MHInsider™ Magazine - January 2018 by MHInsider

JA N UA RY 2 0 1 8

MHINSIDER.COM â&#x201E;¢

T H E N E W M A G A Z I N E F O R M A N U FA C 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

2018 LOUISVILLE SHOW EDITION ALSO IN THIS ISSUE:

What to Expect in 2018 The Sales Introduction & First Impressions Stay Atop Trends & Customer Needs A Publication of

Offering products & services for all of your manufactured housing needs.

Steps

Windows

Skirting

Plumbing

Doors

Heating and Cooling

Electrical

At Style Crest®, we’re not just another supplier. At Style Crest we see our Manufactured Housing customers as partners. We strive to provide our customers unique access to services and resources that help grow their business. Call us and find out what a partnership with Style Crest can do for you and your business. Style Crest, Inc. | www.stylecrestinc.com/masons-rock | 800.945.4440

2 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Appliances

INNOVATION. CRAFTSMANSHIP. INTEGRITY.

CELEBRATING

HOMEBUILDING

VISIT US AT THE 2018 LOUISVILLE MANUFACTURED HOUSING SHOW Proudly Displaying New Homes from The Champion Family of Brands ®

championhomes.com

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

contents 7

VOLUME 1 • ISSUE 1 JANUARY 2018 ON THE WEB MHInsider.com ––––––

What to Expect During 2018

19 SPECIAL FEATURE: 2018 Louisville Show

Industry Veteran Hailed for 50 Years in the MH Sector

Fannie Mae Hits Ground Running With MH ‘Duty To Serve’

Don’t Miss Our Special 2018 Louisville Manufactured Housing Show Section in This Issue, Including: • Complete Show Schedule • List of Seminars • Show Floor Plan & Exhibitor List • Local Attractions & More!

Executive Editor

Darren Krolewski darren@mhvillage.com

Managing Editor

Patrick Revere patrick@mhvillage.com

Creative Director

Mark Dollan dollan@mhvillage.com

Contributors

George Allen Paul Barretto Ken Corbin Dawn Highhouse Richard Jennison Juliana Ludema Ken Rishel

Cover Photo

Champion Homes

Advertising Sales

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

Seize Opportunities for Growth in 2018

39 The Sales Introduction and First Impressions

Community Owners Discover the Benefits of Submetering

41 A Sales Lead is a Terrible Thing to Waste

Community Profiles

44 Stay Atop Trends to Meet Customer Needs in 2018

Disclaimer Although we have 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:

MHI’s New Home Initiative Engages Potential Customers

Chattel Finance of Manufactured Homes in 2018

4 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

SmartMH Prepares Prospective MH Buyers

2600 Five Mile Road NE Grand Rapids, MI 49525 1-800-397-2158 www.MHVillage.com

WELCOME LETTER

Welcome to the First Issue of The MHInsider™

few months ago, if you told me that MHVillage would enter into the publishing business, I’m not sure I would have believed you. After all, as the nation’s number one website for manufactured housing, our focus always has been the digital space. A print publication, it would seem, would be a step back rather than a step forward. Yet, after the successful launch of the MHInsider™ as a blog for manufactured housing professionals, it soon became apparent there was not only an opportunity for a new voice in the industry, but also the return of the preferred magazine format. Even in today’s high-tech world, there’s still something to be said about the convenience, tactile feel and reach of the printed page.

Darren Krolewski, Co-President and Chief Business Development Officer at MHVillage®

Those of you who have been in the business for some time undoubtedly will remember the names of the many

publications that have come before us. We recognize those contributions and legacies. And while some aspects of our publication may seem familiar, we look forward to making our own path with your ideas, feedback and support. On behalf of everyone at MHVillage, I’d like to take a moment to express my appreciation to the advertisers who saw our vision, the contributors who shared their expertise, our friends at the Midwest Manufactured Housing Federation and Show Ways Unlimited who lent their early support and the incredible team that brought our premiere issue to life. Thank you. We look forward to your thoughts on our first issue, and encourage you to visit the online edition of the MHInsider™ regularly at www.mhinsider.com.

VISIT OUR ALL-NEW, ALL AMERICAN MODEL AT THE 2018 LOUISVILLE MANUFACTURED HOUSING SHOW Learn about our Show Price Discount and Model Home Program to get the best deals of the year!

A SMARTER WAY TO BUILD™ MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

FAST ACCURATE RELIABLE Nationwide, Market-Based Home Valuation & Inspections. www.datacompusa.com

6 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

INDUSTRY FORECAST

What to Expect During 2018 By George Allen CPM Emeritus, MHM Master, President of GFA Management Inc.

Watch for Four Major Occurrences in 2018

et’s begin with what is unlikely to change durGeorge Allen ing 2018, and for a while beyond. First and most enduring, is the manufactured housing industry shipment volume paradigm shift versus what’s been in place since the turn of the century. Easy access to chattel capital, via independent and third-party personal property finance firms, went away and has stayed away for 17 years! Since the

MH Industry’s new home shipment low of only 49,789 new homes shipped during 2009 has not yet “doubled” to 100,000 (we rose to 81,136 in 2016), we have a long way to go to reach the industry “sweet spot” of an estimated 200,000 new manufactured homes to be shipped per year. Two somewhat related but different and unchanging consolidation trends will continue. They are: 1) Continuing consolidation of standalone land-lease communities into property portfolios, which went from 25 such portfolios in 1977 to more than 500 in 2017. 2) Continuing consolidation of HUDCode housing manufacturers into the mega firms, or “Big Three C” firms… Clayton, Champion and Cavco. Today

these companies boast upwards of 70 percent of national market share for new HUD-Code homes fabricated and shipped nationwide. OK, now brief descriptions of four non-prioritized significant and expected occurrences during year 2018. Firstly, watch for a “new class” of HUD-Code manufactured home to materialize during the months ahead. Initially described at the manufacturers’ division session at MHI’s annual meeting in Orlando, Fla., in October 2017, the first public description of this will occur at The Louisville Manufactured Housing Show. Chris Fisher of Ducker Worldwide and CONTINUED ON PAGE 9

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

MOVE IT and LIFT IT INTO PLACE... QUICKLY, SAFELY and PRECISELY.  The Platypus lifts and moves housing units with ease. Mating the halves of a modular home is done without the need for jacking and rolling, resulting in higher productivity and a safer job site. The radio remote controlled Platypus provides an unobstructed view of the work zone.

Radio Remote Controlled



Radio Remote Controlled

CUTTING SYSTEMS, INC.

Get it on the pad safe and sound with a House-Tug! Housing placement is quick and easy in places where no truck or dozer could ever go. With our full line of options and accessories, site prep is no problem.

Call Toll-Free 1-877-844-1274

8 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

www.cuttingsys.com

INDUSTRY FORECAST

CONTINUED FROM PAGE 7

MHI President Richard Jennison will hold forth on the subject.

Series Home debuted) how land lease communities are the new primary market

What to expect? The new home will be built in accords with the existing HUD-Code, feature 5/12 roof pitch with asphalt shingles, mounted on a permanent foundation, have a builtin porch, and likely a garage or carport at one end of the home. It’s doubtful the “new class” will be referred to specifically as a manufactured home, but by some other moniker. Secondly, watch for the affordable housing crowd to soon “discover” factory-built options and land lease communities as practical, affordable housing and lifestyle solution to the nation’s affordable housing crisis. A majority of renters and homebuyers currently pay in excess of 40 percent, sometimes 50 percent, of their annual gross income for housing! How’s this word getting out? A white paper has been making the rounds and has been generally well-received. “Solving Our Nation’s (Lack of) Affordable Housing Crisis, with Factory-built Housing & Land Lease Communities!” was researched, produced and distributed by the Community Owners Business Alliance (“COBA7”). Readers can obtain a copy of the white paper simply by calling the Official MHIndustry HOTLINE at (877) MFD-HSNG or 633-4764. Thirdly, watch for a major overt effort to organize, recruit and launch a new, independent, third-party national advocacy entity, comprised of businessmen and women from most, if not all, post-production segments of the manufactured housing industry. While this non-manufacturer initiative has been quietly discussed for some time, the question remains as to whether discontent with the status quo is strong enough to spawn a third manufactured housing presence in Washington, D.C. Or a fourth presence if one includes COBA7. To be put in touch with those organizing the post-production effort, phone (317) 346-7156 for contact information. Fourthly and finally, HUD-Code housing manufacturers have realized since 2009 (also the year Community

An estimated 80 percent of communities nationwide now have a growing number of vacant rental homesites, have little to no idea how to “solve” the dilemma by buying, selling and seller-financing new homes on site. for new manufactured homes. After all, in 2009, only 24 percent of the 48,789 new homes went directly into land-lease communities. However, by year end 2015,

Written Insured

that volume jumped to 40 percent of the 70,544 new homes shipped! And it’s likely the percentage now exceeds 50 percent. But there’s a troubling, but potentially rewarding, challenge afoot. While the largest property portfolio players have learned, and now routinely effect the “new home purchase, sell on-site, and seller-finance the transaction drill”, an estimated at 80 percent of communities nationwide now have a growing number of vacant rental homesites, have little to no idea how to “solve” the dilemma by buying, selling and seller-financing new homes on site. That, in this veteran industry observer’s opinion, remains the big challenge of 2018. How to reverse the trend and restore prosperity is the question. Want to address this? Plan to participate in the second Two Days of Plant Tours & Home Sales Seminars, at the RV/MH Hall of Fame, in Elkhart, Ind. during May 2018. To get onto the invite list, phone the IMHA/RVIC at (317) 247-6258 ext. 11. Don’t wait! MHV

A Solid Foundation for Your Business

New Home Warranties

With 28 years’ experience, MHWC is the leader in New Home Warranties for the HUD-Code Housing Industry.

MHWC

NEW HOME WARRANTIES

TIFANEE McCALL

800-247-1812 ext. 2149 sales@mhwconline.com www.mhwconline.com

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

DISTINGUISHED SERVICE PROFILE

Industry Veteran Hailed for 50 Years in the Manufactured Housing Sector By Patrick Revere, Managing Editor for MHInsider™

The Founder of Show Ways Unlimited Has Planned and Organized Hundreds of Shows, Including The Louisville Manufactured Housing Show and the Tunica Manufactured Housing Show

ennis Hill is the talent behind Show Ways Unlimited and the hundreds of manufactured housing industry trade shows he and his team have put on during their decades of hard work. Though many in the industry may believe Hill gained his start in the events

call for 50,000 troops to Vietnam. He trained and prepared but never was shipped out. However, Hill was stationed at Fort Rucker, an 11-square-mile Army base in southeastern Alabama that The Smithsonian once referred to as “The Place Where Huey Pilots are Trained and Heroes are Made”. “I was placed in special services and put in charge of conducting entertainment for troops at Fort Rucker,” Hill said. He said it took a while to convince his superiors that the guys didn’t really want to spend their time playing checkers in the USO Club, and that there had to be some alternative yet safe ways to “blow off steam”.

Rockin’ Fort Rucker

Dennis J. Hill celebrates 50 years in the Manufactured Housing Industry in 2018

business forming shows in Atlanta or Nashville, there is a deeper story yet to be told. Hill was in graduate school at the University of Georgia in 1966 when he was swept up in the U.S.

“We put on Rock shows. And that’s what I think got me started on the idea of doing events,” Hill said. “The commanding officers were only convinced we’d made some good decisions when they saw 4,000 to 5,000 people out in the parade field being entertained.” He programmed all phases for the entertainment section, and prior to the event had to recruit, evaluate and assemble the performers into bands that could hold the stage for an hour, if not more. Yes, Dennis Hill organized “boy bands” for the troops, in a time that was better known for the “British invasion”.

10 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

“The performers were local rock groups we assembled,” Hill said. “It was amazing to see something like that come together.”

In 2018, Dennis Hill Celebrates 50 years When Hill was discharged, his father, who had been a manufacturer’s rep in the industry, was in poor health. His father asked that Dennis and his brother follow him in the manufactured housing business, but the brothers were ill-suited to work together. Dennis Hill allowed his brother to take his father’s path, and Hill signed on with what was referred to as “the old Southeastern Manufactured Housing Institute”. “The regional group was there for 10 years, and my original role was around member services and the service and supplier division,” Hill recalled. “Maybe it was a catch all for anything and everything.” The trade show thing literally just popped up. “My boss walked in and said ‘You’re going to do a trade show’ and I said ‘What is a trade show?’” Hill confessed. “I guess I figured it out.”

CONTINUED ON PAGE 13

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

ONE TIME CLOSE

Home ConstruCtion to Permanent Loan AMERICAN INSURANCE ALLIANCE INC.

