January - February 2022 by MHInsider

THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS

COMMUNITY EDITION MANUFACTURED HOMES WITH MODERN TECH 22 DESIGN TRENDS FOR 2022

JANUARY/FEBRUARY 2022 | MHINSIDER.COM

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PAGE 26

CONTENTS

22 DESIGN TRENDS FOR 2022 With rent costs outpacing home prices, more of us are working from our homes, and a staggering 45 million millennials are ready to become first-time home buyers. Now, our industry has record opportunities ahead of us to sell more homes than ever.

HAPPENINGS 6 Industry Happenings INDUSTRY NEWS 11 Economic Review and Outlook in Q&A with First Trust Advisors 14 2022 RV/MH Hall of Fame Inductees EVENTS 17 Manufactured Housing Industry Events 18 Biloxi Manufactured Housing Expo 21

Congress & Expo 2022

COMMUNITY 22 A 15 Year Look at Community Economies 36 Portfolio Owner Builds, Expands Affordable Housing in Washington

2 | JANUARY / FEBRUARY 2022 EDITION

PAGE 70

As manufactured housing communities aim to elevate their status among consumers, internet access is set to play a key role in attracting and keeping residents.

Yes Communities Buys Upgraded 55+ Property in Michigan

47 UMH Grows through JV, Gains First Florida Community 50 New Manufactured Home Communities Continue to Rise 52

Land Conservancy Purchases Park on Lake Erie

RHP Expands Portfolio to North Carolina

BROKERAGE 60 Manufactured Housing: The Key to Solving the Housing Crisis? ADVOCACY 66 MHI Provides Members Interactive Map of Zoning Impact on Manufactured Housing 69 HUD Uses National Communities Council Gathering to Announce Revised Title I Lending Rules THE ALLEN LEGACY 76 The Evolution of Community Appraisal PART 1

MHINSIDER.COM | 3

FROM THE

publisher

Market Change Persists

VOLUME 5 • EDITION 1 JANUARY / FEBRUARY 2022 MHInsider.com Publisher

Patrick Revere patrick@mhvillage.com

Senior Graphic Designer Merit Kathan merit@mhvillage.com

Change, yet again, proves itself as the only certainty. And what change we’ve seen! Even coming off 2020 and through ’21, the start of '22 has been a degree of fast-paced tumult that is awe-inspiring, and not always in the best of ways. The cost of doing business is on everyone’s mind, pandemic-related materials scarcity to finding the labor needed to meet demand, insatiable demand... And general inflation has persisted through two quarters and continues to threaten the stability of our organizations. We all maintain a steady eye on the horizon and await signs of change from the Fed, at what pace for easing in the bond market and toward what level of interest rates? Still, despite the uncertainty, and amid all this great change in business practice and expectation, the manufactured housing industry grows. Annual shipments in the manufactured housing industry landed above and beyond projections for the most part, and for the first time in 15 years, came in over the 100,000 mark, a major milestone for the many industry professionals who answer the call each day. 2022 presents itself as another unique year in business, and of course , another fine example of how the manufactured housing industry can grow the part of the domestic housing market that matters most, that is most needed, that is the most valuable, and the one that continues to innovate and insist upon national to local change that will bring a greater and greater volume of attainable homeownership.

Contributing Editor George Allen gfa7156@aol.com

Editor

Sean Vichinsky sean@mhvillage.com

Contributors

Steven Blank James McCaughan Joe Costello Suzanne Felber Don Westphal

Cover Image

Cover Photo Courtesy of Lisa Stewart Photography

Advertising Sales

(877) 406-0232 advertise@mhvillage.com

Editorial & General Inquiries Patrick Revere 2600 Five Mile Road NE Grand Rapids, MI, 49525 (616) 888-6994 patrick@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.

Copyright ©2022 MHVillage, Inc. All rights reserved. Reproduction of MHInsider content, MHI or other contributor content, in part or in whole, is prohibited without written authorization from MHVillage, Inc.

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

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

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Happenings

Indu stry

HAPPENINGS

Transactions RHP Acquires Penn., Wisc. Communities

to two of the communities that can accommodate approximately 120 added home sites.

RHP Properties, the nation's largest private owner and operator of manufactured home communities, has purchased Bonneau Heights in Gettysburg,

Modular Builder Opens New Facility in California

Penn., and a set of communities in Wisconsin. The

A modular home builder, Plant Prefab Inc., has

all-ages, 45-site, pet-friendly property is RHP’s 12th in

opened a new home building facility in Kern County,

Pennsylvania, located 10 miles from downtown shops,

Calif., to bring high-quality, environmentally-friendly

restaurants, and other amenities. The company also

homes to market faster and more cost-efficiently

acquired Holiday Park I and II, both located in Stevens

than standard site-built construction. “Right now,

Point, Wis. The purchase expands RHP’s Wisconsin

it’s hard to get buildings built on time,” Plant Prefab

portfolio to 12 communities and brings the company's

Vice President Josh Tech said. “With our building

total of manufactured home communities to 301.

system, we actually can do things much better, at a better quality than you can do at the site.”

Green Courte Purchases Communities in New York

Yale Closes on Toledo-area Portfolio

Green Courte Partners, LLC, a private equity real

Yale Realty and Capital Advisors closed on a 143-

estate investment firm, has acquired a portfolio of

site, fully owner-occupied manufactured housing

four land-lease communities with about 700 exist-

community portfolio, Yale Midwest Regional Director

ing home sites in the greater Rochester, N.Y. area,

James McCaughan said. The two institutional-quality

increasing the organization’s presence in the industry

properties comprising this $8.45 million portfolio

to 21 communities and 7,500 sites, including approxi-

have established infrastructure and easy access to

mately 1,900 homesites in the Rochester market. The

public utilities. The community represents a unique

Rochester acquisition includes vacant land adjacent

opportunity to substantially expand by 150 sites in

6 | JANUARY / FEBRUARY 2022 EDITION

an area experiencing strong population, income,

communities with 179 homes, while Capital View and

employment, and property value growth.

Hidden Oaks have 32 and 43 lots, respectively. North Raleigh is comprised of five manufactured housing

Four Leaf Properties Acquires Two Ohio Manufactured Home Communities Illinois-based Four Leaf Properties has acquired Dover Glen in Wauseon, Ohio, and West Unity Estates

communities totaling 137 lots.

Capital Square 1031 Acquires Florida Retirement Communities

in West Unity, Ohio, adding 188 sites to the portfolio.

Delaware-based Capital Square 1031 has acquired

Both communities are family and pet-friendly, offer-

a 4.5-star, 55+ manufactured home community in

ing small-town living with a short commute to Toledo.

Lakeland, Fla. The community, Twin Palms, has

They are the first Ohio communities in the portfolio,

222 homesites on 32.88 acres located near Interstate

Four Leaf’s Michael Callaghan said. Cost efficiencies

4 and U.S. Highway 92 with access to Tampa and

within homes at the new communities include Ecobee

Orlando. Twin Palms offers residents a heated pool,

smart thermostats, Energy Star appliances, and new

horseshoe and shuffleboard courts, and a clubhouse

home warranties. All residents also enjoy FLP Life,

with billiards, ping-pong, darts, and more.

the resident lifestyle experience that includes events, clubs, and parties.

MHP Inc. Purchases Four Parks

Capitol News OMHP Extends Industry-Wide AC Letters The Office of Manufactured Housing Programs has

Manufactured Housing Properties Inc. acquired

issued extensions for two industry-wide Alternative

four manufactured housing communities in the

Construction letters for exterior doors and 25-amp

Columbia, S.C., market since mid-2021. The com-

circuit breakers through June 30. The Manufactured

munities are Anderson, Capital View, Hidden Oaks,

Housing Institute worked with OMHP in light of the

and North Raleigh. Anderson is a collection of small

supply chain challenges to get schedules for the AC » MHINSIDER.COM | 7

Happenings

letters extended. These industry-wide letters support

Yes Helps Residents During Holiday Season

manufacturers that need the flexibility to continue

Yes Communities donated $10,000 to five

the production of affordable housing, saving time

resident families based on nominations from

and costs that otherwise would be incurred.

community and regional management teams ahead of the holiday season. Resident families were

Industry Giving Retailer Provides $10,000 Gift to N.M. Nonprofit

selected on criteria of need and positive standing

Valley Homes, a manufactured home retailer in Las

“Each holiday season and throughout the year, Yes

Cruces, N.M., celebrated its second anniversary in

is committed to giving back to our residents,” Yes CEO

November by donating $10,000 to the Mesilla Valley

Steven Schaub said. “I’m immensely proud of the work

Community of Hope. Valley Homes owners Craig

that is done through the Yes We Care program, and

Bullock and Elizabeth Driggers and their two children,

we are planning to grow this crucial program next

Jack and Maggie, presented the check to Community

year and beyond.”

within their local community.

of Hope Executive Director Nicole Martinez. “Just

The donations are distributed via a charitable

like the Community of Hope, we're invested in up-

program that has invested more than $430,000 in

ward mobility for our neighbors and we're proud to

assistance to deserving residents, local organizations,

celebrate our second anniversary by supporting the

and team members.

incredible work MVCH does in our community. My

“We were so excited to present Donna, a long-time

wife and I were born and raised in New Mexico and

resident in our community with $2,000 to help her

we look forward to raising our two children here as

celebrate Christmas with her family this year. She

well. We're fortunate to be in the position to help

was thrilled to receive the check and we were happy

out, especially as we head into the holidays and the

that we could help alleviate the expenses at such an

season of giving,” Bullock said.

important time of year. At Yes we believe residents are family,” Yes Regional Manager Claudia Flores said.

Craig Bullock and Elizabeth Driggers of Valley Homes present a check to Community of Hope in Mesilla, N.M.

Community Owner Donates $10,000 to Address Childhood Hunger RHP Properties donated $10,000 on GivingTuesday to No Kid Hungry, the only national campaign committed to ending childhood hunger in the U.S. In the wake of the coronavirus, millions of children in the United States continue to face hunger, as many as one in six kids. Through a combination of emergency grants, strategic assistance, advocacy, and awareness, No Kid Hungry is helping kids, families, and communities get the resources they need.

Personnel Three Pillar Communities Hires Ahead of Fund Launch Three Pillar Communities has hired Mike Skoczylas as chief financial officer, Jack Walls as director of manufactured home sales, and George Han as acquisitions manager. Skoczylas is a licensed CPA and attorney with expertise in commercial real estate finance, tax, and accounting. Walls previously 8 | JANUARY / FEBRUARY 2022 EDITION

Property Group, a major owner of manufactured

Cavco Industries Mourns Loss of Longtime Team Member

housing communities in the Western United States.

