Jan/Feb 2023 MHInsider

2022 has been the year of inflation and interest rates. It seems that almost every conversation in the industry has come back to one of those two topics with more questions than answers…

The Estates, located in Princeton, Texas, has added 162 new sites with the most recent expansion and has new homes being scheduled for delivery now. In addition to the expansion, a new amenity center has been constructed that includes a beautiful walk-in pool, picnic pavilion, walking trails, and a pond with a pier.

HAPPENINGS 6 Industry Happenings

Events & Tradeshows 12 A Much-Anticipated Return to The Louisville Manufactured Housing Show 16 Panelists and Presenters: The Louisville Show INDUSTRY NEWS 23 It’s All Part of A Cycle COMMUNITY 26 Business Booms Out West: Sun Communities Finds Opportunity, Takes Time to Build New 30 Flagship Communities Executive Takes to the Road, Eyes Future Growth: Nathan Smith Checks in From the ‘Year in Review Tour’ 37 Positive Reinforcement: A Vital Tool in Maintaining Community Living Standards 40 What Happens When ‘The Water Stops Flowing’?

46 Use Your Smart Meter to Prevent Water Damage and Reduce Insurance Rates

MARKETING 49 Back to Basics: How to Refresh Your Marketing for a Changing Environment

BUILDER

/ RETAILER

55 Developer and Builder Collaborate on a New Kind of Neighborhood 56 Industry Retailers Can Benefit from Propane-Powered Homes: Propane Council Introduces Incentive Program

LENDING 58 FHFA Approves New Credit Scoring Models for Fannie, Freddie

ADVOCACY 64 What Does Board Service Mean To You? 68 KMHI Meets Goals By Sticking To Plan, Creating Successful Partnerships

ALLEN

LEGACY

74 The 30-Year Journey To Community Unity, Advanced Advocacy

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 ©2023 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: 2600 Five Mile Road NE Grand Rapids, MI 49525 (800) 397-2158 www.MHVillage.com

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.

from the PUBLISHER

Welcome to the New Year, to Louisville, and to Setting ‘One Defined Goal’

Welcome to 2023, another year in the books, and a bright beginning with the prospect of the first Louisville Manufactured Housing Show since prior to the pandemic.

It certainly is nice to again be Louisville bound.

The manufactured housing industry does a lot of good things, providing much needed, high quality housing nationwide. One of the engines of that kind of continued success is the series of very important trade shows and conferences industry leaders collaborate on each year.

The Louisville Show is one with a rich history. It has among the highest attendance of any of our trade gatherings, brings more homes than any show in recent years, offering the most robust collection of service and supply professionals exhibiting their wares, and has an impressive slate of education and networking opportunities.

This show, and others that occur throughout the year, are evidence of the dedication and hard work manufactured housing professionals put into what they do.

For most of the organizers — like the Midwest Manufactured Housing Federation, which hosts the event at KEC — creating a large industry gathering is a matter of putting in extra time, volunteering, and providing energy where there once wasn’t enough to carry the kind of load required for a special project.

Now, I’ve never been one for making resolutions. But this New Year I dare to levy something similar. A challenge.

I challenge you, reader, to set for 2023 one defined professional goal, small or large, that you can commit to completing before we meet again in January 2024. I am talking about single-minded determination toward one end.

Perhaps if each of us takes time and provides the energy for just one more objective tackled, the cumulative effort and shared knowledge will propel the industry forward again to the next level of growth we’d all like to attain.

Give it some thought. I will too. Share your efforts with me, and I bet we can find a way to get them published as an homage to our industry growth.

industry HAPPENINGS

Transactions

California Group Purchases Florida Park

A West Palm Beach, Calif., manufactured home community was purchased for nearly $40 million in a joint venture between BoaVida and Nella, both based in California. The community, Holiday Ranch, is in West Palm Beach and has 274 homesites.

RHP Properties Buys Three Wisconsin Communities

Michigan-based RHP Properties has purchased three manufactured home communities in Fond du Lac, Wisc., with a total of 455 homesites. The communities are Gaslight Terrace, Green Meadows, and Lakeshore Terrace. The properties have a variety of amenities including playgrounds, picnic areas, ponds and fishing docks, off-street parking, and RV storage.

“Our recent acquisitions in Fond du Lac add to our portfolio of affordable home communities in sought-after locations poised for job growth,” company CEO Ross Partrich said. “We pride ourselves on creating well-maintained communities that fit the lifestyle and budget of residents and look forward to bringing our expertise here.”

Northern California Community Sells for $40 Million

A San Jose community with 315 homesites was purchased in late 2022 for about $40 million. Rancho Santa Teresa Mobile Home Estates was purchased by a family trust administered by John Worthing and Margaret Worthing. The community sits on 34 acres and has a clubhouse, swimming pool, walking paths, and a barbecue pit.

Residents Raise Money to Buy Steamboat Springs Community

The Yampa Valley Housing Authority paid more than $3 million to buy Whitehaven, a manufactured home community in Steamboat Springs, Colo. Residents raised money to support the purchase, matching an offer from an outside buyer. “I’m just so thankful for this community and those donors that gave so much money,” resident Jake Dombrowski said. “It really enabled us to do this with the housing authority.”

N.J. REIT Expands Credit Facility

UMH Properties has created two new tranches within its Fannie Mae credit facility through Wells Fargo

Bank for approximately $34 million. The “community tranche” has four properties and the “home tranche” consists of about 250 community-owned homes from the four communities. Each has a loan term of 10 years with the community side amortizing over 30 years and the home tranche amortizing over 17 years. The interest is fixed at 5.24 percent. Proceeds will be used to invest in additional acquisitions, expansions, rental homes, and other general corporate purposes.

Clayton Celebrates 10 Years of Selling TRU

Clayton Home Building Group® is celebrating the 10-year anniversary of TRU Homes, an effort to transform the housing industry in 2012 by creating a new segment of more affordable homes. In that time, the company has built and sold nearly 100,000 TRU homes in 36 states.

Oregon County Lowers Tax Burden on Manufactured Home Owners

Commissioners in Multnomah County, Ore., voted unanimously to lower taxes for manufactured homeowners in an attempt to protect affordable housing in the area. Commission Chair Person Deborah Kafoury said the change addresses a disproportionate and inequitable financial burden on those homeowners, and will “help people be more stable and secure in their housing”. Previously, taxes were levied on manufactured homes valued at more than $38,000, and the new measure makes the first $50,000 in value on manufactured homes tax-free.

Commercial Real Estate Broker

Into Manufactured Housing

Expands

SkyView Advisors, a leading commercial real estate brokerage firm, has expanded into the manufactured housing industry. The company is fully-digital

and operates nationwide with a significant market share in the self-storage industry. Founders Jay Crotty and Ryan Clark developed a proprietary, 252-point transaction process that guides a business model for a seller. “The need for affordable housing options in several major markets will continue to drive overall demand for the asset class. We will continue to utilize our proprietary system to exceed expectations and deliver extraordinary value in a constantly evolving marketplace,” Crotty said. For more information, visit skyviewadvisors.com.

Personnel

Fannie Mae Appoints Executive

Fannie Mae has appointed Cissy Yang as senior vice president and chief audit executive to lead the company’s audit strategy, including internal controls, operational processes, and key risks assessments. Yang has 25 years of experience spanning both internal and external audits across the financial services sector, leading multi-disciplinary teams in development of effective internal control and audit frameworks across large financial institutions. She replaces J. Douglas Watt, who retired from the position in November.

Champion, Star Fleet Trucking

Featured on Lifetime Show

“Military Makeover: Operation Career”, a television show on Lifetime hosted by Montel Williams, in November featured Champion Homes and Star Fleet Trucking. The show highlights how military veterans continue to make a difference in civilian life, in this case through the production and delivery of new homes in the United States. Armed services veterans and Champion/Star Fleet colleagues Trish Nowak, Scott Kennemuth, and Ron Baer, Jr. are featured in the show. Each share their personal journey, including »

how joining the Champion Homes and Star Fleet Trucking teams have made a meaningful impact on their lives, and their co-workers' lives. The episode includes behind-the-scenes looks at how Champion homes are built, sold, and serviced. “We welcome and are honored to have veterans on the Champion Homes and Star Fleet Trucking teams,” said Mark Yost, president and CEO of Skyline Champion. “As a company building quality homes for hard-working Americans, employing veterans is integral to our mission.”

Michigan Appoints Manufactured Housing Commissioners

Gov. Gretchen Whitmer appointed six new commissioners to the state’s Manufactured Housing Commission. The new commissioners are Martin Boisture, of Spartan Properties, Domonique D. Clemons, of Flint, a Genesee County Commissioner, Veronica D’Hondt, vice president of operations for YES Communities, Dan Grant, the vice president of sales and business development for Skyline

Champion Corporation, Jennifer M. Letourneau, a customer service manager for Michaels,and Kimberly A. Scott, senior vice president of acquisitions and transition for Cambio Communities. The commission is responsible for establishing uniform policy relating to all phases of manufactured housing, business, manufactured housing parks, and seasonal manufactured housing parks.

Industry Giving

YES Team Members Volunteer at Community Team members from YES Communities spent time in Oak Hill Estates, in Holly, Mich., to improve a resident’s home, a volunteer effort that included a new coat of paint, a new access ramp, and a new furnace and central air conditioning unit. Hug-A-Home is a program developed to assist residents through funding and allocating volunteer time to offer help to deserving residents. Employees donate hundreds of hours of time to serve their own communities and help those who need it most. MHV

Events

& Tradeshows

Louisville Manufactured Housing Show

Wednesday, January 18 — Friday, January 20, 2023

Louisville, Ky. | Kentucky Exposition Center

The Louisville Manufactured Housing Show is the nation’s largest indoor show for manufactured home professionals. The annual gathering is organized by the Midwest Manufactured Housing Federation, supported by the state associations of Illinois, Ohio, Michigan, Indiana, and Kentucky. The show brings out an array of new manufactured home designs, the latest in technology, the best in supplier offerings, and a look at all the newest amenities and offsite-built options.

International Builders Show

Tuesday, Jan. 31 — Thursday, Feb. 2

Las Vegas, Nev. | Las Vegas Convention Center

The NAHB International Builders’ Show® (IBS) is the premier global annual event to connect, educate, and improve the residential construction industry. It is a hub for new product launches, construction demonstrations, industry thought-leader sessions, home tours, workshops, and panel discussions. Manufactured home and modular home professionals will showcase their products and services in the convention center and in the outdoor village.

2023

MHI Winter Meeting

Monday, Feb. 6 — Wednesday, Feb. 8

Houston, Texas | The Westin Oaks Houston Hosted each February, the MHI Winter Leadership Roundtable is the first MHI members-only event of the year. This program brings together MHI members to hear from industry experts on topics relevant to a broad group of manufactured housing professionals. Event sessions are followed by an open forum where attendees can share strategies on these issues affecting the industry.

