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“Trailers for Sale or Rent,” “Pencil Head, Its Not a Trailer Park,” Manufactured Home Rental Reality Checks

June 11th, 2018 No comments
TrailersforSaleorRentPencilHeadItsNotATrailerParkManufacturedHomeRentalRealityChecks

Face on left is a still from the music video, below.

It’s classic Sam Zell. “Pencil head,” Zell would say to potential investors who didn’t completely ‘get it’ about what is known today as Equity LifeStyle Properties (ELS), “it’s not a trailer park.”

 

It’s not a trailer park. So true.

pencil-head-its-not-a-trailer-park-els-chairman-sam-zell-c2013lifestyle-factory-homes-llc-all-rights-reserved-manufactured-ho

To see the quote from an exclusive interview with Sam Zell, click the link here or the image above.

But the song by Roger Miller, King of the Road,” provides an interesting glimpse at a historic period in MHVille that ought to be reconsidered. In decades long passed, there once weretrailer parks.”

Miller’s song opens with these lyrics.

Trailer for sale or rent, rooms to let, fifty cents.

No phone, no pool, no pets, I ain’t got no cigarettes

Ah, but, two hours of pushin’ broom

Buys an eight by twelve four-bit room

I’m a man of means by no means, king of the road…”

King of the Road” was like a battle hymn of affordable housing populists in the mid-to-late 1960s.

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

Make a habit of using the correct terminology.

Unlike the video posted above, those true trailer houses and mobile homes of that era were newer and nicer then. It wasn’t a scandal when Elvis Presley honeymooned in a mobile home.

Elvis & Priscilla Presley Honeymooned in this Mobile Home

As informed MH Industry professionals know, it wouldn’t be until June 15, 1976 that the first manufactured homes were built. That anniversary of the dawn of the manufactured housing era comes again, this week.

For some, as “Trailer House Trauma” dramatized, the trailers of yesteryear were often seen as cool, and classy.

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

But over the years, somehow that higher degree of acceptability of mobile homes and trailer houses changed.

Part of the solution of the industry’s image issue today is to recapture its largely forgotten glory days.

To do so is both easy, and complex. For example, the industry must give every facet of pre-code mobile home owners – plus their early manufactured home evolutionary offspring – their well-deserved dignity and respect.

Affordable housing, then and now, ought to be celebrated.  Affordable housing can make even those ‘of modest means,’ King of the Road.”

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews

What was accomplished previously in sustainable shipment levels, can clearly be done again.

 

Rediscovering Mobile Home Parks, and Manufactured Home Communities

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The mainstream media, researchers, investors, and politicos are discovering – or rediscovering – manufactured home (MH) communities (MHCs).

Part of the business model mix today is the notion of renting vs. selling HUD Code manufactured homes.

As the Glen Miller song lyrics reminds us, for decades there have been some who rented instead of sold units. Zell has suggested that rentals must be well managed, and kept marginal.

Arguably, renting homes was revived in part as a response to the flaws of Dodd-Frank, and how the CFPB under Richard Corday implemented the regulations regarding manufactured home financing.

The interview with Sam Landy, JD, from a couple of years ago, makes the point why seller financing was often dropped.  That’s explained in a report with a video interview linked below from a large community owner’s perspective.  Landy is also an attorney, which puts even more insight to the concerns that motivated their change to rentals. All of the linked reports can be read later for the added details, quotes, and color.

 

Sam Landy, UMH CEO, on Dodd-Frank and The Preserving Access to Manufactured Housing Act – S 682/HR 650

 

Manufactured Home Producers, Selling and/or Renting HUD Code Manufactured Housing

To dozens of factories, it doesn’t matter much if the manufactured home being shipped are going:

  • into a development where the home will be rented,
  • to a retailer who will sell the home,
  • or into one of hundreds of the estimated 45,000 land-lease communities from coast-to-coast where presently it will often be rented rather than sold.

Indeed, as yet another community operator told MHProNews recently, the ROI on rentals is strong.

UMH is one of several REITs or private portfolio operators who rent more manufactured housing units than they sell.

As Don Westphal said during a Manufactured Housing Institute (MHI) meeting, there are reasons to hope that renting homes may introduce a new wave of people to the manufactured housing industry. They may, he said, as a result buy later on.

While Westphal’s point might make sense in theory, the total shipment data doesn’t yet reflect that reality. Could it be made so?

Possibly.

In as much as a modest percentage convert from renting to buying, the potential exists.

 

Manufactured Housing’s Multi-Family Housing Opportunity?

There are no throw away or filler articles published on MHProNews. Each post or report exists for specific reasons. As the publisher, we admit that in hindsight, there are articles that we frankly might blanch at today that were published x years ago. But at that time, based upon what we then knew, we then-and-now have aimed for relevant topics.

As a result, industry professionals have always rewarded us with their time, and read about double the pages per visit than the average mainstream news websites get, per third-party data.  While the data has changed (e.g.: more traffic now than then), the prior video plug below makes the point.

 

MH Opportunities Knock

That’s said in part because there are significant opportunities to develop with manufactured housing, using more manufactured homes as rentals.

We’ve examined numerous issues, and scrutinized several themes over the years.  We’re refining insights into critical topics in the last 2 years. Each refrain is important-to-vital for the future of the sustainable growth of MH independents.

In an upcoming video interview, we have a retailer on camera who sold numerous residential style manufactured homes to a developer.

That developer using manufactured homes is reportedly renting the units as fast as he can get them in and properly installed.

Rephrased, a manufactured home retailer sold upscale models to a developer, not entry level ones, to be used for rental housing. Those residents who rent those sharp homes will be able to bring their family and friends over, to show them off with pride.

That in turn may fuel more of Westphal’s hope that rentals could lead to more sales.  It is one of several possible approaches, including the recent report on ‘reaching for the sky‘ with high-rise manufactured home towers.

High-Rise Manufactured Home Stackable Towers, Compete with Modular/PreFabs, Density at Lower Cost

The multiple-story manufactured housing Daily Business News report above spotlighted how the industry could be going vertical in more ways than one. The better-known expression for going vertical in MHVille is linked below, and can be read later for more depth of understanding.

 

Multi-Family with Manufactured Homes

The points noted herein are many, and some are nuanced.

On the one hand, factory-home builders ought to be doing 500,000 to a million new HUD Code manufactured homes a year.  Yet this year, the current estimates are that MH will finish with around 100,000 (+/-) new home shipments.  Ouch.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

There’s plenty of evidence – decades of proof of concept – that manufactured homes can be rented or sold. It’s a matter of chutzpah, the 7Ts, and establishing systems that allow one to scale results.

For example, as new apartments are going up, the evidence reflects that they fill up fast.

Bob Sullivan in Credit, citing the Urban Institute stated in a Nov 2017 report that “Today, single-family rental homes and townhomes make up 35% of the country’s 44 million rental units, compared to 31% in 2006.” and Almost all the housing demand in recent years has been filled by rental units,” says Sara Strochak, a research assistant with the Urban Institute. She also states that single-family rentals have gone up 30% within the last three years.”

