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MarketWatch Reports on Manufactured Housing, 2018-2019

April 12th, 2019 Comments off

 

MarketWatchLogoReportsManufacturedHousing2018-2019-DailyBusinessNewsMHProNews600

It’s Flashback Friday. Reviewing two reports by MarketWatch are timely, and ought to make followers of the popular personal finance guru Dave Ramsey, or HBO’s Last Week Tonight with John Oliver sit up and think again.

 

These are equally timely because of the arguably injustice that is taking place in Bryan, TX of cities and towns across the country, where manufactured homes are increasingly being zoned out. The vote in Bryan is subject to a special petition that, if those petitions are certified as accurate, could void Tuesday’s council vote, so this ought to be a timely topic for our industry’s professionals.

Especially independents, and those who are keen on industry growth should sit up and take notice. Because as the latest Masthead reminds readers, for want of a nail, the war was lost.

 

 

For Want of a Nail – Manufactured Housing

 

 

Teeing Up the MarketWatch Reports 2018-2019

To set the table, these articles are provided under fair use guidelines. These are not a fact checks per se, but we will clarify the terminology with some graphics and illustrations between them, while providing commentary and analysis.

Let’s note that the featured photo below from the first MarketWatch report included at least one home that wasn’t a manufactured home. It is a mobile home, as the windows on that unit are a dead giveaway for a feature that is forbidden by the federally preemptive HUD Code for manufactured homes.

It is worth mentioning that what some MarketWatch staffer selected for use to illustrate was hardly the best photo to use showcase the appeal of modern manufactured homes. Those are either older manufactured homes, and/or mobile homes.

The Daily Business News on MHProNews will then note that anecdotally that mobile homes can and have appreciated too. The factors for appreciation are roughly the same for conventional housing as for mobile homes or manufactured housing. For example,

  • availability of financing is a key factor,
  • as too are location,
  • condition,
  • area market conditions,
  • along with other aspects of the laws of supply and demand.

With that brief introduction and noting that MHProNews is not editing either report for typos, facts, undisclosed conflicts of interest, or terminology errors, let the reader dive into MarketWatch’s two timely flashback articles on the wisdom of manufactured homes, and appreciation.  Here’s the link to the first article.

 

MobileHomeValuesMightRiseAsFastRegularHomesWhyThatMattersMarketWatchDailyBusinessNewsMHproNews

Recent data challenges the idea that manufactured housing isn’t a strong investment

Many have long held the assumption that mobile homes don’t increase in value — or, at the very least, they rise in value at a much slower rate than traditional homes.

But recent data suggests the opposite is true — and that could have major implications in the push for increased affordable housing nationwide.

A new report from the Urban Institute, a Washington, D.C.–based think tank, examined data released in August by the Federal Housing Finance Agency. The home price index for manufactured homes (also known as mobile homes) featured an average annual growth rate of 3.4%, versus 3.8% for traditional, site-built homes.

In recent years, home prices have actually risen at a faster clip for manufactured, or mobile, homes than they have for traditional properties.

But that trend is not always easy to see, because manufactured housing is more popular in parts of the country where the overall recovery from the housing crisis has been less robust. For instance, California represents nearly 18% of the nation’s overall housing market, but it comprises just 4% of the manufactured housing market based on the number of units shipped.

Because manufactured homes generally aren’t highly concentrated in housing markets that have notably recovered from the crisis, it creates the impression that these homes’ values don’t appreciate at the same rate as traditional homes. In reality, this is more a reflection of where the homes are located than the types of homes.

Comparatively, Alabama, Florida, Louisiana, North Carolina and Texas represent 41% of the manufactured-housing market, but have experienced price appreciation below the national level.

The report only looked at mobile homes that were financed with loans guaranteed by Fannie Mae and Freddie Mac. However, most homeowners who finance the purchase of a manufactured home don’t get a traditional mortgage because they only own the structure and not the land beneath it.

Instead, they typically get a chattel loan — a personal loan that is more similar to an auto loan than it is a mortgage. Chattel loans are more expensive than mortgages and typically come with higher interest rates.

It is not clear whether the report’s findings apply to homes purchased with chattel loans as well. Nevertheless, it’s a strong indication that mobile homes may be a worthwhile investment. “Although there are limits to what the data can tell us, the index suggests a need to reevaluate the presumption that manufactured homes do not appreciate at the same rate as site-built homes,” the Urban Institute researchers wrote.

There are many downsides to manufactured homes. If a mobile-home owner doesn’t own the land they will obviously have to rent it — and those costs can rise over time. What’s more, these homes aren’t actually mobile in most cases, despite the common moniker. As a result, if land rents get too expensive or if the land’s owner decides to sell, homeowners might be forced to move and sell their home, regardless of what price they can get for their home.

The homes also are more prone to damage in natural disasters like hurricanes and tornadoes. Because many owners buy their mobile homes in cash, insurers often only offer “actual cash value” coverage for the properties rather than covering the replacement value. This lowers the amount the insurer pays out, which left many people in Florida facing serious losses after Hurricane Irma tore through the state last year and destroyed or damaged many manufactured homes.

##

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

You must meet people where they are. Terminology must be taught and caught. Make a habit of using the correct terminology. 

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticaGayCororationPhotoSmallPercentageDamagedDuringHUrricanesMHProNews

For MarketWatch to note that mobile or manufactured homes were damaged, without noting that so were conventional housing units, is an oversight. The above clarifies that miss.

As a brief added commentary to both MarketWatch articles, are the terminology illustrations, plus other quotes and factoids provided above and below by MHProNews. The terminology is not interchangeable. 

 

TerminologyMattersBecausetheTerminologyDescribestheConstructionStandardsHomeBuiltToSteveDukeLMHAaMHLivingNewsMHProNewsBiggerPocketsSunshineHomesRedBayAL

The terminology matters because
the terminology determines the
construction standards a home was
built to,” Steve Duke, LMHA.

 The link to the next report from MarketWatch is here.

3OutsideTheboxAtlernativeForHomeBuyersinToughHousingMarketDailyBusinessNewsMHProNews

As the housing crunch continues, would-be buyers may want to consider these unorthodox options

Here’s a bold forecast for the housing market in 2019: conditions will continue to be strained as affordable inventory gets snatched up quickly, leaving the least desirable and most pricey properties to stagnate.

Given how steep the housing shortfall has been for so many years – Freddie Mac economists estimated we’re nearly 5 million units short – that’s kind of a no-brainer. The bigger question is what we do about it.

In the spirit of “new year, new approach,” MarketWatch has collected several suggested solutions to the housing crunch. These are unconventional ideas, but ones that industry participants have been exploring for years. They may provide fodder for house hunters willing to think outside the box – especially if the idea of another wasted Sunday afternoon of open houses doesn’t appeal.

 

Factory-built homes

Jenny Cochrane and her husband had spent years taking care of her mother, who was struggling with breast cancer and who owned a manufactured home in Yulee, Florida.

The couple ran into some financial trouble in the downturn – “the economy went splat and so did we,” Cochrane said in an interview. But she still had enough saved in her 401(k) to consider buying a traditional house. Eventually, though, the couple decided to assume her mother’s mortgage and take over her house, mostly because they liked the space that the much-cheaper factory-built home afforded them.

