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Posts Tagged ‘UMH Properties’

Manufactured Home Community Case Study, UMH Properties, Lessons for Independent Community Owners, Investors

May 10th, 2019 Comments off

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For some time, but more recently in the report linked here, the Daily Business News on MHProNews has a made the point that the purported market rigging by Berkshire Hathaway brands, as referenced in reports linked here, here, and here has harmed more than just independent manufactured home ‘street retailers.’  It has arguably harmed independently owned communities too.  One could go further, and say that a similar case can be made for the harm done to investors, see the report, linked here and here.

 

These in turn would logically harm the interests of manufactured home producers.  Who says? MHI backer, Amy Bliss, Executive Director of the Wisconsin Housing Alliance (WHA), among others.  But frankly, it is logical and obvious.

 

AmyBlissWHAQuotesDownturnManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

But let’s focus more for this report on manufactured home communities.  Because whether he intended to do so, or not, what the George F. Allen fact-check – linked below – unmasked is the purported harm to independently owned communities, and how Allen’s behavior relates to addressing that harm to independently owned communities, or not.

Note that harm also logically impacts residents in these communities.

But back to the owners of manufactured home community owners. What might the concerns of market rigging cost the owner of a manufactured home community?  Depending on the size of the property or other factors that impact value, the total harm could be in the hundreds of thousands of dollars, or even into the millions of dollars.  Take that times some 44,000 communities, and the figures soar into the tens of billions.

Given who would arguably be liable, it’s the type of numbers that might even make the Oracle of Omaha and his investors, wince.

Is there evidence for that economic harm caused to community owners? Yes, and it comes from a publicly traded company. That firm, in the case study below, is UMH Properties.

 

 

The data provided for this case study is taken from UMH Properties (UMH), unless otherwise noted.  This information is an independent analysis, not commissioned by UMH.

 

A Case Study – Countryside Village

Located in Columbia, TN, 46 miles south of Nashville, TN.

Number of Sites: 349
Date of Acquisition: June 29, 2011
Purchase Price: $7,300,000
Purchase Price per Site: $21,000
Capitalization Subsequent to Acquisition (including $8.6m in rental homes): $9,196,000
Total Capital Investment ($47,300 per site): $16,496,000

At Acquisition                                              | Today * |          Increase

Occupancy Percent: 55%                             97%                  42%
Number of Rentals:  79                                222                  143
Site Rent: $302                                             $372                  23.2%
Rental and Related Income* $953,000 | $2,315,000   | 142.9%
Net Operating Income* $497,000          | $1,477,000   | 197.2%

Value per site ** N/A                                |  $70,500         | 49%***
Value of Community ** N/A                    | $24,616,700    | 49%***

 

*At acquisition – 2011 annualized;
Today – Year Ended December 31, 2018.
**Value calculated based on a 6% Cap Rate.
***Increase from total capital investment.

 

 

Rephrased, in this example, using UMH data as show, the seller of that property – adjusted for inflation and other factors – did not realize a gain of some $49,500 per site. For that community of 349 sites, that’s $17,275,500.

Ouch.

There are lots of ways to slice and dice this data. The UMH screen capture, from which the above was mined, is below.

 

UMHPropertiesCaseStudyCountrysideVillageManufacturedHomeCommunityDailyBusinessNewsMHProNews

 

How many billions and billions of dollars in lost property value might Berkshire Hathaway, their allies, and surrogates potentially be liable for if a suit like this was taken to court and succeeded?

Then, apply that same query to retailers, producers, suppliers, lenders, and other firms impacted.

Finally, ponder the harm done to the interests of some 22 million owners of mobile and manufactured homes. That too could total into the tens of billions of dollars. See the related reports, further below.