"Your Hometown Mortgage Solution"

Manufactured Housing Insurance Specialists

* FHA Land/Home Loans 96.5% LTV with min. credit score of 580 * Land in lieu * VA Land/Home Loans 100% LTV with min. credit score of 620 * Land in lieu * FHA/VA OTC (One Time Close Construction Loans) (Land/Home Loan)

* Great 30yr Low/Fixed Rates * USDA Rural Loans 100% LTV with min. credit score of 620 * Land/Home End Loan Only * Conventional Loans 95% LTV with min. credit score of 620 * Land/Home End Loan Only

* Quick Pre-approval, underwriting and approval Turn Times CONTACT US WITH QUESTIONS

Be sure to visit us at the Louisville Manufactured Housing Show Booth #113

Branch Manager - Daniel Bove 11885 E. 12 Mile Rd., Ste. 303A, Warren, MI 48093

Phone: 586-753-9000

Fax: 586-753-9001

Apply online at http://www.topflitefinancial.com/bove Email: dbove@topflitefinancial.com Branch NMLS/State #95620 Top Flite Financial, Inc.NMLS #4181, Branch NMLS / State # 95620 * Alabama Consumer Credit License #20407 * Arizona Mortgage Banker License #0910742 * Arkansas Combination Mtg. Banker-Broker-Servicer License #37008 * California- DBO Residential Mtg. Lending Act License #4131104 * Colorado Mortgage Company Registration #N/A * Connecticut Mortgage Lender License #19570 * Florida Mortgage Lender Servicer License #MLD58 * Georgia Mortgage Lender License #19468 * Illinois Residential Mortgage License #MB.6759955 * Indiana-DFI First Lien Mortgage Lending License #10854 * Indiana-DFI Subordinate Lien Mortgage Lending License #10855 * Iowa Mortgage Banker License #2007-0051 * Kansas Mortgage Company License #MC.0025049 * Kentucky Mortgage Company License #MC72199 * Louisiana Residential Mortgage Lending License #2640 * Maine Supervised Lender License #N/A * Massachusetts Mortgage Lender License #ML4181 * Michigan 1st Mortgage Broker/Lender/Servicer License #FL0017398 * Michigan 2nd Mortgage Broker/Lender Registrant #SR1700 * Minnesota Residential Mortgage Originator License #MN-MO-20619001 * Mississippi Mortgage Lender License #4181 * Missouri Company Registration #13-1792-A* New Hampshire Mortgage Banker License #14260-MB * New Mexico Mortgage Loan Company License #03190 * North Dakota Money Broker License #MB102066 * Ohio Mortgage Broker Act Certificate of Registration #MB.803839.000 * Oklahoma Mortgage Lender License #ML010135 * Oregon Mortgage Lending License #ML-4427 * Pennsylvania Mortgage Lender #36205 *South Carolina-BFI Mortgage Lender/Servicer License #MLS-4181 * Tennessee Mortgage License #109248 * Texas - SML Mortgage Banker Registration #N/A * Utah-DRE Mortgage Entity License #6818424 * Washington Consumer Loan Company License #CL-4181 * Wisconsin Mortgage Banker License #600267BA * Wisconsin Mortgage Broker License #4181BR. MO Registered Address: 3610 Buttonwood Dr. Ste. 225 Columbia, MO 65201

We’ve got you covered – we insure all segments of the MH industry!  Communities  Retailers  Owners  Transporters  Installers

AmericanInsuranceAlliance.com AIA@AmericanInsuranceAlliance.com

This flyer is intended for the use of Lenders, Manufactured Dealers and Builders only and not intended for consumers.

Louisville Show Attendees are Invited to Join Us for an

APPRECIATION RECEPTION Wed., January 17, 2018 • 5-7pm Crowne Plaza Hotel, B&C Ballroom Cocktails and Hors D’oeuvres

This is an opportunity to fellowship with industry members and donate to the KMHI-PAC Fund. There will be great door prizes so make sure you are there and bring your personal checkbook! Hosted by the Kentucky Manufactured Housing Institute and the Manufactured Housing Institute

12 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

DENNIS HILL PROFILE CONTINUED FROM PAGE 10

The Formative Years Hill said there were many people around him – a 22-member board included – to help organize the management of a trade show – from earliest planning, through working with partners and vendors, to securing space and getting show homes organized and speakers assembled. And it was an experience that got his blood flowing, he said. Doing shows was something akin to running a political campaign; many months of planning that must coalesce into action, an effective day or two that provide a collective experience for the whole. He could run a weekend “how to” retreat on the topic these days, but in the early ’70s it was a rather undefined landscape. “It was the wild and wooly days. The business almost allowed you to show up, set up your display and leave it for the weekend. This happened one time and I called a guy to ask him how his show was and he responded ‘It was the best show ever’.” “It changed, and I like to think I had a positive influence,” Hill said. “The shows were going to move forward, and they needed to be about more than partying and being out at night. John Manley, a veteran in the industry and member of the RV/MH Hall of Fame, was there to help Hill in those formative years. “His influence as a West Point graduate appealed to me, having just come out of the military,” Hill said. “In the morning, when I got chewed out for whatever, it didn’t really bother me because that’s just the way it worked.”

Serving The American Dream Through Aﬀordable Home Ownership

All Those Shows Hill started with the Atlanta show, which was outside at the farmers market. He said the industry was very competitive at the time, and lacked the undercurrent of cooperation seen today. The goal, Hill said, was to create something durable that allowed for industry competition and collaboration. CONTINUED ON NEXT PAGE MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

When Show Ways was organized in 1978, the trend went toward bringing shows inside, and creating professional presentations and talks. The trade shows could still be about selling products and having fun, but programs that advance the industry found a place as well. “That was a big decision to make,” Hill said of starting Show Ways Unlimited. “Any time you start a business, it is a big deal. The number of shows I was doing at the time made me wonder if I could make it. But when I got underway, I realized I was reasonably good at it.” Shows for manufactured housing professionals were held in Kansas City, Mo., Charlotte, N.C., Atlanta, Ga., Louisville, Ky., Tulsa, Okla., New Orleans, La., Tunica, Miss., Omaha, Neb., Nashville, Tenn., and Atlantic City, N.J. Tim DeWitt, former director of the MMHRVC, worked in collaboration with Dennis for a good portion of his 39 years in the business. “He found a niche, and honed in on it. I think what’s made him as successful as he has been, is because when you’re in a state association it’s very helpful to be able to work with a private promoter who has more room to move and can make decisions to get something implemented a lot faster than you’d be able to working in public sphere.” DeWitt said he recalls Hill as a true football nut, always wearing his Bulldogs ball cap during move-in days prior to a show. “He was always a calming influence, and that’s important. He supported us in good times and bad, and we could rally around that,” DeWitt said. Eventually, the Atlanta show grew up and moved to Nashville. It turned from an outdoor / indoor show, to a regional affair. The Nashville show was held at the Opryland hotel complex and outgrew that space, too. This resulted in the move to Tunica, Miss., which is where the show continues to be held each March.

‘Crazy for That’ Today, The Louisville Show is the largest gathering of MH professionals in the Midwest, is sponsored by five state associations, and boasts the largest

CONTINUED FROM PREVIOUS PAGE

collection of model homes displayed indoor anywhere in the United States. A record number of nearly 3,000 attendees are expected at this year’s show. Dennis Hill’s own plaque at the RV/ MH Hall of Fame, bestowed when he was inducted in 2004, reads: “He has brought hundreds of manufacturers together with thousands of retail centers for the betterment of the housing industry and has returned over $3.5 million to the state associations that sponsor the shows.” In 1998, Hill also was named “Industry Person of the Year” by the industry publication The Journal. Running shows and managing relationships within the manufactured housing industry has been a dynamic experience in recent decades. He continues to view his role as one of providing increased professionalism at each event. “This is where we are today,” Hill said. “It’s important to recognize and understand how to trust, and how to get the job done just as you say you are going to get it done.

“I’ve hung in there with it, and I’m proud of that.” Dennis has had a great “show site” office manager in Michele Middleton. She has played an integral part in assisting him at the show since the Nashville Show. To add to his Roswell office, Hill has had Trisha Ragoopath join on as his office manager about a year ago. Though 2018 marks 50 years in the industry, Hill said he has plenty to contribute and makes no mention of retirement. “Looking back, the trade show was definitely what I enjoyed the most,” he said. “I guess I’m crazy for that, but there’s something about it I really liked, and I still do.” Hill continues to run his business from Roswell, Ga., and lives nearby in Alpharetta, Ga., with his wife Nancy. Married for 53 years, the couple has a daughter, Allison Sims, two grandchildren, Bri and Max Sims, and their wonderful family dog, Beau. MHV

he new D-5 drain cleaner combines professional quality and affordability in a continuous cable drum machine for cleaning 3” to 10” diameter lines up to 100 ft.

Call Now! 1-800-833-1212

14 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Drain Cleaning Tools For ProFessionals

DISTINGUISHED SERVICE PROFILE

The high density polyethylene drum & belt guard will not rust or dent and holds up to 100 ft. of 3/4” diameter Tri-Max cable. Three sealed heavy-duty ball bearings support the drum and a thick wall guide tube extends wear. A heavy-duty 1/2 H.P. capacitor-type motor provides more torque. Contact us today to find out more about why the D-5 is the drum that can’t be beat!

www.electriceel.com

Our name represents our faith in people and our commitment to helping them succeed Visit us at booth #520 at the Louisville show to learn more about our MH lending programs For more information contact us at MHInfo@CreditHuman.com

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

16 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

GOVERNMENT

Fannie Mae Hits Ground Running With Manufactured Housing Under The ‘Duty To Serve’ Rule By Paul Barretto, Manufactured Housing Lead for Fannie Mae

he manufactured housing industry is booming, having recorded a seventh consecutive year of growth in 2016, according to the Manufactured Housing Institute. The price point on these homes, their quality, and durability are attracting a variety of homeowners, including low- and moderate-income buyers, Millennials, and those over 55.

Having toured the manufacturing plants to see how the homes are built, I can say that it’s hard to find a more efficient way to build quality homes that can be done to scale. In addition, having listened to residents talk about their homes - their pride of ownership, sense of security, and community - I’m convinced manufactured housing is poised to expand. With the lack of affordable housing supply, it shouldn’t take long until the general public realizes the truth about manufactured housing; these homes may put their dream of homeownership within reach. However, there are challenges for lenders and investors in this space, including differing legal standards depending on whether the home is treated as real property or personal property, a lack of accessible financial and performance data for chattel loans (homes treated as personal property), typically higher cost of borrowing for many consumers, and an overall negative brand perception. While it’s up to the industry to collectively change the impression of manufactured housing, Fannie Mae is laying the groundwork to help the industry address some of these other challenges.

Manufactured Housing Matters Manufactured housing is just one area Fannie Mae supports under the Federal Housing Finance Agency (FHFA) “Duty to Serve” (DTS) rule, which you can find described at http://www.fanniemae.com/DutyToServe. In December 2016, the FHFA published its final rule, outlining the requirement that Fannie Mae create a plan supporting three underserved markets in the next three years. One of these markets, manufactured housing, is of particular interest to us because it also impacts the other two underserved plan areas, rural housing and preservation of affordable housing. Even before the DTS rule, we viewed manufactured housing as an important type of affordable housing that serves low and moderate income consumers. With DTS, we have an opportunity to go beyond our current capabilities and change the narrative on manufactured housing.

Setting Our Course Our proposed DTS plan outlines the activities for 20182020. On the Multifamily side, we’re reviewing our current products to consider financing strategies for government, non-profit, and resident-owned manufactured housing communities, and we’re researching and evaluating FHFA’s proposed minimum tenant pad lease protections in manufactured home communities. On the Single-Family side, we’re developing solutions to purchase more loans on manufactured homes titled as real property through test and learn pilots.

Sustainable Homeownership Manufactured housing is positioned for growth – and we’d like to do our part in shaping its future. Notably, in October we sponsored a forum with more than 40 manufactured housing industry professionals to discuss how to change perceptions, standardize terminology, address CONTINUED ON NEXT PAGE

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

FANNIE MAE DUTY TO SERVE CONTINUED FROM PREVIOUS PAGE

Come visit us at the Louisville Home Show January 17-19 2018 Located at Booth 229

5920 Decatur Blvd. Indianapolis, IN 46241 800-479-2754 Proud to serve greater Indiana since 1993

Stop by and sign up for a chance to win a door prize to be given away each hour. (No purchase required)

MARCH 19 –2 2, 2018 • TUNICA, MISSISSIPPI

The Southeast’s Premier Event for Manufactured Housing Professionals The Tunica Show brings out an array of new manufactured home designs, the latest in technology, the best in suppliers' offerings and a look at all the newest amenities and system-built options the industry can offer. That’s why the Tunica Show has been the Southeast’s premier event for manufactured housing professionals for over 20 years.