ManufacturedHomeMarketWatchLogoJennyCocchranCarringtonMOrtgageCustomerFlorida

“It’s a double-wide manufactured home on a solid foundation, it’s not going anywhere,” Cochrane said. The couple rode out the last hurricane with barely a scratch to show for it. They have a front porch, back porch, 3 bedrooms, and laundry room on about an acre of land.

Manufactured homes are 35-47% cheaper than traditional “site-built” properties, according to an analysis from the Urban Institute. Factory-built homes accounted for 16-25% of all new single-family houses between 1977 and 1995, but just 10% in 2017, even as the quality of construction has become much better over the past few years, the Urban researchers noted.

Restrictive zoning is partially to blame for the low take-up of manufactured homes. About one-third of them are currently in single-purpose communities, and municipalities often ban the development of such areas.

But a more significant challenge is that lenders have often struggled to make mortgages on manufactured homes. That’s in part because it can be challenging to find comparable properties against which to appraise them, and in part because most owners don’t own the land on which the houses sit. (Another wrinkle, as the Urban Institute notes, is that most mortgages for manufactured homes tend to be much smaller, and small-dollar loans are always less desirable for lenders, who have fixed overhead costs.)

Freddie Mac, the giant government-sponsored enterprise that buys mortgages from banks and other lenders, has introduced a new program to allow conventional-style financing for factory-built homes, in part by allowing appraisers to use site-built properties as comparables. But Freddie’s financing, and that offered by many lenders, including Cochrane’s mortgage, is only available for homes where the house is tied to the property.

Still, that small step may be enough to start to encourage more supply and lending into the housing market, the Urban analysts wrote.

 

Communal living

Imagine a scheme that allowed a third-party bureaucracy to own property and homeowners to lease those ownership rights from it. (If that sounds somewhat Bolshevik, don’t forget that most Manhattan properties are cooperatives, and utilize roughly the same structure, with little of the socialism.)

Community land trusts use a similar structure to help foster affordable housing and economic development. They’ve been around for a few decades, and have a stellar track record for building community and enabling sustainable homeownership.

“The basic concept is that you want to take housing and land off the speculative market,” said Michael Swack, who helped develop the concept, and now directs the Center for Impact Finance at the University of New Hampshire. The “speculative” real estate market Swack describes is familiar: communities can be affordable for many families, until they’re “discovered” by more affluent people outside the neighborhood, who move in and, over time, make it less affordable for everyone and off-limits for some.

But community land trusts, which despite their name are usually not true trusts, but nonprofit entities, own and retain ownership of land, and offer long-term leases to homeowners. One of the oldest in the country is the Burlington, Vermont-based Champlain Housing Trust. The trust currently has 611 owned homes, and over the 35 years it’s been around, 1,100 families have become owners with its help.

Owners deed the land on which the homes sit to Champlain, which reduces the market price of those homes by about 20%. When an owner is ready to sell, she gets 100% of the equity that comes from having paid down her mortgage, and 100% of the appraised value of any capital improvement, but only 25% of the market appreciation, also determined by an appraisal. The home reverts back to the trust, and the cycle can begin again.

 

A sample community land trust lifecycle
Year 1 Appraised value of home $240,000
Purchase price $200,000
Year 8 Appraised value of home $280,000
Equity built $20,000
Market appreciation assigned to owner $10,000
New purchase price $230,000
Source: Champlain Housing Trust

 

“We’ve added a rung” to the homeownership ladder, Brenda Torpy, the trust’s CEO and one of its founders, told MarketWatch. “People now see that they can use our program as a stepping stone. We can provide a homeownership equivalent to what they can pay in rent and they start building equity immediately.”

Champlain owners sell their homes about every seven years or so, roughly the same tenure as national averages, and they move on for all the reasons Americans always move – in search of a bigger home to accommodate children, to warmer places for retirement, or to wherever a new job beckons.

In contrast, the Dudley Street Neighborhood Initiative, in Boston’s Roxbury neighborhood, has about 36 owned housing units dating back to its inception in 1989, and “less than a handful” of those owners have left, according to its director of operations, Tony Hernandez.

“People confess that they originally thought of it as a stepping stone, but now they think of it as home,” Hernandez said. “The intent was to get owners who would stay and keep the family knit into it, rather than a land trust model where they come in, build wealth and move on. We created a village.”

Grounded Solutions Network, a national affordable housing advocacy group, estimates that there are about 165 community land trusts around the country, with about 12,000 owned homes between them. Many land trusts also have affordable rental properties, which Grounded Solutions estimates includes about 25,000 rental units.

A Grounded Solutions analysis as of June 2018 founded that the average household income at the time of home purchase was 64% of area median income, and on average owners were buying homes at about 34% below fair market value.

For the people who buy from land trusts, homeownership has been a success. Through the worst of the foreclosure crisis, they became delinquent only about one-fourth as often as other homeowners.

Grounded Solutions and others argue that it also works for communities: “These programs retained the affordability of the homes to serve the same income level resale after resale. That means that these programs successfully created a stock of affordable homes that remain forever, even if the neighborhood gentrifies or the real estate market turns up or down.”

 

Fixer-uppers

Picture a house-hunter in an average American city, pre-qualified for a mortgage that would allow him to buy a median-priced home of about $250,000. Now picture that buyer hustling to bid on every house that comes along in that price range, only to be outbid by someone with more money, an all-cash offer, or something else.

But now imagine there’s a house that’s lingered on the market. It’s priced at about $180,000, but that’s because it requires a lot of work – a lot.

This scenario happens often enough that the mortgage finance industry has tools specifically for it. Meet the “renovation mortgage,” an innovation that allows the home buyer to take out one loan for the purchase price of the home plus the cost to rehab it.

“I like to say, don’t look at a house as it is, look at a house as what it could be,” said Jonathan Lawless, who runs Fannie Mae’s product development team for affordable housing. “That could be a much better way to get people in the door.”

What’s the catch? Anyone who’s ever undertaken a big renovation knows the drill, pardon the pun. While it may be a lot more convenient to apply for and manage one debt rather than two, renovation loans can still be a beast, rolling the nightmare of home repair into the knotty bureaucracy of mortgage underwriting. Brooke Anderson-Tompkins, president of upstate New York-based 1st Priority Mortgage, calls them both “cumbersome” and “a phenomenal product that more agents need to be aware of.”

For one thing, most renovation loans require that contractors be paid on a draw basis, which several sources told MarketWatch usually makes many potential hires uninterested in such projects. But Jamie Zeitz, who manages the Southeastern U.S. operations of Homebridge Financial Services, points out that contractors and homeowners should both be aware “there’s no safer way” to enter into a construction deal since the work being done is part of a financing package that requires all parties be satisfied, and that work be paid for.

There are also more parties involved than in a regular renovation process. Most loan programs require that a consultant oversee the project, for example. Homebridge offers a “Concierge Service Manager” to serve as a single point of contact for the homeowner, rather than forcing that person to deal with the consultant, the contractor, the appraiser, the people paying the contractor, and so on.

