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Posts Tagged ‘Manufactured Housing Improvement Act of 2000’

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

January 26th, 2018 Comments off

TwoGreatLawsOnBooksNowUnlockBillionsManufacturedHousingIndustryProfessionalsInvestors550

Stating the Obvious for Clarity. Manufactured housing professionals are busy doing what they do, day-by-day.

People go to work, invest in, or own a business in order to earn a good living.

 

With the affordable housing crisis, the manufactured home (MH) industry ought to be doing far better than it is. Almost everyone in the industry agrees on that point.  The housing crisis is a fact that Skyline-Champion – or others in the industry – point to in their investor presentations.

Skyline Corp, Champion Homebuilders Conference Call Presentation Facts, Figures, Forward-Looking Statements, Planned Merger Detail$

There are two great laws – not fair, or decent, but great laws – that are already on the books that properly used and implemented could propel manufactured housing to the top of the nation’s choices for affordable housing.

Fully implementing those two federal laws would be good for:

  • Federal, state, and local governments that are spending tens of billions annually on affordable housing measures that are unable to keep pace with the growing needs in the U.S.
  • Good for investors, and current manufactured housing business owners, who could profit far more than they currently do, by providing the needed housing in the markets that they serve.
  • Good for realtors, developers, and could prove useful for many small builders.
  • Most of the risk would be born by investors, because once understood, they will grasp the ‘no brainer’ nature of the opportunity.
  • To rephrase, the private sector could profitably solve the housing crisis, so long as the public sector – notably, the federal government – implements these two laws.

Those Two Laws Are?

The Manufactured Housing Improvement Act of 2000 (MHIA 2000) and the Duty to Serve (DTS) Manufactured Housing mandated by the Housing and Economic Recovery Act of 2008 (HERA).

What is keeping these laws from being properly understood and widely implemented?

Simply put, forces inside and outside of manufactured housing.

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The external issues are exacerbated by the fact that the industry’s post-production sector lacks a national association that is actively working for the interests of independent producers, retailers, and communities.

Appealing Manufactured Housing Institute (MHI) Marketing, Finance Booklet Reviewed

The national ‘umbrella’ association – which is the de facto post-production association, is the Manufactured Housing Institute (MHI).

Facts Matter – Mr. Obama’s “Alternative Universe,” Trump Admin, Investors & Politicized Manufactured Housing Data

A recent and detailed example of how they are failing the industry at large – be that failure by accident, arrogance, or design – is linked above.

There are a few things that the HUD could be doing to promote the solution they are legally charged with regulating. They have failed to do so under the now terminated leadership of Pam Danner, J.D., who was the HUD’s manufactured housing program office administrator.

    • The true nature of how manufactured homes evolved from trailers houses in the 1930s to 1950s, to mobile homes in the 1950s to the early 1970s, to modern manufactured housing starting on June 15, 1976 is widely misunderstood within the federal government, as well as by state and local governments.
    • The MHIA 2000 features the so-called “enhanced preemption” which has never been properly implemented. If that one law was being enforced by HUD, it could be a revolution for cities and towns across the country. While the video that follows focuses on ‘upper end’ manufactured homes, the principle – and law – applies to entry level manufactured housing too.
    • The Duty To Serve (DTS) has been throttled by industry politics. See the Tim Williams/21st report linked, further below.

  • In additional to those two laws, FHA lending – part of HUD’s jurisdiction – is not being fully used. As reported last year, there are only two lenders under FHA’s current “10/10” rule that could be making home only (chattel) manufactured home loans.  Those two lenders are both owned by Berkshire Hathaway, Vanderbilt Mortgage and 21st Sources within 21st told MHProNews last year they suspended offering Title 1 loans. FHA needs to revisit that rule, and make Title 1 lending more broadly available to others who will put that law to work for consumers.
  • Finally, other kinds of lending that now exist are not properly understood. The GAO report, linked above, demonstrates that even with higher interest rate chattel loans, manufactured homes are still far more affordable than conventional housing or rentals.