TexCo 2023 — ‘Parkflation’ Thursday, Feb. 23 Woodlands, Texas | The Woodlands Marriott Waterway

TexCo is a single-day event with succinct presentations on manufactured housing industry operations. Texas is one of the industry’s most active states for community expansion and development, as well as a destination for residents of other states where they’ve been priced out of the market. Learn about demographic and market shifts that affect all states, and network with seasoned professionals from all corners of the business. For those arriving early, TexCo will hold a Welcome Reception on Wednesday, Feb. 22.

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-housing-industry-trade-shows/

A Much-Anticipated Return to The Louisville Manufactured Housing Show

Manufactured housing professionals from across the country this January will return to what for more than 60 years has been the annual launch to the new year in home sales — The Louisville Manufactured Housing Show.

The show is held at the Kentucky Exposition Center in Louisville — this year Jan. 18-20 — and is hosted by the Midwest Manufactured Housing Federation, representing the industry in the states of Kentucky, Ohio, Illinois, Indiana, and Michigan.

The Louisville Show in 2023 provides a wide array of homes to tour and 100 manufactured housing industry service and supply exhibitors. It is an industry- only trade show; no general public attendance will be allowed. In recent years the show had drawn 3,000 to 4,000 manufactured

housing professionals, and organizers believe the 2023 show will set a new standard for the event.

“This is the event that everybody attends in January because it starts off our year. It will draw the crowd because everyone’s looking for what to do now,” MMHF Chairman Eric Oaks said. “Home sales are up, with rates rising our chattel programs are much more competitive, and we have a great product to offer.

“I think the attendance at The Louisville Show this year will be spectacular, and there’s going to be a lot of energy,” he said.

In addition to showing homes, and presenting the latest technologies and services in the industry, The Louisville Show provides ample time and space for mixers and meetings, including organized networking events each day. MHV

EXHIBITORS

MANUFACTURERS

Adventure Homes

Cavco (North Carolina)

Champion Homes (Benton)

Champion Homes (Dresden)

Champion Homes (Sugar Creek)

Champion Homes (Topeka)

Clayton Homes Commodore Homes Fairmont Homes Fleetwood Homes Ritz-Craft Skyline Homes

SERVICE AND SUPPLY

*1st Signature Lending 2-10 Home Buyers Warranty 21st Mortgage Corporation

ABT Water Management

*AccessParks Broadband

*Advance Pro Tech AmRent Resident Screening

*American Financial Resources American Insurance Alliance Alliance Credit, LLC Avid Xchange

BACH Land Development

*BDX

Bennett Truck and Transport Blevins, Inc.

*Calorique, LLC

*Capital Home Mortgage Capstone Manufactured Housing

Cascade Financial Services

CIS Home Loans Cordell Doors

Credit Human Federal Credit Union

Cutting Systems, Inc.

DEHCO

Dynamic Home Repair

*Edge Utilities

Electric Eel Manufacturing ESCO

First Bank Gama Sonic Solar Lighting Genesis Products

GreenState Credit Union Heritage Distributing, LLC HomeCarePlus

*Housing Supply Solutions

Illinois Manufactured Housing Association Indiana Manufactured Housing Association

*Indiana Housing and Community Development Authority

Jamie’s Interior Kentucky Code Officials Kentucky Manufactured Housing Institute

LearnMH

*Leon Global Group *ZeroRez Manage America Manufacturedhomes.com Manufactured Housing Institute Metron Sustainable Services MHCRM

*MH Marketing

*MH Specialty Services MHVillage/Datacomp MHWC Michigan Manufactured Housing Association Minute Man Anchors Modularhomes.com Mudmaster N. Tech Industries Nadi Group National Latham Group *National Utility Newport Pacific Nortek Global HVAC Northpoint Commercial Finance Novik

*New for 2023 continued on page 15

Ohio Manufactured Homes Association

Oliver Technologies

*Orbis Funding

Ox Engineered Products

Park Lane Finance

Perfect-A-Line Performance Equity Partners, Inc.

PFS Corporation dba PFS Teco

*Powell’s Tire and Axle

*Propane Education Rent Manager

ROC USA

Rustique Enterprises, Inc.

RV/MH Hall of Fame Shaw Floor

Stockton Mortgage Style Crest, Inc.

Sunlight Creations Superior Axle

*T G Stewards Painted Porches

Tammac Holdings Corporation

Tie Down Engineering Tink / Remote Trax

*Transport, Inc./GoliathTech

Triad Financial Services

Unique Fabrications/ Weber Products

*Universal Forest Products and Estate Products, Inc. Universal Utilities

*Universal Windows Direct

Vanderbilt Mortgage Waldan Paper Services

*WaterSignal

Whitley Mobile Homes

Wisely Commercial Realty

Wisconsin Housing Alliance

Yale Realty & Capital Advisors

*Yardi Breeze

Zego

*Zippy

*New

PANELISTS AND PRESENTERS

The Louisville Show

One of the most valuable aspects of attending a well-run manufactured housing industry trade show is the lineup of expert presenters who will take the stage during the event. Skyline Champion Corporation President Mark Yost will provide the event’s keynote address on Thursday, Jan. 19 at 11 a.m.

The Louisville Show in 2023 provides more than a dozen experienced manufactured housing professionals from all areas of the business — from manufacturing to sales and marketing to community

operations and retail. The thousands of attendees who sit in on a panel or presentation will go away with a much greater understanding of what it takes to run a successful enterprise in the manufactured housing industry.

“Our return to Louisville features leaders from the across manufactured housing industry,” Oaks said. “Attendees will get to hear the latest announcements, trends, and industry updates directly from the experts.”

LINEUP OF SPEAKERS INCLUDES:

LOGAN HANES

Kentucky Manufactured Housing Association

LANCE HULL | 21st Mortgage DARREN KROLEWSKI | MHVillage/Datacomp

JOHN

UMH PROPERTIES, INC.

A PIONEER IN MANUFACTURED HOUSING

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

• $1.8 billion in total enterprise value

• 133 communities, 25,300 homesites, 1 joint venture community containing 200 homesites, 11 states

• Housing approximately 21,000 families

• 7,500 total acres, 3,800 acres in Marcellus and Utica Shale regions

ir@umh.com

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

The Opportunity in Uncertainty: A 2023 Industry Preview

by Kevan Enger

2022 was the year of inflation and interest rates. It seems that almost every conversation in the industry has come back to one of those two topics with more questions than answers…

“Will inflation finally stall?”

“Will the Fed raise rates again?”

“Will the interest rate hikes cause a recession?”

“Will the next interest rate increase be at a higher or lower pace?”

“When will the debt markets start to loosen up again?”

All of those questions have created a great deal of uncertainty in the marketplace. By nature, investors need to know the numbers, have a general idea of where things are going, and have an understanding of what is taking shape; and right now, everything seems unpredictable.

Although the pandemic appears to be in the rearview, it was the catalyst for the change and unpredictability we are experiencing. From a market crash that never came, to a recession that never fully materialized, we’ve had an economy that did the unexpected…it boomed. Prosperity came despite the pandemic, closures, and supply chain shortages all thanks to a rapidly adapting consumer and new demand as the population moved, people began working from home, and a new era emerged.

This new era is unchartered territory. Couple that with inflation, rapidly rising interest rates, a war, and fear of a recession, and you have the perfect recipe for a great deal of uncertainty. »

So how is this continued uncertainty impacting the market for communities? In this article, we will look at where the market is today and what to expect in the coming year.

The Debt Market

Interest rate hikes have put the debt market at ground zero. After seven interest rate hikes this year and another half point likely early this year, it’s no wonder that

Rental rates across the MHP space continue to rise. Most MHPs remain at below-market rents, providing a great deal of room for potential upside in rents.

have seen an opening and they’re cautiously stepping through it as supply has started to loosen in step with the tightening debt market. More supply means more opportunities for better deals as cash buyers brandish their advantage and liquidity.

However, everyone is keeping their eye on cap rates and how they have been impacted. For 5-star properties, for example, the market is looking at manufactured home communities that were delivering a cap rate of three or three and a half, now coming in at a five or five and a half.

Three-star properties that were once at a five to a five-and-a-half cap, may now be somewhere between seven and seven and a half.

This rapid shift has taken many owners by surprise, and it’s important to understand that while we can’t control interest rates there are factors we can work with to optimize property value.

Find Ways to Optimize

ties throughout the state have the added burden of rising insurance costs, especially after hurricanes Ian and Nicole.

However, a cookie-cutter approach to curtailing expenses simply won’t be enough. The question isn’t how can we cut expenses? It’s how can we add value while cutting expenses.

The Outlook

While the debt market has temporarily stalled and cap rates have inched up, there is an abundance of dry powder waiting on the sidelines for clearer signals on where the economy, inflation, and rates are headed.

It’s essential for community owners to know that while the market is not moving at the velocity it was six to eight months ago, it’s still very active. Savvy investors are looking beyond the static to the fundamentals, and the fundamentals of the market remain strong.

the debt markets have come to a grinding halt. Changing at a pace not seen since 2008, albeit in the opposite direction, lenders are simply not able to effectively underwrite loans with rates rising at the current pace. As a result, leveraged buys that were ruling cash-on-cash returns across asset classes less than a year ago are now on hold. But, for how long?

The Cash Market

Meanwhile, the debt market’s loss is the cash buyer’s gain. Buyers with pockets full of cash

To illustrate, at our shop we’re working with owners on a variety of factors that have an impact on the value of a property. Our analysis looks at everything from operating expenses and maximizing the competition among potential buyers, to developing a custom marketing strategy that optimizes value and price.

This approach is critical since this past year has been particularly challenging on park owners due to rising costs. Inflation has driven up operating costs for labor, utilities, materials, and insurance. In Florida, for instance, communi-

Historically, the mobile home park space has been widely known as a recession-proof asset class. As the most affordable housing option, demand for our homes actually increases during a recession.

In addition, mobile home park residents are known as “sticky residents”, meaning they stay for the long term, rarely moving out of their chosen community.

Other fundamentals to consider are rental and occupancy rates. Rental rates across the MHP space continue to rise. Most MHPs remain at below-market rents,

providing a great deal of room for potential upside in rents.

At the macro level, occupancy rates are at all-time highs. However, at the micro level, there is tremendous opportunity for optimizing occupancy at parks across the country in all markets.

In addition, the recent attention by the administration, FHA, and Freddie Mac on affordable housing, and especially manufactured housing, has opened new avenues for consumers and investors. For example, the Federal Housing Administration proposed a rule to annually adjust the loan limits for its Title I Manufactured Home Loan Program, a program that insures loans used to finance manufactured homes titled as personal property. Other proposed

Savvy investors are looking beyond the static to the fundamentals, and the fundamentals of the market remain strong.

or enacted actions include helping states and localities eliminate needless barriers to affordable housing production, including permitting for manufactured housing communities, and creating separate indexes and updating loan limits for Title I Manufactured Home Loan Program.

