STATE OF THE INDUSTRY
THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS
THE CHALLENGES OF RISING HOME VALUES INDUSTRY TRENDS AND STATISTICS BUILDING A BETTER NEIGHBORHOOD
MAY / JUNE 2022 | MHINSIDER.COM
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CONTENTS
PAGE 64
BUILDING A BETTER NEIGHBORHOOD
It is actually happening. The decades of hard work that our industry has put into educating consumers about the value of manufactured housing is finally paying off. Consumers and even some cities are realizing that today’s manufactured homes are not the mobile homes of the past. HAPPENINGS 6 Industry Happenings EVENTS 10 Manufactured Housing Industry Events 11 Builders Detail Industry Challenges During Biloxi Expo 13
Seen & Heard
ECONOMY 17 Growth During Troubled Times 20 Supply Chain Woes Just Got Stormier LAND USE 24 How Land Becomes Home: The Process of Community Development in Dollars 27 Modular Construction Offers Solution To Housing Problems In Atlanta WORKFORCE DEVELOPMENT 30 National Organization Sheds Light on Wages, Incentives in Trades 35
Primary Behaviors Of Great Housing Consultants
INDUSTRY TRENDS 38 Industry Trends and Statistics 42 State-by-State Home Sales Heat Map 2 | MAY / JUNE 2022 EDITION
PAGE 44 Even casual observers of the U.S. housing market during the last two years have expressed wonder over the rush of movement in all aspects – from consumer preference changes to the increasing pace of sales activity – and lost on no one is the rapidly increasing value of homes in most markets. ACCESS 52 Research Looks at Relationship Between Zoning, Housing Supply Gap TECHNOLOGY 56 ManageAmerica Offers Ecosystem Of Tech Solutions 60 How the FCC is Making Strides to Fight Broadband Monopolies 62
Four Leaf Launches Video Series to Assist Community Developers
HOUSING POLICY 68 White House Plans Stability in Five Years 70 Zoning Work: A Crucial Part of the Community Acquisition Process EFFICIENCY / SUSTAINABILITY 74 Builders Find Path to Energy Efficient, Environmentally Friendly, Affordable Homes STATE ADVOCACY 80 State by State Roundup 87 INDUSTRY JOB OPPORTUNITIES THE ALLEN LEGACY 92 50 Years Young: RV/MH Heritage Foundation Hall Of Fame Celebrates Benchmark Anniversary
MHINSIDER.COM | 3
FROM THE
publisher
A Degree of Stability, Please?
T
VOLUME 5 • EDITION 3 MAY / JUNE 2022 MHInsider.com Publisher
Patrick Revere patrick@mhvillage.com
Senior Graphic Designer Merit Kathan merit@mhvillage.com
Contributing Editor George Allen gfa7156@aol.com
The rollercoaster of “unprecedented challenge” and rapid change certainly makes the prospect of compiling a State of the Industry edition a daunting one. But patience, observation, and participation go a long way in developing a product that really means something to the consumer. That is something the manufactured housing industry has done well in recent years despite the challenging circumstances. This edition of MHInsider is our “snapshot in time,” organized within are the most important themes that face the delivery of much-needed affordable homes. We must continue to increase the output of factorybuilt homes in the face of challenges that encompass everything from exclusionary zoning at the local level to market disruptions on the global level; pandemic recovery and the war in Europe. In this edition, we examine many industry challenges and opportunities within topics including land use, industry perception, access, workforce development, and the general economy. The Trends and Statistics section is a reader-favorite each May, providing a yearover-year infographic of industry representation. In that vein, we have organized a few new visual storytelling elements that readers often find valuable. We send our praise to all of those who contributed to this edition, and to the hard work of manufactured housing professionals everywhere who supply the degree of stability needed to succeed in troubled times.
Editor
Sean Vichinsky sean@mhvillage.com
Contributors
Ken Corbin Joe Costello Kevan Enger Suzanne Felber Mark Johnson Ferd Niemann Dennis Smith Tim Taylor Don Westphal
Cover Image
Select Cover Photos Courtesy of Clayton Homes
Advertising Sales
(877) 406-0232 advertise@mhvillage.com
Editorial & General Inquiries Patrick Revere 2600 Five Mile Road NE Grand Rapids, MI, 49525 (616) 888-6994 patrick@mhvillage.com
Disclaimer
Although we make every effort to ensure that the information in this issue was correct before publication, MHVillage, Inc. and the publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. Opinions expressed are those of the author or persons quoted and not necessarily those of MHInsider or the publisher MHVillage, Inc.
Copyright Notice
Copyright ©2022 MHVillage, Inc. All rights reserved. Reproduction of MHInsider content, MHI or other contributor content, in part or in whole, is prohibited without written authorization from MHVillage, Inc.
MHInsider™ is published by: Patrick Revere is associate vice president of MHVillage and publisher for the MHInsider magazine and blog for industry professionals. His background is in print news, language, and communication.
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Happenings
Indu stry
HAPPENINGS
Transactions California Builders Opens Plant in W.V.
ed the addition of approximately 1,100 homes to its Fannie Mae credit facility, through Wells Fargo Bank,
Omnis Building Technologies of California will build
for approximately $25.6 million. Proceeds will be
a $40 million, 150,000-square-foot manufacturing
used to invest in additional acquisitions, expansions,
facility in Bluefield, W.V. The plant will create as
and rental homes further enhancing the company’s
many as 300 jobs and will manufacture building
ability to increase shareholder value and provide
materials for residential construction. The company
quality affordable housing. “We are proud of the
makes energy-efficient, pre-engineered concrete
groundbreaking work we have done to facilitate the
insulated building units (CIBUs) that are shipped
acceptance and financing of rental homes in man-
then assembled on-site to make pre-designed homes.
ufactured housing communities,” Samuel A. Landy, the UMH president and CEO, said. “For over 10 years,
Idaho City Buys Manufactured Home Community
we have believed that a manufactured home in a land-lease community is one dwelling unit equivalent
The Boise City Council voted 5-1 to approve the
or better than any apartment and deserving of the
purchase of Shoshone Park manufactured home
same financing received by apartments. As of today,
community with 24 homesites for $3.25 million. City
Fannie Mae has recognized this fact. We expect to be
officials said the property has been purchased to
able to refinance additional communities and include
maintain it as local affordable housing. The transac-
rental homes as collateral.”
tion can be finalized after 45-day due diligence and 90-day waiting periods.