Line those facts up with single-family manufactured homes, and the light-bulb for large, upside opportunities should be going off more often.

So, occasions for MHVille investing and earning more are actually more widespread than some in the business may realize.

 

Why the Low Production Numbers?

So why aren’t more new manufactured homes being shipped?

The reasons are many. But about a decade ago, capital constriction – artificially, by failing to follow federal law, and other forces – caused hundreds of retailers and numerous factories to fail or sell out for less. Related resources linked below will have more details.

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

But some of what’s gone wrong is perception.

SteveDukeLMHATheTerminologyMattersBecausetheTerminologyDefinesTheConstructionStandardsDailyBusinessNewsMHProNewsMHLivingNews1

 https://www.manufacturedhomelivingnews.com/the-ultimate-manufactured-home-industry-fact-data-and-insights-bullets-plus-at-a-glance-infographic/

We beat the drums on terminology in part because of two words. “Trailer trash.” How many people do you know that want to be known as “trailer trash?”

 

Millennials Need Affordable Housing, but “Trailer Park Boys” stigma slows Manufactured Home Acceptance

 

For example, we made numerous strategic efforts, sadly without any assistance from the folks in Arlington, to recast the discussion on the T-word.

RevDonaldTyeJrManufacturedHousingAdvocateQuickestWayWealthIndustryVoicesMHProNews500

Note, this graphic will be updated with the link to Rev, Tye’s comments, later today.

When is it appropriate to use the word “trailer?”

ItsAsWrongtoUseNWordToDescribeBlackAsUseTWordTodescribeManufacturedHomeRevDonaldTyeJr.ManufacturedHousingNotT-railerNotNword

Isn’t this part of the antidote to the t-word issue?

When should the “T-word” be seen like the N-Word?

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.

The industry’s members and investors have several options to improve results. All of it should come down to a two words.

Compelling Education.”

Retailers, Communities, Developers, Financial Services, Producers and others must invest in education of their team, and the public. Those various forms of education must take place simultaneously.

That education must include a component that recognizes the dignity of our contemporary home buyers and residents.

That education must happen based upon facts, not hype.

The industry’s so-called leadership has arguably failed to make that case. It’s a reason why there are several alternative regional and national groups beginning to form to challenge MHI in the post-production advocacy.

ManufacturedHousingInstituteMHILogoMHIInfographicSnapshotFactCheckDailyBusinessNewsMHProNews600

 

Sam Landy was and is correct when he said that each company is responsible for its own marketing. Similarly, each operation is responsible for its own sales training program.

What is being “taught” by MHEI may have some value, but it clearly isn’t moving the industry’s needle, when making some common-sense comparisons, and reality checks.

RVAnnuaShipments2011to2016RVIALogoDataCompareManufacturedHousingIndustryDataDailyBusNewsMHProNews

The RV industry has sold rings around manufactured housing for years. Why? RVs cost more per square foot, and are a luxury item, not a necessity like housing. Thus, RV data, combined with the data from NAR’s Lawrence Yun tell us that manufactured housing could be doing a million new HUD Code homes annually, in a sustainable fashion.

Despite the evidence that MHI had a member company – ours, on the consulting side of our operation – that succeeded time and again at attracting the site-built buyer – sources say that MHI first attempted to sideline us, then tried to derail us.  It’s an outrageous conflict of interest, but per sources, not the first or the last.  But the question should be asked, why would they not spotlight that proof of concept?  Doesn’t MHI’s leadership want more growth?

AnnParmanVPManufacturedHousingInstituteMHILogoLATonyKovachMobileManufacturedHomeLivingNewsMHProNews800

Why did they spin and attempt to bury such behavior? Let’s see if they publicly answer that question, shall we?

 

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

The allegations herein, and those made by Marty Lavin, MHARR, and other voices in HUDVille are serious ones.

The facts reveal that manufactured housing could be doing far better.

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

The most recent backstab at MHI member companies may be what some are calling the “new class of homes” scam. Producers, including MHI members, are disturbed by what Fannie Mae is doing, apparently with MHI assistance.

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

 

Congressional, Federal, State Investigations

This publication asked before that the minutes of the MHI GSE closed door meeting be revealed. We think it’s time for even more federal investigators to occur, plus state AGs to get involved. The link below mentions some federal investigations that are already underway.

The arguable failures at the Arlington-based national trade group are numerous.

Nevertheless, they continue to get the support by Berkshire Hathaway brands consistently. That fact belies any theories of mere arrogance, incompetence, collective low level of experience in MHVille, etc.

Put differently, Berkshire Hathaway won’t reward non-performance. Clayton closed roughly 100 of their own retail centers since 2011. Isn’t it reasonable to believe that the Berkshire brands in MHVille like what MHI is, and isn’t doing, and getting done?

Why would Jennison get his contracted extended at all? Several current and former MHI VPs have had less than favorable comments about Jennison’s abilities.  That’s simply a fact, repeatedly told to MHProNews.  So given the questions about the man, from his own office, why was he renewed? Or more to the point, why did he get a bonuses or a raise, per their IRS form 990?

Busted! “Failure Bonus” Paid-Richard “Dick” Jennison, CEO Manufactured Housing Institute-per MHI Document$

More than one attorney the Daily Business News has spoken with see potential grounds for civil actions and/or anti-trust case potential. Other legal claims may be possible, such as allegations of deceptive trade practices charges, interfering in contractual relationships, conflicts of interest, RICO, and other instances that could result in federal and/or state bureaucratic action.

Lawsuits for Triple Damages – Anti-Trust, Anti-Monopoly Law, Manufactured Housing, and You

It must be noted that those attorneys include those who are exploring class action or other claims on a contingency basis. Contingency cases mean that law firm must have a high degree of confidence in their potential case.

Will Berkshire Hathaway brands and MHI have a defense to mount? Of course. That’s what courtrooms, and the legal system are for, to give a civil battlefield for legally contentious concerns.

For over a year MHI and the Berkshire Hathaway brands in MHVille have declined numerous opportunities offered by MHProNews to respond in writing to the concerns raised, or to debate them publicly via video.  They fact that they won’t engage speaks volumes, doesn’t it?

The fact that Rick Robinson would not answer trade media questions in Deadwood, SD speaks volumes.

RickRobinsonManufacturedHousingInstituteMHIDailyBuisnessNewsMHProNewsDitto when Dick Jennison ducked out on a presentation scheduled weeks in advance.  He did so after we published a list of questions attendees should ask him during the Q&A.  That too should shout “what’s going on?” Even pro-MHI state association executives told MHProNews how suspicious that behavior by Jennison.