There is no doubt that untapped value and opportunity remain in the mobile home park market, and the fundamentals prove it.

For sellers, there is value in what they’ve built. Tapping into that

value will open new opportunities.

For investors, there is untapped opportunity in the inherent value of the property.

While this unchartered territory brings uncertainty, one thing is definite, there is plenty of opportunity in uncertainty for mobile home park owners and investors. MHV

Kevan Enger is a partner and manufactured housing director for Capstone MH. He specializes in helping mobile and manufactured home park property owners across the country successfully position, market, and sell their properties to maximize their returns. Capstone has seven offices in five states throughout Florida, the Southeast, Midwest, and Mid-Atlantic.

IT’S ALL PART OF A CYCLE

by Tony Petosa, Nick Bertino and Matt Herskowitz

When considering how to summarize our current economic and market conditions, we were suddenly reminded of an old idiom: we just can’t see the forest for the trees. In today’s world of fast-moving, multi-faceted media, we are so inundated by details and, in many cases, conflicting information that we fail to understand the big picture: It’s all part of a cycle!

Taking a step back, it is helpful to recognize that there are four phases to a real estate cycle: expansion, hyper-supply, recession, and recovery. While each cycle is unique and there are differences in how certain markets and properties perform, all cycles follow a predictable pattern that commercial real estate owners, including manufactured home community owner/operators, should consider when forming both short- and long-term strategic and operational business plans.

Identifying where we are in the current cycle enables us to reference past cycles for insights on expected economic policies and consumer demand going forward.

Study the Full Cycle

Coming out of the Great Recession of 2008, we slowly transitioned through the recovery phase, which was followed by a prolonged expansion period. In recent years, it would be reasonable to say that most markets have been in the expansion or hyper-supply phases with some markets beginning to see early signs of recession in 2022. Individual markets and property sectors often vary in terms of timing as they transition between phases, with multifamily properties outperforming other sectors such as retail and office during recent market cycles. We are seeing this now with new single-family housing

starts falling off faster than multifamily construction. The chart on the adjacent page presents key economic statistics before, during, and after the COVID-19 pandemic: Many view the apartment sector as a relevant proxy for the MHC sector due to the extensive market data that is available. Recent surveys and reports on the apartment sector show a reversal in rent and occupancy growth during the second half of 2022 as the dramatic shift in monetary policy appears to be influencing consumer behavior. Nationally, single-family units under construction declined each month in the second half of 2022 while multifamily new construction has continued, particularly in core markets, but the pace has slowed considerably from 2021. According to the National Association of Realtors, single-family

housing starts in the third quarter of 2022 were 13 percent below the pre-pandemic historical average while multifamily was constructing about 50 percent more units than the pre-pandemic average. Some point to prolonged construction completion delays as a reason multifamily has not slowed more, but multifamily demand is also benefiting from increases in residential mortgage rates, which have negatively impacted single-family housing affordability. Still, it is expected that rental rates will moderate in 2023, at least in some markets, given the new multifamily supply being added at a time when more people are moving back in with family or delaying moving out of their family homes, which is slowing new household formation. So, while pundits often disagree on

defining what phase of the cycle we are in until after the fact, it is clear we have made a pivot.

Multiple Market Forces Impact Industry

It is also worth noting that every cycle has its unique economic and political backdrop, and our current environment has provided the Federal Reserve and policy makers plenty to consider: stubborn inflation resulting from extreme monetary and fiscal stimulus, an unusually low unemployment rate due to declining work force participation, higher than expected consumer spending, and a war in Europe. The Fed has made it clear that it will remain steadfast in tightening monetary policy until inflation abates, even if that means overcorrection.

Expansion

Decreasing Vacancy Rates New Constructon High Absorption Employment Growth Increasing Rental Rates

Hypersupply

Increasing Vacancy Rates New Construction Low/Negative Absorption Moderate/Low Employment Growth Lower Rental Rate Growth

Recession

Increasing Vacancy Rates

Low New Construction Activity Negative/Low Absorption Low/Negative Employment Growth Low/Negative Rental Rate Growth

Recovery

Decreasing Vacancy Rates

Lower Constructon Activity Moderate Absorption Low/Moderate Employment Growth Negative/Low Rental Rate Growth

The continuing low unemployment rate also provides political cushion for further tightening if needed. With that in mind, while we expect the Fed will continue

Labor Statistics, the labor force is projected to grow over the next 10 years at an average annual rate of 0.5 percent, which is a slower rate in comparison to recent decades.

Annual Averages

2019 2020 2021 2022 Forecast

Consumer Price Index 1.80% 1.20% 4.70% 8.10%

Avg. 10 yr treasury yield 2.14% 0.89% 1.45% 2.91%*

Real GDP 2.30% -2.80% 5.90% 1.80%

Unemployment Rate 3.70% 8.10% 5.40% 3.70%

Fed Funds Rate 2.16% 0.36% 0.08% 4.25% to 4.50%**

* 2022 high - 4.34% in October

** As of October 2022

Source: U.S. Bureau of Labor Statistics, Bloomberg and Macrotrends

to raise rates in 2023, that does not necessarily mean the 10-year U.S. Treasury yield will increase in lockstep. The bond market, and particularly longer-term treasury bond buyers, respond favorably when inflation expectations are reduced. After hitting an all-time low yield of 0.52 percent in 2020, the 10-year U.S. Treasury yield surpassed many long-term averages when it hit 4.34 percent in October 2022 (its yield averaged 2.91 percent and 3.90 percent over that last 20 and 30 years, respectively).

One the Move

Changes in demographics are also a factor for both policy makers and property owners to consider. One reason unemployment has remained low is because we are seeing, and will continue to see, a trend of fewer working age Americans and more retirees. According to the Bureau of

Factors include slower population growth and the aging of the U.S. population in addition to the declining labor force participation rate. In other words, finding good employees will continue to be a challenge so property owners should be prepared to budget for higher payroll expenses. Additionally, this demographic trend will have implications for required amenities and services for properties to remain competitive.

Certainly, there is a lot for property owners to consider when making business plans. From a financing perspective, we believe a case can be made that the worst of the increasing interest rate adjustment period is behind us barring a reversal of the recent improvement in inflation measures. Perspective when considering the timing and structure of your next financing and for anyone considering an

early refinance in the next few years versus waiting, inflation will be key. And while there has been much discussion about a likely recession on the horizon, it is important to remember that this is following a prolonged period of higher property values after the Great Recession and that periodic adjustments are healthy for the market over the long term. MHV Tony Petosa, Nick Bertino, and Matt Herskowitz are loan originators at Wells Fargo Multifamily Capital, specializing in providing financing for manufactured home communities through their direct Fannie Mae and Freddie Mac lending programs and correspondent lending relationships.

If you would like to receive future newsletters from them, or a copy of their Manufactured Home Community Market Update and Financing Handbook, they can be reached at (760) 438-2153/tpetosa@wellsfargo. com, (760) 438-2692/nick.bertino@ wellsfargo.com and (760) 918-6571/ matthew.herskowitz@wellsfargo.com.

Business Booms Out West

Sun Communities Finds Opportunity, Takes Time to Build New

There’s a lot of activity in the plains, out in the desert, and in the mountain towns of the West. For Michigan-based Sun Communities, those western states provide open land and promising relationships with municipal leaders who want to solve the problem of housing availability and affordability.

Tom Mirande is a senior vice president in the western United States for Sun Communities, overseeing 68 properties in nine states.

“There are a number of new communities developed from the ground up in the this region,” Mirande said. “I actually have fewer communities than my counterparts in other areas of the country because of that dynamic. It takes more time and attention to build from the ground up than it does to operate or even expand existing communities.”

And Sun Communities is making a name for itself not in, but near large metro areas.

“You have to be able to show these municipalities who you are, that you’re in for the long haul, and be a committed partner in what the property will be for the city,” Sun Communities Associate Vice President and Marketing Director Ian Frank said.

Mirande said the team from a new community in Texas recently was invited to participate in a city parade.

“They got a lot of good feedback, and had a really great time, too,” Mirande said.

A New Community in Central Texas

That community, Creeks Crossing, had just opened in Uhland, Texas, positioned between Austin and San Antonio, near San Marcos. It’s an all-ages community with new homes for under $200,000 that have open floor plans, new appliances, and private yards. »

“I have plenty of inventory and good, qualified buyers to get in these homes,” Mirande said. “It’s about the stake in homeownership, what we offer can be half or a third of what apartment |rents are in certain markets.”

There will be more than 500 homes when complete. In the first two phases about 200 homes have been placed.

“We have a good business model there, a lot of inventory on the ground,” Mirande said. “It’s been a fairly easy place to build with the support we’ve received from the city.”

Mirande said the number of calls, requests for information, and pending projects in his area have been on the increase, with three calls that day alone to provide information for elected officials and municipal staff.

“Those types of conversation go on, they’re happening everywhere,” he said.

What Residents Get at Creeks Crossing

Community amenities at Creeks Crossing include a splash pad that transitions into a full swimming pool, open year round. There also is a turfed soccer

area, playground, basketball courts, and a clubhouse in progress that will have a great room and fitness center when it’s completed in the spring.

General and specialty shopping sprees are a short drive away in nearby San Antonio and Austin. Nearby are Austin’s McKinney Falls State Park and the beauty of the Texas Hill Country. Other nearby attractions include Wonder World Cave & Adventure Park, and Schlitterbahn, a world-renowned water park and activity destination 30 minutes away in New Braunfels.

Most of the homes at Creeks Crossing are three- or four-bedroom, a majority of which come from Skyline Champion with other builders mixed in. Square footage varies from home to home, but the largest floorplan comes in at 1,680 square feet.

The community offers rental homes, as well. Part of that is working with what the economy is, Mirande said. With inflation and higher interest rates there is some degree of added emphasis on renting.

“The goal is always ownership, but part of the sales process for us is renting first and seeing that our renters love community living and end up buying within a year or two,” Mirande said. MHV

Flagship Communities Executive Takes to the Road, Eyes Future Growth

Nathan Smith Checks in From the ‘Year in Review Tour’

by Patrick Revere

The backdrop of MHInsider’s discussion with Nathan Smith was a three-week long car tour, Flagship Communities’ chief investment officer and three comrades looping through multiple states in the Midwest to assess existing communities and where further opportunities for affordable housing may lie.

Four people in a car immediately conjures the image of myriad pop culture road trip sagas, if not the classic comical headbanging of Bill and Ted.