UMH Properties Gains Added Financing for Rental Homes UMH Properties, Inc. in March successfully complet6 | MAY / JUNE 2022 EDITION
Housing Innovation Centers Receive DOE Funding The U.S. Department of Energy awarded $32 million for more than 30 building projects to improve technologies in affordable housing. DOE recipients include the
Fraunhofer USA Center for Manufacturing Innovation
community residents, pooled together more than
($4.9 million); Home Innovation Research Labs ($4.5
$80,000 to help him out. “I am flabbergasted,” Moore
million); National Renewable Energy Laboratory ($4.4
told local media. “It’s just like winning the lottery.”
million); Oak Ridge National Laboratory ($5 million); Rocky Mountain Institute ($4.4 million); Syracuse University ($5 million); and the University of Central Florida Board of Trustees ($3.6 million).
Personnel Green Courte Partners Promote Managing Directors, Hires CFO Green Courte Partners, LLC, a private equity real
Indiana Community Latest in UMH Portfolio
estate investment firm focused on building indus-
UMH Properties has added T win Pines in
try-leading companies within niche real estate sectors,
Goshen, Ind., to its growing list of communities.
has promoted Jon S. Pollan to managing director
Healthcare, education, advanced manufacturing,
of acquisitions and Josh D. Reichert to managing
and business services drive the regional economy,
director of portfolio management. Pollan joined Green
and with that growth UMH is intent on providing
Courte in 2013 as an associate focusing on acquisitions
the needed quality affordable housing in Goshen.
and asset management. He was promoted to senior
Residents will get sought-after home upgrades such
associate in 2015 and to vice president in 2018. As a
as real wood cabinetry, spa-like master bathrooms,
managing director, he will be responsible for sourcing
and open-concept floor designs.
and leading new acquisitions for Green Courte’s near-airport parking company, The Parking Spot,
Industry Giving GoFundMe Provides New Home for Fire Victim
and its land-lease community platform Windward Communities. Reichert joined Green Courte in 2018 as
Boston resident Bill Moore has been gifted a new
a senior strategy associate in portfolio management.
home following a devastating fire that cost him
He was promoted to vice president in 2020, and as
his last residence. Hundreds of people, including
a managing director, he will continue to identify » MHINSIDER.COM | 7
Happenings
and evaluate strategic initiatives and value-add
down Mr. Close’s party affiliation. “Party affiliation
opportunities in each of Green Courte’s operating
is not important to me,” Close told the Jewish Journal
businesses, oversee portfolio investment valuations,
in 2015. “It’s issues that are important to me. And I’ve
and manage asset dispositions. The firm also hired
never been involved in political parties.” He was born
Timothy M. Holic as the chief financial officer of
and raised in Andover, Mass., attended the Wharton
Green Courte Residential Holdings, the holding
School of Business at the University of Pennsylvania
company that oversees Green Courte’s senior
and Boston University’s School of Law. He moved to
housing and land-lease community operating
Southern California with his wife in 1971 and pursued
companies. Holic previously served as the CFO of
a law career. Mr. Close worked most recently at the
The Parking Spot where he has worked since the
international law firm Cozen O’Connor. Mr. Close is
company’s inception in 1999.
survived by his wife Sally, a son, Matthew Close, and his wife Tristan, a daughter, Abby Emdur, and her
In Memoriam Sherman Oaks Housing Advocate Passes Away Richard Close, 77, who was president of the Sherman Oaks Homeowners Association for 40 years, died in March at UCLA Ronald Reagan Medical Center. Under his leadership, the neighborhood group evolved into a necessary stop for candidates and officeholders. Mr. Close was unafraid to speak candidly about fair housing, neighborhood advocacy, and shortcomings in local politics. Yet, longtime friends couldn’t pin
8 | MAY / JUNE 2022 EDITION
husband Josh, and four grandsons.
Have industry news you'd like listed here? Call Magazine Publisher, Patrick Revere, at (616) 888-6994, or email at patrick@mhvillage.com
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Events
MANUFACTURED HOUSING INDUSTRY
Events
Florida Manufactured Housing
day manufactured housing professionals have the
Association Annual Convention
opportunity to tour manufacturing facilities in
Tuesday, June 21 — Wednesday, June 22
Northern Indiana, learning how homes are built and
Tampa, Fla. | Grand Hyatt Tampa Bay
sold from the factory.
FMHA welcomes back members and guests with an annual industry meeting that will help manufactured
MH FacTOURy Summit 2022
housing professionals with an update on the economy,
Tuesday, Aug. 16 — Wednesday, Aug. 17
recent legislation, COVID liability issues, and other
Northern Indiana Homebuilding Facilities
trending topics in Florida and around the country.
Elkhart, Ind. | RV/MH Hall of Fame
Attendance, exhibitor, and sponsorship opportunities
Two full days of factory tours and learning for retail-
are currently available.
ers, community owner/operators, and vendors from around the nation. Attendees will have the chance
2022 Multi-State Convention
to come together to learn about the latest trends in
Saturday, July 23 — Monday, July 25, 2022
product development, home building, management,
Orange Beach, Ala. | Perdido Beach Resort
finance, and sales.
