MHInsider™ January/February 2021 - Community Edition

THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS

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34 CONTENTS

MARINA COMMUNITY IN ILLINOIS OFFERS NEARBY GETAWAY

HAPPENINGS 8 Industry Happenings INDUSTRY NEWS 14 New Year Continues Challenging Regulatory Environment 18 Manufactured Home Museum Coming to Hall of Fame in Elkhart COMMUNITY 24 New Community Roundup 27 GoFresh Homes Provides Options for Community-Owned Homes 30 What Does it Take to Expand a Manufactured Home Community?

33 Planning Today’s Manufactured Home Community Expansions, New Developments 39 Louisville Area Community Doubles Homesites 44 Flagship Communities Grows its Portfolio in Indiana, Kentucky 47 Adaptations in Manufactured Housing Operations

VOLUME 4 • ISSUE 1 JANUARY / FEBRUARY 2021 MHInsider.com Publisher Patrick Revere patrick@mhvillage.com

Senior Graphic Designer

72 A NEW ATTITUDE SELLING CONSUMERS ON COMMUNITY, LIFESTYLE

Merit Kathan merit@mhvillage.com

Contributing Editor George Allen gfa7156@aol.com

Contributors Jeffrey Barringer Steven Blank Ken Corbin Kevan Enger Suzanne Felber Dr. Lesli Gooch Devin Leary-Hanebrink Bruce Thompson Ryan Wilson Don Westphal

Cover Image Photo courtesy of Heritage Harbor

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SALES 50 Sales Process Overview Infographic BROKERAGE 54 How Selling Off-Market Can Cost You Millions ADVOCACY 60 A Word From the State Execs 64 Advancing Manufactured Housing Under New Administration, in 117th Congress BUILDER / RETAILER 69 The Tao of CrossMod

Call: (877) 406-0232 advertise@mhvillage.com

Disclaimer Although we make 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.

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Reproduction of MHInsider content, MHI or other contributor content, in part or in whole, is prohibited without written authorization from MHVillage, Inc.

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FROM THE PUBLISHER

WITH 2021 COMES MORE STABLE FOOTING, RENEWED FOCUS

F

For a great majority of us, I would humbly assume, 2021 is the most welcome New Year of our age.

As ever, and 2021 shall be no exception, the path through the future is difficult to discern. Nothing, as “the year of vision” has aptly showed, should be taken for granted.

Yet, assuming the role of eternal optimist, I will share my belief that the dawn of ‘21 itself — perhaps even the notion of it — is the sunnier skies we’ve been awaiting.

A mere 10 months ago, nearly all of our lives were turned on end, with lockdown and isolation. Fear was tangible. The unknown and disinformation were the daily course. It’s been an awful time. The year 2020 has been an education for us all… and 2021 is the time to put those lessons to use.

We’ve learned how to operate in a world partially broken, and the work we did, to a great extent, has gone toward shoring up the stability of our nation — providing place and security for millions of Americans. We’ve buoyed the spirit of family, providing that place for respite and community still.

Even through labor shortages, material shortages and rising costs, through devastating storms, social and political upheaval, through the untimely loss of industry leaders, and of course, through the Coronavirus pandemic and associated restrictions.

The Manufactured Housing Industry Got the Job Done Nearly every industry event on the 2020 calendar was canceled or postponed. Already in 2021, several gatherings have been rescheduled, including the annual Louisville Show and the introduction of The Biloxi Home Show, the heir apparent to the tradition of Tunica.

Just as the industry has pivoted, so too has MHInsider magazine. From its inception, the magazine has enjoyed a 4 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

presence and guaranteed circulation of hundreds to thousands of copies at a dozen industry events each year.

The year 2020 has been an education for us all… and 2021 is the time to put those lessons to use.

In planning for 2021, the MHInsider staff and editorial board imagined a new vision for the magazine that both aligns with and complements the established routes we’ve worn well through the years.

Rather than “The Louisville Edition’’ of Januarys past, what you hold before you is the January Community Edition, with a regional spotlight on the Midwest. You will come to learn that all of the 2021 editions of MHInsider magazine arrange accordingly, with a regional focus and an emphasis on a select segment of the industry that adheres to the traditional, seasonal flow of our work that will allow for the return of manufactured housing industry trade shows (with open arms!) when the time is right.

Patrick Revere is associate vice president of publications for MHVillage and publisher for the MHInsider magazine and blog for industry professionals. His background is in print news, language, and communication.

To fill the void left by event circulation, MHInsider has expanded postal circulation of the magazine by about 4,000 readers per edition, specifically targeting an expanded number of manufactured housing professionals in the geographic area and industry segment associated with the theme of that edition.

MHInsider continues to be a magazine with a national presence, now with more reach and a more laser-focused

approach to providing manufactured housing industry news, trends, and information.

So enjoy the read, and keep in touch. And thank you.

Thank you contributors, advertisers, readers, and friends.

Happy 2021.

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INDUSTRY

Happenings Florida-based Community Investment Group Launches New Fund Sunrise Capital Investors has launched its third investment fund, SCI Growth & Income Fund III. With the $25 million fund, Sunrise will continue to acquire top-tier communities and parking assets in an effort to consolidate the still highly fragmented industries. “Mobile home parks have outperformed other real estate sectors for decades… with

phenomenal supply and demand economics and the highest long-term, same-store NOI growth projections of any property type, we feel mobile home parks are well positioned to outperform for the foreseeable future,” Sunrise CIO Brian Spear said.

County from industrial to a new Manufactured Housing District that will allow for as many as 72 new homes and street parking for 142 vehicles.

Georgia Municipality Approves Manufactured Housing District

In a pair of transactions, Gemstone Communities acquired four communities with 750 homesites in the Cincinnati area. Three of the communities — Lebanon Acres in

The Baldwin City (Ga.) Council approved annexation and a zoning change for 15.35 acres in Habersham

8 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Gemstone Acquires Four Communities

HAPPENINGS

Morrow, Richmond Estates in New Richmond, and Miami View Estates in Cleves — came from Havenpark Communities. The fourth community acquisition was for Green Acres in Loveland from a local owner. The purchase prices were undisclosed.

The recent transactions bring Gemstone Communities to more than 5,000 homesites.

all-age community. The communities will be managed by GCP’s wholly-owned operating platform, Windward Communities. With this acquisition, GCP’s portfolio of land-lease communities increases to 17 properties with about 6,800 sites in six states.

Green Courte Partners Expands Community Portfolio

Saunders Property Company has acquired a section of Windward Vi l la ge Ma nu fac t u red Home Community in Long Beach, Calif., for approximately $21.5 million from Associates Group Windward Village, which developed the gated community in 2006.

Green Courte Partners, LLC in its fifth investment fund has acquired two land-lease communities in the Cleveland, Ohio area. The portfolio includes Columbia Park, a four-star, 1,076-site, age-restricted community, as well as Brook Park, a 112-site,

Long Beach, Calif., Community Changes Hands

Deer Valley Homebuilders Reorganizes Management Team Deer Valley Homebuilders implemented a succession plan after the recent passing of President and General Manager Chet Murphree.

Steve Lawler, who has served as Deer Valley’s CFO, will take over the role of company president. This expanded capacity covers multiple operational duties and responsibility for corporate strategy and strategic business development, as well as financial reporting and managing the company’s financial performance. Joey Aycock is the new executive vice president and general manager, with primary responsibility for both daily operations and sales and marketing. Over 25 years, Aycock has served in a variety continued on page 11

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 9

Industry Events Are Canceled,

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HAPPENINGS of leadership roles including as vice president and director of sales. Both Lawler and Aycock are co-founders of Deer Valley Homebuilders.

Scottsdale-Based Investment Firm Acquires Local MHP Investment 52TEN has acquired Palo Verde Hills Mobile Home Park, a 49-space park located in Apache Junction, Ariz. The transaction was completed off-market, directly with the park’s former owner. Palo Verde Hills is the fifth park in 52TEN’s portfolio.

52TEN will renovate and sell the vacant homes on the property, fill the vacant spaces, and complete necessary capital improvements. “This was a rare opportunity to acquire a park in the Phoenix metro area,” said Nate Pattee, 52TEN co-founder.

“The park has been well cared for and is in a quiet neighborhood with amazing views of the mountains.

We are excited to make it even better for residents.”

Three Pillar Communities Adds Oregon Property Emerald Coast Estates, a 79-site manufactured housing community in Brookings, Ore., has been acquired

by Three Pillar Communities for $7.3 million. The gated community on 20 acres was built in 2003 and sits on a “bench” between the Pacific Ocean and a mountainous backdrop.

BankWest Names New AVP for Mortgage Origination Denise Foster has been named assistant vice president mortgage originator for the BankWest. Foster

has served BankWest customers in originating, processing, and closing loans for 17 years. She also serves on the board of directors for the South Dakota Manufactured Housing Association.

Community Near Cowboys Stadium Refinances at $4.5 million Maverick Commercial Mortgage closed a $4.5 mortgage on Oak Haven Estates a manufactured housing community located in Arlington, Texas.

The 10-year fixed-rate first mortgage was limited to 71 percent loan to value. The loan was non-recourse and amortized over a 30- year period.

Proceeds from the first mortgage paid off the existing lender, returned equity to the borrowing entity, and paid for closing costs. The loan was funded by a national lender.

Capital Square Acquires Fourth Coast Florida Community Whispering Pines, a 301-homesite manufactured housing community in Kissimmee, near Orlando, has been purchased by Capital Square 1031. The community is situated on approximately 61 acres and is 99% occupied with additional land for expansion. Capital Square intends to maximize the value of Whispering Pines by maintaining strong occupancy and increasing homesite rental rates to bring them closer to the market average over time.

In Memoriam Industry Mourns Passing of Former Fleetwood COO Glenn Kummer, who had been chief operating officer for Fleetwood

as well as former president of MHI, has passed away at the age of 87 years old. Mr. Kummer joined Fleetwood in 1965 as a buyer and helped grow Fleetwood to a Fortune 500 company. Family and friends had a small, private memorial in Lindon, Utah.

Arkansas Community Owner, Teacher Passes Lois Ann Brewer, 88, of Batesville, Ark., formerly of Arnold and Imperial, died Oct. 28, 2020, in Batesville.

Mrs. Brewer and her husband Howard designed, constructed, and managed South Woods Mobile Home Park in Imperial, Ark. The couple continued to manage the community into 2019. Mrs. Brewer earned a master’s degree at Webster University, and had been a teacher prior to entering the manufactured housing industry. Services were held at St. James Methodist Church in St. James, Ark., and burial was at Evetts Cemetery in Marcella, Ark. She was preceded in death by her husband Howard A. Brewer.