“We eat junky food,” Smith confessed. “This week we have Culver’s, last week we had Long John Silver’s… “We have a litany of them. Sometimes we go to Chickfil-A, Freddy’s, White Castle.”

From its base in Northern Kentucky, the team creates a cloverleaf across the central U.S. and parts of the South.

“Once per year, we do what I call the Year in Review Tour,” Smith said. “We do it in December to get ready for the coming year.

“There is an economy of scale we’re looking to achieve,” he said. “When we go into a market

we go into with the intent to have enough properties so that we can sell at multiple locations all over town. You don’t want to do TV, radio, and buy ad space that circulates all over town if you’re only selling in one location.”

SSK Origins: The Making of a National Portfolio

Nathan Smith was responsible for one S in SSK, the name of the privately held property ownership and management company that is the predecessor to Flagship Communities, a public entity traded on the Toronto Stock Exchange.

It was at Northern Kentucky University on the first day of college when Smith met his future business partner, Kurt Keeney, a senior looking for a career banking.

“He was going to be in the banking business and I thought I was going to be a lobbyist,” Smith said. “We both went and did those things, and I was the first one who decided it wasn’t for me.” »

MANUFACTURED HOUSING & RV GROUP

Michael J. Nissley National MHRV Director

+1 561 479 1588 mike.nissley@colliers.com

Bruce Nell is a best in class appraiser in the asset class given his penetration into the market early on and as appraised more than $500B worth of assets with $80B+ specifically in the MHRV space.

Both have established relationship spanning decades in the field and will bring a level of professionalism and incredible network that isn’t accessible by other firms.

This Senior-level team is supported by a strong roster of professionals that have been in Commercial Real Estate for 30+ years with institutional experience with banks and private equity groups. This ensures streamlined execution and best in class service to the team.

Maximize

Park

+1 614 437 4687 bruce.nell@colliers.

An Entry to the Industry

Keeney was at Fifth Third Bank at the time he and Smith first talked about becoming owners. He had watched some manufactured home communities, or mobile home parks as they were more often called then, that had come through for financing.

“We were talking about different kinds of real estate that was interesting, and he was the first one to say mobile home parks,” Smith said. “We got an investor. And we were crazy enough to build it. We did that.

“He was the first maintenance guy and I was the first manager,” Smith said. “He could fix a busted pipe, we were real managers and that’s an advantage that we have in the marketplace. We continue to manage properties, that’s what we do. We’ve been out 20 days on the road looking at properties and talking about what we’ve sold. Kurt was at a property in Louisville today.”

SSK continued to build its portfolio, and with time Keeney and Smith understood that going public was the likely course.

“We had started taking investors and private equity, so we created Flagship to house those interests and to begin preparation in branding for the public company,” Smith said.

In 2017, what was SSK began moving into the Flagship Communities real estate investment trust, or REIT, a process that was complete in 2020.

Today, Flagship Communities has properties throughout Kentucky, Ohio, Indiana, Tennessee,

Arkansas, Illinois, and Missouri.

In 2022, Flagship was honored by the Manufactured Housing Institute as the Land-Lease Community of the Year for the Eastern United States. Flagship has nearly 70 communities and about 12,000 homesites.

Giving to the Industry

Smith himself has volunteered for state and national associations in leadership roles to advance the industry, including tenures as president of the Kentucky Manufactured Housing Institute, the Indiana MHRVIA, and as chairman of the MHI board.

“Many people cannot fully understand and respect how important the trade association is for their business,” Smith said.

”If we weren’t supporting this outward facing effort, a lot of those smaller businesses in the industry couldn’t afford to have that advocacy in place.

Weathering the Downturn

Not each of the years from inception were the growth years the industry enjoys today. When the downturn occurred in 2007-2008, homebuyers began having difficulty finding retailers and financing.

“I came to Kurt and told him I thought the delivery process for these homes was drastically going to change,” Smith recalls.

Whatever street retailers remained were primarily selling homes on a foundation, and in rural settings, and using »

conventional financing. Communities were left to buy, sell, and rent homes on their own. This meant creating or finding training sales and marketing teams.

“It really was a painful experience,” Smith said. “We lost a lot of employees, because we were now asking them to do so much more… from footers, to decking, electrical, and now they’re going to have to put the sign out and sell the thing, too.

“The community manager’s job has changed,” Smith said. “He or she is more like a local realtor these days.”

At Flagship, a lot of effort is expended to support the sales efforts in communities and throughout the marketplace. That’s one of the reasons Smith and his team

take the annual road trip, to see for themselves, to have face to face conversations, and to get a real feel about the direction of the community.

Ron Papworth is a regional manager of sales for the West division, and Adam Uhlenbroc, at the age of 22, is a new associate with Flagship in charge of inventory management.

Assessing

Properties, and Talent, Too

The team Smith takes on the road for his tour offer specific areas of expertise in interpreting and evaluating the state of home sales in each market.

Rob McCracken, the company’s vice president of home sales, is also a college friend from Scripps Howard. He’s new to the industry and provides a fresh perspective for Flagship’s leadership.

“Sometimes you need someone who can look outside the scope the industry has set,” Smith said.

“We talk about what size of a home we’re selling at a location and what we should be looking to sell, so he’s in charge with that process,” Smith said. MHV

Guiding your business through extraordinary times

Wells Fargo Commercial Real Estate understands that making business decisions in the current environment is more challenging than ever. Our experienced bankers can provide the financial guidance you need to help navigate your company’s most pressing issues. With our industry knowledge, products, and services, we’re confident we can help keep your business moving forward.

Learn more at wellsfargo.com/mhc

Tony Petosa 760-501-9001 tpetosa@wellsfargo.com

Nick Bertino 858-336-0782

Nick.Bertino@wellsfargo.com

© 2020 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. IHA-6812230

Matt Herskowitz 760-421-9222

Matthew.Herskowitz@wellsfargo.com

POSITIVE REINFORCEMENT

A Vital Tool in Maintaining Community Living Standards

by James McCaughan

One of the foremost goals for a community owner is to maintain a high standard of living for residents. While doing so can sometimes be expensive, efforts to live up to reasonable standards pay dividends both financially and emotionally. A clean, well-functioning community can demand higher rents and minimize vacancies and delinquencies. An appealing community that minimizes negative externalities to its neighbors while offering affordable housing to area residents is more likely to see cooperation from local stakeholders. And of course, community owners and managers can rest easy knowing that their residents have a peaceful community to live and raise a family.

There are many measures a community owner has direct control over — repaving roads, installing a new playground, updating or building a community rec room, to name a few. These undoubtedly contribute substantially to resident satisfaction.

However, many aspects of a well-run community, particularly on an aesthetic level, are not within management’s direct control. Damaged skirting, overgrown lawns, and moldy siding even on one lot can degrade the entire community’s appearance. From that one resident who refuses to maintain his home and yard, the effect tends to simply spiral in a manner reminiscent of the tragedy of the commons. One resident sees his neighbor let his grass go uncut for weeks or months, and soon he decides it is not worth the effort to keep his home and lot in shape either, perhaps allowing mold to spread across siding or junk to accumulate in the yard. Before you know it, the entire community becomes an eyesore. »

Prevention Above Warnings, Penalties

The standard response is to nip the problem in the bud through prompt rule enforcement with the first violation, i.e. warnings and fines for failure to adhere to regulations, with the advisement of further action for continued failures as a backstop.

To some extent, however, this presents a lose-lose situation.

A resident may believe that he or she is being unfairly targeted even if management does everything by the book. For its part, the community must divert resources to enforcement and may even lose a resident if there is a refusal to cooperate. In the end, the incentives and disincentives under a purely enforcement-oriented program, even if they create perfect compliance, may only result in residents doing the bare minimum to avoid a penalty.

To prevent such a situation, many operators — from the largest aggregators in the country to multi-generational family owners — have moved in the direction of positive reinforcement. Family owners in particular seem to rely on such a strategy. In visits to over 500 communities in the Midwest, I have seen plenty of ingenious programs that instill pride and fraternity among residents. Garden competitions that recognize one resident each month for the beautification of their lot leads everyone to go beyond the minimum in maintaining lawns, hedges, and flowers. Regular potluck dinners and holiday parties bring residents together, instilling a sense of community and responsibility toward neighbors.

Efficient Programs for Resident Value

These initiatives have the added benefit of being a minimal additional cost or work for management. A

gardening competition may be as simple as allowing an employee a few minutes once a month to walk the community to judge the lawns and place a “Garden of the Month” sign in the winner’s yard. Potluck dinners, by definition, do not require any extended outlay from the community, with residents sharing the costs among themselves for the party.

These programs seem to enjoy great success and participation in communities located in the Midwest. The culture in this part of the country drives people from all walks of life to voluntarily contribute to and cooperate with community events. Moreover, the changing of the seasons allows for more variety in gardens, and the relatively short window during which most plants can thrive creates a sense of urgency among even more passive residents.

Now, I am not naïve. Regardless of how much effort management puts into positive resident outreach, there will always be some who do not care whether their yard wins any competitions, and who have no interest in participating in community events. Just like an enforcement-only approach will experience deficiencies, so too will a purely positive reinforcement strategy. After all, there is a reason why “carrot-andstick” is such a common refrain. Still, the carrot portion of that formula is at least as vital to the end goal of maximizing community quality — particularly the aesthetic aspect. Every community should keep this tool on its belt to achieve that end. MHV

James McCaughan is Yale’s regional director for the Midwest where he advises owners and investors of manufactured housing communities and RV resorts on new opportunities and challenges, including the sale and purchase of properties.

What Happens When

‘The Water Stops Flowing’?

by Brent Tiano

The water and sewer system that no one thought much about last week will become the main conversation in a community when something goes wrong. When the water stops flowing or a sewer backs up, who gets the call? If you own the system, it’s YOU.

Few MH parks still own and operate their water and/or wastewater systems. Typically, this is of necessity when a park lies outside the boundaries of a municipal system. The system may provide a predictable cash-flow, but is it your best return on time, risk, and investment?

It’s easy to defer systems maintenance until a heavy rain causes flooding and contaminates drinking water, or a lift station fails. The cost to replace or re -

furbish a treatment plant can be significant and often exceeds reserve or contingency funds. Additionally, the various financial and environmental regulations that apply to owners of water and wastewater utilities are becoming more stringent and complex, with corresponding increases in risk and insurance.

If you own a water system, you’re responsible for ensuring water is safe to drink. You must test water for harmful contaminants on a regular basis, treat it if required, and provide testing results to the community served. These requirements are increasing.

If you choose this path, the National Rural Water Association (NRWA.org) is a tremendous resource for water utility operators.

And the requirements around compliance are constantly changing. For example, the Environmental Protection Agency is currently poised to list Per- and Polyfluoroalkyl Substances (PFAS) as hazardous substances in 2023. These are man-made chemicals, which even in small amounts have been linked to serious health issues. Legal limits for these compounds haven’t yet been set for drinking water.