Join the Alabama, Louisiana, and Mississippi manufactured housing associations to explore
Texas Manufactured Housing
valuable networking opportunities, attend banquets,
Association Annual Convention
educational seminars, and state-specific continuing
Sunday, Sept. 18 — Tuesday, Sept. 20
education. Attendees can explore an upscale marina
San Antonio, Texas | Marriott Rivercenter
near the resort that offers deep-sea fishing, dolphin
The annual meeting in Texas begins with a Sun-
excursions, boutique shopping, a day spa, and local
day golf event with exhibit booths opening in the
eateries. Of course, a round of golf is nearby at a
afternoon, followed by a mixer and welcome dinner.
number of signature properties. Registration, exhibit,
Monday will start with a sponsored breakfast, educa-
and sponsorship opportunities are available.
tional sessions, and a luncheon and keynote speaker to be announced. The evening includes a cocktail
RV/MH Hall of Fame Induction
reception and the Chairman’s Dinner. The event wraps
Dinner & Ceremony
up Tuesday morning with a networking breakfast and
Monday, Aug. 15
the quarterly association board meeting.
Elkhart, Ind. | RV/MH Hall of Fame and Conference Center The RV/MH Hall of Fame each year invites industry
2022 Arizona Manufactured Housing Conference Sunday, Sept. 25 — Tuesday, Sept. 27
professionals, family, and friends to celebrate the
Tucson, Ariz. | Loews Ventana Canyon
recent lineup of hall of fame inductees. The event
The event will open on Sunday afternoon with a
starts with a cocktail mixer, followed by dinner
welcome mixer, followed by a full day of business
and the induction ceremonies. The hall in Elkhart
with industry exhibitors, professional seminars
details the careers of hundreds of RV and MH pro-
and presentations, and networking with colleagues.
fessionals, and includes a library, event center, and
The association will hold a golf fundraiser on
museums for each of the industries. On the following
the final day of the event.
10 | MAY / JUNE 2022 EDITION
H
High demand for affordable homes nationwide
“The supply chain has been a nightmare and there
coupled with labor challenges and supply chain
are still challenges to come, but business is strong
disruptions have created longer-than-desired back-
when you look at orders,” he said.
logs. However, builders continue to produce homes
The panel members agreed labor, though recovering
at an increasing rate, and find ways to simplify
from the pandemic, will continue to be a challenge.
the process for buyers.
Good labor is hard to find and harder to keep.
Representatives from nine manufactured home
“We’re focusing on meeting our challenges,” Cavco
builders met onstage at the IP Resort Spa in Biloxi,
Vice President of Sales Eric Coulter said. “Even if we
Miss., in late March. It was the introductory discus-
built every home possible, we couldn’t transport
sion at The Biloxi Manufactured Housing Expo and
them, we couldn’t get them set.”
addressed many of the industry’s primary concerns.
Panel moderator Chris Nicely, president of Manu-
Clayton Operations Manager Rick Boyd said even
facturedHomes.com, asked how the manufactured
with added facilities and beefed up workforces, its
housing industry could make itself a more alluring
homebuilding sites remain at capacity.
destination for trade labor, and workers in general.
“We’re up 364 hours across all of our plants,” Boyd
The panel talked about working with trade schools,
said. Adding capacity, automating, and simplifying
tech schools, and providing younger students a sneak
the construction process have all paid off in recent
peek at industry opportunities, building better part-
years to achieve that level of productivity.
nerships with local organizations.
However, a shortage of home insulation, for in-
“If 30% of high school students are going to college,
stance, can quickly eat up gains in daily production.
what are the other 70% doing?” Kyle Bennett of Kabco
“But nobody is going to build a new OSB plant, no one is going to build a new insulation plant,” Boyd said. “Those are $1 billion investments.”
Builders asked. Nicely asked what it would take get the industry over the hump of 10% homestarts. “If you had the ability to produce homes for single
‘A Lot Less of Drawing on Napkins’ Brent Cappaert of Cappaert Manufactured Housing
family rental, that would help get our product up to 15% or whatever the goal is,” Bennett said. MHV
said the industry hasn’t seen this level of need, and elongated wait times, since the 1970s. In other words, home building continues to pick up, but demand for
Chris Nicely, left, of ManufacturedHomes.com, moderates a session in Biloxi with representatives from the nation's top factory home builders.
new affordable homes is outpacing the market. “You can’t mill what you don’t have,” Cappaert said. “I had to shut down a couple of weeks ago because I couldn’t get windows in. I pretty much have my labor situation worked out, so for us it’s all supply chain.” Builders offer fewer f loorplans as one road toward efficiency. “We’re going to build what we’re good at, and we’re going to do it over and over again, and do a lot less of drawing on napkins,” Franklin Homes Sales Manager Blake Jackson said. MHINSIDER.COM | 11
Events
Builders Detail Industry Challenges During Biloxi Expo
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HEARD
Spring was a busy season for manufactured hous-
of moments from recent shows, and encourages
ing professionals, attending trade shows in Biloxi,
industry newcomers and veterans alike to scan the
Miss., Orlando, Fla., and Scottsdale, Ariz., among
landscape for learning and business development
other locales. The enthusiasm for meeting in person,
opportunities that can help grow your business and
exhibiting, presenting, and networking was clear.
mature the industry as a whole.
MHInsider is pleased to bring to its readers a selection Manufactured housing industry lenders from across the country talk on stage with Paul Barretto, of LearnMH, (at left) during the Biloxi Expo about developments in housing and finance in the last two years. Christine Murphy, from Tammac, discussed lending solutions for a variety of factory-built home types, from HUD code to two story, fourplexes, ADUs, and tiny homes. Credit Human's Barry Noffsinger detailed the lender’s evolution into site development. Paula Reeves, of CIS said “There are no barriers... Whatever needs we (as an industry) have, we’re going to fill those needs.”
Jackson Keene and Justin DiLauro, of Braun Consulting, came from Las Vegas to mix it up during a networking event in Biloxi. MHINSIDER.COM | 13
Events
S
SEEN
Events Members of the new professional development group, Women Advancing Manufactured Housing, sold bracelets in Biloxi to promote the organization and raise money for future offerings.
Congress and Expo attendees talk shop during a mixer in the exhibit hall.
Champion Homes welcomed guests for a peek at new product during the MHI event in Orlando. Champion showed a pair of homes, and Clayton showed a third. (Orlando photos courtesy of MHI) 14 | MAY / JUNE 2022 EDITION
Events The Lument manufactured housing team hosted an afternoon "Speakeasy Soiree" with 1920s jazz in an outdoor area at Rosen Shingle Creek resort.
