think.

The industry’s leadership on the MHI/NCC side has sadly failed to bridge the gap with resident groups. There is arguably little-to-no trust.

Monopolistic practices arguably hurt residents, most small-to-mid sized businesses, and the new home sales levels of our industry.  That’s one of several possible foundations for mutual advocacy efforts.  Further, there are thousands of independently owned manufactured home communities where residents and management get along just fine.  This writer has seen that first hand, in communities from border to border.

While some keep spinning the pipe dream that pretty pictures or slick videos will solve what has ailed new manufactured home sales, years of fact-checks, new home shipment tallies, and following-the-money prove otherwise.  Part of the challenge is ‘resident relations.’  When residents have to sue, for example, the MHI chairman, that’s not cause for enthusiastic trust.

How many other industries have such a significantly acrimonious relationship with a significant percentage of their product owners?  While customers do sue other product makers, or may protest something, those other industries are already thriving. No so, manufactured housing.

Education is needed all around. It’s arguably overdue to break through thin egg shells. Instead of living in disconnecting white silos, by cracking shells, why not mix it up, and enjoy some omelets?

 

RestInPeaceObituaryManufacturedHousingIndustryDailyBusinessNewsMHproNews

 

MHProNews extends it’s sincere condolences to those touched by the loss of Ed Speraw, may he rest in peace. “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
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Manufactured Housing Institute’s Three Stooges? SECO ‘Leaders’ George F. Allen, Spencer Roane, Tom Lackey and ‘Rent to Own’ Scams?

 

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

Manufactured Home Resident Group President Cautions Against MHAction, Surprising Background Reveal to Manufactured Housing Action

Nathan Smith, From Mobile Home Resident to SSK Communities Owner and President Barack Obama Connection

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Surprising Discovery on Manufactured Housing’s Enhanced Preemption, Hidden Gem$

January 9th, 2019 No comments

 

SurprisingDisocveryManufacturedHOusingIMprovementAct2000FederalEnhancedPreemptionDailyBusinessNewsMHProNews

One advantage that HUD Code manufactured homes have over other types of factory building that keeps costs lower is that it is federal and enjoys the enhanced preemption established by the Manufactured Housing Improvement Act (MHIA) of 2000.

 

There are some items that the Daily Business News on MHProNews sets out to research deliberately, others that come in as news tips, still other issues or topics are just stumbled upon. In this instance, in the course of doing some research on the subject of “manufactured housing” and “enhanced preemption,” the following results shown below are what appeared.

As a quick and simplified background, several factors online influence SEO or search engine optimization. Among them are time on-line, back-links, traffic, is it a mobile or desktop search, your location (same search – especially mobile ones – different locations may result in a different results) and more

Often, but not always, if two generally equal websites exist, but one has been online longer, it will often tend to get a higher Google ranking, for reasons noted in part above.

Then, when it comes to specific topics, key word usage can become more interesting.

What you will see below is the first few pages of mobile searches from 2 evenings ago, for the words – “manufactured housing” “enhanced preemption” – placing those words in quotes forces a search engine into a more precise outcome.

The Manufactured Housing Institute (MHI) has been online for about 20 years.  About two years ago, they reportedly spent a boat-load redoing their website.

So, who comes up first for the mobile search terms – “manufactured housing” “enhanced preemption” – two nights ago in Lakeland, FL?

 

Here are the unedited results, summarized below.

 

  • The first 2 images that come up under the image search function on Google are both from MHProNews, under the mhmarketingsalesmanagent.com URL. As has been noted previously, MHProNews has numerous URLs, some of which will be demonstrated in this analysis.

 

Then, we have a new site under development, that should be ready by the end of the first quarter of 2019. It’s the 9th result, even though we are not yet promoting that website.

 

  • #10 HUD.

 

  • #11 is a paid ad, irrelevant to the search, that’s Google making some money.

 

  • #12, cites John Bostick of Sunshine Homes, on the Gov’t Publishing Office website, in 2012.

 

  • #13 House Financial Services Committee (FSC), in 2011 testimony by MHARR.

 

  • #14 is a post MHProNews placed on ZipRecruiter, as part of a project for an attorney for possible litigation of industry related issues.

 

  • #15 is the NJ state association website. We know first-hand that the NJ state association website is about 2 years old. Interestingly, that’s the very first mention of MHI – the Manufactured Housing Institute – on the topic of Enhanced Preemption.

 

  • #16 – Then, finally! MHI is found on Constant Contact, likely in an email message to their own members.

 

  • #17 is MHProNews again, with another URL that we have – and there are many such URLs – for MHProNews.

 

EnhancedPreemptionGoogleSearchJan92019ScreenCaptures172019-DailyBusinessNewsMHProNewsEnhancedPreemptionGoogleSearchJan92019ScreenCaptures172019-DailyBusinessNewsMHProNews2

EnhancedPreemptionGoogleSearchJan92019ScreenCaptures172019-DailyBusinessNewsMHProNews3

 

So, summing it up. The MHARR website – which is less than 2 years old, led the pack.  Next, MHProNews and MHLivingNews dominated these results 2 evenings ago.  Once more, the results could be different in a different part of the country, but on this type of issue – “manufactured housing” “enhanced preemption” – will likely be similar.

 

The Surprises From This Research?

Why are MHI’s result on this issue so poor?  Note that NONE of these results came up on the MHI website.

There are several possible explanations.  To cut to the chase, we went directly to MHI’s website.

We did the exact same search using the same search parameters, with the MHI website search tool.

The first search, nothing. “No Results.”  See the composite screen capture, below.

 

ManufacturedHousingInstituteLogo2019-01-09_1250ManufacturedHousingEnhancedPreemptionSearchMHProNews

 

The next search, this time, using only “Enhanced Preeemption” – once more, “No Results.

 

ManufacturedHousingInstituteLogo2019-01-09_1250ManufacturedHousingEnhancedPreemptionSearchMHProNews2

 

The third search, removing the quote marks – just in case some goofy code was at work on the MHI website – and once more, “No Results.”

 

C:\Users\L. A. Tony Kovach\Downloads\ManufacturedHousingInstituteLogo2019-01-09_1250ManufacturedHousingEnhancedPreemptionSearchMHProNews3.png

 

Once this result becomes public, do not be surprised if MHI decides to quietly – and quickly – ‘correct’ this issue. But go to MHI’s website, and check this out for yourself. We’ve asked others to do this, so that they see this first hand before MHI has time to make any changes.

Again, go back to the original mobile search results, that did reflect MHI. One was on the NJ association state association’s website, the other was on Constant Contact.

When manufactured housing is struggling against zoning and placement issues in states and jurisdictions from border to border and coast to coast, why is “enhanced preemption” entirely missing on MHI’s website?

Three primary possible explanations are:

  • Incompetence.
  • Ignorance.
  • Deliberate.
  • Some combination of those three bullets above. Can you think of another possibility?

Why are shipments so low? Many reasons can be and have been examined by MHProNews and MHLivingNews – or MHARR – for that matter.

But what this appears to be to a prudent analysis is that MHI is ‘apparently’ hiding “Enhanced Preemption.” Note too that while a Clayton ad came up on the search results, Clayton Homes is likewise nowhere to be found on the first pages of this Google search.

 

SubmitNewsTipsManufacturedHomeProNewsMHProNewsLogoDailyBusinessNews

Submit confidential or on-the-record news tips, or comments at this linked email mailto:iReportMHNewsTips@mhmsm.com

 

How ever one cares to spin it, doesn’t this speak volumes?  There’s an affordable housing crisis, and one of the best legal tools on the books for years – the federal enhanced preemption for manufactured housing under the Manufactured Housing Improvement Act of 2000 – is not being mentioned or promoted by MHI?  Even on their own website?

 

OneCanOnlyTurnBlindEyeToFactsForSoLongQuoteManufacturedHomeProductionMHIOmahaKnoxvilleArlingtonRichardDickJennisonLesliGoochBonusMHProNews

At the very time that manufactured home shipments have stalled or slipped for three straight months during an affordable housing crisis, where is MHI and the Berkshire brands in MHVille on this tremendous advantage? Among the related reports found below the byline and notices is the link to the report on that issue by MHARR that ranked number one. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

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Manufactured Home Production Decline Accelerates in November 2018

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New Report – More Americans Think Bad Time to Buy, Rentals Soar. Manufactured Housing, Opportunities, Takeaways?

“Major Step” in Independent National Post-Production Manufactured Housing Advocacy Taken, Per Trade Group

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“Time to Enforce the Law on Federal Preemption”

 

 

 

 

 

 

2019 Trade Shows, Next Battleground of the Manufactured Housing Revolution?

January 7th, 2019 No comments

 

2019TradeShowsNextBattlegroundTheManufacturedHousingRevolutionDailyBusinessNewsMHProNews

Capital, other market manipulations, plus an apparent failure by the Arlington, VA based Monopolistic Housing Institute (MHI) to deliver on their self-proclaimed ‘promotion’ of the industry are obvious takeaways from the latest new HUD Code manufactured home (MH) shipment report. But those are not the only problems that the Manufactured Home (MH) industry and its numerous varied professionals face. Yet, every problem – properly understood – is an opportunity in disguise.

 

Cohesion – so called ‘unity’ – sounds like a noble goal. But for various reasons that aren’t the focus of this column, cohesion won’t possibly be achieved accept by conquest of the larger powers, OR until clear alternatives to the present Omaha-Knoxville-Arlington axis power structure in MHVille are established.