MonthlyHousingCostsGAOConventionalHouseApartmentsRentalHousingManufacturedHomeDailyBusinessNewsMHProNews

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The Trump Administration has said that it will be in the business of keeping promises and enforcing the law. They’ve demonstrated a consistent trend of attempting to do exactly that in their first year in office.

With the just announced top-to-bottom review of HUD’s manufactured housing program, the timing is perfect for the industry to spotlight how the Berkshire Hathaway dominated Manufactured Housing Institute (MHI) has routinely failed the industry.  The timing is perfect to underscore how MHI’s failures to properly engage explains in part how the HUD Code manufactured housing program is disappointing in its mission under the MHIA 2000.

The reports linked from this Daily Business News post will outline how those failures have occurred.

A little math explains precisely why manufactured housing has been allowed to flounder.

In a trillion-dollar a year housing industry, Harvard University’s Eric Belksy and others noted some years ago that manufactured housing was poised to surge to the fore-front of housing. When Belsky wrote those words, he knew about the lending problems that already existed at that time.

Simply put, by throttling lending and allowing heavy regulatory burdens to remain in place, Warren Buffett’s Berkshire Hathaway owned companies quickly became the number one producers and retailers of manufactured housing.

Kevin Clayton in the video interview shown explains in his own words how Buffett hated both foreign and domestic competition.  He repeatedly references “the Moat,” and Clayton candidly says that Buffett preaches “the Moat” to his company CEOs.

Kevin Clayton Interview-Warren Buffett’s Berkshire Hathaway, Clayton Homes CEO

It’s the truth hiding in plain sight.

Buffett supported big government candidates, such as Barack Obama and Hillary Clinton, who in turn supported regulations that – combined with his own choking off of lending to third parties – killed off over time, or forced to sell out for less – thousands of independent communities, retailers and independent home producers.

HUD’s new leadership must be made aware of this pattern.

While this may appear to be political, it is rather a question of crony capitalism at the highest levels.

It is worthy of congressional oversight, which some Democrats have called for too.

Maxine Waters Statement, Preserving Access Manufactured Housing Act 2017, Warren Buffett, Clayton Homes

President Trump has personally signaled in broad terms his willingness to use anti-trust (anti-monopoly laws). This is a bi-partisan issue.

President Raises the M-Word, “Monopoly,” Plus Manufactured Housing Industry Market Update$

The time to free manufactured housing to fully and properly use those two good laws, and implement others on the books such as FHA, could be a new economic boom for millions of Americans.

Implementing those 2 good laws can save taxpayers billions, while earning private enterprise billions.

MHProNews estimates that at current HUD Code manufactured home prices, building the 8 million needed affordable housing units is worth about $500 billion dollars at retail. After taxes and expenses, that’s billions of dollars to the bottom lines of business owners and investors.

That’s why award-winning Alan Amy said the industry’s billionaires are gobbling up manufactured housing.

It’s the truth hiding in plain sight.

By shadow boxing appearing to advocate, when they are in fact failing to be effective for any but a few big players – the Manufactured Housing Institute (MHI) is apparently guilty of being a tool of Berkshire Hathaway and what Maxine Waters and others have called their “near monopoly.”

GSE’s Duty to Serve MH Rigged, Benefits 21st, VMF, Clayton, Buffett’s Berkshire, Harming Consumers & Independents, per MH CEO, Calls for Congressional Investigation

Many believe there is nothing ‘near’ about the monopolistic power of Berkshire Hathaway.

It exists. That’s not a slam on the thousands of good people working for those companies. Many of those Clayton, 21st Vanderbilt staffers are among our thousands of readers.

But the monopolistic pattern ought to be a potential indictment on those who’ve misused their influence and power to the harm of thousands of businesses, millions of consumers, and taxpayers.

The time is now to act to enforce those two good laws.

The time has come clean up the mess that crony capitalism working with MHI and the heavy hand of government has produced.

What say you? “We Provide, You Decide.” © © ## (News, fisking, analysis, commentary, links to documents, allegations, comments from members, etc.)