RichardDickJennisonManufacturedHousingInstituteMHIPresidentCEOLouisvilleManufacturedHomeShow2018DailyBusinessNewsMHProNews-76

The Top Twelve Questions for Manufactured Housing Institute (MHI) CEO, Richard “Dick” Jennison

Manufactured housing has come of age.

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

Manufactured homes are the solution to the affordable housing crisis that’s hiding in plain sight, as MHLivingNews spotlighted years ago. That slogan we floated is becoming a more common refrain in the mainstream media.

“The Solution to the Affordable Housing Crisis is Hiding in Plain Sight”

But until the debatable chokehold of Arlington, Knoxville, and Omaha are fully exposed and lawfully dealt with, consolidation rather robust growth may sadly continue.

EricBelksyManufacturedHousingIndustryManufacuredHomeManufacturedHousingInstituteResearchDataAffordbleHousingMHProNewsDailyBuisnessNews575

See Smoking Gun 3.

That seems to be the unstated purpose of MHI.  That’s why we’ve editorially dubbed MHI the ‘Monopolistic Housing Institute.’

The foot must be taken off regulatory and capital brake peddles.

The Trump Administration has repeatedly shown that they’re doing its part. We pray daily that the administration won’t mistakenly allow some Berkshire Hathaway lackey to be named as the next administrator at the Office of Manufactured Housing Programs. The next administrator must be sensitive to the interests of independent producers, who are fighting against giants.

ClaytonHomesSkylineChampionCavcoIndustriesBalanceofIndustryManufacturedHousingIndustryConsolidationGraphicPieChartMHProNews

The affordable housing crisis is costly to tax payers. The regulations have for years been harmful to competing investors, and independent businesses, who create jobs in MHVille that make the American Dream possible for more good people.

The industry hasn’t sold trailers or mobile homes for more than 4 decades.

We need more industry voices willing to support the common-sense cause of fully enforcing specific, existing laws.

  1. The robust implementing of the Duty to Serve manufactured housing by the Enterprises.
  2. To do the necessary tweaks to FHA and other federally insured loans to break the Berkshire Hathaway finance grip, and
  3. to fully enforce the Manufactured Housing Improvement Act of 2000, including enhanced preemption.

Doing so will fully harness the power of manufactured housing to serve millions of Americans, with little or no tax payer subsidies. It’s a series of mutual victories, once the choke holds noted are removed.

 

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

 

The full implementation of the 3 points above could unlock some $2 trillion dollars in additional Gross Domestic Product (GDP), per third party research.

The case for contemporary manufactured housing advancement as the solution for millions of Americans is made above.  At the heart of the American Dream is the saying, “a man’s home is his castle.”

From the days of the 1960’s ballad King of the Road,” to today, the evolutionary solution is the same. Factory-built housing makes sense.

It is up to forward looking professionals to navigate the issues noted, to move manufactured homes up to meet the potential that Operation Breakthrough, Harvard’s Eric Belsky and a GSE – among others – said manufactured housing could achieve.

That’s why the billionaires want as much of the industry as they can get their hands on. ## (Coaching tips, marketing, sales, and management news.)

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

Related Reports:

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

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, 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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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)

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Resident Homeowner Groups, Public Policy, Media, Manufactured Housing, Investors, and You

October 24th, 2017 Comments off

PeopleGlobeSmartPhonePixabayDailyBusinessNewsMHProNewsState associations, in places such as Ohio or Florida, have demonstrated their ability to work with resident/homeowner groups on a variety of issues.

For example, Tim Williams and Andrea Reichman with the Ohio Manufactured Home Association collaborated with resident groups in their recent battle to save their state regulatory structure, as was extensively reported on the Daily Business News.

So, the notion that resident/homeowner groups are always in opposition to business interests in manufactured housing would be an inaccurate one.

At the same time, in places such as California, industry professionals witness a routine push by some resident organizations for rent control. MHProNews covered the fight over Measure V extensively.

BattleOverMeasureVYes-NO-ManufacturedHousingIndustryDailyBusinessNewsMHProNews--575x214

Commentary on rent control via Industry Voices last year by:

and others who’ve provided expert commentary demonstrated a point made on MHProNews years earlier.

That Vexing, Controversial Rent Control Issue – The Point? 

Rent control fails everyone; residents, industry professionals, policy advocates, and those public officials who say they want to preserve affordable housing.

In fact, as the Canadian and other examples reported for years by MHProNews years before reflected, rent control results in a dramatic drop in new development, and has other negative impacts for consumers and professionals alike.

That makes Bradley’s point, that there must be a better way.

Ross Kinzler said in his commentary on Congressman Keith Elision’s bill which would impact manufactured home communities, that state and local policies are often harming affordable housing, rather than helping it.

Ishbel Dickens, NMHOA and Industry Issues – Like Rent Control

In spite of the track record of rent control failures in the U.S. and Canada, Ishbel Dickens – former executive director of the NMHOA – has not yet lived up to the challenge issued by MHProNews publisher and industry consultant, L. A. “Tony” Kovach to discuss/debate the issues that face the MH Industry.

IshbelDickensPhotoNationalManufacturedHomeOwnersAssocNMHOALogoDailyBuisnessNewsMHproNews

Home owners and professionals in most ways should share a common set of goals.

Quality affordable home ownership is what attracts and retains millions of manufactured home owners, which MHLivingNews, federal HUD Data, and third-party consumer satisfaction research has revealed are routinely proud to call their homes their own.


Dickens, as was previously reported and is reflected in the email/collage shown, suggested in writing that such a public discussion could take place, if the “seamier side” of the industry was reported (see screen capture of her email, above).

Such reports have been done for years by the Daily Business News, including the very issue that Dicken’s referenced, which few if any other’s MH Industry’s publishing have covered at all, much less as robustly.

So that assurance by Dickens to engage on behalf of her members has yet to be fulfilled by the NMHOA.

A similar point could be made about left-of-center, MHAction.

MHActionHarmsManufacturedHomeOwnersMDailyBusinessNewsMHProNews

Whatever their motivations may be, attacking private capital doesn’t attract more investors to create or update properties that would provide quality manufactured home communities. To see The Road to Hell, click here.

PBS and Carla Burr

An invitation to publicly discuss via a video recorded live event has been made to the resident group leaders, as well as to the representatives of the Manufactured Housing Institute (MHI).

Both those resident groups, and MHI have ducked that public video discussion/debate.

Why?

Editorially, L. A. “Tony” Kovach has argued privately and publicly with resident leaders of MHAction or NMHOA that some of their tactics and policy positions harm their own home owners, as well as the industry.

The objective research reflected by third parties would come to a similar conclusion; namely, that rent control doesn’t work as claimed.

The reasons are simple.  Rent control violates the law of supply and demand, while it changes the risk-reward matrix for owners and investors.


John Jenkins, Hurricane Irma, Manufactured Home Owner,
Community Resident, Tells His Storm Survival Story

Similar violations of economic principles don’t work for Republicans like President Richard Nixon’s wage/price controls, nor for Democrats or any others.

