MHInsider™ January/February 2019 - Louisville Show Edition by MHInsider

LOUISVILLE MANUFACTURED HOUSING SHOW • JAN 30 – FEB 1, 2019 JANUARY/FEBRUARY 2019

MHINSIDER.COM ™

T H E M A G A Z I N E F O R M A N U FAC T U R E D H O U S I N G P R O F E S S I O N A L S

2019 Product

Trends & INSIGHTS IN THIS ISSUE:

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CONTENTS ™

VOLUME 2 • ISSUE 1 JANUARY / FEBRUARY 2019 ON THE WEB MHInsider.com

–––––––– Publisher

Darren Krolewski darren@mhvillage.com

60 2019 Product Trends & Insights 14

Executive Editor

Patrick Revere patrick@mhvillage.com

Managing Editor

Matt Milkovich mattm@mhvillage.com

Contributing Editor George Allen

Design / Layout

Mark Dollan dollan@mhvillage.com

Contributors

Retailers See High Demand, Continued Push for Amenities

Ways to Maximize the Value of Your Mobile Home Community

NEWS BRIEFS 6 Industry Happenings: Updates from the World of Manufactured Housing EVENTS 11 Upcoming Industry Events ADVOCACY 21 The MH Industry’s Voice in Washington is Strong COMMUNITY 24 The Bottom Line: Lessons, Wisdom and Insights from Fellow Community Owners 34 Does Your Community Make a Good First Impression?

2019 LOUISVILLE SHOW GUIDE

40 Chairman Byron Stroud Looks to 2019 for a Stellar Year in Home Sales 44 Show Floorplan and Exhibitor List 46 A Word from the State Association Directors INDUSTRY UPDATE 50 2018 Year In Review: National Initiatives Help Industry Thrive FAIR HOUSING 53 Getting Serious about Fair Housing and ADA Compliance

Ken Corbin Kevan Enger Dr. Lesli Gooch Dick Jennison Donna Rishel

Cover Photo

Ultimate Kitchen 3 (UK3) Series Home Photo Courtesy of Skyline Champion Corp.

Advertising Sales

Matthew O’Brian Call (877) 406-0232 matthew@mhvillage.com

Disclaimer

Although we made every effort to ensure that the information in this issue was correct before publication, MHVillage, Inc. and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. Opinions expressed are those of the author or persons quoted and not necessarily those of MHInsider or the publisher MHVillage, Inc.

–––––––– MHInsider™ is published by:

INDUSTRY PROFILE 76 Fitzcharles Gains Footing in Leadership with Ohio’s Largest Home Builder THE ALLEN LEGACY 82 The Last Decade Has Seen a Profound Paradigm Shift 4 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

2600 Five Mile Road NE Grand Rapids, MI 49525 (800) 397-2158 www.MHVillage.com

LETTER FROM THE PUBLISHER

Happy New Year Looking Forward, Looking Back By Darren Krolewski Photo courtesy of Zeman Homes

he New Year traditionally is a time of reflection, when we review the past and look forward with hope to the year ahead. As I look back on our industry’s accomplishments, I believe that 2018 can best be summarized by saying that manufactured housing had one heck of a year. Shipments were up. Everyone was busy. We even managed to score a few wins legislatively. But most importantly, the conversation about manufactured housing seemed to make a fundamental shift. For the first time in a long time, the mainstream seemed to recognize that manufactured housing could be part of the solution. That’s not to say it’s all smooth sailing from here. We have to retain and build on the progress we’ve made as an industry in 2018, continue to advocate for our priorities in a divided political environment, and work to overcome perennial challenges like labor, consumer financing and unfavorable local regulation. No small tasks, indeed. Fortunately, our industry is up to the challenge. If the trends and predictions expressed by manufactured housing professionals in this issue are any indication, 2019 looks like it will be another strong

year. And while some have cautioned that growth might not be quite as dramatic as it was in 2018, the general consensus is that we will all have a lot to look forward to this year. On that note, let’s talk about what you can look forward to from us. When we started the MHInsider™ last January, we weren’t sure what the future would hold. Our goal was to create a print trade magazine that portrayed manufactured housing positively, informatively and professionally. It is because of your enthusiasm and support that we have been able to continue doing what we’re doing. Whether you’ve shared valuable comments and feedback with our editorial team, contributed news or articles, supported this publication through your generous advertising, or simply remained a loyal reader, I thank you. We have been humbled by your support. On this, our first anniversary, I am pleased to announce that the MHInsider™ has moved from a quarterly to a bimonthly publication schedule for 2019. We look forward to providing you with even more of the content and information you’ve told us is most valuable to you. Joining our team is Matt Milkovich, our new managing editor. Matt comes to us from the agricultural trade and brings

an extensive background in journalism to the MHInsider™. I’d also like to recognize the contributions of Patrick Revere, our executive editor, who has done a tremendous job guiding the content of the MHInsider™ during our inaugural year. Last, but not least, allow me to acknowledge the members of our team who work tirelessly behind the scenes: Mark Dollan for directing the layout and production of the MHInsider™, and Matthew O’Brian for cultivating the advertiser relationships that make the MHInsider™ possible. Happy New Year from all of us at the MHInsider™, and best wishes for a prosperous 2019. MHV Darren Krolewski i s C o - P re s i d e n t and Chief Business Development Officer of MHVillage, the number one website for manufactured homes, retailers and communities. Prior to joining MHVillage in 2014, Darren held senior marketing positions in the telecommunications, advertising and financial services industries – and was a partner in a marketing consulting firm serving the housing industry.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

NEWS BRIEFS

Happenings

INDUSTRY

Updates from the World of Manufactured Housing…

Clayton Donates to Red Cross for Hurricane Relief

For the nine months ended Sept. 30, 2018, total revenues increased $112.3 million to $852.9 million. Net income attributable to common stockholders was $96.5 million.

ELS Updates Revenue, Dividend Numbers

From left: Representatives from Clayton present the American Red Cross of East Tennessee with a donation check. Funds were raised by Clayton team members and matched by the company. The donation will be used to aid in supporting Red Cross relief efforts in areas affected by Hurricanes Michael and Florence (Photo courtesy of Clayton Homes)

Clayton Homes gave a $112,543.60 donation to the American Red Cross East Tennessee Chapter. The donation will be used to support Red Cross relief efforts in areas affected by Hurricanes Michael and Florence. Team members from the company’s 360 retail home centers, 40 home building facilities and Maryville headquarters raised $56,271.80, which was matched by Clayton.

Sun Announces Third-Quarter Results For the quarter ended Sept. 30, 2018, total revenues for Sun Communities increased $55.3 million to $323.5 million. Net income attributable to common stockholders was $46.1 million.

formed a new venture with the portfolio’s seller to own and operate the fund’s land-lease community investments, which includes ownership of the seller’s operating company. Green Courte Partners also promoted Bill Glascott to chief investment officer.

For the quarter ended Sept. 30, 2018, total revenues for Equity LifeStyle Properties (ELS) increased $15.1 million to $256.7 million. Net income available for common stockholders for the quarter increased $7.6 million to $56.1 million. For the nine months ended Sept. 30, 2018, total revenues increased $47.9 million to $743.2 million. Net income available for common stockholders for the nine months ended Sept. 30 increased $17.5 million to $162.4 million.

Clayton Offers Smart Thermostat

Acquisitions Create Largest MH Supplies Distributor in West

The Los Angeles County Board of Supervisors temporarily banned rent increases greater than 3 percent at mobile home parks in unincorporated portions of the county. The six-month moratorium on rent hikes started in early October. The move was designed to protect residents from higher rent hikes while permanent rent control for such housing is under consideration. The measure will only apply to mobile home tenants with leases of 12 months or less. Park owners may petition for higher rent increases if they believe a 3 percent cap prevents them from earning a reasonable return.

Ogdon Ventures, a private equity firm, recently acquired Westland Distributing, Arizona Home Supply and Nevada Home Supply to create the largest manufactured housing supplies distributor in the Western United States.

Green Courte Acquires Communities, Promotes Glascott Green Courte Real Estate Partners IV (GCREP IV), a Green Courte Partners’ investment fund, acquired a portfolio of eight land-lease communities in Michigan containing 2,906 sites. Concurrent with the acquisition, GCREP IV

6 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

Clayton Home Building Group announced an exclusive partnership with ecobee, the company behind the world’s first wi-fi smart thermostat. Beginning Oct. 1, all new prefabricated Clayton Built homes included an ecobee3 lite smart thermostat. The ecobee4 will be available as an upgrade in select Clayton homes across the United States.

Los Angeles County Limits Rent Increases

continued on page 10

RHP, the Nation’s Largest Private Owner & Operator of MHCs, is aggressively acquiring MHCs throughout the nation.

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NEWS BRIEFS

continued from page 6

Vesta Provides Housing for Oil Workers Simon Group Holdings companies Vesta Modular and Atlas Oil partnered to establish a modular housing solution for Atlas’ frac and rig business in Odessa, Texas. Modular housing units provided by Vesta will offer a housing solution for Atlas team members in west Texas that have limited housing options.

Yes Communities Adds New Leaders Yes Communities promoted Julie Elkins to chief financial officer. She will be responsible for driving Yes Communities’ economic growth and overseeing all financial and accounting functions. Peter Hepner joined Yes Communities as senior vice president of strategic operations.

RHP Buys Delaware Community RHP Properties acquired Shady Park, a manufactured home community in Selbyville, Del. Following the acquisition of Shady Park’s 304 home sites, Michigan-based RHP now owns and manages 237 manufactured home communities with 60,482 sites in 24 states.

Meritus Buys Michigan, Indiana Communities Meritus Communities recently acquired a manufactured housing portfolio consisting of nine assets in Michigan and Indiana, totaling approximately 3,171 pad sites. Eight of the assets are all-age communities and one is an age-

restricted community. ACORE Capital provided Meritus with $64 million to help facilitate the acquisition.

Skyline Promotes Dan Grant to VP Dan Grant has been promoted from director of strategy to vice president of sales and business development for Skyline Champion Corp.

MHRE Opens Denver Office MHRE Inc., a Michigan-based brokerage firm, opened a new office in Denver, Colo.

MHVillage Promotes New Marketing VP MHVillage/Datacomp has promoted Mark Dollan from creative director to vice president of marketing. Dollan also directs layout and production of the MHInsider™ magazine.

Portland Protects Manufactured Home Communities The Portland, Ore., city council voted Aug. 22 to make it more difficult to redevelop mobile home parks within city limits. The change to Portland’s zoning code, an effort to preserve low-cost housing, will create a new zone for 56 of the city’s mobile home parks, which have about 3,000 homesites.

Northwestern Buys Florida Community Northwestern Mutual Life Insurance Co. bought Riverside Oaks, an 18-acre manufactured housing park in Punta

Gorda, Fla., for more than $10 million. Opened in 1990, the park has a 55+ tenant base and 102 rental sites for manufactured homes.

Monroe & Giordano Finance Community Purchases Monroe & Giordano arranged financing for manufactured housing community purchases in Florida. The communities included Harbor Lights Club in Seminole, Angler’s Cove and Angler’s Cove West in Lakeland, Fla. and Angler’s Green in Mulberry.

MHC Acquires Ohio Community MHC Capital has acquired a new manufactured housing community, Twin Wall in Toledo, Ohio. MHC Capital, a real estate investment firm focused on the manufactured housing space, is one of the largest owner-operators of manufactured housing communities in the nation.

Obituaries Anthony “Tony” Taylor died on Oct. 21 in Farmington, Mo., at the age of 59. Taylor worked the majority of his career for Gifford Homes in sales and management. He also served on the board of the Missouri Manufactured Housing Association. Jean D. Merriman died Oct. 14 in Largo, Fla. She managed Wilder Mobile Home Sales as well as Wilder Haven East Mobile Home Park in Decatur, Ill.

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Save the Dates for Two Days of Plant Tours and Educational Seminars Learn the latest trends in community operation, management, finance, sales and products, and tour at least five manufactured housing factories. Sponsored by the Indiana Manufactured Housing Association and MHVillage.

MONDAY JUNE 17 & TUESDAY JUNE 18 10 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

EVENTS

Upcoming Industry Events Louisville Manufactured Housing Show 2019

JAN. 30-FEB. 1 • LOUISVILLE, KY. — KENTUCKY EXPOSITION CENTER The Midwest’s premier event for manufactured housing professionals. The annual show brings out an array of new manufactured home designs, the latest in technology, the best in supplier offerings and a look at all the newest amenities and system-built options the industry can offer.

MHI Winter Meeting

FEB. 18-20 • AUSTIN, TEXAS — THE DRISKILL The Winter Meeting provides another opportunity for members to network, exchange information, hear about the latest housing trends and learn about industry issues. In addition, various MHI boards, divisions and committees will meet to discuss and debate important issues.