Rafael Lozano, Jr., 60, of Lakeland, Fla, passed

Han brings experience as an institutional real estate

away Aug. 9, 2021. He had worked in the painting

investor at AIG, as well as real estate private equity

and exterior departments at the Palm Harbor Homes

experience working with partners such as Oaktree

manufactured housing facility in Plant City, Fla.,

Capital. “Because there's such strong demand for

for nearly 20 years. Mr. Lozano’s friendliness and

affordable housing, we are rapidly scaling up our

skills will be deeply missed by his team members. He

business, and in order to keep delivering the results

married his favorite dance partner, Macrina Lozano,

that our residents and our investors expect, we knew

who he met at a dance when they were just kids. They

we needed to bring that next level of professional

celebrated their 40th anniversary in May 2021. He had

talent on board,” said Three Pillar Communities

four children, Griselda, Rafael, Evelyn, and Cindy, who

co-founder Daniel Weisfield.

thought the world of him because of all he had built in his life. Born in Matamoros, a city in Tamaulipas,

In Memoriam Manufactured Housing Loses Longtime Leader

Mexico across from Brownsville, Texas, Mr. Lozano forfeited his formal education early in life to help

William Wade Matchneer III, former

provide for his family. He learned as many trades in

director of the Manufactured Housing

a variety of fields as quickly as he could. He worked

Program for HUD, passed away Dec.

until the last minute. Most importantly, Mr. Lozano

18, 2021. Mr. Matchneer had been

understood the power of building and maintaining

diagnosed with multiple myeloma

relationships in his life. He enjoyed spending time

in 2003 and given three years to live.

with family and friends, doing cookouts with a beer

For 18 years, he continued to prove that prognosis

in his hand and his music blaring so everyone could

wrong, never taking a leave of absence from work for

have a good time. Right before his passing, Mr. Lozano

medical treatment. He worked uninterrupted for the

rekindled his relationship with one of his brothers,

Occupational Health and Safety Review Commission

honoring his father's dying wish. That rekindled

in Washington, D.C. through two stem cell transplants

relationship allowed many of the extended family

and continued working for the U.S. Department of

to reconnect and, through that, a legacy lives on.

Housing and Urban Development. Mr. Matchneer

Mr. Lozano is survived by five grandchildren, other

earned his J.D. from St. John's University School of

siblings, nieces, and nephews. Mr. Lozano is buried

Law and held a B.A. (summa cum laude) from Pace

in Hopewell Funeral Home & Memorial Gardens next

University. He retired to Pittsburgh from the Federal

to his father, mother, and aunt.

Reserve Bank in 2014 and joined the law firm of Bradley Arant Boult Cummings. Mr. Matchneer was an avid Ohio State Buckeyes football fan and enjoyed Formula One racing, fly-fishing, and spending time at the family's summer home in Brookville, Pa. He is survived by his wife of 37 years Laurie Matchneer, his step-son Brian (Lisa) Pieczko Jr., his sister Nell (Doug) Schiavi, his brother Rick (Angela) Matchneer, his stepsister Catherine (Wayne) Bardsley and his in-laws David (Joan) Bardsley. In lieu of flowers, donations in memory of Bill should be sent to: UAMS Foundation, 4301 West Markham, Slot #716, Little Rock, AR 72205,

Have industry news you'd like listed here? Call Magazine Publisher, Patrick Revere, at (616) 888-6994, or email at patrick@mhvillage.com

Designation-Myeloma Research.

MHINSIDER.COM | 9

Happenings

managed manufactured home sales at Investment

UMH PROPERTIES, INC.

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

$2.1 billion in total enterprise value 127 communities, 24,000 homesites, 10 states Housing approximately 21,000 families 7,000 total acres, 3,500 acres in Marcellus and Utica Shale regions

UMH Awarded 2021 Manufactured Home Community Operator of the Year and 2021 Retail Sales Center of the Year by the Manufactured Housing Institute For more information, visit www.umh.reit or contact ir@umh.com 10 | JANUARY / FEBRUARY 2022 EDITION

Industry News

Economic Review and Outlook in Q&A with First Trust Advisors Economist Bryce Gill Contributes Thoughts on Economy, Housing

MHInsider posed a set of questions on the economy

and the housing market to First Trust Advisors, and gained a series of responses that certainly are best represented if set out in their entirety. What follows is the candid Q&A between MHInsider Publisher Patrick Revere and economist Bryce Gill. Patrick Revere: Provide us your final impressions of 2021. Bryce Gill: I think there are two big takeaways from 2021. The first for me is the divergent recovery we have seen between different states. In my opinion, this is largely due to the severity of COVID regulations like lockdowns and school closures. The result has been huge internal migration. »

MHINSIDER.COM | 11

Industry News The recovery isn’t just about vaccination as the

COVID rollercoaster.

conventional wisdom thinks, it seems to have a huge

The difference in recovery is also noticeable in un-

cultural component based on risk tolerance. Places

employment rates. There is a pretty strong correlation

like Texas have seen their service industry bounce

between strictness of pandemic response and higher

back much faster than places like New York even

rates of unemployment across the states.

though the former has a much lower vaccination

The other big story to me is inflation completely

rate. Certain urban areas seem to be stuck on the

surprising most economists with its comeback. This

12 | JANUARY / FEBRUARY 2022 EDITION

PR: What concerns you most right now?

not how much the actual economy is producing.

BG: I nflation remains my biggest concern. We

Obviously, lockdowns, capacity restrictions, and loss

anticipate it will moderate as long as nothing

of labor have all affected how much we produce in

unforeseen happens. But I can’t personally

the U.S. However, the recent trend of blaming supply

think of a period when tensions around the

chains for all the problems seems wrong to me as

world were so high. Obviously, there are a lot

well. You'd think that, by focusing on demand, it

of issues surrounding our relationship with

would be easy to see it coming when you compare

China in the aftermath of the pandemic, and

measures like personal income versus its longer-term

there’s widespread public unrest due to ongoing

trend. This was obviously massively boosted by the

restrictions around the world. People remember

stimulus programs from the Federal government.

the 1970s inflation as just being caused by one

However, even after the stimulus checks and boost-

thing, specifically the OPEC embargo. But it was

ed unemployment benefits, PPP loans have rolled

a series of things. Vietnam, the Great Society

off, and with the U.S. still five million jobs short of

programs, ending the gold standard, OPEC… If

pre-COVID levels, personal income remains well

there’s another shoe about to drop this inflation

above the long-term trend. Clearly, this isn’t just a

problem could be much longer-lasting.

supply chain story. People have more money in their

PR: What's is in store for the housing market in '22?

pockets than ever. This, along with the inability of

BG: I’d expect housing to continue to do well. De-

the economy to adequately ramp up production, is

mand is so high that really the big constraint is

what is fueling inflation.

getting builders to put up enough new invento-

PR: What do you see emerging in '22?

ry. As labor shortages ease, construction should

BG: T he image below shows our outlook for 2022

ramp up. Even with the Fed raising rates I think

on various measures. Overall I think the real

sales will still be higher than 2021, especially

economy will continue to improve now that

if we get more supply. Overall I’m very bullish

Omicron has basically destroyed the narra-

on housing over the next several decades due

tive around government COVID restrictions.

to demographic factors with millennials fi-

However, I do think the financial markets will

nally entering the market in force. They are

be volatile as the Fed begins to normalize its

now the largest generation and his is a key

pandemic-era policies.

home-buying demographic. MHV

MHINSIDER.COM | 13

Industry News

is partly because most only focus on demand and

Industry News

Inductees

2022 RV/MH Hall of Fame

MANUFACTURED HOUSING INDUCTEES

David J. Carter Sr. - Supplier, Florida

Harry Karsten - Manufacturer, California

Dave Carter in 1986 sold a lumber yard and an

Harry Karsten built The Karsten Co. and Karsten

electrical supply business to concentrate on Dave

Homes into a West Coast powerhouse. It was

Carter & Associates, supplying the electrical and

founded in 1995 and built its workforce to more

building product needs of the manufactured

than 700 people, including a couple hundred at

housing industry. In three years he took DCA from

the homebuilding facility at its plant near Mather

a regional provider to a national supplier with a

Airport in Sacramento. The company expanded

dozen distribution centers. In 1993 the business

from California to other homebuilding sites in Al-

added plumbing products, diversified into RV

buquerque, N.M., Stayton, Ore., and Breckinridge,

in 2008, and helped rebuild the manufactured

Texas. At the time it was purchased by Clayton in

housing industry during its 15+ year recent era of

2005, the facilities were putting out better than

growth. DCA was named MHI Supplier of the Year

1,700 homes a year in 14 states in the West and

in 2011, and Dave Carter continues to advocate

central United States.

for affordable housing on the local, regional, and national levels. 14 | JANUARY / FEBRUARY 2022 EDITION

Industry News

Raylen Gritton - Dealer, California

Eugene W. Landy - Communities, New Jersey

Ray Gritton has been in the manufactured

Eugene Landy is a founder and current chairman

housing industry for more than 40 years. He

of the board for UMH Properties, Inc., a public-

started his first dealership in Modesto in the 1970s

ly-owned REIT in the ownership and operation

and has worked for large corporations in charge

of manufactured home communities. He is a

of hundreds of dealerships. He currently owns 13

graduate of the U.S. Merchant Marine Academy

locations in five states. Gritton has won multiple

as well as Yale Law School, where he served for

awards and has served on boards for state and

many years on the board of advisors. UMH, now

national industry associations.

operated by Eugene’s son, Sam, has a portfolio of 127 manufactured home communities with about 24,000 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, and South Carolina. UMH also owns and operates one community in Florida through its joint venture with Nuveen Real Estate.

Tim Williams - Finance/Lender, Tennessee Tim Williams had a long, productive , and diverse career in manufactured housing even prior to co-founding 21st Mortgage in 1995. As CEO of

RV INDUCTEES

the organization, he has been instrumental in

Mark Ferkey - Dealer

providing improved financing for affordable homes across the country as well as growing 21st into one of Knoxville's largest employers. In addition to his efforts in Tennessee, Williams has been a

Donald Gunden - Manufacturer Veronica Hepp - Dealer Lewis Shaum - Supplier

tireless advocate for manufactured housing in Washington, D.C., and nationwide.

MHINSIDER.COM | 15

Events

Biloxi Manufactured Housing Expo

to excel in today’s housing marketplace. Choose from

Monday, March 28 — Wednesday, March 30, 2022

attending top-quality educational programs with

Biloxi, Miss. — IP Casino Resort and Spa

powerful speakers, networking with the industry’s

Formerly held in Tunica, the South Central Man-

most successful professionals, developing new busi-

ufactured Housing Institute has moved its annual

ness strategies, and visiting the exhibit floor to see

manufactured home show to Biloxi, Miss. Each year,

the latest products and technologies.

SCMHI hosts North America’s largest indoor/outdoor manufactured home trade show. The 2022 show

2022 MHCA Annual Conference

has myriad networking opportunities, features an

and Golf Tournament

impressive exhibit hall that showcases the newest

Tuesday, May 10 — Thursday, May 12, 2022

features from industry suppliers, and educational

Fort McDowell, Ariz. — We-Ko-Pa Resort

training to help build a business.

Located a short drive from the Sky Harbor airport and just north of Scottsdale, We-Ko-Pa offers

MHI Congress & Expo

a prime locale to meet, exhibit, and shop for the

Monday, April 11 — Wednesday, April 13, 2022

latest industry development and trends. With

Orlando, Fla. — Rosen Shingle Creek Resort

awe-inspiring views and a day of great golfing,

The MHI Congress & Expo is the national trade

Manufactured Communities of Arizona invites

show where manufactured housing professionals

manufactured housing professionals for a productive

can obtain the knowledge and resources necessary

three-day outing in the desert.

If you have an event or gathering — virtual or in person — you would like to have listed with MHInsider, please contact us at: www.mhvillage.com/pro/manufactured-housingindustry-trade-shows/

MHINSIDER.COM | 17

Events

MANUFACTURED HOUSING INDUSTRY

Events

Biloxi Manufactured Housing Expo Delivers Unique Education, Networking Opportunities

Organizers for the Biloxi Manufactured Housing

extra day or two in Biloxi could find time to stroll the

Expo, held at the IP Casino Resort Spa March 28 - 30,

boardwalk, do some fishing, tour aboard the Betsy

have developed a slate of seminars presented by some

Ann, take a look at the Mardi Gras Museum, and

of the industry’s most successful professionals for

certainly find a seat in some of the gulf coast’s most

the gulf-side gathering this spring.

enticing seafood spots.