Attendees at the Manufactured Housing Communities of Arizona annual meeting in Scottsdale, Ariz., listen in on a presentation by event sponsors at the We-KoPa casino and resort.
Representatives from Rent Butter work with prospects and clients at their display booth on the exhibit floor at the We-Ko-Pa casino and resort. MHINSIDER.COM | 15
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Economy
GROWTH DURING TROUBLED TIMES ‘No one expects that bringing about a soft landing will be straightforward’ by Patrick Revere
T
The phrase “tenuous at best” is one I often lob
Cynicism is easy. Powell said Fed officials landed
at my kids when they’re endeavoring in activities
safely in 1965, 1984, and 1994, so there is plenty of
that lead to questionable outcomes. Economic
information to operate on, but acquiesced in noting “I
conditions in the U.S., and indeed globally, seem to
hasten to add that no one expects that bringing about
be in that phase right now.
a soft landing will
What could go wrong? Plenty, in fact.
be straightforward
The Federal Reserve at least twice, if not three
i n t h e c u r r e nt
times since printing, has raised its benchmark rate
c ont ex t — ver y
from zero or near zero in the era of “the Coronavirus
little is straight-
Economy.” The general easing — that is a reduction
for wa rd i n t he
in the volume the Fed puts into the bond market —
current context.” »
several months ago began the slow-burn fight against inflation, and analysts now anticipate added increases of the benchmark rate to the tune of a quarter or half point each as many as seven more times through 2022. Fed Chairman Jerome Powell said the board will use all of its tools to work toward a soft landing, a difficult-to-achieve mix of levers that can reduce inflation without bringing on recession.
Buyers simply want the change they want, whether it’s downsizing or upsizing, buying the first home, buying a second home, moving to rural areas or out of state, moving because work at home allows for it, moving for more amenable housing markets, or just moving to move.
MHINSIDER.COM | 17
Economy
First Trust Advisors Chief Economist Brian
continue to be the number one factor holding back
Wesbury, as noted on the MHInsider blog in March
sales, though activity remains at a strong pace because
and in a newsletter to subscriber said the more
of millennials finally entering the housing market in
direct route to economic stability would be to
force, as well as the massive internal migration in the
raise the rate to 2% immediately.
U.S. originally sparked by the pandemic.
“If you’re a hawk, the attraction is obvious: the
Demand is so strong, and inventories are so thin,
Fed is finally on the ball and more likely to get in-
that the National Association of Realtors reports that
flation under control. But we also think a dramatic
84% of existing homes sold in February were on the
move in policy should appeal to doves. Even the
market for 30 days or fewer.
most dovish policymaker at the Fed is forecasting
Buyers simply want the change they want, whether
a short-term interest rate of around 2% in late 2023
it’s downsizing or upsizing, buying the first home,
and late 2024,” Wesbury said, citing the Fed’s dot
buying a second home, moving to rural areas or
plot released that week. “Getting to 2% more quick-
out of state, moving because work at home allows
ly might open the door to staying there (or above)
for it, moving for more amenable housing markets,
for a shorter amount of time.”
or just moving to move. The surplus of demand paired with a lack of supply
Housing Growth Slows, Remains Strong With inflation, labor shortages, and supply chain disruptions from not only the Russian invasion of
pushed up home prices nationwide by nearly 19% last year. Estimates of growth in ‘22 range from 2% to 14%. Tenuous at best.
Ukraine but also a renewed set of lockdowns in Chi-
However, even though the most pessimistic
na, the biggest problem for builders continues to be
outlook sees less of a rush in ‘22-23, it is still calling
getting homes up fast enough. Inventory shortages
for additional growth. While pricing still benefits the seller, the environment is beginning to change with mortgage rates rising consistently so far in 2022, impacting affordability. Homes sales this year should be closer to listing prices than any time in the last 18 months. More builders are turning to the middle market, where the lack of inventory is the worst and opportunities are growing due to unmet demand. Growth in affordable housing, in particular, is a must, a mandate, a moral obligation, and a near certainty in the marketplace. The big question is how builders boost their productivity to overcome the hurdles that are holding
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18 | MAY / JUNE 2022 EDITION
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Economy
Supply Chain Woes Just Got Stormier by Kevan Enger
20 | MAY / JUNE 2022 EDITION
Economy
T
The perfect storm of supply chain woes. That’s what
has transpired over the last year and a half. COVID-era supply chain bottlenecks, ships blocking
Longer Lead Times Industries across the board are experiencing supply chain backlogs and longer lead times.
canals or waiting out at sea to unload, historic labor
Even before the recent developments in Eastern
shortages, a severe lack of raw materials, skyrocketing
Europe, backlogs were impeding the industry’s ability
fuel and materials prices, and most recently, a war,
to meet demand.
have disrupted the supply chain landscape at every level and from every angle.
According to a January report by the Texas Real Estate Research Center, manufactured housing is
If I had gone to see a movie with that storyline, I
seeing supply chain delays with delivery times esti-
likely would have commented to my wife that it was
mated at 40 weeks. That’s just over nine months, and
unrealistic — that the writers had gone overboard.
we’ve even heard of wait times of up to 12 months.
This is not a movie and the plot just thickened with widespread economic implications. One of the questions those of us in the manufactured housing industry have is how will the supply
The recent developments in Ukraine could cause further lags as production and sourcing of materials from the region are either halted or blocked. Despite the challenges, there are bright spots.
chain storm affect the mobile home park asset class?
One such silver lining is that the fading
The impact is and will continue to be broad and
pandemic is opening the doorway for more
at every level with longer lead times, higher prices,
workers to head back to work. »
and reduced revenue. MHINSIDER.COM | 21
In February of this year, total
Home production increased in
nonfarm payroll employment
the first quarter, per the latest
rose by 678,000, according to the
Texas survey.
U.S. Bureau of Labor Statistics.