Industry Mourns Passing of Texas Park Owner Letha Frances Miles, 90, of Nash, Texas, has passed away. Mrs. Miles owned and operated Miles Mobile Home Park, and was a licensed realtor. She was born in Redwater, Texas, and had been the fashion department manager at Montgomery Wards prior to entering residential realty and the manufactured housing industry. Mrs. Miles was a member of Oak Ridge Missionary Baptist Church, and was a loving mother, grandmother, and great-grandmother. Services were held at Oak Ridge and burial was »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 11

HAPPENINGS

conducted at Redwater Cemetery. She was preceded in death by her husband Lloyd Miles.

Pennsylvania MH/RV Park Owner Passes Away Joseph P. Baiera, 77, of Meadville, Pa., and the former owner of Saegertown Mobile Home Park and Chuck-a-Lou RV Park and Campground, has passed away. He served in the U.S. Army, and was a member of the Millwright’s Local Union #2235. He is survived by his wife Brenda and their three children. Services were held at Stephen P. Mizner Funeral Home followed by burial at St. Brigid Cemetery.

Owner of San Bernardino, Calif., Community Dies Charles R. “Bobby” Littleton, who owned Littleton Mobile Home Park in San Bernardino, Calif., has died.

The Littleton family owned a dairy farm, and when it closed the manufactured home community was developed.

Mr. Littleton served in the U.S. Army, was trained in electronics and integrated fire control on anti-aircraft

12 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

guns at the Aberdeen Proving Grounds in Maryland, and later was stationed at Anchorage, Alaska. No services were scheduled, and donations were requested to go to Rotary International or a local no-kill animal shelter. Mr Littleton was preceded in death by his wife Mary Margaret.

Have industry news you'd like listed here?

Call Magazine Publisher, Patrick Revere, at (616) 888-6994, or email at patrick@mhvillage.com

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INDUSTRY NEWS

New Year Continues Challenging Regulatory Environment

by Jeffrey Barringer

M

anufactured housing covers a diverse range of business interests, stretching from home builders and installers to lenders and community operators, plus everyone in between. This diversity is one of the industry’s greatest strengths. However, when lenders are unfamiliar with how homes are built and manufacturers have limited understanding of community operations, that strength can also be a weakness—especially when the industry struggles to work together.

14 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

INDUSTRY NEWS

Hopefully, this new column will help every corner of manufactured housing better understand how these component parts, as well as the underlying regulatory requirements, fit together.

Each issue, this space will highlight recent legal developments at the federal and state levels that affect manufactured housing. Sprinkled throughout will be high-level “explainers” of various topics, including the HUD Code, federal preemption, transportation requirements, home titling and financing, code enforcement, and manufactured home community regulations. While the information provided here will never be an all-inclusive answer—you should always consult independent legal counsel for help with your specific legal question—it will help clear the cloud of confusion.

Of course, last year was another busy year for manufactured housing, with the industry witnessing several updates that have reshaped—and continue to reshape—the regulatory landscape as we begin a new year.

At the federa l level, H U D published final rules concerning Streamlining and Aligning the Formaldehyde Emission Control Standards (published January 31, 2020) and Minimum Payments to the State Administrative Agencies (published November 12, 2020).

Together, these rules are the first revisions to the HUD Code in roughly two years. HUD also published multiple emergency actions to help home builders navigate supply chain

challenges caused by the COVID-19 pandemic and even managed to host several teleconference meetings of the Manufactured Housing Consensus Committee.

Not to be outdone, there was also significant activity at the state level.

Highlighting a few priority updates, in March, West Virginia adopted Senate Bill 651 (2020), which amended the state’s definition of “mortgage loan originator,” clarifying the term with respect to retail sellers of manufactured and modular homes.

A few months later in May, the Maryland Legislature enacted Senate Bill 155 (2020), which amended its definition of “mortgage loan originator” and introduced additional consumer protections, including an obligation of good faith and fair dealing when retail sellers provide financing information to prospective manufactured home borrowers and a requirement that lenders serve written notice on a borrower at least 30 days before repossession of a home. (West Virginia and Maryland are the most recent states to align their respective state requirements with federal revisions to the Truth in Lending Act following passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.) Most recently, in October, HUD officially assumed responsibility for the installation of new manufactured homes in Pennsylvania, a program change the state’s Department of Community and Economic Development first announced in 2019. This brings to 15 the »

Photo Courtesy of Tharakan Consulting

Manufactured housing covers a diversity of business units, ranging from home builders and installers to lenders and insurers.

–Devin Leary-Hanebrink

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 15

INDUSTRY NEWS

number of states that do not administer their own manufactured home installation program.

Perhaps last year’s most significant development, which will go into effect on March 15, 2021, occurred last January when HUD published its proposed rule to amend the HUD Code. One year later, HUD recently published its long-awaited final rule—the most substantial update to the HUD Code in approximately a decade. Naturally, this will spur activity at the state level, as the states amend their respective requirements to incorporate (or at least accommodate) the federal changes.

Needless to say, the regulatory environment for manufactured housing is constantly changing, and

this year will be no different. From a comprehensive federal building code—the Construction and Safety Standards—that is further complicated by state oversight of installation standards to detailed state and federal requirements regarding how to title and finance a home, staying current with all these rules demands special attention. We will be here, keeping you up to speed.

Cheers to a healthy and prosperous New Year. MHV Attorneys Jeffrey Bar r inger and co -author D ev in Leary-Hanebrink practice with McGlinchey Stafford PLLC. T hey help

clients navigate the alphabet soup of state and federal government agencies that regulate a wide range of industries, including banking, consumer financial services, housing, and construction. McGlinchey Stafford PLLC is a multi-service law firm with a national presence, serving clients from offices in Alabama, California, Florida, Louisiana, Massachusetts, Mississippi, New York, Ohio, Tennessee, Texas, and Washington, D.C. MHV

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Manufactured Home Museum Coming to Hall of Fame in Elkhart Class of 2021 Announced, Aug. 2 Tentative Ceremony, Dinner Planned

18 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

T

The RV/MH Heritage Foundation has approved a plan to construct a new $1.5 million, 20,000 square-foot Manufactured Home Museum.

“The new museum will be built as a wing on the northeast side of the existing RV/MH Hall of Fame in Elkhart,” foundation President Darryl Searer said. “The entire space will be dedicated to showcasing the manufactured housing industry and will include exciting exhibits, interactive displays, historical artifacts, and generational manufactured houses for the public to view and tour.” »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 19

INDUSTRY NEWS

Searer said the museum will be a unique and historical public experience dedicated to the industry, and will include exhibits and attractions specifically designed for families and children.

“This will be a state-of-the-art museum and create a masterpiece in the manufactured home industry,” Searer said. “As its birthplace, Elkhart, Ind., will now have a claim to the pinnacle of manufactured home museums to celebrate the industry.”

The museum is on a fast track to completion with final plans expected Feb. 15 and construction starting April 15. Searer said the plan is to have construction wrapped up in September.

“This will bring a whole new excitement for the MH Industry,” he said. “It will bring a new energy and balance to the Hall of Fame.”

The foundation continues to take donations for the new Manufactured Home Museum through Feb. 15.

2021 RV/MH Hall of Fame Induction Class Set

The museum will serve as an educational destination to learn about affordable non-subsidized housing, with captivating displays and interesting insights into all aspects of the industry.

The 2021 Hall of Fame Induction class for manufactured housing and RV professionals has been revealed by the RV/ MH Heritage Foundation, adding another 10 deserving individuals to the exclusive hall in Elkhart, Ind. Each year, the Hall of Fame brings in five new manufactured housing inductees and five new RV inductees, celebrated most years with a summertime gathering for dinner, ceremony, and professional appreciation.

The Class of 2021 will be officially inducted into the RV/MH Hall of Fame at the Annual Induction Dinner on Monday, Aug. 2, if coronavirus protocols and restrictions are lifted, RV/MH Heritage Foundation President Darryl Searer said. The event was canceled in 2020.

2021 RV Industry Inductees

Manufactured Homes of the Past, Future Foundation board member Jim Scoular, of Jimsco, Inc., has been a driving force on the Manufactured Home Museum project, Searer said.

“This museum will celebrate the history of our industry, showcase the homes of today and provide a window into futuristic mobile and modular housing,” Scoular said.

The museum will serve as an educational destination to learn about affordable non-subsidized housing, with captivating displays and interesting insights into all aspects of the industry.

Factories, dealerships, suppliers, manufactured housing communities, transporters, banking, and all other aspects of the industry will be featured and honored.

20 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

The RV industry inductees are: Eleonore Hamm, of CRVDA , in British Columbia, Canada; Jeffery M. Hirsh, from Campers Inn RV, of Florida; Robert “Bob” Parish, Wells Fargo CDF, of Florida; Jim Sheldon, of Fleetwood Enterprises and Monaco Coach, in California; Bob Tiedge, of Lippert Components, in Indiana.

“Congratulations to the 10 new honorees,” Searer said.

“All of them have had or are having outstanding careers and are richly deserving of this high honor.

“I was especially impressed with the committee’s work for the diversity of this year’s class— not only in the inductee’s gender but also the diversity of regions within the U.S. as well as the diversity of nominee’s industry segments such as suppliers, manufacturers, dealers, community managers, and developers, as well as association executives.” MHV

INDUSTRY NEWS

MANUFACTURED HOUSING Class of 2021

Ken Anderson, MHIA, Arizona

Ken Anderson’s dedication to the manufactured housing industry and the Manufactured Housing Industry of Arizona is beyond measure. He gave up his own retail sales operation of 30 years to help save the association and the industry in Arizona by taking leadership of the association and helping it to stay aloft and prosper even during trying times. He served on the board and executive committee for more than a decade. He helped create the Arizona Image Committee; served on the Government Relations & Zoning Committee; ran several annual home shows as well as chaired many annual conventions. He has also served tirelessly on the national front, serving as a delegate to MHI for many years, as well as serving on the MHI Board of Directors and National Retailers Council. Anderson has also participated in many of the MHI Legislative Meetings, even helping to secure Democrat support for the Dodd-Frank Reform, including the lead Democrat cosponsor, Kyrsten Sinema, and six additional Congressmen, giving Arizona representation by seven out of nine state representatives. Ken has been the recipient of many awards during his time in the industry.

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 21

INDUSTRY NEWS

MANUFACTURED HOUSING Class of 2021 Dee Pizer’s support of the manufactured home community industry includes guest speaking at MHI meetings, mentoring women in the industry, and volunteering her time whenever asked to assist other community owners and property developers throughout the country.

The time Pizer gives new community owners and operators at these meetings has been a tremendous help in the industry. Her reputation and success make her a great source of information. She helped change the perception of manufactured housing as a “male-dominated” industry.

She has been essential to the growth and success at Zeman Homes, yet more so in many ways to the continuing success of the community segment.

Debra J. Pizer, Zeman Properties, Illinois

Alan H Spencer has 35-plus years of accomplishments in the manufactured housing industry, including community involvement, pioneering direct-to-consumer factory sales lots, and expansion/management of national dealerships.