For more information, contact Show Coordinator Dennis J. Hill at (770) 587-3350 OR VISIT US ONLINE FOR MORE INFORMATION AT: WWW.THETUNICASHOW.COM 18 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

appraisal inconsistencies, remove zoning barriers, and, perhaps most important, gather and share more data about almost every aspect of the industry. Our goal is to standardize this data and make it widely available to promote the industry and support responsible growth. Manufactured housing matters and we are committed to creating sustainable solutions and buying more loans on manufactured housing. We’ll test and learn with pilots so we can support the ideas that are most successful for the industry and America’s homebuyers. To be successful, we need your collaboration and patience as we get our pilots off the ground. We’ve spent the past three years engaging the industry and listening to understand the challenges and how we can help alleviate them. We’ve got a lot of exciting things planned for the coming years, much of which we proposed in our initial underserved market plan for manufactured housing under the Duty to Serve. As we move forward, we hope to join with many of you to expand sustainable homeownership opportunities. Please email paul_a_barretto@fanniemae.com with ideas you’d like to share. MHV Paul Barretto leads manufactured housing initiatives and industry outreach for the Single Family Customer Solutions – Duty to Serve team at Fannie Mae. He is responsible for the product management and development of the company’s manufactured housing solutions. Paul had an integral role in developing Fannie Mae’s Single-FamPaul Barretto ily Manufactured Housing Underserved Market Plan under the Duty to Serve rule. He represents Fannie Mae as a member of the Manufactured Housing Institute and actively works to understand the challenges facing manufactured housing and the markets they serve. Keep up with all the latest industry news online at: mhinsider.com

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

2018 LOUISVILLE SHOW

A Word from the State Association Directors

o help keep MHInsider™ readers acquainted with state-to-state trends and topics, we have has asked the MH association executive directors from each of the Midwest states represented at The Louisville Manufactured Housing Show to answer a pair of questions. Our first question relates to statespecific trends, and the second opens up to more national, industry wide challenges or opportunities. Below are the questions and the 10 answers received from each of the state directors.

What are the trends in your state that intrigue you? “We’re seeing a continued increase in larger portfolio owners coming into the industry and that has resulted in a lot of parks being upgraded and has generated increased sales. We probably will have about 2,000 annual new home sales statewide compared to about 500 not more than five or six years ago. In the eastern and southeastern part of the state there’s been a boom in the natural shale oil industry. People are buying in that region very aggressively. We get a lot of calls from investors looking to buy parks, and also some of the company owners in the oil industry searching for workforce housing. Clayton has an increased presence in the state, probably driving about 40 percent of the sales here. Skyline also has a big presence, and Champion and Adventure also seem to be doing well here.” Tim Williams, Executive Director Ohio Manufactured Homes Association

“One of the greater changes we see in Indiana is the nearly total transition from MHs being sold from traditional dealerships, to sales emanating from inside MH Communities. This phenomenon led to the passage

of 2017 legislation in Indiana to put MH dealer licensure back in Indiana law, rather than on a voluntary basis. Anyone selling more than 12 homes will need to be licensed dealers. This is leading to new rules and regulations that will streamline and simplify requirements for dealers selling from within MH communities. From a manufacturing basis, we need to attract more people to our industry so we can keep up with the growing demand for our homes. We are blessed with a steady rise in orders and sales, but in order to compete, we must be in a position to deliver our product to the consumer in a timely manner. The Indiana MHA is working with the Indiana Department of Veteran Affairs, National Guard Association of Indiana and the Department of Workforce Development to help recruit and employ veterans and members of the National Guard. We also are working with the current administration to find ways to attract workers from other states to Indiana and help them build their lives and families in well-paying careers in our industry.” Ron Breymier, Executive Director Indiana Manufactured Housing Association

“Everywhere you go people are talking about the need for affordable housing. But nobody knows exactly what that means. The industry needs to grab that phrase away from the subsidized housing crowd and make it its own.” Frank Bowman, Executive Director Illinois Manufactured Housing Association

“We’re receiving more questions at the association office from people looking for 55+ communities. We’re also receiving calls from

20 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

community owners who are contemplating switching to a 55+ community. It’s about the demographics in the state. We have Baby Boomers as every state does, and there are a lot of considerations for the amenities and lifestyle choices for that market. This is a big step, not the least of which is considering how many people you might displace. And you can’t change your mind and go back.” William G. Sheffer, Executive Director Michigan Manufactured Housing Association

“One of the biggest things we’ve experienced recently has been our work on Duty to Serve with Freddie Mac because our state was designated as one for a pilot program in regard to creating secondary markets for financing. We toured around with representatives from Freddie in December of 2016, and it was eye opening for them I think to see what we’re producing and what some of the new homes on retail lots look like. One of the things we’re doing is referring people who are having difficulty buying a home to an online tutorial called e-HomeAmerica that does credit counseling and provides direction for how to get on the path for purchasing a home.” Betty Whittaker, Executive Director Kentucky Manufactured Housing Institute

What do you see as the biggest opportunity in the industry right now? “What I see that continues to be the primary hang-up in the industry is the perception of manufactured housing. There remains such an outdated, at least, if not an entirely false narrative, about this much-needed segment of housing.

A county or city will zone out manufactured housing, or require 10 to 15 acres before a home can be sited. It continues to be very frustrating that consumers cannot buy and place a manufactured home in some areas simply because they are built in a factory. We are in the process of starting to help members with this issue and fight for fairness.” Betty Whittaker, Executive Director Kentucky Manufactured Housing Institute

“Factory-built housing is on the verge of an explosion. The general lack of trades people and the economy associated with production will work to fill a much larger market share moving forward.” Frank Bowman, Executive Director Illinois Manufactured Housing Association

“The key issue is financing. More lenders have come in, and there’s been some broadening of financing, but if we can get a hold of what we’re doing legislatively in term of what we’re doing with government backed loans it will help a lot. It seems like MHI has been doing a lot to drive this, and I think ultimately will be effective.” Tim Williams, Executive Director Ohio Manufactured Homes Association

“The industry’s best opportunity is in a combination of millennials who want affordable housing and the baby-boomers who wish to downsize. Our industry is well positioned to provide both with quality attainable housing. No site builder is catering to the market below $200,000. Our industry can give them the home they want with the amenities they desire in a land-home package in the $100,000 -$125,000 range. Additionally, I see a rise in demand for our land-lease communities where our homes and pricing beat apartment living costs. This could grow at a greater rate if we get more financing for chattel loans for our homes. Improved consumer financing will be a critical building block.” Ron Breymier, Executive Director Indiana Manufactured Housing Association

“Available financing will come eventually from Freddie and Fannie for people who want to buy a home where they’ll be paying a rental fee for space. Until this financing lends itself more to people who have a small loan need, we won’t be able to appropriately satisfy the housing requirements of a large number of our state’s residents. But, we’re getting closer to that, I think.” William G. Sheffer, Executive Director Michigan Manufactured Housing Association

The 2018 Louisville Manufactured Housing Show is Sponsored 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

SHOW HOURS Wednesday, January 17th 9am–5:30pm........ Exhibits Open

Thursday, January 18th

9am–5:30pm........ Exhibits Open

Friday, January 19th

9am–12 noon........ Exhibits Open

SEMINARS Wednesday, January 17th Designing a New Class of Manufactured Homes......8–9am

How to Buy Manufactured Homes at the Louisville Show......9–10am The Millennial Opportunity: Reaching the Next Generation of Homeowners and Residents...................... 10–11am

Thursday, January 18th

Growing Your Business..........................8–9am Advances in Chattel Finance.......................... 9–10am

Friday, January 19th

Ask the Engineers: Beyond the Showroom - Installation and Cost-Effective Foundations................... 8–10am

The Michigan Manufactured Housing Association The Ohio Manufactured Homes Association Produced and managed by Show Ways Unlimited, Inc. (Louisville Show photos courtesy of Johnston Photography)

Stay up-to-date on all the exciting things happening at The Louisville Show on our website at:

TheLouisvilleShow.com MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

2018 LOUISVILLE SHOW

Photos courtesy of the Louisville Convention and Visitors Bureau

Extend Your Stay in Louisville for These Local Attractions By Juliana Ludema, Contributor

hen manufactured housing professionals think of Louisville, they often think of the industry-leading trade show held there each year, but there are many good reasons to extend your stay in Derby City. Each of the following attractions is just three to eight miles from the Louisville Exposition Center, and each has indoor exhibits which run through the winter. Make sure to check each attraction’s website for hours and pricing--and don’t forget your walking shoes!

The Louisville Slugger Museum & Factory

Head to Louisville’s “Museum Row”, located in downtown’s West Main District, and find museums for everyone. The Louisville Slugger Museum & Factory is loved by baseball fans and curious observers alike. As the lore goes, 17-year-old J.A. “Bud” Hillerich made the first slugger bat for Louisville Eclipse star Pete Browning after he broke his bat during a game Hillerich attended in 1884. With this new bat, Browning got three hits in his next game. Ever since, Louisville Sluggers have been the bat of choice for most major league players. Learn the history of baseball and see how bats are made as you stroll around the museum, or take a tour of the factory -- each tourist receives a free mini baseball bat, but true fanatics can have an original custom-designed in the gift shop. You’ll also try out

historic bat models at the batting cages and see the world’s largest baseball bat. www.sluggermuseum.com

Muhammad Ali Center

Love boxing, history, civil rights? Another must-see on Museum Row, the

22 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Muhammad Ali Center, follows Ali’s life through exhibits featuring his six core principles: confidence, conviction, dedication, giving, respect and spirituality. Immerse yourself in Ali’s life, from his youth in Louisville to his conversion to Islam, name change and all 15 of his championship fights -- sitting through each one is optional. See his clothing and try out a boxing ring to get a true taste of Ali’s stature and skill. The many exhibits, quotes, videos and interactive timelines can be a bit of a sensory overload, so you may find it easier to simply listen to, or CONTINUED ON PAGE 26

2018 LOUISVILLE SHOW

The 2018 Louisville Manufactured Home Show Welcomes the Return of Chairman Kreil Moran

reil Moran, head of Midwest Manufactured Housing Federation, returns to The Louisville Show for a second stint as show chairman, having previously served in that capacity for the 2007-2008 show season. “I am honored to be back as Show Chairman and am very excited about all the progress the industry has made in recent years,” Moran said. “We will be showcasing a collection of new homes

Kreil Moran, Chairman 2018 Louisville Manufactured Housing Show

that put on display much of that hard work, and we have a robust collection of product and service providers on hand to help answer the needs of our attendees looking ahead through 2018.” Moran said attendance, activity and enthusiasm is at an all-time high, and that he’s certain The 2018 Louisville Manufactured Housing Show will be a key industry touchpoint for tenured manufactured housing professionals as well as those new to the industry. “That’s why we organize and host this event,” Moran said. “We operate in an ever-changing and vital marketplace,

and it means a lot to the many people who come here to be able to have valuable conversations, meet potential new clients, and help fortify a strategy to move forward.” Moran has a background in public utilities, which is how he entered the manufactured housing industry in 1986. “I still work in the industry for communities as a licensed and certified water and wastewater operator. This is about collection and distribution of those utilities,” Moran said. “If a company owns a community that has utility operation of its own, that’s where I come in to ensure the infrastructure is running smoothly. “I was in the first manufactured housing certified installer class Kentucky held and I’ve maintained that certification ever since,” he said. “It doesn’t matter what kind of good work you can do if you’re not licensed. And these updates give you a good rounded outlook on what’s important in the industry. It helps me communicate what’s necessary and to be able to contribute.” His extensive board and public service credentials also includes two years as chairman and five total years with the manufactured housing section of the Kentucky State Certification and Licensure Board, service with the MMHF in varying capacity since 1996, as well as serving as a director and president for the Kentucky Manufactured Housing Institute in 2003, 2004 and 2009. Moran spent many years with SSK Communities in Kentucky in home sales and to ensure homes were properly sited. He also worked in the same capacity in Kentucky for the Buckner Group, an Atlanta-based community operator and manufactured home retailer. He resides in Mount Washington, Kentucky, with his wife Geri. The couple has

five grown children, seven grandchildren and two great-grandchildren. “It’s been a long ride and a little bumpy at times, but I’ve enjoyed 90 percent of what I’ve done,” Moran said. “The industry has helped raised five children of mine and all of those grandchildren. Every one of them is a blessing.” MHV

Don't Miss This Year's Community Series Homes Another key Louisville Show focus is the growing trend of manufacturers taking the initiative to provide new homes designed and built to fill older manufactured home communities around the country. There is an expanding need to replace older manufactured homes with homes that meet the changing wants and need of buyers while also helping community owners and operators revive their communities to be part of the housing marketplace. Manufacturers will be displaying new “community series homes” to demonstrate the unique partnership with communities and how these cooperative efforts can create success for everyone involved. Learn from the experts how these homes effectively target the opportunities for homebuyers and community owners/ operators, while also directly expanding building and selling more manufactured homes in this important area for industry growth.