Mea nwh i le,
Reduced Revenue No mobile home park owner or investor wants an empty lot.
shipment s
An empty lot means less rental
April followed with 428,000 new
increased 16.2% and 14.7% in Feb-
income and an artificially low
jobs, and the unemployment rate
ruary and March year-over-year,
occupancy metric. This, despite
dropped to 3.6%.
per the most recent data.
the strong demand, and rising
Led by gains in leisure and hos-
While the industry is efficient
pitality, professional and business
and the industry has managed to
occupancy and rent collections. The delay in deliveries and
services, health care, and
supply chain bottlenecks
construction, job growth
restrict new owners from
was broad and diverse.
efficiently executing their
After little change in the previous month, the construction sector added 60,000 jobs in February. Month-over-month, about 3/4 of the gains took place in specialty trade contractors, with jumps in both the residential (+24,000) and non re sidentia l
According to the latest U.S. Census Bureau numbers, the average sales price of new manufactured homes jumped approximately 36.5% year-over-year, as of December 2021.
(+20,000) sectors.
business plan to bring in new homes, make improvements, attract higher caliber clients, and add value at the originally projected rate. Existing owners also are hampered in making upgrades, bringing in new tenants, and improving the overall quality of
Construction employ-
the community.
ment is now only slightly below
ramp up production and increase
And delays in home deliveries
its February 2020 level.
shipments, there is only so much
aren’t the only ramification of the
it can do if raw materials are un-
supply chain snarls.
Manufacturing alone added 55,000 jobs in April. In the manufactured housing
available, labor is tight, and there are delays in the pipeline.
Inflation is at a 40-year high as rising prices in everything
sector, companies were able to
The longer lead times are
from food and cars to gas and
grow their payrolls and increase
and will continue to have a
construction materials are im-
clocked hours. As a result, the
trickle-down effect. For mo-
pacted. Manufactured homes, of
more present, healthier, and more
bile home park owners, the
course, are not immune from the
productive workforce tackled the
extended wait will mean delays in
price hikes. And no matter where
backlog to continue to move the
infilling vacant lots and bringing
price hikes occur, it has a negative
industry forward.
in new residents.
impact on the monthly revenue for each household.
22 | MAY / JUNE 2022 EDITION
The increasing price of gas, steel,
classes, is that rising prices and
Kevan Enger is a part-
labor, lumber, and everything
supply chain delays are hitting all
ner and manufactured
in between are all contributing
property types.
housing director for
factors to the home price increase.
While I don’t expect reduced cap
Capstone M H. He
Steel mill products, for example,
rates to be a concern for investors
specializes in helping
were up 113% year-over-year in
in the short term, they could be
mobile and manufactured home park
January, according to Construc-
on the horizon.
property owners across the country
tion Dive, a leading news site on construction news and trends.
For owners, now is the time to
successfully position, market, and
take a hard look at the impact of
sell their properties to maximize their
Per the most recent Producer
this particular storm and consider
returns. Capstone has seven offices
Price Index, softwood lumber
if you are prepared and willing to
in five states throughout Florida, the
experienced a 22.7% year-over-year
weather it or not. MHV
Southeast, Midwest, and Mid-Atlantic.
in March of this year. Higher prices for raw materials translate to higher costs. Higher costs mean higher benchmarks have to be reached to achieve favorable returns. With mobile home park prices already at historic highs, will cap
Discover the Credit Human difference
rates be affected? What can sellers
Where we’re committed to:
and investors expect?
Customer needs
Cap Rates
Our purpose is to improve the lives of the people we serve.
Mobile home parks undoubtedly benefit from the exceptionally high need and demand for affordable housing, restricted market entry and supply, and value-add
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However, longer lead times, delayed revenues, and higher prices will have an impact in the short term. Tempering that impact, at
Federally Insured by NCUA
least as it compares to other asset MHINSIDER.COM | 23
Land Use
How Land Becomes Home: The Process of Community Development in Dollars by Don Westphal
All Images Courtesy of Don Westphal
T
Tracking in detail the rise in value of a manufactured
Local site plan approval: Detailed engineering
home community from raw land to a completed, filled
plans may or may not be needed at this stage in
project would be the subject of a book. This article is
the planning process depending on local and state
a condensed look at the increase in value through the
regulations. This process further defines the lot
various stages of the development process.
yield and dictates the level of improvements required for the finished project. This leads to another
The Land
increase in the value proposition.
Whether it’s zoned or not, the raw land is valued on a per-acre basis. Several factors influence its value, including location, size, topography, availability of sewer and water.
The Approval Process Zoning: Once optioned, if the property is not zoned, achieving the difficult rezoning milestone results in the next jump in value. Based on initial sketches one can determine the number of homesites that can
Engineered construction plans and Permit to
be obtained. At the completion of this phase value
construct: At this stage, the value takes another
shifts then from the value per acre to value per site.
jump. Bids can be taken from contractors and accurate construction costs calculated.
24 | MAY / JUNE 2022 EDITION
Fully occupied community: This step in the process
Construction on site: Construction, inspection, and
completes the value-added proposition that began
licensing complete the approval process and allows
with the initial purchase of the land and results in
the value to relate to actual costs; land, approvals,
the ultimate worth of the project. In past years, we
consultants, engineering, and hard construction
could gauge the value of a community by simply
costs. We now are ready to occupy homesites. At this
multiplying the monthly rent by 100 ($450 X 100 =
point in time, the value of a completed site is slightly
$45,000.00). Not so in today’s market when sites with
above the cost to construct.
fees of $450 per month are selling to major industry players in some markets for as much as $100,000.00.
Many factors influence the value at the various stages outlined above, Location, market demand, construction costs, competition, and the marketing and financing skills of the community owner or purchaser. It is hoped that this overview illustrates an exceptional opportunity for investors at each step in the
Project Fill
development of a new community. MHV
Sales and occupancy: Now the value shifts to the
Don Westphal retired after more than
value of the revenue-producing occupied sites. During
50 years since the mid 1960s when he
the initial fill-up period of two to three years, the per
designed his first Manufactured Home
lot value achieves a slow, but steady increase. From
community and RV resort as a Landscape
that stage to complete fill-up, the value increases
Architect student. He still enjoys sharing
at a faster pace reaching 145% of the cost. I am told
his experiences and the association with
that achieving $450 per month rent is essential to
long-time clients and industry friends. He can be reached
the viability of developing in today’s market. An
at Donaldcwestphal40@gmail.com.
added value in the scenerio could be the availability of additional sites, permitted or not for future expansion. These potential sites have a higher value since they will not likely require substantial additional overhead and amenity costs.