Without balanced and mutually respected interests, how else could cohesion or unity be achieved?

The aim of alternative structures in MHVille should not be to create a new monopolistic nexus that challenges the current monopolistic one.

Rather, the goal should be to fuel in an authentic manner what made manufactured housing a far greater – in sheer size and scope – the industry in the past to begin with. Diversity! Thousands of MH Independents, and hundreds of different independent producers.  There was diversity galore in those MH Industry glory days gone by.  That’s how growth is proven to occur.

 

Genuine vs. Weaponized Insights

To be historically more accurate about manufactured housing, what too many industry pros never lived through – and thus never understood – is that the old Fleetwood and the old Champion home builders each established their own unique vertically integrated machines in the 1990s.  Those firms are not the Fleetwood or Champion of today, but the names are similar.

The old Fleetwood and the old Champion had a similar thirst for market domination as Warren Buffett, Berkshire Hathaway, Kevin Clayton and Tim Williams at 21st Mortgage jointly share. The ongoing relevance of the Manufactured Housing Association for Regulatory Reform (MHARR) has long been as a counterweight to the Machiavellian Housing Institute, err, Manufactured Housing Institute, then or now.

ManufacturedHousingInstituteLogoMHILogo373x201

Satirical Manufactured Housing Institute (MHI) logo provided under fair use guidelines.

The names at the top of the pile at MHI have changed, but the challenges have has some similarities.

Monopolistic practices that manipulate capital access, political, placement, and regulatory schemes are the enemy. What MHARR, or National Federation of Independent Business (NFIB) have done for decades for smaller firms is provide the authentic cover that MHI has arguably long neglected.

Hundreds of manufactured housing firms, per sources at NFIB, are members of that organization. If the MH industry felt fully represented by MHI, what would lead so many to join organization’s like MHARR or NFIB? What would spark the revolt among community owners that has led to NAMHCO? New and existing alternatives to MHI should be fueled, not thwarted.

The Omaha-Knoxville-Arlington axis is simply better at building moats than Fleetwood and Champion were. By ‘better,’ one should understand ‘cheaper.’

For example, the old Fleetwood and Champion arguably overpaid in many cases for the retail centers they acquired. By contrast, the evidence in the linked reports reflect that Buffett’s style of moat-building underpays for businesses. They accomplish that by artificially depressing sales and thus business and/or property valuations.

That process thereby creates the “value” acquisition Buffett and his longtime partner Charlie Munger crave. The rest are details and commentary.

Manufactured Home Production Decline Accelerates in November 2018

It is Buffett who reportedly said he wants sharks in the waters of his Moat, not MHProNews. We simply accept that – plus the evidence of his, Kevin Clayton, and Tim Williams – each at their own words. Perhaps one reason why – until this point in time – that their respective attorneys rattle sabers in our direction instead of just sue, is that they know that it is hard to argue with their own words.

ManufacturedHousingInstituteLogoMHILogoMHARRlogo600

Which leads us to trade shows and the opportunity for the next phase of the Manufactured Housing Revolution.

New Era in National U.S. Manufactured Home Community Representation Underway?

 

 

Show Ways Unlimited and Manufactured Housing Trade Shows

Sources with close ties to Show Ways Unlimited are among those that shed light on how Clayton allegedly manipulated the now defunct Carolina show, and tipped it out of existence. Those same informed sources have said that Clayton only entered the Louisville Show as a defensive mechanism, to counter the independents who were behind the revival of the show. Team Clayton has been working to undermine the Tunica Show, per sources, by establishing their own show in Birmingham, AL. Those claims are whatever they are, and should be discerned in the light of the evidence.

Meanwhile, the current trade shows are nothing like the glory days of Louisville or the Nashville Show, which was the forerunner of the Tunica Show. Back in the glory days, 100, 150, or 200 plus new homes used to crowd exhibit halls and parking lots.  Professionals from around the world attended those much larger events. The mainstream media came too, just as they do today for automotive, RV, and boat shows.

One question that potential MH Revolutionaries must ask is this. Is this going to be an industry on the rise or slide?  Do you want to enhance the income-producing and exit-value of your business, or do you want to sell it someday cheap to a monopolistic player?

One must look at authentic manufactured housing history, not the weaponized version that some like George F. (F?) Allen produces, that later version of which magically places Allen himself in the center of the MH Universe.

Allen, like MHI, is arguably a would be power-broker. If he and his MHI supported allies can succeed at diminishing the largest trade publisher in the industry – MHProNews – that would make Allen appear to be bigger than he is. It’s somewhat like taking a lake and shrinking it, to make little fish look bigger. Sad.

What MHI and Allen have in common are meetings that draw a crowd, however modest. Never mind that those crowds are small compared to a manufactured housing trade show. For those who would shrink an industry in order to grow their own influence, it is arguably a bit like Buffett’s moats. Only G F (F?) Allen’s is discernably cruder in execution.

A key to authentically re-growing the industry has long been about more than attracting more industry professionals to an event. As or more important, one must also attract mainstream media, new potential lenders (as Triad has done for years), and investors. Then, post-industry trade days, there must also be public days.  It worked in the past, why not now?  It’s worked for RVs, and other industries, why not ours in MHVille?

 

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

Click here to learn more.

Among the most common comments heard at Louisville and Tunica every year from exhibitors is, why aren’t there public days?  The same old tired story is given in reply by show management, year after year.  Who does that old, tired cover-story benefit?

This writer had an operation that used what amounted to ‘public days’ to sell dozens of additional homes per year to retail customers. Few things would serve to remove the stigma of the industry better than spotlighting realty, instead of allowing the old ‘mobile home’ or ‘trailer house’ stereotypes to live on.

WhenTrailerTrashIsntWhatYouThinkcreditMHProNews-postedtothedailybusinessnewsmhpronewsFrankRolfe

See the entire article and other industry reactions, at this link here.

 

PewResearchRentalHouseholdsManufacturedHousingIndustryDailyBusinessNewsMHProNewsThere is an obvious opportunity to start that ball rolling at the upcoming 2019 trade shows. That is where hundreds of independent retailers and communities will be.  But those must be an organizing stepping stone to something that is entirely new in 2020.

That there is frustration in MHVille is apparent to all who will listen.

The launch of a new community association is but one example. The longtime existence of MHARR as a counterweight to MHI is another. A third is the #NobleNotMobile concept. Like MHI member Frank Rolfe’s lament against MHI and what he called their hypocrisy, Paul Bradley and ROC USA are MHI members too.  Bradley was clearly no longer satisfied with what MHI claims as promotion. Thus Bradley and his colleagues conceived of #NobleNotMobile, and that’s how frustration gave birth to action.

There are 22 million Americans living in pre-HUD Code mobile homes, and post-HUD Code manufactured homes. There are millions more in the U.S. who rent. According to Pew Research, CityLab and others, about 100 million in the U.S. are living in rentals. Most of those obviously fail to seriously consider manufactured housing as an option, in part, due to the ‘trailer’ stigma.

Ten percent of either of those 2 populations groups could swing many elections in the nation. Something similar could occur in Canada, for that matter.

The ability of the industry to achieve it full potential lies not along the proven failed path of the Manipulative Housing Institute, and the arguably hypocritical and jealous path of yesterday’s news, George F (F?) Allen.

The path is to forge new structures that fuel independents. That must avoid the problems that made MHI the Menacing Housing Institute that it has become.

The humble observations, evidence, allegations, history, and logic herein are for the industry’s and investors consideration.

Among the next questions should be this one. At what point will the bulk of the industry’s remaining independents realize that their numbers are still shrinking? They are shrinking in the community and retail sides.

The number of retailers and communities are shrinking during an affordable housing crisis.  Is that coincidence or market manipulation? Who’s side is MHI on? In that battle, who’s side has George F. (F?) Allen taken?

The new HUD Code manufactured home shipment tallies are going to be low and vulnerable to many headwinds so long as the number of distribution points, producers, capital access, and image all remain artificially limited.  That’s what producers – including MHI members – tell us.

The fact that the Omaha-Knoxville-Arlington Axis would apparently stoop to using a surrogate like George F (F?) Allen, speaks volumes. It’s the latest in a series of over-the-target reactions, previously reported. See the linked report, further below.

 

Taking Charge of Your Own Future by Teaming with Others Like Yourself

The time to take the bull by the horns is now. Hundreds of billions in new capital is flowing into the U.S. Jeff Bezos led Amazon’s Alexa Fund estimates that the market potential is $330 billion annually.

You do the math that mathematically-challenged MHI can’t or won’t do for you. They claimed, incorrectly (again), the Manufactured Housing adds $3 billion a year to the economy. At retail in 2017, the obvious math was some $6.5 billion.

Divide $6.5 billion into $330 billion.

The product of the above is how much the potential growth could be for factory-homebuilders of all kinds.

MonopolisticHousingInstituteLogoMHILogoManufacturedHousingInstiutteLogoLarge

New paths, new structures to do for retailers, communities, and all others in the industry are how that potential is to be tapped. That’s the next step in the Manufactured Housing Revolution. Ready to take that next step?  Ready to take a step that will liberate you from the Omaha-Knoxville-Arlington Axis? “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

LATonyKovachQuoteManufacturedHousingIndustryWontReachPotentialAddresscoreIssuesArtificallyholdingitback466By L.A. “Tony” Kovach – for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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

 

Manufactured Housing Institute Housing Alert, Affordable Housing Crisis, MHI’s #NettlesomeThings Response

 

Comparing Conventional Housing Data for November 2018, to Manufactured Housing Industry Data, Nov 2018

January 3rd, 2019 Comments off

ComparingConventionalHOusingDataNovember2018ManufacturedHousingIndustryDataNov2018MHProNews

Here’s the overview for this evening’s report.  First, we’ll look at HUD and the U.S. Census Bureau’s November 2018 conventional housing data.