The 2019 Tunica Show

MARCH 26-28 • TUNICA, MISS. — HOLLYWOOD & RESORTS CASINOS The Southeast’s premier event for manufactured housing professionals. As the largest outdoor manufactured housing show in the nation, the Tunica Show captures the attention of the manufactured housing industry like few events can.

2019 MHI Congress & Expo

MAY 6-8 • NEW ORLEANS, LA. — HYATT REGENCY NEW ORLEANS The national trade show where you can obtain the knowledge and resources necessary to excel in today’s housing marketplace. Choose from attending educational programs with powerful speakers, networking with the industry’s most successful professionals, developing new business ideas and visiting the exhibit floor to see the latest products.

MHI Summer Legislative Fly-In

JUNE 10-11 • WASHINGTON, D.C. — THE LIAISON An intensive two-day program that gives participants an inside look at the public policy process. Participants also visit their members of Congress to advocate for the industry.

Two Days of Plant Tours and Educational Seminars

JUNE 17-18 • ELKHART, IND. — RV/MH HALL OF FAME Two days of factory tours and educational workshops. Retailers, community owner/operators and vendors from around the nation will have the chance to come together to learn the latest trends in community operation, management, finance, sales and products.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

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Retailers BUILDER / RETAILER

“The future is really, really bright for

manufactured housing...”

– Evan Atkinson, Clayton Homes of Frazeysburg

BUILDER / RETAILER

Retailers See High Demand, Continued Push for Comfort By Patrick Revere Photos courtesy of Carefree Homes, Clayton Homes of Frazeysburg, Little Valley Homes, Mount Vernon Dream Homes and Parkplace Homes

he manufactured home professionals who operate home centers, or “street dealerships,” are among the first in the business to get new product, as well as field questions from consumers on the latest home solutions. With that in mind, MHInsider conversed with retailers from each state represented at the Louisville Manufactured Housing Show to learn more about what customers want and what types of amenities are capturing their attention. Evan Atkinson has been in the industry for 35 years and operates Clayton Homes of Frazeysburg in Frazeysburg, Ohio, one of the top retail centers in the Midwest. “The future is really, really bright for manufactured housing,” Atkinson said. “It makes a ton of sense, and it always has. It just makes more now than ever.” From the height of the industry in the late ’90s, the state of Ohio sold about 6,700 homes. It plunged to 550 homes by 2009, and has recovered to be in the neighborhood of 2,000 homes for 2018. “We’re experiencing a phenomenal amount of interest and traffic coming in the store, with customers who are very receptive to the product, almost to the point that they’re shocked. You didn’t have that 20 years ago in the industry,” Atkinson said. “It was all the affordability niche at that

time, and we still do that today, but homes are completely different.” What happened in between is that the rough economic conditions pushed about two-thirds of the retailers out of business, which means those who remain are reaping the benefits of that renewed interest in factory-built product.

folks are really in tune with what the market is craving.” The farmhouse look is a major focus. The big kitchen island, white cabinets, designed lighting, ceramic tile in large showers, and the continuation of the distressed look are trending. “Rather than mounted coat hooks, for instance, we’re using this distressed plumbing fixture that comes out of the wall and caps off for hanging a coat or hat,” Atkinson said.

“What our customers are moving toward is custom siding colors. They’re moving beyond the standard five or six hues toward more bold colors that have a little more life to them.”

About 2,000 homes were sold in the state of Ohio during 2018

– Evan Atkinson, Clayton Homes of Frazeysburg

What Do Ohio Customers Want? Customers are intrigued by the interior comforts and livability that modern manufactured home floor plans offer. “They’re surprised by the interiors of the homes. We have an opportunity to improve the exteriors to a great extent still. But people walk in to open and welcoming floor plans that they can see themselves living in. “I credit that to Clayton Homes,” Atkinson added. “Their interior design

Atkinson said his home center sells Clayton and Adventure Homes product. He continues to see 65 percent of customers asking for a single-section home, though he envisions the share of multi-section sales on a continued steady increase. That said, about 30 percent of home sales are for community living, while the other 70 percent are destined for private land. “One of the things that the whole Clayton organization is focused on is continued on next page

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

ParkPlace Homes of London, Ky., is coming off consecutive record breaking sales years.

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providing a homeowner a better life, with EnergySmart features,” he said. “That’s a big feature, that we’re building a home that will reduce expenses on a monthto-month basis.” Atkinson said he anticipates moving about 110 homes for 2018, with as much as 25 percent growth in 2019. But there are obstacles. “Where we are right now is up that climb into growth mode, and I believe the next few years are the ‘hay-making’ time,” he said. “We’re going to be able to help a lot more customers than we would have in previous markets.” Freddie Mac and Fannie Mae continuing to make progress in the development of a secondary market for chattel home loans is a primary factor on the minds of most retailers, he said. And being able to work more on exteriors will help, too. “If we can figure out a way to create more interesting curb appeal for a good price, that would be the final element that would cinch the deal,” Atkinson said.

Business is Booming in Kentucky

Ron D’Ambra National Manufactured Modular Program Manager

803.917.1946 rodambra@2-10.com

Amie Hacker, with Parkplace Homes in London, Ky., is a leading retailer and president of the board of directors for the Kentucky Manufactured Housing Institute. She said her business is coming off consecutive record years, and that she anticipates about 5 percent growth in sales for 2019. Parkplace sold 148 homes in 2017, and was nearing 160 last year. “I think we’re right in line with what much of the state is doing, performing well and growing steadily,” Hacker said.

16 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

About 60 percent of the time, the Park Place customer base in eastern Kentucky and portions of northern Tennessee is looking for what is referred to as a “no-change house.” “They can add an EnergyStar package, a dishwasher and a dormer above the entry door,” Hacker said. “On the exterior, they can choose colors for the vinyl siding and shutters. But the square footage is something that won’t change unless you add something on-site. But it’s product you can get into to go from an apartment to a home. It really is the true meaning of affordable housing in the business today.” Fewer options means a more streamlined building process that provides a lot of square footage for the price. They sell a lot of Tru Homes through Clayton, as well as Champion and Fleetwood product. The Clayton brand homes come from the Appalachia, Maynardville and Rutledge plants in Tennessee. Hacker said the entry-level customer is balanced out by the high-end customer, with little to talk about in the middle of the market. Customers looking for higher-end multi-section homes have the greater number of options, but typically come in knowing what they want.

The High-End Options Customers Want “We’re getting more and more of the folks who are looking for the customization that gets you into something that looks more like site-built housing,” Hacker said. “If you draw a floorplan, we can build it.

BUILDER / RETAILER

“We’re seeing more on the multi-section homes, and those are going to buyers with land or looking to buy land,” she said. “The single-section homes we sell are going into communities.” Stainless steel appliances, crown and baseboard molding, 9-foot ceilings, recessed tray ceilings, upgraded faucets and double shower heads are all a huge draw for the more customized multi-section homes. “These are all architectural elements that people are seeing in $250,000, site-

sells homes to people with land within 100 miles of his retail operation. Only a couple of homes each year go into a community, he said. About 70 percent of what he sells is multi-section homes. “The last couple years we’ve seen some increase in sales of multi-section homes, but we’ve always leaned a little bit that way because of where we are and our customer make-up,” Xanders said. “Open floor plans remain the biggest seller. People really seem to like that

“Next year is the million dollar question,” he said. “We’ve really picked up lately, but it’s hard to say what’s going to happen in 2019, with consumer confidence and the stock market being a little unpredictable. “I think we’ll probably be flat, or maybe a little bit down.” Part of the problem is a bottleneck on the delivery and setup end of the business. Mount Vernon Dream Homes in the fall had 20 sold homes on the lot, with about another 40 homes on the way from the plant. “The guys we have going are good, and they have a couple crews, but it’s hard for transporters and installers to keep up,” Xanders said. “We could sell a lot more homes if we had that part of the transaction solved. It would be like opening the floodgates.”

Meeting the Demands of Multiple Markets

Mount Vernon Dream Homes has a prominent location along the junction of highways 57 and 64 in Hamilton County, Ill.

built houses that now they can get in the multi-section manufactured home that’s $150,000,” she said. “If you’re buying a site-built home at that price, it’s a small and older home probably in a less than favorable neighborhood.” “With ours, you’re going to get double the square footage and all the options you want,” Hacker added. “The 5/12 roof pitch, residential look. It’s a brand new home with all those amenities in place.”

Selling Homes for Open Land in Southern Illinois Michael Xanders of Mount Vernon Dream Homes in southwestern Illinois

feel,” he said. “We’re usually selling a three-bedroom, two-bath home, between 1,600 and 1,800 square foot. People are asking for finished drywall, which is in about 80 percent of what we sell.” Like other retailers, Xanders sees customers who gravitate toward the large shower, stainless steel appliances, white cabinets and gray wall colors. “And laminate flooring,” he said. “People don’t want as much carpet anymore.” Mount Vernon Dream Homes sells homes from Champion Homes of Dresden, Tru Homes, Fleetwood, Giles and Deer Valley. Champion Homes of Dresden has been picking up, too, Xanders said.

Little Valley Homes has retail centers in Cadillac, Mich., and the Detroit metro area, catering to the needs of very different customers. “Cadillac has a good majority of vacation and retirement customers. They are primarily private land deals, and we sell a good amount in both the manufactured and modular product,” said Bobbie Meehan, operations manager for Little Valley Homes. “The Belleville location sells to the private land buyer as well, with larger and higher-priced homes, often with customization for added closets, cabinets, drawers and a larger pantry, for instance.” The northern Michigan customer with an eye toward the single-section or small multi-section home is looking to keep things simple, opting for vinyl over gypsum wallboard that is easily cleaned. Exterior trends are toward moss/olive or gray siding, with dark chocolate or gray cabinets. continued on page 19

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

BUILDER / RETAILER

continued from page 17

“Most go with black appliances and putting in a 60-inch shower in the master bathroom,” Meehan said. “And linoleum through the home versus carpet is another growing trend.”

Little Valley Homes of Belleville, near Detroit.

Customers Come with Cash in Hand, or Pre-Approvals Another growing element for Cadillac-area customers is to skip financing. “There are many cash buyers, and they keep their home and site work fairly simple,” Meehan said.

Buyers in the Detroit area, at the Belleville showroom, more often come looking for modular product because of zoning restrictions on manufactured housing within city limits. “We have a majority of financed buyers, and we’re seeing more lenders getting involved in home and construction projects,” Meehan said. “In fact, a majority of our buyers are coming to the table already pre-approved with a mortgage company.” Nearly all customers want a large walk-in shower, and are ready to give up the tub. The amenities most desired at the Belleville location bear similarities to site-built construction. “This is nearly always a full drywall home. A majority of our buyers purchase the 7/12 roof pitch, and many with walkup attics, which provides storage space without going into the additional cost of a basement,” Meehan said. “Many want the exterior to have bump-outs or dormers. And we’re still finding dark chocolate cabinets to be popular, although 50 percent of the buyers are moving toward lighter colors.”

Indiana Business Shifts to Community Sales Centers There are few street retailers remaining in Indiana, and much of the high-volume business the state sees has

shifted to the community sales center. Adriane DeRose, community manager for Roselake Estates, also runs the Carefree Homes retail operation from the community in Pendleton, Ind., about 25 minutes north of Indianapolis. “The open concept is still something we’re seeing people ask for. The customers want kitchen islands, too, and China sinks and fiberglass tubs,” DeRose said. Though the community does few rentals, inquiries for rentals have been high. And there’s as much interest in purchasing a pre-owned home as there is in the new homes coming into the community. “The pre-owned market is just about as strong as the new market, if not stronger right now for us,” DeRose said. “And I’m seeing customers with better credit profiles recently, too, since midsummer.” DeRose anticipates 2019 will match, if not be a bit better, than last year. MHV Patrick Revere is executive editor for the MHInsider magazine, as well as the MHInsider blog and MHVillager, a lifestyle and resources blog for homeowners and residents. He is an award-winning journalist and writer who has written extensively about manufacturing, real estate, management, t e c h n o l o g y, t h e building trades and the labor markets.

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ADVOCACY

The MH Industry’s Voice in Washington is Strong By Dr. Lesli Gooch

very two years, the political and policy dynamics in Washington change. The 2018 elections returned divided government to Washington, and for the next two years the U.S. House of Representatives will be controlled by a different party than the U.S. Senate and White House. The Manufactured Housing Institute (MHI) has worked to ensure that the manufactured housing industry’s priorities will be well-positioned in this new political climate. No matter which political party is in power, MHI has secured champions across government so that federal rules and regulations support the industry’s efforts to provide quality homes at affordable prices. MHI’s access to Washington policymakers is as strong as ever. This is because the industry produces high-quality, affordable homes — HUD Secretary Ben Carson told Congress that manufactured homes are “amazing” — and MHI has relationships with key policymakers across the political spectrum in the presidential administration, House, and Senate. MHI is keeping the momentum going in 2019, building upon significant progress and successes we have made in Washington on behalf of the industry.