While they’re unwieldy, the mortgage finance industry increasingly sees such loan programs as an important key to solving the housing crunch, Lawless said. Fannie is looking at ways to streamline the draw process, for example, and also recently clarified that its program, called HomeStyle, can be used for accessory dwelling units, which are smaller, standalone buildings on an existing property. ADUs can be used to create rental income, or to house relatives.

Homebridge is the biggest originator of the renovation loan program offered by the Federal Housing Administration, which carries the unwieldy title “203(k) loans.” As with its more traditional mortgage programs, FHA 203(k) loans can be made with as little as 3.5% down, but they will cost a bit more than conventional mortgages.

##

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

The estimate of a 5 million unit housing shortage cited by MarketWatch is far lower than what is estimated by Lawrence Yun, or the Low Income Housing Coalition. Collage by MHProNews.

The MHProNews report linked below on Sun Communities provides some useful data as a tie-in to the above from MarketWatch. How so?

Sun, as a publicly trade company, has provided their research points comparing manufactured home rentals with apartment rentals.  The savings and advantages to manufactured homes in that category is significant.

Then, there is a comparison of buying a manufactured home with purchasing an existing home.  Neither Sun or MarketWatch makes a list of all of the possible pluses, but those they share – such as price point data – are useful.

The Government Accountability Office’s 2014 report on manufactured homes was largely favorable, and included an explanation for a concern that MarketWatch and the Urban Institute raised but did not resolve. Namely, that even with a higher loan cost, the price saving makes the monthly payment for a manufactured home significantly less than conventional housing.

 

 

The possible takeaways or bottom lines are many.  Most certainly, the above is useful in scenarios like Byran, TX, debunking Dave Ramsey, or clarifying some issues with John Oliver’s viral “Mobile Homes” video.

They also make the sad case for what one of the sources with long ties to MHI provided information to MHProNews about state executives chatter which bemoaned the Oliver video dubbed “association malpractice.”  See more on that in an upcoming report that will rip another band-aid off what is taking place in the MHI affiliated network.

All of these are reasons why manufactured home sales should be soaring, not snoring. As MHI member Skyline-Champion notes in their illustration, shown below, manufactured homes are far below their long term average, much less their recent or all-all time highs.

 

ManufacturedHomeMHShipments1990-2017DailybusinessNewsManufacturedHousingMHProNews600

Note the trend line. Manufactured housing is underperforming. Note the difference between RVs 20 years ago, and MH 20 years ago. MH Is underperforming. No one else has advanced a thesis as logical and compelling. To date, Omaha-Knoxville-Arlington have not even attempted to refute the claims. Will they today?

That’s this this morning’s edition of News through the lens of manufactured homes, and factory-built housing.” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

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

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Sun Communities Under the Hood – Data Reveals – Manufactured Homes, Communities, Comparisons with Conventional, Multifamily Housing

 

HBO’s John Oliver on Last Week Tonight Mobile Homes Video, Manufactured Home Communities Fact Check

Why is Seattle Dying? Affordable Housing, Misplaced Compassion, and Manufactured Homes

 

 

 

 

Manufactured Housing Institute on Urban Institute, Bloomberg, National Association of Realtors Reports Praising Manufactured Homes

January 10th, 2019 Comments off

 

MHILogoManufacturedHOusingInstituteOnUrbanInstituteBloombergNationalAssociationRealtorsReportsPraisingManufacturedHomes

Imagine for a few moments that a law would allow you to place a new HUD Code manufactured home someone wants to purchase in one of the numerous areas where they are currently being zoned out by local officials.  There is arguably no need to imagine that, because that law exists. It is a federal law already on the books. To set the table on this analysis, it is useful to read or refresh yourself on the topic of “enhanced preemption.”  That’s an important and useful provision under the Manufactured Housing Improvement Act (MHIA) of 2000.

 

Yesterday, the Daily Business News on MHProNews presented an eye-opening fact-check that underscored where you can most easily find information online when searching Google for “manufactured housing” and “enhanced preemption.”  That report can be accessed by clocking on the hotlinked text/image box below.

 

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

 

Next, imagine that you wanted to tell your fellow Americans the facts about the good news of manufactured housing.  In the course of the year, several third-party research items make the news, which on balance, were favorable to the industry.  You’d want to refer to some of that research, wouldn’t you?

Common sense suggests, yes. Just as companies use testimonials to bolster their claims, so too industries, companies, or institutions routinely point to outside research by a third-party that ‘makes their case.’

Yesterday, and today, two separate reality-checks are going to make something ever more clear.  Using their own website’s search tool, MHI has apparently no content on their own website that says anything about ‘enhanced preemption.’

Furthermore, after discovering the above, the industry’s most-read trade media – MHProNews – did an additional check.

Is MHI showcasing the positive third-party reports about modern manufactured homes on their own website?

Again, based upon the results shown from their own website search tool, the surprising – shocking, and disappointing – answer is, no.  MHI has made no mention of the positive research on their own website of the reports by the Urban Institute, Bloomberg, or National Association of Realtor research.

 

BloombergUrbanInstituteManufacturedHousingInstutyteLogoMHIlogowebsiteFactCheckMHProNews

 

What’s going on?

 

NationalAssocRealtorsRealtorUniversitySitesearchManufacturedHOusingInstiuteLogoMHILogo

 

Fair and Balanced…

One of the searches for those 3 positive reports on manufactured housing provided a link to this article linked here, which is reproduced under fair use guidelines for media. The linked article is overall okay. But there is not one word about enhanced preemption, while they do raise the argument of “Affirmatively Furthering Fair Housing” (AFFH).

If challenged, either an appeal to AFFH or “enhanced preemption” would likely have to be adjudicated. An industry attorney observed that while both could be useful arguments to advance the industry’s interests, the AFFH argument requires both factual research/evidence but also a legal argument.  By contrast, the Enhanced Preemption assertion requires only a legal argument, a simpler case.

 

Furthermore, HUD Secretary Ben Carson has already said publicly that “I hear you” to the manufactured home industry’s concerns and issues.  Given that the Trump Administration has said that it wants to enforce the law, isn’t it just common sense that the simpler argument at least be raised by the industry’s largest trade group?

 

“A New Era of Cooperation and Coordination,” is Promised by HUD Secretary Carson, Saying “I Hear You”

 

In the light of the first report linked above and here, a non-MHARR industry producer emailed yesterday to say that MHI is “as worthless as tits on a boar hog,” a colorful, if sexist sounding, assertion.

MHProNews publisher L. A. ‘Tony’ Kovach represents the growing numbers of industry voices with more sobering concern.  Kovach says that there is a case to be made that the “Omaha-Knoxville-Arlington Axis” – which obviously has made MHI it’s favored industry trade group – is allowing actual and artificial headwinds to limit the industry’s growth and recovery.  That in turn allows larger companies to slowly, steadily “consolidate” smaller ones that weary of the barriers to remain or enter the industry.

 

 

 

In that view, articles like the two below are window dressing. “You could call these MHI articles razzle dazzle, red herrings, window dressing, or head fakes,” Kovach said. “It’s like their latest emailed news update.  Not one word about the drop in new manufactured home shipments.  Instead, you have a bunch of photos of people who met in Washington, D.C.  You have plenty of plugs for their next events, which are profit centers. So, where is the actual performance of MHI? As the classic Wendy’s commercial asked, ‘Where’s the beef?’”