That’s this Friday morning edition from the #1 most-read “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Related Reports:

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Declining Manufactured Home Shipments More Serious Than Retailers, Communities Being Told

 

Gannett Media Exposés, MH Community Owner Moves Sparks Outrage – IEDs of Manufactured Housing

Manufactured Housing – White Hats, Black Hats, Investing, Consumers, MH Independents

 

 

 

 

 

 

 

Financing – Dramatic Shift – Manufactured Housing Institute (MHI) Insider News Tips

October 13th, 2018 Comments off

 

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What follows dramatically changed the manufactured home industry.

 

It started with the SAFE Act. Two years later, it was Dodd-Frank. While Dodd-Frank was being passed into law, came first one, then another letter from 21st Mortgage Corp that was sent to the independents of manufactured housing.

In the wake of that trifecta came
• a steady wave of independent retail closures.
• Thousands of manufactured home communities had been losing occupancy for approaching a decade. Losing occupancy in communities resulted in relatively few outright failures, but far more that sold out to larger portfolio operations.
• All of the above resulted in a number of independent producers of HUD Code manufactured homes.
• U.S. Bank essentially shuttered a profitable manufactured home lending operation, citing low volume and regulatory risk.
• Communities that made loans on manufactured homes to buyers – like UMH Properties – likewise stopped making those deals, due to regularly risk.

All of the above created dramatic change for the industry. They are points few who understand the facts would deny. So, what are the insider insights?

Many.

This column will focus on one aspect today that has literally impacted the entire industry, without exception. Other reports from inside MHI, and later from inside Clayton Homes, and other organizations impacting MHVille will follow in the days ahead.

 

The View of Insiders at MHI

Recent reports on MHProNews have spurred a surge in news tips from manufactured home industry readers and insiders. These aren’t the fluff-talk that others may publish, but rather core issues that make or cost companies opportunities and money.

Among those numerous tips and comments?

Those that focused on inside information from and about the Manufactured Housing Institute (MHI), and how they’ve handled the industry’s post-production and production agendas.

It should be noted, prior to proceeding to this manufactured home regulatory and financing focused report, that there have been some ‘fake news’ tips coming in too. MHProNews seeks evidence and corroboration on claims, not just a mere allegation.

Evidence and corroboration are important for our work. Why? Because some hate an operation, agency, and/or person so badly that they will make up something that sounds salacious, plausible or ‘juicy.’ But if it turns out to be untrue, has no corroboration, etc., then we at MHProNews don’t run it.

It should also be noted that those who provide news tips may hold different policy, political, or other views than MHProNews’ publishers.

For example, among the tips are voices that are pro-MHI, or pro-Clayton, etc. So why do pro-Clayton, 21st, MHI, etc. voices pick up a phone, or send messages, documents, and other forms of news tips, and insights?

Among the reasons we have been told by such sources is that they may like some person or industry organization, but nevertheless they too have concerns with specific things said, or done. Others raise the flag on some failure to act in a timely or proper fashion about an important issue.

Nathan Smith is among those who has said that the industry must admit its past failures. Richard ‘Dick’ Jennison – MHI’s President and CEO, has also generically admitted past failures. Both of those were captured on videos by MHProNews.

It’s facts, evidence, reason, and related we pursue at MHProNews. Insights and information are then shared with manufactured housing readers and investors through the lens of how it impacts the industry.

With that tee-up, let’s examine how a financing related issue dramatically changed the manufactured home industry, as told to MHProNews from voices in or associated with the Arlington, VA based Manufactured Housing Institute (MHI).

 

Inside MHI and Financing, and MH Consumers

The industry’s retailers and communities didn’t have to hear from Harvard’s Eric Belsky to know that credit – access to capital and financing – are essential to manufactured housing.

The industry’s consumer groups have also protested what then CFED’s Doug Ryan – who today is Prosperity Now’s point-man for manufactured housing issues – called Clayton’s monopoly on manufactured home lending. Ryan said that in an article published by American Banker.

What MHI insiders have stressed to the Daily Business News on MHProNews is that the consumer groups offered during the Obama Administration to compromise with MHI.

They [MHI] are now trying to sell S 2155 as an accomplishment, as a win by MHI,’ said one source. “But MHI specifically rejected that same deal with consumer groups about 4 years ago.