Like gravity, those laws as applied to rent control can seemingly be suspended for a time, but only by expending energy/cost. During and after such artificial energy/cost, price controls reduce development, forcing some community owners to redevelop.

Yet that is the very thing that Ellison’s and others claim to want to avoid.

The Carla Burr PBS interview is an example of how a left of center mainstream media outlet tilted a report in a way that harmed the image of the entire industry. Using the principle of supply and demand, doesn’t that in turn harm every manufactured home owner’s value?

The Solution Is All American

Each of those linked industry professionals cited above provides keen insights into what seemingly is a complex issue.  The bottom line should be that residents and professionals work together, and seek understanding.

Paraphrasing Sam Landy, no savvy business owner wants to raise rents at a rate that creates stress for their residents.

American principles of free enterprise, properly applied, and earnest discussions between parties that seem to disagree, are the foundation for advancing the mutual interests of home owners, home seekers, public officials, industry professionals, current and potential investors.

Rent control, doesn’t the evidence show that it has done far more harm, than the alleged good? “We Provide, You Decide.” © ## (News, Analysis.)

(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.

 

 

 

 

Star Parker, Draining the Dodd-Frank Swamp

June 16th, 2017 Comments off

StarParkerCUREdrainingDoddFrankSwampFMNT97PostedDailyBusinessNewsMHProNews647Wikipedia says that, “Star Parker is an American syndicated columnist, Republican politician, author, and conservative political activist. In 1995, she founded the Center for Urban Renewal and Education (CURE), originally the Coalition on Urban Renewal and Education. In 2010, she was the unsuccessful Republican nominee for the United States House of Representatives in California’s 37th District.”

The manufactured home industry and its consumers are widely seen as having suffered since the enactment of the so-called Dodd-Frank reforms.  While the Seattle Times and CFED were among those who have defended Dodd-Frank as it is currently being enforced by the Consumer Financial Protection Bureau, the industry’s lenders have all had to pay a price for this well-intended, but nevertheless harmful regulation.

U.S. Bank, several other smaller lenders, UMH Properties and others have been among those who were forced out of the lending arena, not because they weren’t successful.  Rather, they say, it’s because the regulatory risks were too great for the relatively low volume of loans being done. See the interview and article, linked here.

inside-mh-sam-landy-jd-ceo-umhproperties-inc-freehold-nj-manufacturedhomelivingnews-com-

As one of our sources in Washington, D.C. tells MHProNews, Dodd-Frank isn’t the only problematic issue that faces the industry.  There is also to this point a failure by the Government Sponsored Enterprises (GSEs) to do a meaningful level of chattel or other lending on manufactured homes.

Nevertheless, Dodd-Frank has driven up costs, said Triad Financial Services President, Don Glisson, Jr. While they were able to adapt, consumers and businesses alike suffer from an otherwise depressed level of sales.

Against that backdrop are the thoughts of columnist and conservative pundit, Star Parker.

Parker on the Dodd-Frank “Swamp”

“…The 2,300-page Dodd-Frank Act was passed to fix what supposedly was broken in our financial system that led to the massive financial collapse in 2007,” says Parker, in a new column published on sites like GOPUSA and many others.

The potential economic impact of the sweeping reforms of the Financial CHOICE Act are as far reaching as anything going on in Washington today. But you probably haven’t heard about it.

The press is filled with news about Russia, James Comey, Jeff Sessions. Yet hardly anything about this. Why?”

What Parker doesn’t mention is that there is no evidence for collusion between the Trump campaign and the Russians, as several Democrats and every intelligence service head has stated, on the record.

Instead, she points to an article on the Wall Street Journal, and then says, “Guess Who’s Defending Dodd-Frank? The answer is the nation’s biggest banks.”

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Star Parker, credit, Wikipedia.

She continues, “The full title of the Dodd-Frank law is The Dodd-Frank Wall Street Reform and Consumer Protection Act. The website of the Obama White House explained the law as “Holding Wall Street Accountable.

It attributed the crisis to the major financial institutions in New York,” states Parker.

 

You would think those same institutions, the nation’s largest banks, would be unhappy about all the new regulations that they now have to live with.

But, as the Wall Street Journal points out, these same banks are defending Dodd-Frank and opposing the Republican reforms.

This is really about the “swamp” that this new Republican administration is supposedly now in Washington to drain.

The “swamp” is about Washington business “special interests” working with Washington political “special interests” to make law that makes them both happy.”

Parker points to another expert, and then tosses a thunder-bolt, “As American Enterprise Institute scholar Peter Wallison points out, the Dodd-Frank Act was not produced after a serious investigation about what really caused the crisis. It simply was an opportunity for Democrats to take advantage of the crisis for major expansion of government.

bank-vault-door-closed-creditflickr-creative-commons-MHProNews

In news, commentary, and analysis, MHProNews was alone among industry news sources saying weeks before the U.S. Bank closure of their MH Lending program, that low volume sales were a risk factor for the industry, along with the regulatory burdens caused by Dodd-Frank, and other federal, state and local policies.

Given this reality, Wall Street gladly worked with Democrats to build a new regulatory structure that would provide them a nice, new feathered bed.”

She draws to a close saying, “Unfortunately, the small community banks, whose market share is now shrinking because of the Dodd-Frank regulations, have always been a major source of loans to small business. The arteries carrying capital to the grass roots of America have been clogged. According to Wallison, and other economists, this is a major reason why our economy is growing so slowly.

The House has done its work to fix this problem with the Financial CHOICE Act.

Now its [sic] up to the Senate, including the 11 Democrat senators up for re-election in states carried by Donald Trump in 2016, to step up and do the nation’s business and pass these critical reforms.” ##

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

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

Zillow Group Study Reveals Trillions in Manufactured Housing Industry Opportunities

April 11th, 2017 Comments off
TrillionsInUSAffordableHousingNeeded

When you do the math from the recent Zillow study, and compare it to data from NAHB or NAR, there are trillions of dollars in affordable housing demand – and thus opportunities – in the next few years. Taxpayer subsidized housing programs won’t be able to cover that cost, but the proper approaches for using modern manufactured housing could.  Graphic credit, MHProNews.com/GraphicStock.

When life hands you lemons, make lemonade.

When the Zillow Group’s ™ recent survey of Consumer Homebuyer Trends tells you 92% of Americans aren’t considering a manufactured home – and only half of those who ponder manufactured housing actually purchase one – consider it a multi-million-dollar opportunity in your professional back yard.

Nationally, that means trillions of dollars in opportunities gaping before the HUD Code manufactured home industry in the next five years.

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RC Williams.

Recent reports by RC Williams on the Daily Business News point to the reality that entry-level housing sales reported by the National Association of Home Builders – and from the National Association of Realtors – documents the fact that sales are actually slipping under the $250,000 price point.

The cause isn’t lack of demand.