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We agree with Warren Buffett on the value of the lessons of history, reading and research. Without those deep insights, the wool can be pulled over other people’s eyes. We respectfully disagree with Mr. Buffett’s politics.

By L. A. “Tony” Kovach.

Kovach is the award-winning managing-member of LifeStyle Factory Homes, LLC,
parent to MHProNews, and MHLivingNews.com.
Both are #1 in their categories.

Kovach is one of the most endorsed and recommended MH industry professionals in all of manufactured housing.

 

 

“It’s a Question of Honor”

September 22nd, 2017 Comments off

TwoFacedPixabayMHProNewsIt’s a question of honor,” said actively retired businessman and minister, the Reverend Donald Tye Jr.

Too many have never learned or lost their honor. People generally expect someone to mean and do what they say.  But all too often in politics and business, that’s just not happening,” Tye said.

Tye made those recent comments to MHProNews as part of a broad discussion on manufactured housing industry and American politics.  “Two-faced anddishonorable behavior” has become all too common.

That hurts millions of Americans, but it hurts the small to mid-sized independent businessman too.  Why?

Tye, who spent many years engaged in politics, said he’s seen how billionaires will buy whatever candidate they need to get what they want. “The system is rigged,” against the smaller businesses, which statistically are less able to fight heavy regulations that larger businesses can more easily sustain.

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Tye has spoken about the dishonorable, two faced behavior of factions that are harmful to the interests of millions, including independent business people.

Why Affordability and Manufactured Housing Are so Important

Tye has commented several times about the importance of affordable quality housing – specifically, manufactured housing – as an important path to building household wealth, integrity, and good character.

Those bedrock qualities of a sound and “honorable” society are not fostered in high rise “tenements,” Tye said.

RevDonaldTyeJrBusinessmanManufacturedHousingAdvocateDailyBusinessNewsMHProNews

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

And yet, too many in the industry – the manufactured housing advocate believes – have not promoted the enhanced preemption of manufactured housing enjoys under the HUD Code as a way of breaking people of all color and background out of the cycle of poverty.

Tye says that once the Voting Rights Act was passed into law, Dr. Martin Luther King Jr. began to shift his focus on promoting a movement that included poor people from all racial and ethnic groups.

HUD’s Carson, Tye Common Ground

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HUD Secretary, Dr. Ben Carson, has had favorable statements about manufactured housing. At the same time, industry observers have noted that on some key topics, there has been no clear signal from Dr. Carson.

Before HUD Secretary Dr. Ben Carson began his TV blitz explaining the correlation of home ownership and wealth building, Tye had made similar comments to MHProNews.  He is hopeful that Secretary Carson will become fully engaged in seeing, learning, and then applying the law that regulates manufactured housing for the greater good of millions of Americans.

Carson has stated that statistically, the average home owner has a household net worth of about $200,000, while the typical renter has a net worth of about $5000.

Tye has also promoted the notion of sustainable loan programs make it possible for lower income Americans to become home owners.

Why Hasn’t HUD or Many in Manufactured Housing Promoted Enhanced Preemption?

In a meeting with real estate professionals and investors, Tye discovered that those professionals were completely unaware of the enhanced preemption that the Manufactured Housing Improvement Act of 2000 (MHIA 2000) provide by law to modern manufactured homes.

There is a range of NIMBY and other ignorant and prejudiced attitudes that keep people from considering, much less embracing manufactured homes.

Tye has related that to the now discredited notion that if a black man moves into an all-white community, “Well, there goes the neighborhood.”  With an almost derisive laugh when he said, “as if the cosmos somehow knows that a black man has arrived,” and that occurrence would somehow negatively impact property values.

Tye found the HUD PD&R that used university researchers to disprove the notion that manufactured homes would cause deprecation among site-built dwellings in urban infill interesting.  But he already knew that from his own family’s experience. Factory built homes that he and his neighbors owned in the early 1970s that were placed as infill in an urban area in the Cincinnati metro that originally sold in about the $24000 to $28,000 price range, are now selling for some 4 times that price today. ## (News, analysis, commentary.)