 

“Stomping” and MHI’s Dick Jennison

A caller told our publisher that when L.A. ‘Tony’ Kovach sends a message to MHI’s team members, asking for a comment, or sharing some information, those messages are supposed to be forwarded by staff to MHI’s President, Richard ‘Dick’ Jennison.

He will come stomping out of his office” in anger said the caller. Another source at MHI said that “Dick [Jennison] gets red-faced when he gets upset” – including, but not limited to, those messages.

MHI will work with alternative bloggers and trade media competitors, in an effort to try to counter news coverage by MHProNews, or some report by the Manufactured Housing Association for Regulatory Reform, explained a person privy to such details.

Without specifically using those words, these sources were saying that MHI strives to ‘control the narrative’ as much as they can.

MHI team members have traditionally been a mix of both Democrats and Republicans, explained one. They don’t necessarily do that formally, but that has been the modus operandi (MO – method of operation) for years, explained that source, who believed it was a good association practice.

MHI felt the heat rising from the grass roots of the industry about financing and Dodd-Frank, explained one. They felt they had to “do something” to get what looked like a win on the heavy regulations coming out of the Consumer Financial Protection Bureau (CFPB).

But they could have had that same win with the MLO rule years ago, simply by making that agreement with the consumer groups. It would have required no legislation in Congress, because it would have been done via the CFPB. That would have “saved millions of lobbying [and overhead] dollars in the process.

For anyone who’s business was negatively impacted by those years of regulatory overreach during the Obama era, they are potent admissions that imply what were avoidable burdens and costs for thousands of industry companies.

 

Attempted Choke Hold on Information, “Scandal…”

Dick, wants to hold things very close to the vest.” There are circles within MHI staff, and circles within MHI members, per several insider sources.

The division boards and staff may make recommendations, but it’s the MHI Executive Committee that has the power.

The Executive Committee tasked Dick with carefully managing the budget. He’s done that to their satisfaction,” said a known voice.

Meanwhile, an MHI VP has told MHProNews that Jennison “didn’t really understand, or much care about, the industry itself.” Additional details on that will be part of an upcoming related report.

Dick’s job [at MHI] isn’t lobbying per se. It’s to manage the people, and [to] manage the budget.”

Reacting to those MHI insider comments, one industry professional and longtime association member said that it’s not “the millions wasted on lobbying Dodd-Frank” that bothers himas much as the billions in lost business or [business] valuations caused by MHI’s failure to compromise with consumer groups on Dodd-Frank. That’s the scandal.”

Some of the professionals they essentially put out of business were longtime industry friends of mine,” said a retailer. “I pray that Republicans hold the Congress, and that in the next two years the Feds expand their investigation into the market manipulation of manufactured housing that’s taken place. Buffett’s control of the industry through crony Democratic capitalism is an issue that could unite the left and the right. It’s cost taxpayers, homeowners, housing seekers, and small businesses like myself tremendously.”

An MHI member producer said that wiping out thousands of the independents in retail “hobbled every non-vertical producer” in the industry.

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Another interesting observation was from one caller, who described them-self as not being crazy about MHARR because of style. But that person admitted that what they, MHProNews and others have often forced the much larger Manufactured Housing Institute (MHI) to pivot or change course.

The insights above confirmed prior sources, some of those are linked in the ‘related reports’ that are found further below.

The bottom line on this issue is that capital and restrictions on financing that dramatically changed the industry could have in many cases been avoided and/or mitigated. As one put it, had MHI settled the high-cost lending and MLO rule issues 4 years ago, they could have been focused on exclusionary zoning or other larger issues instead.

This is part one of a planned multiple part series that will include tips and insights from industry insiders.

Motivations?

One of those noted above said that they wanted to get some things off their chest, and another that said they wanted more transparency, so that the industry can deal with the real issues, heal, and advance to its true potential.  A third said that no other resource is as read as MHProNews, and this gave them the anonymity they needed to keep their job, and still share useful insights.  Other motivations were mentioned by professionals involved in the above, but stating them could reveal the source.