Despite the divisiveness that defines our nation’s politics, the affordable housing crisis is one area where cooperation is possible. The industry is well positioned to be at the forefront of the affordable housing dialogue going forward.

Improving Access to Manufactured Housing Financing One of MHI’s top priorities continues to be bolstering the availability of financing for manufactured housing. To accomplish this, we are focused on reducing Consumer Financial Protection Bureau (CFPB) regulations, helping Fannie Mae and Freddie Mac (the Enterprises) establish robust secondary markets for chattel lending, and championing changes to Federal Housing Administration, Veterans Affairs, and USDA programs to better support financing for manufactured housing. These efforts build upon the successes MHI achieved in the 115th Congress, including the passage of S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection Act.” S. 2155 includes language clarifying that manufactured home retailers and sellers are not considered mortgage loan originators

so long as they only receive compensation for the sale of the manufactured home and do not engage in financing activities. The passage of this important law is a direct result of MHI’s persistent, effective, and strategic advocacy to ensure manufactured housing retailers and sellers are protected from liability under federal consumer protection mortgage rules. Because of MHI’s continued outreach, CFPB recently confirmed in its Fall 2018 Unified Agenda that this language is in effect, without the need for rulemaking. MHI continues to have ongoing discussions with key CFPB staff about federal regulations that limit the availability of credit for manufactured housing. MHI is advocating for CFPB to make immediate adjustments to the “high-cost” thresholds for manufactured home loans under the Home Ownership and Equity Protection Act, so these loans are not improperly designated due to their smaller size. MHI is also working to ensure the Enterprises fulfill their legal duty to serve the manufactured housing market, and MHI has made significant progress with FHFA and the Enterprises continued on next page

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

ADVOCACY continued from previous page

to create a secondary market for chattel financing. MHI has repeatedly called for Fannie Mae and Freddie Mac to begin purchasing chattel loans as soon as possible and for the Enterprises to execute the intermediate steps that are necessary to ultimately purchase and securitize chattel loans on a flow basis. As the process moves forward, MHI will continue its aggressive advocacy work and help the Enterprises develop the policy tools they need to establish robust chattel programs as soon as possible.

HUD Code Regulations Must Support Innovation Manufactured homes are the only form of housing regulated by a federal building code (the HUD Code), and for the industry to move forward, the HUD Code must be up-to-date and support innovation. MHI is well-positioned in Washington to help continue making changes to the regulatory climate for manufactured

housing. MHI has utilized its strong relationships with members of Congress to engage with HUD in many forms. At congressional hearings and in phone calls and letters, numerous members of Congress have raised the importance of reducing the regulatory burdens HUD has placed on manufactured housing with Secretary Carson. MHI even succeeded in having Congress pass legislation directing HUD to revisit its approach to regulating the industry. As a direct result of MHI’s strategy and ongoing engagement, HUD is conducting a comprehensive review of its manufactured housing regulations. In 2019, MHI will work to ensure that HUD can complete its comprehensive review of the regulation of manufactured housing so that rules that are outdated, ineffective, contradictory to statute, or excessively burdensome are corrected. MHI will push for HUD’s immediate adoption of the recommendations made by the Manufactured Housing Consensus Committee and will work to ensure

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that HUD updates the HUD Code and revises its regulation of manufactured housing, so that regulations foster innovation, remain cost effective, and minimize the discrepancies or overlap with state and local building codes. MHI will also encourage HUD to exercise preemption when local regulatory construction standards and zoning policies adversely impact manufactured housing communities.

Successful Representation in Washington Across the federal government, MHI is the industry’s eyes and voice to ensure that any actions are not detrimental to the industry’s momentum in supplying quality, affordable housing to consumers. For example, the Department of Energy’s (DOE) call for information regarding energy conservation standards for manufactured housing was the result of MHI’s advocacy with leadership at the DOE and the administration regarding the adverse impacts of prior proposals on manufactured housing affordability. Due to MHI’s efforts, DOE is reconsidering the framework it uses to regulate manufactured housing. Access to safe and affordable housing is a non-partisan issue. Thanks to MHI’s effective approach to federal advocacy, manufactured housing is well-positioned in Washington. MHI will continue its successful representation of the industry to ensure policymakers support the manufactured housing industry’s work to supply quality, affordable housing across the country. MHV Dr. Lesli Gooch is executive vice president for government affairs and chief lobbyist for the Manufactured Housing Institute. FOR THE LATEST INDUSTRY NEWS VISIT

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COMMUNITY OWNERS COMMUNITY

The MHInsiderâ&#x201E;˘ asked professionals from Illinois, Indiana, Kentucky, Michigan and Ohio for their insights about the challenging and everchanging nature of managing manufactured housing communities.

Ken Fister Suburban Mobile Home Park, Ky.

Katie Hauck Hauck Homes, Dixon, Ill.

Shana Kennedy Parke Place Estates, Elkhart, Ind.

Kenneth Lipschutz HomeFirst, Birmingham, Mich.

Bob Vanschuyver UMH Properties, Ohio

COMMUNITY

L ES S ONS, WISDOM AND INSIGH TS F R OM F EL LOW COMMUNIT Y OWNER S Photos courtesy of Hauck Homes, HomeFirst, Parks Place Estates, Suburban Mobile Home Park and UMH Properties.

What are the biggest challenges you face operating a manufactured housing community in your state? Staying on top of the Fair Housing rules so we don’t mistakenly discriminate against someone looking for affordable housing. Also, keeping current with our state regulations and laws regarding manufactured housing and communities. A resident may be going through a difficult period, as in the loss of their job, and having to decide between working with them regarding their rent or filing for eviction is a concern. Also, if a home is abandoned in the park, titling of the home can become an issue, especially if there is an old lien on the home that should have been removed years ago. Ken Fister, Co-owner Suburban Mobile Home Park, Lexington, Ky.

Some of the biggest challenges we face in Ohio are finding employees, establishing long-term business relationships and continuing education for our employees on changing financial laws and practices. With favorable economic conditions, finding good quality people to manage, operate and maintain our communities can be a challenge. Our employees are expected to rent and sell homes, as well as uphold their community to UMH standards. It is important to find the

right person you can trust to oversee the everyday functions of the community, as well as profit in sales and rentals. In addition, we need to find and establish long-term business relationships with contractors and tradesmen familiar with our industry. This speeds up the process of new home installation, frees employees to be able to work elsewhere in the community and helps ensure we always have new inventory for sales and rentals. Melrose Village in Ohio

With constantly changing regulations, it is always important to make sure regional managers and managers stay in the know. The Ohio Department of Commerce is taking over the licensing of retail sales entities, individuals and communities. In addition, the department of commerce will take over permitting and installation inspections for manufactured homes. We will need to keep our team members up to speed on any changes. Bob Vanschuyver, Vice President and Regional Manager in Ohio UMH Properties

As a manager, the most difficult thing I deal with is personal property taxes on the homes and title transfers. The rules are always changing, and it just gets overwhelming sometimes if you have a bulk of titles to do at one time. Shana Kennedy, Community Manager Parke Place Estates, Elkhart, Ind.

The biggest challenge that we face is making sure that we know the local politicians. It’s so important that we can answer their questions and keep them informed as to how valuable our business is to the affordable housing stock in the state. Educating them on the importance of non-government-subsidized affordable housing is something we try to always stay on top of. Katie Hauck, Owner Hauck Homes, Dixon, Ill.

The biggest challenge we face today is helping our residents identify and secure attractive loans to finance their home purchases. The market for chattel financing is capital-constrained and burdened by a restrictive regulatory environment that has limited the number of active lenders in the sector. My portfolio is concentrated in Michigan, but following the recent acquisition by Green Courte Partners, our venture will continued on next page

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COMMUNITY continued from previous page

continue to acquire, own and operate communities nationwide. So, we need to apply lessons learned and expand the financing options available to our residents across a national portfolio. Our goal is to create a streamlined and efficient home sales experience for our customers and sales team. As we drive more new home sales, we are managing a growing backlog of home orders and installations. The HUD installation guidelines continue to be problematic for our construction teams but have become more manageable as we’ve collaborated with local governments. Kenneth Lipschutz, CEO HomeFirst, Birmingham, Mich.

What major trends do you predict for MH communities in 2019? It seems affordable homes and apartments are increasingly harder to find in our area, and that helps to drive traffic to our park. With the economy doing very well, 2019 could see even more people looking for a reasonably priced manufactured home. Perhaps manufacturers will build a lower-end home with fewer bells and whistles for this customer. Ken Fister, Co-owner Suburban Mobile Home Park, Lexington, Ky.

“Manufactured housing communities are uniquely suited to provide affordable housing to residents at a value unmatched by alternative housing options.” – Kenneth Lipschutz, CEO HomeFirst, Birmingham, Mich.

I think the increased demand for affordable housing will continue in 2019. I would expect to see continued increases in occupancy from new home sales and rental units. Bob Vanschuyver, Vice President and Regional Manager in Ohio UMH Properties

I foresee an uprise in residency for manufactured housing communities due to the mere fact that people are looking for affordable housing. Manufactured homes are the best way to get modern conveniences, ample square footage and a multitude of amenities for a very affordable price. Manufactured

housing communities can offer new homeowners and renters alike a very price-effective lifestyle. They provide community amenities such as fitness rooms, pools, playgrounds and ball courts, whereas a stick-built residential neighborhood does not. Shana Kennedy, Community Manager Parke Place Estates, Elkhart, Ind.

I think as pressure builds for affordable housing, manufactured home communities become more and more acceptable in the public eye, especially politically. I think you’ll see more and more zoning approvals for newer communities. Katie Hauck, Owner Hauck Homes, Dixon, Ill.

Our residents are seeking larger and more upscale homes throughout many of our communities. I believe this is a result of our customers coming from alternative housing and apartment rentals and looking for high-quality homes to accommodate their larger families. Manufactured housing communities are uniquely suited to provide affordable housing to residents at a value unmatched by alternative housing A Hauck Homes community in Illinois

COMMUNITY

options. We purchased a large quantity of new homes across the Green Courte portfolio this year and have been pleased to see a strong appetite for new homes at increasing price points. Kenneth Lipschutz, CEO HomeFirst, Birmingham, Mich.

If you could make one request to MH manufacturers, what would it be?

I would like to see better quality control/final finish. Each year, we spend thousands of dollars repairing manufacturer errors, or, if time allows, requesting their service staff come out and do the repairs. Plumbing, electrical and door installations are our biggest headaches, and we would like to see these issues minimized. Shana Kennedy, Community Manager Parke Place Estates, Elkhart, Ind.

We work closely with the manufacturers to develop better solutions for home installations and to provide continuous service to our new residents after they move into a home. If we can get the factories to engage in more training for the field and installation crews and expand service resources, we could reduce response times for customer requests. This would go a long way to elevate customer satisfaction, which is our focus. We want our residents to be

This would be a request to the manufacturer and the lender of a home placed in a park. If it becomes necessary to repossess a home in a park, allow the park to match the highest bid on the home. I have been asked to waive the rent owed on a repossessed home many times, and it would be nice if they reciprocated. Ken Fister, Co-owner Suburban Mobile Home Park, Lexington, Ky. A HomeFirst clubhouse

I would like to see the manufacturers focus on the servicing of the homes. It is important the quality control check of the home is done prior to leaving the factory, and if service is needed it is done in a timely manner. A better customer experience will lead to additional referrals from satisfied homeowners, which will lead to additional sales. Bob Vanschuyver, Vice President and Regional Manager in Ohio UMH Properties

HomeFirst was recently acquired by GreenCourte Partners

It would be great if they could come up with installation standards and warranties that alleviate the government regulation on installations. It would also save our customers a lot of money on the initial purchase. Katie Hauck, Owner Hauck Homes, Dixon, Ill.

our biggest source of referrals! We would also like the manufacturers to remain sensitive to increasing home prices and be aware that we run the risk of “pricing out” our core customer base. Kenneth Lipschutz, CEO HomeFirst, Birmingham, Mich. continued on next page

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COMMUNITY continued from previous page

What traits do you look for in a good community manager? To be able to communicate with a wide variety of people. To respect everyone they come in contact with and to talk to them and not down to them.

portant thing is to know that it takes a team, not just the manager, to run the community. Without a terrific staff, a community will not succeed, no matter how awesome the manager is!

The ideal manager would be an adept problem solver who is empathetic to our residents and employees while staying focused on management objectives and demonstrating consistent decision-making, aligned with our values and policies. And, of course, a relentless focus on the customer experience. We

Shana Kennedy, Community Manager Parke Place Estates, Elkhart, Ind.