 

Then, compare that to the data that was just published today on HUD Code manufactured homes for November of 2018.

Finally, we’ll wrap this evening up with a brief, but relevant to industry pros, advocates, and investors commentary.

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the following new residential construction statistics for November 2018:

 

MonthlyResidentialConstructionNovember2018USCensusBureauHUDDailyBusinessNewsMHProNews

Building Permits

Privately‐owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,328,000.  This is 5.0 percent (±1.6 percent) above the revised October rate of 1,265,000 and is 0.4 percent (±1.7 percent)* above the November 2017 rate of 1,323,000.  Single‐family authorizations in November were at a rate of 848,000; this is 0.1 percent (±1.4 percent)* above the revised October figure of 847,000.  Authorizations of units in buildings with five units or more were at a rate of 441,000 in November.

 

Housing Starts

Privately‐owned housing starts in November were at a seasonally adjusted annual rate of 1,256,000.  This is 3.2 percent (±9.8 percent)* above the revised October estimate of 1,217,000, but is 3.6 percent (±9.4 percent)* below the November 2017 rate of 1,303,000.  Single‐family housing starts in November were at a rate of 824,000; this is 4.6 percent (±8.4 percent)* below the revised October figure of 864,000. The November rate for units in buildings with five units or more was 417,000.

 

Housing Completions

Privately‐owned housing completions in November were at a seasonally adjusted annual rate of 1,099,000.  This is 0.4 percent (±8.7 percent)* above the revised October estimate of 1,095,000, but is 3.9 percent (±11.5 percent)* below the November 2017 rate of 1,144,000.  Single‐family housing completions in November were at a rate of 772,000; this is 5.4 percent (±7.6 percent)* below the revised October rate of 816,000. The November rate for units in buildings with five units or more was 314,000.

 

ResidentialHousingStartsHUDCensusBureauNewconventionalHousingConstructionNov2018MHProNews

— 30 –

 

Let’s put that data in the manufactured home perspective.

 

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

 

So, at the same time frame that manufactured homes dropped, conventional housing starts and permits – many times higher in retail price – were still rising.

Here’s is the latest from MHARR on the data.

 

Production Decline Continues in November 2018

 

 

 

 

A state association, Manufactured Housing Institute (MHI) cheer-leader, Amy Bliss-led Wisconsin Housing Alliance (WHA), are still putting out late this afternoon MHI propaganda.  They did so even in the face of such disturbing numbers, as is linked in the report, above.

 

ManufacturedHousingInstituteLogoMHILogoScreenCpaturesMHIvideostatisticalclaimsDailyBusinessNewsMHproNews

MHProNews has held MHI accountable for misleading and arguably deceptive statements for years. Those warnings ought to take on a new sense of urgency for savvy pros who think objectively, instead of swallowing the MHI party line.

 

The WHA’s own newsletter is now projecting possible problems for 2019. Really?  After months of MHI claiming all the good they are doing for building on the industry’s ‘progress’?

 

WisconsinHousingAllianceWHAJanuary2019NewsLetterDailyBusinessNewsMHProNEws

 

In defense of state executives in general, there are many who believe they have no choice but to put out MHI’s ‘stuff.’  Recall the Gold Rules report, which arguably still very much applies. See that by clicking the link below.

 

 

The industry’s fundamentals are sound.

  •  Product quality overall and customer satisfaction are good.
  • Third-party reports that take a dive into the facts are often positive.
  • Despite stormy stocks, the economy is overall good too.

The only common sense conclusion that an objective person who studies the issues can come to is that the so-called leaders of manufactured housing are failing the industry.

The Arlington-Omaha-Knoxville Axis (A-OK Axis ) can dress these failures up any way they want to. We are already hearing the whispers of what their spin is going to be when the MHI monthly report comes out, later this month.  We’ll fact-check it for you.

But the Monopolistic Housing Institute (MHI) has been called out, Clayton Homes, 21st Mortgage and the Berkshire Brands have been called out for their BS.

MonopolisticHousingInstitutelogoManufacturedHousingInstituteMHiLogoFairUseMHProNews306

Fertilizer is useful for growing certain things, but as a trained MD, let me say that consuming BS is not recommended for humans.

See related reports, further below.  More on this in the days ahead.

Just remember, it has been MHARR that for years has warned the industry that a new post-production association is needed. Today’s data is more proof.

 

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

 

 

 

It was MHI award-winner Marty Lavin that said that MHI was working for the interests of the big boys.  Today’s data is more proof.

 

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not make offer a cogent explanation?

 

MHProNews has been alone in the industry’s trade media at giving warnings of what is to come, for some years.

 

AllTruthPassesThrough3stagesFirstRidiculed2ndViolentlyOpposed3rdAcceptedAsSelfEvidentManufacturedHousingIndustryDailyBuinessNewsMHProNews

 

As pro-industry trade media, we’ve been laying out the facts, while most others in the industry’s trade media are laying out happy talk that is just hot air.

 

CritiqueHighlyVisibleEcnouragesIndividu8alsRaiseStandardsDavidDidauQuoteMastheadBlogManufacuredHousingIndustryMHProNews

It’s misguided for anyone to try to spin this into anything other than what it is. A sobering fact check. MHI members are among our sources.  Everyone that wants honest growth should want to see MHI admit their mistakes, and own these failures and arguably deceptive steps they’ve taken. Corrected errors benefits everyone.

 

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Why? Because we give you actionable intelligence, authentic fact-checks, reason- and evidence-based reports. The rest are details and commentary.

This is where the meaning of the tag-line MH Industry News, Tips, and Views Pros Can Use” © comes alive, as “We Provide, You Decide.” © ## (News , analysis, and commentary.)

 

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Eye Opening – Manufactured Homes in National, Global Context

December 31st, 2018 Comments off

 

EyeOpeningManufacturedHomesInNationalGlobalContextDailyBusinessNewsMHProNews

The United States of America (USA) is the largest economy in the world.  That’s what the data compiled in the infographic below from Visual Capitalist reveals.

 

UnitedStatesGlobalEconomy80Trillion19.3TrillionDailyBusinessNEwsMHProenws

 

Yet, some 40 nations around the world that have a higher rate of home ownership than the U.S., per data compiled by Wikipedia. 

 

Top49NationsInWorldInHomeOwnershipRatesGlobalHomeOwnershipRatesMHProNews602

Isn’t it a bit shocking that the ‘richest’ nation on earth ranks under 40 other countries in the rate of home ownership? But for the savvy professional, that is opportunity in disguise for affordable, safe, and greener-by-design manufactured homes.

 

When the U.S. has a stronger economy, a higher total Gross Domestic Product, and a generally higher per capita GDP, how is the relatively low rate of home ownership possible?

Let’s rephrase the question in a more manufactured housing industry related fashion.

The graphic below reveals the then latest data on manufactured home prices compared to conventional housing prices.

 

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

 

Manufactured home quality is superior to the mobile homes or trailer houses of yesteryear.  Who says?  Independent research by the National Association of Realtors™ (NAR).

 

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticaGayCororationPhotoSmallPercentageDamagedDuringHUrricanesMHProNews

 

From the video interview with an informed former HUD official – to the focus group of unpaid manufactured home owners that follow below, and more – there is plenty of evidence for the quality and satisfaction with today’s manufactured homes. 

Rephrased, there is plenty of indicators from home owners to third party sources that demonstrate that an obvious part of the solution to the affordable housing crisis is hiding in plain sight.  

So, given a raft of possible sources that prove the value of HUD Code manufactured homes, why is manufactured housing trailing conventional housing by such a wide margin?  See the data that the NAR also provided. The percentage of manufactured homes sold relative to all conventional housing is hovering near historic lows.

 

 

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

 

The Government Accountability Office (GAO) in their 2014 research found that the monthly cost for owning a manufactured home was lower than rentals, or other forms of housing.  NAR came to a similar finding in 2018.

 

 

Manufactured housing has the benefit – at least on paper – of “enhanced preemption” under the Manufactured Housing Improvement Act of 2000.  So why isn’t it aspect of the law better known, much less enforced?

 

 

Enforcing Affirmatively Furthering Fair Housing (AFFH) could create a boom for all factory-built housing, but especially so for manufactured homes, due to federally enhanced preemption.

 

Affirmatively Furthering Fair Housing, a Novel Yet Proven Solution to the Affordable Housing Crisis That Will Create Opportunities, Based Upon Existing Laws

 

This Google search done on 12.30.2018 reflects the first two pages of search results for the Manufactured Housing Improvement Act (MHIA) of 2000.

ManufacturedHousingIMprovementActof2000Seach12302018DailyBusinessNewsMHpronews

 

The Manufactured Housing Institute (MHI) has been online for about 2 decades. They just did their latest renovation of their website fairly recently.  So why doesn’t the MHI website reflect any information on the Manufactured Housing Improvement Act (MHIA) on the first two pages of the Google results, shown above?

George Allen or – any other full- or part-time surrogate(s) – for the Manufactured Housing Institute (MHI) can call these facts “conspiracy theories.”  But facts and data are what they are.

The facts beg an answer to the question, why isn’t manufactured housing performing better?