Privately Owned Utilities

If operating your own water or wastewater utility seems increasingly onerous, there is an option. You can pass the ownership and responsibility to a private utility operator with specialized experience in water/wastewater utility financing, regulatory compliance, risk management, and systems operations and maintenance.

Private utilities will purchase existing systems in various conditions, bring the systems into compliance if needed, ensure repairs and maintenance is done, and operate and manage the system as an ongoing investment. And private utilities are economically regulated by local or state regulators to establish and

maintain fair and reasonable rates for customers.

One of the biggest fears people may have of a private utility owning their utility system is that once they own it, they’ll raise rates and customers will have no say or recourse. This is a myth. As private utilities are economically regulated, rates cannot be set arbitrarily, and all rates must be audited and approved by public utility commissions. In addition, should any customer have a complaint, they can take their concerns to the commission. Separate from the regulatory assurance, most private utilities don’t want bad publicity, and will work hard with HOAs to ensure their needs, customer needs, and regulatory requirements are met. You may have multiple private utilities servicing your area. These can be found through websites like InMyArea.com. Take time to research private utility owners/ operators to verify the utility has good reviews. Verify the company is willing and able to invest in capital expenditures. You may want to invite competitive bids on the purchase of your utility assets to arrive at a well-informed decision. Remember, the purchase

price is just the beginning of the relationship with a private utility; so make sure to look at all aspects of the organization.

Existing Private Utilities

MH park owners may also choose to partner with an existing private utility. Private utilities know their business and are able to negotiate terms unique to each property and in the best interest of the customer – the rate payor.

Whether you’re a developer, owner, or community manager, when you provide the water people drink, you make a 24/7 commitment to your community’s health and safety. You must decide whether you’re committed to be the utility for your community or if the community is better served by a private utility with specialized experience, knowledge, and resources. MHV

Brent Tiano, CCIM graduated from New Mexico State University with a BA in marketing, Worked for Walt Disney World Feature Animation and Audiovisual before co-founding a graphics company. Tiano went into commercial real estate and in 2007 earned his CCIM designation.

The Estates Takes Shape in North Texas

YES Communities Plans 273 Homesites, Will Fill 50 in 2023

The Estates, located in Princeton, Texas, has added 162 new sites with the most recent expansion and has new homes being scheduled for delivery now. In addition to the expansion, a new amenity center has been constructed that includes a beautiful clubhouse, playground, walk-in pool, picnic pavilion, walking trails, and a pond with a pier.

YES, a Colorado-based private real estate investment trust, or REIT, will have a total of 273 total homesites at The Estates with the expansion.

The homes currently placed in the community — a mix of single and multi-section homes — come from Oak Creek Homes, built in nearby Lancaster, Texas.

Each home has a front-loaded deck constructed in the factory, and the sites have tandem parking down the side of the home, which allows for a sizable front yard.

Buyers at The Estates can rent or purchase a home. More than two dozen homes were placed at The Estates in the second half of 2022, and there are plans for adding another 50 homes in 2023.

“With the growing need for attainable housing in North Texas, the opportunity to expand and deliver modern new homes at The Estates in Princeton was an obvious decision,” YES Communities Senior Division Vice President Trent Wagstaff said. “Building a beautiful new community center, along with a pool, playground and pond were also important in ensuring that our residents and future residents would be proud of this community.” MHV

Use Your Smart Water Meter to Prevent

Water Damage and Reduce Insurance Rates

Property Take Advantage of Insurance Discounts from Instant Leak Alert

by Bill Baird

Ever hear the saying by Bobby Davro, “The measure of success is happiness and peace of mind”?

If you haven’t experienced a ruptured water line in or outside a home, consider yourself very lucky. The amount of water damage is so astronomical one can literally see dollar signs going down the drain. Insurance companies feel the pain of water damage, too, with water and flooding being one of the most common and expensive home insurance claims.

At Metron Sustainable Services, we believe in success by measuring the accuracy of water and leak detection. Industry leaders in water metering use advanced engineering and creative software solutions to constantly innovate and push the standards beyond expectation. Tracking water flow to the drop is an art form, using smart meters loaded with proprietary cloud-based technology.

The importance of knowing this data is somewhat unlimited because one can determine if their consumption usage is high due to long showers, over-watering, defective toilet flappers and so on. They can address each leak with the usage alert system in place.

Every Drop Counts

The high-tech approach to water tracking, in addition to identifying leaks and costly water breaks, compels residents to consider their daily water consumption to a much greater degree, and results in significant cost reductions for water delivery and usage.

Capturing water consumption downstream is especially important, yet the question remains, where has all the water gone that was billed by the municipality but not captured on the submeters?

One solution is to monitor what goes through a main meter and as well as what is captured downstream. Our results have shown upwards of 46 percent difference between water going through a main meter and submeter!

Community owners and operators want to see as little loss as possible, which means limiting or eliminating the unbillable water. And if an infrastructure leak goes unnoticed it eventually will erode the ground, causing even more property damage.

WaterScope will compare and analyze the water flow daily to identify infrastructure leaks and send out an alert if the set threshold is surpassed. All the meters are time synced, allowing for accurate flow measurement via Verizon connectivity. MHV

Bill has served as the director of Marketing for Metron Sustainable Services for years. His history in the tech industry brings added value to many organizations that are seeking to bring products to market, including by leading teams to successful deployments, managing scopes, and most importantly, mentoring others to achieve higher expectations for personal growth. Bill is dedicated to building long-term business relationships that bring meaningful value to partnerships and executing strategic plans to scale the business.

These charts show how WaterScope from Metron can identify water consumption usages such as irrigation, showers, toilet, dishwashers to washing machines.

BACK TO BASICS

How to Refresh Your Marketing for a Changing Business Environment

by Darren Krolewski

There’s an old tale of two competitive lumberjacks: an experienced, veteran woodcutter and a brash, young upstart.

Constantly at odds, the two rivals decided to settle their differences once and for all with a woodcutting contest. Whoever felled the most trees would be declared the winner.

At sunrise, each set out to clear an area of the forest. Every now and then, the young wood cutter would hear the chopping stop on the other side. He would see the veteran lumberjack taking a break with his axe resting on his lap. Laughing at his rival’s lack of

stamina, the young lumberjack chopped harder and faster invigorated by his certain victory.

At the end of the day, the rest of the logging camp came over to judge the winner. The young wood cutter had felled quite an impressive pile of logs. But to the young lumberjack’s surprise, the veteran woodcutter had felled an even greater number.

“I don’t understand,” exclaimed the exasperated young lumberjack. “Every time I looked over you were taking a break.”

“Those weren’t breaks,” chuckled the veteran lumberjack. “I was sharpening my axe.” »

‘Sharpen Your Axe’

Whether you make your living chopping wood or selling homes, the last two years of business have been anything but usual. We’ve gone from the pandemic lows and surging demand that followed, to recovery, inflation, and growing uncertainty about the global economy.

Though the experts continue to debate how it will all shake out, one thing is certain: it wouldn’t hurt to sharpen your axe. Figuratively speaking, of course.

Here are a few suggestions to sharpen your marketing axe and better position for the opportunities that lie ahead.

Make It Easy for People to Find You

Almost everyone finds everything online. Why not freshen up your online presence? There’s no excuse for not having a great website in 2023. It needs to be fast, informative, and look great on every device including mobile. The days of holding information back, like site rent and home pricing to encourage an inquiry, are over. Consumers do their research online and make pre-purchase decisions before they even contact you. Less isn’t more. More is more.

One of the best ways to ensure you show up in Internet search results is to claim your listings in the various online business directories. This includes basics like your Google business profile, MHVillage listing, Yelp, Apple map app and other relevant directories.

All of these sites often show up high in search engine rankings. Unfortunately, they can also be inaccurate. Claiming them allows you to edit your hours and essential details about your business, upload nice photos, and respond to online reviews.

Tighten Up Your Online Reputation

When I was a young boy, my parents told me if you don’t have anything nice to say, don’t say it. Today if you don’t have anything nice to say, there’s a good chance there’s a website made especially for that purpose. A negative online reputation could be costing your business and you may not even realize it. Studies have shown that four out of five consumers have changed their mind about a purchase decision after reading negative online reviews.

Run a Google search on your company name or properties to see what comes up and where. You can also conduct a similar search on the major social media platforms. Our reputation management service, MH.Reviews, has a free tool to get an instant online reputation report.

Such automated monitoring tools simply find mentions of your company or brand online. Not only can you track how you appear in organic search results, but they also enable you to easily respond to positive or negative reviews through a single account dashboard.

While it may be impossible to avoid negative reviews entirely, there are proven strategies to stack the deck in your favor. The best tip is to simply ask for the review. You can include a review link or pop up on your website, ask for feedback in your email signature, and survey your current residents and customers during various stages of the sales process. Winning the online reputation battle often comes down to cultivating positive reviews to balance out the occasional negative ones.

Look and Act Like You Are Ready to Do Business

If you own or manage a community, is it obvious you’re an active, filling property? You may know what you’re doing, but no one else does. Let consumers know they can live at your property and that you have vacant sites or homes available with signage at the entrance, as well as on any inventory homes. If you have an on-site sales or leasing office, make sure it is clearly identified. If you are fortunate to have roadside frontage, take advantage of it. Don’t miss after-hours opportunities as well. Self-service boxes with home information are a great way to capture drive-by traffic at all hours.

In today’s market, the bulk of consumer inquiries begin online. If you are investing in posting content on social media sites, make sure that you have a system in place to respond to comments and messages promptly. According to recent Facebook statistics, the average page takes about a day and a half to respond » to a Facebook message. Yet, at that same time 85 percent of Facebook users say they expect a company to respond to their message within six hours. Chatbot tools and automated responses can help field the easy »

questions 24/7, and escalate them to a real person on your team for further review when necessary. In short, being on social media means being attentive to your social media.

Responsiveness to online inquiries is equally important. In a study by Harvard Business Review, the average response time for an online inquiry was 42 hours! And over 20 percent of the companies surveyed never responded at all. These results are disappointing when you consider how quickly warm leads go cold. A follow-up study found that companies that contacted potential customers within an hour of receiving a lead were nearly seven times more likely to engage with that lead as those who tried to contact the customer just an hour later. If you are spending money to generate leads online, you should be responding at Internet speeds. And last I checked, that was pretty fast.

Work Smart, Not Hard

just by doing that. It’s not always about how many leads you can generate, it’s what you do with the ones you already have.

On that note, you should have an email database for prospecting and drip campaigns to keep your leads engaged. Whether it’s Mailchimp, Constant Contact or some other platform, there are plenty of good ones that do the job. You should also have a CRM system to keep track of where prospects are at in the sales process. If they are not ready to buy now, there’s a good chance they will be in the future. Don’t squander tomorrow’s business.