Manufacturers attending the event as booth

The Biloxi Manufactured Housing Expo will kick off

exhibitors and sponsors include Cappaert, Cavo,

with a Monday golf tournament and opening night

Champion, Clayton, Deer Valley, Franklin, Kabco, and

Welcome Reception at the IP Casino Resort.

Sunshine. Some manufacturer representatives also

A few select sponsorship opportunities remain,

will participate in a moderated Manufacturers Panel.

and event organizers continue to register at-

Other professionals from across the country attend-

tendees for the four-day trade show. Contact the

ing the event come from all corners of the industry

Biloxi Manufactured Housing Expo for inquiries

including finance, retail, community operation,

at info@biloxihomeshow.com.

supply, and services. Attendees looking to book an

The Biloxi Show Education Schedule Retailer Seminars Tuesday, March 29, 2022

10:00 - 10:50 a.m.

9:00 - 9:50 a.m.

How Today’s MH is Changing the Industry

Virtual Selling - Competing for Buyers in a Digital World

MH Advantage™, CHOICEHome™: Fannie Mae and Freddie Mac are making a big investment by creating exciting financing pro-

Having a good location, visible signage and fur-

grams for manufactured homes. What are the MH

nished lot models are no longer enough to attract

Advantage and CHOICEHome programs? What do

today’s buyers. Retailers MUST learn to leverage new

they mean for the MH industry… and why should

technologies to attract buyers and sell homes. What

you be paying attention?

are those technologies, and how can every retailer employ them? This session explains it all. · Discover how prospects shopping habits have changed due to technology and the pandemic. · See demonstrated creative and effective use of technology – and how to use it.

· Understand what makes a home eligible for MH Advantage or CHOICEHome. · Find out how the programs can increase the scope of your business. · Determine how and when to use MH Advantage and CHOICEHome to close more sales.

· Learn why your website and social media is the launching point for every sale you make.

10:00 - 10:30 a.m. Sales Management 3.0: You Can’t Manage Sales Like It’s Sales Like It’s 1980 Closing more sales is the objective of every company. But without effective leadership in place, sales will

18 | JANUARY / FEBRUARY 2022 EDITION

Events

not happen to the degree they could and should. Sales Management describes effective, efficient, and

· Discover the best ways to connect with and close your community's future residents.

measurable actions that must take place to achieve optimum sales results. This interactive workshop will

10:00 - 10:50 a.m.

focus on the skills necessary for good sales managers

From Rent Collector to Sales Superstar - The En-

to become great sales leaders.

hanced Role of Community Managers

· E xamine the skills exhibited by all great sales managers – and how to cultivate them. · Learn what to measure and manage, and how to turn data into dollars.

Your property managers wear several different hats. Does the “sales hat” fit them? Selling, that is, filling your empty spaces, requires a different set of skills than managing property – skills that can be learned.

· D iscover the 10 most effective management

Find out what those skills are, how to instill them in

actions and how to turn your sales team into a

all your staff, and how to measure sales effectiveness

sales juggernaut.

in this enlightening presentation. · Why every member of your property staff are also

Manufactured Home Community Seminars Wednesday, March 30, 2022

· The Top 5 Skills required for effective selling.

9:00 - 9:50 a.m.

· H ow to transition from property manager

Connecting with the Next Generation of Communi-

in sales – and how to help them embrace that.

to sales professional.

ty Residents - They’re Not Just for Seniors Anymore The pandemic and ‘work from home’ phenomenon have prompted a mass exodus from the cities, putting

11:00 - 11:30 a.m. Developing With Non-Profit Organizations

the spotlight on MH homes and communities for a

Affordable Housing is a universal issue and a specific

whole new segment of residents. This ‘new generation’

focus of many non-profit organizations. And MH is

has different needs and priorities than their prede-

the solution more and more of these organizations are

cessors. Are you prepared to connect with, attract

turning to. Are you tapping into this huge opportunity

and satisfy them? See the data and see for yourself

to increase your sales?

in this enlightening presentation. · Review new data as to where and how your next residents are shopping for their home. · Learn the top features that new tenants are looking for.

· Why the Non-Profit community is embracing MH. · How a project in Mississippi’s Delta is gaining national attention – and what that means for you. · How to connect with NPs in your area that are eager to work with you. MHINSIDER.COM | 19

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

20 | JANUARY / FEBRUARY 2022 EDITION

Events

Join MHI for Three Days in Orlando

Congress & Expo April 11-13

Expo in 2022 is being held April 11-13 in sunny Orlando

Among the topics being explored for the education sessions are:

at the Rosen Shingle Creek resort. The event is central

Manufactured Housing Appraisal

to the professional education and networking circuit

Business Technology

for manufactured housing professionals, and this

Community Development

year’s attendees will meet in person, see leading

Community Ownership, Marketing & Sales

industry experts live, and can tour a selection of new

Financial Services

homes as well as check out the latest products and

Legal Issues

services in the exposition hall.

Professional and Personal Development

Back after a two-year hiatus, the MHI Congress &

Take time to network with a new contact, reconnect

Research Trends

with a longtime colleague, strike up conversations

Retail Marketing & Sales

with industry professionals, and organize small group

Tax and Finance

meetings to advance your business efforts. The Congress & Expo offers three days of top-quality

Venue Information

education sessions, a bustling expo floor, network-

Rosen Shingle Creek opened Sept. 9, 2006, and

ing receptions, pre-event forums, and exciting

is one of the largest full-service convention hotels

new twists for 2022.

in Central Florida. The 255-acre luxury hotel offers 1,501 guest rooms and suites, and 524,000 square feet of dedicated, flexible meeting/event space that includes one of the nation’s largest column-free ballrooms at 95,000 square feet. Awarded the AAA Four Diamond designation annually since 2007, the hotel offers an array of amenities. Information about registration, sponsorships, and hotel accommodations coming soon! Questions? Reach out to events@mfghome.org. MHV MHINSIDER.COM | 21

Community

VALUE ADDITION:

A 15-YEAR LOOK AT COMMUNITY ECONOMIES by Steven Blank

I’ve seen this industry’s evolution firsthand through

working as a community operator over the past 15 years. As we are amid an economic boom in our industry and everyone’s focus is on value addition, I believe it is important to understand how we got to this point by taking a holistic view of our industry since the 2008 recession. By understanding where we are coming from, we can make the best decisions on how to add value moving forward in this ever-changing environment.

The Old World Flash back to 2006, when you could purchase a community with 90%+ loan to value, there were multiple non-recourse chattel lenders to finance new home sales, and very few operators were renting houses. As such, selling homes could be done at volume (and for a nice profit). Then came the Great Recession, with chattel lenders going out of business overnight, our resident bases losing their jobs, and community financing becoming more difficult to obtain. Communities lost occupancy through resident loan defaults with home inventories purchased, sold, and removed by third party home wholesalers. »

22 | JANUARY / FEBRUARY 2022 EDITION

Community MHINSIDER.COM | 23

Community

The Climb Back

prices, the rental model is in full

continues. Traditional housing

Infilling communities with

effect, the market and supply for

prices across the country have

used homes and homes for

used homes is dwindling and

skyrocketed in the wake of low

rent became popular value-add

new homes are being sold again

inventory levels and worldwide

business models in the years

in markets that have struggled

supply chain issues, which have

following 2008. Communities

since 2008. The segment is con-

increased new home prices and

had large vacancies to fill, but

solidating as tremendous new tax

lead times to new heights. Be-

selling new product was difficult.

benefits spur a flood of investment

cause of these real and enduring

Rental homes allowed community

as the low cost of capital allows

market factors manufactured

owners to fill vacancies in short

institutional investors to take

housing has become an even more

order by offering an alternative

advantage of large community

viable alternative. For an industry

to ownership. Meanwhile, used

purchases that would otherwise

that has battled a negative stig-

homes offered a more affordable

produce low returns.

ma for years, a positive change

solution to home ownership (or rental) and removed the need for chattel financing, which for the most part, required community owner recourse.

is taking place with the future

The Boom Part II (COVID and beyond) Since March of 2020 the industry has continued to see

looking bright.

How to Add Value in Today’s Economy

an increase in demand as rent

Prices of communities and

collections and occupancy re-

homes (new and used) have

Fast forward to 2019: communi-

main high through COVID and

increased dramatically since the

ties are being sold at record high

as the affordable housing crisis

onset of COVID and getting those

The Boom (Pre-COVID)

24 | JANUARY / FEBRUARY 2022 EDITION

rate of homes and the net oper-

forecast new home availability

the biggest obstacles to overcome.

ating income bump. The rental

and related costs and surcharges;

Community owners and opera-

model is especially successful in

model proper scenarios for the

tors are faced with the same key

secondary and tertiary markets

financial needs of a community;

questions as in years past related

(most communities in primary

and gain and maintain occupancy

to one primary factor: How to best

markets have been purchased

to push NOI. These factors, and

add value to our communities?

by institutional operators). Most

others need to be developed prop-

• D o we hold and wait out

community owners we meet now

erly to ensure success today and

the high home prices and

are newer to the industry and have

for those to come. MHV

lead times? Meanwhile, our

paid a premium for their commu-

communities lose the best

nity, even the vacant sites. So, the

opportunity in more than a

pressure to infill homes is at an

decade to fill vacancies with

all time high.

qualified tenants.

Today, as president of Blank

• Do we purchase new homes?

Family Communities, a third-par-

Pay the surcharges and pa-

t y p r o p e r t y m a n a g e m e nt

tiently wait for new homes

company based in Michigan, I see

and hope that the increase in

great opportunity, coupled with

demand covers the increase

even greater risk. Managing our

in price for the homes and

ever-changing environment in MH

construction cost?

is critical. Ownership must pos-

• Do we purchase and rent new

Reach Over 30,000 Manufactured Housing Professionals in Print and Online To Advertise Call:

1-877-406-0232

sess the ability to properly budget;

homes? Use the profit that we receive for home rent to offset the rising costs all around us? • D o we try to source used homes? Pay an increased premium along with a de-

Performance Equity Partners, Inc. “Your Funding Specialist”

creasing ability to find a good quality product?

PROVIDING FINANCIAL AND UNDERWRITING SERVICES TO THE MANUFACTURED HOME INDUSTRY FOR OVER 15 YEARS

The answer to all these questions is: it depends. Owning and operating a manufactured housing community is not a walk in the park. Selling homes as the primary/only business model used to be a no-brainer, but now with community prices being so high, the profit from a home rental program can become necessary for community success. At Blank Family Communities (BFC), we have been a strong proponent of the hybrid home sale and rental home model in the Midwest as it

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still yields the greatest absorption MHINSIDER.COM | 25

Community

homes onsite has become one of

Community

22 DESIGN TRENDS

for 2022

26 | JANUARY / FEBRUARY 2022 EDITION

by Suzanne Felber

Community

The new normal. The last few years have changed

the way we live at lightning speed. Working in an office and fighting traffic has become

an option instead of a requirement to many. As a result, our priorities have shifted like never before.