It’s a #nettlesome question that the Urban Institute – in a report fisked by MHProNews previously – similarly asked about a year ago.

Given that MHI claims to represent all aspects of factory-built housing, how does one rate their performance?

For example, when MHI claims to have reached tens of millions of potential Americans – an outrageous claim on its face, but let’s take MHI at their word on that for the next few moments – how does one explain that 2018 will close with perhaps only 100,000 (+/-) new HUD Code manufactured homes shipped?

 

ManufacturedHousingInstituteLogoMHILogoScreenCpaturesMHIvideostatisticalclaimsDailyBusinessNewsMHproNews

 

MHI created a ‘self-promotional’ video. From MHI’s video, the above composite images with commentary by MHProNews was compiled into one image.  If even 1/10th the number of 84 million Americans they claim to have exposed manufactured housing to actually read one of their advertorials – meaning 8.4 million vs. 84 million – that would mean that only 0.0119047619 of them purchased a new HUD Code home in 2018.

That’s a puny result at best.

But it is worse than that, because the year before the new HUD Code manufactured home production statistics revealed that some 92,900 new HUD Code homes where shipped.  The new home shipments were already trending up modestly on a national basis. So, an objective view of the facts reflects that no appreciable change in shipment levels took place.  Those are just facts, MHI claims, and some applied logic.

We’ve said before on MHProNews that facts are #nettlesome things. This is just part of the proof.

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

One can research the links further below under the related resources for what our follow-the-money, follow-the-facts, follow-the-evidence analysis reveals.  But as of this writing, no one at MHI, or Berkshire Hathaway, Clayton Homes, 21st Mortgage, etc. – nor surrogates like MH industry scandal-defending and -attached Allen – have tried to debunk any of these points.

We’ve repeatedly offered the powers-that-be with the Omaha-Knoxville-Arlington axis to reply to these or these concerns and issues, or those found in the related links further below.

In terms of direct response?  Nada. Silence. But what they have done are a series of purportedly indirect replies, like the MHI video, George Allen, etc. But none of their efforts refute the facts shown.  Rather, what MHI has produced are at best efforts to distract from the facts and evidence.

So, the logical, reason-led mind is left with 3 primary options.  The post-production – promoting ‘all aspects of factory-built housing’ Arlington, VA based MHI is arguably:

  1. * Incompetent.
  2. * Ineffective.
  3. * Corrupt, as it is helping a small number of firms consolidate ever larger portions of the industry.
  4. * Some combination of the above.

Can you find another logical conclusion to the evidence?  If so, sound off via the link below.  MHI supporters and defenders are encouraged to chime in.

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Submit confidential or on-the-record news tips, or comments at this linked email mailto:iReportMHNewsTips@mhmsm.com.  Please put NEWS TIP in the subject line.

 

Clearly, the leadership of MHI must think their staff are doing a fine job, as their form 990s report bonuses paid the President Richard ‘Dick’ Jennison and other key members of the Arlington-based trade group.

That would lead an objective analyst to ponder that MHI’s leadership are rewarding their paid staff’s lack of performance, which once more points to bullets 3 or 4, above.

Razzle-dazzle videos, splashy power points, or new magazines or websites that sing the praises of MHI and their “MH Insiders” doesn’t change any of what is shown above.

We once more invite their leaders or designated representatives to explain to the industry at large via a video recorded and third-party moderated discussion at Louisville or Tunica to disprove any of the above, or what follows below.  That would be transparency.

HowardWalkerPhotoELSViceChairmanManufacturedHomeCOmmunitiesManufacturedHousingInstituteExecCommitteeMemberQuoteTransparencyMHProNews

Thoughtful words, worth pondering. See the story, linked here.

Will they be transparent?

HowardWalkerEmergenceOfTonyKovachsPublicationsProfessionalsFilledVacuumDailyBusinessNewsMHProNews

A nation – with the world watching – is seeking the solution that’s been hiding in plain sight to the affordable housing crisis. “We Provide, You Decide.” © ## – (News, commentary, and analysis.)

(See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them. Third-party images and content are provided under fair use guidelines.)

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Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
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Related References:

The text/image boxes below are linked to other reports, which an be accessed by clicking on them.

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“Lots of Sizzle,” Clayton Sales Performance, Other MHI & Clayton Homes News Tips

December 12th, 2018 Comments off

 LotsofSizzleClaytonHomesLogoSalesPerformancemanufcturedhousinginstituteLogoMHILogoMHProNewsTips

These are #NettlesomeThings. A Clayton retailer sent a long message as part of a confidential news tip, that included the following. The Daily Business News on MHProNews has added our customary bold/brown to reflect a direct quote, but the rest are emphasis and typos are in the sender’s original message. Links were added by MHProNews as well.

 

We as an industry are still WAY below where all rationale says we should be, IF ONLY NORMAL MARKET FORCES WERE AT WORK HERE.  I have long felt that to NOT be the case, as you are also verifying through your investigative reporting. 

LONG before we ever heard of any “moat” per se, but you know that I have consistently said over this last decade that SOME in our industry focus on an entirely different goal every morning:  “What can I do today to make my competition go away?” – per said source.

The RV industry has to be commended in their PR and image-building efforts as an industry,” the message continued, adding “During the worst economic downturn (recession/depression/cluster-F/whatever you want to call it) that you and I have lived through, they were able to actually grow their industry, all the while with 6-figure price tags!  Outstanding work, both on the sales centers AND in the public forum.  We have all seen the ‘Go R-V’ing’ ads.  Did they have to do that?  No, they could have taken the cheap route, but OH MY the results their tactics gave them!  In my mind, that fully vindicates and reaffirms my belief that our industry needs a vibrant, on-going public relations / image program!”

Again, note that the spacing, grammar, and typos, etc. are in the original.  The comments may or may not reflect the views of this publication. The illustrations are added by MHProNews, as is the subheading below, to help clarify the various points that writer made.

 

BlackWhiteRVvsMHShipmentsYTDJune2018ManufacturedHousingIndustryDailyBusinessNewsMHProNews

This is provided by MHProNews, and was not part of the comments from the sender. These graphics are provided to illustrate the various sender(s) point, here and other comments from other sources below.  NOTE the above was YTD June, 2018, but the patterns has largely held.

 WinnebagoRVWholesaleshipmentDataManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Retail Lot Managers

You [MHProNews] and I agree that the sales happen on the lots.  But John or Mary LotManager is usually very busy in meeting conditions for lenders, scheduling deliveries, handling customer complaints about shoddy construction, etc.  They do not have the time, the resources, or the energy at the end of the day to combat the weathermen of this world, code-encroaching state officials, less-than-accurate national reporters who cast our homes in a bad light, etc.  That should be the role of the ‘support team’ if you will, like the state associations on the small scale.  That’s why the RV industry took their future by the reins years ago.”

The sender made reference to MHIdea, which was first conceived of as an alternative to the Manufactured Housing Institute (MHI) for independent retailers.

That person said that a decade ago, “independent retailers numbered over a thousand [locations].  Today, we hear talk of 400 or fewer. Hind sight is always clearer.”  Readers should note that these figures were supplied by the writer, and should be understood as estimates, not to be construed as a precise number.

If you want to use any of this text, do so ‘off the record.’  Just as Frank learned (my best SWAG), RETALIATION does exist in this scenario.  After all, that’s just another way of widening the moat.”

The writer did not say who “Frank” was, but may have been referencing Frank Rolfe, who was once outspoken on MHI’s hypocrisy and failures to defend or promote the industry, but who has since gone silent on MHI controversy related issues.  “Swag” has many possible meanings, and some of them in this context are quiet humorous. The video is an example Rolfe politely blasting MHI at a state association-sponsored event.

 

 

The subject line for the sender’s message read: “Subject: MHI Year in Review.” That’s the name of the video MHI produced which aims to defend their record, and promote themselves. 

The lengthy message sender opened with these words,

 

Figure1MobileManufacturedHomeSalesSHipmentsVsExistingingNewHouseSalesManufacturedHousingiinudstryDataMHProNews

There are a growing number of industry voices that believe that BH/CMH and MHI have by various action/inaction has kept manufactured home sales at historically low levels. Evidence? See Related Reports and videos, linked below, which quotes and cites BH, MHI, CMH, 21st Mortgage Corp, and other sources.

ManufacturedHousingInstitutelogoMHILogoMHIVideoStillsMillionsofViewsDailyBusinessNewsMHProNews

 

Well, well, well….

Guess somebody is feeling some heat.  GOOD JOB, TONY!  Keep the burners on full.”

Here “Tony” must mean our publisher, L.A. ‘Tony’ Kovach. Like scores of other messages supporting the spotlight and “heat” cast by reports and analysis here on Buffett, Berkshire, Clayton, MHI, or their key allies and players, like Nathan Smith.

Commenting on the MHI video, “This is a lot of sizzle, but the steak’s still kinda tough.”  That’s what inspired part of the headline and the featured image at the top of this article.

The writing was so colorful, the Daily Business News on MHProNews decided to quote extensively from it, “My first reaction when I saw the opening frames [of the MHI video] was WTF?????  OBVIOUS to me at least that this was made for folks who DON”T know the real details behind the story.  In a depressed industry, with competition slowly being choked out of existence, they come out like we’re back in 1999!  What a joke. 

Especially funny to me was their [MHI] mention of being ‘financially strong’…..I would think so.  Daddy Warren has mucho $$$.”