 

 

The articles on zoning and manufactured housing used in their claimed battle for using more manufactured homes as affordable housing are as linked here.  The images that are shown therein have been added by MHProNews to juxtapose what MHI has done, with the sometimes stark comments by others – including MHI affiliates and members – on the topics of enhanced preemption and the promotion of the industry that they claim to represent.  In the light of such facts, is it any wonder that a new national trade association is taking shape?  Or that rumblings for another to represent independent retailers and others are growing? See the related reports, linked further below. ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

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

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

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

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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

 

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New Association Weighs In, Giving Credit Where It’s Due, Opportunitie$, But Winds of Change Challenge Manufactured Housing’s Future

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

Independent National Manufactured Housing Post-Production Association Takes Major Step

 

 

 

 

 

 

Enemies of Manufactured Homes, Communities; Rent Control, MHAction, George Soros, Ignorance, & Entropy

September 22nd, 2018 Comments off

 

EnemiesManufacturedHomesCommunitiesRentControlMHActionLogoGeorgeSorosIgnoranceEntropyMobileManufacturedHousingMHProNews

The headline isn’t an all-encompassing list of those bulleted items, individuals, or groups that act as opposition or de facto “enemies” which artificially stifle the advancement of manufactured homes, homeowners, and professionals. But they do capture the flavor of important realities confronting the most proven affordable permeant homes built in the U.S. today. Specifically, HUD Code manufactured homes.

 

Linked reports that document various points herein can be read later for greater depth of understanding on that aspect of this subject.

 

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

 

The Urban Institute, Bloomberg, and the National Association of Realtors have all had stories and reports this year that on the surface are positive and useful in various ways for advancing the truth about manufactured housing.

 

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

 

The Urban Institute phrasing of their data and reports particularly merits scrutiny, which their January 2018 study is covered in the related report and the links from it, which are found in the analysis linked below.

 

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

What may appear at first blush to be good news for the industry begs the question that the Urban Institute asked in January 2018. Given the affordable housing crisis, and the fact that manufactured homes are well positioned to address the need, why are so few HUD Code manufactured housing units being built?

 

Why is manufactured housing under-performing from its historic norms, as this chart from Skyline-Champion reflects?

 

ManufacturedHomeMHShipments1990-2017DailybusinessNewsManufacturedHousingMHProNews

 

Lawrence Yun, Chief Economist for the National Association of Realtors ® (NAR), says that only by homebuilders getting busy can solve the need for an estimated 8.3 million housing unit shortfall.  Tech gurus say that only factory-based homebuilding will close that gap.  So why aren’t the sales of HUD Code manufactured homes (MH) soaring?

 

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

 

Why are RVs – which trailed MH shipments 20 years ago – now outselling MH by some 5 to 1?

 

WinnebagoRVWholesaleshipmentDataManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Among the headwinds are individuals, and organizations that by accident or design are behaving in ways contrary to the interests of home owners, home seekers, and most manufactured housing professionals.  That is most notably true for MHVille “independents.” As an example,  tent control is an issue that’s widely misunderstood, and thus merits careful examination to reveal how it harms home owners, affordable housing seekers, and many businesses too.

 

2018-09-22_0801RentControlMobileManufacturedHomesGoogleDailyBusinessNEwsMHProNews
2018-09-22_0809MHAction2018MHActionNMHOARentControlProtestsManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Above and below are some recent headlines, in screen captures from Google and alternative search engine, DuckDuckGo.

 

DuckDuckGoSearchResultsMHActionRentControlMobileManufacturedHomesDailyBusinessNewsMHProNEws

 

These are examples of what Marty Lavin, JD, a Manufactured Housing Institute (MHI) award winning professional, has called “the [manufactured housing] industry’s other image campaign.”

There are routinely far more negative stories that fill the news and ether than positive ones.  As MHProNews has uniquely documented for some years, there are positive reports about modern manufactured housing that date back for over 2 decades.

 

GeorgeSorosWikipediaDailyBusinessNewsMHProNews527

Hungary’s [Prime Minister] Viktor Orbán has turned on George Soros.” = The Guardian. “Israel defends Hungary’s ‘antisemitic’ portrayal of George Soros…” = The Independent. Soros has backed groups like MoveOn, ACORN, and New York Communities for Change, which in turn has aligned with MHAction.

20 years ago, manufactured housing sales were soaring.  Today, they are snoring. While it is true that lending was “loose” 20 years ago, that alone doesn’t explain the disparity. Because loan quality doesn’t change the reality that there were demonstrably more customers actively seeking manufactured homes.

Demand is a function of news, marketing, education and desire.  This has been proven with client work by MHProNews’ related consulting/business development services operations.  In varied local markets, we’ve demonstrated that sales can soar, given proper adjustments in training, media engagement, and other proprietary methods. When sales can profitably grow by hundreds of percent year-over-year or in a 24 month time-frame, those cases are clear indicators that it can be done by others too.

 

DuckDuckGoEntropyDefinedLossInformationTransmittedMessageManufacturedHousingIndustryMHProNews

 

Logic and geniuses like Albert Einstein alike tell those willing to listen that doing more of the same, will only create a similar result.

It takes effort to change, or as John Bostick – President of Sunshine Homes – keenly observed, “Easy doesn’t pay well.” Change requires effort, and effort – energy is the antidote to entropy, the status quo, and more of the same.

People like George Soros could, in theory, be ‘won over.’ But Soros – and billionaires like Tom Steyer, Bill Gates, Jeff Bezos, and Warren Buffett – are demonstrably politically-aligned fellow travelers. They each supported in various ways former President Barack Obama and Secretary Hillary Clinton backed agendas. They’ve all grown vastly in wealth, while supporting candidates and causes that appear to be contrary to their interests. But when examined closely, big government has helped – not harmed – the wealth of billionaires.

The agendas of those named above – which are out in the open for all to see – have been demonstrably harmful economically to the interests of the vast majority of Americans, including manufactured home owners, and professionals. See related reports, linked below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovach(C)2017MHproNewsBy L.A. “Tony” Kovach – publisher of industry-leading MHProNews.com and MHLivingNews.com.

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

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Related References:

President Donald J. Trump Visit to Manufactured Home Community, Video, Hurricane Florence Update

MH Communities, Owners, MH Independents Alert – NMHOA and MHAction Next Steps? – Part 1

 

Improving Resale Values: Manufactured Home Owners, Professionals, Shoppers – NMHOA & MHAction, What’s Right, Wrong, Supply & Demand – How to Achieve Mutual Victories

 

“Disastrous,” “Uncompetitive” “Takeover” of “Government Sanctioned Monopoly” Blasted in Congress as Bi-Partisan Fix Unveiled

Facebook, Marketing & News – Manufactured Housing Pros, Sarah Miller, ‘Citizens Against Monopoly’ Sound the Alarm

Wall Street Journal – Tech Giants are Monopolistic Threat to Businesses, U.S. Economy

Affordable Housing Revolt! Amazon’s Jeff Bezos Video Responds to “Breakup” Growing Monopoly, and Manufactured Housing

 

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

HUD, Urban Institute Webcast on Housing Vouchers Thursday Sept 20th – Manufactured Housing Opportunities?