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

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

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

September 6th, 2017 Comments off
LoisStarkeyManufacturedHousingInstituteHUDCodeManufacturedHomesPamDannerRichardADickJennisonMHProNews

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

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

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

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

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

Industry Concerns

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

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

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

MHARR Reacts

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

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

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

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

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

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

LoisStarkeyFormerlyVPManufacturedHousingInstituteRichardADickJennisonPresidentCEOMHIDailyBusinessNewsManufacturedHomeIndustryReportsResearchDataMHProNews

See the report by clicking the image above.

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

OverRegulationCreditBradyHomesDailyBusinessNews

Featured image credit, Brady Homes.

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


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

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

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

 

 

Public Policies May Hurt Poorer, Older Residents

June 9th, 2017 Comments off

YesimSayinTaylorDCPolicyCenterManufacturedHousingIndustryDailyBusinessNewsResearchDataReportsMHProNewsTRecent research shows that transit-oriented development programs can create social inequities and increase the pace of gentrification, and there is already evidence that this has been happening in D.C.,” says Yesim Sayin Taylor, with the D.C. Policy Center.

The Washington Times noted today that, “The D.C. Policy Center’s report focuses on the District, but smart growth planning has played a prominent role in many other U.S. cities.

Manufactured home industry professionals know that local zoning and development officials often take a NIMBY (Not In My Back Yard) or BANANA (Build Absolutely Nothing Absolutely Near Anything) attitude.

In many markets, that in turn has sparked accelerated home values, due to demand, but it also means that those with lower incomes are being priced out of those markets.  That’s an issue that Taylor’s report notes.

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Screen shot from Taylor’s report.

Public policy, says Taylor’s research, is pushing out older, lower income citizens in favor of younger ones.

Transportation policies are pushing lower income citizens further out from metro areas too. One irony that this and other studies often point to is that the very things that central planners hope to accomplish – for example, less strain on streets, and transportation systems – are made worse.

If we truly want to make D.C. a more walkable, bikeable, transit-friendly city, we should start with our broader housing and transportation policies,” Taylor says, after having chronicled the various age, ethnic and other negative impacts from current policies and plans.

GeoffAndersonSmartGrowthAmericaManufacturedHousingIndustryResearchReportsAnalysisDailyBusinessNewsMHProNewsNationally, there is no question that when cities are building smart growth neighborhoods, people want to live there. When that happens, you have people with more money ousting people with less money,” the Washington Times reports Geoff Anderson said, president of the nonprofit Smart Growth America. “So we need to have public policy that makes sure people who have been there for a long time can benefit.”

While DC may not be the best case for finding buildable infill locations, there are many cities and towns across the country that do have such opportunities.  The HUD PD&R spotlighted and published at this link here revealed that manufactured homes that are properly placed in city limits can appreciate as does other housing, does not harm local housing values, and often improves neighborhoods.

HUDPDRReportManufacturedHousingOaklandCAInfillManufacturedHousingDailyBusinessNewsMHProNews

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Lisa Tyler. Ph.D.. Credit: MHLivingNews

We don’t have enough public housing to fulfill our needs,” says manufactured home industry expert Lisa Tyler, Ph.D. of Paris, Tennessee. “Manufactured housing presents a solution. It’s inexpensive, energy efficient, and a great value. There’s a lot of opportunity for growth in the industry, but a lot of obstacles, too.”

Tyler has the distinction of being the first Ph.D in United States over a decade whose dissertation was focused on manufactured housing, so her research on MH related issues is current,” per a report on MHLivingNews.

Tyler pointed to a study by William P. McCarty’s – see download, linked here – as one clear indicator that manufactured housing communities are just as safe as conventional neighborhoods.  Yet the impression of crime associated with manufactured homes is one of those false stigmas Tyler says has dogged the manufactured home industry.

The Potential of the MHIA 2000 to Solve Many Such Issues

Certainly, manufactured housing isn’t a cure all.  Some areas will require existing housing, when practical, to be updated.  But in many cases the promise and potential of the full and proper implementation of the Manufactured Housing Improvement Act of 2000 would yield a solution that saves taxpayers dollars and would enhance slipping home ownership rates.