Ken Fister, Co-owner Suburban Mobile Home Park, Lexington, Ky.

A good community manager is a driven, dynamic, multi-faceted individual capable of wearing the various hats associated with community management. A good community manager takes ownership of the community and understands the balance between tenant relations and profitable community operations. Bob Vanschuyver, Vice President and Regional Manager in Ohio UMH Properties

I would look for someone that has patience, is able to make good decisions and think on the fly, be goal-driven and customer-oriented. Problem solving and understanding privacy of information also are important. But the most im-

Suburban Mobile Home Park in Lexington, Ky.

I look for a person who takes ownership of their job as community manager. I would like them to view the community as their own and be respectful and nice to even the toughest resident. It’s imperative that they think like a “landlord” and not like a “tenant”. Self-discipline, controlled emotions and thick skin are also a plus.

look for hands-on team leaders who can quarterback all facets of our operations including resident relations, home sales and installation, customer service, home rentals and inspections. That’s not an easy task, as the operating model for us and much of the industry has evolved to include sales, home building and multifamily rental attributes.

Katie Hauck, Owner Hauck Homes, Dixon, Ill.

Kenneth Lipschutz, CEO HomeFirst, Birmingham, Mich.

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COMMUNITY

Ways to Maximize the Value of Your Mobile Home Community By Kevan Enger Photo courtesy of Zeman Homes

he demand for mobile home park communities is on the rise. Fueled by a shortage of affordable housing in the U.S. and a senior class of baby boomers moving into retirement age at a clip of about 10,000 a day, the need for affordable housing grows daily. A recent report by the National Low Income Housing Coalition revealed a wide disparity between the demand and availability of affordable housing, especially for extremely low-income renters. Mobile and manufactured home communities can be a solution for lower income renters and retirees looking for affordable home solutions. The gap between the existing supply and demand of affordable homes makes well-positioned properties an interesting option for investors, while providing property owners with an excellent opportunity to sell in a hot market. It’s important to note, however, that while a hot market provides an excellent opportunity to maximize sales price, not all sales prices will be maximized. While net operating income (NOI) is essential in creating your community’s base price, perceived value and confidence in the management of the community

will go a long way in reinforcing your negotiating power and ability to achieve your objectives. There are four types of actions property owners can take to increase perceived and real value to new tenants and potential buyers, to maximize their community’s sales price, and to optimize return on investment. • Short-term actions you can implement right now • Long-term actions you can implement over time • Inexpensive steps to increase perceived value • Capital-intensive projects Mobile and manufactured home community owners are busy people, so for efficiency, you’ll find below a combination of actions that will have the greatest impact on optimally positioning your community and maximizing your sales price.

Short-Term Actions Launch your quest toward maximizing price by starting with short-term and inexpensive actions you can implement right now. These actions will not only allow you to improve the visual of your

community’s physicality, they will allow you to increase the perceived value for current and potential tenants. A higher perceived value will open the door for you to increase your rents, and thus your NOI, with the bonus of improving community pride. At the same time, prospective buyers will see a well-managed community that will make for a more attractive investment.

There are four types of actions property owners can take to increase perceived and real value... In my many years as a mobile and manufactured home community specialist, but especially more recently, I have seen very similar parks in structure and infrastructure achieve widely varying rents and offers as a result of their physical and adminiscontinued on next page

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continued from previous page

trative maintenance, sense of community, and general curb appeal. Well-managed and maintained properties achieved higher returns in monthly rents and, at the time of the sale, sales price. Get started by: Enforcing community rules: On my visits to communities across the country, I see parks where many of the rules created to keep the property clear, safe and well-maintained are not being followed or enforced. Take time to review the current rules in the book, update them as needed, and enforce them for a cleaner, safer, and more orderly community. Curb appeal projects: Curb appeal projects are another way you can make a positive impact on your property, contribute to the perceived value of your community, and generate a sense of pride among residents. A few suggestions: • Remove trash and discarded items strewn throughout the park • Trim trees, plant flowers, and add bushes for a welcoming and visually appealing entrance • Pressure-wash homes, walls, and sidewalks to remove mildew and stains • Replace skirting and conduct exterior maintenance • Install or replace signs • Change the name. The names Joe’s Mobile Home Park and Bridgepoint Park, for example, can convey very different images

A higher perceived value will open the door for you to increase your rents, and thus your NOI, with the bonus of improving community pride.

Long-Term Actions After you’ve initiated some of the short-term projects, you’re ready to move on to longer-term and more capitalintensive initiatives. For example: Pave roads: Paving roads can have a big effect on how your property looks and how your residents feel about living there. Adding paved roads is the biggest bang for your buck, as it will deliver a higher return than what you put into it. Build a play or picnic area: Building a picnic or play area can contribute to a greater sense of community and offer a place where neighbors can gather. You also can schedule community activities such as barbecues, field days, or picnics. Be sure 32 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

COMMUNITY

Revenue-Generating Actions There also are long-term, inexpensive, and even revenue-generating actions you can take to sweeten your returns. Increase rents: Interestingly, I have found that many property owners resist raising rents. More often than not, they don’t know what their competitors are charging or don’t think their tenants would be willing to pay more. To solve this, here’s a three-step solution: 1. Obtain market comps to find out what your competitors are charging 2. Apply the 90 percent rule. If your park is more than 90 percent full, you are well-poised to raise rates 3. Start by taking the short-term, inexpensive actions mentioned at the beginning of this article to build the trust and support of your tenants so they are more willing to pay an increase in rates Fix your financials: I have come across many situations where owners have outdated or handwritten books, or don’t have detailed records of the business. Update and formalize your financials and administrative processes to convey a message of confidence and trust, and to let people know that your park is well-managed. Implement a lease with option to buy program: Selling park-owned homes to your tenants through a lease with option to buy program transfers the responsibility of home repairs and maintenance to your tenants, creates pride of ownership, reduces turnover, and makes the park a more attractive asset for financing. It

also will provide you, the park owner, with a corresponding capital infusion from the sale and alleviate your management responsibilities, but allow you to maintain a steady stream of passive income from the land lease. Occupy as many sites as possible: Empty lots can lead to emptier pockets at the time of the sale. Bring in new or used homes to occupy empty lots and either rehab or offer a handyman’s special for vacant homes that need to be rehabbed. The full lots will contribute to a better perception of the property and management. Improve tenant profiles: Now is the time to begin improving your tenant profiles. If you don’t already, start conducting background checks on prospective tenants and disallow felons. There are plenty of people looking for affordable housing, offering you a good pool of prospects that will care for their home and your park.

In Conclusion Now that you have your checklist, you’re ready to start improving your short-term bottom line while positioning your community for optimized profits at the time of the sale. Even more important, you’ll be taking steps to provide an even safer and more pleasant living environment for your tenants, creating a greater sense of community and pride. If you ask me, that’s when you know you’ve maximized your value. MHV Kevan Enger is a partner and manufactured housing director for Capstone MH. He specializes in helping mobile and manufactured home park owners across the country successfully position, market and sell their properties to maximize returns.

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FIRST IMPRESSIONS COMMUNITY

COMMUNITY

Does Your Community Make a Good First Impression? By Ken Corbin Photos courtesy of Zeman Homes

ver the years, the manufactured housing industry has become far more sophisticated. It’s no longer just an inexpensive alternative to owning a home, but the best way to achieve the American Dream of home ownership. Retailers are becoming custom builders, mobile home parks are now lifestyle communities, and our housing is

The demands of today’s consumer are higher than ever. They can virtually go anywhere on the internet and likely find the same home or community you’re offering for less money.

becoming more accepted by consumers and local communities. Thus, the need to constantly change and invest heavily in our companies, communities, and people is critical. The demands of today’s consumer are higher than ever. They can virtually go

anywhere on the internet and likely find the same home or community you’re offering for less money. So, why should they buy from you? What makes you so different? What makes living in your community so special? Today’s homebuyer wants to invest with someone they feel they know, feel they can trust and feel has the capability to service them. As we’re all aware, the purchase of a home is one of the most emotional times for your customer, so feelings, comfort and trust are essential. Differentiate yourself from your competition and give your prospect an incredible customer experience they’ll never forget.

Crucial Questions and Answers As a retailer, can you double or even triple the number of homes you’re currently selling and increase your bottom line dramatically? Yes, absolutely. Is it easy? No, nothing worth having is! As a community, can I develop a sales and marketing strategy to sell more homes going into my park than are leaving? Can I do this in a simplified manner that doesn’t interfere with running my

community? The answer to this question is yes — but to a point. Selling large volumes of homes is a full-time job. Most communities I work with start out utilizing existing staff to handle home sales. As it increases, a full-time sales consultant becomes necessary. As a retailer, will I need to make changes to the way I do business to reach higher sales volumes? Of course, the answer is yes. Do you remember the old proverb that says, “If you always do what you always did, you’ll always get what you always got?” Well, unfortunately that proverb is no longer applicable. In today’s economy, if you always do what you always did, you’ll likely get LESS than you did before. A few years ago, I had the pleasure of meeting John Russell, managing director of Harley Davidson. One of his famous sayings is, “The more you engage with customers, the clearer things become and the easier it is to determine what you should be doing.” The key to success in the housing industry is developing and nurturing personal relationships. Every customer who walks through the front door of continued on next page

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COMMUNITY continued from previous page

your company or community is scared they’re going to make the wrong decision. It doesn’t matter if they’re purchasing an older pre-owned home, a new single-wide or the most expensive custom modular you have available. As I tell customers when working with them for the first time, “Let’s not try and eat the elephant all at once, but just one bite at a time.”

First Impressions Obviously, initial impressions are critical. It begins with the entry of the business, so here is my checklist.

• •

the hours posted clearly for people to see? If a customer comes when you’re closed but can see your hours posted, they won’t be as upset. When that same customer arrives when you are closed, do you have an information box near the front entry so they have something to take home with them? Are the steps and deck areas going into the Information Center secure, clean and welcoming? If not, should screws (and not nails) be used to reinforce and offer a solid foundation?

secure while touring the model homes. At retail sales centers, I’ve used large double halogen lights on 16-foot poles, placed as far away as 100 feet from the models and illuminating up to three homes at a time. They should be on timers, so the expense is minimal but the effect maximum. Many communities use solar flood lights installed in front of single-section homes. They’ve found this light very welcoming to their customers. Of course, also check your street lighting.

Sit Where the Customer Sits Next time you go into one of your sales or community offices, sit where the customer sits; you want to see what the customer sees. If you absorb the surroundings carefully, you’ll begin to notice small, subtle items that can either enhance or detract from the emotional sales experience. Start with the desk or table. Many successful companies have gone to round tables rather than desks, as this is thought to eliminate the “barriers” between salesperson and customer. I would agree; although not every office has room for a presentation table, nor can every company initially budget for that expense.

The Desk • • • • •

How is the parking area? If it’s on pavement, is it freshly sealed and properly striped? If on gravel, are there weeds that are obvious to the eye? Are there areas that need to be freshened up? Are there clean and understandable directional signs asking customers to “Please Visit the Information Center before Viewing Homes?” Our society is aging, so do you have a clearly marked “Reserved Handicap” parking area? Is the “Information Center” (not the office) sign visible and

• Do you have an accessible handicap ramp? • What type of landscaping are you using? • As they walk up to the door, is the handle clean and windows clear? • Are grassy areas cut and neatly trimmed? • Are there flowers prominently displayed in the warmer months? • If homes are near your information center, can they see any trash, wheels, tires, axles or other debris behind the building? If you’re open during evening or dusk hours, display lighting is important. It makes the customer feel safe and

36 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

Let’s start with the typical desk. Is the front of it scratched or dirty, or are pieces missing? What’s on top of the table or the desk? I recommend only five items during the sales presentation: 1. A calculator; where the numbers cannot be seen by the customer. Of course, all the smudges need to be removed from the keys. 2. A telephone 3. A presentation manual 4. A customer specification sheet 5. A desk-side or table lamp As you continue looking around the room, do you see a trash can? It can be a

COMMUNITY

distraction, so make sure it’s not visible to the customer. There’s no need for them to be looking at work you’ve done with a previous customer. Let them focus all their attention on you!

Walls Next, look at the walls. Pictures, letters of recommendation and customer satis-

fan, don’t post anything that reflects your like of a certain team, as your customer may have an allegiance to their rival. Also, sports pictures have nothing to do with making your customer feel comfortable in working with you. What about the floor? Do you see trash, debris or manila folders stacked up in corners? Manila file folders are death. It subconsciously tells your customer

Next time you go into one of your sales or community offices, sit where the customer sits; you want to see what the customer sees. faction, achievement plaques, thank-you notes and certificates of completion should be prominently displayed. Everything should be in frames, with nothing attached to the walls with scotch tape, push pins or thumbtacks. Family pictures are important; especially children and animals. Everyone loves pets and family. If you are a sports

you’re not organized or don’t care enough about your other customers to keep their files put away.