ManufacturedHousingInstituteMHILogoOctober2018HUDCodeHomeShipmentsDeclineDailyBusinessNewsMHProNews

The data from MHI, RV operations, and others broadly underscore the points shared by the message sender.

 

The writer suggested that the non-big three builders should provide a level of support to a new initiative to break free of Buffett led-Berkshire/Clayton/21st, et al, and MHI. 

Do you think the remaining non-Big 3 mfgrs would be open to funding such an initiative now?  If each could do so by ‘hiring’ 2 minimum wage workers to their expense, just sending those $$ to the support team,” the message said.

There was more, but publishing it would tend to reveal the source of the

lengthy message. MHProNews again reminds readers who are trying to stay off the radar of a big brother organization or company to consider avoid using their firm’s email address. At some point, sender’s may find organizations scanning team members email, looking for the sources of various comments.  That said, to date no one who has wanted to remain anonymous has indicated they have been discovered.  If sending from a non-organizational email address, MHProNews requires confirmation on a sources authenticity, etc.

 

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To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

 

 

The Clayton Tipster’s Calculus  

The figure suggested by the writer of the comments shared above suggested works out as follows. The equivalent of 2 minimum wage workers to boost industry growth works out to be some $30,160 annually.  That’s not insignificant, and if 25 firms signed onto that it would yield $754,000.  Its a small fraction of what MHI operates on, but as MHARR has proved, it is doable.

For new readers, the Manufactured Housing Association for Regulatory Reform (MHARR) provides lobbying and advocacy for independent producers of HUD Code manufactured homes.  From MHARR’s base in Washington, D.C., as a matter of policy, they stay focused on production and some financing related issues, like the Duty to Serve (DTS) Manufactured Housing.  But MHARR doesn’t do the kind of post-production advocacy that the sender is calling on the industry to do.

Bottom line, $750k – used wisely on targeted issues – could make a difference.  What’s obvious is that MHI, spending far more per MHI budget records, and their own claims shown above, has accomplished effectively nada.

 

What Tim Williams Asked

Our publisher, award-winning industry services provider, and consultant, L.A. ‘Tony’ Kovach was asked by then MHI Chairman Tim Williams what he thought was a reasonable budget for a pro-growth alliance to operate successfully?

Tony replied to Williams’ unexpected query with a figure of $1.6 million dollars annually. That’s still less than half of what MHI records reflect MHI gets in dues and fees. That $1.6M kind of budget – Tony explained to Williams and his Berkshire Hathaway industry member guests – would allow for an attorney, media engagement, local zoning advocacy, and other features included in the mantra PEP. Protect, Educate, and Promote.

In hindsight or looking ahead – cooperating with MHARR and NFIB as needed – such a manufactured housing independents alliance could certainly accomplish more than MHI for the industry’s independents.

Dubbed the MHAlliance was a move promoted in writing and in deed by John Bostick, President and CEO of Sunshine Homes. Sunshine’s former sales manager praised on video the growth achieved by the company using a a combination of localized marketing, videos, and training.

The data reflects that Sunshine’s sales growth far outpaced that of the industry at large, and blew away the growth rate of Clayton.

 

 

But the next insights from another Clayton-connected source was actually to point to data from Legacy Housing’s recent IR presentation, found by clicking the box linked below.

 

What Others Say – Legacy Housing Corp (LEGH) IPO Set for 12.14.2018

 

Here is the graphic we used in a report yesterday, again noting that MHProNews is providing the commentary, etc, with illustrations.

 

2018-12-11_1155TalkMarketsDailyBusinessNewsMHProNewsTopProducersHUDCodeManufacturedHomes

As noted above, this illustration was NOT sent by those providing the respective tips and comments, but is provided by MHProNews to underscore points those sources have made.

 

That source claims that the typical Clayton sales center has about 4 retail sales people per store (+/-). The source noted that about 2/3 of manufactured housing production, per MHI, goes to land-lease communities.

Using MHI’s data from the chart above, that yields about Clayton 29,327 going to retail centers. Note that figure would likely be high, due to FEMA orders, but we’ll follow that tipsters logic for a few moments.

Subtracting out roughly the number of shipments to independents and communities who sell Clayton products, that source said that the typical Clayton sales professional only sells about ‘15 new manufactured homes annualized over the course of a year.’

15 new homes a year?

When the Daily Business News asked why “annualized,” the source claimed that the turn over in Clayton’s retail sales is significant. So a sales person that starts the year often doesn’t finish the year. Thus data per professional ought to be annualized.

While the numbers are rough – and we hereby welcome clarification of the claimed figures from Clayton Homes – it certainly fits the overall data, and thus is plausible. It thereby suggests a number of fascinating points.

Buffett has said that Clayton is “best in class.” In the sense of total production, that is true. But in terms of individual performance, there are arguably individuals, local and regional firms that out-perform the Clayton “averages.”

If so, it’s a vexing commentary on Clayton’s retail performance.

Another source from the Clayton organization recently said to the Daily Business News on MHProNews that the sales leader in his region may hit 30 homes for the year. Through November, per that source, the deliveries and funded deals for the top people in that region were in the upper 20s. Again, Clayton is invited to clarify any errors.

If so, the average sales person isn’t selling nearly enough to make the kind of 6 figure income Clayton reportedly tells their sales recruits is possible selling new homes. Does that add to their turnover?

 

 

Reality Checks and What’s the Motivation?

Another item from a Clayton retail caller was the claim of a high cancellation rate of approved deals that never deliver or close.

These points raise several issues that must be unpacked. But one of them is a recurring theme with Clayton, namely, that when specific items are scrutinized, their performance isn’t as hot as the “sizzle” of their image. 

For example, the much ballyhooed new class of homes – if it is as successful as the cancelled Clayton iHouse and iHouse 2 – the program could be a disappointing outcome for all involved.

A common question Tony likes to ask those who message or call is, what’s your motivation in sharing your point?

Some have said words to the effect that the industry’s professionals and businesses – individually and collectively – can do far better. That is apparent in the lengthy message from the top of this report. Consider the related report, in the box further below.

While MHProNews leadership’s vision is somewhat different than the first writer’s message, that person did make reference to a point from the MHIdea report from a couple of weeks ago. Namely, that if the industry’s members keep doing the same things, they will keep getting the same results.

Whatever the performance of individual sales people, the point about stretched thin sales and general managers is arguably valid. The industry’s owners can address it, but it will take an investment in their operation.

But as one company who is growing their retail base has noted, from $500,000 to $2 million is invested in a new home sales center, inventory, etc. what’s another 30K on that, if it significantly increases the results?

As 2018 winds down, and 2019 approaches, these data points and claims are important ones to ponder. What will you and your team do to improve outcomes in 2019 and beyond? See the related reports, further below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

NOTICE: 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 browsers.

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

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Housing Choice, Where Modular, Manufactured, Tiny, Conventional Housing Crisis, MHI and MHARR Intersect

December 1st, 2018 Comments off

 

ClaytonHomesLogoManufacturedHousingInstituteLogoAssocRegulatoryReformHousingChoiceWhereModularTinyConventionalHousingCrisisSolutionMeets

Photos from Clayton website, and the logos are the properties of their respective organizations, provided here under fair use guidelines for news media. Text graphics and collage by MHProNews.

It is one of the most controversial issues in the manufactured housing industry today.  Through their apparent power at the Manufactured Housing Institute (MHI), Clayton Homes has backed the notion of a “new class of manufactured homes.”

 

It is a thorny issue, as there are various, divided views on the matter.

 

Certainly, every company has the right and ability to act according to its own perceived interests, within the norms of the law and ethical restraints.

  • If a production company so desires, it can build widget shaped homes and call it a new class of manufactured homes.
  • A firm or organization could say that all new homes should have bull-nosed exterior corners or inverted pyramid shaped roofs in order to get special financing from Fannie Mae or Freddie Mac.
  • Or one could use less esoteric notions, and opt instead for making gutters, downspouts, higher-pitched roofs, and garages available options.

But such details have arguably been incorrectly framed from the start.  Shouldn’t buyers of whatever kind of home they want that meets basic safety, energy, and durability standards be given equal choice for housing in the marketplace, and for financing too?

Rephrased, shouldn’t there be a simple mantra ofhousing choice applied?

The Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac have a federal legal mandate since 2008 that they somehow managed to dodge for a decade. Now, instead of offering the lower-cost home-only lending that about 80 percent of manufactured home customers select, instead, they provided a program that is only useful for a new, untested, and special kind of HUD Code home?

  • That special kind of home is what Clayton said they wanted, why?
  • And why is that GSE lending pushing a program that is only for land-home loans, which leaves most land-lease communities and the bulk of the retail sales of manufactured homes out in the cold?
  • How do those forced-fits foster housing choice?

 

Housing Choice Should Become Part of the MH Industry’s Mantra

  • Shouldn’t those who want to buy an already federally regulated HUD Code manufactured home be allowed to choose that or any other kind of safe and durable housing they want and are able to purchase?
  • Shouldn’t all housing shoppers who can demonstrate the decades of proven durability of their housing choice be allowed to have the same kind of financing options that conventional housing buyers have been able to access for decades?
  • Shouldn’t home buyers have the right to buy an entry-level or residential-style HUD Code manufactured homes with parity of financing?
  • Isn’t parity of financing an important part of how potentially millions of more price- and payment-sensitive renters can afford to buy a home of their own?
  • So if the clear logic of all of the above are obvious, why did MHI, Fannie Mae, and Freddie Mac hold closed door meetings – refusing to release the minutes of said closed door meeting discussions – which resulted not in more chattel lending, but rather in loans geared only to this so-called, ‘new class of manufactured homes’ that are backed by Clayton?