In today’s market, the bulk of consumer inquiries begin online. If you are investing in posting content on social media sites like Facebook, make sure that you have a system in place to respond to comments and messages promptly.

When I was a young man in this industry, my boss would often respond to my creative (albeit untested) marketing ideas with “we’re not Coca-Cola®”. While risk and innovation should always be a part of the marketing mix, there’s a lot to be said for focusing your budget on the marketing channels that are most likely to provide a return. In our industry, the best return usually amounts to your own website, manufactured housing-specific sites like MHVillage, Facebook and Instagram, Craigslist, large real estate and rental sites like Zillow, and Google pay-per-click ads. Know where you’re getting your conversions and at what cost.

Equally important is not to burn ups. Many years ago, I worked in the cellular phone business. We had a salesperson on our team that never took ups in the retail showroom or made cold calls. All he did was go through all the dead lead cards that filled up filing cabinets. He was the top salesperson

When it comes to home listings, the devil is in the details. As I look through homes on MHVillage I often see companies that repeat the same one or two home descriptions. “Great financing available, immediate occupancy” they exclaim. These don’t do much to generate interest. On the other hand, I see sales agents who meticulously describe what it would be like to live in each home. “Spacious, bright and inviting, you’ll enjoy your morning coffee from your cozy breakfast nook,” they say. When price and location are equal, the deciding factor is usually effort.

At the end of the day, there’s no surefire way to succeed in a changing business environment, especially where there is uncertainty involved. You need to focus on the basics, be ready to adapt to the needs of the marketplace and put in the effort. And, if you recall the lesson learned from our lumberjacks, make the time to sharpen up. MHV

Darren Krolewski is co-president and chief business development officer of MHVillage, the top website for manufactured homes, retailers, and communities, and leads efforts that generate 25 million annual visitors and home transactions of more than $3 billion.

Neighborhood Developer and Builder Collaborate on a New Kind of

CrossMod® Homes in East Tennessee Bring More Attainable Options for Individuals, Families

A new neighborhood in East Tennessee shows how a different construction process and builder/developer partnership can offer a unique solution to increase affordable housing inventory. The Cottages at Dandridge is a neighborhood developed by Rocky Top Home that includes 18 Clayton Built® CrossMod® homes.

“When I first learned about CrossMod homes, I knew I wanted to be a part of building them,” Rocky Top Homes President JP Parks said. “You can't tell a difference between these homes and ones built using traditional on-site methods, and they can be developed much quicker.”

CrossMod homes are built to HUD Code and have site-built features, including a permanent foundation, elevated roof pitch, garage, or porch.

And buyers can get conventional financing for CrossMod homes.

“We are dedicated to finding new processes to help open doors to a better life,” Jake Wilson, Clayton’s director of national business development said. “CrossMod homes offer us the opportunity to work with local developers, like Rocky Top Homes, to quickly provide more essential, affordable homes in neighborhoods and cities across the country.”

CrossMod homes are a viable solution to many of the needs in the current housing market, particularly providing an increase to home inventory.

The average time for a new site-built home is between six and eight months. That number is 6.7 months for build-for-sale homes and goes to more than 14 months for owner-built homes.

Clayton builds its CrossMod homes in factories across the United States and sells them through real estate agents. In the case of the Cottages at Dandridge, 10 homes have been finished in as many months.

The home-building process began in a nearby climate-controlled facility where each home was efficiently constructed, inspected, and taken to the neighborhood where Rocky Top had completed the land preparation for permanent installation process.

CrossMod homes offer buyers forward-thinking designs, energy-efficient features, and high-end materials.

Park said the Dandridge neighborhood partnership with Clayton has inspired the group to locate more tracts of land to continue development of CrossMod homes in East Tennessee. MHV

Industry Retailers Can Benefit from Propane-Powered Homes

Propane Council Introduces Incentive Program

Retailers in the manufactured housing and modular housing arena now have a broad incentive program for homes that use propane and propane-powered appliances.

The Propane Education and Research Council said it initiated the Manufactured Housing Retailer Incentive Program to encourage manufactured housing retailers to work with their clients to include “clean, reliable, and efficient propane appliances in homes.”

Bryan Cordill, PERC’s director of residential and commercial development, said the program offers up to $6,000 for each sales center location to install model homes with propane appliances to help showcase the benefits of building with propane.

“This incentive program provides a great opportunity for manufactured housing retailers to access funds necessary to showcase propane and its benefits,” Cordill said. “Adding propane performance to homes is an important step in further reducing greenhouse gas emissions and increasing efficiency and resiliency.

“To receive funding, we ask that retailers work directly with their propane supplier to apply for the program,” he added.

The funds will cover any increase in the cost of the model home to incorporate propane, including the cost to convert appliances, install the propane system, and perform safety checks.

Funding is available for HUD Code homes and modular homes with a gas range and a heating appliance, either a furnace or fireplace.

PERC said the propane supplier and manufactured housing retailers are required to report sales of propane homes from the retailer on a semi-annual basis for three years.

The Propane Education and Research Council is a nonprofit organization that provides propane safety and training programs and invests in research and development of new propane-powered technologies. PERC is operated and funded by the propane industry. For more information, visit Propane.com. MHV

EXPECT SMOOTH SAILING WITH LUMENT.

Expertise and experience matter — but only if they’re coupled with dedication and attention to detail. When you choose Lument, you can count on us to take the initiative, clearing away obstacles and making sure your transaction proceeds smoothly to closing. You can rest easy knowing we’re always on the job.

FHFA Approves New Credit Scoring Models for Fannie, Freddie

by Raymond Leech

As we know, manufactured housing is a key source of affordable housing for many Americans. And, as noted in a previous article, Fannie Mae and Freddie Mac are reviewing ways to better support the industry’s lending programs in the coming years. And just recently, there is good news from FHFA that should positively impact a lot of people looking to purchase new homes.

On Oct. 24, FHFA approved two new credit scoring models for use by Fannie Mae and Freddie Mac, the FICO 10T credit score model and the VantageScore 4.0 credit score model.

Why is this change important?

Because these two new models improve the accuracy of a borrower’s credit profile by looking at new payment information such as the borrower’s performance in paying their rent, utilities, and telecom bills. The current FICO score models have been in use for nearly 20 years but do not consider these factors.

The implementation of both of these systems will take several years, but once in place, lenders will have to deliver both credit score models for any loan sold to Fannie Mae or Freddie Mac.

Benefits of the New Models

In releasing the news about this change in credit scoring models, FHFA highlighted some of the benefits:

· More Accurate Credit Scores: Both FICO 10T and VantageScore 4.0 models met accuracy standards set by FHFA to evaluate borrowers more fairly and accurately.

· More Inclusive Credit Scores: Both new models incorporate different and new payment history information such as rental payments, utilities, and telecom payments. »

· Enhanced Safety and Soundness in the Housing Market:

This change will promote more accuracy in the housing finance system, which will ultimately lead to better outcomes for borrowers, lenders, and Fannie Mae and Freddie Mac. Because both of the new models are more accurate than the current FICO models, the mortgage market and stakeholders will have an improved view of risk to help them better manage it.

The Road to the Announcement

Congress passed a law requiring FHFA to establish a process for validating and approving credit score models for use by Fannie Mae and Freddie Mac. FHFA then issued a proposed rule describing that process.

Implementation and Impact of the New Models

Rouda Smith National Association of Realtors

In 2019, FHFA issued its Validation and Approval of Credit Score Models final rule. A year later, Fannie Mae and Freddie Mac published a Joint Credit Score Solicitation rule, allowing all the credit score model developers to apply for consideration for their models.

The implementation and rollout of this effort will take several years, and over that time, FHFA, Fannie Mae and Freddie Mac plan to work with lenders and other industry stakeholders to ensure a smooth transition.

So, what will be the impact of this change?

VantageScore in their research stated that this change could provide credit scores for 37 million people that FICO does not currently capture as part of their models. Of those 37 million people, the company estimates 10.7 million will have a score of 620 or above, including approximately four million minority borrowers.

“This action today will enable millions more Americans to have access to mortgages because of VantageScore’s more predictive credit score…and it will correct some historical imbalances we’ve had for conforming mortgages,” VantageScore CEO Silvio Tavares told the Wall Street Journal.

The Timeline as noted in the FHFA announcement took several years and started in 2014 when FHFA, along with Fannie Mae and Freddie Mac, began considering changes to credit score model requirements.

In 2017, FHFA issued a request to gather more information about how to better update the credit score models and a year later

In 2022, FHA hosted a public listening session on this new credit score approach that was attended by nearly 350 industry participants and featured 28 speakers sharing their ideas and viewpoints.

And, again, on Oct. 24, FHFA issued the announcement requiring the use of these models by Fannie Mae and Freddie Mac.

The Urban Institute agrees and notes that this effort should positively impact minority homeowners because of the use of rent payments. It estimates that 16 percent more Hispanic and African-American households would have expanded access to mortgage financing.

“Today's decision will benefit borrowers and the Enterprises, along with maintaining safety and soundness,” FHFA Director Sandra L. Thompson said. “While implementing the newer credit score models is a significant change

that

“NAR has advocated for the use of newer credit scores for years as a means of fostering competition, innovation and access, and we are pleased that FHFA has taken the first step to making this change,”

will take time and require close coordination across the industry, the models bring improved accuracy and a more inclusive approach to evaluating borrowers.”

Industry Reaction to the Changes

Reactions from industry professionals to the new measures have been very positive.

“NAR has advocated for the use of newer credit scores for years as a means of fostering competition, innovation and access, and we are pleased that FHFA has taken the first step to making this change,” Rouda Smith, of the National Association of Realtors, said. “There is a long road ahead to implement this change, but it will ultimately create a more accurate gauge on

a buyer’s ability to purchase a home by including alternative credit data.”

Chi Chi Wu is the staff attorney at the National Consumer Law Center.

She told MarketWatch that NCLC has been working on the change since 2014, urging FHFA to update the credit scoring models.

“We have to give kudos to Sandra Thompson for actually pulling the trigger on this, because her predecessors kind of kicked the can down the road.” Wu said, “So this particular decision is good… the credit scoring models should have been updated a long time ago.”

As noted, these changes will take several years to implement, but once completed, many more

Americans should qualify for the financing to purchase a home. MHV Berkshire Bank Product Manager

Raymond Leech has worked in the mortgage industry for more than 30 years, having developed and managed construction and renovation mortgage products, as well as working on FHFA Duty To Serve efforts involving manufactured housing, rural housing, and affordable housing.

THE PLACE TO BE IN 2023

What Does Board Service Mean to You?