Business cards Don’t try to turn a business card into a flyer. Customers will only refer to your card for contact information, so make it

simple. On the front of the card list your name, post your picture, email address, phone number and mailing address; in that order. The layout of the card, as always, should differentiate you from your competition. Thus, use a vertical layout (top to bottom) rather than the standard horizontal (left to right) format. On the back of the card list your hours and, very important, your days off. Don’t frustrate a customer by having them travel to your model home village only to find it’s your day off. MHV Ken Corbin, an industry consultant, has worked with over 800 manufactured housing communities, retailers, manufacturers and associations. Send him an email at ken@callkencorbin.com for more information.

AEP Ohio Offers Incentives for Built-in Efficiency Looking for a competitive advantage? AEP Ohio offers cash incentives to retail centers/ communities and their HVAC suppliers for new energy-efficient manufactured homes within its service territory through their EfficiencyCraftedSM Manufactured Homes Program. Eligible homes are built with enhanced insulation and heat pumps sized to maximize efficiency. This increases the comfort of your customers—and makes manufactured home ownership even more affordable. For more program details, call (614) 360-9309, e-mail AEPOhio-NMH@magrann.com or visit EfficiencyCraftedHomesAEPOhio.com/NMH.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

JANUARY 30–FEBRUARY 1, 2019 KENTUCKY EXPOSITION CENTER

SHOW GUIDE THE MIDWEST’S PREMIER EVENT FOR MANUFACTURED HOUSING PROFESSIONALS

By Patrick Revere

nyone who’s spent a bit of time with Byron Stroud knows that there are few, if any, manufactured home professionals who have the same energy and enthusiasm to offer the industry and its customers. Stroud is director of community sales for Skyline Champion Corp., the largest publicly traded builder in the business. He serves on the board of directors for the state association in Michigan, and is on the board for the Midwest Manufactured Housing Federation, which organizes The Louisville Show. He serves on the task force of the Florida association’s workforce development initiatives. So, when The Louisville Show organizers picked him to serve as show chairman, the collective industry insiders understood they were in good hands.

The 60th Annual Louisville Manufactured Housing Show

LOUISVILLE SHOW CHAIRMAN

BYRON STROUD Stellar Year LOOKS TO 2019 FOR A

IN HOME SALES

Photos courtesy of Johnston Photography of Gainesville, Fla.

Sixty years makes The Louisville Show the longest running offering in the industry. And it makes an ideal time to celebrate the accomplishments of so many hard-working individuals and organizations nationwide — from builders, to retailers, to service and supply providers. “We’re expecting the largest crowd for The Louisville Show that we’ve experienced in 20 years. And that’s important,” Stroud said. “The show is really reflective of the industry’s growth and vitality. We’re experiencing the most impressive growth nationwide in manufactured housing right now that we’ve seen in the last 20 years. “People who attend Louisville want to see the latest innovations in new homes,” he said. “New designs and new features are on everyone’s mind, and this is really the kickoff for the season. When you show a home here, it’s the culmination of a year of innovation.” Stroud said part of the reason The Louisville Show has been a success is because of the ideal central location for industry professionals in all corners of

2019 LOUISVILLE SHOW GUIDE

a new excitement to the exteriors in manufactured housing,” he said. “We’re going to see homes with front and rear porches, and that brings a huge emphasis to outdoor living space.” This year, The Louisville Show enjoyed its earliest sell-out ever for exhibition space, which “speaks volumes” about the excitement and energy in the industry for 2019. And professional networking, of course, is a mainstay of the show. The Louisville Show is where the deals get done!

Mix of Professional Presentations, Panel Discussions

the country. The Midwest states represented — Indiana, Ohio, Illinois, Michigan and Kentucky — receive a lot of exposure. Attendees are provided four dozen of the latest model homes, and access to more than 120 service/supply exhibitors.

“We have a great mix in product,” Stroud said. “There’s a wide variety of progressive and sought-after features in all of these homes, with a particular emphasis on kitchens and baths. And porches are becoming more a part of our industry all the time. It’s bringing

Dennis Hill and his team from Show Ways Unlimited produce The Louisville Show each year. And this year, industry icon and consultant Ken Corbin, along with MHVillage/Datacomp Co-President Darren Krolewski, managed the programming for professional presentations and panel discussions. “The education seminars to me are an extremely important reason to attend, and really expands our audience,” Stroud said. “And within all the education, products and services, there are myriad networking opportunities.” MHV Patrick Revere is executive editor for the MHInsider magazine, as well as the MHInsider blog and MHVillager, a lifestyle and resources blog for homeowners and residents. He is an award-winning journalist and writer who has written extensively about manufacturing, real estate, management, technology, the building trades and the labor markets.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

instagram.com/thelouisvilleshow/

twitter.com/thelvilleshow

facebook.com/thelouisvilleshow

LOUISVILLE MANUFACTURED HOUSING SHOW • JAN 30 – FEB 1, 2019

Kentucky State Association................................................................ 178 Land Home Financial Services.......................................................... 507 Lousiana Pacific Building Products................................................... 203 Manufactured Home.Loan, Inc........................................................... 140 Manufactured Housing Institute................................................306, 308 Manufactured.home.com................................................................... 144 Manufacturedhomeloans.com........................................................... 142 Metron Sustainable Services, LLC..................................................... 303 MHVillage.com.............................................................................. 115, 117 MHWC................................................................................................. 219 Michigan State Association................................................................ 179 Minute Man Anchors, Inc................................................................... 233 Mobile Home Depot, Inc....................................................................201 Mobile Home Stuff Store, Inc............................................................. 156 Modularhomes.com............................................................................ 146 *Mudmaster, Inc............................................................................ 300 N Tech Industries, LLC, dba Harbor Floors Products.............................................................. 225 NADAguides...............................................................................406, 408 Net-Wired, Inc.................................................................................... 307 Newport Pacific.................................................................................. 229 Next Step Network............................................................................ 404 Nortek Global HVAC............................................................214, 216, 218 NorthPoint Commercial Finance.................................................168, 170 Ohio State Association.......................................................................180 Oliver Technologies, Inc............................................................328, 330 *Panel Processing, Inc................................................................. 508 Park Lane Finance Solutions, LLC..................................................... 509 PayLease.............................................................................................227 Perfect-A-Line, Inc.............................................................................. 152 Performance Equity Partners, Inc....................................................... 301 PFS Corporation dba PFS TECO......................................................... 148 R. E. Michel Company, LLC................................................................ 506 R-CO Products Corporation............................................................... 324 Remote Trax........................................................................................ 132

ABT Water Treatment, Inc.................................................................. 232

*Ace Tire & Axle, Inc.......................................................................150

Active Ventilation Products, Inc..........................................................501

Alliance Credit, LLC............................................................................. 317

American Commerce Bank................................................................ 426

American Insurance Alliance, LLC...................................................... 104

AmRent Resident Screening.............................................................. 226

Bennett Truck Transport, LLC.............................................................424

Blevins, Inc...................................................................................107, 109

Capitol Supply and Service.......................................................302, 304

*Capstone Manufactured Housing.............................................102

Cascade Financial Services................................................................ 315

CIS Home Loans.......................................................................... 131, 133

Cordell International, Inc.............................................................215, 217

Country Place Mortgage.................................................................... 503

Credit Human Federal Credit Union..........................................418, 420

Cutting Systems, Inc.................................. 101, 103, 105, 200, 202, 204

DEHCO, Inc...........................................................................158, 160, 162

Discover Modular Homes................................................................... 138

Donald C. Westphal Associates, LLC.................................................. 221

Dura-Bilt Products, Inc........................................................................327

Electric Eel Manufacturing................................................................. 230

*ESCO................................................................................................166

Everlock Systems............................................................................... 332

First Bank.....................................................................................314, 316

Frog Attachments, LLC................................................................134, 136

Gama Sonic Solar Lighting................................................................ 325

General Supply, Inc............................................................................ 205

Heritage Distributing, LLC.................................................................. 129

HomeCarePlus................................................................................... 326

Illinois State Association..................................................................... 175

Indiana State Association................................................................... 176

*Inter Vac Design Corporation.....................................................154

Jamie’s Interiors........................................................................400, 402

BOOTH #

21st Mortgage Corporation................................................329, 331, 333

COMPANY Kentucky Code.....................................................................................177

BOOTH #

2-10 Home Buyers Warranty.............................................................. 309

COMPANY

BOOTH #

Cocktails and Hors d’Oeuvres will be served

Wednesday, January 30th, 2019 5:00 – 7:00 PM at The Crowne Plaza Hotel

Co-Sponsored by KMHI and the Manufactured Housing Institute

2019 LOUISVILLE SHOW APPRECIATION RECEPTION

You Are Cordially Invited

*New Exhibitors for 2019

Wisely Commercial Realty................................................................. 228

Wisconsin Housing Alliance............................................................... 172

Whitley Mobile Homes, Inc................................................428, 430, 432

WESCO Distribution........................................................................... 502

VMF Homes........................................................................................ 320

Vanderbilt Mortgage and Finance, Inc............................................... 318

Universal Utilities, Inc............................................................... 206, 208

*Unique Fabrications/Weber Products.............................414, 416

*Unique Fabrications/Bennett Truck..................................... Lobby

Triad Financial Services................................................................ 119, 121

Translift Sales & Service, Inc....................................................... 128, 130

Tie Down Engineering............................................................... 207, 209

*Thermo Products, LLC.................................................................319

*Tammac Holdings Corporation................................................. 305

*Superior Axle, LLC........................................................................164

Sunlight Creations............................................................................. 505

Style Crest, Inc.............................................................................125, 127

Shaw Industries, Inc............................................................................ 321

Sedco Pier........................................................................................... 231

Seal Smart, LLC.................................................................................. 504

RV/MH Hall of Fame.............................................................................174

Rustique Enterprises, Inc................................................................... 220

Rent Manager.................................................................................... 224

COMPANY

INDUSTRY TRENDS To keep MHInsider™ readers acquainted with current industry trends, we asked association directors from each of the Midwest states represented at the Louisville Show to answer a pair of questions. Their answers follow...

Frank Bowman Illinois Manufactured Housing Association

46 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

Ronald Breymier Indiana Manufactured Housing Association

William Sheffer Michigan Manufactured Housing Association

Betty Whittaker Kentucky Manufactured Housing Institute

Tim Williams Ohio Manufactured Homes Association

2019 LOUISVILLE SHOW GUIDE

A Word from the State Association Directors Photo courtesy of Zeman Homes and Johnston Photography of Gainesville, Fla.

What are the trends in your state that intrigue you? Land-lease communities are experiencing a renaissance of sorts, with many older operators looking to retire, along with a renewed interest in the asset class by investors seeking higher returns from their real estate portfolios. Since few, if any, new communities have been approved and built in the past 20-30 years, there is a scarcity of communities available for sale that is driving up prices and, unfortunately, rents, which has drawn the ire of residents and the attention of public officials. The influx of new capital into the land-lease community asset class is also stirring conversations about the role of state and local jurisdiction in community management, infrastructure upgrades and even the ability to install new homes in some existing community settings. Due in large part to the demand for investment-grade communities and the need to meet investors’ expectations, we find ourselves having a statewide conversation on housing affordability, which has taken an ugly turn toward rent control legislation. IMHA has been integral in this discussion, testifying in front of a state Senate committee and providing potential solutions — none of which include rent control.

The consolidation taking place in the land-lease community side of the industry also removes many of our past members from participation in association activities. The “new” investors, who often operate in many states and locations, may or may not take an active role in the individual state associations, which negatively affects membership trends at a time when we need them to do their share of the heavy lifting. Frank Bowman Illinois Manufactured Housing Association

“Land-lease communities are experiencing a renaissance of sorts, with many older operators looking to retire, along with a renewed interest in the asset class by investors” – Frank Bowman The majority of HUD-built homes being sold in Michigan are being placed in communities. Many of the smaller and older communities are finding it difficult to accommodate the newer

homes because of aging infrastructure and the limitation of original lot sizes. Replacing older homes with newer homes becomes a difficult proposition for many. William Sheffer Michigan Manufactured Housing Association

There seems to be a trend of more communities reaching out to KMHI for information about manufactured and modular housing. In some cases, there are bad people wanting to bring in bad homes to a city or county. Even in those circumstances, I can educate the officials on today’s manufactured housing and discuss zoning options and policies we can provide to help them include factory-built housing in their communities. In other cases, they are interested in finding out about the industry and how factory-built housing can be a choice. I love meeting officials, showing them today’s homes and providing the resources they need to revise old ordinances. I have been excited to work with Freddie Mac and Fannie Mae to develop secondary funding for manufactured housing and to see the continued on next page

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

2019 LOUISVILLE SHOW GUIDE

continued from previous page

direction that Freddie and Fannie and other federal agencies are going with manufactured housing. Betty Whittaker Kentucky Manufactured Housing Institute

manufactured homes, with lifestyle amenities like walking paths, exercise rooms and upgraded landscaping. Another city is seriously considering using sectional manufactured housing in a land-home development for their expanding workforce. Additionally, the Indiana Housing Development Corp. is looking to use manufactured housing in a few towns as prototype housing for veterans. Ronald Breymier Indiana Manufactured Housing Association

What do you see as the biggest opportunity in the industry right now?