 

Affirmatively Furthering Fair Housing, a Novel Yet Proven Solution to the Affordable Housing Crisis That Will Create Opportunities, Based Upon Existing Laws

 

Isn’t this new class of homes – and their accompanying Fannie and Freddie lending – just another back-door or oblique way of blocking access to more low-cost lending? Isn’t that effort obviously being led by the Berkshire brands in manufactured housing?  Doesn’t it remind you of the blast-from-the-past, courtesy of 21st Mortgage Corp, that is shown in their letter below?

 

21stMortgageCorpTimWillamsJune112009LetterBerkshireHathawayWarrenBuffettClaytonHomesManufacturedHousingIndustryDailyBusinessNewsMHProNews

Click the image above to download a larger sized version of this 21st Mortgage Corp Letter.

 

Isn’t this new class of homes merely a revised and open version of Smoking Gun 3, where 21st Mortgage cut off lending to thousands of operations that didn’t carry Clayton product?  See the linked report that follows immediately below, plus more related reports further below for added details.

 

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

 

We Already Have Had State Coded Modular Homes for Decades, So, Why this ‘New Class’ of HUD Code Homes?

Several voices from various parts of the industry have noted that modular housing already – on paper – had access to the same land/home mortgage lending that conventional housing enjoys.

Indeed, FHA, VA, and USDA already give parity of lending to HUD Code manufactured homes, as well as modular housing, so long as a proper installation and other lending guidelines are met.

Many manufactured home producers already built both “HUDs” and state-coded modular homes.

But HUD Code manufactured homes have widely outsold modular home building for decades. MHI’s own periodic data reflects that point.

When the goal for thousands of land-lease manufactured home communities, hundreds of manufactured home retailing independents, and MHARR has long been to get the GSEs to fully support manufactured homes with personal property loans, where was the logic of MHI pushing ‘behind closed doors’ the use of GSE lending only [???] for this new class of homes?

Hold that thought.

Hold that notion closely, because what the stated goal of MHARR and MHI began with on Duty to Serve seemed on the surface to be the same thing.  That was the apparent intersection, on paper, that virtually everyone in MHVille said they wanted more lending from the GSEs.

But what MHI ended up doing was redirecting their energy to get GSE lending only for their so-called ‘new class of homes.’  Even the new MHI self-defense, self-promotion video makes that reality a key point, as the screen capture from their new video below reflects.

 

LeveragingMomentumCreationNewClassofManufacturedHomesManufacturedHousingInstituteMHILogoDailyBusinessNewsMHProNews600

Screen capture with commentary and MHI’s logo are a collage by MHProNews, which faithfully reflects their “We’re Using Our Momentum Leveraging the Creation of a New Class of Manufactured Homes.” First, what momentum? Second, why the need for a new class of homes? Manufactured housing builders have made residential style homes since at least the 1980s. Buyers could always option in or do on-site whatever they wanted and can afford. It’s therefor a head fake, an apparent ruse that seemingly limits GSE lending to only a tiny sliver of the market that could already be served by modular coded factory-built homes, or by existing residential style HUD Code manufactured homes. This new class of homes is a costly waste of time, save for the fact that it diverts lower-cost financing. Who benefits from that fact?  A monopolist, perhaps?

BloombergShipmentNewManufacturedHomesFactoryBuildRebuildDailyBusinessNewsMHProNews

Third-party to the industry Bloomberg’s shipment data of HUD Code homes reflects that there is a modest recovery, but that the manufactured home industry is still about 75 percent below its 1998 high water mark hit during the last 30 years.

If you want to sell more manufactured homes, this new class of homes is utterly illogical on the surface.  Manufactured housing roared during the 1990s compared to today.  Some claim it was only a sugar-high, based only on bogus lending.  But that claim ignores the reality that those home buyers wanted a manufactured home in the first place. In the mid-to-late 1990s and early 2000s, numerous researchers believed that the EXISTING class of HUD Code manufactured homes was the solution to the affordable housing crisis.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

Why did Belsky miss his predicted date? Because it came before Buffett’s entry into MH? See Smoking Gun 3.

So why this need for a new class of homes?  Why not rediscover the proven affordable HUD Code homes, already improved by the Manufactured Housing Improvement Act of 2000?

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

 

If you want to encourage the acceptance of HUD Code manufactured homes, then this Clayton/MHI backed ‘new class of homes’ is demonstrably counterproductive on the surface.

Keep in mind that a researcher for the Fannie Mae Foundation some two decades ago already noted back then that manufactured homes merited better lending, placement, zoning, and other treatment. Such facts alone should make it hard for a GSE today to backtrack on their own foundation’s research.  For that report, see the link below.

 

“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”

 

So, this new class of homes makes no sense, unless – unless – there is a hidden or unstated agenda?

  • Is this new class of homes just another monopolistic ploy to expand Berkshire’s Moat in MHVille?
  • And as has been noted previously, isn’t this once more using access to capital or lending to harm the interests of the majority of producers, in favor of one that is also selling site built housing?

 

Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

 

The Risk to Existing Manufactured Home Owners

Furthermore, isn’t there an obvious risk that the value of millions of existing manufactured homes will be undermined by this so-called new class of homes?

That isn’t a merely rhetorical question.  Because a senior contact with one of the GSEs admitted to MHProNews that it was a potential hazard.

How would millions of manufactured home owners react to not only not getting GSE chattel lending, but instead, having Clayton-led MHI working in a fashion that undermines the resale values of their homes?  Doesn’t that open the door to a possible class-action lawsuit, against the GSEs, MHI, and Clayton?

An MHI-only member messaged the following to our publisher this week, “You seem to have [a] conceptual IQ that is more important than spelling ability.” That’s nice and clever, but the matter is simply deductive reasoning or logic.

Everything that MHI has done with respect to their so-called new class of homes has been aimed to sideline opposition to it. That isn’t ‘forging consensus,’ is it? Isn’t that silencing opposition or reason-based concerns?

Isn’t what Clayton/Berkshire Hathaway lenders in manufactured housing want is to keep their choke-hold on lower-cost home lending, while promoting their own growing interests in conventional housing, all at the same time?

 

WHERE IS THE LOGIC OF HAVING MANUFACTURED HOMES THAT MAY AS WELL BE MODULARS?

Unless it was to derail GSE lending, and harm independents, all by another slight-of-hand?

All magic tricks are gimmicks, ploys – tricks. The hand is quicker than the eye. Something looks or sounds cool and good, and razzle dazzle presentations are built around it with high-cost consultants who will naturally say what the ones who wrote the check want said. That’s what a state association executive, an MHI member, has told MHProNews.

Some people will always follow a given con, that’s why tricks exist – they work on some people.

This new class of homes is a purported trick, and that is arguably why Richard ‘Dick’ Jennison would not go on with his public presentation at Louisville last January. He apparently feared having to answer questions from the Daily Business News or from members of the audience, who came armed with questions supplied by MHProNews.

 

 

It is also why Fannie Mae arguably cancelled an interview with MHProNews that their media contact had already agreed to do.  What caused that last minute cancellation?  Note that they cancelled only after they knew that among our questions would be some that focused on the genesis of how this new class of homes.

It’s Clayton and MHI, isn’t it?  How else does one explain that BOTH GSEs wanted the same thing?

 

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

 

What’s Overlooked

The genius of the HUD Code is performance-based standards that superseded other local housing code stipulations. That performance based method keeps housing costs lower for marginal buyers who won’t qualify for $150,000-$225,000 priced housing. Yet the HUD Code achieves that without sacrificing safety or durability.

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

All of the above are HUD Code manufactured homes, built years before the Clayton-MHI backed new class of homes. Newcomers to the website not familiar with modern manufactured homes, learn more by clicking the image above or the link here.

 

There have long been those who argue the HUD vs MOD matter.  Our publisher said years ago that all of factory-built housing should agree not to undermine each other’s products.  Automakers don’t undermine entry-level cars when selling a Rolls Royce. Besides, more expensive modular homes can have their own headaches, as do site built housing, as a new report yesterday underscored.

 

“No Good Deed” – Brad Pitt, Make It Right Foundation Sued for Defective Modular Housing, NBC News, More Video

 

  • Let modular builders do whatever the law allows.
  • Let HUD Code builders build entry-level or more residential-style homes, in any ethical manner that they wish.
  • Ditto for tiny housing, prefab, conventional builders, and so on down the list of legitimate, safe and durable housing providers.

But the Housing and Economic Recovery Act of 2008 (HERA) which gave the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac the Duty to Serve Manufactured Housing didn’t mandate any changes to the federal HUD Code.  The GSEs should be providing lending on entry level HUD Code homes, including chattel loans, not just on these pricey new semi-modular housing units.

ManufacturedHousingAssocRegulatoryReformMHARRMarkWeissDTSFHFA-GSEsGoingtoLargestBusinessesCorpAffiliatesDailyBusinessNewsMHProNews

Collage by MHProNews.

 

This new class of homes is arguably a Trojan Horse, a blind alley, a grifters trick.

YouGetMoreOfWhatYouEncourageLessofWhatYouDiscourageMartyLavin

The logic of this statement can be applied to a variety of cases.