To Advertise, call:
1-877-406-0232
Reach Over 30,000 Manufactured Housing Professionals in Print and Online MHINSIDER.COM | 25
Land Use
Construction
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Land Use
MODULAR CONSTRUCTION OFFERS SOLUTION TO HOUSING PROBLEMS IN ATLANTA
I
Impact Housing, a manufacturer of homes built
with modular technology, put in its first modular home in Atlanta on March 7, in the historic Washington Park neighborhood. The home was crane dropped in place in two
hours on a Monday morning. “Modular construction provides a path to revitalization of neighborhoods like Washington Park. Impact Housing offers top-rated, quality-engineered and designed modular construction to serve communities that are frustrated by the deficit of affordable housing for working families,” Cecil Phillips, the president and CEO of Impact Housing, said. “We are committed to providing affordable housing to these markets as part of community development, as well as by selling homes to third-party owners and developers.” »
MHINSIDER.COM | 27
Land Use
Faced with a nationwide hous-
both ownership opportunities
A new or newly renovated
ing shortage, homes built with
and the price of rentals. Recent
5-bedroom home today in the
modular construction methods
development in Washington Park
area can go for $595,000, and
provide a well-priced alternative
and other west Atlanta commu-
the Washington Park home
to traditional on-site construction
nities, such as Hunter Hills and
from Impact Housing is valued
and can be built in approximately
West End, have dramatically
at about $375,000.
half the time of a site-built home.
changed and priced out much of
Modular housing units are
the historic resident base.
elements of a streamlined construction technology engineered to provide a solution to the
“As homes built decades ago begin to deteriorate, the accommodation has to be made to
History of Washington Park Housing
replace moderately priced homes with similar housing for the
housing shortage facing Atlanta
The average annual income in
neighborhood to remain intact,"
and many other large metropol-
Washington Park is $39,564, and
Phillips said. The 1,312 square-foot
itan areas. Once attached to a
nearly 70% of single-family homes
house constructed by Impact
foundation, modular homes are
are occupied by renters. Developed
Housing is designed to blend in
indistinguishable from site-built
by 20th-century Black developer
with the architectural style of the
homes. They are built with tradi-
Heman Perry, Washington Park
neighborhood and includes three
tional construction materials and
was Atlanta’s first planned Black
bedrooms and two bathrooms.
comply with local building codes.
neighborhood. Homes in the area
T he mo du la r con str uction
Working families, like those
include simple one- and two-story
“quicker-to-market” approach to
in Washington Park, feel the
structures and were built between
home building is a valuable tool
effects of the housing crunch in
1919 and 1958.
for addressing housing shortages, especially in neighborhoods with lower median incomes. The home will serve as a model for Atlanta-area builders and developers who can get a first-hand look at modular construction. In the coming months, Impact Housing will site three additional homes on the west side of Atlanta — in Vine City — as part of the Invest Atlanta Down-Payment Assistance Program. Learn more about modular construction and Impact Housing at www.impacthousing.global. MHV
FOR MORE INDUSTRY NEWS, VISIT OUR BLOG AT: MHINSIDER.COM 28 | MAY / JUNE 2022 EDITION
16th Annual Manufactured Home Community Financing Handbook
Wells Fargo Commercial Real Estate - Manufactured Home Communities We are excited to announce the release of our 16th annual Manufactured Home Community Financing Handbook. What started as a niche sector has quickly grown over the years into the tremendous industry we are proud to be a part of today. To learn more, please visit wellsfargo.com/mhc, where you can download the latest version of our Handbook. We look forward to connecting with many of you again very soon.
Tony Petosa 760-505-9001 tpetosa@wellsfargo.com © 2022 Wells Fargo Bank, N.A. Member FDIC. 7246187
Nick Bertino 858-336-0782 nick.bertino@wellsfargo.com
Percent Increase in Selected Craft Salaries (2018 – 2022) Craft Classification Percent Increase Power Line Worker...................................................... 24.6% Plumber............................................................................. 23.0% Rigger..................................................................................19.4% Industrial Coatings Applicator...............................17.8% Tower Crane Operator................................................17.3% Electronic Systems Technician............................. 14.4% Signal Person...................................................................12.3% Instrumentation Technician................................... 11.8% Welder: Structural/Fabricator................................ 11.2% Scaffold Builder..............................................................11.0% Mobile Crane Operator............................................. 10.8% Industrial Carpenter................................................... 10.7% Industrial Maintenance Mechanic.......................10.5% 30 | MAY / JUNE 2022 EDITION
by Tim Taylor
T
skilled craft salary survey to provide a snapshot of the current wage market for skilled craft labor. Completed surveys were received from 139 construction organizations that represent more than 330,000 employees from the construction industry across the U.S. NCCER has collected the construction wage data every two years since 2012 with the exception of 2020, which was skipped due to the challenges construction organizations faced in response to COVID-19. Average annual salaries for individual crafts represented in the survey, shown in the adjacent graphic, does not include overtime, per diem, or any other incentives offered, and is based on the assumption of a standard 40-hour work week. Results show craft classifications that experienced a 10% or greater non-inflation adjusted increase in wages between the 2018 and 2022 for which 10 or more responses to the survey were received, experienced non-inflation adjusted wage increases. There are several factors that contribute to the wage growth within the construction trades. Broader economic challenges such as supply chain challenges, rising energy prices, rising material prices, and historically high rates of inflation are certainly creating a unique economic environment. These economic conditions exacerbate the ongoing construction industry problem of shortage in the quantity and quality of skilled craft professionals across the country. Construction Industry Resources’ Construction Labor Market Analyzer currently projects a 2.6-million person shortage of skilled craft labor over the next five years. These factors and others have contributed to rising wages and increased “job hopping” across the broader economy. Combined with the “Great Resignation” as people left the workforce over the last two years, many industries are facing worker shortages. Wage growth in the broader economy can make it more difficult to attract workers to the construction and manufacturing industries. However, companies should resist the temptation of viewing wages as the sole means of attracting and retaining skilled labor. Several studies over the » MHINSIDER.COM | 31
Workforce Development
National Organization Sheds Light on Wages, Incentives in Trades
The National Center for Construction Education and
Research recently completed its 2022 construction
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for craft workers to relocate to different geographic
motivator for young people in construction and
regions to “follow the jobs” as was done in the past.