The biggest luxury that most of us cherish is time. How we live to protect and celebrate this luxury is evident and will be even more so in 2022. We have created a curated collection of the top 22 design trends that we think we will see in 2022.

With rent costs outpacing home prices, more of us

This list is going to be like speed dating — a short

are working from our homes, and a staggering 45 mil-

description of what the trends are, and if you find

lion millennials are ready to become first-time home

some of them interesting, we hope that you will

buyers. So now our industry has record opportunities

let us know, and we’ll be happy to share more

ahead of us to sell more homes than ever.

about them in future editions of MHInsider or online at mhinsider.com. »

Warmer woods and strong angles are part of the mid century styling that is quickly replacing the urban farmhouse look. (Clayton Homes Of Corsicana) All photos courtesy of Lisa Stewart Photography

Community A great hobby room that can be a retreat from the hustle and bustle of the rest of the home. (Louisville 2019)

1. Biophilic Design A big word and trend that may

3. Less Isn’t Always More Now that many of us are

be unfamiliar, but it will become a household

spending more time at home, having suitable

word in 2022. Simply put, biophilic design is

rooms and spaces has become even more crit-

when you connect people with nature in their

ical. Open floorplans look like they are about

homes using natural design elements. Consumers

to become a thing of the past, and consumers

embrace gardening and indoor plants in ways that

are now looking for more defined, intimate

we haven’t seen in decades. Living plants add a

spaces that make it more possible to have to

sense of calm to a space and also help to naturally

leave home less often. Bedrooms are about to

improve air quality — an issue that will contin-

become smaller, so square footage can be used

ue to rise in importance as we move through

for a home office, hobby space, or study hall the

the next few years.

entire family can use.

2. It’s a Lifestyle For most of us, our lifestyles

4. Moveable Walls Urbaneer has teamed up with

have changed drastically in the last few years.

Champion Homes to build compact housing,

With this comes how we live in our homes and

especially in the Midwest region. This compact

our needs. Re-evaluating how consumers will

housing is not only ideal for a second home or

live in our homes is a priority for the new year.

to use as an accessory dwelling unit (ADU), but it also features living space on-demand with

28 | JANUARY / FEBRUARY 2022 EDITION

Community

A barn styled door is a great way to give some privacy to a space that can be a home office, study hall, or zoom room. (Louisville 2019)

Accessory dwelling units and homes with moveable walls will be tending in the near future. (Urbaneer / Champion IBS)

moveable walls. The companies showcased this style of home at the 2020 International Builders Show, and now we are seeing this moveable wall concept in luxury site-built homes.

I think we will be seeing more interest in this type of housing in the future. 7. Rental Home Communities Site builders are investing heavily in a new type of community:

5. I’ll Take Two: Vacation Airbnb Homes Con-

rental communities where single-family homes

sumers are more conscious than ever about the

are only for rent. Many concierge-style services are

cleanliness of public spaces. Many are considering

available. This is an option for people who don’t

purchasing a second home they can enjoy and

want to live in an apartment but can’t afford to

possibly use as an income maker as a vacation

buy their own homes. If this sounds familiar to

rental. This trend will open the doors to an en-

you, it’s because this is what our industry has been

tirely new buyer segment for our industry.

doing for decades in our land-lease communities,

6. Accessory Dwelling Units With the massive

except in many instances, we also allow them to

affordable housing crisis we are now facing, more

own their own homes while keeping their costs

cities are becoming open to letting ADUs into

down by leasing the land to them. We have a

their communities. Factory-built housing is the

perfect opportunity to introduce consumers —

perfect solution for this construction need, and

especially millennials — to our community living while there is so much interest. » MHINSIDER.COM | 29

Community Color is back, and happy colors like greens and blues will be seen in more homes. (Clayton Homes Of Corsicana)

8. Spin The Color Wheel Color is back! Bold blues

of dining out, they are more likely to purchase

and greens will be back in living spaces, and

premium appliances and upgrade their spaces.

simply put, consumers are attracted to colors

Don’t expect them to settle with an oven that

that make them happy. You will be seeing a

doesn’t heat evenly or a refrigerator that doesn’t

lot less grey, colorless interiors and exteriors

control temperature and humidity correctly. If

in the year to come.

you haven’t looked into offering a cook's kitchen

9. Going With The Grain Consumers again appreciate the look of natural woods throughout the

as an upgrade, you may be leaving money on the kitchen table.

home. Naturally, dramatic wood styles are at a

11. Behind Closed Doors Clutter is one of the big-

premium, and customers prefer a natural finish

gest turnoffs to our new buyers, and instead

instead of heavy stains. This is true with flooring,

of cabinets replaced with open shelves, they

and patterns are becoming popular again, with

ask for their cabinets back. Now more than

herringbone being one of the favorites.

ever, people want and use air fryers, sous vide

10. T he New Entertainment Center Cooking at

wands, and toaster ovens, so dedicating a stor-

home is one of the hottest trends that we are see-

age space or appliance garage for these items

ing. People are spending a lot more time in this

to be stored is a must. A nice touch includes

area of their homes, and they have discovered

power in the back of these cabinets, so the

the Joy of Cooking like never before. With the

appliances are ready to use. »

money they are saving eating at home instead 30 | JANUARY / FEBRUARY 2022 EDITION

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MHINSIDER.COM | 31

Community-Owned Home Condition Rating: Excellent Market Value: $67,468

Community-Owned Home Condition Rating: Fair Market Value: $41,259

Community-Owned Home Condition Rating: Good Market Value: $56,835

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800.365.1415 | DatacompUSA.com

Community

12. G et Smart CEDIA, the Custom Electronics Design and Installation Association, is a wealth of information about how intelligent design has evolved and where we go from here. The cost and size of the technology can help us control everything from the lighting and locks in your far-off vacation home to an alarm for the open freezer door in the next room. They predicted that this type of technology would be priced to be available to almost everyone within 10 years. Smart Living Made Simple is what consumers now expect. If it takes someone more than three clicks to get a result, they won’t use it. 13. Power Up As a Texan, I learned firsthand how vital the power grid could be to my lifestyle. With the weather becoming more unpredictable, consumers are more interested in solar and backup energy sources such as generators. Electric cars have become mainstream and more affordable. Charging stations are now being installed at Walmart and your favorite restaurants. Providing options for power sources

Retro collections are trending in spaces like this great zoom room / dj booth that was once a closet. (Kips Bay Dallas 21 Showhome)

like these lets your customer know that you have done the homework and understand that you

attention upwards and call attention to your

are preparing for the future.

higher ceiling heights.

14. Walk-in Pantries Having a pantry or laundry

17. Mid Century Modern Warm woods, restrained

room that is large enough to house those

lines, and warm, saturated colors quickly replace

extra appliances and bulk buys from Costco

the stark white farmhouse look that has been

are becoming a must-have. These need to be

popular for so long. This look started and has

located next to or adjoining the kitchen and

always been popular in the Midwest, but you

should have a deep sink and possibly a dish-

now see it from coast to coast. Greens and blues

washer for cleaning up. Freestanding freezers

are the stars of this look as well, and it feels good

are very much in demand again, and upright

to not only dress up and go out again ourselves

models like the one that Beko offers make it

but also to let our homes become a little more

easy to enjoy produce and housemade sauces

sophisticated as well. We love how this style feels

and meals all year long.

all grown up, just like we do.

15. Zoom Rooms Rooms like the well-designed

18. Thoughtful Design A place for everything and

space at the Kips Bay Dallas showhouse are

everything in its place. The days of clutter and

becoming more popular as we spend hours

having “stuff” for stuff’s sake are over. Home-

on Zoom calls or create our podcasts. Having

owners are now collecting and curating items

the right sound-absorbing materials and

that mean something to them. Their spaces

correct lighting is a must.

mirror their tastes and lifestyles, not what they

16. Looking Up We also saw lots of rooms at the Kips

are shown at a local big box store or website.

Bay showhouse with beautiful ceiling colors and

Mixing grandmothers china with a stunning

details. This can be a great way to bring buyers’

acrylic dining table isn’t only OK, it’s preferred. » MHINSIDER.COM | 33

Community This space off the gardens at the Kips Bay Dallas showhouse is the perfect place to daydream or to read a good book.

And if those items have some character and

possible on a healthy planet and are creating

possibly some whimsy to them, they are

extraordinary new appliances to help us live a

even more in vogue.

healthier lifestyle. Other companies that follow

19. Finishing Touches Metal and wood finishes are

this mindset will be at the forefront soon.

warmer than we have seen in the last few years.

22. True To You: Being Genuine Now more than

Black windows, industrial styling, and shiny

ever, earning a new buyer’s trust should be the

surfaces are replaced by unlacquered brass and

essential part of your company's mission state-

mixed metal finishes. Faucets, hardware, and

ment. With so much social media and untruths

lighting look like they have been around for a

out there, customers need to know whom to

hundred years but have a new, clean, modern

believe and who will help them through the

style.

most significant investment they will probably

20. Seeing The Light LED lighting has not only

ever make. When we design and sell a home,

become more affordable, it now offers so

it is our reputation and the reputation of the

many exciting design solutions it is hard to

entire industry that is at stake. If you are fair

know where to start. Flush ceiling lighting has

to the customer and lead with honesty, you’ll

evolved from extensive, protruding eyeballs to

have a customer for life. MHV

tiny square boxes that you hardly notice but

Lifestylist Suzanne Felber has been

can provide hundreds of lumens each. Single

active in the housing industry for more

pendant lighting has lost its appeal, and we

than 30 years. Felber realized that

are now seeing oversized shades and lights

factory-built housing was the housing of

that are more in scale with our larger open

the future, and has been actively work-

spaces and look more like a work of art than

ing to promote the lifestyle ever since.

just a source of light.

She started American Housing Advocates as a way to

21. The Healthy Home Consumers are more con-

share the great news about manufactured housing. To

cerned than ever about how their home can

learn more about her work, visit www.lifestylist.com

affect their health and wellbeing. Companies

and www.americanhousingadvocates.com, or read her

like Beko, the new to the United States appliance

@lifestylist social media posts.

company, have realized that healthy living is only 34 | JANUARY / FEBRUARY 2022 EDITION

CADE

Community 36 | JANUARY / FEBRUARY 2022 EDITION

Community

Portfolio Owner Builds, Expands Affordable Housing in Washington by Patrick Revere

GSC Investments, a manufactured home community owner/operator based in Washington, has acquired 22 communities in six states since 2016, and now is endeavoring in a new community in its home state. Crystal Mountain is planned as a 129-homesite age-restricted community in Enumclaw, Wash., said GSC Investments Principal Jake Bond. GSC Investments closed on the property in late 2020 and is poised for development. Logging began in August of last year. Half of the 40-acre property will be preserved and remain in its natural state. The pet-friendly community will include walking trails, bocce ball, pickleball, off-street parking, »

MHINSIDER.COM | 37

Community

and RV storage. The property is near Seattle and

who oversees GSC’s home dealer, worked for a nation-

adjacent to the Enumclaw Golf Course.

al builder and provides insight for how homes should

It was originally approved for 134 sites in 2018, and

be purchased and equipped. Beverly and Michael

the plan had a large above-ground water retention

Seivold, who will oversee property operations, were

system when the property was brought to market

in the industry as well, having joined the team

by the seller. Initially all of the lots were designed

when GSC purchased a community in New Mexico.

to be 40 feet wide, an insufficient dimension for

It’s one of the few properties GSC has sold, but the

multi-section homes that include a site-built garage.

management team remained in place.