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

SKYLINE

CHAMPION

SKYLINE

CHAMPION

ENTRANCE

REDMAN

instagram.com/thelouisvilleshow/

twitter.com/thelvilleshow

DUTCH

FORTUNE

ADVENTURE

ADVENTURE REDMAN

ADVENTURE

facebook.com/thelouisvilleshow

RESTROOMS

SKYLINE

ADVENTURE

SKYLINE

COMMODORE

MIDCOUNTRY

LEGACY

COMMODORE

MIDCOUNTRY

WOMEN

LEGACY

SKYLINE

FOOD COURT & PARK

MEN

124 122 120 118 116

SUNSHINE

MHE

ADVENTURE

COMMODORE

FLEETWOOD

SHOW OFFICE

230 228 226 224 131 129 127 125

330 328 326 324 231 229 227 225

430 428 426 424 331 329 327 325

530 528 526 524 431 429 427 425

REGISTRATION

128 126

SERVICE DESK

102 100

208 206 204 202 200 109 107 105 103 101

308 306 304 302 300 209 207 205 203 201

408 406 404 402 400 309 307 305 303 301

508 506 504 502 500 409 407 405 403 401

ENTRANCE

AISLE 500 520 518 516 421 419 417 AISLE 400 420 418 416 414 412 321 319 317 315 313 AISLE 300 320 318 316 314 312 221 219 217 215 213 AISLE 200 220 218 216 214 212 121 119 117 115 113 AISLE 100

ALL AMERICAN ALL AMERICAN

FLEETWOOD

CLAYTON

FLEETWOOD

MAYNARDVILLE

WOMEN

RESTROOMS

COFFEE

SUNSHINE

MHE

FAIRMONT

HARMONY

SEMINAR AREA

114 112 110 108 106

SUNSHINE

MHE

FAIRMONT

CLAYTON

CLAYTON CLAYTON

CLAYTON

MEN

LOUISVILLE MANUFACTURED HOUSING SHOW • JANUARY 17-19, 2018

C O U R T

F O O D

24 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

COMPANY NAME BOOTH # 2-10 Home Buyers Warranty...................................................207 21st Mortgage Corporation..................................... 327, 329, 331 ABT Water Treatment, Inc........................................................ 125 Alliance Credit.........................................................................306 *American Commerce Bank................................................404 American Insurance Alliance, LLC............................................ 113 AmRent Resident Screening................................................... 300 Apex Billing Solutions..............................................................204 *Ashley Furniture............................................................120, 122 Bennett Truck Transport, LLC.................................................. 516 Blevins, Inc....................................................................... 103, 105 Capitol Supply and Service..................................................... 518 Cascade Financial Services.............................................319, 321 *CIS Home Loans...........................................................401, 403 Clarus Environmental Products (Zoeller).......................206, 208 Clayton Bank a Division of First Bank.............................. 414, 416 Cordell International, Inc..................................................219, 221 Country Place Mortgage.........................................................224 Credit Human Federal Credit Union...................................... 520 Cutting Systems................................127, 129, 131, 226, 228, 230 DEHCO, Inc..................................................................... 406, 408 *Discover Modular Homes.................................................... 114 Donald C. Westphal Associates, LLC.......................................213 Dura-Bilt Products, Inc............................................................. 215 *East Kentucky Power Cooperative...................................304 Electric Eel Manufacturing.......................................................317 Everlock Systems.....................................................................330 *Frog Attachments, Inc.................................................126, 128 *Gama Sonic Solar Lighting................................................309 General Supply, Inc..................................................................229 Heritage Distributing, LLC.......................................................409 HomeCarePlus.........................................................................324 Illinois State Association...........................................................431 Indiana State Association........................................................425 Jamie’s Interiors, Inc.........................................................417, 419 Kentucky Code Officials..........................................................429

COMPANY NAME BOOTH # Kentucky State Association..................................................... 427 Land Home Financial Services.................................................418 Louisiana Pacific Building Products.........................................231 ManufacturedHomes.com....................................................... 106 *Manufactured Home.Loan, Inc.......................................... 110 *Manufacturedhomeloans.com........................................... 112 *Metron Sustainable Services, Inc.....................................305 MHI............................................................................................421 MHRE....................................................................................... 205 MHVillage.com................................................................... 119, 121 MHWC.......................................................................................217 Michigan State Association.....................................................424 Minute Man Products, Inc...................................................... 220 *Mobile Home Depot............................................................. 116 Mobile Home Stuff Store, Inc.................................................. 216 *Modularhomes.com............................................................ 108 N Tech Industries, LLC DBA Harbor Floors Products.................................................. 209 NADAGuides.................................................................... 524, 526 Net-Wired, Inc...........................................................................314 *Newport Pacific....................................................................303 Next Step Network..................................................................528 *Nickell Moulding Company................................................405 Nortek Global HVAC................................................ 316, 318, 320 NorthPoint Commercial Finance.............................................530 *Nova Plumbing Technologies............................................325 Ohio State Association............................................................426 Oliver Technologies, Inc................................................. 326, 328 *OneTrust Home Loans.......................................................... 101 Park Lane Finance Solutions, LLC............................................412 PayLease...................................................................................312 Perfect-A-Line..........................................................................400 Performance Equity Partners, Inc.......................................... 202 PFS Corporation dba PFS TECO.............................................307 R.E. Michel Company, LLC.......................................................420 RainMaker Software.................................................................214

Cocktails and Hors D’oeuvres will be served

5:00 – 7:00 PM at The Crowne Plaza Hotel

Wednesday, January 17th, 2018

Co-Sponsored by KMHI and the Manufactured Housing Institute

2018 LOUISVILLE SHOW APPRECIATION RECEPTION

You Are Cordially Invited

COMPANY NAME BOOTH # R-Co Products Corporation.....................................................308 Remote Trax............................................................................. 100 Rent Manager.......................................................................... 201 *RenterText..............................................................................124 Rustique Enterprises, Inc........................................................ 212 RV/MH Hall of Fame................................................................428 Seal Smart................................................................................. 118 Sedco Pier................................................................................ 218 Shaw Industries, Inc.........................................................313, 315 Style Crest, Inc....................................................................115, 117 Sunlight Creations................................................................... 301 Tie Down Engineering.................................................... 225, 227 Top Flite Financial, Inc.............................................................203 Translift Sales and Services (Tink)........................................... 102 Triad Financial Services.................................................... 107, 109 Universal Utilities, Inc.....................................................506, 508 *Vanderbilt VMF Homes.......................................................407 *Vanderbilt Mortgage & Finance, Inc................................402 WESCO Distribution................................................................ 200 Whitley Mobile Homes, Inc................................... 500, 502, 504 Wisconsin Housing Alliance....................................................430 Wisely Commercial Realty.......................................................302 *New Exhibitors for 2018

2018 LOUISVILLE SHOW take, a guided tour. This one will get you – the museum’s website says you’ll not only explore the heart of Ali, but reflect upon your own “individual values, inner strength, character, and what makes you the greatest person you can be”. www.alicenter.org

LOUISVILLE ATTRACTIONS: CONTINUED FROM PAGE 22

Speed Art Museum

Yet another in the West Main District, built in 1925, the Speed is the oldest, largest art museum in Kentucky. This one is for the art lovers; if you take your time, you could spend all day here. Or, simply check out a few highlights, such as

they take you on an up to 2.5-hour adventure -- you’ll even learn a little geology. Visitors must be at least 7 years old and weigh between 55 and 285 pounds. www.louisvillemegacavern.com

The Kentucky Derby Museum and Churchill Downs Racetrack

In two floors of exhibits, experience the entirety of a Thoroughbred horse’s life -- from birth to their first race day. Your heart will pump as you watch an 18-minute documentary at one of the world’s only 360-degree theaters. You’ll experience not only the history of the derby and of horse racing itself, but have a chance to try it out on a racing simulator. Outdoor portions of the walking tour may be on hiatus for the winter, but there’s still plenty to see inside the museum! www.derbymuseum.org

Evan Williams Bourbon Experience

Just south of the Muhammad Ali center, this bourbon distillery boasts tasting rooms themed for different historical eras. Bourbon, a type of whiskey, originated in Kentucky more than 200 years ago. Evan Williams was the first commercial distiller. Today, 95 percent of bourbon is made in Kentucky, and a third of that is made within Louisville city limits. With flavor possibilities ranging from cinnamon to caramel chews to cornbread, you might find yourself enjoying a taste test, even if whiskey isn’t necessarily your thing. At the Evan Williams Experience, you’ll get to taste four bourbons and learn how they’re made through the guided “Speakeasy” tour. If you simply want to toss back a couple of drinks without the hustle of a tour, check out local favorites Angel’s Envy or the Jockey Silks Bourbon Bar, both located in the West Main District as well. www.kybourbontrail.com

For more Louisville Area attractions, visit: GoToLouisville.com

Rembrandt’s Portrait of a Forty-Year-Old Woman, or take a guided tour. Not only does this modern space house art, the Neo-Classical museum is itself seen by many as art. The Speed boasts art from all over the world, sorted geographically by floor. You’ll see 19th century Nigerian beading, a fine collection of European Fine Arts and Decorative Arts, Flemish paintings and a sculpture court, as well as a new avant-garde and modern art wing. If you’re bringing kids, don’t worry, they’re given sketchbooks and tasked with a scavenger hunt. www.speedmuseum.org

Louisville Mega Cavern

Carved out of a massive limestone quarry over a period of 42 years in the 1800s, this man-made cavern features 17 miles of underground passageways. The largest building and recycling center in the state, recycled concrete, brick, block and dirt create passageways and rooms, but they still barely make a dent in the 4 million square-feet of space. The six underground ziplines here are the main attraction. You’ll follow tour guides as

26 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

ABOUT THE SHOW The Louisville Show is your source for the newest manufactured home designs, the latest technology, the best suppliers, and the newest amenities and system-built options available in the industry. The 2018 Louisville Show will treat you to a spectacular array of new homes, products, and services. Whatever your inventory requires, you’re likely to find the most exciting singlesection and system-built homes. This year’s show will have the most factory built homes shown indoors anywhere in North America with 57 model homes on display! And the seminars for 2018 will continue the tradition that has brought ‘standing room only’ crowds and enthusiasm.

For more information, visit TheLouisvilleShow.com

We Have the Data

The #1 Provider of Market Data for the Manufactured Housing Industry Nationwide From high-level national statistics, to detailed rent, occupancy and sales activity, Datacomp has the information the industry relies on to make informed decisions. We can provide the timely and comprehensive answers you need for success in today's competitive housing market. • Rent & Occupancy • Community Lists & Attributes • Trends & Historical Data • Home Sales/Rental Activity

800.588.5426 | DatacompUSA.com/JLT MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

OPPORTUNITY

Seize Opportunities for Growth in 2018 By Richard Jennison, President and CEO of the Manufactured Housing Institute

ith economists predicting a continued growing economy in 2018, the demand of firsttime homebuyers to finally enter the market will be strong. The nation has been experiencing a shortage of new and existing homes for sale at the lower end of the market, which according to the National Association of Realtors® explains the lackluster entry of first-time homebuyers into the market. Economic expansion in 2018 means demand for housing will continue to outpace supply, leading to increasing rental costs. Manufactured housing is the answer for those first-time homebuyers who are anxious to become homeowners. MHI has been at the forefront of assessing how manufactured housing can fill the inventory challenges that have left so many first-time homebuyers on the sidelines. Our organization currently is undertaking a research initiative that seeks to better understand the needs, preferences and attitudes of homebuyers who we expect to lead the market in 2018 and beyond – millennials, step-down baby boomers and immigrants (see page 47). This multi-faceted, comprehensive research has confirmed that a substantial opportunity exists for the manufactured housing industry to meet the demand for housing from the market segments that economists anticipate will be most active buyers in the coming years. MHI’s research shows the features and preferences of these market segments, giving our industry added information to design homes that appeal to the homebuyer of 2018. While those constructing site-built homes are not producing homes below the $200,000 price point, manufactured homes are the most affordable homeownership option in the market today. The average sale price of a new manufactured home is $70,600. With a lack of inventory for entry-level homes and an expanding economy making it possible for many

new buyers to enter the market, now is the time for manufactured housing to capture the market segments that the site-builders have not pursued. MHI’s research shows the industry is poised to create a significant amount of value, both in terms of revenue and new housing stock for potential homeowners. The findings of this research initiative are confirmed by the solid growth in manufactured home sales year-overyear since 2009. For 2017, HUD Code shipments will reach more than 90,000 homes – an increase of 11.5 percent over last year. By 2018, MHI projects that an estimated 100,000 HUD Code homes will be shipped. In an article on 2018 predictions for the housing market, the Chief Economist for Zillow argued that the “inventory crisis leaves few options for millennials, a huge generation just entering the market that genuinely wants to become homeowners, but can’t find anything to buy.” Manufactured housing is a key answer to this supply problem, and MHI and its partners are ensuring that the industry has the information and tools needed to seize this opportunity. In addition, MHI is working to connect these 2018 consumers with our members. One way we are doing this is through our Facebook page, which highlights manufactured homes on the market and has attracted almost 200,000 followers – mostly consumers. MHI’s social media efforts help these potential homebuyers see the beauty and benefits of manufactured homes and facilitates connections for them with manufacturers, lenders and communities. In addition to developing the information the industry needs to innovate and respond to the market, and connecting potential buyers with our members, as the national advocate for the industry MHI also is working to ensure federal rules and regulations do not impede the industry’s ability to build quality homes at affordable prices.