More from inside MHI, Berkshire owned brands, and other organizations connected to the manufactured housing industry in the days ahead. “We Provide, You Decide.” (C) ## (News, analysis, and commentary.)

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Related Reports:

MHI Lender Shakes Up DTS and MLO Rule Discussions

Danny Glover, Presidents Barack Obama & Donald Trump, Promises Kept, and Affordable Manufactured Housing

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

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

 

 

 

 

 

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.)

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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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UMH CEO Sam Landy Touts and Tempers Manufactured Home Operation’s Expectations

April 10th, 2018 Comments off

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UMH Properties (UMH:NYSE) has both touted and tempered the results and expectations that investors may have with respect to one of the largest players in the manufactured home community (MHC) sector.

 

To provide a balanced view of the latest reports on the manufactured home (MH) community REIT (Real Estate Investment Trust) – UMH Properties – to MH Industry Professionals and investors, one must take a step back and establish some context.

The Daily Business News is the only MH Industry trade media that tracks their and other stocks connected to manufactured homes.  We’ve done so for years. The closing numbers on the UMH stock last night are linked here.


 

 So MHProNews and MHLivingNews.com has directly engaged with UMH Properties for years, as well as tracked reports about them by others.  MHProNews has interviewed UMH President Sam Landy a number of times.

 

The videos posted are both from 2017, but are revealing and relevant precisely as background.  They reflect their leadership’s thinking and company facts in brief.

MHProNews will follow up in the near term with a deeper data dive into UMH, and what that tells us about the trends in manufactured housing in general, as well as in the community sector.

Related reports to the state of the manufactured home industry after the end of the first quarter of 2018 are linked below. ## (News, analysis, and commentary.)  (Third party images are provided under fair use guidelines.)

Related Reports:

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

Intelligence Report – MHI Producer Spotlights “the Plan” for MHCs, Community REITs

Sun Communities Annual Data and Manufactured Housing Industry Investor Presentation Highlights

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

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Intelligence Report – MHI Producer Spotlights “the Plan” for MHCs, Community REITs

March 29th, 2018 Comments off

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A senior management team member for a HUD Code manufactured housing (MH) production company told the Daily Business News about the emerging plan for MH Communities, according to a REIT moving towards capacity.

 

As MHProNews has reported, a third or more of new manufactured home shipments are going into land-lease communities. 

While new homes are being purchased by communities of all sizes, large numbers are being ordered by “portfolio operations,” including Real Estate Investment Trusts (REITs), such as Sun Communities (SUI), Equity LifeStyle Properties (ELS), and UMH Properties (UMH).

 

As an Manufactured Housing Institute (MHI) member company president told the Daily Business News, if new home shipments going into land lease community are factored out, then new home production is essentially flat. In some states, shipments of new homes are still declining since the official bottom for the industry was hit in 2009. 

 

ManufacturedHomeShipmentTrendsPercentageNewHomeStartsSkylineChampionPowerPointMastheadBlogDailyBusinessNewsMHProNews

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Given the comparison in price and value, it is difficult to for many third parties and industry professionals to imagine how manufactured housing (MH) can be hovering at around 9 percent of single family housing starts.  That’s far below MH’s historic norms (see shipment chart above). Some point to the affordable housing crisis, the quality of today’s manufactured homes, and ask a question similar to what the Urban Institute (UI) did in January, even though they may come to a different conclusion than UI did.

 

While Manufactured Housing Overall Rises, Some Slip Sliding Away

Another MHI member producer’s president and vice president both said that based upon current trends, they expect a three to five year window, before MH Communities fill their vacancies of existing home sites. 

Against that backdrop, a new MHI production source tells MHProNews about his insights learned from the plans that Sun Communities (SUI) and another major portfolio operation.