The continued strength of sales, especially in communities, continues to exceed expectations. Also, the interest from many portfolio owners seeking to buy communities in Ohio is at an all-time high in my 23 years with OMHA. Ohio continues to see healthy annual increases in shipments, and that is likely to continue in 2019. Tim Williams Ohio Manufactured Homes Association

We are beginning to see more interest in the use of manufactured homes to solve workforce housing needs. We have one member contemplating building a totally new land-lease community geared toward workforce using only sectional

Factory-built housing is uniquely positioned to help solve the housing affordability issue. Our products provide the quality and affordability many consumers are looking for without the taxpayer subsidies required by government-backed development. It’s our time to shine, but we will require some significant public policy changes in order to do so. At the heart of the affordability problem is the dramatic decline in overall production of housing over the last decade. When the economy shattered in 2008, housing production fell drastically, resulting in a lack of present-day supply. Adding to the problem are the many cities that have successfully developed big-box retail centers and commercial office parks with thousands of new jobs, and no provisions for housing any of the workers at the varying wage levels needed to fill those jobs. Exclusionary housing policies and zoning barriers to affordability that only allow single-family large-lot development, or that block homeowners from adding new accessory dwelling units on their properties, will need to be addressed. Some cities further discriminate against affordable alternatives by flatly prohibiting factory-built housing as an option.

48 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

The lack of affordable options fuels the need for preservation of our existing communities and should drive additional land-lease community development. Frank Bowman Illinois Manufactured Housing Association

I believe it continues to be “the” affordable option for homeownership. We continue to hear the bemoaning of developers and home builders with regards to material and labor costs when building traditional single-family homes. Our biggest obstacle to being the “go to” home source is the state and

of home, SmartMH, energy efficiency and younger adults wanting smaller and greener, the industry has the opportunity to make manufactured housing a viable choice in all communities. Betty Whittaker Kentucky Manufactured Housing Institute

Wednesday, January 30th 9am – 5:30pm: Exhibits Open

Thursday, January 31st

With site-built homes increasingly expensive and interest rates rising, MH is uniquely positioned to offer affordable and quality homeownership to those otherwise priced out of the traditional housing market. Furthermore, with ever-escalating rents, MH communities are a superb alternative to apartment renting. In Ohio, we are experiencing a number of portfolio owners replacing older housing stock with new homes for rentals. I feel the combination of these factors alone will continue to drive growth. Tim Williams Ohio Manufactured Homes Association

local government regulations preventing the placement of manufactured homes due to non-conforming statutes and local regulations. William Sheffer Michigan Manufactured Housing Association

With the attention the industry is receiving on the federal level, now may be the time to work with cities and counties to really make progress in getting manufactured housing in areas of the state that have not allowed manufactured housing in a long time. With the announcement of the new class

9am – 5:30pm: Exhibits Open

Friday, February 1st

9am – Noon: Exhibits Open

SEMINARS WEDNESDAY, January 30th 8AM–8:45AM: State of the Industry

8:45AM–9:30AM: Duty to Serve Update: Challenges and Opportunities for Manufactured Housing 9:30AM–10:15AM: “Hot” 2019 Internet Marketing Trends 10:15AM–11AM: Buying Products that Sell

THURSDAY, January 31st 8AM–8:45AM: Chattel Financing in Today’s Market

The biggest opportunity is also our biggest challenge: zoning. While we are seeing more interest in our quality-built manufactured homes in some areas of the state, we also have some small towns that are trying to ban all manufactured homes from their city limits. This is outright discrimination. So, the opportunity is to fight these unjust ordinances to allow greater acceptance of our HUD-code manufactured homes. We are working with the Indiana University Kelley School of Business to study zoning and land-use issues, with the idea of developing more equitable application for manufactured homes at the state and local level. Ronald Breymier Indiana Manufactured Housing Association

SHOW HOURS

8:45AM–9:30AM: Manufacturer Panel – Today’s Hot Trends 9:30AM–10:15AM: Boom! The Next 10 Years

FRIDAY, February 1st 8AM–8:45AM: Six Issues Eating Companies Alive

8:45AM–9:15AM: Best Practices-Sales, Image and Presentation

THE SHOW The 2019 Louisville Show Show Sponsored is By: The Midwest Manufactured Housing Federation including its five member organizations: • The Illinois Manufactured Housing Association • The Indiana Manufactured Housing Association • The Kentucky Manufactured Housing Institute • The Michigan Manufactured Housing Association • The Ohio Manufactured Homes Association

The Louisville Manufactured Housing Show is produced and managed by Dennis J. Hill. MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

INDUSTRY

MANUFACTURED HOUSING INDUSTRY UPDATE

2018 Year In Review: National Initiatives Help Industry Thrive By Dick Jennison Photo courtesy of Zeman Homes

he manufactured housing industry had a great year in 2018. When final shipment numbers are released, the industry is poised to have produced about 100,000 homes — showing the momentum and opportunity the industry has to usher in a new era for manufactured housing. As the only national trade association representing every segment of the factory-built housing industry, the Manufactured Housing Institute (MHI) helped the industry seize growth opportunities in 2018. Together, we are setting new standards in excellence so that the industry can continue to help an increasing number of families achieve the dream of homeownership. In 2018, MHI delivered tangible value and results for its members so they could stay ahead of the momentum. MHI facilitated numerous networking opportunities, including member-only meetings and industry-wide events. MHI created opportunities for members to learn about the latest topics impacting the industry by presenting engaging speakers and panels, offering educational programs and conducting cutting-edge research. In addition, MHI made it possible for the industry’s collective voice to be heard so that policymakers at the federal, state and local levels partner with us to help the industry prosper.

Growth As the number of homes produced has increased, the industry has welcomed new community operators, retailers and suppliers. Due to the value of MHI membership, for the fourth consecutive year MHI’s membership has grown (almost 900 corporate members). Throughout 2018, MHI helped facilitate productive

“Together, we are setting new standards in excellence so that the industry can continue to help an increasing number of families achieve the dream of homeownership.” – DICK JENNISON opportunities for industry participants to come together and make worthwhile connections. Event attendance doubled 2018 projections, showing the confidence and excitement our members have for the industry.

Education and Research Being “in the know” and understanding what trends are taking place are key

50 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

business growth strategies, and in 2018 MHI expanded offerings to ensure our members had the tools and resources necessary to succeed. MHI facilitated panel discussions and secured prominent speakers from the Trump administration to educate and inform members during events throughout the year. MHI created a new webinar program to continue to offer quality education and information to members in between events. Additionally, MHI created an online learning system for manufactured home installers and Accredited Community Managers, conducted 24 in-person education seminars and held Fair Housing training and webinars for hundreds of people in member companies and industry associations. In addition to these educational programs, MHI’s newsletters, alerts and staff participation at industry events kept members apprised of current events and opportunities relevant to the industry. MHI also is at the forefront of cutting-edge industry research to help members better understand market trends, consumer preferences and growth opportunities. MHI produced original research assessing how manufactured housing can help emerging segments of potential homebuyers who are financially limited by the price point of a new site-built home. Through

2018 extensive research, MHI has learned the needs, preferences and attitudes of these homebuyers and confirmed that a substantial opportunity exists for a new class of manufactured housing. The findings of this research resulted in an industry effort to introduce a new class of HUD-Code home, designed to be indistinguishable from site-built homes in appearance and performance at a more affordable price.

Consumer Outreach and Advocacy MHI expanded consumer excitement and enthusiasm for manufactured housing by amplifying our presence across media outlets in 2018. More than 660,000 people viewed our content on Twitter, and an average of 250,000 people per month engaged with us on Facebook. We also had 1,085 positive story placements in newspapers across the country. Through these channels, we change the perception of manufactured housing and reaching more people than ever before. MHI’s advocacy efforts in Washington were unparalleled, and our support from policymakers is stronger than ever. In 2018, MHI conducted over 500 meetings with members of Congress and administration officials, and coordinated more than 6,000 meetings, phone calls, emails

and letters between MHI members and policymakers, to educate Washington leaders about the importance of manufactured housing in addressing the affordable housing shortage and the need to alleviate regulatory burdens that are hindering the industry. We achieved passage of bipartisan legislation to help consumers access manufactured housing financing, and helped make significant progress on the efforts of Fannie Mae and Freddie Mac to serve the manufactured housing market. We also secured a comprehensive review of all manufactured housing rules and regulations at HUD, and when the process stalled, our champions in Congress contacted HUD to expedite the review. MHI members testified before Congress and participated in high-level meetings at the White House, HUD, the Bureau of Consumer Financial Protection and the Department of Energy. Additionally, senior administration officials, including HUD Secretary Ben Carson, addressed members at MHI events. MHI’s successful advocacy extended beyond Washington to states and localities. MHI reviewed 13,866 state bills, with 14 states passing laws drafted by MHI. By keeping our state association partners informed, we had boots-onthe-ground in 38 states supporting our advocacy efforts.

INDUSTRY

Continuing Momentum in 2019 2018 was an exceptional year of growth for the industry, and 2019 promises to be even better. We are planning more high-quality and timely networking, education and research opportunities. MHI is laying the groundwork for a successful rollout of the new class of manufactured homes, and continuing to focus on ensuring policymakers at the federal, state and local levels support the industry’s efforts to offer quality homes at affordable prices. We will continue to elevate awareness of manufactured housing so that more consumers and policymakers see that manufactured housing is “amazing,” just like Secretary Carson said at a recent congressional hearing. With a successful 2019 taking shape, imagine how much more effective the industry could be if we spoke in a unified voice. I invite all members of the industry to join forces with MHI in 2019 to show a united front and keep the momentum going. MHV Dick Jennison is president and CEO of the Manufactured Housing Institute, the only national trade association that represents every segment of the factory-built housing industry.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

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FAIR HOUSING

GETTING SERIOUS about FAIR HOUSINGAND ADA COMPLIANCE By Donna Rishel

f you are a land-lease community owner or part of the management team, you would have to have been hibernating to not know that Fair Housing Act and ADA issues have rapidly become serious when it comes to the financial health of your operation. The question is, “What are you doing about it?” Based on what we are seeing, many are doing very little, and

often what is being done is dangerous because of the lack of a professional and formal approach. Many times this is because ownership really doesn’t know what needs to be done. The first step in the process of assuring compliance with the acts is for senior management to create formal written policies for the organization. Once the

policies are committed to paper, the board of directors or partners or owner must review and concur with the action documented. The policies must contain the beliefs and attitudes of the entity in regard to complying with Fair Housing and ADA requirements. The second step is for the organization to create formal written procedures to assure the aforementioned policies are actually going to be accomplished. This will typically be a very long and specific document laying out step-by-step procedures and specifying who will be responsible for actually doing the work. This should result in a formal, written policy and procedure manual. This manual should be a “living and breathing document” that is referred to constantly by both management and the personnel responsible for assuring compliance with local, state and federal laws. Each employee should have access to their own copy and should be referring to it whenever they are uncertain how to proceed. For operations with multiple locations, be aware that these manuals often need to be different from location to location. continued on page 56

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UMH PROPERTIES, INC.