ActNowJune14DeadlineBillionsAtStakeHUDComments

Call to Action

Please see the downloadable letter to HUD by Tony Kovach. And consider sending your own letter or his along with your own comments. The opportunities would be worth billions to the industry, and that can mean millions more in the market(s) that your operation serves. ##

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

By Matthew J. Silver for the Daily Business News on MHProNews.

Kevin Clayton at Clayton Homes Takes Buffett’s Big Stage, Video

May 13th, 2017 Comments off
MindYourLanguageWarrenBuffettBerkshireHathawayandClaytonHomescreditFOXBusiness1-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: FOX Business.

Yesterday, in part one of this series on the “Woodstock for Capitalists,” the Daily Business News focused on several aspects of the business, wit, insights, and politics of Warren Buffett.

Today, we look at Kevin Clayton of Clayton Homes, who even before his featured interview on FOX Business, Warren Buffett spoke highly of Clayton Homes in his annual letter to shareholders on February 25th.

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

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

The Knoxville News-Sentinel also reported that, for the second year in a row, Buffett defended Clayton’s financing practices.

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The tag team that engaged in so-called ‘agenda journalism,’ targeting Clayton Homes, as a way of derailing MHI’s version 3.0 of “Preserving Access to Manufactured Housing.” The report, while flawed, was widely cited by Democrats who opposed the measure and stalled in the Senate.  For insights on MHI’s fourth attempt at passage, click here

In 2015, a joint Seattle Times, Center for Public Integrity and later BuzzFeed News investigation accused Clayton Homes of pushing minorities and others into high-interest predatory loans, which Clayton has strongly denied. The Daily Business News covered that story extensively, separating agenda media hyperbole, faked news fiction from the facts. One of those stories is linked here.  

In his interview with FOX Business’ Liz Claman, Clayton highlighted the fact that they expect to sell in excess of 45,000 manufactured homes this year, doing their part to address the affordable housing crisis in the U.S.

The average new home in America is almost $400,000 now,” said Clayton.

Pointing to their display home, Clayton spoke directly to an ongoing challenge for the industry that needs to be addressed.

What our industry is saying, if that it’s built with the steep-pitch roof, onsite garage, and porch, built to the federal code and to FHA setup standards, it should be financed and zoned just like site-built traditional housing.”

Clayton also shared details on the company’s new “tiny homes,” designed by Mountain Brook, Alabama-based Jeffrey Dungan Architects.

We’ve been working for two years to develop the best tiny homes,” said Clayton.

What’s unique about us, is this home is built to live in permanently and meets your local and state housing codes, which is a huge advantage.”

Clayton and Buffett after the annual paper toss in 2015. Credit: FOX Business.

Among the points absent from the discussion was the Manufactured Housing Improvement Act of 2000 (MHIA), enhanced preemption, and the examples that HUD themselves provided of municipal placement in a university level report, linked here.

Tiny House – Risks, Trends, and Rewards?

ihouse Clayton Green-Bridge-Farm-Chevy-Volt-posted on Manufactured Home Marketing Sales Management MHMSM.com MHProNews.com

The i-House was a highly publicized, widely respected, ‘green’ and vogue concept home. But it fizzled in the market place. See prior Daily Business News report, linked here. In the Green Bridge Farm photo by Jetson Green above, the i-House was paired with an electric Chevy Volt, as a way of underscoring its green features.

The tiny house move by the giant is not a guaranteed lock, as those who recall the Clayton i-House recall the fanfare, which fizzled as a result of all-too-modest sales.  So industry observers are watching this move carefully.

As our regular readers are aware, MHProNews and MHLivingNews have covered the “tiny home” movement extensively, including the potential for big legal trouble for owners and a detailed side-by-side comparison with manufactured homes, highlighting function and value versus fashion.

Clayton Homes is reassuring their prospects for their tiny house that their units are built to a building code, unlike so many on the market that are built to no codes at all.