September 19th, 2018 Comments off

 HUDlogoUrbanInstituteLogoWebcastHousingVouchersThursdaySept20thManufacturedHousingOpportunitiesDailyBUsinessNewsMHProNews

On July 29, 2016, the Housing Opportunity through Modernization Act of 2016, (H.R. 3700) was signed into law,” with Wisconsin Housing Alliance (WHA) reminds readers. “This gives the more than 2 million families that have a HUD Section 8 voucher the added flexibility of using the voucher to pay for the full annual cost of purchasing a manufactured home.”

 

It’s a move that many supported, inside and outside of the manufactured housing industry.  But so far, there’s been little appreciable change that can be specifically pin-pointed to this new law, as the HUD Code manufactured housing shipment chart below reflects.

ManufacturedHomeMHShipments1990-2017DailybusinessNewsManufacturedHousingMHProNews

There are plenty of opportunities in manufactured housing, one of them being this HUD Voucher program, at least on paper. But as the shipment diagram above reflects, since the program was passed, there is no appreciable change that can be pin-pointed to this program. It remains to be seen if the Thursday webcast will address this issue, which if properly implemented in a fair and balanced fashion, could be good for HUD, consumers, and the manufactured home industry.

The law also makes it possible to use housing vouchers for site fees in manufactured home land lease communities. See a document from HUD on that topic, linked here as a download.

HUD Secretary Ben Carson, M.D., and the Urban Institute did research aimed to increase the impact of those housing vouchers.  A webcast will be held tomorrow, see the details per the HUD news release to MHProNews.

After the release HUD release below will be some closing points, and related report links.

 

HUDGovPressNewsMediaDailyBusinessNewsMHPronEws

THURSDAY, SEPTEMBER 20, 2018

2:00 – 4:00 P.M. EDT

 

HUD AND URBAN INSTITUTE TO PRESENT STUDY ON LANDLORD ACCEPTANCE OF HOUSING VOUCHERS

Secretary Carson launches major landlord outreach campaign

At 2 p.m. EDT on Thursday, September 20th, the U.S. Department of Housing and Urban Development (HUD) and the Urban Institute will present the findings of a new study examining landlord treatment of renters participating in the nation’s largest housing subsidy program, the Housing Choice Voucher Program. HUD’s Pilot Study of Landlord Acceptance in the Housing Choice Voucher Program examines landlord acceptance of housing vouchers in five cities:  Philadelphia; Los Angeles; Fort Worth; Newark, New Jersey; and Washington, DC.

HUD Secretary Ben Carson recently formed a Department-wide Landlord Task Force and is launching a nationwide outreach campaign to hear directly from landlords and property managers.  Scheduled listening forums are intended to reveal how HUD might make the voucher program more accessible and acceptable, specifically in higher opportunity neighborhoods where landlord participation is lowest.  Read more.

This presentation will be offered via webcast at https://www.hud.gov/webcasts/schedule

 

WHO:            Members of HUD’s Department-wide Landlord Task Force

                        Urban Institute research team

 

WHAT:          Landlord acceptance of housing voucher holders

 

WHEN:          Thursday, September 20, 2018

                        2:00 p.m. – 4:00 p.m. EDT

 

HOW:             Watch HUD’s webcast at https://www.hud.gov/webcasts/schedule

###

WHASection8VouchersCanNowBeusedOnManufacturedHomesDailyBusinessNewsMHProNews

MHProNews readers are reminded that the Urban Institute (UI) has ties to Warren Buffett, and Berkshire Hathaway.

 

The Manufactured Housing Institute (MHI)’s SVP Lesli Gooch recently referred to Brian Montgomery as “their” candidate. These may or may not be relevant for the webcast tomorrow and what follows.  But those related reports are linked further below.

 

MHProNews plans to monitor this program, to see if it is tilted toward what former MHI award winner Marty Lavin has called “the big boys” that often seem to get special treatment at MHI.  “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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

Related Reports:

 

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

MHI SVP Lesli Gooch & MHARR CEO Mark Weiss Bookend New, Prior HUD Controversies

 

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

 

Reinventing HUD’s role in Quality Affordable Housing, Reducing Poverty and Dependency

Study Recommending New Manufactured Housing Association for Independent Retailers, Communities, Lenders, Others Released

4 Concerns of Homebuilders Have Impacting Every American

March 20th, 2018 Comments off

CoupleDiningRoomLaptop4ConcernsHomebuildersHaveImpactingEveryAmericanDailyBusinessNewsMHProNews

PwC Partner Mitch Roschelle says that homebuilders’ optimism is retreating. Roschelle cites among the factors behind the decline – land, labor and lumber – which could affect every American who owns or rents a house.

 

You could add one more “L” to Roshelle’s list, LIBOR.

LIBOR is a benchmark rate, which some of the world’s leading banks charge each other for short-term loans. It stands for London Interbank Offered Rate, and serves as a first step to calculating interest rates on various loan products throughout the world.

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) tells MHProNews that their builder sentiment gauge fell to 70, the lowest reading since last November.

NAHBWellsFargoHousingMarketIndexManufacturedHousingIndustryDailyBusinessNewsMHProNews

Builders’ optimism continues to be fueled by growing consumer demand for housing and confidence in the market,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, LA. “However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand.”

NationalAssocHomeBuildersNAHBlogoMultiFamilySingleFamilyDailyBusinessNewsMHProNews

A strong labor market, rising incomes and a growing economy are boosting demand for homeownership even as interest rates rise,” said NAHB Chief Economist Robert Dietz to the Daily Business News. “With these economic fundamentals in place, the single-family sector should continue to make gains at a gradual pace in the months ahead.”

FramingLumberPricesNationalAssocHomeBuildersDailyBusinessNewsMHProNews

Problems for Stick-Builders Could be Good News for Manufactured Housing…

Producers tell MHProNews that when components like steel, aluminum or lumber rise for conventional builders, even though it goes up for factory builders too, they increase is often less steep. Bulk purchase buying power is one reason for the advantage.

Less waste in the building process is another.

Manufactured housing sales have risen steadily since it hit its all-time low in 2009.

2008to2017HUDCodeManufacturedHomeProductionTotalsMHARRManufacturedHousingAssocReglatoryReformDailyBusinessNewsMHProNews

In spite of the obvious price and other advantages that manufactured housing has over conventional builders, the industry has still lagged behind.

The causes for that lag have been explored in other reports, including the analysis sparked by the Urban Institute’s report on manufactured housing. ## (News, analysis, and commentary.)

Related:

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

HUD Comment Letter – FR-6075-N-01 Regulatory Review of Manufactured Housing Rules

Reaching for the Sky, Multiple Level HUD Code Manufactured Homes

First Things First in Manufactured Housing

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MHI Winter Meeting News Tips, & Industry Headline News 1.28.2018 to 2.4.2018 Sunday Morning Weekly Review

February 4th, 2018 Comments off

ManufacturedHousingIndustryHeadlineNewsSundayMorningWeeklyReview1.28.2018to2.4.2018DailyBusinessNewsMHProNews

 

Maybe you’re working for a giant, or maybe your a one-person operation.