other industries. Research performed by the National
Over the years the staff, industry partners, and
Center for Construction Education and Research in
instructors associated with NCCER craft certifica-
conjunction with the Construction Industry Institute,
tion programs have interacted with thousands of
Ironworkers/Impact, and the Construction Users
students in training programs across the country.
Roundtable found that while wage is important,
The feedback provided by these students aligns with
young people were more motivated by careers that
the previously mentioned research efforts. And the
provided a sense of accomplishment in their work and
students indicate that they value companies that
the ability to give back to their communities. This is
value them by caring about them individually and
something the construction industry has been doing
investing in their future to grow their skills and career.
for thousands of years!
Responding to this type of motivation can allow orga-
Additional research found that a significant segment
nizations within the manufactured housing industry
of skilled craft professionals were more interested in
to compete for skilled workers in areas other than
jobs that allowed them to stay in one geographic
just paying a higher wage. MHV
region rather that higher wages. One factor driving
Timothy R.B. Taylor, P.E., Ph.D., is the di-
this trend was the rise of dual income households
rector of research for the National Center for
among skilled craft professionals. In 1970, approx-
Construction Education and Research (NCCER)
imately 30% of construction craft households were
where he is designing and implementing a
dual income. By 2010, more than 80% of construction
research program portfolio to provide action-
craft households were dual income. This growth in
able solutions to the skilled craft shortage and
dual income households makes it more challenging
improve the lives of construction craft professionals.
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Workforce Development
years have found that wage alone is not the highest
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Primary Behaviors Of Great Housing Consultants
D
by Ken Corbin
During my career I’ve had the pleasure of working
“Best Of The Best” all have firms that work with
with and training over 2,000 housing professionals
their customers. It can be time consuming, but
in our industry. With that experience, I was able to
you’ll increase your sales dramatically if you
develop traits of the “Best Of The Best”.
(and your customer) have patience.
Here are some of the characteristics they all seem
to have in common:
Strong Work Ethic Do you have a systematic program every day when
Empathy Simply put, empathy is the ability to put yourself in the shoes of your customer. People buy from people they trust. I specifically recall one consultant telling me how she helps customers solve their problems by showing them how she’s helped past customers with the same issues. Think about this for a moment. Every customer who
you come to the office? In talking with housing consultants who consistently sell 100+ homes per year, they all have a strategy in place to start their day. Across the board, here’s what these top professionals do: 1. Arrive at the office a minimum of 45 minutes early to avoid distractions. (Many come in an hour or more before opening.)
visits your community or sales center has a problem.
2. Prepare for the day by reviewing all the day’s
It’s too big, too small, too expensive, they’re getting
activities in their CRM including appointments,
married, divorced, or having more children. Of course,
follow-up, quotes, closings, etc.
many of them also have credit issues. So, before trying to sell them a home, focus on building trust, comfort, and relationships. It will make working with your customer that much easier!
3. Respond to all social media and e-mails from the previous evening. 4. Post, or schedule posts for, all new social media pictures and video. »
By the way, are you working with a reputable credit repair company? Across the nation, the MHINSIDER.COM | 35
Workforce Development
Customer Engagement
So, here’s the bottom line on prospecting and
This is not just spending more time with customers,
customer engagement. If you’re not spending 40%
although the top 10% of housing consultants spend
of your time on this critical area, you’ll never reach
an average of three hours MORE per day than their
your full potential.
counterparts prospecting with potential customers. Also, those top 10% are working with fewer customers! This comes with identifying your real “Hot & Warm” prospects and focusing on that group. They’re also using everything they can to differentiate themselves from the competition. This includes handwritten thank you notes, video e-mail, and text messaging. Here’s also something all these top-tier professionals
Greeting Your Customer One of my favorite sayings is, “Don’t become another me-too housing consultant.” When I first visit almost every retail sales center or community, I hear the salesperson saying the same things: “W hat are you looking for, a single w ide or doublewide?” “How many bedrooms and baths?”
are doing with e-mail: they use what I call the Go51
“How soon are you looking to move?
plan. It’s quite simple. Every e-mail you send should
“Do you have land?”
have no more than five sentences and only one topic.
You’ll notice that every one of these type questions
So, if you have a customer who inquires about three
are called closed probes. They will bring a response
homes, send three separate e-mails.
from your customer that is only one word or sentence.
By the way, short video e-mail has an open
Learn to use “Open Probes” as they will have your
rate of 91% while regular emails attract only 17%
prospective homeowner give you a response that is
of your prospects.
generally two or more sentences in length. It also lets them know you have an interest in helping them. Earlier I talked about empathy and customer engagement. Yes, it’s true you only have a few sec-
A non-profit housing organization
onds for that customer to decide if they like you or not … so take advantage of those few seconds and engage your prospect. Here’s the open probe that I recommend everyone use, both retail sales centers and communities, when first greeting your customer: “Hi, I’m Ken Corbin and welcome to XYZ Homes. So what are you trying to accomplish?” This will cause them to begin telling you not only why they’re here but what they’re wanting. IMPORTANT: Have a clipboard available and begin writing down everything they say.
We buy properties. Talk to us about selling your community today!