Rather, there’s not enough existing home inventory – or new builder inventory – at those price levels. That can results in bidding wars from buyers. It also means there are markets where there may be more real estate agents than there are houses for sale under $250,000.

Proof Tapping the Demand Can Be Done

TomFathNewDurhamEstates-ManufacturedHousingIndustryManufacturedHomeCommunity-IndustryVoices-MHProNews-

Tom Fath.

The case study linked below with millennial and third generation industry professional, Tom Fath, documents how that ‘yawn of the consumer market’ towards manufactured housing can be turned into demand yielding more well-qualified credit and cash customers. Their operation is growing at triple-digits annually – to understand how they’re tapping the market, see the video interview, linked here.

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Barry Noffsinger, photo credit, MHProNews. See Doing Good Pays, at this link here

A panel of manufactured home industry lenders – compromised of Credit Human’s Barry Noffsinger, Triad Financial Services’ Don Sharp, and Cascade Financials’ Mike Jones – confirmed to industry professionals at the 2017 Tunica Manufactured Housing Show that there’s a huge market, and some in the industry are successfully tapping into it.

But much more is possible.

MH Industry Leaders Believe It Can Happen

M.Mark.WeissJDPresidentCEOMHARRManufacturedHousingAssociationforRegulatorReform-creditManufacturedHousingIndustryDailyBusinessNewsMHProNewsMHARR’s President and CEO, M. Mark Weiss, JD, has told MHProNews that hundreds of thousands of manufactured homes could be sold annually, in a responsible and sustainable way.

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Sam Landy, UMH President and CEO.

High-flying UMH Properties President and CEO, Sam Landy, JD, has likewise told the industry that hundreds of thousands of new manufactured home sales annually could become the industry’s new reality – if regulators in Washington, DC get out of the way – and allow the industry and private investors to do their jobs.

Sunshine Homes owner and president, John Bostick has pointed out that factory home building in Japan – “the land of engineers” – is commonplace there.

Bostick also said that an operation like his could successfully double production in about 60 days, while maintaining high quality and

JohnBostickSunshineHomesRedBayALmanufacturedHomeLivingNews-MHProNews-

John Bostick, president, Sunshine Homes, Red Bay, AL. For A Cup of Coffee with…John Bostick, click here.

customer satisfaction, hallmarks of his A+ BBB rated firm.

Bostick’s statements are noteworthy, because their firm is already growing at about double the pace of the industry at large. To learn more, click here.

HUD – Holdup or Partner?

DrCarsonInvitedTransformHUDManufacturedHomesEndorsingDonaldTrump-ManufacturedHousingIndustryDailyBusinessNewsMHProNews-Dr. Ben Carson,     President Donald Trump’s hand-picked Secretary for HUD, has signaled he sees the value of manufactured homes,” said manufactured home industry trade publisher, marketing and sales consultant, L. A. ‘Tony’ Kovach.

Dr. Carson has also said he sees the value of public-private partnerships. Vice President Mike Pence said the Trump Administration willenforce the law.” Kovach said, “All that sounds promising. Will the necessary changes be made at HUD to ‘drain the swamp’ of the manufactured housing program, so the industry and free markets can do its job?”

Doing so would create tens-to-hundreds of thousands of good jobs annually as new manufactured home shipments rise.  That in turn would reduce poverty, help inner cities, cut government deficits, while easing government subsidized housing challenges, Kovach and others say. To learn more, see link here.

HUD’s Swamp…

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Pam Danner, JD, HUD Code Manufactured Housing Program Administrator, credit, MHProNews

Kovach explained that Pam Danner, JD, isn’t the only fly-in-the-ointment there. According to what informed sources with years of ties to the HUD Code manufactured home program tell MHProNews, there are other internal road blocks at the federal housing agency.

For example, “Sources within tell us that HUD’s legal counsel has for years taken a position the polar opposite of what the Manufactured Housing Improvement Act of 2000 requires,” said Kovach.

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L. A. “Tony’ Kovach.

Meanwhile, NIMBY, BANANA, and zoning officials – who are either ignorant, or who deliberately ignore federal law – are contributing factors causing the affordable housing crisis.”

The acronym NIMBY means “Not In My Back Yard,” while BANANA means “Build Absolutely Nothing Anywhere Near Anything.”

The Daily Business News has tracked the various issues within and outside of manufactured housing for years, all of which are slowing the industry’s obvious ability to be the solution to a crisis that subsidized housing tax dollars alone can never hope to solve.

Real estate agents, conventional house builders, local or state public officials, investors, Dr. Carson and the Trump Administration – all of these are potential allies for manufactured housing,” Kovach said. “As more forward-looking MH Industry professionals take the needed steps, the potential to tap into trillions of dollars in opportunities in the next 5 years grows.”

We know the roadmap! How many more industry pros will commit to the necessary steps to program, chart and follow the course?”

ZillowGroupHousingTrendsReportManufacturedHomeLivingNewsLakelandListing

Using the Lakeland, FL Metro average of $106 per square foot, the $54.42 per sq ft for the home listed on Zillow on the collage above is a bargain. Image credits and data on the right, Zillow, and are shown under fair use guidelines. Image credit of the woman at the left, MHLivingNews/GraphicStock.

A Deep Dive Into Consumer Housing Desires

The first look at the Zillow Group’s ™ insightful report – including added insights from Noffsinger – along with a video of a couple who were previously skeptical of “trailers,” owned a conventional house – and who now proudly own a manufactured home – are all linked here. ##

(Image credits are as shown above.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-Related – Should HUD Secretary, Dr. Ben Carson, have the MH Program follow the law, and enforce preemption?

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

What’s the Truth About the Manufactured Housing Industry’s Potential?

April 3rd, 2017 Comments off

opportunities-threats-buttons-ManufacturedHousingIndustryIllustrationDailyBusinessNewsMHProNewsWhether or not truth is reported, or distorted, reality – the truth – is. Truth exists.

That is so on any issue you care to mention: sports, fashion, politics, religion, health, fitness, business — including manufactured, modular, and prefabricated housing.

Factory-home building – says John Bostick, Sunshine Homes president –  is widely accepted in Japan, but is resisted here.

Why?

Like our domestic manufactured home industry’s politics, the honest answer isn’t simple. Rather, “It’s Complicated.”

If the answer were simple, then the industry would be producing hundreds of thousands of homes per year, as leaders such as Bostick, or:

> Sam Landy, President and CEO of high flying UMH Properties, or

> M. Mark Weiss, President and CEO of the Manufactured Housing Association for Regulatory Reform,

> L. A. ‘Tony’ Kovach, multiple award-winning MH Industry trade publisher and consultant, are among a variety of industry professionals who have said so.

Among the topics we will dive into during the month of April are the issues that can be identified or suggested as causes for the modular and manufactured housing industry’s relatively low levels of sales, juxtaposed to its significantly higher potential.