A PIONEER IN MANUFACTURED HOUSING CONGRATULATIONS TO EUGENE W. LANDY, CHAIRMAN OF THE BOARD

Celebrating

years

Est. 1968

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As a publicly traded REIT (NYSE:UMH), we have been providing quality affordable housing since 1968. Our portfolio provides recession resistant qualities, reliable income streams and the potential for long-term value appreciation. •

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FAIR HOUSING continued from page 53

State and local ordinances create different requirements in different areas. Certain decisions will need to be made by top management prior to some sections of this manual being finished, especially in regard to the recently emerging issues of “disparate impact.” A decision needs to be made in two areas: criminal background checks and utilizing credit checks in the decision-making process. Regarding the use of criminal background checks as part of deciding who qualifies for admittance, a community has two choices. They may decide to forgo running such checks and admit people to residency regardless of their The third step in the process is to insticriminal history, or they may continue to tute a formal employee training program run such checks and use the information to assure that employees charged with in their decision-making process. If they utilizing compliance procedures actually decide to continue doing this, recent understand what is expected of them court rulings make it necessary to obtain — and how they are to accomplish it. data from authoritative sources that can Like all compliance training, employees be used to make decisions in the spirit taking the training need to be adminof the court decisions. It is no longer istered written tests so that the trainer, acceptable to turn down everyone with and senior management, know where any criminal history. Rather, any turnindividual attention is needed. This also down must be based on a “reasonable helps document the seriousness of the expectation” that the organization when it person being turned comes to complying Like all compliance training, down will represent with laws, rules, regemployees taking the training a highly likely threat ulations and letters need to be administered written to other residents or of instruction. tests so that the trainer, and staff, or their property Particular attensenior management, know where or the property owned tion should be paid individual attention is needed. by the community. to teaching the imThat means that a portance of employee decision must be made to either forgo attitudes when fulfilling their responsicriminal background checks altogether bilities in front of prospective or current or to invest in an authoritative and residents. More lawsuits have been reputable source of information. This is created by employees saying the wrong obviously a major decision and it needs to thing, or even their tone of voice, than be made prior to the creation of the Fair almost any other issue. This is especially Housing/ADA manual. true when dealing with ADA requests for A similar decision must be reached reasonable accommodations. regarding the use of credit information All community personnel need this as part of the resident screening process. training. I am aware of at least one Either the community forgoes using such expensive lawsuit that started with a information altogether, or a very formal resident employed part-time to mow written standard must be created. This is grass making an unfortunate comment going to require reputable guidance and that was overheard by another resident reference information to create. — a comment that cost the commu56 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

nity considerable money before the situation was resolved. The fourth step is the selection, appointment and training of a chief compliance officer. This person must be formally recognized by upper management in writing and given the necessary power to assure the success of the community’s compliance efforts. Larger organizations might have a chief compliance officer in the home office, and may also need compliance officers reporting to them in each community. If your organization already has a compliance team for other compliance issues, it might only take some additional training to fulfill this step. The fifth and final step is to set up a plan for at least annual formal audits of the system, to make sure it is doing the job it was intended to do. If mistakes or errors are found, then written directions for correction need to be included in the audit report, and a follow-up audit of those corrections will be necessary. MHV Donna Rishel is Rishel Consulting Group’s director of compliance issues a n d t ra i ni n g. A certified compliance trainer, she oversees all consulting and customer employee training for Fair Housing, ADA, and a variety of other issues.

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Every January, The MHInsiderâ&#x201E;˘ magazine for manufactured housing professionals strives to bring readers the latest and most relevant trends, offerings and products for the coming season. In researching our annual trends piece, we had conversations with dozens of sources from a variety of manufacturers. We asked what new offerings they could point to that came from customer need, whether that customer is a homeowner or home seller. After all, each one of us is in the solutions business. And each new model at The Louisville Show has that signature mark that is an important step up in lifestyle offering, home efficiency or general comfort.

So take a look, prepare for what youâ&#x20AC;&#x2122;ll see in Louisville, and get ready for a great sales season!

TRENDS / INSIGHTS

CHAMPION HOMES Ups the Ante with Ultimate Kitchen Series Ultimate Kitchen 3 continues the offerings that have built

a reputation of sleek design and cutting-edge amenities. The latest edition provides more innovation, from its European-inspired industrial styling to its state-of-the-art conveniences. UK3, as it’s come to be known, features a cooking station equipped with a stainless steel slide-in range and easy to access front controls, a stainless steel backsplash with folding chrome utility racks, and a slim, Euro-style range hood. “They way we designed this package allows us to be very flexible. It can go into any home, any size, any configuration. We can make all of these beautiful new features work to the greatest of their ability in the space the customer most desires,” said Roberto Kritzer, Skyline Champion Corp.’s vice president of design. “We are working toward implementing this new kitchen package in the newest models each day,” Kritzer said. “This kitchen goes into manufactured homes, modular homes. We’ve already put it in park models and community series homes.” 62 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

Sleek Lines, Stainless Styling Goes Beyond Appliances Champion floats stainless steel shelves for added storage space, as well as a raw, utilitarian look that contrasts nicely with the warmth of the Shaker-style cabinetry. The look continues its blend of texture and color with clean lines by assigning modern cabinet pulls, glass subway tile backsplash and stainless steel appliances from Whirlpool. “I’m excited about the all-new UK3 that our design team has created. They have integrated several trending features into this design that new homebuyers are looking for,” said Mark Yost, Skyline Champion’s executive vice president. UK3 boasts improved utility through ample storage space in the cabinets, drawers and cubbies. LED accent lighting behind the frosted glass of overhead cabinets opens the room with subtle hues that showcase the profile of nicely stored stemware. And, what would the offering be without that amazing farmhouse sink?

TRENDS / INSIGHTS

Photos courtesy of Champion Homes

“You will see features that really have only been seen in upper-scale site-built homes … recessed LED mirrors, super islands, pot filler sink,” Director of Community Sales Byron Stroud said of the plumbed-in flex-neck faucet. “It reaches over the range so you can fill a large pot without having to carry it.” The sink also has a designated straining basket, drying rack and cutting board. It contains a protective bottom rack to help prevent scratches. And the focal point of the sink is the black and brushed nickel faucet that provides the flex neck user experience.

Kritzer said “less is more” remains at play, despite the introduction of so many new features. “ We wa nted to keep that open feel. The stainless steel shelves do this and the nice blend between contemporary and modern, and it works very well with the overall theme of clean lines and an open feel,” Kritzer said. “We managed to maintain the feel we wanted, but create a look that you really only have seen in very expensive kitchen configurations. “The response has been phenomenal.” continued on page 66 MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

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ADVENTURE HOMES Unveils Nevada Series Adventure Homes, a manufacturer based in Garrett, Ind.,

plans to use the Louisville Manufactured Housing Show to introduce its Nevada Series of homes to the industry. General Manager Rich Rice said the Nevada Series is for people who “want to get the high-end look without the high-end price.” The Nevada homes will include a drywall finish, which is trending for buyers who are interested in the more traditional site-built residential look. “You won’t find anybody who will offer a drywall product as inexpensive as ours,” Rice said. 66 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

He said homebuyers these days want the affordability of a manufactured home but with more of those same high-end features common in a site-built home. Hardwood cabinets, painted finishes, high ceilings and a variety of carpet and wall color top the list. “The more we can mimic site builders, the better our sales will be,” Rice said. “It’s almost like we’re taking the mobile home out of the house.” However, some sales truisms are unchanged, he said. Kitchens and bathrooms always sell houses, for example. But changing customer expectations push manufacturers to add features like white and gray cabinetry.

TRENDS / INSIGHTS

Photos courtesy of Adventure Homes / Johnston Photography

“There’s a quote: ‘Gray is the new beige,’” Rice said. “Not that everybody wants it, but it should be represented in your offerings.” Contemporary home buyers like an abundance of windows throughout the house. Many fall in love with a welcoming entrance, which can include bold accent colors, sidelights and transom windows over the door, he said. There also are evolving ideas about use of space. Bedroom space often was sacrificed in the past for larger dining and living rooms. But now larger bedrooms are in vogue. In response,

designers are finding ways to maximize space in the home’s communal areas — installing an eating island and removing the dining table, for example. Parents also want “bonus space” in the house — a place they can send their kids to get some continued on page 70 peace and quiet, Rice said. MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

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TRENDS / INSIGHTS

continued from page 67

FLEETWOOD HOMES Looks Toward Clean, Simplified Designs Where Fleetwood Homes are manufactured, builders

are working on simplified designs that have a clean look and are easy to maintain for a new home owner. Those design decisions will show up in the company’s 2019 models, including those on display at the Louisville Show. “I think you’ll see this year, not only in our product, but with the industry backlog, the homes have gotten a bit simpler,” Fleetwood Homes National Design Manager Russell Bratcher said. As an example of simplification, last year Fleetwood brought a three-box modular home to the Louisville Show. This year they’ll have a two-box mod. It’s a little easier to build and a little easier to set up. It’s also easier to maintain. 70 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

“We’ll have straight-line cabinets, more clean lines, like a craftsman look in the molding rather than those heavy profiles in crown molding and such,” Bratcher said. “On our products we are going back to more of a straight-line look that’s easy to install and will have fewer if any service issues.” Vintage looks with a combination of matte and shiny finishes will create some “eye candy,” he said. Improved wood grains in linoleum flooring have made its use much more common. And greens and blues are coming back to dominate the color schemes, Bratcher said. “Large-tile showers are still trending, and large, wide windows throughout add some pop, too,” Bratcher said.

TRENDS / INSIGHTS

Renderings courtesy of Fairmont Homes/Cavco

Cabinet colors continue to trend toward lighter, with whites and grays. There is less of the hardwood look with browns and cherry color. “We’ll still mix some of that in, but as an accent rather than a whole,” Bratcher said. “It’s all about mixing the colors for texture. Back in the day, if you had white appliances, you would have all white appliances. But the design approach today is more with thoughtful mixing and matching of, say, stainless and black.” Fleetwood Homes in Lafayette, Tenn., will show three homes at Louisville, including a single- and multi-section home from the Sandalwood line. Fairmont Homes, another builder under

the Cavco family of brands, will show one multi-section home, one single-section home and a modular model. Bratcher said energy is high in the industry, including among the builders and retailers in his network. “As a company, we’re anticipating continued growth,” he said. “When business was tough, we were doing more customization. We were more willing to move a window or a door to sell a home. But the orders have been so high, and we anticipate them going up again in 2019. We’re really working on that efficiency in production.” continued on next page MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

TRENDS / INSIGHTS

continued from previous page

CLAYTON HOMES Gets More Design-Intensive for 2019 Flex space has become a primary initiative among design-

ers at Clayton Homes, which operates 40 manufacturing facilities nationwide. “We have this concept toward a flex space in floor plans. This is a space that’s not designated as a bedroom or anything else,” said Clayton Homes Lead Designer Ashley Skowron. “Some people might make it a bedroom, but it also may be a craft room or office, or playroom for the kids.” Skowron said Clayton has begun to emphasize a more centralized, team approach for design decisions, and that part of that initiative is traveling a lot, touring facilities and meeting with retailers in most markets. “The flex room is something that retailers really have done well with,” she said. “People say it’s great for the kids ... to have a den, or extra space from the main living area, but when the parent becomes an empty nester, you can repurpose the room for another need.” 72 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

And while the farmhouse look remains relevant for many builders and buyers, Clayton is finding ways to regionalize the aesthetic. “We have five or six different farmhouse-style homes right now rolling through different facilities,” said Corporate Communications Manager Audrey Eason. “All drywall, hard surfaces, big open windows, kitchen island, stylistic light fixtures, shiplap and other texturing. “So you have plants that supply a particular region and they can stylize it in a way that really fits the culture, the expected look for that region,” she said. “Every region has its own farmhouse look.”

Modern Architecture, Style Choices On the Rise Skowron points to NXT Homes, a new series out of Athens, Texas, as an indicator of design preferences steering toward more modern looks.

TRENDS / INSIGHTS

“That home follows suit, with the light and bright cabinets and natural oak color trim, the increase in linoleum,” she said. “The NXT Homes models really are pushing forward the trends we may see take hold during 2019.” Each home uses canned lighting, for instance, rather than decorative globe lighting. “There will be more shiplap wall board, open shelves, marble surfaces, bold colors, a bit of brushed brass in the mix,” Skowron said. “Low maintenance products are something we are always mindful of, for ease of use and lifestyle improvements.” Technology comes to play in the new models too, particularly those with modern features. The Clayton Series homes and the

Photos courtesy of Clayton Homes

NXT Homes all will be appointed with ecobee smart thermostat systems, for instance. Some will have smart doorbells and builtin surround sound. “The same design intent typically goes in both single- and multi-section homes, too,” she said. “We take features out of one home and can push it into a different floor plan, which includes a powder room, his and hers closets, flex space … all of these features are in the single-section as well as the multi-section home.” MHV MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

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INDUSTRY PROFILE

Mary Jane Fitzcharles LEADERSHIP GAINS FOOTING IN

WITH OHIO’S LARGEST HOME BUILDER By Patrick Revere Photos courtesy of MHE Inc.

ary Jane Fitzcharles, CEO of Manufactured Housing Enterprises Inc., has doubled the size of the family owned business since 2014, which was a pivotal time for the home builder and the family. Built up from farmland beginning in 1965, Fitzcharles’ father, Jim Newman, was the catalyst until his untimely death in 2014. Waiting in the wings was his daughter, who had long worked for Ohio’s largest manufactured home builder, but only reluctantly saw herself as the organization’s leader. “He really was preparing me to run the business, and I never realized it,” Fitzcharles said of her father, with whom she enjoyed a loving and redeeming relationship. “When dad passed, I not only lost a father and a boss, he was also a best friend. Dad and I were very close. “I never looked at it in a way that I would or wouldn’t run it,” she said. “I took each lesson that he taught with the idea that I was a lucky recipient of his knowledge.” Fitzcharles grew up at the MHE plant. Literally, the family home with all nine kids was located in front of the business until 1971, when they moved to a different house. The original home became the “curtain shop,” where linens were made by Mary Jane’s grandmother for the homes they built. Mary Jane started working at the plant in 1980, sweeping and cleaning, mowing the yards, painting shelves and baling scrap. She began work in the office when she was a freshman in high school, worked each summer, and upon graduation in 1984 started full time. “I worked in several different areas, just going wherever anyone

Daughter of Founder Claims Succession of MHE Following Passing of Jim Newman

76 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

INDUSTRY PROFILE

needed me. I worked in HR, service, parts, answered phones, filed,” she said. “I moved around and got a little taste of a lot of different areas and then I was transferred to the upstairs offices to be dad’s secretary, to be the office manager, and work in our accounting department.” Mary Jane’s education was attending a vocational school during her high school years and being taught by her father. “It seemed like every day there was a new lesson learned,” Fitzcharles said. “It has always been a conversation piece at work that being taught by Jim Newman was better than any college education you could get. The hands-on

education he provided has been priceless to all of us at MHE.” Jim never attended college, and was very successful in business. A college education was not important to him or necessary for any of his employees, Fitzcharles said. All nine of the Newman kids worked at the plant at one time or another. Mary Jane’s sister, Charlie, continues to work in quality control and dispatch. Still, Fitzcharles at one point took on added work, for a time, beyond her father’s knowledge. “I went to work for a trucking company, dispatching four hours a night

without telling him. I needed more money,” she said. “But when they offered me a promotion to manage the terminal and go full time, this would conflict with my work hours at MHE so I had to tell my dad ... and he gave me a raise to $10 per hour.”