 

Either way, it’s your manufactured and modular home industry too.

Thousands depend on us, and we depend on caring people willing to share what they know, to help inform others, so that they can navigate and grow.

GusRodriguezTejasHomesConroeTXIndustryVoicesDailyBusinessNewsMHProNews

 

While dozens will be there, the numbers will be tiny compared to the total numbers working in the manufactured housing industry.

But if you or someone you know is going to be in New Orleans, LA for the Manufactured Housing Institute (MHI) winter meeting, the next few paragraphs are about news tips and citizen journalism.

MHIWinterMeetingNewsTipsManufacturedHousingIndustryHeadlineNewsDailyBuisnessNewsMHProNews

You can make a difference with your news tips.

 

RickRobinsonManufacturedHousingInstituteMHIDailyBuisnessNewsMHProNews

As an industry executive told MHProNews recently, why not? If they are proud of what they are doing, why wouldn’t they want to have that spread as far and wide as possible? We can’t be everywhere, but some of you will already be there or know someone who will be there.

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

Shortly after the article above was published, Dick Jennison, MHI’s CEO cancelled his public presentation.  Why?  As the photo below reveals, he was there on the Louisville trade show floor.

As an award-winning  veteran industry executive told MHProNews, ‘if they are proud of what they are doing, then they should have nothing to hide. They should want the publicity.’

Do nothing you would not be happy to have an unfriendly but intelligent reporter write about on the front page of a newspaper.” – Warren Buffett, according to the New York Times.

For those who aren’t in NOLA and the MHI meeting, you can skip to the next section where you’ll find our headline news week in review from 1.28.2018 to 2.4.2018 and What’s New on MHLivingNews, etc..

News Tips and Citizen Journalism

‘News’ is a bit in the eye of the beholder.

What’s of interest to a thousands of manufactured housing professionals or investors may not be of interest to millions of others.

Numerous stories come our way as a result of news tips.  For those at MHI’s Winter Meeting, there will be their ‘official version’ of what goes on.  Then, there will be what some could see as a different reality, what actually is said and done.  Both are news of interest.

MHI will be handing out packets, and will give presentations.  They want those presentations secret.  Why?  When only a few dozen will be there, and it impacts tens of thousands in the industry, and millions of others too, isn’t what said there news that should get a broader hearing?

WarrenBuffettWikipediaDoNothingYouWouldNotBeHappyToHaveAnUnfriendlyButIntelligentReporterWriteAboutOntheFrontPageOfANewspaper764x443

MHI doesn’t want recordings or handouts shared.  What’s the legal take on such questions?  We’re not attorneys, but we did some fact checks, here’s some of what we found about the subject, and their sources.

ReportersCommitteeFreedomOfThePressDailyBusienssNewsMHProNewsConsent is not required for the taping of a non-electronic communication uttered by a person who does not have a reasonable expectation of privacy in that communication. A federal appellate court has held that … …the test is whether the parties to the conversation have a “reasonable expectation of privacy.”” said RCFP.org, as well as Google Answers, and Detective Services.

Consent is Not Always Required

 

——-

Under Louisiana Revised Statute 15:1301, et seq. (The Louisiana Electronic Surveillance Act; specifically see La. R.S. 15:1303(C)(4) ), if one of the parties to a conversation knows the conversation is being recorded, then recording the conversation is legal.”  – Matthew S Smith, 5 star litigation attorney.

 

Recording in Public

The general rule is that people in public places must assume they might be photographed or recorded, particularly if they are officials carrying out their public duties. Therefore, you may photograph, film and record what you can easily see or hear in public places, even if the recorded people have not specifically consented to such…” – according to RCFP.org (Reporters Committee for Freedom of the Press was founded by leading journalists and media lawyers in 1970). 

As always, you can send us your news tips, via the link below. We protect sources, or give credit to the source as you prefer.

 

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

 

What’s New on MHLivingNews

Weather Expert’s Surprising, Bombshell Statement on Tornado Deaths and Affordable Manufactured Homes

Weather Expert’s Surprising, Bombshell Statement on Tornado Deaths and Affordable Manufactured Homes

 

What’s New on the Masthead

“Dark Money” “Conflicts” – Warren Buffett, Kevin Clayton, Urban Institute, Manufactured Housing Institute, Affordable Housing Report Revelations

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

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

 

Latest News from MHARR

MHARR Officials Meet with Hud Secretary Dr. Benjamin Carson — Pledge Full Cooperation to Advance Reform Of HUD MH Program

MHARR’s Year-Long Effort With Trump Administration Poised To Pay Huge Benefits

 

Headlines Week in Review on the Daily Business News

Saturday 2.3.2018

Warren Buffett Wants an MH Shark Tank – Clayton, 21st, MHI, ‘Gift that Keeps Giving’

Warren Buffett Wants an MH Shark Tank – Clayton, 21st, MHI, ‘Gift that Keeps Giving’

 

Friday 2.2.2018

“Follow the Money” – Controversial Urban Institute Report on Manufactured Housing

“Follow the Money” – Controversial Urban Institute Report on Manufactured Housing

FISA Memo Released, Markets Drop, Bargain$ Ahead – Plus MHMarket Update

“Global” Domination Plan Announced by Robbie Antonio, Cutting Edge-Factory Designer/Builder

HederaKennethCobonpueRevolutionPreCraftedPropertiesDailyBusinessNewsMHProNews410

“All Housing is Local” – NAHB CEO Reacts to U.S. Latest Housing Data

 

Thursday 2.1.2018

Atlanta Fed Release Surprising Economic Forecast – What it Means for Manufactured Housing

Fiduciary Responsibility to Corp Shareholders-MH Anti-Trust Concerns; Plus MH Market UPdate$

Fiduciary Responsibility to Corp Shareholders-MH Anti-Trust Concerns; Plus MH Market UPdate$

“Now is the Time for All Good People to Come to the Aid of their Country”

Disruptive Social Media Giant, Used by MH Marketers, Facebook Admits It’s Being Rocked

 

Wednesday 1.31.2018

Innovation Trail Spotlights Tiny Houses, “Act of Kindness,” But Are More Obvious Solutions Missed?

“Never a Better Time…Living the American Dream,” plus MH Market Update$

CFPB’s Mulvaney’s Email; What it Says, Mean$ to Lending, & Manufactured Housing

CFPB’s Mulvaney’s Email; What it Says, Mean$ to Lending, & Manufactured Housing

SOTU, Manufactured Housing Business, Regulations, Investments, Americans, and You

 

Tuesday 1.30.2018

Buffett, Bezos – Time Announcement to Drop Market Ahead of SOTU? Plus MH Market Update$

HUD Secretary Dr. Ben Carson, Manufactured Housing Independent Producers Meeting, MH Program Progress Promised

Expert’s NWS Statement Reveals Serious Problems in Tornado WARNINGS & Manufactured Housing Safety Data

America and the Manufactured Housing Industry’s Future – It’s in Their Hands?!