28 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

MHI monitors policy developments across the federal government and engages on all policies that impact manufactured housing or limit consumer choice. In 2018, MHI will continue working to enact legislative and regulatory measures to ensure financing availability for consumers seeking to purchase manufactured housing. We also will call for elevating the profile of manufactured housing within HUD and work to update and improve the HUD Code to ensure the industry can deliver quality, state-of-the art and affordable homes to meet the demand of the 2018 market. MHI will fight against any federal actions that expand regulatory programs into state functions or conflict with accepted building practices. Because MHI has worked to create a strong voice in Washington, significant progress is being made to ensure new laws and regulations do not negatively impact our industry’s growth potential. Through aggressive lobbying and targeted activation of our grassroots network, we can get a coordinated message out to key policymakers when it counts. There is strength in numbers, and thanks to our growing membership we are able to make an impact. Our voices are being heard loud and clear. Manufactured housing is the key to homeownership for a rapidly growing segment of the population and MHI is here to help the industry seize the opportunity. MHV Richard Jennison is President and CEO of the Manufactured Housing Institute in Arlington, Va. MHI is the only national trade organization representing all segments of the factory-built housing industry and the only manufactured housing trade association registered to lobby in Congress on behalf of the industry. MHI members include home builders, lenders, home retailers, community owners and managers, suppliers and more than 50-affiliated state organizations.

E F F I C I E N C Y A N D C O N S E R VAT I O N A secure gateway hangs on a pole above a manufactured home community served by Metron Sustainable Service. Information from all of the residents’ meters is collected and sent back from the gateway for reporting and billing. Courtesy photo.

MH Community Owners Discover the Benefits of Submetering By Patrick Revere, Managing Editor for MHInsider™

Better tracking, cost-recovery and water usage practices benefit communities

ubmetering of water utilities in manufactured home communities has been an increasingly relevant investment for property owners, particularly as existing older communities in recent years are handed down to younger generations or are folded into large, corporate portfolios. Submetering involves the installation of a water meter for each home

SUBMETERING

QUICK FACTS • Average cost per home of submeter installation: $300 • Average return on investment for property owner: Within 1 Year • Typical ongoing costs associated: (Zero through 10 years) $200 • Average replacement: between 10-20 years – Infinity Billing Services

in a land-lease community, which enables property owners to bill directly and more accurately for the use of household water. “The changes can be dramatic in utility usage and costs,” national sales manager for Apex Billing Solutions Jacqueline Causey Schroeder said. “Individual water use really is too volatile to accurately track and charge as part of rent from month to month. And rent isn’t something that you want moving around in cost.” Apex is based in Columbus, Ga., and has been in business for a dozen years, serving multi-family properties, manufactured housing, master planned communities, as well as some commercial retail and athletic facilities in its region, to the Midwest and Eastern Seaboard. “Manufactured home communities are a large part of our customer base,” Apex’s VP of Sales Zach Beck said. “One of the primary differences with MH communities is that everything is above ground. This leaves the systems more vulnerable to weather damage and they can become recipients of incidental damage or vandalism,” Beck

said. “With today’s technology, we can dial into someone’s home and figure out problems and solve them a lot faster and more efficiently than we’ve been able to previously. “We create reports that verify rates and tariffs are being applied properly,” he said. “And we’re able to fish out if there are any abnormalities in billing and get it fixed before it affects a customer’s bottom line.” The submetering technologies fit right in with other water-saving measures, such as low-flow toilets and aerator faucet adapters that keep costs under control. Infinity Billing Services provides submetering for manufactured home communities in the Midwest and in the Carolinas and Georgia. Steve Francis, the owner and president of Infinity, said submetering simplifies the billing process with a minimal initial investment. “A lot of property owners don’t send a bill for rent every month, they just expect residents to know that payment is due,” he said. “The reason most communities CONTINUED ON NEXT PAGE

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

E F F I C I E N C Y A N D C O N S E R VAT I O N submeter today is because it creates an avenue for accurate recovery of costs, and you end up seeing a 15 to 30 percent reduction in usage.” “Suddenly it’s a considered cost that translates into people using less water, and residents who are more inclined to fix leaks,” Francis said. Francis said Infinity bills about 12,000 of its customers’ residents, most of whom are in Michigan, Ohio and Wisconsin. This has become all the more important in recent years, with the consistent national rise in water rates, as well as added awareness and emphasis on environmental conservation. A new account typically will receive a two-month trial run before billing begins, Francis said. When billing begins, residents are asked to pay within three weeks. Rick Minogue is general manager for Metron Sustainable Services of Boulder, Colorado. “Submetering is pretty much all we do. All of our services relate to it,” he said.

CONTINUED FROM PREVIOUS PAGE

Metron works in 30 states, including all of the western states. Its parent company installs meters on a contract basis for large, metro areas. Minogue said his

Sherry Armijo of Metron Sustainable Services assembles the meter’s “brain”, which is encased in a protective gel to keep out moisture.

group primarily services manufactured housing communities, with a substantial amount of its business coming from a contract to serve residents at RV Horizons’ properties. “There are a couple of things that really distinguish us, and what’s most

important is our quality of data and an hourly report on the web portal we make available customers,” he said. “The other thing about our system is that we don’t need power on-site or web service on the property, and that’s different from a lot of what’s in the market today. “For a lot of owners, particularly in remote areas, they don’t have the resources to manage that type of on-site infrastructure,” Minogue said. “Many of these communities don’t have general management on site even, or perhaps one person who resides in the community.” Metron fabricates and assembles much of its product in Colorado, including the “brain” of the meter that is encased in a water-resistant gel to protect the electronics. “If you have a hollow cavity, there’s micro-condensation on the electronics. We found this way of filling it with the inert gel and baking it in a microwave oven,” he said. “We have meters in Houston and Florida, and with the recent storms, we only lost five meters.” MHV

FINANCING FOR

LAND-LEASE COMMUNITIES

VMF.com/CommercialLending

FLEXIBLE TERMS:

CASH OUT PROGRAM:

Typically close within 45-60 days of complete loan application.

You will be able to cash out your equity as your park grows.

Amortized up to 30 years.

No refinance required.

Subject to required LTV & cash flow.

Minimal Fees.

1st lien priority required

ALL LOANS SUBJECT TO CREDIT APPROVAL Contact Kurt Wilkerson & Chris Donsbach at 800-309-5008 Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http: //www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616.

30 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Offered in select states

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

32 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

COMMUNITY PROFILE: GREENBRIAR

Greenbriar’s Fountain of Youth

reenbriar, a manufactured home community east of Indianapolis, seems to have found the proverbial fountain of youth. “It’s really coming into its own,” said Jacob Cohron, sales manager for Greenbriar and the third generation in his family to operate communities owned by Cohron’s Homes. When talking about the 300-pad all-ages community, the latest generation of MH professionals is only part of the current youth movement. Jacob and his father Brad Cohron have been busy infilling the 1960s-vintage property with new homes as well. “Financing is a touch easier in the last couple years to be able to do that,” Jacob said. “We buy somewhat dependent on lot size, but we don’t have a fixed program. We buy the best of what’s available and what makes sense for the space. Recently it’s been more about what can we get in a timely manner, because factories are so busy right now.” Cohron’s owns seven communities all within a couple miles of each other, which allows the owners and residents to benefit from efficiencies that come from a roaming management, maintenance and service teams. Lot rents are $340 with water, sewer and trash pickup included. In the spring, residents from all 1,800 spots are invited to Cohron’s Annual Strawberry Festival. “We show them the latest homes, offer them some strawberry shortcake and have a good time,” Brad said. “We make a big day of it.” When financing tightened up more than a decade ago, Cohron’s started its own finance company and were able to keep occupancy rates high enough to avoid entering the rental market. In the last four years the finance company’s business has doubled. “We’re selling life here,” Brad said. “We’re between the apartment and the

larger neighborhood homes, and when people get a look at our properties it all seems to make sense.” And it may seem like a minor affair, but the maintenance team makes a point of keeping sidewalks and access points in good shape, as well as shoring up foundations and pouring new driveways. “We make a point of providing an affordable place to live that is both safe and clean. We have storage available for residents who have boats, campers or RVs,” Jacob said. “Also, we’re very close to Fort Harrison State Park, which is a good draw and helps accentuate the healthy outdoor lifestyle our residents love.” The community is about a six-minute car ride from the links at Winding Ridge Golf Club, is very close to a variety of shopping centers, and has easy access to the 465 loop that winds its way around the Indianapolis metro area. “At Greenbriar it’s all ages, but it tends to have a bit smaller homes than some of our other communities,” Jacob said. “So, there’s about 60 percent retiree residents, and younger families in first homes too. It’s a good mix. “There are a lot of people in Greenbriar who have lived there for 30-plus years,” he said. MHV

Community Quick Facts

Greenbriar 9901 Pendleton Pike, Indianapolis, IN • All ages community • 300 Homesites • Built in 1968 • Home Prices: $25,000-60,000 • Monthly Lot Rent: $340

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

C O M M U N I T Y P R O F I L E : H I C KO R Y A C R E S

Hickory Acres Creates a Casual, Fun Lifestyle for Residents Community Quick Facts

Hickory Acres 1218 Highway 44 West Shepherdsville, KY • All ages community • 176 Homesites • Built in 1997 • Home Prices: $25,000-$80,000 • Monthly Lot Rent: $295

ickory Acres in Shepherdsville, Ky., is a manufactured home community south of Louisville that feels one part farm and another part college campus. “We have a signature entrance, a full court basketball court and open green spaces for playing football, soccer, throwing Frisbee and just gathering together,” co-owner Tony Wilcox said. “It’s important for us to have shared open spaces where neighbors can meet and kids can play.” Situated between Salt River and Mud Run creek, just off route 44, the area is very much about natural settings and bucolic views. And country music, almost a way of life in a region of the Upland South called “Kentuckiana”. Wilcox owns Hickory Acres with his brother Brad Wilcox and longtime friend Mike Whobrey. A Louisville radio personality paid a visit and set up a live remote at Hickory Acres during an August community cookout and community gathering. There was free face painting, multiple bounce houses, ice cream and giveaways. Also, the community held a raffle for a new 4’x4’ home deck, with all proceeds going to a local children’s hospital. The Q103.1 morning show with Dingo and Jess covers a lot of ground, but much of it is dedicated to “faith, family, friends and real conversation”. And country music, of course.

General Manager Kristie Cundiff, who oversees Hickory Acres and its neighboring sister community Autumn Leaf, appreciates these virtues as well. “It’s a big event for our communities, to show appreciation for all of our residents and provide time for neighbors to come together,” Cundiff said of the cookout. “It’s become an annual tradition.” This time of year Hickory Acres and Autumn Leaf are preparing for the annual holiday decoration competition, another voluntary and widely appreciated tradition. Wilcox said the personal touch and the thoughtful approach to property management is what sets the communities apart from most, to include Autumn Leaf’s being honored by the Kentucky Manufactured Housing Institute as 2016 Community of the Year. “We’re in Kentucky. This is not Florida, Arizona or California. To that end, this is not a resort community, but rather, an affordable housing community,” Wilcox said. “That said, we are very proud of the

Hickory Acres Community Manager Kristie Cundiff mugs with Q103.1’s Dingo during a summer cookout and resident appreciation day. – Photo contributed by Hickory Acres

quality and amenities offered in both of our communities. We are committed to strong and visible management, and we strive to treat all people fairly, consistently and with respect in everything we do.”

