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Citing Justice Department Ruling, MHARR Calls on HUD to Repeal Regulatory Guidance Documents

April 25th, 2018 Comments off

DepartmentofJusticeLogoHUDlogoManufacturedHousingAssociationforRegulatoryReformLogo525x310

The Justice Department [DOJ], which is charged with bringing civil actions to enforce federal health and safety laws, has now made it crystal clear that HUD may not use sub-regulatory ‘guidance’ documents that have not been considered by the MHCC and have not gone through rulemaking, in order to impose new or modified mandates on manufacturers of HUD Code homes, and new unnecessary costs on manufactured home purchasers,” said Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR).

 

MarkWeissJDPresidentCEOManufacturedHousingAssocRegulatoryReformDailyBusinessNewsMHProNewsFrom their offices in Washington, D.C.,  Weiss said in a statement to the Daily Business News that, The tragedy is that Congress itself said exactly the same thing nearly two decades ago when it included section 604(b)(6) in the Manufactured Housing Improvement Act of 2000.”

The rephrasing, the DOJ and the Trump Administration are reemphasizing the common sense notion that the law should be followed, as opposed to guidance or other documents that have not gone through the proper rule making process. In the case of manufactured housing, the process includes the Manufactured Housing Consensus Committee, or MHCC.

The time has come for HUD to finally obey the law as written, and its ongoing EO 13771/13777 review of all existing and pending regulations and “regulatory actions” offers the perfect opportunity for HUD to formally renounce both the fatally-flawed 2010 “Interpretive Rule” and its pile of invalid pseudo-regulatory “guidance” documents – before the Justice Department, or a federal judge, does it for them,”  said Weiss.

Weiss statements fit with principles outlined by MHProNews editorially and in regulatory comments letter t HUD in January.

The balance of the MHARR release to MHProNews reads as follows.

MHARR CALLS FOR REPEAL OF HUD   

MANUFACTURED HOUSING “GUIDANCE” DOCUMENTS

Washington, D.C., April 25, 2018 – The Manufactured Housing Association for Regulatory Reform (MHARR), citing recent rulings by the U.S. Department of Justice (DOJ) stating that DOJ would no longer use its authority to enforce Executive Branch agency “guidance” documents in civil court enforcement actions relating to alleged violations of federal health, safety, civil rights and environmental laws, has called on HUD to formally repeal manufactured housing regulatory “guidance” documents which should have been published for notice and comment and subjected to Manufactured Housing Consensus Committee (MHCC) review pursuant to section 604(b)(6) of the Manufactured Housing Improvement Act of 2000, but were not. MHARR, in the same April 25, 2018 communication (copy attached), also calls on HUD to repeal a 2010 “Interpretive Rule” which erroneously construes section 604(b)(6) of the 2000 reform law to require notice and comment rulemaking and MHCC consensus review only for HUD regulatory actions that would otherwise constitute “rules” within the meaning of the federal Administrative Procedure Act (APA).

For decades, the HUD manufactured housing program used “guidance” and other psuedo-regulatory pronouncements to evade the rulemaking requirements of both the APA and the original Manufactured Housing Construction and Safety Standards Act of 1974.  When Congress sought to put an end to this abusive practice by including section 604(b)(6) in the Manufactured Housing Improvement Act of 2000 – which, on its face, requires prior MHCC review and rulemaking for any new or modified “policies, practices or procedures” relating to “standards, regulations, inspections, monitoring or other enforcement activities” – HUD promptly ignored Congress’ clear directive, ultimately issuing the 2010 Interpretative Rule, which effectively and unlawfully read section 604(b)(6) out of the law, by limiting its application to “rules” that already require rulemaking under the APA.