 

Monday 1.29.2018

Citing Tax Reform, Billion$ in More U.S. Investments Coming, MH Industry Impact

Mortgage Rates Jump, Housing Sale$ Slip – plus Manufactured Housing Market Update$

Self-Eval, Team Performance Evaluation – Manufactured Housing’s Monday Morning Sales Meeting

Self-Eval, Team Performance Evaluation – Manufactured Housing’s Monday Morning Sales Meeting

Desjardins – Increased Performance for Professionals Applying 12 Mental Models

 

Sunday 1.28.2018

Manufactured Housing Industry Headline News 1.21.2018 to 1.28.2018 Sunday Morning Weekly Review

Manufactured Housing Industry Headline News 1.21.2018 to 1.28.2018 Sunday Morning Weekly Review

“And that’s all she wrote.” 😊 “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Warren Buffett Wants an MH Shark Tank – Clayton, 21st, MHI, ‘Gift that Keeps Giving’

February 3rd, 2018 Comments off

GoodBusinessLikeStrongCastleWithDeepMoatAroundIWantSharksInWaterIwantitUntouchableWarrenBuffettQuoteMemeGraphicImageManufacturedHousingIndustryMHProNews

 

It’s the gift that keeps on giving,” an attorney researching the manufactured housing industry said to the Daily Business News.

 

If so, it’s a gift courtesy of Warren Buffett, Kevin Clayton, and 21st Mortgage’s – and prior MHI Chair – Tim Williams, and the Urban Institute, among others.

 

MH Industry is Undervalued 

A new Masthead Report, Analysis and Commentary picks as it’s point of departure an interesting factoid.

Manufactured housing is undervalued.

In an era of capitalists seeking bargains for investment opportunities, could there be very many sectors more promising than HUD Code manufactured homes?

But as investors begin to be impressed with the industry’s modern realities vs. the outdated myths, they routinely ask a common question.  Why are manufactured homes so misunderstood and undervalued?

What can be done to lead the industry into historic growth?

 

They answers to those questions and more are explored in the report, analysis, and commentary that is linked above. ## (News, analysis, and commentary.)

Sign Up Today! Click here to sign up in 5 seconds for our factory-built home industry-leading and growing emailed headline news updates. You’ll see in the first issue or two why big, medium and ‘mom-and-pop’ professionals are reading them by the thousands. These are typically delivered twice weekly to your in box.

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Housing’s New Normal: Low Interest Rates, Shifting Demand – MH Opportunity?

November 4th, 2016 Comments off
housingsnewnormalcreditcorelogicurbaninstitute-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: CoreLogic, The Urban Institute.

At the recently held Data, Demand and Demographics: A Symposium on Housing Finance in Washington, D.C., CoreLogic Chief Economist Frank Nothaft shared a strong statement with housing insiders in attendance.

If you’re waiting for any dramatic shifts in housing, interest rates, or anything like them, you’re likely to be left waiting.

I think mortgage rates are going to be with us for a long period of time,” Nothaft said. “The expectation in capital markets is no rate change from the Federal Open Markets Committee (FOMC) today. We may see an increase in federal funds rate in December.

housingsnewnormalcreditfranknothaftcreditcorelogic-postedtothedailybusinessnewsmhpronewsmhlivingnews

Frank Nothaft. Credit: CoreLogic.

HousingWire reports that Nothaft also stated that the recent FOMC announcement could provide more of an indication on the willingness of FOMC members to increase rates before the year is out.

But even if the FOMC does raise rates, mortgage interest rates will stay low, but perhaps not as “dirt cheap” as they are right now.

I think we’ll see rates rise from dirt cheap to a very low level as we move into next year, still remaining below 4% all through next year,” Nothaft said. “We’re evolving into a new era in mortgage rates.

Nothaft also provided predictions on four other trends that he feels will emerge over the next several years that will shape what he has coined the “new normal.

 

housingsnewnormalcreditcorelogicurbaninstitute3-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: CoreLogic.

  • A shift in household composition

With the largest age cohort in the U.S. population, ages 24 and 25 and the average age for the first time homebuyer, age 31, moving closer together, the millennial buyers are coming, soon.

housingsnewnormalcreditcorelogicurbaninstitute2-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: As shown.

  • A shift in the head of household

Nothaft sees a shift to 75 percent of new households being minority-headed over the next 10 years. Hispanics are projected to lead the way.

  • Home sales will continue to rise.
  • But homeowners will be holding on to their homes, which could constrain growth.

An Opportunity for the Manufactured Housing Industry

solutionusaffordablehousingcrisishidingplainsight-mhlivingnews-billmatchneertonykovach-posteddailybusinessnewsmhpronews

Credit: MHLivingNews.

MHProNews and MHLivingNews continue to cover the challenges as well as the numerous advantages that the manufactured housing industry provides in the U.S., making affordable, quality housing easily available to most of the population.

latonykovachcreditsmhvillagemhpronews-manufacturedhousingindustrynews-mhpronews

L A ‘Tony’ Kovach, credit, MHVillage.

MHProNews and MHLivingNews publisher L.A. “Tony” Kovach provides deep insight into this opportunity in Obstacles and Opportunities in Affordable Housing – October 2016, and the understanding that the solution to affordable housing is hiding in plain sight.

With new attitudes about housing, millennials are looking for viable economic solutions that also provide the opportunity for sustainability.

Hybrid Prefab Homes president Otis Orsburn sees a tremendous opportunity for his segment of the industry to fill that need.otisorsburnhybridprefabhomes-dailybusinessnewsprefabricatedmodularhomeindustry-mhpronews

Our retail shoppers are typically millennials that embrace technology and are looking for more bang for their buck without sacrificing green, sustainable and energy saving features. They wonder aloud why all homes aren’t built in the hybrid manner,” Orsburn told MHProNews in his A Cup of Coffee With… feature.

Leaders in business also clearly understand the opportunity, such as Warren Buffet and Berkshire Hathaway, which owns Clayton Homes, and Sam Zell, Chairman of Equity LifeStyle Properties, or independents such as John Bostick, with Sunshine Homes.

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

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

Giants and independents alike are “doubling down” on the manufactured housing industry, with Zell being quoted as saying during this interview “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

Sunshine Home’s John Bostick knows the challenges facing manufactured housing, as well as the immense opportunities when he reminds professionals that “Easy doesn’t pay well.” What Bostick means is that it is only through effort that manufactured housing will advance to its potential. ##

(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.

Urban Institute says Preservation, Manufactured Homes are Solutions to Affordable Housing Crisis

September 1st, 2016 Comments off
UrbanInstituteRentalCrisisMap-postedDailyBusinessNews-MHProNews-

NOTE: If you hear sounds coming on, scroll down to the FEMA manufactured housing report, and push PAUSE on the video. Sorry, but that video only offered an autoplay function. MHProNews-produced videos do not do that…Urban Institute affordable housing map. ELI means extremely low income, see related article, linked here.

Affordable housing options are becoming less plentiful around the country, but according to Urban Institute researchers, there are ways to sidestep what has become an outright crisis.

The numbers surrounding the lack of affordable housing across the U.S. are staggering.  In their map shown at the top left, light colored areas represent less affordable housing options.  Only the dark blue areas are more affordable.