34 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

At left, Dave York, general manager for the local Valumarket grocery store, has brought out a team of employees for consecutive years to grill hamburgers and hotdogs for community residents at Hickory Acres. – Photo contributed by Hickory Acres

“We have try to have the heart of a teacher when we explain things, and when we sell homes. We want to do the right thing always and ultimately provide a great place to live to our resident families,” he said. Hickory Acres is a 176-pad, all ages community with a mix of retirees and families. There are paved roads, independent electric and water metering, boat and RV storage, and an even mix of single- and multi-section lots with rents less than $300 monthly. Both communities allow small pets, and residents are always encouraged to invite friends and relatives for a visit. The community has a fresh and open feel that appeals to most anyone. And the books show it. Occupancy rates are consistently in the high 90s percentile. Wilcox said his properties see continuous investment in infrastructure as well as new homes in inventory, often from Fleetwood or Clayton. “New homes help a lot. Our properties were developed in 1997, so it’s a fairly new community. Most of the communities in the state are 50 years or older, so that’s another thing that sets us apart” he said. “My feeling is about 40 percent of the residents here bought new homes when we opened in 1997, and a majority of the rest have been here for more than a decade. It’s a stable community.” MHV

COMMUNITY PROFILE: MAPLE BROOK

A Destination Retirement Community in Reach of Chicago

hirty miles down Highway 57, just outside one of America’s greatest cities, is Maple Brook Manufactured Home Community, a destination in its own right for retirement-age home buyers looking for a quiet place that’s still close to the action. “A lot of people like Maple Brook because you’re close to all of the highways and have easy access to all the trains to downtown Chicago,” said Mike Dennis, sales representative for the Sun Communities property. “I always tell people to take a mental snapshot for when you’re shopping around. Remember what you’re seeing here.” Built in 1995 and purchased by Sun in 2014, the 150-acre, 441-home community is developed to the same specifications a residential neighborhood would be, including homes built on-site, 30-foot wide streets and deep-home sites with multi-section homes. Maple Brook has homes from Schult, Bonnavalla, Franklin, Fuqua, Southern Energy, Redman, Champion and four

plans from Skyline. All homes have garages, and most have two-car garages. “People look at the triple-wide homes and are in awe,” Dennis said. “They want to bring back friends to show them!” Dennis, who has worked at Maple Brook since its inception, said all of the homes are heavily insulated and come from the upper tier of homes available at the time of purchase. “We’re one of the newest properties in the area,” he said. “We have 120-foot lots and sidewalks in front of every home.” The community clubhouse has 3,000 square feet and includes a library. It’s an everyday meeting place for residents, and the venue for celebrations--from an annual Super Bowl viewing party to craft shows to a New Year’s Eve gathering--and can be reserved by residents for get-togethers of their own. Adjacent the property is the 20-mile long Old Plank Trail. “It runs through the south suburbs of Chicago,” Dennis said. “At 7am you can

see a lot of people from here out on the trail making good use of it.” “There also are four pocket parks, one for each quadrant of the community, and a main park near the clubhouse that’s used for bocce ball, horseshoes and shuffleboard,” Dennis said. MHV

Community Quick Facts Maple Brook Manufactured Home Community 21635 Ridgeland Avenue Matteson, IL • 55+ Community • 441 Homesites • Built in 1995 • Home Prices: $30,000 - $70,000 • Monthly Lot Rent: $882 with taxes included

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

C O M M U N I T Y P R O F I L E : M E L R O S E V I L L AG E

Improving Life for Residents and Engaging the Wider Community “It’s amazing what you can do when you have that many neighbors willing to contribute”

elrose Village in northeast Ohio was purchased by UMH Properties in 2013, and since that time occupancy has improved to more than 90 percent in the 293-site manufactured home community. “We have taken out over 50 older homes, brought in new homes, repaved

the roads, upgraded the street and entrance signs and renovated the clubhouse,” said Abby Goldberg, director of marketing for UMH. Melrose Village also has received new playground equipment, a bus shelter for the school children in the commun-

ity and a decorative fountain in the community’s lake. Each month, on-site manager Jeremy Mitchell scans the community to award “Yard of the Month”, which is intentionally left a open to a little interpretation: Some months the honor will be bestowed on the owner of the most-improved yard, during a holiday it could be given to the resident who’s provided the most festive decorations and in spring the award could be based entirely on a high-quality floral arrangement. “The best part of managing Melrose Village, is listening to the residents’ feedback,” Regional Manager Angela Smith said. “The residents who lived here before we bought the community have seen a tremendous transformation. They are so happy that UMH is here making improvements. Residents love how they can see the brand new fountain on the lake, and the views are spectacular.” Last August, Melrose Village hosted former Cleveland Browns Running Back Kevin Mack, who signed autographs and

36 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

talked with the residents. More than 400 people showed up, including some from the wider community who heard about the event on a local radio station. “All of those things make a huge difference in creating a positive experience for everyone here,” Mitchell said. “We’ve also had Santa Claus come to our clubhouse, and kids came in from some of our other communities too. We had cookies and surprises for everyone. We had a coloring contest, which was great. And by the way, everyone won a prize. I’m pretty sure we would have had a revolt of some kind otherwise,” he said. In addition to celebrations in the community clubhouse, including a Halloween costume party, Melrose Village recently conducted a food drive, gathering non-perishable items for delivery to a local food bank. “It’s amazing what you can do when you have that many neighbors willing to contribute,” Mitchell said. “I wore myself out carrying food into Salvation Army.” MHV

Community Quick Facts Melrose Village 4400 Melrose Drive Wooster, OH • All ages community • 293 Homesites • Built in 1970 • Home Prices: $50,000-90,000 • Monthly Lot Rent: $337

C O M M U N I T Y P R O F I L E : OA K S O F R O C K F O R D

‘A Real Community Feel’ for West Michigan Seniors

evelopers of a premier Michigan active adult living community have made a statement in West Michigan with a new community built in a rural setting and with the amenities and perks many 55+ homebuyers seek in today’s market. Oaks of Rockford is situated outside of Rockford, Mich., in the Grand Rapids metro area. It has experienced swift sales during the initial two phases of development, and recently opened 49 new home sites for potential residents.

with a variety of design and upgraded options. The ranch-style homes feature a three-bedroom, two bathroom floor plan with an attached garage and covered porch. This pet-friendly community includes a 5,500 square foot clubhouse with full kitchen, party room, lounge and fitness facility. Oaks of Rockford also boasts onsite management and yard maintenance as well as planned activities and events. A barn and silo from the original property sits on the street-facing southwest

Aspen, Birch and Willow. Prospective homebuyers and residents can use a professional design center to create the home of their dreams by customizing tile, carpet, flooring and countertops. In addition to these customization options, each new home has a free flowing open floor plan, nine-foot and decorative trey ceilings, as well as crown molding, and modern stainless steel Whirlpool appliances. MHV

Community Quick Facts The Oaks of Rockford 11640 Townsquare Boulevard Rockford, MI • 55+ Community • 131 Home Sites • Built in 2014 • Home Prices: $124,000-153,000 • Monthly Lot Rent: $425

“There is a real community feel here, and that starts with the residents,” Becka Kruer, General Manager for Oaks of Rockford, said. “We feel very fortunate with the growth we’ve experienced, and the strong interest from potential residents who really understand what we’re doing and the value of this unique setting.” Established in 2014, Oaks of Rockford features Skyline and Adventure multi-section homes from 1,404 to 1,508 square feet plus a covered porch, each

corner of the property, which adds to the charm of the community. “By offering a variety of home models and customization options, our homes are as unique as the individual buyer’s personality,” said Brian Fannon, developing partner for the Oaks of Rockford. “Meanwhile, our diverse array of on-site amenities and activities ensure a fit and active adult lifestyle.” The community features fully decorated tour models for each of its available home styles including the Pine, Spruce, MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

Performance Equity Partners, Inc.

sell

Our chattel lending program allows you to on what you do best... manufactured homes and your vacancies.

focus

fill

We specialize in making Common Sense Approvals for Applicants with Low Credit Scores • Our loan program will help you sell your inventory • We can purchase and service your loan portfolio • We can help you convert renters and rent-to-own contracts into purchases Richard Voboril, General Manager (708) 478-5251 | cell (708) 751-1046 rvoboril@peplending.com

Currently Performance Equity Partners, Inc. is licensed in the following states: Colorado Minnesota Illinois Nebraska Indiana Ohio Iowa Texas Kansas Wisconsin Michigan

• • • • • •

• • • • •

Visit us at Booth 202 at the 2018 Louisville Manufactured Housing Show www.peplending.com NMLS #296804

Performance Equity Partners, Inc. is a member of Better Business Bureau of Chicago and Northern Illinois and is an Illinois Residential Mortgage Licensee.

38 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

SALES

The Sales Introduction and First Impressions By Ken Corbin, President at CallKenCorbin.com

"People don’t ask for facts in making up their minds. They would rather have one good, soul-satisfying emotion than a dozen facts."

s we begin this article, let me stress the importance of being yourself. I’ll be giving numerous ideas you can use; but not all of them will work with your personality. We’ll start with the initial introduction and, as you read, you will find unique and resourceful techniques to build on. Selling homes starts with a great sales introduction. It’s the first impressions that professional sales people want to give their customers, before the selling process begins. The items we cover will give you the training that leads to success. Think of this guide (and how you can add it to your sales role) so you can increase your income and develop your professional housing career. Here’s a proven sales tip on how to move homes: Make sure you can present a confident introduction to start the sales meeting with a potential homeowner. You’ll find out how to build your stunning sales introduction for selling homes.

The Introduction This stage of the sales process is the most important part of meeting with customers.

Learn how to do it well and you will close more home sales. As you grasp this training you’ll earn the most you can while enjoying a successful sales career in the manufactured and modular home industry. I’ll share with you not only how to sell homes, but how to build relationships that lead to repeat business and referrals from customers. You’ll enjoy meeting new customers as you start the sales process with a great introduction. There’s nothing more satisfying than selling more homes and earning more money in a market that rewards the very best. It takes time for a customer to make decisions about buying a home; although they’ll decide about you within the first minutes of your introduction. Never forget, this will be a two-way street. You’ll also be making your own judgments about the customer based on your first impressions. This is an important skill to learn. Sales depends upon the customer having a positive first impression about you and your company. I’ll be offering ideas for you to build an effective introduction that can have a positive influence their first impressions.

Introducing Yourself Do you use your first name and sound informal? Are you Mr., Mrs., or Miss and keep the greeting formal? Neither are right or wrong. It’s important to choose a way to identify yourself and not just use it by accident. I’ve had the pleasure of working in different countries and cultures where there are expected ways to introduce yourself, and though sometime more subtle, the same principle applies here. So, it’s important that you consciously decided how you will introduce yourself. Ken or Kenneth. Angela or Angie. Robert or Bob or Robbie. If you use your first name, do you shorten it? Again, there is no right or wrong. Just be aware that shortening your name is more informal. It implies familiarity, and that’s great as long as the customer goes along with it. Make a choice for the right reason and project the image you want. Here’s something important to remember... whatever name you use MUST be identical to your business card. If I’m going to introduce myself as CONTINUED ON NEXT PAGE

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

SALES

CONTINUED FROM PREVIOUS PAGE

Ken Corbin, my business card is not going to say Kenneth Corbin.

Bringing Sales Introductions Into Conscious Focus

Some good questions you might ask yourself include:

Think about the reaction you want from your prospective homeowner. In those first minutes, what do you want them to be feeling, thinking, and reacting to? Consciously decide now what reactions you want. Ensure they are relaxed, comfortable, focused on you, and see the environment as professional. Of course, you are positive about your homes and your company. Insert no sales pressure, exhibit a trust in your knowledge, a trust in you as a person, a confidence when you’re talking... and most of all, that they like you. Take a few minutes and write down your own list if you’re serious about standing out as a housing sales professional. Highlight the rewards your prospective homeowner will receive by working with you. As time goes on, continue adding to the list, remember it and put it into practice as part of every sales presentation.

· How formal do you want my greeting with customers to be? · Would a more friendly, informal relationship be more effective? · What do most of your customers expect? The culture in the United States is rapidly changing with the influx of people from varying countries around the world; many of which are offended if you do not introduce yourself and treat them on a more formal basis. So, be aware of your customer, their age and how they approach you. Constantly be listening with your ears and your eyes!

It’s something that few people do in our industry and, of course, you’re always trying to differentiate yourself from the competition. If I’m working in a community, the lifestyle we’re offering is essential to your customer. What makes us different? Why should they not only invest in our home, but consider living in our neighborhood? When it comes to a community, not only must you have it set to memory, but reinforced with every piece of marketing material and literature you provide to the prospect. There’s three decisions this customer is needing to make: 1. Do they want to buy? 2. Do they want to buy your home? 3. Do they want to live in your community? Ken Corbin is an industry leader in helping communities and retailers sell more homes. He can be reached at ken@callkencorbin.com or 888-823-4945.

Earn Incentives for Built-in Efficiency AEP Ohio offers cash incentives for the sale of new energy efficient manufactured homes installed within its service territory. INCENTIVE*

EfficiencyCraftedTM

ENERGY STAR®

Retail Center or Community

$500

$750

HVAC Contractor or Distributor

$700

*Amounts listed are for 2017-2018. Subject to change.

Get a competitive advantage by offering your customers the quality they deserve at a price they can afford. For more program details, call (614) 360-9309 or e-mail AEPOhio-NMH@magrann.com.