MHARR and MHI

MHIPresidentCEORichardDickJennisonLeftMHARRPresidentCEOMMarkWeissRightMHProNews-

MHI President, CEO Richard A. ‘Dick’ Jennison, Left. MHARR President, CEO M. Mark Weiss, JD, right. Photo credit, MHProNews.com.

MHARR’s rival, the Manufactured Housing Institute’s (MHI) president and CEO, Richard ‘Dick’ Jennison, flipped from saying in 2014 that the industry should not expect a more robust recovery. Jennison said in a 2014 MHProNews interview that the industry would slowly rise towards 100,000 (+/-) annual shipments. After that interview, when he was pressed on that claim, he later publicly said less than a year later that the industry was capable of 500,000 shipments a year.

That’s a notable swing. But in both cases, Jennison qualified even that lofty half-million new homes a year potential by saying it would have to be achieved over time, at a relatively slow, steady pace.

Why should the pace be slow, instead of a more rapid recovery to the industry’s historic new home sales levels?  Given the affordable housing crisis, isn’t the industry’s potential even greater today?

Is Jennison correct? Are there technical or practical reasons for a slow growth in manufactured housing?  Such questions deserve a look.

Financing

Dick Ernst, consultant and financial services board member at MHI, says there is “no lack of capacity” among the industry’s current lenders to

DickErnstFINMARKUSAmhiFinancialServicesBoardMemberPostedManufacturedHousingIndustryMHProNews

Dick Ernst, FinMarkUSA, click image above for exclusive interview.

finance credit-worthy sales.

Credit Human’s (formerly CU Factory Built Housing) Barry Noffsinger has agreed on that point.

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

Noffsinger added an interesting twist, when he told 2017 Tunica Show seminar attendees that the Manufactured Housing Industry needed “to fish in the right pond. “

AverageFICOAvgHouseBuyerAvgManufacturedHomeBuyerManufacturedHousingCreditHumanLendingPostedMHProNews-552x228

Slide provided by Barry Noffsinger, Credit Human, to MHProNews.

His analogy was to convey the notion that if real estate agents and home builders could attract and sell qualified customers with an average FICO score around 728, then why is manufactured housing’s average credit score so much lower?

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Slide provided by Barry Noffsinger, Credit Human, to MHProNews.

Says Noffsinger, it’s the pond of less qualified customers the manufactured home industry is generally fishing in.  The charts and graphics on this page were produced by him, and the entire presentation is linked as a download, here.

WhatMillennialHomeBuyersWantCreditHumanCreditUnionManufacturedHousingIndustryDailyBusinessNewsMHProNews

Slide provided by Barry Noffsinger, Credit Human, to MHProNews.

LATonyKovach-Louisville-2015-mhpronews-com-275x156It is noteworthy that Noffsinger’s points dovetail with several of those that consultant, marketing, and sales trainer L. A. ‘Tony’ Kovach has practiced and taught for years.

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Tom Fath, New Durham Estates.

Results reported by Tom Fath, of New Durham Estates – in an upcoming, special video presentation by Fath – will be provided in the days ahead. In that video, Fath details the changes their operation made, and how it dramatically increased their sales and boosted the quality of the cash and good credit customers they profitably attracted.

Other industry lenders on the same finance panel made similar points to Noffsinger’s, pointing out that certain operations attract and sell higher credit scores or cash buyers.

NewManufacturedHousingAsPercentageOfNewExistingHomeSales2016CreditManufacturedHousingIndustryDailyBusinessNewsMHProNews500x

Labor Force

Several HUD Code manufactured home industry producers have told MHProNews that a challenge for them is getting and keeping good factory workers as one of the industry’s limiting factors.

GaryDobbs-LeftLindseyBostickCenterJohnBostickRight-SunshineHomes-posted-ManufacturedHousingIndustryProfessionalNewsMHProNews

Gary Dobbs, l, Lindsey Bostick, c, John Bostick, r, with Sunshine Homes at a ball game. For an exclusive with John Bostick, click here.

Yet, per figures supplied by Sunshine Homes sales manger Stan Posey, their firm is growing at twice the rate of the industry at large. Sunshine Homes is clearly keeping up with attracting the right pool of labor.

Bostick has told MHProNews that they could “easily” ramp up to double their current rate, in a period of about 60 days, without sacrificing quality. What does Sunshine Homes do that keeps quality and satisfaction of their wholesale and retail customers high, while allowing them to grow their labor force at a more rapid pace?  That too will be the subject of Inside MH videos coming in the days ahead.

The MH Industry Take-Away

That there is a rising need and demand for affordable housing is unquestionable. University, government, and non-profit surveys all point to that reality. That the industry could be growing more rapidly is proven by diverse operations like Sunshine Homes – which markets and sells only through independent retailers, communities and builder/developers, or operations like the Fath family’s, or others noted above.

The potential for more rapid and sustainable growth is apparent.  It’s a theme that consultant and publisher Kovach has hit for years.  See two of his graphics above and below as examples.

ExistingHomeSalesNewNAHBSaldes-ManufacturedHomeSales-statistics2016-SlideFromJune7TuesdaysWithTonyPowerPoint-MHProNews-com-575x430

The industry’s potential, as shown in another graphic above, is nothing less than enormous, given the proper lobbying, marketing and sales best practices.  Graphic by MHProNews.com.

What’s the Truth About the Manufactured Housing Industry’s Potential?

The facts and views from informed professionals presented here strongly suggest that the potential for rapid and sustainable growth is enormous.  There is no need to return to the failed ‘easy credit’ policies that caused Conseco and other manufactured home loan programs to collapse. The views of those above and others in the manufactured home industry underscore how the industry could climb rapidly and sustainably into several hundred thousand new home sales per year.

MHProNews, as pro-manufactured home industry trade publishers, will continue to spotlight the threats, heartaches, achievements and opportunities for growth in a periodic series of reports, found only here, your home for – Industry News, Tips and Views Pros Can Use. © ##

(Image credits are as shown above.)

(Note: Links added/updated on 4.7.2017.)

SoheylaKovachManufacturedHomeLivingNewsManufacturedHousingIndustryDailyBusinessNewsMHProNews-News and commentary submitted by Soheyla Kovach to the Daily Business News, on MHProNews.com.

Marty Lavin Lashes the Manufactured Housing Institute’s (MHI) Latest Initiative

February 21st, 2017 Comments off
MartyLavinLashesManufacturedHousingInstituteMHIDruckerWorldWideRoperReportDailyBusinessNewsMHProNews

The Manufactured Housing Institute (MHI) Logo is their property, and is used here under fair use guidelines. Lion tamer, GraphicStock, Lavin photo and collage credit, MHProNews.

Is anyone “…eating this dog food?”

emailed comment to MHProNews about Marty Lavin’s topic.

 

We welcome outside oversight and criticism as it allows us to objectively evaluate our actions.”

Sam Landy, explaining UMH Properties perspective on media, public critiques.