Urban Institute research has laid out a handful of ways to avert, or at the very least, minimize the damage being done by the loss of over 2 million affordable housing units in just over a decade.

In this report, the solutions examined all revolve around the idea of preserving the housing that already exists, rather than try to develop more.  The report wasn’t anti-development; rather, it focused on examining an alternative option.

Preservation of housing stock tends to be a more affordable option than new conventional construction, even if it might not be as “sexy, as Urban Institute research associate Mark Trekson puts it.

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Mark Treskon, Urban Institute.

More importantly, preservation means current residents are less likely to be displaced than they would be in a new construction scenario.

Quoting from the attached report, “Another lesson from these case studies is developer capacity: the bigger a project, the more sophisticated the methods needed—and partners involved—to make it successful.”

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Photo collage credit, Vida Lea Coop.

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Preserving Manufactured Home Communities

One of the Urban Institute’s roads to more affordable housing featured in their in-depth report linked here features manufactured homes and land-lease communities, like the one in the photo and chart above.

As industry professionals know, manufactured homes are less expensive because of the money saved from less time and labor being used, plus less material being wasted. Not only do people spend less money by living in a manufactured home, but the Urban Institute study suggests they could find themselves with an opportunity to earn money off the land in the communities they occupy.

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Vida Lea is the example of preservation used in the Urban Institute study, linked above. Photo credit, Vida Lea Co-op.

Millions of manufactured homeowners don’t own the land they live on. The majority of the time, that works out fine for residents and for the property owners.  But there are times when a community, its owner(s) – and thus its residents – comes to a crossroads.

The Urban Institute explains that places like Vida Lea Mobile Estates in Leaburg, OR witnessed its residents purchase the 33-space community from its owner. The coop/resident buyers turned their leased home sites into a Resident Owned Community (ROC). This model allows its members to not only own their already affordable manufactured home, but to also gain control of the property it was sited upon.

As once-vacant manufactured home-sites are filled, the site fees (aka “lot rent”) generate revenue by leasing out spaces, which further cover operating expenses.

That model turned out to be a successful one of preservation of affordable housing for the Vida Lea Mobile Estates residents. They were able to keep their homes and improve upon them, with repairs to the sewage system and driveways as well as add some amenities like laundry machines and some common areas. Upgrades like those may seem relatively minor in the long run, but the $275,000 spent on those improvements can go a long way towards helping residents not only stay where they are, but also produce additional income for the community, which keeps the costs lower for all involved.

The Flip Side – A Case of No Preservation

This case is one not in the UI report. It’s one of several community-related stories that are not working out as well as Vida Lea. In addressing an issue in his home state of a improperly run MHC that was allowed to run down and then be sold off, the prior chairman of the Texas Manufactured Housing Association made the following observation.

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Karl Radde, Southern Comfort Homes, Chairman, National Retailers Council, MHI.

At the end of the day, it takes everyone working together to better the situation and that must include responsible, fair and balanced regulations by cities and towns and not the trend to have outright bans on all manufactured housing,” says Southern Comfort Homes President and General Manager, Karl Radde. “Not all communities can be “Five Star” resort-type destinations, but there’s a strong need for basic, secure, well-kept communities to serve affordable housing.”

Radde’s point, while not a direct comment on the report below, relates to a story out of Florida reported by the Daily Mail, about yet another unappealing MH community, and its closure.

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In this June 14, 2016 photo, residents of the Little Farm trailer park pose for a group photo in El Portal, Fla. The 15-acre neighborhood was home to a close-knit community until the site was purchased by Wealthy Delight, LLC, and residents were evicted. The area is in preliminary planning for mixed use development. — Daily Mail. (AP Photo/Lynne Sladky)

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Marty Lavin, JD.

The Little Farm “trailer park,” the DailyMail says, has been home to dozens of Haitians, Hispanics and others for years to decades. In a commentary on this specific closure, attorney and industry finance expert Marty Lavin had this to say: “…real people, in closing manufactured home communities, are financially and emotionally injured, especially the financially fragile folks who live in our land lease communities (LLCs).”

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In this June 13, 2016 photo, graffiti is written on the side of a mobile home at the Little Farm trailer park in El Portal, Fla. In a city known for its glitzy, luxurious condo towers, affordable rental housing is hard to come by. Residents, many of whom had owned their mobile homes in this close-knit community for years, were evicted in July after the park was purchased in 2015 by Wealthy Delight, LLC. The site is now in preliminary planning for mixed use development. – DailyMail. (AP Photo/Lynne Sladky)

Lavin elaborated. “Whether we like it or not, LLCs have a special obligation. We [community owners] hold ourselves out as a site to buy a HUD Code manufactured home, and invite home buyers to essentially stay forever.” 

Nelly Shirley, Little Farm Trailer Park, El Portal FL

In this July 12, 2016 photo, Nelly Shirley, 74, poses outside of her mobile home at the Little Farm trailer park in El Portal, Fla. She received a beautification award for creating the lush, tropical garden around her mobile home where she lived for 22 years, but was evicted in July after the park was purchased in 2015 by Wealthy Delight, LLC. She received an $8,000 settlement for her relocation, and is now living in a one-bedroom apartment. The park will be razed. – DailyMail.  (AP Photo/Lynne Sladky)

“Then one day, the property reaches renewal, and we chose to sell and send the people out on the street. Because of the fragile people who live with us, sympathy easily arises.”

That sympathy often hits the local or regional news, and contributes to the image issue that the manufactured housing industry faces.

Lavin said that he personally sold two communities he owned to the residents, using the ROC process. Along with Vida Lea Mobile Estates in Leaburg, OR and hundreds of other communities, Lavin’s selling to the residents is an example of preservation, which the Urban Institute study notes is so important for affordable housing preservation across the country. ##

(Image credits are as shown above.)

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Joe Dyton, for the Daily Business News, MHProNews.

Article submitted by Joe Dyton, to the Daily Business News, MHProNews.

While Home Starts Fall, Housing Permits Rise in May

June 18th, 2015 Comments off

home building   fotosearchOverall U. S. home starts fell 11.1 percent in May after notching the largest monthly gain in 24 years in April, according to usnews. While May’s figures were 5.4 percent above a year ago, the rate at which homebuilders began new homes in May was 1.036 million, a drop from April’s upwardly revised figure of 1.165 million, a 22 percent gain over March.

Single-family home starts dropped 5.4 percent in May to a seasonally-adjusted annual rate (SAAR) of 680,000, yet remain 6.8 percent over last year’s rate. Multifamily starts fell 18.5 percent to a SAAR of 349,000, but are still up 2.6 percent over the same period last month.

Another good indicator, however, is that housing permits rose 11.8 percent in May to 1.275 million, the best rate since August 2007. “While the May starts data was a bit of a disappointment, the permit data was much stronger than expected suggesting starts should continue to improve in coming months, supporting job creation and the broader economy,” said Dan Greenhaus of brokerage BTIG.

There are also more people renting: MHProNews has learned the Urban Institute estimates 13 million additional households will be renting by 2030, as compared with nine million additional homeowners. ##

(Photo credit: fotosearch)

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