GSC reconfigured the sites after purchasing the

Bond and his associates — brother Jonathan Bond,

property and submitted a revised site plan with

Paras Shah, and Gabby Bunch — acknowledge that

underground storm water facilities that allowed for

investment in what might be Western Washington’s

lower site density and wider lots that could accom-

first new community in 15 years or more is difficult,

modate the desired homes.

and can seem risky. But the demand for new afford-

“The above ground retention pond was removed

able housing is undeniable.

and all storm drain facilities will be underground,”

“We have to change the perception that people

Bond said. “Most of the lots are now 50 feet wide or

have of the ‘mobile home park’ and show the

more, which allows us to accommodate a multi-sec-

progress we’ve made in design, street appeal

tion home with a single-stall garage on those lots. The

and comfort,” Bunch said.

remaining 40-foot lots will take our more affordable, single-section homes.”

GSC Investments operates about 1,700 homesites in Colorado, Idaho, Oregon, and Washington.

The wider lots, the pit set homes, and the on-

Between Crystal Mountain and Lavender Mead-

site-constructed garages will create what GSC sees

ows, another lease-up project in Sequim, Wash., the

as a more appealing community, one that reflects

group purchased in early 2021, GSC intends to fill

the elements of a traditional neighborhood setting.

350 homesites in the coming year or so. Homes at Crystal Mountain will be ready by late third-quarter,

Affordable Housing Investment The principals for the group came from banking, finance, and wealth management. Michael Montero,

38 | JANUARY / FEBRUARY 2022 EDITION

and into the fourth quarter, Bond said. MHV

49 L

Community

47 46

48 51 50

45 44

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VE. DGE A I R Y IBERT

2047 Roosevelt Avenue East Enumclaw, WA 98022 (253) 312-0813

w w w. c r y s t a l m o u n t a i n m h c . c o m

114 83

52 53

55 56

SINGLE-SECTION HOMES

MULTI-SECTION HOMES

111

112

OFFICE

110

MAILBOX AREA

109

108

104

120

HORSESHOES

103

119

RV & BOAT STORAGE

COMMUNITY GARDEN

34 107 106

122

105

121

BOCCE BALL

DOG PARK

118

102

PICKLEBALL COURT

S T.

TIMBER

G L A C I E R S T.

C RYS TA L M T. D R .

113

PICNIC SHELTER

27 64

101

117

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22 PA R A D I S E AV E .

21 8

PA R L A N E 6

C RYS TA L M T. D R .

PA R L A N E

123

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126

O R A N G E W O O D S T.

16 20

127 18

S R 4 1 0 / R O O S E V E LT A V E N U E

ENTRANCE

MHINSIDER.COM | 39

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Community

Yes Communities Buys Upgraded 55+ Property in Michigan Fairhaven Area Property Has Large Clubhouse, 114 Sites

Admirals Cove was purchased by YES Communities

to engage with one another and continually build

in 2020, the Michigan waterfront property now has

community.” YES Communities Vice President of

a new community clubhouse and has been in high

Marketing & Media Relations Vanessa Jasinski said.

demand with increasing home sales with prices from

The clubhouse includes a great hall for large gath-

$130,000 to $190,000.

erings, a small breakout room with a retractable wall

The 55+ community now has 114 sites. YES finished

that opens to the great room. A game room with a pool

designing the 6,000 square foot clubhouse in 2020

table, ping pong and TVs, as well as a fitness center.

and completed construction of it this past December.

Coming in the spring will be the outdoor amenities

“It’s a beautiful community and we are excited for

with a large back porch added to the clubhouse that

our residents to enjoy a space that was strategically

oversees the creek, a swimming pool, BBQ pavilion,

planned for them. The new space allows for residents

and pickleball courts. »

MHINSIDER.COM | 41

EXPERIENCE THE YALE DIFFERENCE Manufactured Home Community Lender/Broker of the Year

CHAD LEDY Pacific Northwest 651-334-2390 Chad@yaleadvisors.com

Yale Realty National Team

KEN SCHEFLER Upper Midwest 323-393-0116 Ken@yaleadvisors.com BRIAN MCDONALD Rocky Mountains 720-636-6551 Brian@yaleadvisors.com

DAN COOK Pacific Southwest 305-771-3211 Dan@yaleadvisors.com

HARRISON BELL Mid-Atlantic 985-373-3472 Harrison@yaleadvisors.com

JAMES MCCAUGHAN Midwest 305-588-5302 JMcCaughan@yaleadvisors.com

MAX HERNANDEZ Grand Canyon 415-686-8694 Max@yaleadvisors.com

DANA SMITH Southwest 303-323-5649 Dana@yaleadvisors.com

CHARLES CASTELLANO Southeast 305-978-0769 Charles@yaleadvisors.com

JAMES COOK Natl. Director of Brokerage 386-623-4623 James@yaleadvisors.com

Land & Development

Yale Capital

CHRIS SAN JOSE President of Lending 850-443-4580 Chris@yaleadvisors.com

MITCH GONZALEZ Land Sales & Development Director 734-447-6952 MGonzalez@yaleadvisors.com

GREG RAMSEY Vice President of Lending 904-864-3978 Greg@yaleadvisors.com

YA L E A DV I S O R S .C O M

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435+ COMMUNITIES | OVER $4.1B+ IN PRODUCTION | 79,920+ SITES

Community

Mike Askins is the director of acquisitions and development for YES Communities.

community sits across from Lake St. Claire, which is a destination boating and water recreation area. MHV

“Previous owners had done a lot of the infrastructure,” Askins said. “We just kept the ball rolling in developing the sites, building homes with many that

Amenities at Admirals Cove in Fair Haven, Mich.

have garages, large porches and carports and of course

• New clubhouse with pool table, ping pong table

built the clubhouse and amenities. “We are working on the next expansion, adding

and a fitness center • Gated community

120 more sites,” Askins said. “This has been a great

• Pool

acquisition for YES,” he said. “With the help of our

• Hot tub

great teams on the ground we have been able to realize

• Pickleball Court

the beautiful vision we had when we purchased the

• Gazebo with BBQ Grills

community.”

• New street signs

This is one of the nicest communities in Michigan

• New road work

and provides a great option for our 55+ residents to

• New sidewalks

call home.

• New driveways • New sales center

A Waterfront Property in Michigan Admirals Cove sits lakeside near Fair Haven northwest of Detroit. It caters to active lifestyle retirees. The

The new clubhouse at Admirals Cove includes inviting common areas including a gym and spa.

44 | JANUARY / FEBRUARY 2022 EDITION

• RV/Boat storage area

STRENGTH IN NUMBERS

1.5 MILLION

PHONE & TEXT LEADS SENT TO ADVERTISERS

25+ MILLION UNIQUE VISITORS ANNUALLY

$3+ BILLION

TRANSACTION VALUE OF HOMES SOLD OR RENTED

If you’re not on MHVillage, the most active website for manufactured housing, you’re simply missing out!

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

46 | JANUARY / FEBRUARY 2022 EDITION

Community

UMH Grows Through JV, Gains First Florida Community UMH Properties employees oversee the delivery and installation of new homes at Sebring Square, the organization’s first community in Florida. Photo courtesy of UMH Properties.

UMH Properties, in its new joint venture with

Nuveen Real Estate, UMH Properties, in its new joint venture with Nuveen Real Estate, has closed its first acquisition of a newly developed, all-age manufactured home community in Sebring, Fla. The JV paid $22.2 million for the property on approximately 39 acres with 219 developed homesites. “We are happy to announce the acquisition of our first newly developed manufactured housing community through our joint venture with Nuveen Real Estate. This is UMH’s first community in the Florida market,” UMH President and Chief Executive Officer Samuel A. Landy said. “The demographics in Florida are exceptional and we look forward to providing this market with high quality affordable housing. We also have two additional to-be-developed communities in the Florida market under contract and we anticipate further growth of our acquisition pipeline.” » MHINSIDER.COM | 47

Community

The other two communities will

asset management, the New

“We are excited to work with

enter development in early 2022

Jersey-based company said in a

them to continue our mission

with a plan for new homes to be

public release.

of providing the country with

made available in 2023.

“We have long been advocates

a much -ne e d e d s up ply of

“We have three or four deals in

for the development of new com-

affordable housing,” he said.

the pipeline currently, and ide-

munities and are pleased to have

“Our country needs at least 5.5

ally we’d like to keep a constant

found a partner who understands

million new homes to keep pace

pipeline of sites at about that

and shares our vision,” Landy

with demand, with that number

level coming through,” UMH Vice

said. “This joint venture gives us

increasing to 6.8 million when

President and COO Brett Taft said.

the financial capacity to develop

considering obsolescence.

and acquire new manufactured

“Through this joint venture,

housing communities, creating

UMH and Nuveen Real Estate

long-term shareholder value while

intend to make significant invest-

Nuveen, a TIAA company, brings

limiting the short-term impact

ments in developing and acquiring

an initial capital commitment of

on our FFO during construction

new communities to help to ease

up to $170 million for the proj-

and lease-up.”

the affordable housing crisis,”

The New Partner for UMH Properties

ects. UMH will have a 40% stake

Landy said Nuveen has an

in the venture and serve as the

in-depth understanding of the

UMH Properties will have the

managing member and operating

company, the manufactured

right to purchase from the joint

member of the joint venture.

housing industry, and the real

venture the communities they

estate market.

plan and develop after a pre-de-

UMH will earn customary fees associated with property and

Landy said.

termined period of time. The three to-be-built communities UMH has entered into

TODAY. TOMORROW. TOGETHER.

Credit Human offers a unique approach to MH lending.

agreements on in Florida would offer an added 804 homesites a total purchase price of approximately $90 million. UMH Properties was organized in 1968 and is a public equity

We’re committed to: Customer needs

Simplifying the process

Our purpose is to improve the lives of the people we serve.

We make a complex process smooth and simple.

Sensible choices

REIT that owns and operates 127 manufactured home communities with more than 24,000 developed homesites in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina, and now

Crafted consumer lending programs with your needs in mind.

one in Florida with Nuveen. MHV

NMLS# 486243 MHinfo@CreditHuman.com

Federally Insured by NCUA

48 | JANUARY / FEBRUARY 2022 EDITION

Manage Your MHInsider Subscription Online! Go to http://subscriber. mhinsider.com on your computer or mobile device

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Community

NEW MANUFACTURED HOME COMMUNITIES CONTINUE TO RISE By Don Westphal

Due to the number of vacant sites in existing com-

munities, nominal activity has transpired in new community planning over the last few years.

Memphis Blues Manufactured Home Community and Rental Homes Memphis Blues is a unique, all-ages community

However, as existing communities fill up, the de-

where residents rent the home and homesite. Redevel-

mand for new ones is experiencing a renaissance. The

oped in recent years, the community is a fascinating

proposed communities consist of expanding existing

story. Many years ago, a flood destroyed the previous

communities, developing new communities near

mobile home community there. The reconfiguration

older communities, and acquiring site plan approval

process on the current site has been documented in

for greenfield projects.

many articles since. The expansion illustrated below

It's interesting to note that some of the project

is in the approval stages and occupies the area that

locations have not had any new communities

provided the fill needed to raise the existing com-

in decades!

munity above the 100-year flood level. We anticipate

What's more, these new communities all occur in

this approval will be much easier than the previous

areas with a significant lack of attainable housing for

reconfiguration since the owners, UMH Properties,

working families and retiring seniors.

have done a great job in Memphis.