Sun, a titan in the MH Communities sector, are planning beyond their current vacancies. They, per our source, are looking beyond vacant lots, and planning on replacing older homes on occupied but dated home sites. Some of those sites are odds sizes by today’s standards, he explained, which may require special models of homes designed to fit certain lots.

If that replacement of aging inventory becomes a trend, as rental units did after Dodd-Frank, such a replacement process may continue the orders coming from giant land lease operations.

That means the production cliff some are concerned about could be extended beyond the thousands of now vacant home sites in MHCs.

That may sound like good news for HUD Code home producers.  But those replacement plans are not likely to be as busy as the current infill in the dwindling numbers of vacancies in MHCs, coming primarily from homes being offered as rental units. 

The fact that so many homes are being sold as rentals instead of sales to home buyers as was the historic norm is in itself a troubling trend, per producers. 

 

The Take Aways

All of the above implies a coming new home shipment cliff in manufactured housing, unless some new trend or development takes place. 

While the industry’s members are in several cases understandably celebrating modestly rising new home shipment levels, the underlying realities are not as rosy.

2017-12-ehs-ExistingHomeSaleshousingNationalAssocRealtorsNAR-snapshot-infographic-01-24-2018DailyBuisnessNewsMHProNews600

When 92,900 new HUD Code manufactured homes are divided by the 5.57 million units of new existing housing sales, you get 0.01667863554. That means that only new manufactured home sales is equal to only 1.67 percent of the sale of existing conventional homes. With 8.3 million new housing units needed in the U.S., what explains the relatively low levels of manufactured home sales?

Given the nature of their business, MH production companies have to be aware of such trends.

As another HUD Code MH producer – an MHI member and careful reader of MHProNews – has said, MHI’s official policies, plans and positions “have made no sense” for “several years.”  

All of the reports noted herein are from MHI only member companies, not from members of the Manufactured Housing Association for Regulatory Reform (MHARR).

Given the affordable housing crisis, and MHI’s indirect admission of their failed industry promotion and marketing plans, industry professionals and public officials alike ought to take notice.

Some producers told MHProNews that they are “open” to being acquired by larger companies.

So the data like the above ought to be of concern to independents, including MH retailers and other industry operations who want to remain independent.

Among independent factory home builders, even those planning to sell at some foreseeable point, should realize that Warren Buffett and another larger player are both known for trying to buy “cheap” rather than at full value.  If historic normal shipment levels existed today, it would translate as more value for those firms who are thinking about selling.

The latest report by the Manufactured Housing Association for Regulatory Reform (MHARR) lays out step-by-step examples of how MHI was on the wrong side of issues that both associations were engaged with. In case after case, MHI had to pivot toward MHARR’s original and steady stance. How can that be so consistently true?

In all of this, per sources, MHI is being revealed as de facto working mainly for the interests of major consolidators, while posturing “activities” that in fact has proven time and again to largely be fruitless. A look at the dues structure of MHI, and who three of the four MHI Executive Committee seats are held by paints a picture.

The Daily Business News review of the MHARR report is linked here. The full length version without commentary of MHARR’s report is linked here. “We Provide, You Decide.” ©. (News, analysis, and commentary.)

Related Reports:

“Razzle Dazzle,” Says Former Manufactured Housing Institute Member

“Winners and Losers,” L2 Founder, Prof Scott Galloway on Monopolies

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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

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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. “

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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.

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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.

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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.

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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.

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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.

UMH Properties Celebrates Major Milestones, Recent Growth and Announcements

January 12th, 2017 Comments off
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Credit: MHProNews.

A big day is coming up for UMH Properties, Inc. (UMH: NYSE).

The company tells the Daily Business News that it will celebrate its 50th anniversary at the New York Stock Exchange (NYSE) on January 19th.

The Company is honored to celebrate its 50th Anniversary at the NYSE. We will be having our quarterly Board Meeting there, as well as a dinner reception attended by many of UMH’s close partners whose help has been instrumental in our long-term success,” said Eugene W. Landy, Chairman of the Board of UMH.