Taking the Leadership Role with MHE MHE produced more than 1,200 floors in 2018, an uptick of about 20 percent from the year prior. In that mix, 45 percontinued on next page

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INDUSTRY PROFILE

continued from previous page

cent are single-section homes, 38 percent are multi-section, and 17 percent of what the company builds is modular. “We build five floors a day, working Monday through Friday. I am a big believer in family time, so we don’t have our people work on Saturdays or Sundays,” Fitzcharles said. MHE employs 150 workers. “From the weekends when I was little, we would have to go through and clean the shop, sweep and make sure the place was in good shape for Monday when the workers came back in ... Now, each department is responsible for its own cleanup. How the process has changed and the homes themselves have changed over time,” Fitzcharles said with a laugh. While most of her experience prior to her father’s death was in accounting, the last four years have been a rush of learning the production and sales side of the business. “If I had it to do over and could pick the office or the factory, I wouldn’t have

“ I can’t say I ever really thought about going anywhere else. I’ve always really enjoyed my work. I like the challenge and it’s great to come to work every day. But did I ever think I’d be where I’m sitting today? Never.” – MHE Inc. CEO Mary Jane Fitzcharles

changed it. But I would have spent a little more time in the production facilities,” Fitzcharles said. “Learning the finance side of the business in detail first has been very good for me and for all of us at MHE.” However, she credits Vice President Nathan Kimpel and several other key employees at MHE for their patience and the education they’ve provided her during the leadership transition.

“I have such an amazing team with me,” Fitzcharles said. “They all have been very good to me, and it’s really humbling that so many people stood by me and have helped to make MHE a continued success. I don’t think it could have happened without the good Lord and so many people on my side.” continued on next page

continued from previous page

MHE Homes in the Production Environment The MHE facility is comprised of more than a dozen structures on 80 acres of the original property, where her father originally sold cars. He also sold used mobile homes, but decided it made more sense for him to build new homes. “He sold used mobile homes and thought, ‘Gosh, if I can sell used mobile homes, I can build new ones.’ He built Plant No. 1, became incorporated and started building new homes,” she said.

A Business About Family Mary Jane Fitzcharles and her husband Terry have two sons and six grandchildren. Throughout the course of her day, she has her mind on family. She thinks about her childhood, her father, about the families of MHE employees. And, of course, she thinks about the families who will buy and live in MHE homes.

“Dad was a very positive person and he taught all of us that you have to keep a positive attitude. He was always a believer in no-debt, and we’ve been able to sustain that, which I feel good about. He always said if you take care of the little problems, you won’t have very many big problems. I have a good relationship and an ‘open door’ policy with our employees, and the dealers know they can call me anytime. I feel communication is an important piece of the puzzle at MHE.” She said she attended The Louisville Show for the first time in about 2009, and her father urged her to go again at least one more time. On a normal year, she would have stayed back at the office and kept things running while the others were at the show. “The year before he died he told me I needed to go to the show in January,” she said. “They always say that people kind of know when they’re going ... and then that following May he was gone.”

INDUSTRY PROFILE

While she continues to verse herself on the nature of production and sales, Fitzcharles has goals of her own. Goals that would make her father proud. “It was a real challenge when Dad passed away to take over that part, but I jumped in with both feet. We have a great team out there and they’ve helped me tremendously,” Fitzcharles said. “I want to continue growing our business. Since 2014 we’ve doubled our production here, and I want to continue with that pace or more. But more so, we need to make sure we continue to make a highquality, affordable product and provide a great place to work.” MHV Patrick Revere is executive editor for the MHInsider magazine, as well as the MHInsider blog and MHVillager, a lifestyle and resources blog for homeowners and residents. He is an award-winning journalist and writer who has written extensively about manufacturing, real estate, management, technology, the building trades and the labor markets.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

THE ALLEN LEGACY ™

Classified Marketplace

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Welcome our new Marketplace section of the magazine. Whether you’re advertising employment opportunities, communities for sale, services, or recently financed deals, The MHInsider™ Marketplace puts your classified ad in the premier news source for industry professionals. To place your ad, call Matthew O’Brian at (877) 406-0232. EMPLOYMENT OPPORTUNITIES General Manager Existing manufactured/modular home dealership located south of Pittsburgh requires a dynamic, self-motivated business team builder. The state of the art UMH Sales Center has seven professionally decorated, climate-controlled model homes. This high traffic dealership is near the intersection of Interstate 70 and state Route 51 less than 30 minutes from downtown Pittsburgh. UMH Sales and Finance is a subsidiary of UMH Properties, Inc., a publicly held company listed on the New York stock exchange. WE OFFER: Earning Potential – Excellent base salary, commissions, bonuses and trip awards. The sky's the limit! Comprehensive Benefit Package Medical, dental, 401K, vision and voluntary insurance benefits Paid Time Off – Paid PTO and holidays Performance Incentives – We offer incredible rewards for our top performers – All-inclusive beach resort trip! EXPERIENCE: The ideal candidate should have a proven track record of managing a successful manufactured/ modular home dealership. Areas of expertise should include: • Sales • Financing • Land home packages • Construction and installation management SKILLS: • Ambition and drive • Strong verbal skills • Dependability • Ability to work with a team • Great phone skills • Organized time management • Professional presentation CONTACT: bobvanschuyver@yahoo.com or by phone at (330 )904-1309 Visit us at: www.umhsalescenter.com UMH Properties, Inc. is an Equal Opportunity Employer UMH Sales and Finance, Inc. NMLS 259385

Water Meter Reader/Technician Infinity Billing Enterprises is looking for Meter Readers. You will read water meters in mobile home parks and apartment complexes throughout Michigan. Meter Readers are a vital part of the success of our company and often are the “face” of our organization. No experience necessary. We will provide training! Meter Readers work in rain, snow and extreme heat. The job requires a great deal of physical activity: • Brisk walking (5-10 miles daily) • Bending and stooping • Squatting and kneeling The Meter Reader role requires critical thinking, independent work, solid communication and reporting skills. Meter Readers are trained to complete additional tasks other than reading meters. These tasks may include meter repair and troubleshooting, past due collections, shut offs and restoring water service to resident homes. For more information, call 248-786-2114.

™

Reach Over 30,000 Manufactured Housing Professionals in Print and Online The MHInsider™ is a trusted resource that manufactured housing professionals choose to stay abreast of industry developments and get the information they need to make informed decisions.

To advertise, call:

1-877-406-0232 HURRY! DEADLINE FOR THE MAY/JUNE ISSUE IS FEBRUARY 22, 2019!

property type. First and foremost is the increasing variety of shelter types found on rental sites in land-lease communities, such as mobile homes, manufactured homes, modular homes, park model RVs, RVs for a season, and stick-built homes constructed on site to imitate manufactured homes. And, after a two-decade hiatus, use of new manufactured homes as rental units on site has returned in select housing markets. Furthermore, mixed-use land-lease communities have become increasingly common, as portfolio players routinely acquire RV rental sites along with MH rental homesites. Yet another recent phenomenon has been the steady, albeit slow in volume, conversion of privately owned land-lease communities into resident-owned (often cooperative) communities. Along with this enhanced sensitivity to homeowner/site lessee needs, there has been an emphasis on the importance of federal Fair Housing regulations, especially in regard to the presence of service and support animals. So, there you have a summary of the big trends. Where will we go from here? That’s a continuing focus of MHInsider magazine and this column! MHV George Allen is administrator of COBA7, a division of GFA Management Inc., dba PMN Publishing. He has owned and fee-managed land-lease communities since 1978. He has authored all the “books in print” relative to manufactured housing and its unique realty asset class. Honored by MHI as Industry Person of the Year, Allen also is a member of the RV/MH Hall of Fame. He’s also been designated a Certified Property Manager-Emeritus and Manufactured Housing Manager-Master. Allen is a retired U.S. Marine lieutenant colonel, having served a combat tour in Vietnam, with active-duty service during Operation Desert Storm. He and his wife Carolyn have two adult children, six grandchildren and two great-grandchildren. Call him at (317) 346-7156, or email gfa7156@aol.com.

MHINSIDER.COM • JANUARY 2019 • MHINSIDER™ |

THE ALLEN LEGACY

The Last Decade Has Seen a Profound Paradigm Shift By George Allen, CPM Emeritus, MHM-Master Photo courtesy of Zeman Homes

or the first time since 2009, manufactured housing is showing clear signs of returning to shipping 100,000, then 200,000 new HUDCode homes per year! How so? In today’s gig economy, manufactured housing and landlease communities display the vitality and flexibility needed for housing success on the national scene. Here are the trends that have brought us this far into the 21st century, and that continue to guide product growth and popularity. In place since about 2009, the paradigm shift profoundly affecting HUD-Code manufactured housing and its realty sector, land-lease communities, is characterized by the major shift in housing distribution away from sales by independent (street) retailers to new home sales occurring within land-lease communities. How significant is this shift? During 2009, 24 percent of new HUD-Code homes were shipped into land-lease communities. By 2015, that volume

had increased to more than 40 percent. That’s led to consolidation in both sectors: 25 major housing manufacturers in 1977, but now just the “Big 3-C firms” (Clayton, Cavco, Skyline

In today’s gig economy, manufactured housing and land-lease communities display the vitality and flexibility needed for housing success on the national scene. Champion) control 80-plus percent of national market share, plus smaller regional producers. On the community end, thousands of sole proprietor-owned communities have been acquired. There were 25 property portfolio firms in 1977, but that number has swelled to more than 500 today. Additional characteristics of the paradigm shift include the loss of easy access to chattel capital at the turn of the century. Today, we see manu-

82 | MHINSIDER™ • JANUARY 2019 • MHINSIDER.COM

facturer-sponsored housing finance programs, along with various types of seller-financing, even lease options, on-site in land-lease communities; and continued loan originations by one mega firm (70 percent national market share) and a few independent chattel capital firms. On the national stage, manufacturer dominance of national advocacy entities has been challenged since the debut of MHI’s National Communities Council in 1996; the Community Owners (7 Part) Business Alliance (COBA7) in 2014; and just recently, the National Association of Manufactured Home Community Owners. Lately, there’s also been recognition by affordable housing “housers” about how manufactured housing and land-lease communities bring affordability and a desirable lifestyle to the table. Then there are the trends peculiar to the land-lease, income-producing continued on page 81

MANUFACTURED HOUSING GROUP

REDEFINING VALUE FOR THE MH/RV ASSET CLASS BROKERAGE & ADVISORY SERVICES  CLIENT

FOCUSED

 DRIVEN

 PROVEN

RESULTS

2018 YTD Total Sales

OVER

$339M

Transactions

We are Dedicated To Our Clients MHRE Inc. is the foremost real estate brokerage and advisory firm predicated exclusively in the manufactured housing and recreational vehicle asset class. MHRE has created an unparalleled national platform consisting of the most comprehensive database and the most advanced marketing technologies to provide its clientele with the highest level of results. FREE BROKER OF OPINION (BOV) EVALUATIONS

Please email Melissa Wade at info@mhreinc.com or call 586-884-8415

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Properties Sold

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