Erica Taylor | Augusta Communities

Erica Taylor’s involvement with Augusta Communities started in 2009 and has been full-time since 2013. Taylor has extensive knowledge in the underwriting of property economics and property financing and is responsible for acquisitions, project management, and business development. She prides herself in being a dedicated professional and cultivating opportunities for Augusta Communities through business relationships and creative thinking.

Steven Blank | Blank Family Communities

Steven Blank is the president of Blank Family Communities, a third-party management group in the Midwest with 10 years of MH ownership/management experience and membership in the Michigan Manufactured Housing Association. His company helps owners in multiple states operate their communities more efficiently, and also is a regular contributor to MHInsider magazine.

Maria Horton | Newport Pacific

Maria Horton serves is the director of marketing and is a regional manager for Newport Pacific Capital Company, Inc., a full-service property management company located in Irvine, Calif., that specializes in manufactured home communities, apartment complexes, condominium associations, and RV resorts. Newport Pacific has been a leader in the property management industry since 1980 and oversees properties throughout the United States. Horton holds her MCM, MHM, CAM, CCRM, CMCA, and AMS designations and also is a licensed manufactured housing salesperson.

MHInsider contacted three recent appointees to the NCC Board of Governors to talk about the value of board service and volunteerism. Here's what they had to say.

What motivates you to volunteer your time to the industry?

Taylor

I have volunteered my time to be on the board of governors because I think it is important to be an advocate for nonprofit ownership and long-term housing cost stability for lower-income households.

Blank

I’ve been in this industry since I was 15 years old and have seen some great and concerning changes to our business, especially over the past five years. If my voice can help guide the industry to move in a positive direction, I think that is time well spent.

Horton

As a newly appointed member of the MHI NCC Board of Governors, I look forward to contributing through my many years of experience in the management and betterment of manufactured housing communities. Working for Newport Pacific I have accomplished making a difference in many of the lives of those who live in our parks by offering them a lifestyle they enjoy. It is a privilege and one I consider very important to me.

What do you intend to see accomplished as a result of your service?

Taylor

I hope that through my service on the board of governors for NCC I can help advocate for the industry to continue to promote manufactured housing as a high-quality, energy-efficient, and lower-cost housing option for lower to middle-income families and seniors. I would also like to help change the public’s perception of manufactured housing by focusing on the contributions responsible owners make to improve manufactured housing communities.

Blank

Listing some aspirational goals here — I would like to help our industry continue to solidify itself as a premier option for affordable housing, removing the stigma associated with manufactured homes (and communities), and be proactive about rent control.

Horton

I would like to urge the large manufacturers and community owners to advertise in the mainstream. There are commitments made but the effort requires more participation to change the perception of our industry for attainable housing.

Horton

I find great satisfaction in being involved in the many other industry-related organizations whose boards I have involvement with such as AZMHCA and CMHI. I volunteer for the City of Carson’s Mobile Home Park Rental Review Board, and the City of Costa Mesa’s Mobilehome Park Advisory Committee. This provides me with additional exposure and knowledge of local and nationwide issues affecting our industry.

Anything you'd like to add?

Taylor

My 10-plus years of experience working on behalf of a nonprofit owner of manufactured housing communities in California has provided me with a breadth of knowledge related to proforma analysis and acquisition financing, the strengths and weaknesses of rent control, how to manage and respond to resident issues and complaints, how to under-

take large capital improvement projects such as solar installations and utility conversions, how to rehab or replace homes, and how to navigate MH residency law.

I also volunteered in forming the non-profit Women Advancing Manufactured Housing (WAMH) organization.

This is a networking opportunity and information source for women in our industry. Industry professionals can access and join through LinkedIn. I also am a volunteer member of the American Legion’s Women’s Auxiliary. There I enjoy supporting the men and women of our armed forces through fundraising and social events. MHV

KMHI MEETS GOALS BY STICKING TO PLAN, CREATING SUCCESSFUL PARTNERSHIPS

by Logan Hanes

The Kentucky Manufactured Housing Institute measures its success based on four strategic objectives: public education, advocacy, education of membership, and workforce growth. These goals were developed in 2018 and will continue to be relevant in 2023.

Educating the Public

In terms of public education, there were several initiatives in 2022. For example, KMHI placed an ad in all of the Kentucky Association of Counties and Kentucky League of Cities quarterly magazines, giving KMHI the opportunity to address the affordable housing crisis and share the benefits and quality of manufactured housing.

Furthermore, KMHI launched a consumer-facing website in partnership with manufacturedhomes. com. The goal of this website is to reach potential

consumers and to educate and encourage manufactured and modular home buying in Kentucky.

The association presented across the state in front of realty groups on the quality of manufactured housing and its ability to be a solution to the affordable housing crises.

Our grassroots effort to address the lack of inventory, especially as it relates to affordable housing, is building the momentum we need to achieve our goals.

We also placed emphasis on educating and training appraisers through a continuing education course that goes in-depth on all updates and best practices for manufactured and modular homes. This course is made possible through a partnership with a former member of the Kentucky Real Estate Appraisers Board. »

Advocacy

The second initiative, and one that KMHI does not take lightly, is in the area of advocacy. Unfortunately, there is still a lot of NIMBYism (behavior of someone who does not want something to be built or done near where they live) surrounding manufactured housing – this is at every level of local and state government. First, a strategy to tackle opportunities at the local level starts with education; the association has seen great success in working with realtors to act as a liaison to local government officials. This support has led to multiple educational meetings and presentations with various stakeholders and decision-makers in local government.

KMHI is pleased to say success is happening, one municipality at a time.

Looking at the state level, Kentucky had several legislative goals to accomplish. First was being added to an exemption list for inventory tax, a tax developed in 2008 that had far too many exemptions (boats, RVs, farm equipment, and others). KMHI spent the last three years working to be added to the state’s list of approximately two dozen exemptions, and this year KMHI was successful. The exemption will save retailers tens of thousands of dollars and eliminate the need to cull inventory ahead of the fourth quarter to minimize the annual tax burden. This practice had created undue pressure on factories and decreased installer workload.

The next legislative goal was electronic titling. Kentucky, like many states, has had an outdated system for years. Looking at the automobile titling in great depth, KMHI advocated for manufactured housing to be included in that process and again, was successful.

Lastly, new language was proposed that would give a title holder the ability to file an affidavit stating that there was no longer a lien on their home. However, with our lenders’ best interests in mind, precautionary language was added to this bill that would require an attorney to be involved in the process and sign off on the affidavit. Additionally, if the affidavit were submitted fraudulently or with error, the title would revert back to the previous lien holder.

Member Education Education of membership is a continued priority for the association. KMHI creates, plans, and conducts state-required continuing education for certified installers, known as “5-Hour Continuing Education.” This course focuses on regulatory changes and best practices for installing manufactured homes.

Workforce Growth

The last strategic priority for 2022 was the need to grow the workforce. In an effort to do so, KMHI sponsored the SkillsUSA State TeamWorks Competition. SkillsUSA is a high school and post-secondary organization where students who are interested

in skilled trade can compete in various competitions at a regional, state, and national level. The TeamWorks competition hosts a team of four students from the same school who complete a project that revolves around carpentry, masonry, electric, and plumbing.

KMHI also serves on the board for K4C, a two-day hands-on career fair for high school trade students. The career days feature countless local and state organizations with multiple hands-on activities giving the students a glimpse into that specific career path/field Texas and a chance for them to ask questions and learn about various trades.

Through KMHI’s Scholarship Fund, we provide five scholarships to students who are entering the trades after high school — there are two scholarships available to students who live in manufactured homes.

To help grow the workforce immediately, KMHI initiated conversations with the Kentucky Department of Housing, Buildings, and Construction to change the regulations to allow more options in submitting experience requirements to become a certified installer. Currently, an applicant is required to set five homes under the supervision of another certified installer, essentially requiring already certified installers to train their competition. The regulation change, should it pass, would allow for a potential certified installer to obtain three reference letters from either certified installers or retailers highlighting their

experience, and those who are HUD certified would be able to obtain a certified installer license in Kentucky.

Contributions in Times of Need

Natural disasters are something no one ever hopes to experience. Unfortunately, Kentucky had its share of disaster. In December 2021, a record number of tornadoes stretched over 100 miles in Western Kentucky, wreaking havoc on everything in their path. In the summer of 2022, record flooding swept many homes and businesses away in Eastern Kentucky. Deeply saddened by these events, KMHI developed a Disaster Relief Fund to assist those affected by these disasters. The funds

awarded go to repairs, insurance deductibles, or the down payment on a new manufactured home. More than 250 applications were received, and KMHI’s members were very generous in giving donations to the fund.

KMHI has remained very active in local, state, and federal issues, and the association feels that its strategic plan enables the organization to be proactive in overcoming the misconceptions of the industry and to be responsive as unfair practices attempt to plague the manufactured housing industry. The leadership at KMHI is grateful to have a wonderful staff, and is appreciative of a fantastic and active board and committees that help to set the vision and goals of the association. Together KMHI

is looking forward to continuing success in 2023. MHV

Logan Hanes is the executive director of the Kentucky Manufactured Housing Institute. Prior to his current position, he served as the vice president. He is responsible governmental affairs, zoning and land use, continuing education, and implementing the goals and objectives of the association. He has been instrumental in developing the education for local municipalities regarding the updates and improvements of manufactured housing and works closely with the Department of Housing, Buildings, and Construction.

THE 30-YEAR JOURNEY TO COMMUNITY UNITY, ADVANCED ADVOCACY

A Chronological List of National Meetings by

Community Owners, Operators

Jack Welch, former CEO of General Electric

by George Allen, CPM Emeritus, MHM-Master

Today’s land lease communities enjoy national unity (i.e. knowing who the “players” are!) if only marginal advances in advocacy. How did we get to this positive yet questionable state of affairs? Well, the historical record extends back over 30 years (1992-2022) and is as straightforward as it gets.

In 1992, using the 500-name portfolio list from the Allen Report, the first International Networking Roundtable of manufactured home community owners and operators occurred in April in Clearwater Beach, Fla., with about 100 people present. One forward-looking plan to achieve unity and establish advocacy for the unique income-producing property type was to host a future meeting to that end.

“Control your own destiny or someone else will.”

That process took 16 months to reach fruition. But when volunteer owners and operators met for a strategic planning meeting on Aug. 31, 1993, participants made progress on several fronts, naming an industry steering committee, drafting a mission statement, and identifying objectives for the “manufactured home community industry.” What happened during the next 2 ½ years is best told in the pages of “The First 20 Years” authored by a former MHI staffer, the late Bruce Savage.

Who was present at the first and subsequent meetings of the committee – and where are they today?

· Randy Rowe, founder of Hometown American and Green Courte Partners is still active in this and other real estate asset classes.

· Gary McDaniel, ROC Properties and Chateau Communities, a REIT. Later YES! Communities is now retired and is a 2014 inductee to the RV/ MH Hall of Fame.