 

And sadly, the money trail and evidence – see links below – point to Clayton, 21st and Vanderbilt engineering this via MHI. That means that better lending would be unavailable to the majority of potential manufactured housing customers, as well as to those in communities or private land that may want to refinance their high cost Berkshire Hathaway loans at a lower rate.

 

KennyLipschutzQuotePoorJobOfLobbyinginMHIndustry-postedMHProNews48thMHINCClist

The charade calls for a federal investigation into MHI and the manufactured housing industry’s Berkshire brands, which sources suggest may already be underway.

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not publicly make a cogent explanation?

 

Housing Choice should become part of the industry’s mantra. For our part, we will spotlight those issues that obscure the common-sense of making manufactured housing another ‘affordable housing choice‘ that home seekers can make with their heads held high, without having to jump through any special and limiting hoops.

 

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

There’s more to come on this in the days ahead, so stay tuned to the only source in manufactured housing trade media that tackles the tough topics with facts, evidence, money trail, reason, and moxie. See the related reports, further below. “We Provide, You Decide.” © ##(News, analysis, and commentary.)

NOTICE: 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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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

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“Take the MH Advantage Challenge – Can You Tell the Difference?” Fisk of Sarah Edelman, Director of Duty to Serve, Single-Family Mortgage Business for Fannie Mae

GSEs’ “Duty To Serve Underserved Markets” Plans

 

Fannie Mae Touts MH Advantage Program, But Manufactured Housing Association Slams Plan as “Illegitimate,” “Bait and Switch”

Warren Buffett, Charlie Munger, Fannie Mae, Freddie Mac, Berkshire Hathaway Backstory

Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

Bloomberg “New Home for $90,000? Manufactured Housing Is Making a Comeback” Reveals MH Media Challenge

 

Secretive “NEW” Class of Manufactured Housing Raises Serious Concerns

Next Federal Contract, MHARR and What National Trade Association Leadership Looks Like

November 3rd, 2018 Comments off

NextFederalContractMHARRLogoWhatNationalTradeAssociationLeadershipLooksLIkeDailyBusinessNewsMHProNews

The last time federal data was checked by the Daily Business News on MHProNews, the Manufactured Housing Institute (MHI) had about 7 times the revenue that the Manufactured Housing Association for Regulatory Reform (MHARR) does.

 

In their last emailed message to their members, MHI – via the voice of their previous Executive Committee Chairman, Nathan Smith – made an arguably hypocritical attack on the brand-new national community association, as was fact-checked and analyzed in the report below.

 

Nathan Smith, SSK Communities, and Manufactured Housing Institute (MHI) Slam New National Manufactured Home Communities Group in Written Statement

 

In that same message from MHI to members – which several state associations then forward to their members – MHI failed to mention that HUD had clarified and issue that is important to communities and retailers, and thus all of those who supply them.

By contrast, MHARR notified their members, affiliates and readers on the same day that HUD notified both MHARR and MHI.  The ‘frost free foundation’ interpretive bulletin (IB) impacts thousands of locations nationally, some of which are MHI members.  Why the silence?

HUD “Clarification” on Frost-Free IB Offers More Questions and Confusion Than Answers

 

In that same most-recent MHI message to members, the Arlington, VA based production and post-production trade group also failed to raise the issue that MHARR has, in a new report at the link below. It is about the federal program’s monitoring contract. Why didn’t MHI feel it was worth mentioning?  Why did MHARR think it important to do so?

 

MHARR Communication with HUD Assistant Secretary Brian Montgomery Regarding Program Monitoring Contract

 

 

Freedom isn’t Free or Easy

Manufactured housing industry professionals are free to spend their money, vote, travel, and do whatever they want to, within the bounds of laws and ethics.  People are free to be part of the new national community-owners trade association, which is made up of members who left MHI. ICYMI, or need a refresher, see what the NMHCO had to say, in their own words, quoted in the article below.

 

New National Manufactured Housing Association Makes Its Appeal to Industry Members

 

Professionals are free to be members of MHI, and/or MHARR

But wisdom suggests that the track record of MHI and MHARR should be routinely examined.

For example, in 2008, when the Housing and Economic Recovery Act (HERA) was passed, it included the SAFE Act, which MHI and their prior Chairman Nathan Smith and Tim Williams both freely admitted got passed them.  Keep in mind that MHI is a self-proclaimed umbrella trade group that says they work for post-production and producers issues.  That means, the SAFE Act was within their focus of attention.

 

 

By contrast, in that same HERA 2008 bill, MHARR – which is laser focused on federal production and related regulatory issues – worked to get the Duty to Serve (DTS) Manufactured Housing by the Government Sponsored Enterprises (GSEs) into that same HERA law.

MHARR does what they do without a political action committee (PAC), although their members are free to donate to campaigns as they may wish.

MHI has a PAC.  As MHProNews spotlighted recently, the key people and operations involved in MHI arguably backstabbed House Representatives Marsha Blackburn, and Andy Barr, both of whom faithfully supported MHI’s Preserving Access to Manufactured Housing Act.

 

“He’s Lying,” Campaign Insider Video – “Don’t Do Politics?” Tell Jim Clayton, Phil Bredesen, and Marsha Blackburn, Preserving Access to Manufactured Housing Act Supporter

 

ICYMI or need a reminder, see those two links of what MHI and their big boy allies have done, above and below.

 

Was Manufactured Housing Advocate Congressman Andy Barr Backstabbed?

 

Let us be clear from an analytical perspective. MHI, or any trade group, is free to change positions.  They are free to be loyal to, and/or to betray congressional or senate candidates.

But should that be done lightly?  What message does documented betrayal send to MHI’s own membership?  Should it raise the question, has MHI betrayed some of their own members at times?

 

Modifying Marty Lavin

Let’s look at long-time MHI member Marty Lavin’s mantra, “Pay more attention to what people do than what they say.”  Doesn’t it suggest that one listen to what someone says, but then focus on what they actually do?

Yes.

MHI purportedly postures at lobbying.  They say they are doing something.  But meanwhile, they often fail the majority of their own members in the very things that they say they are doing. Why? Who benefits?

 

What MHI does Better

What MHI debatably does better than lobbying is having events that people can mix, mingle and network at nice locations. There is value to networking events. But it is a value that others could create outside of MHI. There is also value to education and marketing.  Those three items are appropriate for a post-production association. Perhaps the new national manufactured home community owners  association will do some of those roles?  Will they challenge MHI’s grip over them?

MHARR has for years fought for the interests of their members. MHI has allegedly tried to kill MHARR off many times, as they tried in just the past few days via their last email to kill off the still nascent NMHCOA.

 

Disclosures

As a disclosure, MHARR does run banner ads with MHProNews. But our policy is simple.  No sponsor dictates our editorial or publishing content.  We’ve had some MHI members recently that reached out for the purposes of running ads with us.  One recently did, Legacy Housing, and per our sources, they felt well served for both of their events.

While we welcome other perspectives, our writing and publishing perspectives are our own.  We faithfully share other’s messages.

No person, no product, no organization is perfect. That includes us. But when a mistake is made, the polite and professional thing to do is to raise one’s hand, and say, ‘ooops, that’s my bad, I’ll try to avoid this next time.’

MHI has a terrible track record in the last decade or so of heading off bad regulations, or of mitigating them.  Some of their own top people have said so. At least some with MHI arguably worked to get Pam Danner in at HUD. They then arguably defended and even promoted Danner, all while Danner’s work at HUD harmed thousands of manufactured home retailers, communities, and thus upstream suppliers and vendors.

pam-danner-hud-code-manufactured-housing-program-administrator-mhi-2014-summer-meeting-indianapolis-in-alexander-hotel-(c)2014-mhpronews-com-

Pam Danner, JD, HUD Code the prior Office of Manufactured Housing Programs Administrator, credit, MHProNews.

 

Post-midterms, the following should be considered by NMHCO and/or any other existing, new or planned trade group.  A good post-production trade group should do three things. P.E.P. Protect, Educate, Promote. At the heart of each of these three things, is education that is based upon reliable information.

A new or existing post-production trade group should realize that MHI has purportedly weaponized events and trade shows, to the benefit of their ‘big boy’ members.

 

With that in mind, post-midterm, we will begin several initiatives.  Among them is to promote the following, which was proven by the RV industry to work for their growth.

  • Wholesale and Retail Trade Events.
  • Education.
  • Media Engagement.
  • These should not necessarily exclude large companies, but they should not be allowed to dominate or in any way dictate their operation.

These realities noted, let’s close by saying that the record reflects that MHARR does an amazing job with limited resources.  To use a southern expression, they are good at making every dime “holler dollar.”

Make sure you read MHARR’s latest on the contract controversy, at this link here. It is a topic that for whatever reason, MHI has ignored. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Manufactured Homes – HUD Called to Affirmatively Furthering Fair Housing (AFFH) Remove Zoning, Placement and Consumer Financing Barriers to Manufactured Housing

October 11th, 2018 Comments off

 ManufacturedHomeHUDCalledtoAffirmativelyFurtherFairHousingRemoveZoningPlacementFinanciangBarriersManufacturedHousingMHProNews

The date for public comments requested by the Department of Housing and Urban Development (HUD) regarding amending regulations for Affirmatively Furthering Fair Housing (AFFH) is rapidly approaching.

 

 

Court Ruling for HUD on Amending Affirmatively Furthering Fair Housing (AFFH) Opens Door for More HomeSites for Manufactured Housing

 

HUD provided the notice and due date, provided to industry readers by the Daily Business News on MHProNews, at the report linked below.