Spencer has decades-long involvement with associations that represent the industry, and has been instrumental in helping to pass laws and fight against legislation that would negatively impact the industry and its customers in South Dakota and several Midwestern states. Spencer provided support to pass a law in South Dakota enabling manufactured homes to be placed on foundations, converting them to real property and giving the customer the option to obtain mortgage financing.

Alan H. Spencer, Dakotaland Homes, South Dakota

22 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

INDUSTRY NEWS

For five decades, Charles Lott has played a pivotal role in leading affordable housing in America. He has stayed consistent over the years with a strategy that was rooted in designing and building astonishing homes with a focus on affordability for all Americans. Every stakeholder in the industry is better from the impact he has made on the evolution of manufactured homes. Most importantly, homeowners continue today to reap the benefit of current trends, needs, and wants because of his relentless goal to improve both the homes and the people he has trained over his lengthy career.

Charles E. Lott, Fleetwood Homes in Georgia

Keith Casenhiser, California Manufactured Home Community Owner

As a senior at UC Riverside, Keith Casenhiser started in the industry as an intern at Fleetwood. Since partnering with Dick Bessire, they now own 10 parks and manage 80. Most park owners only participate with WMA, but Casenhiser personally joined other associations and became chairman of the board of MHET, advisory director for CMPA, and president of the board of directors of WMA. For the past 15 years, he has dedicated his allegiance to CMHI as past chairman of the board and served as treasurer on the executive committee. Casenhiser speaks and participates at round tables, panels, committees, and industry functions for all California associations and the same in Idaho and Colorado. He received top awards from WMA, CMPA, and MHET, as well as the Presidents Award and the Jack E. Wells honor from CMHI. Casenhiser contributes to PAC funds and many charity fundraisers. He is knowledgeable about industry issues and has dedicated his life to his family and his industry.

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 23

NEW COMMUNITY

Roundup YES Communities Brings Ground-Up Community to New Braunfels, Texas Dwelling at New Braunfels is a new affordable housing development in New Braunfels, Texas, near San Antonio.

The community designer, Open Studio, has planned for 270 manufactured home sites and will feature modern home designs and natural finishes rarely found in existing manufactured housing. Landscape design will be completed by MP Studios and the entire community will be engineered by Moeller & Associates.

The new manufactured home community will have resort-style amenities such as a quarter-mile loop trail, beach entry swimming pool, fitness center, dog park, experiential playground featuring play towers, landforms, rope climbs and swings, as well as an outdoor living area with kitchen and patio.

“We love being a part of meaningful placemaking — we’ve designed Dwelling at New Braunfels to provide a multifaceted experience of active, naturalistic, and shared community space that has soul,” MP Studio landscape architect Mark Padilla said. “The landscape is a series of outdoor rooms, lawns, paths, and venues for community programming surrounded by a pond, plantings of native trees, shrubs, and beautiful pollinators.”

24 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

The 2020 median home price in New Braunfels is $280,000. This causes many workers in the region to live in remote areas and commute each way for retail and hospitality work. The Dwelling at New Braunfels will offer affordable housing within city limits, making it easier and more cost effective for workers to live near their work.

“The innovative design and modern amenities our company is putting into Dwelling at New Braunfels will revolutionize affordable housing in this region,” YES Communities CEO Steven Schaub said. “We are thrilled to create a community that will give our residents access to great jobs, as well as more time to spend with family.”

Homes to Arrive Spring 2021 to New Washington Community New homes are coming to Sequim, Wash., this spring, with developers completing the site prep for Lavender Meadows, a 217-homesite community for residents 55 years and older. Developer Leah Brooke said she and her development partners will build private streets with sidewalks, street lighting, and will include other streetscaping amenities, as well as garden spaces, dog parks, pocket parks, a clubhouse and pickleball or tennis courts. The community will be built in three phases on

Photo Courtesy of Sun Communities

38.3 acres,a portion of a former dairy farm. Palm Harbor will be one of the providers of homes for the development, and all of the homes will have energy efficient features and advanced roofing systems.

or small-unit development, and add to the stock of tiny and manufactured homes.

Tiny Homes in Pensacola, Fla.

An engineering report for Meadowbrook Retirement Community in Kerrville, Texas is under review. Developer John Hewitt put in a pair of water retention ponds, and continues to work with neighbors to ensure storm runoff is properly managed. Phase one of the community would provide 102 new homesites on more than 88 acres at Texas 27 and Hoot Owl Hollow.

The city of Pensacola, Fla., is welcoming tiny structures for a variety of uses, including for the area’s first tiny home village.

Kevin Hagen, president of housing nonprofit AMR at Pensacola, awaits final approval for a 336-square-foot house scheduled for completion in early 2021. Hagen’s tiny house will serve as a model for future homes.

Pensacola granted a variance for the home late last year.

The city considers the tiny home an accessory dwelling unit to an adjacent duplex also owned by AMR. The Florida Building Code in 2021 will adopt Appendix Q, which is an update to residential building code for a definition of the tiny home.

Meanwhile, Pensacola’s Affordable Housing Task Force has issued a final report to the city that outlines a strategy to gain 500 affordable homes in five years. The report says city leaders should identify potential sites for infill

Kerrville, Texas Development to Bring New Affordable Housing

Plans for Fort Collins Community Move Through Process Sun Communities is closing in on a new manufactured home community in Fort Collins, Colo., an area of continuing growth with a need for affordable housing.

The 200-site community on the south end of town sits on 50 acres and is adjacent Pleasant Grove, an existing community. Sun Communities, which owns and operates about 430 manufactured home and RV communities in the United States, continues to work with surrounding » JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 25

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minimum of 15% of its homesites for low-income residents, as defined by the municipality, and provide models with a variety of distinctive roof lines, attached porches, as well as trim style and colors.

The price range of the homes at Sun’s new community is well below Fort Collins' single-family median of $450,000.

Construction Planned for Spring in Conroe, Texas A new manufactured home community will open in Conroe, Texas this in spring.

Pine Acre Trails will offer homesites that measure 50 by 125 feet.

Harry Winslow and Kevin Mims, the chief operating officer and the president at GMI Management, want to bring more affordable housing options to Montgomery County, breaking the negative stereotypes about off-site built housing. In the

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In October, the Fort Collins Planning & Zoning Board approved a pair of modifications to city code that make way for continued development of the community, one allowing for a single housing type rather than four, and another to allow for curbs and sidewalks without on-street parking.

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industry for about 15 years, the pair has been purchasing and improving area manufactured home communities. With fewer existing parks to consider, Mims and Winslow went into development.

“Montgomery County is in dire need of actual affordable housing, homes that are under $150,000,” Mims said. He said plans for the community include on-site staff, a sales and management office, fishing pond, walking trails, a soccer field, splashpad, and high-speed internet service. MHV

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GoFresh Homes Provides Options for CommunityOwned Homes

by Patrick Revere

T

There’s a fresh idea emerging in manufactured housing.

It’s one that can provide community owners with an inf lux of cash, lighten management requirements, and provide an easy avenue to operating a pure land-lease property.

GoFresh Homes CEO Jim Davis had been in banking for 28 years and was contemplating a next career when his desire for a mission-driven business plan brought him to affordable housing.

“It wasn’t difficult to see the opportunity once I began to study the sector,” Davis said. “The consistent cash f lows and strong occupancy rates of manufactured home communities make it a compelling story to share with investors.”

Partners and operating investors Howard Lieber, Chris Murray, Scott Pomeroy, and John Rich joined the effort

and in less than four years the Evergreen, Colo.-based company has acquired and is managing 83 homes in four states with another 300 to 400 homes in its line of sight.

“Even though we are interested in talking to all sizes of operators, when we have these discussions with larger operators, they’re interested because having cash tied up into rental homes is sometimes deemed inefficient use of their capital,” Chris Murray said.

“In our world, we want partnerships where we can come in and provide cash alongside them as they seek to own more parks or put more homes on their lots for land-lease revenue,” Murray said.

GoFresh takes ownership of park-owned homes, becoming the tenant for a monthly land-lease payment to the manufactured home community owner. They also »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 27

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can assume management responsibilities through their full-service property management company.

“Aspirationally, we’re seeking to own 10,000 homes in the next five years,” Murray said. “And we are flexible, we can work in multiple ways with community owners and managers. We are completely set up to manage but we also are fine coming to agreement on owning the homes and letting them manage.”

From Niche to National Provider Davis and Murray went to school and played football together at Cherry Creek High School in Denver. Murray’s early career emphasis was in talent management and representation, which he continues today exclusively for National Football League players.

John Rich, the country musician, entrepreneur, and media personality joined GoFresh in mid 2019.

“I had known John since about 2010 and I had heard him talking on the radio about growing up in a manufactured home,” Murray said. “I called him and asked if he wanted

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to be involved because his story is genuine, based on personal experience.

“He really wanted to get into the industry and has a lot of love for hard-working Americans who seek to have a home of their own,” Murray said.

Invest in the New Rental Ownership Model GoFresh provides investment opportunities in the manufactured housing industry by allowing passive investors to put funds into a portfolio of homes with an anticipation of favorable returns.

“We’re creating a new asset class, doing this at large scale,” Murray said, similar to special purpose vehicles, or SPV investments, in other parts of the multifamily offering. “We’re looking at five-to-seven year runways on these investment vehicles. The first one closed in 2016, a relatively small one at $2 million, and the second one of about $30 million is still in flight. We probably have another four-year run on the second fund.

“The approach provides a wide array of exit strategies for our investors,” Murray said.

The Development of Patriot Village In addition to being a partner in GoFresh, Rich is a high-profile advocate for the industry, and recently began to form plans for a swath of land outside Nashville, where the “Big & Rich” entertainer resides.

“He wants to put his money where his mouth is,” Murray said of the community GoFresh and Rich are calling Patriot Village.

“The memories I have growing up in a double-wide in Amarillo, Texas, from 1980 through 1988 are some of the best in my lifetime,” Rich said. “I love being part of GoFresh, working within the industry to help foster its growth, and listening to heart-felt stories from our residents that remind me of my own story.”

The GoFresh team is developing the small property from the ground up in Ashland, Tenn., and is looking for partners to supply homes, with a commitment to provide affordable housing for veterans of the U.S. Armed Forces.

“One of the objectives is to give a home to a family of a fallen veteran through Folds of Honor, which is a charity that is very close to John’s heart,” Murray said. MHV

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What Does it Take to Expand a Manufactured Home Community?

By Patrick Revere

Photo Courtesy of UMH Properties

30 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

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U

UMH Properties purchased Pikewood Manor in Elyria, Ohio, at the end of 2018, and quickly improved the property and began filling vacant homesites.

“When we bought that property it was right around 35% occupancy,” UMH Assistant Vice President for Engineering Alan Patterson said.

Pikewood Manor’s 480 homesites today are 85% occupied, and the UMH leadership is embarking on community expansion for the property.

“It typically takes much more than two years after a purchase to get the expansion plan underway,” Patterson said. “That property has had a good run.”