At the Nadi Group, while we have over a dozen projects across the country that illustrate

Growth in Idaho

different ways to respond to new community

The Donnelly Idaho project in planning will be

planning, the three projects highlighted below are

an all-age community with a mixture of single- and

unique in their process:

multi-section homes. The project needs single-section homes capable of having a garage attached to

Michigan Resort Town Property Alta Vista, a 55+ project near Traverse City, Mich., is a new community close to the award-winning

achieve a lower price point and a higher density with thinner lots. It also requires narrower sites to attain a minimum of 200 home sites there.

Wood Creek project featured in a previous edition of

The ability to plow and store snow in the winter

MHInsider. Even though acquiring approval for Wood

months played a significant part in the design of the

Creek was a challenging exercise in zoning and site

community. We used cluster streets meeting National

plan approval for a sophisticated resort area, the local

Prevention Association Code standards instead of the

approval process for Alta Vista was quite a bit easier.

conventional cul-de-sac design. MHV

Homes in Alta Vista will be multi-sectional with

Donald C. Westphal has been honored

attached garages. Unfortunately, wetlands and oth-

with seven MHI Community of the Year

er environmental issues have made acquiring the

Awards, has a 50-year history of planning

construction permit by the State of Michigan more

exceptional manufactured home commu-

difficult. Still, we expect the state to issue one soon.

nities, and still enthusiastically serves the industry through his contributions to MHInsider and his work with The Nadi Group.

50 | JANUARY / FEBRUARY 2022 EDITION

Community MHINSIDER.COM | 51

Community

Land Conservancy Purchases Park on Lake Erie Stakeholders Convene to Decide Future of Property

52 | JANUARY / FEBRUARY 2022 EDITION

Community All photographs courtesy of Western Reserve Land Conservancy

Ohio’s largest land trust, the Western Reserve

Land Conservancy, purchased the 28-acre Euclid Beach Mobile Home Park on the shores of Lake Erie at Cleveland’s east edge. The historic community and the strip of land that surrounds will connect to public lands on each side. Officials at the land conservancy learned the owner, who has owned the property since 1988, might sell and worked with City Councilman Mike Polensek to secure the land from going to private development. How the property will change, including the fate of the Euclid Beach Mobile Home Park, remains to be seen. “For me, this immediately became a rescue mission. There’s no chance the community would have supported high-rise apartments or commercial development, and neither would I,” Polensek said in a statement put out by the trust. » MHINSIDER.COM | 53

Community

“I reached out to the Land Conservancy and other nonprofits because it was critical that the property be in the safe hands of an organization that values the region’s best interests and also respects the current park tenants,” he said. “I am confident that the Land Conservancy will proceed thoughtfully and with a full appreciation for how this historic property best fits into our neighborhood’s future.” “Determining the best path for the future will be a long-term process. If there are any notable changes for the tenants, they won’t happen for at least one year,” Western Reserve Land Conservancy Senior

linwood neighborhood and the Cleveland-Euclid

Vice President Matt Zone said.

border,” Zone said.

Zone said the land conservancy has reached out to

The Euclid Beach Mobile Home Park once had nearly

nearly a dozen public and nonprofit organizations

300 homes and now has about half that. It also needs

to assist in planning and redeveloping the water-

an immediate upgrade to its water utilities.

front. The conservancy also has contracted with

“We intend to make these repairs as quickly

Blank Family Communities as an adviser for the

as possible, improve the quality of life for these

park and its residents.

residents and treat them with compassion and

“This is a once-in-a-generation opportunity

respect,” Zone said.

to intelligently create a long-term strategy that could be transformational for the North Shore Col-

Euclid Beach Mobile Home Park Initially Used for Workforce Housing Euclid Beach Mobile Home Park has a unique

STAINLESS STEEL FASTENERS

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history. The property once housed temporary employees of Euclid Beach Amusement Park, which closed in 1969. In the 1980s it was converted to a year-round community. In a brief history of the park, Collinwood Nottingham Historical Society said that for many just hearing the name Euclid Beach brings back fond memories,

Nappanee, IN 46550

Ph: 574-773-7993 ext. 1 Fax: 574-773-2132

dating back as far as 1895. The amusement park housing was established in the 1930s and by 1948 it was home to 100 families. Renters also used the 160 tent dwellings and some log cabins, as well as the “Tourist Kitchen” building on site. Another popular feature of the community was the

STEPS • DECKS

Auto Train, a “people mover” built by the Fadgl Bus Company in 1916 that operated on concrete paths in the amusement park as well as between the mobile

BUY DIRECT 54 | JANUARY / FEBRUARY 2022 EDITION

home park and beach. It ran for years, and was discontinued when the amusement park closed, now the site of the beachfront Cleveland Metropark. MHV

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Community

RHP Expands Portfolio to North Carolina

Michigan-based RHP Properties, the nation's largest

A top-rated travel destination, Asheville has grown

private owner and operator of manufactured home

from a small town into a flourishing metropolis

communities, has acquired six manufactured home

known for the arts and the great outdoors. The city

communities in North Carolina, its first in the state.

features more than 30 art galleries, a burgeoning

This expands the company's portfolio to 30 states

culinary and music scene, and close proximity to the

and its total of manufactured home communities to 308 nationwide. The announcement was made by Ross Partrich, CEO, RHP Properties.

Appalachian Mountains. “RHP Properties is pleased to announce our first communities in North Carolina, offering affordable

With these purchases, RHP Properties now

housing options to the Asheville area” said Partrich.

owns and operates Homestead in Fletcher, River

“Our manufactured home communities provide

Oak in Mills River, Riverview and Ridgeview in

peace of mind for our residents with amenities such

Asheville, Wellington Estates and Wellington West

as on-site professional staff and clubhouses. We offer

in Arden, North Carolina.

a true community setting including RHP Social, our

The communities are near Asheville, the largest

activities and events that bring residents together

city in western North Carolina, located in the Blue

to socialize through family friendly events such as

Ridge Mountains with convenient access to numerous

holiday parties, barbeques and more.” MHV

freeways and major cities. Major employers in the Asheville area include Eaton Corporation, GE Aviation Asheville, and Sierra Nevada Brewing.

MHINSIDER.COM | 57

Builder / Retailer

Marrying U.S. Housing Starts and Softwood Lumber Prices for Market Insight Lumber Prices Jan 2022 and US Housing Starts Dec 2021. Lumber prices are an excellent forward indicator of construction.

Unusual for the time of year but a surprise to no one,

lumber prices rose further in the second week of January. Ongoing momentum of strong demand from the end of 2021 combined with significant supply constraints, most notably from the northwest and especially in British Columbia, has kept prices high. Transportation issues throughout the supply chain caused a feeling of panic among buyers, as the usual 6-week delivery time turned into two-months or longer. Frustration reigned with customers as the location of wood previously ordered was unknown. At least part of the problem with deliveries was due to a series of very powerful storms and massive flooding through November, which completely destroyed all four highways and both rail lines in southern B.C.

58 | JANUARY / FEBRUARY 2022 EDITION

unusual for the season, kept the pressure on to order dimensional lumber products.

Benchmark Softwood Lumber Prices January 2022 Looking at lumber prices, momentum from strong

New home building in the U.S. in December

demand at the end of 2021 pushed prices higher, so in

exceeded the historical trend with total housing

the week ending Jan. 14, 2022, the price of benchmark

starts increased by +1.4% from November 2021. to

lumber item Western S-P-F 2x4 #2&Btr KD (RL) con-

a seasonally adjusted annual rate of 1.702 million

tinued rising, up by $70 or 6% to $1,170 per thousand

units. This is a +2.5% rise from the same month

board feet, according to forest products industry price

last year. Meanwhile, December permits for future

guide newsletter Madison’s Lumber Reporter. That

home building rose to 1.873 units, a whopping

week’s price is up by $367, or 46%, from the month

+9.1% gain from the previous month. December

prior when it was $803. That week’s price was up by

2021 permits are up +6.7% compared to a year ago,

$226, or 24%, again the month prior when it was $944.

when it was 1.106 million.

A closer look at the housing data shows that the

The backlog of houses authorized for construction

availability of lots is hampering the speed of new

but not yet started shot up +1.1% to a rate of 270,000

construction in the general housing market as well.

units last month, the highest on record.

The number of single-family homes on which builders

Building permits are generally submitted two

started construction in December actually dropped

months before the home building is begun, so it’s

by roughly 2% on a monthly basis. Put another way,

quite unusual for this metric to be rising in December.

the number of housing units that construction

Normally, not many builders want to break ground

companies haven’t started work on despite having

on a new house in February. Last year was different,

the authorization to begin building is up 44% from

of course. December 2021 single-family permits

a year ago and is rising on a monthly basis. For each

grew by +8.5% compared to one year ago, when

single-family unit completed in December there were

it was 1.128 million units.

9.5 single-family units still under construction. This

Insiders k now that constr uction framing

is the highest ratio in the life of the database.

softwood lumber prices are a good leading

As of December, there were 769,000 single-family

indicator for U.S. housing activity, including home

homes under construction, a 26% gain from a year

building and home sales.

ago, and there were 750,000 multifamily units under construction, a 15% increase from December 2020. MHV

MHINSIDER.COM | 59

Builder / Retailer

An upward bump in U.S. housing starts, again

Brokerage

Manufactured Housing: The Key to Solving the Housing Crisis? by James McCaughan

60 | JANUARY / FEBRUARY 2022 EDITION

Brokerage

I had an interesting conversation recently. A

can go about changing perceptions in order to make

professional contact, not involved in or familiar

those solutions a reality for more Americans, partic-

with manufactured housing, asked what made the

ularly younger people. While I address the challenge

industry special. From the tone of the question and

primarily with the millennial generation in mind

the terminology he used— a “T” word that I will not

(simply because they are, or should be, entering the

repeat here — it was clear that he harbored the same

ranks of homeownership at this stage), the issues

prejudices against manufactured housing that I am

apply to anyone interested in purchasing a home.

sure all of us have encountered at one time or another. It shocked me at first, but then I recalled how clueless

The Opportunity of Home Ownership

I was before I began working in this space. Despite

Homeownership has long been subsidized, incen-

the improvement this industry has seen in home

tivized, and supported by a number of government

and community quality, by building better homes

agencies and regulations. Yet, with average home sale

and communities, there is still a lagging perception

prices approaching $500k in 2021, a growing share

among the general public. For that reason, I decided

of millennials do not expect to benefit from that

to provide a brief overview of the challenges facing

dream. One recent survey found that 12.3% of that

renters and first-time homebuyers, how manufactured

cohort never expect to buy their own homes, up from

housing helps solve those challenges, and how we

10.7% the previous year. In more expensive areas »

MHINSIDER.COM | 61

Brokerage

of the country, like California and

housing. Not surprisingly, younger

door in the car. And with remote

New York, that share approaches

generations have begun turning

work becoming more prevalent,

one in every five millennials. This

to those options when it comes

homebuyers are not forced to

sentiment is borne out in reality,

time to settle down. Besides the

choose between living near their

with members of the generation

obvious savings, a number of fac-

office or commuting to the office

owning homes at a much lower

tors have helped push this trend.

in rush hour traffic. Finally, man-

rate than Generation X and Baby

Manufactured housing is more

ufactured homes do, contrary to

Boomers did at the same age.