UMH is one of the oldest publicly-traded REITs in the world, and as the Founder of our Company, I could not be prouder of our many achievements. UMH’s total-return performance ranked third of all 180 REITs in 2016. The Company is very well positioned for continued outperformance in the years ahead.

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Eugene Landy. Credit: Google. For an in-depth video interview with Eugene Landy, click here.

UMH has seen its stock price has rise recently on positive growth news, including expansion plans in three manufactured home communities in Nashville, Tennessee to accommodate more than 550 new homes. That story is linked here.

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.

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Credit, the Tennessean.

UMH CEO Sam Landy also commented recently regarding NPR’s latest broadcast and published article dubbed “With Few Legal Protections, Nashville Mobile Home Park Residents At Risk Of Losing It All,” (see their article, linked here).

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Sam Landy. Credit: MHProNews. For a Cup of Coffee with Sam Landy, click here.

In it, NPR paints a radically different picture than what the USA Today network affiliate, The Tennessean did less than a month ago regarding the UMH expansion (see that article, linked here). “UMH has improved the lives of well over 1,000 manufactured home residents in the Nashville area. We have significantly upgraded communities,” said Landy.

Our residents overwhelmingly support the companies actions.”

Sam Landy also said his firm is preparing a detailed response to the NPR article about their Nashville locations.

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. ##

(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.

UMH Properties Makes More Moves, Promotion Announced

December 22nd, 2016 Comments off
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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.

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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.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for 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.

Clayton, Landy on Incoming Trump Administration Impact on Manufactured Housing; Trump Video

November 22nd, 2016 Comments off

jimclaytontntech-samlandyreit-postedmanufacturedhousingindustrydailybusinessnewsmhpronewsDodd-Frank was never meant to and never should have been applied to manufactured homes in manufactured home communities,” says Sam Landy, CEO of UMH Properties.  “There is no mortgage and our residents are fully protected without Dodd-Frank.”

Landy, an attorney who is leading the rapid growth of his firm, shared more detailed comments on Industry Voices about his perspective on the potential impact of this election on manufactured housing, communities and lending, linked here.

Jim Clayton, the legendary and award-winning founder of Clayton Homes and Clayton Bank, dubbed the president-elect as “Donald the Disruptor.” Among his specific points in analyzing the Trump impact on manufactured housing?

MH Community and Manufacturing Operators – along with others in business – get to expense expansion cost under the president-elect’s proposals. WOW! What a nice surprise!”

Clayton is one of the manufactured housing industry’s first billionaires. He shared several specific thoughts on the effect on manufactured home sales, lending and communities once the Trump administration takes office with MHProNews, at the link here.

More post-election comments from manufactured housing professionals are expected, which follow on the heels of a number quoted in Some Protest, Others Celebrate, linked here.

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To the point quoted above from Landy, the Dodd-Frank legislation was named after Democrats Chris Dodd and Barney Frank.  A letter from Frank, obtained by MHLivingNews, that has been referenced by others to make a point similar to Landy’s, is linked here.

There is legislation planned to undo Dodd-Frank by the GOP and Trump administration, for more details, see RC William’s report at this link here.

To date, most of the views from among manufactured housing professionals regarding the election of Donald Trump as the 45th President of the United States has ranged from mildly pleased to outright thrilled. The minority of views shared to date favored the candidacy of Secretary Hillary Clinton.

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Close on 11.21.2016, for more details – including the Manufactured Housing Composite Index – click here or the image above.

Among the early indictors of the impact of the 2016 election on business is that the markets have hit record highs in what is being called by some, The Trump Effect; see the latest manufactured housing industry connected market report, linked here.

The Trump Transition team provided the video above from President-elect Donald J. Trump, which they state is an update on planning and next steps once he takes office. ##

(Image credits are as shown above.)

matthew-silver-daily-business-news-mhpronews-comSubmitted by Matthew Silver to the Daily Business News, on MHProNews.com.