This action to negate the clear and unambiguous will of Congress (with the passive acceptance of some within the industry), effectively opened the floodgates to a train of ever-increasing abuses during the Obama Administration – and particularly under the tenure of former program Administrator Pamela Danner – which saw multiple new, costly and needlessly burdensome de facto regulatory mandates imposed by HUD via “field guidance” and so-called “Standard Operating Procedures,” which were never brought to the MHCC for prior review, or published for notice and comment.  These include, but are not limited to: HUD’s massive expansion and re-direction of in-plant regulation; “frost-free” foundation “guidance,” which effectively modified an existing regulation; new and modified requirements for attached garages and other “add-ons;” baseless restrictions on multi-family manufactured housing; and memoranda relating to on-site completion, among other things.  Such actions – and many other similar pseudo-regulatory mandates — have significantly harmed both manufacturers (particularly smaller independent producers) as well as the industry’s post-production sector, by needlessly increasing regulatory compliance costs and simultaneously undermining the industry’s ability to compete with other segments of the housing market. Through these devices, and through the unchecked and unaccountable activities of its program “monitoring” contractor (set forth in a non-competitive contract which itself violates multiple aspects of federal law), HUD has developed – and enforces — an entire secondary tier of unlawful mandates under the guise of “interpretations” and “guidance.”

Recognizing the extremely damaging effects of such psuedo-regulation and reflecting the regulatory reform policies of the Trump Administration, the DOJ, in its rulings issued on November 16, 2017 and January 25, 2018, determined that it will no longer “use noncompliance with guidance documents as a basis for proving violations of applicable law” in civil lawsuits to enforce federal health and safety laws, such as the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended by the Manufactured Housing Improvement Act of 2000.  To the extent that HUD’s manufactured housing “guidance” documents conflict with this ruling and Trump Administration regulatory policy, MHARR’s April 25, 2018 communication calls for their retraction and repeal as part of HUD’s Executive Order (EO) 13771/13777 “top-to-bottom” regulatory review of the federal manufactured housing program. Similarly, insofar as the DOJ rulings show that HUD’s 2010 Interpretive Rule is fundamentally erroneous and fatally flawed, MHARR’s communication calls once again for the repeal of that rule.

About MHARR

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

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

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

U.S. Housing Trends and Manufactured Housing, Investor Data

April 19th, 2018 Comments off

USHousingTrendsandManufacturedHousingInvestorDataUMHDailyBusinessNewsMHProNews

Publicly traded companies often prepare graphically rich, and insight laden information in their investor relations (IR) presentations.

 

This snapshot here is from UMH Properties (UMH) latest IR presentation.

FavorableUSHousingTrendsManufacturedHomeDailyBusinessNewsMHProNews

UMH is one of the largest community operators in the U.S. They are identified as a Real Estate Investment Trust (REIT) in the manufactured home community (MHC) space.

UMHPropertiesManufacturedHomeCommunityInvestorPresentationManufacturedHousingIndustryDailyBusinessNewsMHProNEws

UMH also operate some retail centers, which their president Sam Landy, JD, mentions as underperforming in video interviews conducted last year. Those videos with their CEO are linked below.

UMHPropertiesCompanyGrowthChartManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsUMHPropertiesBalanceSheetMetricsChartManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsTheir latest presentation presents some information that is intended to highlight the opportunities and appeal of manufactured homes in the current economic and housing climate.

UMHPropertiesPorfolioGrowthChartManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsUMHPropertiesPaceofAquisitionsManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNews

 

UMH’s presentation naturally provides reasons why they believe that they’re particularly well suited for an investor to consider.

UMHPropertiesFinancialHighlightsManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsUMHPropertiesSalesFinanceManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNews

It should be noted, as a disclosure, that the Daily Business News’ parent company and owners hold no stock in any manufactured home operation.

UMHPropertiesLoanPortfolioManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsUMHPropertiesSamePropertyNetOperatingIncomeManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNews

There is steady growth in recovery of the industry, as the charts below reflects.

2008to2017HUDCodeManufacturedHomeProductionTotalsMHARRManufacturedHousingAssocReglatoryReformDailyBusinessNewsMHProNews

ManufacturedHousingIndustryShipmentsFEMAManufacturedHomesNotMobileHomesTrailersIndustryResearchReportsDataMHProNews

Credits, MHI, Cavco.