 

Let’s fight bad information with good information, and not have to resort to unAmerican activities like censorship of the media.”

Richard Nodel, principal of Nodel Parks.

 

 

marty-lavin-jd-manufacturedhomefinanceexpert-DailyBusinessNews-mhpronews

Marty Lavin, JD.

I like to say to myself “If you live long enough, you’ll see it all,” says Manufactured Housing Institute (MHI) award winner, Marty Lavin, JD.  “I have now lived long enough to see a second MHI effort to do “major consumer research” to “profile the housing needs and opportunities for the industry among various underserved homebuyers.” Who can forget the first effort?”

For those who have forgotten – or those too new to the manufactured housing industry who’ve never known – Lavin walks readers of his unsolicited op-ed through the first consumer research done by the Roper organization for MHI over a decade ago.

The respected, and award-winning, Lavin spent several decades in manufactured home retail, communities and lending. He is also an expert witness, which leads him to assignments that often requires a pro-consumer perspective. His critique comes on the heals of a broadside by Frank Rolfe, previously reported on the Daily Business News at this link here.

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Richard “Dick” Jennison. Credit: MHI.

In view of the history on this thing, it is logical to be skeptical of the entire process,” says a dubious Lavin, who expressed his doubts about Richard “Dick” Jennison’s announcement, potential and timetable.

Lavin was part of the last task force, saying: “I was very much involved in the Roper effort, which died an ignoble death, dealt a crushing blow to the industry (from which it hasn’t recovered), supposedly couldn’t be afforded financially then, and the industry condition seems even weaker now.”

MHI has offered no response to Lavin’s op-ed, even though there are facts they could bring to light that might be persuasive for some.

MHI did, however, include the following quote in their recent emailed message to members. “This initiative will help us develop a robust, fact-based analysis to drive strategy and serve as a basis for change,” wrote MHI’s communication director, for MHI President and CEO Richard “Dick” Jennison.

On the flip side of this MHI effort is Rolfe, who said: “The folks at MHI – the industry lobby group – are nice people, but what’s with the concept of silence is golden? Negative articles on the industry are met with ‘no comment.’ Positive news opportunities are met with ‘no comment.’ I’ve never seen anything like it.”

CreditsBattleshipMissouriWikiCommons-MHILogoMHI-FrankRolfeMHU-CollageCreditMHProNews

Images on MHProNews are routinely used under fair use guidlines, as is the case with the images in the collage above.

We always hear about the tornadoes, flooding, fires, residents getting evicted from their homes so a shopping center can be built, unreasonable rent increases, how manufactured homes depreciate in value, etc,” said MHI member and association defender, Darren Krolewski. “I think it’s less about the industry not responding appropriately, than it is us constantly having to play defense when we do.”

Interestingly, Krolewski’s points noted above presaged some of Lavin’s stated concerns about MHI’s plan.

To see Marty Lavin’s complete commentary and history on the current and prior MHI effort, see: DÉJÀ VU AGAIN? A New Manufactured Housing Institute (MHI) Initiative. ##

(Image credits are as shown above.)

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

UMH Properties Makes More Moves, Promotion Announced

December 22nd, 2016 Comments off
umh-properties-marcellus-shale-pennsylvania

Credit: UMH.

UMH Properties, Inc. (NYSE: UMH) has been busy in the week leading up to the Christmas holiday.

UMH announced on December 19th that it has closed on its $4.33 million acquisition of a community in Ohio. The all-age community contains 124 developed homesites situated on approximately 121 acres with and occupancy rate of approximately 82%.

The purchase represents the third acquisition in their five-community portfolio located in Ohio, which contains a total of 821 sites situated on approximately 337 acres.

The acquisition of the remaining two communities is expected to close before the end of the year or shortly thereafter.

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Sam Landy. Credit: Carisa Chappell.

UMH is pleased to continue to grow through acquisitions in areas where we believe there will be above average economic growth,” said Sam Landy, President and Chief Executive Officer.

We are beginning to see an increase in demand in the energy rich Marcellus and Utica shale regions. This community will fit nicely into our operating platform and should see occupancy and revenue growth in the near future. This community has substantial acreage for potential future expansion. UMH continues to seek acquisitions that fit our growth criteria.

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Credit: UMH Properties

Also on December 19th, UMH announced that Brett Taft, Vice President of Acquisitions and Integration, has been promoted to be Vice President and a corporate officer of UMH Properties.

BrettTaftUMHPropertiesAquisitionsManufacturedHousingIndustryDailyBusinessNewsMHProNews

Brett Taft. 

Brett Taft has been a major driving force in UMH’s growth in size and growth in income,” said Landy. “He is fully familiar with UMH’s business plan, our people and all of our properties. He has demonstrated an ability to put things in perspective, work with people, and achieve our goals.

For more about Sam Landy, see “A Cup of Coffee… interview with him, linked here.

According to Equities, UMH stock hit a new 52-week high on December 19th, hitting a peak of $14.59. Shares closed at $14.49, up from an opening price of $13.80, an increase of 5.23 percent.

The company now has a market cap of $415.42 million.

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UMH 1 year look. Credit: Bloomberg.

As Daily Business News readers already know, UMH is a real estate investment trust (REIT) that owns and operates 98 manufactured home communities (MHCs) in seven states east of the Mississippi, composed of 17,800 developed home sites.

UMH is also one of the various industry-connected stocks monitored each business day in the industry’s only daily market report, featured exclusively on the Daily Business News.

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

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

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

UMH Draws Publicity, Stock Price Spikes…Coincidence?

December 12th, 2016 Comments off
UMHDrawsPublicityStockPriceSpikesCoincidencecreditTheTennessean-postedtothedailybusinessnewsmhpronewsmhlivingnews

Sandy Hills residents Cesar Melchor and wife Maria Gomez. Credit: The Tennessean.

UMH Properties (NYSE: UMH) is seeing significant growth in Nashville, Tennessee and hopes to shed the “trailer park” perception around manufactured housing.

Could positive publicity also be fueling a rise in stock prices for the Freehold, New Jersey based company?

With the sharp rise in demand for housing, UMH wants to expand three Nashville area manufactured home communities to accommodate more than 550 new manufactured homes, according to the Tennessean.

On December 8th, the Metro Planning Commission recommended that the Metro Council approve UMH’s request for a rezoning to allow 56 more homes at its 130-home Trailmont community in Goodlettsville. Early next year, the commission is scheduled to take up additional requests.

Nashville is a wonderful market for us,” said Jeffrey V. Yorick, UMH’s vice president of engineering. “It’s the economy in Nashville — employers moving to the area, redevelopment is occurring all across the region.

UMHDrawsPublicityStockPriceSpikesCoincidencecreditTheTennessean2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Frankie Robinson. Credit: The Tennessean.

At Sandy Hills Mobile Home Park, resident Frankie Robinson has changed her tune about manufactured housing.