Others in HUD Code manufactured housing are making their own moves on tiny houses.  Some are built to the HUD Code, some to the ANSI code, and others reportedly to no codes, but still rolling out of HUD Code production centers. The tiny house craze is no doubt fueled by the mainstream media’s love affair with the typically mobile units, while at the same time slighting manufactured homes.

About Clayton Homes

Clayton Homes is the largest producer of manufactured homes (MH) in North America and as noted is a subsidiary of Warren Buffett’s Berkshire Hathaway.

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

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

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

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RC Williams.

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

MHARR Questions HUD’s Proposed New SAA Funding

August 11th, 2015 Comments off

boxing_gloves_____cnnmoney_ceditFollowing a story MHProNews posted July 27, 2015 regarding the possibility that the Department of Housing and Urban Development (HUD) may increase payments to State Administrative Agencies (SAAs), the Manufactured Housing Association for Regulatory Reform (MHARR) states that HUD’s proposed overall funding to the SAAs would diminish because part of the funding would be based on 2014 HUD Code production instead of 2000 year-end production as required by the Manufactured Housing Improvement Act of 2000.

Additionally, the original proposal would have erased the distinction between full-approved and conditionally-approved SAAs and “eliminated ‘supplemental’ SAA payments designed to maintain funding at 2000 levels for states that subsequently fell below 2000 base level funding.

These deep cuts in SAA payments would have eliminated a number of SAAs from the federal-state partnership that is the core of the program as designed by Congress, thereby strengthening HUD’s monitoring contractor which performs the function of SAAs in non SAA states and increasing its presence which MHARR refers to as a “chokehold.”

While HUD’s current alternative proposal would maintain current funding levels as a “floor” for SAA payments, MHARR says HUD has not succinctly spelled out all the exact details of the new proposal, particularly the provision that funding equals or exceeds the levels of the year 2000. MHARR will analyze the new proposal to ascertain that it complies with the 2000 reform law. ##

(Image credit: cnnmoney)

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

Sunday Morning Weekly Recap – Manufactured Housing News – for 12-21 to 12-27, 2014

December 28th, 2014 Comments off

sunday-morning-weekly-recap-12-20 to12.27 2014-mhpronews-Who says the holidays bring a slow down in news? We’ve seen two gestures of manufactured housing Christmas kindness hit the media this week, each featuring a home being given away. Nobility Homes kicked off our week with big news about their 2014 results. The 14th Anniversary of the Manufactured Housing Improvement Act of 2000 (MHIA 2000) was the end-cap on the week that just ended.

2015 housing, energy and economic forecasts where all covered in the Daily Business News. Sandra Lane debunked some errors in a report by Seeking Alpha on one of the largest community operators in the nation. From UFO style pre-fabs to a state slapping an organization for being unlicensed, we’ve covered it.

Scan the headlines, click on the stories that delight or interest you. Make the upcoming week informed and more productive.

Saturday 12.27.2014

14 Years – Time to Revisit the Manufactured Housing Improvement Act of 2000?

U.S. Home Resales Hit Six-Month Low, Implications for MH?

 

Friday 12.26.2014

Most Manufactured Housing Stocks rise and broader markets inch up after Christmas

Encouraged by Recent Victory in Changing Dodd-Frank Ruling, Republicans Say ‘This Was Only The Appetizer’

Jeff Fallon led Zeman Homes team give Christmas gift of manufactured home to homeless woman

GA Operation slapped, Licensing Is Required for Everyone Who Negotiates Mortgages

 

Thursday 12.25.2014

Looking for Holiday Manufactured Housing Industry Focused Reading?

Analysts on Future of U.S. Energy Industry and Impact on MH

Merry Christmas to you and yours from MHProNews

 

Wednesday 12.24.2014

Do renters of Mobile and Manufactured Homes have enough consumer safeguards?