environmentally friendly than

popular belief, retain their value,

Setting aside some of the more

traditional housing, not only from

even appreciating faster than

contentious debates over who or

its smaller footprint and reduced

traditional single-family homes

what is to blame for that trend,

energy usage, but also thanks to

over the period of 2014 to 2019.

the widely shared objective of

efficiencies in the manufacturing

extending homeownership to a

process. In addition, compared

broad base of Americans seems

to another relatively affordable

I recently met with an Ohio

to be slipping away.

housing option available to

retailer who told me of a young

young people — a condominium

family whose patriarch, a pro-

— manufactured homes offer the

fessor at the local university,

Manufactured and modular

owner more privacy, freedom,

purchased one of their brand-new

homes are, of course, much more

and convenience. The resident

models with cash. They chose this

affordable than traditional “site-

does not share a wall with their

option rather than putting that

built” houses, with HUD homes

neighbors, has some green space,

money toward a down payment

costing less than 50% of site-built

and can pull right up to their front

on a much more expensive site-

Factory Efficiencies

Value What You Buy

built house. While that is just one anecdote, it provides a salient example—manufactured housing truly is a viable option for a 20- or 30-something year-olds looking to purchase their own home. For their part, community developers and operators have stepped up to meet this demand by building the type of neighborhood young families and individuals would be proud to call home. While the first image that may come to mind may be of new developments in destinations like Texas that combine high growth and reasonable regulatory environments, the Midwest also has its share of new, high-end manufactured housing communities. These communities offer amenities that rival or beat the newest high-end multifamily developments, including basket62 | JANUARY / FEBRUARY 2022 EDITION

Brokerage

ball and volleyball courts, arcades,

most consequential of these in-

creasing monthly payments by

resort-style swimming pools,

terventions, the federal programs

almost 30%. That brings us back

splash pads, state-of-the-art gyms,

incentivizing affordable home

to square one, keeping homeown-

conference rooms, million-dollar

mortgages by private lenders, is

ership out of reach for a growing

clubhouses, and even secure,

relatively limited in the context

number of Americans.

gated entryways. Simply put,

of manufactured housing. Fannie

manufactured housing commu-

Mae requires higher down pay-

nities are becoming big draws for

ments for manufactured housing

Beyond the handicap the federal

a diverse group of homebuyers.

loans than what it makes available

government puts on manufac-

to buyers of site-built homes.

tured home purchases through

The Stubborn Housing Crisis So, problem solved, right? Af-

Local Zoning Obstacles

unfavorable lending conditions,

Affordable Financing

local governments create hurdles

fordable single-family housing

Additionally, while the FHA

to this mode of affordable housing

offering freely available luxury

insures loans of up to nearly $1

through restrictive zoning and

amenities; the housing crisis is

million on traditional houses,

unequal treatment, relying on

solved! If only it were that easy.

it will only insure loans up to

outdated, inaccurate beliefs and

The fundamental challenge

about $70,000 on manufactured

unreasonable fears about the

l i m it i ng more w ide s pre ad

homes. That is just 7% of the site-

characteristics of manufactured

homeownership for younger gen-

built loan limit, even when new

homes and their residents. So

erations is, again, the cost. While

double-wides often sell for two

even if the FHA, Fannie, and Fred-

the more reasonable sticker prices

or three times that figure. Con-

die open their eyes to the virtue

of manufactured homes go a long

sidering millennials cite coming

of manufactured housing, it will

way toward making that dream a

up with a down payment as the

not necessarily follow that zoning

reality, certain regulations seem

primary obstacle to homeown-

boards will allow communities

to have pulled the rug out from

ership, the severe limits on loan

to spring up in every metro area.

under us. Government at all levels

size make manufactured housing

in this country has opened the

at least as unaffordable as site-

door to homeownership with a

built homes. Who cares if the

While control of things like

variety of incentives and subsidies,

sticker price on the manufactured

home lending guidelines and

from FHA mortgage insurance to

home you want is half that of a

restrictive zoning is held firmly

the mortgage interest deduction

comparable site-built house if you

in the hands of the FHA, the GSE’s,

to state homestead exemptions

have to come up with double the

and the local zoning boards, the

limiting the effect of local prop-

down payment? The FHA also

industry can work to correct the

er ty ta xes on homeow ners’

limits terms on manufactured

misperceptions and irrational

budgets. However, perhaps the

home loans to just 20 years, in-

prejudices plaguing those »

Each of Us in Advocacy

MHINSIDER.COM | 63

Brokerage

institutions. We have amazing

ownership to groups who would

but also to make the dream of

trade organizations at the na-

otherwise find it no more than a

homeownership a reality for more

tional and state levels that do a

dream. Factory and community

younger Americans. MHV

wonderful job demonstrating

tours and objective, statistical

James McCaughan

the benefits of a robust and em-

explanations can go lightyears

is Yale’s Regional

powered manufactured housing

toward opening politicians’ and

D ire ctor for the

industry. I currently serve on the

administrators’ eyes to the benefit

Midwest, where he

board of the Illinois Manufactured

manufactured housing can offer.

advises owners and

Housing Association because I

Whatever it takes, we as industry

investors of manufactured housing

believe in its mission and am en-

insiders should be doing it.

communities and RV resorts on

couraged by the results IMHA and

Manufactured housing should

new opportunities and challenges,

its advocates in Springfield have

be an obvious solution to the

including the sale and purchase

delivered to the industry in that

housing crisis facing our country

of properties and the financing of

state. Industry participants, both

today, but misperceptions among

existing holdings. His favorite part

on an individual level and through

the general public and policy-

of the job is helping clients track

our trade groups, should make a

makers hinder its availability.

down the hard-to-find buyers for

concerted “proof of concept” effort

Stakeholders in the industry,

niche deals. He received his B.A. in

to reveal to policymakers the

from developers to owners to

Economics and History from the

true nature of the product they

management companies to man-

University of Notre Dame and his

are developing — family-friendly,

ufacturers, should take part in

J.D. from the University of Illinois

affordable, aesthetically pleasing

efforts to reduce that stigma, not

at Urbana-Champaign, where he

communities that offer home-

just to serve our own interests,

graduated with honors.

64 | JANUARY / FEBRUARY 2022 EDITION

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Advocacy

MHI Provides Members With Interactive Map of Zoning Impact on Manufactured Housing

The Manufactured Housing Institute has developed

an interactive map to inform members about the impacts of land use and zoning decisions on manufactured housing at state and local levels. Currently, the map utilizes several principal data sources including:

of the Texas Manufactured Housing Association, and MHI staff. This map will be updated with additional levels of data and information as it becomes available. MHI said it welcomes suggestions for additional data sources that could add to the usefulness of the map. The map

• U . S. Census Bureau demographics, data

is available to members on the MHI website. From the

about manufactured housing, and data on

home page, if signed in as a member, hit the Research

median gross rent.

tab and choose general information, then on the right

• The National Longitudinal Land Use Survey (NLLUS) by the Urban Institute.

look for the box that says “Impact of Zoning by State on Manufactured Housing”.

• Residential Land-Use Regulation Survey from

Members will be able to understand demograph-

the Zell/Lurie Real Estate Center of The Wharton

ics as well as the percentage of manufactured

School, University of Pennsylvania.

homes in a state, or county in many cases, with

• Survey of state manufactured housing laws conducted by DJ Pendleton, executive director

66 | JANUARY / FEBRUARY 2022 EDITION

added information on housing requirements within the jurisdiction. MHV

Advocacy MHINSIDER.COM | 67

Eastern Alabama

Central New York

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U.S. Department of Housing

income sources, and enhanced

• Lender no longer are required

and Urban Development Principal

considerations on student debt

to use a Direct Endorsement

Deputy Assistant Lopa Kolluri,

and medical debt that will bring

certificate for underwriting

in a presentation to manufac-

the program more in line with Ti-

Following the announcement,

tured housing professionals at

tle II lending, the primary vehicle

MHI stated it had been in ne-

M HI’s NCC Fall L eadership

for single-family home loans.

gotiation for several years to

Forum in Chicago, announced substantial changes to the Title I lending program.

change the Title I rules, to make

Highlighted Changes to Title I Loan Program

the smaller home loan rules fall more in line with the larger limit

“Our new and updated Title

• E nhanced value determi-

I policies will not only expand

nations that use a sales

These programs are underuti-

access to credit for borrowers

comparison approach, allow

lized and loan volumes continue

seeking loans for quality and

for qualified FHA Roster Ap-

to shrink because outdated rules

affordable personal property

praisers to perform valuations;

make them impractical financ-

manufactured homes, but will

• E xpanded allowable income

ing options, MHI stated. Further

also make it to easier for lenders to

sources for borrower qualifi-

updates will be required, which

offer financing through the Title

cation that are comparable

Kolluri recognized in her remarks

I program,” Kolluri said.

to FHA’s Title II mortgage

characterizing the recent changes

insurance programs;

as a “foundational milestone”.

T itle I loa n s a re gover n-

Title II lending.

m e nt- b a c ke d a n d i n s u r e d

• A dditional f lexibilities in-

“We have a lot more to do,” Kol-

financing for home improve-

clude calculating student

luri said. “We have additional work

ments, most commonly, and also

lo a n a n d m e d ic a l d e b t

to do to make the Title I Manufac-

for the purchase or improvement

consistent with FHA’s Title II

tured Home Loan Program really

of a manufactured home.

mortgage insurance programs;

work… and build it back to its full

Kolluri shared information on

it also will allow the use of gift

potential for today’s buyers.” MHV

how the Title I program would

funds from eligible sources.

change in regard to valuations, MHINSIDER.COM | 69

Advocacy

HUD Uses National Communities Council Gathering to Announce Revised Title I Lending Rules

Technology

Manufactured Homes with Modern Technology Attract New Residents Kwikbit Models How to Deliver High-Speed Internet by Joe Costello

Brandon Wilkerson of Kwikbit works with Treasure Island resident Moises Sicat on the installation of highspeed internet.

70 | JANUARY / FEBRUARY 2022 EDITION

Technology

If you brought up the concept of a manufactured

particularly important as Americans seek solutions

housing community 10 years ago, eventually someone

for the current housing crisis, not to mention in-

would throw out the term mobile home park or maybe

creased natural disasters, and economic turmoil. As

even trailer park, conjuring images of low-income or

community residents diversify and grow, internet

transient communities.

access isn’t any longer an amenity, it is a required

Those days are gone. Manufactured homes are

service for this new demographic.

the new residence of the middle class, particularly

Unfortunately, manufactured housing communities

in fast-growing and overheated housing markets

are more often than not on the wrong side of the

throughout the U.S. They now are talked about as the

digital divide. This is through no fault of their own,

new entry-level housing option for first-time home-

but rather decades of inattention to upgrades from

owners, millennials, and an emerging generation

internet service providers who see these parks as

of people in America who are upwardly mobile and

too small or too isolated a market to bother properly

focused on having all the amenities of a home, but

investing in them. These providers are sometimes

in a close, safe, community.

willing to offer high-cost service, but with long-term

A f u n d a m e nt a l a m e n i t y fo r t h i s n e w changing demographic is fast, affordable, and accessible internet. Kwikbit’s Lawrence Alioto captures the challenge simply. “Modern manufactured housing isn’t complete without affordable broadband,” the head of strategy said.

contracts, and speeds that are more reflective of the early 2000s than what is needed in 2022. Look no further than the antiquated cable (or worse, DSL) systems in place in a majority of communities around the nation. M a nu fac t u re d home c om mu n it ie s h ave been left behind.