40 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

SALES

A Sales Lead is a Terrible Thing to Waste By Dawn Highhouse, VP of Customer Experience for MHVillage®

ccording to Forbes magazine, businesses waste 71 percent of their leads. How do they waste them? By simply not contacting them. Yes, according to Forbes, only 27 percent of leads ever get contacted. As a company that provides leads to our industry, we see this all the time. Buyers who are ready to purchase a home call the Customer Service Team at MHVillage because they are interested in a listing they have found on the site. They have tried to contact the seller, but the seller hasn’t responded. When this happens, we do our best to connect people. But the point is that you spend money on your sales staff, your marketing and advertising, your office and your product. You do it because you expect it to pay off with sales. The quickest way to increase your return on investment? Make sure your sales people respond to leads, and respond quickly.

How quickly? The rep that calls a lead within five minutes has great close rates. Leads are impressed by a very quick response. In addition, the odds of qualifying a lead called within five minutes of contact increase 21 fold, when compared to a 30-minute response time, according to Ken Krogue, a leading sales researcher and consultant.

When a rep calls or returns an email right away, there is a high likelihood that the potential customer is still by their computer or phone. They might even be standing in front of the home in your community. The closer you can be to that point of contact, the better. However, the average call back time is 46 hours and 53 minutes. Let me ask you something, do you remember any of the websites you were surfing on nearly two days ago? Or think of it this way – say

Firms that tried to contact potential customers within an hour of receiving a query were nearly seven times as likely to qualify the lead (which we defined as having a meaningful conversation with a key decision maker) as those that tried to contact the customer even an hour later—and more than 60 times as likely as companies that waited 24 hours or longer. - James B. Olroyd Harvard Business Review

you stopped into an electronics store to buy a high-end digital camera. You have a couple of questions, you know basically what you want, but you want to make

sure you are getting the right piece of equipment. What if you were told you needed to wait 46 hours to see what you wanted to buy? Would you move on to another store? You bet you would! Not only does responding quickly let you talk to the prospect while they are thinking about your community or your homes for sale, it also shows a level of respect. Getting back to someone promptly shows you are interested in working with them and earning their business. So, what can you do? Start with a plan. Look at your different kinds of leads, and determine ways to connect with these potential customers. Let’s take a look at some types of leads: • In person: drive-bys and walk-ins • Referrals • Telephone • Email • Website form • Web traffic • Mobile Browsing Do you have policies and plans in place to capture these leads and market to them? By putting together a guidebook CONTINUED ON NEXT PAGE

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

SALES

CONTINUED FROM PREVIOUS PAGE

on how and when you want your leads handled, then your team can focus on what they do best – making the sale. Start establishing benchmarks. Maybe a five minute goal is a bit much to start. But can you set a policy that everyone who called or emailed within an hour of close of business gets contacted? Once that is running smoothly, can you back it up to within four hours, and so on? You know what will work best in your business, so what can you do to help your team formulate a plan to make more sales?

Sales studies consistently show that anywhere from 35 to 50 percent of all sales go to the agent who makes first contact. If you’re Vendor # 7 out of 10 attempting to contact a lead, what’s the realistic chance of creating an opportunity? - Insidesales.com Life on the Internet is increasingly shortening our attention spans. Which means that prompt attention to leads is even more paramount than it was years ago. And that five minute time frame? It’s going to be a moving target. Secret shop your staff to see how they do. Then make sure they have the tools and the plan to follow up right away. Your customers will thank you! MHV

2018 Winter/Spring Regional Industry Events Illinois Manufactured Housing Association Annual Conference........ May 15-17, 2018 Wyndham Springfield City Centre, Springfield, IL IMHA’s Annual Conference offers the best possible opportunity to ask questions and learn from industry experts on a wide variety of topics. Visit with vendors and network with peers.

Kentucky Manufactured Housing Institute Annual Conference............ June 19-21, 2018 Courtyard Marriott/Center for Rural Development, Somerset, KY “Stay in the KMHI Boat … Teamwork makes us stay afloat” A meeting of KMHI members that draws about 100 state professionals from all segments of the manufactured housing industry.

For more industry events, see the MHI 2018 Meetings and Events Schedule on page 49 42 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Prospects Can’t Buy? SmartMH HELPS! Next Step and Freddie Mac take prospects who can’t buy and return them “mortgage ready.”   

Improves credit with financial literacy. Identifies down payment assistance available. Secures pre-qualified/pre-approved status from partner lenders.

For retailers, the SmartMH program: 

Increases sales by converting prospects who don’t qualify into qualified buyers.

For less money than a classified ad, join SmartMH and gain access to this incredible program. Email Chris Nicely: c.nicely@nextstephomesus.org

www.nextstepus.org/smartmh

Home-Only Financing in Land-Lease Communities

Lending in: FL,IN,KY,MD,NC,SC,VA • NMLS# 368186

(434) 975-5088

info@parklanefinance.com • www.parklanefinance.com

Reach Manufactured Housing Professionals Who Need Your Products/Services

™ To Advertise, Call Matthew O’Brian

1-877-406-0232

Never Miss Another Lead NEW TEXT NOTIFICATIONS

Hot Leads Begin to Cool in Just 5 Minutes Now We Can Help You Reach Them Faster The number one best time to contact a lead? When they are still on MHVillage looking at your homes or communities. Know instantly when you have a lead with MHVillage's text notification feature. Whether you're a community owner, retailer or developer, MHVillage delivers more traffic, more leads, and more qualified prospects to keep your sales rolling.

More Traffic. More Leads. More Sales (800) 397-2158 | MHVillage.com Already a Client? Contact Us for a Complimentary Marketing Review of Your Account. MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

Photo Courtesy of Champion Homes

44 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

TRENDS

Stay Atop Trends to Meet Customer Needs in 2018 By Patrick Revere, Managing Editor for MHInsider™

he manufactured home buyer is becoming more discerning with each new year, and the top home builders and retailers in the business are taking notice and responding. Customers want the latest offerings with their home; the architecture, designs and color schemes they see on their favorite HGTV show. At The Louisville Manufactured Housing Show some of the market leaders brought in a collection of homes that were built to surprise and inspire.

been popular. So, we are implementing more of those natural colors.” Black, white, grey and brushed wood are mainstays, but some of the latest colors can add “pop” to the room. Some of the demand for this, she said, has been the millennial buyer. “Finally, navy blue has made an impression in the market,” Davidson said. “That’s been a real statement. I also use some soft blue and greens, but there is no implementation of a dominant color. That’s because you have to leave to the

Photo Courtesy of Fleetwood Homes

Tammie Davidson, national interior designer for Champion Homes, said the mid-century modern look has remained a strong customer preference, but has extended from the décor to other areas of the home as well. “That mid-century look is back, but in the cabinetry and finishes as well as how a home is furnished,” she said. “In our southern markets we’ve introduced a lot of contemporary looking materials. Our dealers feel we’ve done a good job with that, but have asked to also include some of the rustic elements that have

homeowner the ability to put their feel in the place. “You have that contemporary residential look with flashes of color so that if the customer wants to change or implement something you can do that without changing everything.” Shiplap panel and flooring in a brushed white or natural wood tones has stayed strong, but Davidson says she’s been working with suppliers to gain a layered effect with that same product. “We’re creating patterns for a layered effect on panel or vinyl flooring that gives

that wood grain more of a visual depth,” she said. “The wood is staying but you need to keep it fresh.” Lindsay Ellis is the director of property marketing for Equity Lifestyle Properties. She works with community managers to ensure homebuyers see the amenities they desire when touring a home. Ellis said among the top requests from customers are upgraded appliances and flooring. “These features go beyond what’s offered in the standard home. So, we help put these packages together, whether that means specifying product so the home comes with these amenities or ensuring the availability to be added on.” Along with a push for upgraded finishings is the desire of homebuyers to have an en suite bathroom and room for storage. “That’s a master bedroom with an attached bathroom that likely has a double vanity and would include plenty storage space,” Ellis said. “There’s a much higher demand than ever for walk-in closets, as well. This is one of those things that people get excited about when they’re walking through a home.” Other attributes homebuyers comment on is an open floor plan and an abundance of natural light. “Whether that means more windows or bigger windows, it’s something that nearly every homebuyer appreciates. And energy efficiency is in high demand, from appliances to windows and doors, as well as HVAC system.” As for built-in features, the kitchen island continues to be held in high regard. “It’s one of the top two things that people ask for, because it’s an area of functionality, especially for entertaining,” Ellis said. CONTINUED ON NEXT PAGE

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

TRENDS

CONTINUED FROM PREVIOUS PAGE

“It makes the kitchen look very nice, and adds counter space and storage.” Mike O’Steen is a regional vice president for Cavco. “Our objective is to bring contemporary original floor plans to the market,” he said. “We also need to keep in mind, along with getting the customer Photo Courtesy of Fleetwood Homes

what they want, that keeping things simple and ready to go is essential. The biggest thing we’re hearing right now is that you can’t get a home fast enough. And that’s new. In years and even months previous that’s not been the case. “We want to be delivering on an order in six weeks or less,” O’Steen said. “That’s helping the customer and homeowner, creating an efficient delivery of homes.” With that in mind, Cavco has instituted foundational processes that allow the company stay efficient during times of heavy demand. The company will bring homes to Louisville that exclusively use vinyl on gypsum wallboard as opposed to a drywall product. This simple measure means builders have an entire systemic component to the process they no longer need to consider; allowing added time and attention to the finer options customers seek. One of the homes that will show in Louisville is a multi-section home intended for private land, which is a large portion of the sales Cavco and Fleetwood’s dealers see in Tennessee. “This is a mid-level home that has a living room and den layout, ceramic tile walk-in shower and a free-standing tub. There are four bedrooms, and two bathrooms,” O’Steen said. “In terms of trends, the shower is very popular. It’s a 48x72” shower with no door, and you just walk in and straight to the shower head.”

The home, which has yet to be named, is bigger – at 32x76’ – than any house Cavco has brought to Louisville in more than a decade. The other multi-section home, a 28x62’ home from the Canyon Lake series, is a “packaged up” house with a lot of options. “You come into a foyer and have a formal dining area,” said Wade Wells, the general manager for Fleetwood in Lafayette, Tenn. “The master bath is a new set up with the walk-in tile show and free standing tub. We have a large kitchen with a lot of storage, and a gathering center in the middle of the kitchen. This is a spin on the traditional island, but it has a thicker bar surface and is surrounded by bar stools for people to gather. It complements the formal dining area as a less formal gathering space.” The home also has spacious bedrooms with walk-in closets and built-in cabinet storage, as well as a nice utility closet and designed coat racks. Fleetwood’s other show home also is from the Canyon Lake series, but is a 16x76’ single-section floor plan that can meet the size restriction of many manufactured home communities. “This has a foyer entrance too, which is rare in a single wide,” Wells said. “One of the things that’s been good for us in the last couple years has been the rustic looking ceiling beam, with a fluted finish and accent grooves that adds to the look from the entry way.” Another leading manufacturer attending The Louisville Show is Champion Home Builders, which sells Redman, Dutch Housing and Fortune Home brands. “We’re showing four homes at Louisville, including a pair of Champion Community Series Homes, one single-section and one-multi section,” Champion Home Builders General Manager Jay Photo Courtesy of Fleetwood Homes

46 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

Ciokajlo. “Specifically, the single-section home is a new, unique floor plan. We’re really excited for attendees to see this. It has 4-inch canned lighting, new colors and a new kitchen butcher block island. “The floor plan has an entertainment center, which is a fixed architectural piece that most single-section home would not have.” The bathroom has an Agile shower, which is a brand many consumers ask about, he said. Jim Lashbrook, the sales manager in Topeka, Kan., for the Redman brand, said a primary trend in 2018 will be finding ways to abide by community size restrictions with homes that will surprise. “When we go into a show with a floor plan we want to discuss the precise marPhoto Courtesy of Champion Homes

ket we’re looking to attract,” Lashbrook said. “A lot of the communities we look at have older, smaller spaces. And we don’t want to build a bigger house for the sake of building a bigger house, we want to be able to satisfy space restrictions with as much value as we can pack in. It’s small, well thought out and useful. “You don’t feel cramped,” he said. “There’s a nice living room with plenty of storage space. It’s airy and inviting.” Lashbrook said most of the customers who walk into a new Champion Home Builders model have one initial comment. “Wow, I didn’t know you could do this.” “We want to drive awareness and surprise people with what we can do with a manufactured or modular home,” he said. “Even if you were in the market, or even bought a new manufactured home five years ago, the models that are being made today will really astonish the buyer. “It’s what they see on HGTV or House Hunters and they fall in love,” Lashbrook said. MHV

TRENDS

MHI Works With Consultant to Engage Potential Customers on the New Factory-Built Home By Patrick Revere, Managing Editor for MHInsider™

he Manufactured Housing Institute (MHI), as the MH industry’s largest national trade group, works to represent the many facets of factory-built housing in the United States. In recent months, MHI has collaborated with a consulting group to better understand gaps in the industry as well. Late last year, after months of work, consultant Chris Fisher of Ducker Worldwide presented to professional audiences in Orlando, Fla., and Chicago about a research project that addresses the concerns of emerging segments of buyers for manufactured housing. At The Louisville Manufactured Housing Show, Fisher and MHI President Dick Jennison will have their largest audience yet. The two are prepared to unveil deeper detail in what might be an altogether new type of factory-built home. Information shared in Louisville can be considered a midpoint in the process toward better understanding and serving three of the most predominant emerging customer segments for manufactured housing. The yet-to-be-named home is entering “go to market” phase-2 in the research project, a concept that industry professionals see as an answer for empty-nester downsizers, millennials and buyers who have recently immigrated to the U.S. with limited financial means. “This really is like a better modular series home that brings in some of the most effective elements of factory built homes, but has other elements more common to modular or site-built homes,” Fisher said. The resulting home would need to address a variety of concerns for potential buyers, including energy efficiency, use of

new technologies and the potential to be sited in a community or on private land. Built to HUD Code, the home likely would cost between $70,000 to $220,000, have a 5/12 roof pitch with asphalt shingles, and would use a floor plan from between 1,400- and 2,200-square feet. “It would allow for different elevations, bump outs, and an option for a front loaded garage,” Fisher said. “The research we’ve done with underserved homebuyers details just how different these audiences are.” In 2016, Fisher kicked off phase-one research to address these underserved home buyers. “Their hypothesis was that there’s a lot of potential buyers who occupy a gap between the double wide and traditional site-built home,” he said. “Who are they, what do they need, do they like the concept and do we get enough feedback to move forward?” The concept has been received favorably, Fisher said. And the feedback, set to be detailed in Louisville, answered many of the lingering questions.