UMH owns more than 120 manufactured housing communities in eight states along the northeastern seaboard, in the upper Midwest, and in Tennessee.

The 30-acre expansion at Pikewood will garner the property another 298 sites. The city recently approved a zoning change to accommodate the expansion.

“With the number of states we work in, we rarely see the same process,” Patterson said of zoning and planning for a community expansion. “There’s always something to set it apart, the opinion of a board member, or an environmental issue, for instance.

“We did get a much better rezoning process than we anticipated with Pikewood, to the point we received board comments on how pleased they are to have a professional group come in to offer the housing that’s needed,” he said.

So, What Does it Take to Complete A Community Expansion?

Even with zoning changes, engineering work, environmental considerations, and site work, creating more homesites and access to affordable housing is much easier through expansion to an existing community, in many cases, than to build one from the ground up.

Recent research by MHInsider suggests that fewer than 400 new manufactured housing communities have been built nationwide during the last 15 years. In addition to challenges related to zoning new communities, which can be discriminatory at times, developers also have to fend off NIMBYism and overcome the high-cost and extended wait on investment returns.

Patterson said UMH typically takes a first go at expansion plans, and when there’s a working direction for the expansion a professional planner is hired to consult, which includes working with local officials.

Steps in the Expansion Process: • Zoning • Environmental • Planning, mitigation • Concept plans -- utilities, roads (often state, sometimes county approval) • Site work

However, boiling down the expansion process to a tactical list can be misleading, Patterson said. “You can get into some special circumstances, for instance, if we’re dedicating a sewer or water line back to the municipality we’ll have inspectors out there every day making sure they’re getting what they need,” Patterson said. “What otherwise seems like a simple process can get complex and sometimes costly.

“The biggest challenge we run into, especially in the areas that are less than supportive of manufactured housing, are the challenges during zoning,” Patterson said. “A lot of times you can call ahead and have a couple of conversations with local officials to get the feeling for whether a project is going to work out or not. Just talking with someone for a few minutes can give you some answers that will avoid hassles.” MHV

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1-877-406-0232 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 31

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COMMUNIT Y

PLANNING TODAY’S MANUFACTURED HOME COMMUNITY EXPANSIONS, NEW DEVELOPMENTS

By Don Westphal

A

After more than 50 years planning manufactured housing communities, RV resorts, subdivisions, and miscellaneous other projects one would think I have seen everything. However, in this unique and difficult time, we have never been busier. Leading the way, manufactured home communities and RV resorts are causing us to work overtime.

Why is this?

I believe there is no better solution to the affordable housing crisis than with manufactured housing. Our work in response to the great need for housing comes in two areas: Upgrading and expansion of existing communities and planning new greenfield communities.

Community Expansion, Upgrades Community upgrades are difficult planning projects since many of the older communities were built for smaller homes and are under older, less restrictive ordinances.

Reconfiguring these smaller homesites for larger homes often results in a loss of density and a resulting loss of revenue. However, many of these older communities are well located since when originally built they were on the outskirts and development has grown around them.

They also are targeted for what some consider “higher and better uses”, yet, in most cases, zoning for expansion and upgrades is less difficult to achieve.

New Properties New Greenfield projects are another story. Zoning for these developments, in my experience, is as difficult as ever even though community officials most often readily admit they have a shortage of modest priced housing.

With proper preparation and planning, gaining the required zoning can be accomplished.

Our company has outlined the process in presentations at industry events and most recently in an MHI webi-

nar. A successful process begins with great planning.

One must understand the ordinance requirements, the approval process, the players, and the planning staff. A great site plan in accordance with the local ordinance and conforming to the particular site features is essential.

Listening in the early stages of conversations with staff and officials and incorporating their ideas, where possible, helps to give them ownership in the plan. This can be very advantageous. We must understand that the zoning process is a marketing job, in convincing the decision makers that the project will be one that they will be proud of for years to come. There is no opportunity to market homes to the public if we do not properly market the project in the zoning and site planning process.

RV resort planning likely is of less interest to readers of this publication, though many manufactured home community developers also develop and operate RV parks, including blended properties that offer both homesites and RV hospitality. These projects can face planning and zoning challenges that are similar to what we face in housing. The pandemic has resulted in a tremendous rise in RV use and a significant increase in the demand for our services in this venue.

Fortunately, my firm after 50 years has joined forces with the Nadi Group and is well positioned to assist clients, new and old. We can and will meet surge in demand with our expanded staff and the ability to provide details beyond the master plan stage of a project. The Nadi group provides these services to clients nationwide.

Good Luck and stay safe. MHV Donald C. Westphal, Associates, LLC, winner of 7 Community of the Year Awards, has a 50 year history of planning great Manufactured Communities and is still enthusiastically serving the industry. Learn more at www.dcwestphal.com.

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 33

Marina Community in Illinois Offers Nearby Getaway

By Bruce Thompson

N

Ninety miles southwest of Downtown Chicago, Heritage Harbor is anchored by a 32-acre harbor, made from a former shale quarry opened to the Illinois River, protected by a resplendent stone seawall.

For the boaters of the world, this is the first stop on the Great Loop out of Chicago. Boaters can navigate Lake Michigan and access the great Mississippi, the Saint Lawrence Seaway and the Atlantic Intracoastal Waterway, as well as points south to the Gulf of Mexico. »

34 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 35

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As you approach the resort, the hills of the river valley provide a beautiful backdrop to the homes and commercial structures that surround the marina. Just minutes from Ottawa, a town of 20,000 residents, the resort is adjacent a canal system once responsible for transportation of vital cargo from Chicago south.

While the canal is long gone, the tow path remains part of a 60-mile walking trail.

Heritage Harbor is the vision of Tom Heimsoth, a former tech executive who sold his company and chose to develop this special master-planned resort community.

His passion is evident in both the scale of the project and the work that he has done in the area to promote tourism.

As a former tech innovator, I appreciate the tangibility of developing the

built environment versus software.

Lines of code can be overwritten in seconds but moving dirt somewhat resembles permanence.

“More than 14 million people relocated by mid 2020 due to the increased ability to learn and work remotely, according to USPS data.”

–Bruce Thompson

Touring the property, among the initial observations was the indistinguishability between the 130 homes, from site-built to fac-

36 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

tory built. Forty-five of the homes were made by one of two modular builders, Homeway and Ritzcraft, and the other 85 were constructed on site. Tom and the development team, led by Kevin Donovan, understand that building off-site is the future.

They are working hard to secure a supply chain that can help complete the additional 550 homes that have been approved by the municipality.

The benefits of producing manufactured and modular homes off site centers on predictability — timing, cost, and quality. As their sales waiting list grows it is important to deliver units that can be quickly occupied by owners, or as part of a growing rental business managed by the resort. Offsite manufacturing also offers an opportunity to pre-engineer interiors to provide a

COMMUNIT Y

higher level of quality and ultimately a better occupant experience.

Tom and his team have anticipated the changing demographics of potential residents and visitors. Households today represent bookends: one in five households now living solo and one in five are multi-generational. The master plan for Heritage Harbor calls for a mix of units ranging in size from 400 square feet to large custom homesites to accommodate these trends.

The housing types under development will appeal to both boaters and Chicago residents who are looking for a quick escape. In addition, there are plans for an active adult community to be operated by a third-party management team.

With 10,000 people turning 65 each day in the U.S., Baby Boomer Chicagoans and others are looking to downsize from their large suburban homes. Heritage Harbor’s location

provides a destination that is a world away yet still accessible to big city healthcare and other amenities.

Nearby, Ottawa is a year-round community with a great food and brewery scene and local businesses that represent a level of authenticity that is appealing to many visitors. Located just off 1-80 it is easy to access, but at the same time feels removed from the hustle of Chicagoland.

As COVID-19 continues to transform how we live, how we work, and play, Heritage Harbor stands to gain more attention, and new residents.

More than 14 million people relocated by mid 2020 due to the increased ability to learn and work remotely, according to USPS data.

While some behaviors will revert back, it is evident that new patterns will endure and transform the real estate market.

Heritage Harbor, in its way, is the convergence of the past and future.

The canal system that took 30 years to build operated for 30 more years before rail transportation provided the more efficient way. It is a good reminder that even innovation in the built environment can be fleeting.

Today, Heritage Harbor is a node on a new network that supports remote work, learning, and tele-health — a way to both connect and disconnect — with a front seat view for the evolution of construction. MHV Bruce Thompson’s career is the convergence of two passions: the built environment and the digital revolution.

After a 20-year career in the global technology industry. he and his wife Brenda founded URBANEER to help relieve the housing crisis through innovative solutions that create compact, configurable, and connected living spaces.

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COMMUNIT Y

LOUISVILLE AREA COMMUNITY DOUBLES HOMESITES

by Patrick Revere

There is active management and support in ensuring that everything looks great and everyone is safe and proud to be here.

–Brad Wilcox

A

Autumn Leaf Estates south of Louisville in Shepherdsville, Ky., last year doubled in size and is selling homes in a high-demand area to buyers who are overjoyed to move their family into a new home of their own.

Brothers Tony and Brad Wilcox own Autumn Leaf, as well as the neighboring community, Hickory Acres, with a third partner, Mike Whobrey.

“Autumn Leaf was originally approved as a 231lot community,” Tony Wilcox said. “The original developer in 2000 only developed the front half of the property and stopped.”

When the Wilcox brothers were able to acquire the community in 2016, they took a two staged approach.

First, they needed to make several hundred thousand dollars in improvements to the developed portion of » JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 39

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the property. It was stabilized and brought to 100% occupancy. Next, they set out to complete the development in 2019.

In addition to doubling the number of homesites, new sewer lines, waterlines, power, roads, and 115 driveways need to be completed.

The second section developed in 2019 is about 40% occupied.

“It wasn’t planned as a phase one and phase two, but it just worked out that way,” Brad Wilcox said.

“We figured there would be about a three- to five-year absorption rate, and we now think it will be closer to three years than five.”

New Homes for Sale Autumn Leaf Estates primarily sells Fleetwood and Clayton Maynardville but also sells Champion homes out of Kentucky and Tennessee as well as Hamilton from Alabama.

Autumn Leaf has overflow parking and will get a pair of upgraded bus stop facilities for the school children, as well as a community park that will include a playground, picnic tables, grills, and open spaces.

Kristee Fuhrman is the general manager for both of the Wilcox’s

properties. She said landscape design has been top of mind through the expansion.

“We really want to provide the view our residents and prospects want to see,” Fuhrman said. “By far the biggest compliment we receive is that we are the nicest community in the area. We are constantly upgrading and improving the community.”

Selling Home During the Pandemic Demand for affordable housing is at an all-time high, yet the pandemic and COVID-19 protocols and restrictions continue to make home availability a challenge. The office takes appointments now rather than allowing walk-ins, for instance.

“We spent a lot more time uploading photos and sharing website links with customers to reduce the foot traffic,” Fuhrman said. “We have relied more on virtual tours and using those MHVillage home sales leads.