· Jim Granges is a property management operations executive for Gary McDaniel.

· Tom Horner, Jr., owner of Horner & Associates in Kansas, is now deceased.

· Martin Newby, now retired owner and operator of Newby Management, a fee-based management firm in Florida.

· Kamal Shouhayib is founder and owner and operator of Choice Properties in Michigan.

· Lynwood Wellhausen, now retired, was an executive property manager in Michigan.

· Marty Lavin, now retired, was a community owner and financier in Maine.

· Eugene Landy, founder and owner of UMH Properties, Inc., a REIT, remains active in the business and was inducted into the RV/MH Hall of Fame in 2022.

· Brian Fannon, CPM®, community owner and consultant largely responsible for West Michigan’s Oaks of Rockford, was inducted into the RV/MH Hall of Fame in 2003.

· Ed Zemanis owner of Zeman Homes, in Chicago.

Two and a half years later, following much discussion, MHI created the National Communities Council, NCC, which later became a division of the institute as a unifier and advocate for manufactured home communities nationwide!

But that’s not the end of the 30 years story!

DEVELOPER DON GEDERT SHARES HIS EXPERTISE, MEMORIES, AND WHAT LIES AHEAD

He started in 1967 with one park and now operates Stardust Hills, a manufactured home community with potential for over 1500 lots. For more than fifty years, Don Gedert has owned and operated manufactured home communities in Putnam County, Indiana. In 1985, he bought Stardust Hills out of bankruptcy in a partnership with 27 businessmen. The subdivision had less than 100 homes. Don bought out 25 of his partners in January 1990. His wife, Kay, refused to sell her shares.

Prior to his work at Stardust Hills, Mr. Gedert owned and operated Ottawa Park in Greencastle, Indiana. Ottawa Park is a traditional mobile home park with individually owned homes and monthly lot rent. When the Gederts bought the mobile home park in 1967, it had 54 lots and monthly lot rent of $30 - $35. They developed the property to 150 lots with monthly lot rent of $100-$125 when they sold the business in 2003.

In Stardust Hills, homeowners own their deeded lots on recorded plats in the subdivision. Stardust currently has almost 400 occupied homes, among them some neighbors who have lived in the community since the 1980s and 1990s. Most were installed over the last thirty years, utilizing both single and multi-section manufactured homes. “The opportunity for people to put their own home on land they own is what makes Stardust Hills unique,” says Mr. Gedert. That has been the appeal for homeowners and the foundation for the ongoing growth and success of the community. As the neighborhood matured and demand for larger homes increased, Gedert created and sold packages of a modular home, lot, and attached garage, all included for one affordable payment.

With over fifty years in the housing industry, Mr. Gedert has experienced many market highs and lows. From interest rates of 21% to the housing bust of 2008, Gedert has persevered. To maintain the quality and home values of Stardust Hills, Gedert bought many distressed homes and rehabbed the properties. As a result, the homes in the subdivision are selling for record prices today. They compete well with site-built homes.

At 85 years old, Mr. Gedert is starting to consider retirement. Undeveloped sections of the subdivision are available for purchase. The subdivision could be purchased in its entirety when the right buyer comes along. “There’s a horse for every rider,” says Gedert, ever the salesman.

TOWN OF CLOVERDALE Utilities

The waste-water collection system within the subdivision is maintained by the town. Capacity of the treatment plants operates at 97% efficiency on a daily basis and has additional capacity available for new development. The water system throughout, tapped into an underground lake, provides an abundance of water capacity that is also maintained by the town and also includes fire hydrants.

Roads

After installation, paved areas within fifty feet of the right of way are controlled and maintained by the town. The town receives state of Indiana road tax money that funds roadway maintenance.

Stardust HOA

An existing HOA provides 51 acres of common ground, maintenance for five lakes, a large clubhouse, pool, and playground area that is currently limited to the subdivision as platted. NEW development will have the discretion of joining with or abstaining from this current homeowners association.

After 55 years in the manufacturing home business, it’s TIME.

This offers a unique opportunity to pursue the next growing sales program for the manufactured housing industry. By taking our base products, installing them on its unique lot and garnishing it with all kinds of options, this opportunity provides the buyer assurance to all the pieces of the pie for them and the potential lenders. These lenders offer twenty and thirty-year complete landhome financing.

Located just thirty minutes west of Indianapolis International Airport, only forty-five minutes to a down-town Indy Colts game, and just south of Interstate 70 off of US 231, this opportunity offers easy access to other areas for work and play. And, Indiana is VERY conservative and one of the few states with cash in the bank.

For More Information: Call 765.795.6600 or email invest.stardust@gmail.com

Parcel 1

Will have 233 individual lots with town water and sewer on the proposed road cuts already installed. This number could increase by platting what was to be a par 3 golf course.

Converting eight (8) proposed fairways into building lots and a roadway, this parcel has 12 ready-tobuild lots that face Lazy Bones Way.

FOR SALE

Parcel 2

Drawn to have 190 individual lots with town water and sewer installed and road cuts, this area also features a variety of wooded areas and a limited number of lake-front lots (the largest lakes within Stardust Hills).

Parcel 3

Has 176 acres and 535 proposed lots and three lakes to be built. Topography maps are available for this parcel and may be redrawn with large home sites, but fewer of them and is also zoned for single family homes.

Parcel 4

Is 16 +/- acres that is drawn for 51 duplex, two-family homes. Could easily be gated and kept separate. Has water and sewer alongside road cuts.

Parcel 5

This area could be rezoned commercial. It is on the south side of Stardust Road (County Road 925 South) and has Town of Cloverdale water and sewer available at the road. Included is a three office unit with ample gravel parking and show space. Up and running with water, sewer, and new heat pump unit.

Sam Karozos, Broker t 317.588.1340 c 317.371.0128 skarozos@bradleyco.com www.bradleyco.com | www.horriganlandgroup.com

Community-Owned

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

Community-Owned

What is Your Portfolio of Homes Worth in Today’s Market?

• Determine an accurate value of housing assets for sale, purchase, or lending decisions

• Identify a fair market purchase price for retail or rental home inventory

• Discover loan-to-value ratios and overall worth of housing assets

• Flexible solutions customized to your unique needs

• Market-based approach for the most accurate representation of value

Determination of Collateral Value for Chattel Portfolios Large and Small

Whether you’re looking to purchase a property with community-owned homes or rental inventory, or acquire a portfolio of loans, Datacomp’s valuation services can provide you the data you need to make informed decisions. Our experienced team of manufactured housing appraisers specializes in determining an accurate worth of housing portfolio assets utilizing our proven market-based approach to value, based on each customer’s unique needs. Our detailed reports provide the information you need to take the next step in your transaction with confidence and peace of mind.

• Over 30 years of industry experience 800.365.1415 | DatacompUSA.com

What Happened Next?

The HUD-Code manufactured housing industry went on a roller coaster ride that affected community unity and advocacy. Specifically, new manufactured home production experienced a brief renaissance in the late 1990s with 1998 production peaking at 372,843 units and crashing to 49,789 units by 2009.

How did this state of affairs affect unity and advocacy? No one knew who was going to survive this trauma if anyone. Chattel capital lenders left the industry en masse, about 10,000 independent (street) retailers closed down, and community owners/operators found themselves “on their own” when it came to marketing and selling homes, as well as installing and seller-financing on-site.

No one had any answers for solving this new era paradigm shift. But there were four separate and independent attempts to unify players and encourage self-advocacy.

On Feb. 27, 2008, at Fountainview, a community in Tampa, Fla., more than 100 community owners and operators met for a day and agreed on five strategies and actions:

· Emphasis on political influence

· Need for a national MH brand advertising campaign

· Improved value proposition for homeowners/site lessees in communities

· Improved customer satisfaction

· Education on how to seller-finance home sales on-site in communities

These five measures, for the next couple of years, played important roles in the community business plans.

Then exactly one year later, another 100 industry executives convened at the RV/MH Heritage Foundation’s Hall of Fame facility in Elkhart, Ind., to agree on a new home design favoring in-community placement and sale. Later that same year, the new design was labeled as the “Community Series Home.” That year and thereafter marked the beginning of the slow turnaround in manufactured housing production and marked an increase in the volume of new HUD-Code homes going directly into communities, up from 15 to more than 40 percent.

At the Networking Roundtable in 2010, Randy Rowe presented his “Five Point Market Share Recovery Plan” – an apt summary of where we’d been and where we needed to go:

· Better home warranties to help sell more new homes

· Chattel financing matters. Expect regulatory oversight

· Economic security ensured with long-term leases and reasonable site rent

· A multiple listing service for the industry, not yet available at the time but needed in communities

· A national marketing campaign

Like the action areas identified two years earlier in Florida, these measures became watchwords among community owners and operators nationwide.

SECO is Born

In 2011, SECO, originally the Southeast Community Owners event, began the 11-year route to national prominence. Its existence has been impressive in growth and overcoming of adversity (e.g. the Virtual gatherings in 2020 and 2021). In this industry observer’s opinion, SECO’s presence has been every bit as historic as the earlier industry gatherings. While the industry and realty asset class has achieved levels of unity and advocacy since, there remained the need for a routine national venue intended for open presentation and discussion of ideas and asset class issues. SECO has been addressing that serious shortfall as part of its annual program.

So this is where we are today. With measures of unity and advocacy in place, for the industry and realty asset class, we continue to need open and public discussion of our shortfalls, including the continued lack of a national advertising campaign. Yes, we’ve come a long long way in 30 years, but what will the next 30 years hold for manufacturers and communities? MHV

George Allen has owned and fee-managed land-lease communities since 1978. He’s a former MHI Industry Person of the Year and a member of the RV/ MH Hall of Fame. He has been designated a Certified Property Manager-Emeritus and a Manufactured Housing Manager-Master. He’s also a senior consultant and staff writer with EducateMHC. Allen can be reached at (317) 346-7156 and gfa7156@aol.com.

MHI is the only national trade organization representing all segments of the factory-built housing industry. MHI members include home builders, retailers, community operators, lenders, suppliers and affiliated state organizations. We are a trusted partner and industry leader that provides its members with a comprehensive range of advocacy, connections, education and engagement resources. Together, we are raising the bar and setting new standards of excellence.

Engineered for Strength. Designed for Beauty!

Designed specifically for Manufactured Homes.

Titan XTERIOR Prime is a foundation cover built to withstand the demands of everyday life. Our reinforced panel design resists damage caused by lawn care accidents, playful children, and mother nature.

• Offers superior protection from high winds, frost heaving, and hail.

• Covered by a Limited 1-year No Hole Warranty, extended to 5 years upon registration.

• Panel colors include White, Dove, and Clay.

• An insulated panel is also available...

Titan XTERIOR Elite.