I was just thinking of trailer trash and it just wasn’t for me,” said Robinson. “I like having neighbors who visit each other and care for their homes at Shady Hills.

It’s a community of mobile homes [sic] and the people who live there. It’s become a neighborhood,” said Robinson.

Gail Newman, a 38 year resident at UMH’s Holiday Village, says she’s seen sharp improvements since UMH took over the property and has grown tired of the stigma.

The thing that makes me mad about the news is when they refer to a home in a mobile park [sic], they call it trailer,” said Newman.

A trailer is pulled by a hitch and travels. A mobile home [sic] is on a foundation and it’s secured. You don’t move it.

As industry professionals know, the irony is that Newman meant manufactured home, not mobile home. But media reporters, editors and others speaking about HUD Code manufactured homes often get that wrong too, unaware that there have been no mobile homes built in the U.S. for over 40 years.

manufacturedhomeNotMotorHomeNotTrailerNotMobileHome-NFPA-FARreportOnManufacturedHousingFires-posted-MHLiivingNews-com-

The NFPA’s report, found as a download at the story linked from the image above, quite correctly states that a manufactured home is not a motor home or a trailer, and although it is often called a “mobile home,” it is not that either.”

Growth Equals Growth? 

UMHDrawsPublicityStockPriceSpikesCoincidencecreditbloomberg-postedtothedailybusinessnewsmhpronewsmhlivingnews

UMH 1 year look. Credit: Bloomberg.

According to Equities, UMH stock hit a new 52-week high on December 9th, hitting a peak price of $13.71. Shares closed at $13.26 for the day. The company now has a market cap of $380.15 million.

The price of UMH stock has risen over 38 percent since May 6, and has outperformed the S&P500 by over 29 percent.

Sam Landy. Credit: Carisa Chappell.

The Daily Business News has covered UMH recently, including better than expected investor sentiment in the company, and their announcement of a new loan with Wells Fargo.

We are very pleased with our relationships with Wells Fargo Bank and Freddie Mac,” said UMH president and CEO Sam Landy.

We appreciate their continued support. Not only will this new loan save us approximately $350,000 annually on our interest expense, but it demonstrates the increasing value of our communities and the financial flexibility of our company, allowing us to further execute our long-term growth strategy.

For more about Sam Landy, check out our “A Cup of Coffee… segment with him linked here.

As Daily Business News readers already know, UMH is a real estate investment trust (REIT) that owns and operates 98 manufactured home communities (MHCs) in seven states east of the Mississippi, composed of 17,800 developed home sites. ##

(Editor’s note: The letters “SIC” used in brackets (example: [sic]) after a copied or quoted word that appears odd or erroneous, is used to show that the word is quoted exactly as it stands in the original, even though it is used in error.  Example: A HUD Code home called a mobile home [sic] that is placed in a mobile home park [sic] is properly called a manufactured home, and a manufactured home community, respectively.

SteveDukeLMHA-postedDailyBusinessNews-MHProNews

Steve Duke, LMHA.

The terminology matters, because the terminology defines the construction standard,” said LMHA’s Steve Duke, in a story, linked here.)

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for the Daily Business News, on MHProNews.

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

MHCs and Rent Control – Cure or Cause for Affordable Housing Crisis?

December 7th, 2016 Comments off

rentcontrolunionleadercaliforniamanufacturedhomecommunity-postedmanufacturedhousingindustrydailybusinessnewsmhpronewsThe housing and human services commission in Sunnyvale, California, has made a significant recommendation to the city council.

Per the San Jose Mercury News, on November 16th the commission unanimously voted to rank “rent stabilization” as the top issue to recommend that the city council study in January.

The recommendation comes as groups form to “protect” manufactured home community residents from high prices and projects that could replace the parks.

I believe it’s important and that it needs to be studied and understood to see what can the city can consider putting in place to protect these residents,” said Commissioner Diana Gilbert.

The issue was driven to the forefront in part by residents of the Plaza Del Rey Mobile Home Park.

The community was sold to the Carlyle Group last year, and residents claim that their rents were increased by 7.5 percent. In August several residents of Plaza Del Rey contacted residents of other manufactured home communities in the city and founded the Sunnyvale Mobile Home Alliance, which made rent stabilization for their communities a top priority.

Many group members attended the commission meeting and urged commissioners to recommend the issue be studied by the city council.

This is an important issue to a lot of people. We’re afraid we’ll be priced out,” said Ron Banks, a Plaza Del Rey resident.

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Location of Plaza Del Ray. Credit: Google.

The Mercury News reports that in June, Councilmembers Jim Davis and Tara Martin-Milius both suggested studying the rent control issue in 2017. City staff recommended deferring the issue, suggesting instead that the council prioritize affordable housing efforts. Housing and human service commissioners disagreed, ranking the issue number one of several issues presented to them.

If the city council does choose to study rent stabilization, phase one would involve research into existing stabilization programs and assessing the benefits and costs of such an ordinance in the city. It would be followed by community outreach and study sessions with the housing and human services commission.

What Does “Rent Control” Actually Mean? MH Industry Experts Speak

rentcontrolcwilliamdahlinjdhartkinglawindustryvoicesmanufacturedhomeindustrycommentarymhpronews-500x300The entire objective of rent control is to distort the market and have a government agency decide what rent is appropriate,” said C. William Dahlin, JD  of Hart | King Law in his comments regarding the situation in Sunnyvale.

Such governmental controls never lead to more housing or better housing. 

Dahlin also cites the impact on taxpayers.

Any unbiased research will disclose that cities across California, and elsewhere in the nation, have engaged in time consuming and expensive litigation because of price-fixing for rents in mobilehome parks,” said Dahlin.

The cities of Escondido, Hollister, San Marcos, Palm Springs, and multiple others have spent literally millions of dollars arising out of enactment of rent control ordinances. All of those funds come from the taxpayers in the city. Only a small minority of city residents reap the ‘benefits.’” Dahlin’s full commentary is here.

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Sam Landy, UMH President and CEO.

Sam Landy, Esq., President and CEO of UMH Properties, Inc., makes his company’s position very clear on the issue.

UMH would not buy a rent controlled community and believes all community owners should work with residents to avoid rent control,” said Landy.

The fact is if we raise our rents too high we will have no sales and no occupancy. No reasonable landlord would do such a thing. Our rents have to make economic sense or we have no business. Therefore, in the long term, there is never a need for rent control.

Landy’s points dovetail with those of Dahlin.  You can read Sam Landy’s full commentary here.

I would like to think there are alternatives that don’t rely on third-party boards and local ordinances,” said Paul Bradley, President of ROC USA. “I approach

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Paul Bradley. Credit: Fosters.

things with a win/win mindset, and from what I’ve seen, courts and boards seem to satisfy neither party in most cases.  A fundamentally different value proposition and mindset is required to stem the tide of rent control.” The fully commentary from Bradley can be found here.

The Daily Business News will continue to monitor the Sunnyvale situation as it develops. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

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