“It hasn’t slowed down in terms of home sales, we’ve stayed very steady,” she said.

Fuhrman said residents in both communities have been able to

40 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

deal admirably with the challenges of 2020.

While rent must be collected, Autumn Leaf has been extra conscious about working with and helping people, especially for residents who meet the commitment to communicate well and make a payment plan.

There has been very little turnover during this difficult time.

Brad Wilcox said he and his brother, along with Fuhrman and two full time maintenance professionals, consistently walk the properties to look for and address issues as well as opportunities to improve the resident experience.

“There is a constant eye on the properties as we have employees who live with their families in each of our communities,” Brad Wilcox said.

“There is active management and support in ensuring that everything looks great and everyone is safe and proud to be here.”

‘A Great Place to Be’ Jessica True and her family have lived at Autumn Leaf for about three years.

“The community is a great place to be and our neighbors are all great people,” True said. “Everyone helps each other out. Our neighbor across the street from us mowed our yard because my husband and I have been working crazy hours.

“Whenever we have any issues with our home or anything of that matter, Kristee has been helpful and gets it all taken care of in a quick amount of time. I wouldn’t want to live anywhere else,” she said. MHV

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COMMUNIT Y

Flagship Communities Grows Midwest Portfolio in Indiana, Kentucky

by Patrick Revere

F

Fla g sh ip Com mu n ities ha s acquired five Midwest manufactured housing communities and has cleared the way for a pair of other purchases all valued at about $12.9 million.

“The acquisitions are an outstanding addition to our portfolio and speak to the REIT’s positive momentum following its initial public offering in October,” Flagship Communities President and CEO Kurt Keeney said. “By purchasing MHCs within our existing footprint, we are better able to achieve economies of scale and benefit from operational synergies by clus-

tering the acquisitions within our existing portfolio.”

The newly acquired communities have better than an 87% lease rate as of Dec. 1.

“These acquisitions ref lect the strong market fundamentals with the MHC space and our long-standing industry relationships,” Flagship Chief Investment Officer Nathan Smith said. “The acquisitions are in line with our stated acquisition strategy and are immediately accretive to our adjusted funds from operation/per unit with additional above-market growth over time.”

44 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Flagship’s New Midwest Communities • Evansville, Ind. The new Evansville portfolio consists of three communities with 197 homesites and grows Flagship’s presence in that market by about 10%.

• Paducah, Ky. The new Paducah portfolio consists of two communities with 81 homesites and grows the REIT’s holding there by nearly 40%.

• Northern Kentucky/Cincinnati, Ohio metro. The new Northern Kentucky portfolio is composed of two communities with 101 homesites and broadens the Flagship’s Northern Kentucky inventory by approximately 5%.

Flagship Communities Real Estate Investment Trust is a newly created, internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario, Canada.

Flagship operates a portfolio of 52 manufactured housing communities in four states - Kentucky, Indiana, Ohio, and Tennessee.

The acquisitions increase the number of total homesites Flagship owns from 8,255 to 8,634. MHV

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 45

WWW.MONROE-GIORDANO.COM TEL (813) 229-5055 • FAX (813) 229-5363 777 S. Harbour Island Blvd., Suite 140, Tampa, FL 33602

COMMUNIT Y

ADAPTATIONS IN MANUFACTURED HOUSING OPERATIONS

By Steven Blank

T

The challenges of 2020 do not need to be restated.

Fortunately, our sector of multifamily has thus far largely been spared from economic harm, but not without hurdles operators have had to adapt to and overcome.

Technological innovation and streamlined processes, in fact, have enabled manufactured housing operations to go even more remote while still achieving goals and hitting bottom line numbers.

At Blank Family Communities, we keep our model for success very simple: If you focus on curb appeal, occupancy, and collections every day, you will be successful. The pandemic made attending to community operations in the way we are accustomed to extremely difficult, if not impossible.

To be sure, remaining “hands on” in 2020 necessitated a new approach. »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 47

COMMUNIT Y

Early in the year, we recognized that collections were going to be difficult unless we could utilize online portals to the degree we were using them for other areas of operations. For much of the year, we kept our offices closed in order to keep our managers working and out of harm’s way. As such, we heavily promoted our online payment portal to residents to ensure timely payments and reduce traffic that would otherwise come into the office. The online payment portals were, in turn, widely accepted and utilized, proving that we could be successful in a remote environment.

So, the question became early on in 2020, how best to implement new processes and procedures in communities with a limited on-site presence?

–Steven Blank

As we have relied on online marketing for years, continuing to funnel in leads to grow occupancy did not entail sweeping changes. However, new technologies initiated this year included an all online application system and the ability to sign leases with limited interaction with community staff. We also created a COVID addendum to ensure new residents understood that though we had cleaned and sanitized their home prior to their moving in, it also would be their responsibility to carry on such health and safety protocols, efforts for the health and well-being of the entire community.

Maintaining a property’s curb appeal entailed a simple solution: Having community staffers take drive-through videos of the communities and upload them for regular 48 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

review by our regional management teams. This ensured that all physical aspects of the community were addressed proactively – a major responsibility of any operator.

Large manufactured housing communities possessing strong on-site staff have been affected to a lesser degree by the pandemic than the smaller communities. Communities with 150 homesites or fewer traditionally have limited resources and less experienced staff than the larger counterparts. So, the question became early on in 2020, how best to implement new processes and procedures in communities with a limited on-site presence? We started sharing resources from neighboring communities whenever possible in order to maximize on-site staff. We also pushed more responsibility onto our corporate team members, including, in some cases direct communication with community residents. We had to be careful with this, to not overload, because our corporate staff members handle multiple communities. Education and training for residents regarding all changes began in March and has continued throughout the year where and when necessary.

Ultimately, we found that if we were proactive and deliberate about communication and the work that needed to be done in order to be successful, we were able to remain highly effective, even in an environment where we could not be on-site as much as we would like. Currently, our company is back to traveling to all communities, with continued safety paramount and new systems in place that we continually hone and improve upon. All of the changes allow us to continue to achieve core goals and objectives during a time like no other, when our clients and residents rely on us like never before. MHV Steven Blank is the president of Blank Family Communities, a third-party management group in the Midwest, with 10 years of MH owner/operator experience and membership in the MMHA.

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SALES PROCESS OVERVIEW Ken Corbin, a renowned sales trainer, consultant, and speaker in the manufactured housing industry, shared an overview of his sales process with the MHInsider team. He and MHVillage Senior Graphic Designer Merit Kathan partnered to create this stylized version of the detailed sales process Corbin uses with clients of CallKenCorbin.com.

Signage Drive in Parking Office / Information Center Sales Offices Administration / Service Offices Hours / Days Open

FIRST IMPRESSIONS

PROSPECT LIST

MARKET ANALYSIS

MH Competition MH Communities Demographics (income, unemployment etc.)

Apartment / Single Family Rental Rates

GUEST REGISTRATION CARD

50 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Text Email Letter Phone NCD

FOLLOW UP PROCEDURES

CRM / PROSPECT MANAGEMENT SOFTWARE

LENDERS

Finance Matrix

FHA / VA

Chattel

INVENTORY REVIEW Pricing Policy Staging Turns Options / Custom Features

USDA Rural Development

Land in Lieu

Conventional Land/ Home

USED HOMES

ACCOUNTING & SOFTWARE

Trade-In Policy Refurbing Purchasing Homes

Cash Basis Accrual Hybrid System

FINANCIALS Profit & Loss Statements Balance Sheet Frequency

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 51

SALES PROCESS OVERVIEW

ADVERTISING

MARKETING

Social Media Radio / TV Print Signage Referrals

Office(s) Model Homes Print Materials Prospect / Customer Hand-Outs

SERVICE

Annual – by location Quarterly – by location

By Salesperson

Policies & Procedures Bill Backs Parts Control

52 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

BUDGETS SALES

SPECIAL EVENTS Housewarming Parties Shopping Competition

BUDGETS – FINANCIAL

Overall

By Location Revenue Recognition - Trigger

BUSINESS PLAN

DRAW SCHEDULE(S)

Short & Long Term Succession, Death & Serious Injury

Lenders / Financed Cash Transactions Construction Agreements Purchase Agreements

Home Only Transaction Construction Customer Doing Any of the Work

COMPENSATION

F

AF SALES STcy

li Dress Po gs Name Ta rds Ca Business Greeting grams Pro Training

CUSTOMER CLOSING AGREEMENTS

Sales Commissions Draw Schedules Salaried/Exempt Employees Non-Salaried Employees Bonus Programs

SALES / STAFF M EE

TINGS Daily Rev iew Weekly S taff

EMPLOYEE MANUAL / EMPLOYEE HOURS

NEW SALESPERSON QUESTIONNAIRE

CUSTOMER SATISFACTION SURVEY

EMPLOYEE REVIEW PROCESS

OOPS SHEET

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 53

How Selling Off-Market Can Cost You Millions

by Kevan Enger

B

efore the pandemic, the manufactured home community market was already experiencing unprecedented pricing increases. Prompted by the intersection of institutional investor demand, lack of inventory, and a national affordable housing crisis, buyers from across the spectrum were contesting for a piece of the mobile home community pie. It was an undisputed seller’s market.

Now add the COVID-19 pandemic and the corresponding economic devastation to the mix and we are in the midst of a historic period in the manufactured home space. There has never been a better time to sell. Selling to the wrong buyer or off-market, however, can cost owners millions of dollars.

54 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Investors Bet on Affordable Housing The affordable housing crisis was at an apex even prior to the pandemic. COVID-19 exacerbated the crisis. According to the National Low Income Housing Coalition (NLIHC): • There is a national shortage of more than 7 million affordable homes for the country’s 11 million-plus extremely low-income families.

• T here is no state or county where a renter working full-time at minimum wage can afford a two-bedroom apartment.

• Seventy-five percent of all extremely low-income families are severely cost-burdened, paying more than 50% of their income on rent.

Once the pandemic hit and the unemployment rate reached a historic high of 14.7% in April 2020 as millions

BROKER AGE

of Americans lost their jobs, the perceived demand for affordable housing grew--especially for properties and communities outside of higher-density centers. Typically located in lower-density areas, affordable, and socially distant, interest and demand for manufactured home communities were further heightened.

In addition, mobile home parks have lower turnover than multifamily rentals, greater value-add opportunities, and thanks to development and permitting restrictions, limited inventory. This combination of characteristics renewed and extended what I had called--pre-pandemic-the 11th inning in an already long-running seller’s market.

We are now solidly into a 12th inning. While none of us know when this game will end, we do know that it will.

Buying Bonanza The market conditions created by the coronavirus provoked a buying bonanza that has attracted a previously unseen number of institutional, private equity, and individual buyers wanting to get in on the mobile home community action.

This increased demand has pushed prices for manufactured home communities through the roof with values escalating by approximately 12% over the last 12 months, according to Green Street CPPI. This increase placed manufactured housing communities as the top-performing asset class of the last 12 months as all other property types decreased in value with the exception of industrial properties which, according to Green Street, increased in value by approximately 10% year-over-year.