 

HUD Publishes Notice of Proposed Rulemaking on Affirmative Furthering Fair Housing Rule

 

Against that backdrop, the Manufactured Housing Association for Regulatory Reform (MHARR) published on their website, and released to MHProNews.  Their statement, along with a copy of their official comments letter, is shown below.

MHProNews plans to file comments next week, and suggests that industry readers consider incorporating points from MHARR into their comments letter.

Regulations.gov says that letters are more effective when they are phrased in your own words, rather than “Astroturfed” wholesale copies of someone else’s work.

AstroturfingWikipediaDailyBusinessNewsMHProNEws

Comments can be submitted electronically at this link below.

https://www.federalregister.gov/documents/2018/08/16/2018-17671/affirmatively-furthering-fair-housing-streamlining-and-enhancements#open-comment

What follows is the MHARR release.

  MHARRNEWSheaderDailyBusinessNewsMHProNews

 

 

MHARR CALLS ON HUD TO REMOVE ZONING, PLACEMENT

AND CONSUMER FINANCING BARRIERS TO MANUFACTURED HOMES

 

Washington, D.C., October 11, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR), in written comments filed with the U.S. Department of Housing and Urban Development (HUD) on October 11, 2018 (see, copy attached) has called on HUD to promote zoning and placement parity for federally-regulated manufactured homes as part of the Department’s plan to amend its regulations for Affirmatively Furthering Fair Housing (AFFH).

Noting that Secretary Carson and HUD itself have recently cited restrictive local zoning measures – including zoning mandates that discriminatorily exclude or restrict the placement of HUD-regulated manufactured homes – as a significant root cause underlying the lack of affordable housing in many areas of the United States, MHARR’s comments seek amendments to the AFFH regulations that would: (1) identify the discriminatory exclusion of HUD Code manufactured homes and/or manufactured home communities (or the discriminatory limitation of manufactured home placements in compatible residential areas) as an obstacle to fair housing that program participants must address as part of their AFFH compliance efforts; and (2) “encourage actions that increase housing choice,” by promoting changes to local zoning and land-use ordinances that would permit the siting of HUD Code manufactured homes in all compatible residential areas, as well as the development of new and/or expanded HUD Code manufactured housing communities in such compatible residential areas.

To ensure compliance with these amendments, MHARR urges HUD to expressly and specifically condition the receipt of grant (or other) funds on the elimination of discriminatory restrictions on the placement of HUD Code manufactured homes or — absent voluntary compliance by local jurisdictions — to federally preempt such discriminatory measures pursuant to the enhanced statutory preemption authority provided by Congress in the Manufactured Housing Improvement Act of 2000.

Strong and effective action by HUD is absolutely essential to ensure that all Americans have access to the inherently affordable, non-subsidized homeownership offered by today’s federally-regulated manufactured homes.  Although these homes are the best that the industry has ever produced, and represent an outstanding value that is intrinsically affordable for all Americans, including lower and moderate-income families, access to manufactured housing is being needlessly – and unlawfully – restricted by discriminatory zoning and placement restrictions that the industry’s post-production sector has been unable to effectively counter. Given Congress’ specific grant of authority to HUD to override such discriminatory zoning measures, HUD’s amendments to AFFH should ensure full access to manufactured housing by every American everywhere in the United States.

In addition to removing such discriminatory local barriers to affordable, non-subsidized manufactured housing, MHARR has also called on HUD – in meetings with Secretary Carson and Assistant Secretary Brian Montgomery – to take concrete steps to place manufactured home consumer financing, and most especially federal support for the 80% of the manufactured housing consumer financing market represented by personal property or “chattel” loans on par with other types of consumer home lending.  MHARR has thus urged HUD to support and encourage market-significant securitization and secondary market support by Fannie Mae and Freddie Mac for manufactured homes under the “Duty to Serve” provision of the Housing and Economic Recovery Act of 2008 (HERA) and has also urged HUD leadership to revive and expand manufactured home chattel loan support under the existing Federal Housing Administration (FHA) Title I manufactured housing program.

In Washington, D.C., MHARR President and CEO, Mark Weiss, stated: “Once again, the leadership of President Trump and Secretary Carson is offering significant new opportunities for both consumers and producers of HUD Code manufactured housing.  As the federal government agency responsible for housing-related matters for the nation, HUD should use all of the tools that are available to it – through grant funding mechanisms and through mandatory federal preemption, if necessary – to ensure zoning, placement and consumer financing parity for inherently affordable manufactured homes and the mostly lower and moderate-income American families who rely on those homes to achieve the American Dream of homeownership. Baseless NIMBY-ism is no excuse for denying the benefits of homeownership to every American in every community.”

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

— 30 –

You can also see the above on the MHARR website, at the link below.

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

Comments are due 10/15/2018 at 11:59 PM EDT.

FR6123–A–01RIN 2529AA97Affirmatively Furthering Fair HousingStreamlining and Enhancements.  

https://www.federalregister.gov/documents/2018/08/16/2018-17671/affirmatively-furthering-fair-housing-streamlining-and-enhancements#open-comment.

The MHARR letter to HUD is linked here as a download. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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FHFA Requests Input on Proposed Modifications to GSEs’ “Duty to Serve Underserved Markets” Plans

October 4th, 2018 Comments off

 FederalHousingFinancingAgencyLogoFHFADutyToServeRequestCommentsLogoDailyBusinessNEwsMHPronews

While the Manufactured Housing Institute is apparently taking contributions from the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac for doing toe-in-the water lending on manufactured homes, the Manufactured Housing Association for Regulatory Reform (MHARR) has been pushing numerous buttons and doors in Washington, D.C.

 

Their goal?

To get more lending on manufactured homes.  That would thereby reduce the industry’s dependence on Berkshire Hathaway brand financing.

In a statement to the Daily Business News on MHProNews, the D.C. based trade group for independent producers of HUD Code manufactured homes said as follows. “As industry members are aware, MHARR has been pressing FHFA, Fannie Mae, Freddie Mac, Congress and the Administration to provide for market-significant levels of secondary market and securitization support, by the Government Sponsored Enterprises (GSEs) under DTS, for the personal property or “chattel” loans which comprise 80% or more of the purchase-money consumer financing for HUD Code manufactured homes.”

The nation’s credit unions have also blasted at the GSEs implementation of the Duty to Serve, or DTS. ICYMI, or for a refresher, see the linked report below.

Loan Zone Manufactured Home Buyers, Sellers – CU Insight on Fannie, Freddie and Duty to Serve Manufactured Housing Industry

MHARR plans to carefully analyze these proposed DTS plan modifications, and will submit appropriate comments to FHFA.  They encourage industry members to do likewise.

Comments on the proposed modifications must be submitted to FHFA no later than November 2, 2018.

MHARR, FHFA and another tip-source all provided the following to MHProNews.

 

FHFA, Requests Input, Proposed Modifications, GSEs’ “Duty to Serve Underserved Markets”, Plans for Manufactured Home Lending, Manufactured Housing Assoc Regulatory Reform, MHARR,

Duty to Serve Update: FHFA Requests Public Input on Fannie Mae and Freddie Mac’s Proposed Duty to Serve Plan Modifications

Greetings:

Today the Federal Housing Finance Agency is requesting public input as part of the Agency’s consideration of proposed modifications to Fannie Mae and Freddie Mac’s (the Enterprises) 2018-2020 Underserved Markets Plans (Plans) under the Duty to Serve program.  FHFA has determined that public input would be helpful in considering four of Fannie Mae’s twenty-two proposed modifications that would each make a substantial change to the content of its Plan.  Freddie Mac has submitted one modification that FHFA considers to be a modest correction and, as a result, FHFA is not seeking public input on this proposal.

FHFA intends to issue Non-Objections to the Enterprises, where appropriate, for proposed modifications by December 2018.  Upon the issuance of a Non-Objection, FHFA intends to publish the following documents on FHFA’s public website:

  • The modified Plan(s) the Enterprises submitted that received a Non-Objection from FHFA;
  • Redlined versions of the portions of the modified Plans containing all modifications, including technical edits;
  • All of the Enterprises’ completed “Plan Modification Request” templates (twenty-two from Fannie Mae and one from Freddie Mac).  These documents will be published to provide the public with insight into the reasons the Enterprises’ changed their Plans.

FHFA is issuing this Request for Input on its dedicated webpage, FHFA.gov/DTS through November 2, 2018.

For more information and program updates, visit FHFA.gov/DTS.

###

MHARR Exposes GSES’ Failure On Chattel Financing Before Congress

 

As recently as last week, MHARR provided the report linked above, which contains their testimony to Congress protesting the FHFA’s handling of the GSEs and DTS.

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It is one of a series of moves with Congress and others, designed to bring about more lending for manufactured home retailers, and communities, and thus supporting their member-manufacturers.

Readers are reminded of the drama last week with the FHFA’s own sexual improprieties fracas.  See that under the related reports, linked further below.  ## (News, analysis, and commentary.)

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Related Reports:

 

Mel Watt – FHFA and MH Connected Hearing Today to Feature Sexual Misconduct Allegations

 

FHFA Hearing Before Congress Raises GSEs’ Failure on Manufactured Home Chattel Financing

 

“Waste, Fraud, and Abuse” – FHFA, GSE Federal Oversight Announcement

Duty To Serve, “Complete Waste of Time” per Tim Williams, CEO/21st Mortgage; POTUS Trump, Warren Buffett Insight$

MHI Lender Shakes Up DTS and MLO Rule Discussions