Manufactured Housing Composite rises, Dow hits day 6 of Christmastime winning streak

Far Out Spaceship like PreFab Home Designs from the 1960s

L A Times, Tallahassee Magazine tout Downsizing with Manufactured Homes

 

Tuesday 12.23.2014

MHCommunities and Suppliers mostly up, MHCV rises and the Dow hits new high

Equity Lifestyle Properties stock Hits New One-Year High

Analysts say Downs and Ups, while others tout Carlyle Group as “World Class” returns

Conference Economists Predict a Prosperous 2015 and beyond, with caveats

Duck Dynasty’s Willie & Robertsons present Christmas gift – new Manufactured Home

 

Monday 12.22.2014

Manufactured Housing Composite Slide, Dow, S&P glide in new high ride

Michigan Bill to give local governments more control over MH Communities fails in lame-duck session

Alpha barking up the wrong tree? Decline of MHCs in PA and OH Doubtful

Protest Lodged Concerning HUD Contract for Dispute Resolution

Manufactured housing builder Nobility Homes Announces a 14 Percent Increase in Sales for FY 2014

 

Sunday 21.21.2014

Sunday Morning Weekly Recap – Factory Built – Housing News – for 12-14 to 12-20, 2014

##

14 Years – Time to Revisit the Manufactured Housing Improvement Act of 2000?

December 27th, 2014 Comments off

titleVI-manufactured-housing-improvement-act-2000-mhia-2000graphic-posted-daily-business-news-mhpronews-14 years has gone by since Congress passed what is styled as, PUBLIC LAW 106–569—DEC. 27, 2000 114 STAT. 2997. Congress found that:

‘‘SEC. 602. FINDINGS AND PURPOSES.

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) manufactured housing plays a vital role in meeting the housing needs of the Nation; and

‘‘(2) manufactured homes provide a significant resource for affordable homeownership and rental housing accessible to all Americans.

‘‘(b) PURPOSES.—The purposes of this title are—

‘‘(1) to protect the quality, durability, safety, and affordability of manufactured homes;

‘‘(2) to facilitate the availability of affordable manufactured homes and to increase homeownership for all Americans;

‘‘(3) to provide for the establishment of practical, uniform, and, to the extent possible, performance-based Federal construction standards for manufactured homes;

‘‘(4) to encourage innovative and cost-effective construction techniques for manufactured homes;

‘‘(5) to protect residents of manufactured homes with respect to personal injuries and the amount of insurance costs and property damages in manufactured housing, consistent with the other purposes of this section…

manufactured-home-living-news-posted-daily-business-news-mhpronews-com-

Photo from MHLivingNews.com.

Revisiting the Act

When the headline reads, “revisit” that doesn’t mean “change.” Manufactured housing need to revisit this important piece of legislation in the sense that the Government Accountability Office (GAO) study released last summer cited.

The GAO acknowledged that the law has not yet been fully implemented. See the MHIA 2000 and the GAO report, both attached as downloads below.

The GAO summary said in part:

Facilitate the availability of affordable manufactured homes. Owners of manufactured homes have lower monthly housing costs than site-built owners and apartment renters, but high financing costs often keep these homes from being even more affordable. HUD’s Federal Housing Administration (FHA) has two insurance programs for manufactured home loans.

Although most manufactured homes are titled or owned as personal property, HUD’s programs primarily insure loans on manufactured homes financed as real estate. Additionally, owners of manufactured homes are more likely to have higher-priced financing than owners of site-built homes. The 2000 Act required HUD to review the effectiveness of the FHA programs, but HUD has not developed a plan to do so. Such research would help HUD determine whether and how it might further facilitate the availability of affordable manufactured homes.”

MH professionals and associations need to revisit the MHIA 2000 with an eye to what happened that allowed this bill to pass and become law.  For example, how the two national associations and motivated state and community association then – and now – could synergize to advance the industry’s cause. MHProNews plans to feature commentary in the 1st quarter new year 2015 from professionals who experienced the passage of the MHIA 2000 to see what lessons can be learned and applied to advance the industry to more profitable levels today. ##

> MHIA 2000 download

> GAO 2014 Report download

> Related MH commentary

(Graphic: MHIA 2000, photo MHLivingNews.com

3D Printing Houses – A Threat to U.S. Manufactured Housing Industry?