Hardest hit were: • Mall properties which declined by 28% for the 12-month period • Lodging decreased by 25% • Strip retail declined by 13% Looking for profit where there is profit to be made, buyers of all property types and levels have turned to the manufactured home space in droves. While this may seem like an advantage for all mobile home park sellers, it’s not. The divergence is innate.

A Buyer’s Ideal Scenario Buyers have one goal--to buy at the lowest possible price. To do that, many are relying on the current hype to approach sellers directly and attempt to make a deal off-market. In fact, a buyer’s ideal scenario is an off-market deal where they get to speak directly with the property owner and bypass the expertise, knowledge, and competitive bids that an experienced seller-focused broker brings to the table.

Without a seller-focused broker representing the seller, the buyer knows that their chances of successfully lowballing are quite high.

When a reputable seller-focused broker that specializes in the manufactured housing asset class is a part of the deal, most lowballing buyers will make a beeline for the next unrepresented seller. If they don’t, the competitive process created by the broker will ensure that they are outbid.

A Seller’s Ideal Scenario While a buyer’s main goal is to buy at the lowest price, owners aim to sell at the highest possible price.

There has never been a better time to do that.

The market is seeing record prices for manufactured home properties as well as never-before-seen deal velocity.

These record prices however are not being done or seen on off-market deals--regardless of the size of the property.

Record-setting deals are being executed by more sophisticated buyers that do not engage in off-market transactions.

As someone with an entrepreneurial mindset and a natural negotiator, I know it can be tempting to sell off-market. You think you will save time and commission. As a seller-focused broker that specializes in selling manufactured home communities, I can tell you that the pricing difference is substantial between on-market and off-market deals easily exceeding what you think you’ll save on commission.

How Much?

On average, at least half a point on the cap rate on in-place NOI. In more direct terms, in our shop, we’ve » JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 55

BROKER AGE

been able to deliver to sellers somewhere in the range of 15% to 50% more by selling their property on-market and effectively maxing out the price the market will support.

Now that’s a seller’s ideal scenario.

• For example, on a recent deal we worked with a mobile home community owner that had a portfolio in Missouri of 531 sites. The highest offer he had received off-market was for $10.3 million. Upon being engaged by the seller, we recommended several strategies to increase the perceived value of the portfolio and conducted a comprehensive national marketing campaign to broadly promote the property.

We received multiple bids from qualified buyers and sold the property for $15 million to an out-of-region buyer, representing a premium of approximately 46% or $4.7 million over the off-market offer.

• In another deal, an owner in Texas was working with a local broker to dispose of his 300-site property for sale off-market. The highest offer they had received was $24 million. He retained our firm to sell the property on-market. We sold the property for $30 million to a new-to-market buyer. The sale represented a difference of $6 million or approximately 25%.

I have yet to meet a buyer who would willingly leave millions of dollars on the table.

When you work with an experienced and reputable seller-focused broker that specializes in the manufactured home space, you are leveraging your advantage by selling your property on-market. Without representation and selling off-market, you are giving up giving up your advantage.

So, How Does Selling Your Property OnMarket Differ From Selling It Off-Market?

On-market, your property and pocket will benefit because the right seller-focused broker will: Widely market your property to as many potential buyers as possible When you sell your property off-market, you are in effect, not marketing your property. This drastically minimizes the number of potential buyers and your potential price.

Create a competitive bidding process Interested buyers will bid against each other, increas56 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

ing the property’s perceived value and desirability, and as a result, price.

Expertly negotiate on your behalf Your seller-focused broker will work to expand on the bidding process and expertly negotiate to maximize your price. However, maximizing your price is only part of the equation. Your seller-focused broker will also negotiate to create the best terms for you. In an off-market deal, you have to negotiate price and terms for yourself, giving the buyer, or the broker acting on behalf of the buyer, the upper hand.

Provide strategic counsel on how to maximize value Regardless of how well a property is managed or maintained, there are many strategies that an owner can employ to maximize value for potential buyers. An experienced seller-focused broker will provide strategic counsel on how you can maximize the value of your property to potential buyers.

Professional transaction execution From pricing and due diligence to financials and title, the sales process is cumbersome and time-consuming.

In an on-market deal, you will have an expert on your team to execute a smooth and professionally managed transaction from beginning to end to successfully close the sale.

These are just the top five benefits of working with a seller-focused broker to sell your property on-market.

Here’s a snapshot of the benefits at-a-glance.

On-Market vs Off-Market At-A-Glance The current market conditions and the historic nature of this moment in time makes it more important than ever to protect your investment and legacy. Selling your property on-market with a reputable seller-focused broker allows you to keep your advantage and potentially millions of dollars in profit you could otherwise be leaving on the table. MHV Kevan Enger is a Partner and Manufactured Housing Director for Capstone MH. He specializes in helping mobile and manufactured home park property owners across the country successfully position, market, and sell their properties to maximize their returns.

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»A WORD FROM THE STATE EXECS MHInsider asked the directors from four state associations across the country their thoughts on the status of manufactured housing where they do business, as well as input on the industry as a whole. Here is what manufactured housing advocates from Illinois, Indiana, Kentucky and Michigan had to say.

EXECUTIVE DIRECTOR FRANK BOWMAN

EXECUTIVE DIRECTOR RON BREYMIER

PRESIDENT & CEO BETTY WHITTAKER

60 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

EXECUTIVE DIRECTOR BILL SHEFFER

EXECUTIVE DIRECTOR TIM WILLIAMS

ADVOCAC Y

»1

e know 2020 was an exW tremely challenging year.

Outside of COVID-related operational changes, what was the most difficult task of the year for your office?

Illinois Manufactured Housing Association Executive Director Frank Bowman: Besides answering questions regarding the endless and patently unconstitutional eviction moratoriums along with the state’s ill-conceived rental assistance lottery that actually encouraged and emboldened more residents to stop making payments, the most difficult task was producing a “virtual” Annual Conference and Membership Meeting as required by the Association’s bylaws. The industry’s first I believe.

The MH Industry is, in general, a late adopter of technology and many members remain a bit skeptical of all things internet. Some longtime members don’t even have email capability. Moving toward virtual board meetings has allowed for the potential of greater participation, however, as directors can join and

participate from anywhere. It does make it a bit quiet around the office though.

insure rental payments, while paying rent directly to landlords keeps everyone whole.

Indiana Manufactured Housing Association-Recreation Vehicle Indiana Council Executive Director Ron Breymier: The main

Kentucky Manufactured Housing Institute President & CEO Betty Whittaker: Bulky stimulus

challenge was coordinating with the Indiana Governor’s office and the Indiana State Department of Health to ensure our manufacturers, suppliers, retailers, service crews, and land lease communities were classified as essential business. We were successful in that regard and our members in all categories were able to establish new health and safety protocols for operations to keep employees and consumers safe during this pandemic.

The other challenge was helping our members understand how to operate within the parameters of the eviction moratoriums and rental assistance programs. That seems to be an ongoing battle. We still advocate for direct rental assistance to the landlords instead of eviction moratoriums. Moratoriums don’t

packages needed to be interpreted, compressed, and disseminated to the membership. Safety protocols needed to be communicated. Yet, there was still the regular business of the association to manage. I worked tirelessly to make sure my members’ needs were met and did so in communications to members, webinars and Zoom meetings. So the most difficult and maybe the most important task we had was keeping our members’ businesses open. In Kentucky, we were able to stay open for business which was a big win since some states had retailers and manufacturers forced to close.

Michigan Manufactured Housing Association Executive Director Bill Sheffer: I believe the most difficult task was having a sense of being engaged with members and »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 61

ADVOCAC Y

consumers while not working in the traditional office setting. It is often difficult to focus on reports, legislation, and programs that are the everyday norm while working from one’s kitchen table!

Ohio Manufactured Homes Association Executive Director Tim Williams: It has been a good year for OMHA. If you remove the COVID impact, I would say pursuing legislation initiatives have been difficult with the Ohio General Assembly cutting back it’s normal general session and committee schedules.

Yet we remain hopeful in lame duck session as time winds down.

»2

How do you feel recent regulatory changes, as well as leadership changes in Washington, will impact manufactured housing in your state?

state, and local levels. I believe one of the important initiatives was passage of legislation to require state and local community development planning to include manufactured housing, if they are going to continue to accept federal dollars for housing programs. I’m not certain how many local units of government are aware of this requirement, but it is a major step forward for the manufactured housing industry and should be highlighted.

Regarding leadership changes in Washington, I am concerned that the momentum the industry has achieved in the past four years could be stalled. Having said that, I know lots of work has been done to educate members of the U.S. House and Senate in both parties to the need and acceptance of manufactured housing in addressing our national affordable housing crisis.

So, I remain optimistic.

Betty Whittaker: We work hard Frank Bowman: Ben Carson has been a champion for factory-built housing and will be missed. His promise to step down after the first term will create a vacuum that the next secretary may not be able to fill.

Our battles, however, remain mostly state and local. Minor tweaks by the Feds will be taken in stride.

Ron Breymier: The Indiana Association was happy to see the Trump Administration and HUD under the direction of Secretary Ben Carson work together to address affordable housing production and alleviate regulatory barriers at the federal,

with Lesli Gooch at MHI for calls to actions and calls/emails to Kentucky Congress members. With the appointment of Teresa Payne as the Administrator for the MH Programs at HUD, I think we will have a good relationship and be on firm ground for all of the industry, not just Kentucky. We also have a great relationship with Representative Andy Barr who works hard for Kentucky as well.

informed and sharing information virtually in a timely manner.

Tim Williams: Under President Trump the impact of his policies on manufactured housing have been a great asset from Opportunity Zones, tax cuts, relief in excessive HUD regulation to reforming TILA by exempting retailers from being licensed as mortgage loan originators, if not involved in financing, while being able to better assist purchasers in the application process. These policies among many other positive developments will resonate for years.

However, I am deeply concerned with the new administration and what may be an adverse regulatory and legislative agenda. Yet, Lesli Gooch and MHI have been able to cultivate relationships and successes on both sides of the political spectrum, which is encouraging in regard protecting our industry from adverse actions, and therefore our state’s MH business climate.

»3

hat do you anticipate W will take a predominance of your time and attention during 2021?

Frank Bowman: Unw inding the eviction moratoriums, encouraging new development, and promoting MH’s unique and unsubsidized solution to the housing affordability problem.

Bill Sheffer: It still seems to be unknown. I believe MHI has done a very good job keeping the industry

62 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Ron Breymier: State and local zoning issues continue to hold back manufactured housing. We have

ADVOCAC Y

a good chance of addressing some of those issues in the 2021 Indiana General Assembly by attempting to remove minimum square foot requirements for manufactured homes going into land lease communities.