When tested against a sitebuilt or stick-built home, more than 63 percent of consumers Ducker Worldwide interviewed indicated the preference for the new manufactured home. “Those are very high numbers when compared against site built homes,” Fisher said. “We’re excited for people to hear about what we’ve been working on and how it may affect end users and the market as a whole.”

In addition to naming the new type of home, phase 2 of the project will involve market positioning, messaging, sales structure and a much deeper look at how lenders will view the financing of the new offering. But Fisher and Ducker Worldwide are still working on the home finance portion of the project. “Part of that will be legislation, and we also need to be able to understand better how this home will be appraised,” he said. Much of this work will be conducted hand-in-hand with MHI. Fisher said he anticipates chattel lending to continue as a primary contributor to available finance options for the new factory-built homes, depending on how they’re used. The new class of home also should take advantage of what’s happening in Washington to make other forms of financing accessible for manufactured housing. “We expect that this home will be able to sit in a neighborhood among site-built homes and be of similar a value,” Fisher said. That type of crossover should bring more buyers into the factory-built space and bring about industry-wide growth. Fisher said leading manufacturers are in conversation with Ducker Worldwide and MHI about this new home initiative. “There’s a lot of excitement, and any pushback we’ve seen is mostly about understanding a new product and how it all fits into the production capability,” Fisher said. “We have to think broader and bigger than the 90,000 to 100,000 units the industry has been focused on, and look at something that might be able to raise us to 300,000 units. It is a very strategic effort.” MHV

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

FINANCING

Chattel Finance of Manufactured Homes in 2018 By Ken Rishel, Managing Partner at Rishel Consulting Group

hange is a part of business and for those who want to continue to thrive and prosper, and the ability to adapt is paramount to continued success. The manufactured housing industry’s roots go back to horse-drawn covered wagons and have progressed through a series of changes that included 8-footwide and 30-foot-long trailers easily pulled behind cars to be placed into trailer camps, to the multi section homes, often with attached garages sited in elaborate communities today. The same is true for the time payment conveyance of these homes when a buyer wants to purchase a home but lacks the resources to pay for the home in full at the time of purchase. Over the last 70 years the size of required down payments have shrunk as the lengths of term have increased substantially and purchase prices have risen. In the 1990s, there were more than 20 national finance companies competing to finance the purchase of manufactured homes. The fierce competition encouraged a loosening of credit standards and even employees of these lenders routinely looked the other way at fraudulent applications and income verifications, as well as non-existent down payments. The constant joke was that all a sales operation needed to do was to find “get-

me-dones” who could “fog a mirror”. Authors such as Gubb Mix, myself and Marty Lavin began writing articles in the mid 1990s warning of an industry collapse; an inevitable collapse of purchase money financing. All of that began to change in the late 1990s as more and more of these firms began to experience borrower non-performance rates that were getting harder and harder to cover up, and began either going bankrupt or exiting the business of making purchase money loans. At the end of the millennium, there were only a handful of lenders remaining and most of them had seriously raised their credit standards, which caused a major constriction in home sales and also negatively affected the ability of communities to fill, or keep filled. By 2004, the entire industry was tanking. And a great majority of industry was angrily waiting for some magical return of the lending philosophies of the 1980s and 1990s. A few of the large retailers and community retailers began to explore various self-help solutions in the form of seller finance strategies. Because these efforts were fairly small in the larger scope of lending, regulators were pretty much unaware of these efforts, just as the seller finance operators were either unaware or ignoring the laws, rules and

48 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

regulations that governed their finance activities. This “flying under the radar” seemed to work pretty well until the real estate lending crisis caused the advent of the SAFE Act and the subsequent passage by all 50 states. Manufactured home chattel finance was thrown into the same category as real estate mortgage lending. This inclusion was repeated with the Dodd-Frank Act, which added many new regulations as well as the formation of the Consumer Financial Protection Bureau, whose staff was tasked with enforcing older and recent rules and regulations, and also creating new ones. Unfortunately, many of the manufacturers did not respond well to the crisis despite the fact they were being prevailed upon to form captive finance companies in much the same manner that the vehicle manufactures did in the early 20th Century. As a result, many did nothing, and many went broke or were absorbed by the larger manufacturers that were offering some type of solution to the finance crisis. Gradually, a number of community owners and a few retailers began to get the message and they invested the necessary time and capital into forming their own captive (or related) finance companies, some with considerable success, and some not so successfully.

FINANCING

At the same time, various schemes were being used by many community owners to “fly under the radar” of regulators to also help them “solve” their problem of fill, if only temporarily all the while hoping not to get caught, or to be uncovered and determined illegal. These combined activities began to create a resurgence of both new and used home sales, causing several smaller and midsize manufacturers to comment on the large percentage of new home sales that were as a result of those seller finance efforts. By 2013, several new outside finance organizations had entered, or re-entered, the business of making purchase money loans to consumers who wanted to buy and live in a manufactured home. One of the notable emergences was Alliance Credit LLC led by Rob James Jr. who was the son of the man who had run MCI Financial, a well-known regional lender in the 1990s. Other regional lenders began to either re-energize or emerge to help fill the void. One organization, Park Lane Financial, heavily involved in

running a related finance company for homes sold and placed in communities by a sister organization, decided to expand their finance reach and started financing manufactured home purchases in a number of states in communities they did not own. Triad Financial Services added to their services by offering their new COP program targeted to community owners who had the money to fund loans, but not the resources or the will to start their own related finance company. In January of 2017, an educational seminar at The Louisville Show introduced a raft of outside finance organizations interested in financing the purchase of manufactured homes by consumers as well as various other programs prospective buyers and residents could utilize to facilitate the time transfer of ownership if conventional financing wasn’t a good fit. The 2018 Louisville Show will host an educational seminar with guest panelists discussing some of those unconventional

methods as well as the more conventional methods of finance. At last count, there were 23 national and regional lenders making purchase money loans to consumers, which is a vast increase in outside lender viability since the crash of 2000. In additional, manufacturers like Cavco and Champion have joined the ranks of Legacy and Clayton with financing programs. More than 500 community owners and retailers have set up their own captive/ related finance companies and currently hold in excess of $2 billion worth of loans on homes in their sister organizations. What once looked bleak in the availability of manufactured home chattel finance, now looks bright. Despite the SAFE Act, the Dodd-Frank Act and other excessive government interference, the retailers and community owners who need viable solutions for customer finance now have all the answers they need. MHV

MHI 2018 Meetings and Events Schedule MHI organizes several annual events where industry members can connect and learn about current issues impacting all segments of the manufactured housing.

SAVE THE DATE

MHI Winter Meeting Feb. 4-6, 2018 Ritz Carlton New Orleans, LA

MHI Summer Legislative Fly-In June 25-26, 2018 Washington Court Hotel Washington, D.C.

MHI National Congress & Expo for Manufactured and Modular Housing April 24-26, 2018 Paris Hotel Las Vegas, NV

MHI Annual Meeting Sept. 23-25, 2018 Paséa Hotel & Spa Huntington Beach, CA

Developing with Manufactured Housing Seminar April 24, 2018 National Communities Council Spring Forum April 24, 2018

National Communities Council Fall Leadership Forum Nov. 7-9, 2018 Westin Michigan Avenue Chicago, IL

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

I N N O VAT I O N

SmartMH Prepares Prospective Manufactured Home Buyers By Juliana Ludema, Contributor

n a mobile home tucked in the mountains of Appalachia, Phyllis raised five children. By the time Stacey Epperson met her in the mid-2000s, Phyllis’ home had fallen into disrepair: The roof leaked, the toilet was falling through the floor and the septic system no longer worked. Worst of all, $500 of her $650 monthly income went to utilities. At the time, Epperson was working with a nonprofit that built homes for residents of Eastern Kentucky. Closing on Phyllis’ new home loan was what first showed her the extent of how expensive these old homes can be. In 1976, the U.S. Department of Housing and Urban Development established safety standards all manufacturing plants must follow. But more than 40 years later, two million homes built prior to this “HUD code” remain in use. These older homes not only age poorly, but energy expenses often cost residents, like Phyllis, in excess of 50 percent of their income, forcing them into persistent poverty. To address the problem, Epperson began Next Step in 2010, a nonprofit whose goal is to put all families on a firm foundation. A few years ago, Next Step introduced SmartMH, a program that seeks to level the playing field for prospective manufactured homebuyers. The program enables people from diverse economic backgrounds to buy their own homes, giving them independence. It also shows clients that manufactured homeownership can be simultaneously affordable and something to take pride in. After switching to an energy-efficient home, in Phyllis’ case, the utility bill decreased by 75 percent. Later that month, worried at how little energy she’d been using, the utility company even sent someone to check on her. When Epperson began seeking a high-quality, energy-efficient solution for low-income families in Eastern Kentucky, she realized just how urgent the matter was and continues to be. Her desire remains to deliver these homes to clients faster, but for less money. Epperson sees manufactured homes – the predominant source of unsubsidized affordable housing the U.S. – as the simplest way to provide for people in need. This lack of subsidy is largely what draws her to these MH options. “They’re inherently affordable,” Epperson said of manufactured homes. However, she acknowledges the home also must be energy efficient if the organization is going to help keep money in their clients’ pockets. Grant Beck, marketing and communications manager for Next Step Partners, describes MH options as essential to solving the housing affordability crisis. He adds it’s been an “uphill battle to break stigma.”

50 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM

So far, SmartMH has run as a pilot in Kentucky, but Epperson hopes to expand it to as many as four other states within a year. With their national partners — eHome America and Freddie Mac — SmartMH provides education for those who seek affordable housing but don’t know how to choose the best home for them. The program relies on retail partners to recommend clients who can’t purchase a home for reasons ranging from lack of credit history, down payment cash or collateral. “Our goal is to take those folks and pair them with a certified housing counseling organization,” Beck explained. Counselors walk clients through an eHome America homebuyer education program, helping them find resources and build a credit score. Beck explained, this isn’t “quick-fix credit repair or an overnight process,” but one that requires a committed investment that could take up to six months. Although prospective homebuyers aren’t required to purchase ENERGY STAR® homes, SmartMH advocates for their long-term, money-saving potential. SmartMH recently graduated its first student. Nearly 60 remain enrolled in the program. By the end of next year, Epperson hopes to have prepared 275 prospective homebuyers to purchase a manufactured home. “We give these homebuyers a chance to participate in the American Dream,” Beck said. Next Step and SmartMH rely on a collaborative relationship with the MH industry, from retailers to manufacturers to national nonprofits. To fund its programs, they rely on private and public grant funding, as well as corporate donations, individual giving, membership dues and consulting fees. Now, Next Step shares its model and knowledge with nonprofits across the country. Through their division Next Step Homes, they connect many nonprofits with retail partners and train them to order and create affordable housing options. As SmartMH takes off, Epperson works to get involvement from more retailers, loan partners and counselors. She’s also thinking about what type of loan products the current market needs, and what tools prospective homebuyers need to build credit. Looking further down the road, Epperson hopes the program will become a national effort. “We want to expand the MH marketplace, provide more capital, greater availability of loans and get more lenders interested.” As of right now, SmartMH is the model program that serves as an intermediary between the nonprofit affordable housing sector and the manufactured housing industry. “We sit in the middle and work with both,” Epperson said. MHV

MHINSIDER.COM • JANUARY 2018 • MHINSIDER™ |

52 | MHINSIDER™ • JANUARY 2018 • MHINSIDER.COM