December 15th, 2014 Comments off

3d_printer__house__bbc_co__contour_crafting__credit-posted-daily-business-news-mhpronews-In a follow up to a Daily Business News  story posted Saturday, this video below explores how 3D printing of houses posses a direct challenge to prefabricated construction.

One of the possible outcomes, says Black Rock Productions, is the potential for a loss of jobs in the construction field.

What Black Rock doesn’t ask, is how will this impact modular or manufactured housing?

Says Black Rock, “A new 3D printer announced by scientists at the University of New South Wales is capable of printing a house in under 20 hours. Is this the beginning of a new construction revolution.

The 3D printing of houses begs the question: what do factory built housing industry professionals want to see as their future role in the wider housing marketplace? Do MH professionals want good jobs for good people?  Shouldn’t quality homes built to strict federal standards under the MHIA of 2000 allow for placement in a wider array of locations?

The Daily Business News  could have picked any manufacturer’s video for the example above, and opted to pick an independent producer’s video done by our friends at ManufacturedHomes.com to make the point of hard working people building quality homes. Manufactured housing is filled with countless good people with great stories to tell.

But a growing numer of industry leaders say that manufactured housing must find ways to work more effectively together – to promote what MH does effectively. Failing that, we may witness a sea change imposed on MH from regulatory and/or market forces. What are your prepared to do? ##

See related columns:

 

Commissioners approves zoning amendment requiring Manufactured Home Communities be approved by BOA

December 11th, 2014 Comments off

town of-wilkesboro=credit-posted-daily-business-news-mhpronews-In North Carolina, the North Wilkesboro Board of Commissioners and the Wilkesboro Town Council approved zoning requests that were presented in public hearings this week. Wilkesboro Planning and Community Development Director Andrew Carlton presented a zoning code amendment requiring that Manufactured Home Community (MHC) plans be approved by the Wilkesboro Board of Adjustments (BOA), in addition to meeting code requirements.

Wilkes Journal–Patriot  tells MHProNews that Mayor Mike Inscore expressed the thought that Reporter Emily Storrow described as “the code left opportunity for developers to build dead-end roads, which could make it difficult for fire trucks to easily exit a mobile home park.”

Carlton declared that It should increase transparency and allow surrounding residents to voice concerns or support for future projects.” Storrow stated that Carlton’s point was that such a change would allow more citizen involvement.  

But were those code-words for NIMBY? Not in My Back Yard?

manufacturedhomes-com=credit-posted-daily-business-news-mhpronews-com-

Zoning and planning are among the issues that manufactured housing (MH) has faced for decades. While always important, this was less onerous in the sense that when MH Industry productions levels where higher, the practical impact on factory builders was not as great.

As America becomes more urban – and growing numbers live in suburbs and live in towns rather than rural areas – the issue of zoning becomes more important to everyone in the industry.  Zoning and planning clearly impacts the availability of affordable quality homes for citizens. That in turn can save-or-cost public budgets in the form of subsidies being needed, or their being saved by using modern manufactured homes vs. conventional construction.

This issue of zoning is one of the items MHARR and others have said that the Manufactured Housing Improvement Act of 2000 (MHIA 2000) wanted to remedy via “enhanced federal preemption.” In short, do local jurisdictions even have the authority to do what these towns and others are doing?  

Some 14 years later, where are we and our customer base as an industry on zoning and enhanced federal preemption?

Forward-thinking state association executives routinely point to the need for the industry to place homes in such cases that will blend or have good street appeal. There are unintended consequences on both sides of the fence, which in turn harms access to quality affordable homes for potentially millions nationwide.  

But it is up to manufactured housing professionals to make the case and work for the needed changes that will allow that greater access to more customers in towns, cities and suburbs to actually happen. No serious MH professional effort?  Means no serious change. ##

(Photo Credit: Town of Wilkesboro = top.  Home = ManufacturedHomes.com)

joseine-josie-thompson-writer-daily-business-news-mhpronews-com50x50-Article submitted by Josie Thompson to – Daily Business News – MHProNews.