Many of our communities have small older manufactured homes that cannot be replaced with larger homes that are required under local zoning ordinances. We believe we can be successful in that effort. I would also like to see Indiana’s association take a larger role in promoting manufactured homes to consumers and state and local government officials.

The newly passed federal law on including manufactured homes in local planning will be helpful in that regard.

Betty Whittaker: I think 2021 will involve getting back to in-person meetings and education courses when vaccines are readily available and cases go down. In the meantime, my focus will be on member engagement and assisting the members in being as successful as possible. Another focus that has already started is on zoning. KMHI will be taking a very proactive stand on zoning and opening up manufactured housing in more areas of the state that do not allow the placement of our homes.

Bill Sheffer: Covid-19 prevented MH

due to cancellation of the Michigan legislature’s meetings and hearings.

Those bills now become moot and new bills will have to be introduced in the 2021 legislative sessions.

Tim Williams: Planning for possible future public manufactured home shows in Ohio is of high interest to myself and our board of directors.

Several years ago, OMHA had great success in putting on a homeshow in Northeast Ohio, which has given us a road map for the possibility of future shows, especially since Ohio retailers can sell homes at shows. MHV

related legislation from being passed at the end of 2020. The package of bills that had been worked on for well over a year was not voted on

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MHI is the only national trade organization representing all segments of the factory-built housing industry.

We are a trusted partner and industry leader that provides its members with a comprehensive range of advocacy, connections, education and engagement resources. www.ManufacturedHousing.org I membership@mfghome.org I 1655 Fort Myer Drive, Suite 200, Arlington, VA 22209

TOGETHER, WE ARE RAISING THE BAR AND SETTING NEW STANDARDS OF EXCELLENCE. JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 63

Advancing Manufactured Housing Under New Administration, in 117th Congress Dr. Lesli Gooch, CEO

64 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

A

s the nation emerges from the unprecedented economic and social upheavals in 2020, the need for more affordable homeownership options will continue to be a critical priority for policymakers in Washington. With a new Administration, a slimmer House Democratic majority and a Senate with the Democratic party

in narrow control, the affordable housing crisis is one area where cooperation is possible.

MHI is continuing its work to ensure the manufactured housing industry is well-positioned to be a part of federal considerations about addressing our nation’s housing challenges. As the industry’s voice in Washington, and through our

constant and influential advocacy with policymakers in both political parties, we have been able to elevate the industry’s priorities. Our access to Washington policymakers is as strong as ever, and the direct engagement from MHI members to their elected representatives also helps keep our issues at the forefront. MHI has secured bipartisan champions »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 65

ADVOCAC Y

across government, many of whom are returning to Washington, so that federal rules and regulations support the industry’s efforts to

decade. With respect to financing, FHA program requirements were updated to accommodate the financing of CrossMod™ homes, and

to work with FHA to update both its Title I (personal property) and Title II (land-home) programs, which have been needed for some time. MHI

provide quality homes at affordable prices. In addition, we are meeting the new members of Congress and working with President-elect Biden’s transition teams so that manufactured housing is considered as their housing agendas are developed.

We are building upon our momentum from 2020, where we had an active year due to the needs of the industry through the pandemic.

By working closely with Congress and the Administration to ensure the interests of the manufactured housing industry were considered, we solidified and strengthened our relationships with policymakers.

MHI ensured the industry was deemed essential and could remain in operation during the COVID-19 crisis. Further, we secured rental assistance funding in COVID-relief bills and federal funding support for businesses through programs such as the Paycheck Protection Program. In addition, we were able to secure the first-ever industry-wide alternative construction letter for our home builders to overcome supply chain shortages caused by the crisis.

In addition to our work to support the industry through COVID, we also continued to pursue our advocacy work to grow the market.

We secured an extension of the Energy-Efficient New Home Tax Credit (45L Tax Credit) through 2021. We also were successful in having HUD propose the first comprehensive updates to the HUD Code in over a

Congress directed HUD to make changes to the FHA Title I and Title II programs to better support manufactured housing.

MHI will keep this forward progress going in 2021. We are focused on four main areas: (1) improving

is also advocating for secondary market support for manufactured housing lending through Fannie Mae and Freddie Mac, and working to ensure they continue to fulfill their Duty to Serve obligations. Further, MHI is working with the Consumer Financial Protection Bureau to better support the availability of financing for consumers interested in purchasing a manufactured home.

Access to safe and affordable housing is not a partisan issue and manufactured housing provides the largest form of unsubsidized affordable housing in the country.

-Dr. Lesli Gooch

f inancing for the purchase of manufactured homes; (2) ensuring HUD Code regulations encourage innovation and are cost effective; (3) addressing local zoning and land planning issues; and (4) successful representation in Washington on issues that impact the industry.

Improving Financing for the Purchase of Manufactured Homes One of MHI’s top priorities continues to be bolstering the availability of financing for manufactured housing.

The economic fallout from the COVID-19 crisis makes access to FHA financing programs more critical than ever. As such, MHI continues

66 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

Ensuring HUD Code Regulations Encourage Innovation and are Cost Effective In 2021, MHI will continue to strongly advocate that HUD move forward with finalizing updates to the HUD Code that have been approved by the Manufactured Housing Consensus Committee but are still pending HUD action and for future revisions to be implemented regularly. Further, MHI is pushing for a streamlined process for updating the HUD Code. As a part of the transition, MHI is arguing for the elevation of the Office of Manufactured Housing Programs (OMHP) to ensure that manufactured housing is an integral part of the Department’s affordable housing initiatives.

Addressing Local Zoning and Land Planning Issues Addressing local zoning and land planning ordinances that discriminate against manufactured housing remains a top priority for MHI in

ADVOCAC Y

2021. MHI’s leadership has formed a zoning task force to develop strategies to support the placement of manufactured housing in localities

stimulus and the pandemic. We will keep monitoring and addressing supply shortages in the industry, work with Congress and the Admin-

MHI will continue its effective approach to federal advocacy so that manufactured housing continues to be a part of the affordable housing

across the country. The task force will approach this issue from all levels of government. At the national level, with increased attention by Congress on affordable housing, MHI is calling on HUD to exercise its preemption authority and use its funding inf luence when local building standards and zoning policies adversely impact manufactured housing and the supply of affordable housing. We will continue to bring to the incoming Administration’s and Congress’ attention examples of state and local zoning, planning, and development restrictions that either severely limit or outright prohibit the placement of manufactured homes.

We will also continue to support our state associations as they address these issues.

istration on their energy efficiency and transportation initiatives and look for opportunities to tout manufactured housing at hearings and convenings of Congress and the Administration. Further, MHI will continue to advocate the benefits of land-lease communities and ensure that any federal legislative or regulatory actions support this popular homeownership option.

Access to safe and affordable housing is not a partisan issue and manufactured housing provides the largest form of unsubsidized affordable housing in the country.

dialogue in Washington. While 2021 will pose unique challenges and opportunities, MHI will ensure policymakers support the manufactured housing industry’s work to supply quality, affordable housing across the country. MHV Dr. Lesli Gooch is the CEO of the Manufactured Housing Institute, the national trade organization representing all aspects of the factory-built housing industries.

Successful Representation in Washington Across the federal government, MHI is the industry’s eyes and voice. Our strong bipartisan, and bi-cameral relationships and our effective advocacy strategy will help to ensure that federal actions support the industry’s momentum in supplying quality, affordable housing to consumers. MHI will work closely with the incoming Congress and Administration officials to ensure the interests of the manufactured housing industry continue to be considered across the range of issues that impact us, including federal actions with respect to economic

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The Tao of CrossMod

™

By Ryan Wilson

I

If you’ve spent any time at all in leadership training, you’ve probably encountered “wu wei.” Translated from Chinese it means “non-action,” or, more specifically, action through non-action. It’s a philosophy that has worked to great effect and, perhaps most importantly, brought balance for some of the world’s most successful CEOs and political figures.

Non-action?

I have spent the last ten years of my career in manufactured housing, which is plenty long enough to know

that a philosophy of “not doing,” at surface level, will mix like oil and water with our readers. We’re an industry that has faced innumerable hurdles over nearly a century to become the “next big thing” — that doesn’t happen without incredible work ethic and focus.

But wu wei, “action through non-action,” is more about being present to recognize and seize opportunities as they come to pass. In other words, you accomplish more when you’re not weighed down by what has happened in the past or the anticipation of the future. You’re operating in the now. Seems simple, right? »

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 69

BUILDER / RE TAILER

A good portion of my career in this industry has been spent working close to the “new class of manufactured home” from the lens of strategic communications. It’s what I did for Clayton and MHI, and now on my own as a consultant.

Throughout that experience, I have seen CrossMod™ be both embraced and scoffed at for myriad reasons.

I embrace it, but why?

Consider conventional financing for home only. It’s a touchy subject, but let’s dive in!

As of fairly recently it’s become abundantly clear that Fannie and Freddie have put home-only financing in the “not now” column.

Frankly, it’s understandable. Requests

for historical data on home-only lending often have been disregarded or declined outright, forcing the GSEs into a “leap or don’t” situation. They didn’t, but why would they when they have a manufactured housing program already that’s a little closer to their wheelhouse. In the absence of historical information, they’ve chosen to rely on time.

So, how is CrossMod the proverbial “rising tide”? Consider that CrossMod is not entirely different from the manufactured homes we’ve produced for more than 10 years. In fact, many manufactured home builders were already building them before they were considered the new class of home—a point I’ve heard made at

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many a hotel breakfast table. But we all know that.

T he ph ra ses “conventiona l financing”, “appreciation”, and “indiscernible to” are all things being said in meetings with zoning officials prior to the stamp of approval for a swath of CrossMod developments, being built with increasing regularity.

And these are all things said for years about homes our industry builds. Minor changes to requirements, recognition of the high quality, modern design of all manufactured homes, all of these things are inevitable with time. It may very well be that we will one day look back to find this was the start.

CrossMod is not “good” or “bad”, it is a conventional financing program for manufactured homes with real estate. In future columns, we’ll explore what that means—from past attempts to potential outcomes, and how none of that matters.

This is the Tao of CrossMod. MHV With nearly a decade of experience supporting the industry’s communications and market ing efforts, Ryan Wilson has developed a passion for manufactured housing and messaging through outdated misconceptions. He is a consultant based in Northern Virginia, ensconced by nature with his wife and two kids just outside Washington D.C.

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72 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

A NEW ATTITUDE Selling Consumers on Community, Lifestyle

By Suzanne Felber

This large corner lot in Battle Creek, Mich., gives the homeowner a chance to enjoy the great outdoors in their own, private yard.

TRENDS / INSIGHT

W

What a difference a year makes!

When we were getting ready for Louisville and an exciting 2020, I don’t think any of us predicted that the world would change as much as it has. With 2020 now in our rearview mirror (Thank Heavens!), what do we need to consider with our factory-built homes and communities to stay relevant with the new buyers we are beginning to see?