But the realities about manufactured housing indeed should reveal reasons why the industry ought to be roaring.

“Trailer House Trauma,” Fresh Look at Manufactured Housing’s Opportunities

UMHPropertiesValueAddedAquistionsManufacturedHomeCommunitiesIndustryInvestorRelationsDataDailyBusinessNewsMHProNewsUMHPropertiesstreetViewManufacturedHousingINdustryDailyBusinessNewsMHProNEws

RVs are outselling manufactured homes by some 5 to 1. Yet, even the lowest cost towable RVs are costlier per square foot than a typical manufactured home.  RVs are a luxury item for most, while manufactured homes are a permanent housing option.

Manufactured Housing – Regulatory, Other Roadblocks and Potential Solutions, Up for Growth Research, plus Urban Institute Report Revisited

The new 2018 Up for Growth study reveals just a great the need is for new homes. For more on that, and the realities of why manufactured housing has not yet robustly tapped those new home sales opportunities, click the related report, linked above. ## (News, analysis, and commentary.)

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

Related Reports:

Sun Communities Annual Data and Manufactured Housing Industry Investor Presentation Highlights

Investors’ View of Manufactured Housing Industry Production & Retail – Cavco Industries (CVCO)

  1. To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

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

Nobility Homes now Trading on Over-the Counter Market

April 20th, 2015 Comments off

nobility homes  their credit  florida companyMHProNews has learned from prnewswire that Nobility Homes, a Florida-based producer of manufactured and modular homes for more than 47 years, has qualified to trade on the OTCQX® Best Marketplace under the symbol NOBH.

R. Cromwell Coulson, President and CEO of OTC Markets Group, said, “We are proud to welcome Nobility to our growing family of established companies on OTCQX and look forward to supporting the company in its continued growth and success in the public markets.

Presisent and CEO of Nobility, Terry Trexler said, “This upgrade to OTCQX will give continued credibility to the company and continued confidence to investors regarding the quality of information they have available on the company.” In addition to building homes, Nobility also sells, finances and insures HUD Code and modular homes in Florida.” ##

(Image credit: Nobility Homes)

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

 

Many Voices being heard a Key to advancing the MH Industry?

December 9th, 2014 Comments off

idea-image-credit=enrichment-journal-posted-daily-business-news-mhpronews-com-In an effort to push forward with political, best practices, policies, image and other issues, the Manufactured Housing Industry is wise to take a page from IBM and get many voices involved. In an article for the New York Times (NYT) by Phil Gilbert, general manager of IBM Design, he credits success by giving all those involved a voice.

IBM’s Gilbert states: “But getting the best work out of a team isn’t about silencing the loudest person. It’s about getting everyone involved to explore every angle, bring all ideas to the surface and collaborate on a path forward.”

Gilbert says many different strategies used during his time at IBM says, “when your organization is in the midst of transformation — whether it is a three-person start-up hiring a fourth employee or a big global company leading major shifts in technology — you are faced with teams of people who don’t necessarily have the shared experiences that enable them to behave well together. Team dynamics can easily get in the way of good ideas, and the loudest voice often wins.

Certainly, with manufactured housing on a 5 year uptick, but still at historically low levels and consolidations occuring on a routine basis, most pros would agree this is a time of transformation.

A recent article posted by MHProNews,  Danny Ghorbani, President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) said: In my view, manufactured housing is a unique industry, blessed with hard-working men and women who are dedicated to building the most affordable, safe, efficient and state-of-the-art homes for American families – and the time has come for an aggressive campaign to spread the industry’s positive message nationwide.Read More

As noted in a recent DBN report, there are many voices that speak for Manufactured Housing, ranging from associations, corporate, investors, professionals and other interested parties. As IBM’s Gilbert noted, involvement now is a key to advancing the businesses that make up the MH industry. ##

(Photo Credit: Enrichment Journal)

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