As manufactured housing communities aim

Cable systems were designed for television and best

to elevate their status among consumers, inter-

suited for “downstream” traffic such as downloading

net access is set to play a key role in attracting

files or streaming. Conversely, “upstream” refers to

and keeping residents.

activity from the user to the provider, such as sending an email, doing a Zoom meeting or having a Facetime

Manufactured Housing in the Spotlight - Antiquated Technology drives ‘Digital Divide’

session. Typical cable service plans deliver only 5-10

Manufactured housing — currently the largest

Cable and DSL networks are reaching the end of

source of unsubsidized affordable housing in the

their useful life in an era of remote work and online

country — is growing at a staggering rate. This is

schooling. The promised solution is fiber, but the »

megabits per second upstream.

MHINSIDER.COM | 71

Technology

big problem with fiber is that it requires installing

vy and are especially reliant on web connectivity to

an entirely new set of cables either via utility poles

combat isolation and to access social services. The

or underground cables. These processes are lengthy,

internet is not just a known quantity, it’s an essen-

expensive, and even a risk in disaster-prone areas. A

tial tool in daily life, and an inevitable part of their

major metropolis might have the funds to sink into

considerations when evaluating housing options.

such a project and fiber providers might invest to

But even as manufactured housing communi-

install fiber in a large, affluent community. That rarely

ties grasp just how essential high-speed internet

has been the case for smaller, or aging manufacture

is for their residents, internet service providers

housing communities that are rarely upgraded.

concerned with their bottom line feel no similar sense of urgency. To them, there is not enough prof-

The Internet as a Utility Simply put, manufactured housing communities should not have to settle for aging internet infrastructure. Residents increasingly see this utility

it to warrant the amount of work required to provide fiber-optic connection. Kwikbit can and will provide fiber optic speeds without the infrastructural hurdles.

as a deal-breaker. From white-collar professionals on a remote or hybrid work schedule, to students

The Kwikbit Model Answers the Call

completing assignments online, to patients taking

Kwikbit is a U.S.-based internet provider dedicated

virtual appointments, the internet is a requirement

to making fiber-like speeds not only affordable but im-

for full participation in modern society.

mediate. Sixty GHz millimeter wave radios enable the

This remains true in communities catering to an

rapid deployment of multi-gigabit wireless networks,

older demographic. Seniors are increasingly web-sav-

no matter the target size or location. The average

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72 | JANUARY / FEBRUARY 2022 EDITION

communicate. It is a conduit for the economy, public

broadband — a better price and better connectivity

health, and public safety. Manufactured homes are

than most U.S. residents receive.

no exception, but as long as large providers prioritize

The company has consistently delivered affordable gigabit internet to manufactured housing commu-

larger and more affluent areas, high-speed internet will remain out of reach.

nities nationwide with an aggressive 2022 expansion

“Our world is always innovating. You either mod-

and deployments set for more than a thousand instal-

ernize or you get left behind. And if you want to

lations in Texas, Louisiana, Michigan, and California

modernize, this is the way,” Costello said. “Kwikbit

in the first quarter alone.

gives you fiber-like performance at a fraction of the

Simply look at Treasure Island Mobile Home and

time and cost. No wires, and best of all, no contracts.”

RV Park in the heart of Silicon Valley, one of the few

As manufactured housing communities rebrand

bastions of affordable housing in San Francisco.

and expand, high-speed connectivity offers a

For years, residents put up with sluggish internet

surefire approach to sell homes, drive occupancy,

speeds even though a fiber optic cable had been

and boost the quality of life for manufactured

installed in the center of the mobile home park for

home community residents. MHV

years. The cost to connect every single household

Joe Costello is CEO of Kwikbit and

was unfortunately far too high. In 2020, with the

executive chairman of Metrics Design

community pushed to its limit, students fell behind

Automation, Arrikto, Acromove, and

in class and adults struggled to work remotely. Resi-

ELPHiC. Previously, Costello led Cadence

dents would even drive out to a restaurant or library

Design Systems to be the number one

parking lot just for wi-fi.

company software for designing chips, taking the com-

“Before Kwikbit, the biggest challenge was find-

pany from $10 million in revenue to nearly $1 billion

ing someone to be able to provide internet for this

and making it one of the 10 largest software companies

type of atmosphere,'' said Treasure Island General

in the world.

Manager Gianna Arellano. “There just weren't a lot of vendors that specialized in bringing high-speed broadband to RV parks.” With the Kwikbit team on site, the first Treasure Island household was online within half an hour, and the community was enjoying state-of-the-art speeds later that same day. Alimur Mobile Home Park in Santa Cruz has a similar story. Left on the wrong side of the digital divide with their internet providers, they even got a government grant of $2.5 million to install fiber - and still not one resident was connected. Kwikbit’s 60 GHz wireless solution spoke louder than words to the Alimur community, according to resident and HOA board member Timothy Norton. “Kwikbit delivered everything as promised and

KWIKBIT FACTS: • Users enjoy 60GHz, meaning better performance and better speed. • Installation is quick and easy—no digging, no wires, and up and running in as little as 30 minutes. • Provides residential and community common area coverage • Drives business growth • No contracts, and prices starting at just $50 per month

on time,” Norton said. “We were up and running in one hour and couldn't be happier with the service.”

The Bottom Line The internet is a basic utility that residents desire and demand. It is where we work, play, learn, and

FOR MORE INDUSTRY NEWS, VISIT OUR BLOG AT

MHINSIDER.COM MHINSIDER.COM | 73

Technology

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THE EVOLUTION OF COMMUNITY APPRAISAL PART I

Veteran manufactured housing professional George Allen

in a two-part series exclusive to the MHInsider provides a

by George Allen, CPM Emeritus, MHM-Master

review of manufactured housing community and land-lease property valuation approaches. This is the first in the series. The valuation of land-lease communities has long been a niche specialty among investment real estate appraisers. Frankly, few professional real estate appraisers have ever really identified and comprehended the characteristics and peculiarities of this unique real estate asset class! Here are a few examples… The possibilities of one, even two streams of rental income — one from leased land, the other from homes, and

76 | JANUARY / FEBRUARY 2022 EDITION

Allen Legacy

the reality of it being significantly less expensive to

It was the anticipated debut of real estate in-

operate a community fully populated by homeowners/

vestment trusts (REITs) during the mid-1990s that

site lessees, than a like-sized conventional apartment

forever changed the nature of community valuation.

community, for instance – given the latter’s much

In large part, because several property portfolio firms

higher annual turnover of tenants results in increased

(ELS; Sun Communities; UMH Properties; Chateau

marketing and maintenance expenses, which is an

Communities, to name a few) planned to go public and

increased workload on staff.

needed enthusiastic support of Wall Street analysts

It wasn’t until the early 1990s, when the text “De-

to do so. That came about, given new performance

velopment, Marketing & Operation of Manufactured

measuring statistical tools like the annual ALLEN

Home Communities” introduced the asset class’ first

REPORT, aforementioned Chart of Accounts & OERs,

industry-standard chart of operating accounts and

and the valuation of these unique income-producing

related operating expense ratios. Appraisers finally

properties using all three traditional approaches to

realized the Institute of Real Estate Management

investment real estate appraisal: replacement value,

“experience exchange” figures they were using, for

market value, and income capitalization valuation.

conventional apartments, always overstated by 10%,

It’s outside the scope of this column to describe

estimated operating expenses in manufactured home

the basic methodologies of these three doctrines.

communities. That was a game-changer!

But know that prior to the introduction of the

But I’m getting ahead of myself.

industry-standard chart of accounts and its OERs,

There once was a time, back in the 1970s and early

when licensed appraisers valued manufactured home

’80s when community value was expressed widely,

communities, using conventional apartment OERs

almost solely as “dollars per rental homesite”. Spe-

as a guide, their formal reports were almost always

cifically, “value per rental homesite”. For example,

in error! Anecdotally, I made a comfortable living,

the property sale price of $2.88 million divided by

prior to 1994, as a review appraiser, often testifying in

200 occupied rental homesites equals $14,400 per

court, as to how subject appraisal reports consistently

rental homesite. While that expression certainly gives

undervalued this unique property type.

one a “feel” for value in the local housing market, it

Of course, with the correcting and refining of

glosses over other pertinent value factors such as

appraisal methodology, it became commonplace

degree of functional obsolescence (i.e. older rental

for manufactured home community owners and

homesites too small to site contemporary 16X80

operators to better learn, and become proficient

single-section homes), property location and street

with the use of income capitalization rates, or cap

layout, number of rental homesites, and more.

rates, when estimating the value of their holdings and anticipated acquisitions. » MHINSIDER.COM | 77

Allen Legacy

How Do Cap Rates Work?

at an estimated value of $2.88 million. Now, there

Cap rates, of course, are ascertained by dividing

is a shortcut to this methodology, and I’ll share it in

the annual Net Operating Income of a property

part II. In the meantime, estimate the value of vacant

recently sold, by the actual sale price of the prop-

rental homesites (via replacement methodology?),

erty. Again anecdotally, I knew one veteran fee

and value of park-owned homes by book value or

manager of manufactured housing community port-

income capitalization, adding both values onto the

folios who never could get the hang of how ‘cap rates’

estimated land lease value.

worked to measure value.

Another emerging and now essential tool of the time

So, just how does the income capitalization calcula-

was the development of due diligence in community

tion of land lease realty pencil out? Simply put, it’s the

transactions, a topic we will take on in part II of this

number of occupied and paid rental homesites times

short series on land-lease community valuation. MHV

the per site rental rate. Then multiply this subtotal by

George Allen has owned and fee-managed land-lease

12 months to annualize the income. Now multiply by .6

communities since 1978. He’s a former MHI Industry

(this 60% is the mathematical reciprocal of 40% OER,

Person of the Year and a member of the RV/MH Hall

the national average OER for land-lease communities.

of Fame. He has been designated a Certified Property

and finally divide by .10 (The rule of thumb average

Manager-Emeritus and a Manufactured Housing Manag-

cap rate for an average community) to estimate the

er-Master. He’s also a senior consultant and staff writer

value for an average community (whatever that is).

with EducateMHC. Allen can be reached at (317) 346-7156 and gfa7156@aol.com.

Example of How Cap Rates are Figured Take 200 sites x $200 x 12 = $480,000. Multiply this subtotal by .6 and then divide by .10, and arrive

NOW YOU CAN MANAGE YOUR SUBSCRIPTION ONLINE Want MHInsider news in print and online, or just digital? Need to add or remove a colleague? Place a hold? Change an address? Go to http://subscriber.mhinsider.com on your computer, tablet or phone. When you subscribe, or link to your current subscription, you will be provided an individualized reader identification code to help facilitate any changes.

THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS

In Print and Online, the Premier News Source in the Manufactured Housing Industry

78 | JANUARY / FEBRUARY 2022 EDITION

Thank you for reading!

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January - February 2022

Articles inside

MHI Provides Members Interactive Map of Zoning Impact on Manufactured Housing

The Evolution of Community Appraisal PART 1

Manufactured Housing: The Key to Solving the Housing Crisis?

A 15 Year Look at Community Economies

New Manufactured Home Communities Continue to Rise

Industry Happenings

Economic Review and Outlook in Q&A with First Trust Advisors

Biloxi Manufactured Housing Expo

RHP Expands Portfolio to North Carolina

UMH Grows through JV, Gains First Florida Community

2022 RV/MH Hall of Fame Inductees