Factory-built housing has often been considered the housing of the future, and it is looking like the future may be here today. More than ever, the stigmas that have followed communities and factory-built housing are melting away, and consumers are giving us a fresh look with open minds. It’s now up

to us to show them why we should be their first choice for a new home and why community living is now more relevant than ever.

Marketing and retaining new buyers takes a fresh approach.

Hanging out a sign doesn’t attract buyers - they are driving as little as possible. And we don’t want people just popping into our sales offices - we need appointments to create a safe selling and leasing experience for all of us.

How many of you have thought about the type of wifi and internet access that you offer? Every day buyers are “cutting the cord” with their traditional phone and cable companies. Instead, they have a mobile phone as their primary phone and

74 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

switch to streaming internet-based entertainment like Netflix and YouTubeTV. Perhaps 2021 will be a year where buyers and renters are more concerned about what your internet and mobile access is and are more than willing to pay for it. With many schools offering virtual learning, it can be a strain on an older internet service when three kids are learning on different computers in the same home at the same time.

Rethinking the services that your community offers should start with upgrading the internet that your community offers so you can compete with apartment communities that often offer basic service as part of their rent. One of the bonuses is that if you can get your homeowners

TRENDS / INSIGHT

to switch from dish-type services to streaming, you can also get rid of all of those unsightly receivers that so many people have on the outside of their homes.

ZOOM and other services like that are here to stay, at least for a while.

Having ZOOM available for your residents makes it possible to offer activities that they can engage in from the safety of their own homes while socializing with their neighbors. The beauty of these is that you can make events invitation only and know who is participating. Book Clubs, cooking enthusiasts, wine tastings, a gardening club… all of these are ways to engage your residents in a new and cost-effective manner. Reach out to local businesses to host a chat to educate your residents or let them know about the services they offer.

We are all in this together, and we need to support our local businesses.

Buyers now look at the homes they want to buy or purchase differently.

Since many of us are spending more time at home, the kitchen has a renewed sense of priority. Ample dining space gives us a place to enjoy a meal together or gather to do homework. Consumers are curious about new cooking innovations like air frying, sous vide, and pressure cooking in an InstantPot device.

These need countertop spaces to use them and cabinets to store them in.

Smart technology is here to stay and has become much more affordable.

Again many of these products use wifi to connect and talk. Have you re-evaluated where you have plugs located in your homes? Do some have

USB connections, so it’s easy for you to recharge your devices?

...we need to think like our buyers and remember what is important to them.

–Suzanne Felber

ZOOM rooms are also a feature that will be trending. Since we are the housing of the future, it was interesting that some homes at the

Louisville Show in 2018 featured smaller rooms that could be closed off from the rest of the house.

Barn doors or other features made these areas that could be closed off.

These, to me, are the ideal rooms for someone to work out of their homes, home school, or to participate in ZOOM conferences. Something to keep in mind that will also be trending is soundproofing. There is nothing worse than being on a call and hearing a conversation going on in another room. Carpeting is an excellent sound absorber, and we may want to think about having that in these rooms or using more area rugs and curtains.

Touchless items are also going to continue to rise in importance. With »

Residents with a green thumb have the opportunity to plant their own gardens.

Photos courtesy of Lisa Stewart, Lisa Stewart Photography.

TRENDS / INSIGHT

this virus not going away any time soon, keeping surfaces clean and sanitized will be critical in keeping your community safe. Changing out locks, faucets, light switches, and other areas touched by many people to smart, touch-free solutions will help keep everyone safe and let your community know that you care.

Having a video-enabled doorbell is now a priority, not a luxury. Knowing what is going on around your home and knowing that a delivery driver is at the front door is now affordable. RING also includes an almost neighborhood watch service where you are alerted if anything happens in your area. It is an excellent service, and I am much more

comfortable knowing what is going on around me.

We are all craving community and interacting with people more than ever. Our land-lease communities offer that without our residents having to share hallways, elevators and stairs, and other areas that are hard to keep clean and safe. There is nothing like living in a home without connecting walls with someone else and having a yard and garden of your own. Our communities offer what many people are searching for: community.

There are exciting times ahead of us, but it will take much education, marketing, and good old common sense to keep us ahead of the competition. With things changing

Golden Pond Estates in Akron, NY., offers porches, lake or pond-side lots, and ample community outdoor areas where you can enjoy all four seasons.

76 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

so quickly and consumers having almost any information that they want readily available to them, we need to think like our buyers and remember what is important to them. MHV Lifestylist Suzanne Felber has been active in the housing industry for over 30 years.

Felber realized that factory-built housing was the housing of the future, and has been actively working to promote the lifestyle ever since. She started American Housing Advocates as a way to share the great news about manufactured housing. To learn more about her work, visit www.lifestylist.com and www. americanhousingadvocates.com, or read her @lifestylist social media posts.

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The Accredited Community Manager (ACM) certification was developed by the Manufactured Housing Educational Institute to raise the standard of training for manufactured housing community managers.

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continued from page 80

THE ALLEN LEGAC Y

Only MHI grasped the opportunity.

The first day of 1996, the third historic, community watershed moment occurred, as MHI executive James Ayotte, CAE, was assigned to lead the newly organized National Communities Council. All ideas and programs alike, it started off with a lot of enthusiasm and volunteerism, but soon it became apparent how expensive a proposition it was to attend several MHI/NCC meetings each year, usually in expensive resort locations. As a result, NCC membership and leadership increasingly steered toward senior salaried executives of large property portfolios.

During the next few years, the annual shipment volume of HUD-Code homes plunged from a renascent high of 372,943 units in 1998 to 81,889

in 2008, and hitting the industry low of 49,789 in 2009. This reversal in business performance affected manufactured home communities as well! The “whys & wherefores” of this turn is outside the scope of this column, but suffice it to say, community owners and operators responded by calling for a national meeting among themselves, at Fountainview community in Tampa, Fla., on Feb. 27, 2008. The gathering, coined as a State of the Asset Class meeting, attracted more than 100 participants. By the end of the day, with leadership of Randy Rowe, then of Hometown America, the group articulated and agreed upon five strategies and an action plan to move forward. To read more of the history of this traumatic decade in manufactured housing history,

78 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

read “SWAN SONG, A History of the Realty Asset Class from 1970 to Present Day” available for purchase from EducateMHC. A scant year later, on the same date, another 100-plus manufactured housing professionals convened at the new RV/MH Heritage Foundation’s Hall of Fame, Library, and Museum facility in Elkhart, Ind. This group was composed equally of representatives from HUD-Code housing manufacturers and manufactured home community segments of the industry.

And what was the purpose of this convention?

The manufacturers wanted to sell more new homes; community owners/operators wanted to buy more homes, but wanted design factors favorable to on-site installation, in other words, single-section or modest-sized multi section homes in configurations befitting the community aesthetic and lifestyle, with durable features, to control costs and improve the available readiness of homes between successive homeowner/site lessees and unit renters.

This was accomplished, and later the same year Don Westphal, a community development consultant, suggested the moniker “Community Series Home” for the newly designed, community-friendly manufactured housing design. The following year, 2010, is when the term “land-lease community” was adopted to better identify the realty asset class that offers a variety of dwellings, not just HUD-Code homes.

THE ALLEN LEGAC Y

A lot had been occurring between the enthusiastic launch of MHI’s NCC in early 1996 and the manufactured housing industry’s max decline in ‘09. New HUD-Code homes, given the demise of an estimated 10,000 independent “street” retailers at the turn of the century — due to loss of easy access to chattel capital — had become increasingly marketed and sold, often through seller-financing, on-site in communities. But all was not well. Professional property management continued to be the exception rather than the rule among these properties. Despite efforts to promote MHEI’s Accredited Community Manager program and PMN Publishing’s “Manufactured Housing Manager”, participation at NCC meetings had become minimal.

And there was an aborted attempt to bring unique products such as newsletters, directories (And the ALLEN REPORT), and services into the soon-to-be NCC division of MHI. During 2014, a couple dozen community owners and operators met at Chuck Fanaro’s legendary Saddlebrook Farms, in Grayslake, Ill.., and suggested formation of a Community Owners (7 Part) Business Alliance, or COBA7, to shoulder that resource mantle for communities nationwide. COBA7 would continue until early 2019, when it merged with EducateMHC, which, to this day, carries on product and service resourcing on behalf of manufactured home communities and land-lease properties nationwide.

The final seminal meeting of note occurred during October 2020. The SECO Conference, this past year, was

unique in several ways. It marked the 10th anniversary of an event held annually in Atlanta, exclusively for land-lease community owners/operators. With the draw of participants from throughout the U.S., SECO had become a popular national venue for this realty asset class. And this year, due to the aforementioned coronavirus pandemic, SECO was held virtually – and successfully.

Community owners Spencer Roane, MHM, and David Roden, co-founders of SECO, along with their support team, have nurtured this venue from being two days in length, to now four full days, from start to finish.

By now it should be clear, “mobile home parks” to land-lease communities, have come into their own during

the past 30 plus years. No longer is the property type a backwater phenomenon, but one of the most sought after real estate investment alternatives across commercial property lines. And yes, MHI’s NCC division continues to be our property type’s national advocate of record, and hopefully, effect. MHV George Allen has owned and fee-managed land-lease communities since 1978.

He’s a former MHI Industry Person of the Year and a member of the RV/MH Hall of Fame. He has been designated a Certified Property Manager-Emeritus and a Manufactured Housing Manager-Master. He’s also a senior consultant and staff writer with EducateMHC. Allen can be reached at (317) 346-7156 and gfa7156@aol.com.

JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM | 79

THE ALLEN LEGAC Y

National Land Lease Community Meetings That Made a Difference

by George Allen, CPM Emeritus, MHM-Master

C

irca 1980, we talked “mobile home park” lingo, and there were no national meetings to speak of among owners and operators of this unique, income-producing property type. Consolidation was just getting underway, meaning there were far more sole proprietor owners afoot than portfolio ‘players’.

In early 1989, the first ALLEN REPORT debuted.

This changed everything! Overnight, the census of portfolio owners/operators jumped from 25 to more than 100. Two years later, in 1992, the first International Networking Roundtable for community owners and operators was held in Clearwater, Fla., drawing more than 100 attendees. Once these folks had met their peers, it was decided to convene annually – which they have, until 2020, when the coronavirus pandemic forced a postponement into mid-2021.

80 JANUARY / FEBRUARY 2021 EDITION • MHINSIDER.COM

The following year, several owners/operators, with the largest property portfolios, decided they needed greatly improved national representation and advocacy for what would soon become known as “manufactured home communities”.

Why? Unbeknownst to the manufactured housing industry at large, several portfolio firms were planning to go public as real estate investment trusts (REITs’) during 1994 and 1995. So they convened in Indianapolis on Aug. 31, 1993, for a daylong strategic planning meeting. The result was a decision to meet again, eventually forming an industry steering committee to recruit dues-paying members, and search for a home with the Manufactured Housing Institute, Institute of Real Estate Management, even the National Apartment Association. continued on page 78

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