Next time we’ll share even more ideas from the “Best Of The Best.” MHV Industry consultant Ken Corbin has worked with over 800 communities, retailers, associations, and manufactur-
etaylor@augustacommunities.org (909) 981-0192 augustacommunities.org 36 | MAY / JUNE 2022 EDITION
ers. He’s also co-facilitator of the MH20 Group. For more information, e-mail: ken@callkencorbin.com.
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INDUSTRY TRENDS AND STATISTICS MHVillage and Datacomp combined efforts with industry partners MHI and Statistical Surveys to provide manufactured housing professionals updated annual trends and statistics from across the marketplace.
COMPETITIVE ADVANTAGE
COMMUNITY LIVING
MARKET SEGMENT
Site-Built Home $139.20 average price per square foot
43,000+ Communities
22 Million people live in manufactured homes
4.3 Million estimated home sites
9% of new single-family home starts
27% of new homes are placed in communities
78% of new manufactured homes titled as personal property (chattel)
Manufactured Home $72.46 average price per square foot Data courtesy of
Sources: 2019 American Community Survey 1-Year Estimates, U.S. Census Bureau’s Manufactured Housing Survey, MHI 2018 Consumer Research,Datacomp/JLT, and other proprietary sources. Without the prior written consent of MHI, reproduction, distribution, transmission, caching or other commercialization of MHI copyrighted or trademarked material is strictly prohibited. Used with permission.
COMMUNITIES BY YEAR BUILT
COMMUNITIES BY SIZE NUMBER OF HOMESITES
Pre-1950 %
1950-1970 %
.08
1971-1990 %
17
16
1-24 ..............16.0% 25-99........... 29.0% 100-299........16.0%
1991-2010 %
6
2010Present %
.03
300-499 ........ 3.0% 500-999 .........1.0% 1,000+ ........... 0.2%
61% UNKNOWN
Data sources: Community Attributes System (CAS). ©2022 Datacomp Appraisal Systems, Inc. May not be reproduced, distributed or re-sold without prior written permission. Prepared by Datacomp, Grand Rapids, Michigan 49525 • For additional information, call 800.365.1415 or www.datacompusa.com • All data is provided on a best efforts basis. No guarantee of completeness, accuracy or suitability for any particular purpose is expressed or implied. REV: 040822
Unknown ... 35.0%
MANUFACTURED HOUSING SHIPMENTS
MANUFACTURED HOUSING PRODUCTION
105,772
Homes Produced in 2021
100,000 80,000 60,000 40,000
33
U.S. Corporations
20,000 0 2017
2016
141
Single
Manufacturing Plants
2018
Multi
2019
2020
Total Data courtesy of
Source: Manufactured Housing Activity Industry Production, Shipments and Trend Report. ©Manufactured Housing Institute. Without the prior written consent of MHI, reproduction, distribution, transmission, caching or other commercialization of MHI copyrighted or trademarked material is strictly prohibited. Used with permission.
TOP MANUFACTURERS BY MARKET SHARE** Manufacturer 2021 MS Clayton HMS INC 47.94% Skyline Champion 17.36% Cavco Inudstries 11.98% Legacy Homes 2.27% American Home Star 2.34% Hamilton Homebuilders 2.71% Jessup Housing 1.74% Adeventure Homes 1.57% Elliott MH MFG 1.93% Commodore Corp 1.13%
2020 MS 50.22% 16.11% 12.74% 2.78% 2.44% 2.02% 1.58% 1.48% 1.45% 0.92%
TOP 10 RETAIL MARKETS BY BTA*
Growth -4.54% 7.76% -5.97% -18.35% -4.10% 34.16% 10.13% 6.08% 33.10% 22.83%
Market Growth Lake Charles, La..................... 129.84% Chicago, Il ................................ 87.38% Jacksonville, Fla. ...................... 71.91% Atlanta, Ga. .............................. 60.27% Tucson, AZ................................30.44% Greenville-Spartanburg, SC .... 27.56% Monroe, La................................23.00% Kingsport-Johnson City, Tenn. Bristol, Tenn.-Va.......................22.18% Detroit, Mich............................. 21.61% Columbia, SC ............................19.95% *Basic Trade Area
Clayton Homes 47.94%
Skyline-Champion 17.36%
Cavco Industries 11.98%
Other **Based on official government records as compiled by Statistical Surveys Inc. The current data’s time period unit totals and Market Share will change as historical data is updated from the states. Any use of Statistical Surveys data without written permission is prohibited. ©Statistical Surveys Inc. Used with permission.
Data courtesy of
Industry Trends
MANUFACTURED HOME COMMUNITY RENT AND OCCUPANCY JLT MARKET REPORT NATIONAL AVERAGES (MAY 2022)
SITE RENT
OCCUPANCY RATE
$573 AGES 55+: $643
93% AGES 55+: 97%
ALL AGES:
MONTHLY AVERAGE
ALL AGES:
MONTHLY AVERAGE
ANNUAL SITE RENT INCREASE
ANNUAL OCCUPANCY INCREASE
ALL AGES: 4.4%
ALL AGES: 0.8%
AGES 55+:
3.9%
AGES 55+: 0.4%
MARKETS WITH HIGHEST RENT
MARKETS WITH HIGHEST OCCUPANCY
Orange County, Calif. ..................................$1,642 Santa Clara County, Calif. ..........................$1,557 Ventura County, Calif. ............................... $1,306
Santa Clara County, Calif. ................. 100% (+0.1%) Denver/Aurora/Boulder CSA, Colo. .... 100% (+0.3%) Orange County, Calif. ........................100% (+0.2%)
55+
55+
Santa Cruz County, Calif. ...........................$2,417 Santa Clara County, Calif. ......................... $1,309 Orange County, Calif. ..................................$1,220
San Diego County, Calif. ....................100% (+0.2%) Orange County, Calif. .........................100% (+0.8%) Santa Barbara, Calif............................100% (+0.2%)
MARKETS WITH LOWEST RENT
MARKETS WITH LOWEST OCCUPANCY
Savannah, Georgia (MSA).............................. $247 Lynchburg, Va. (MSA) .................................... $250 Hendry/Okeechobee Counties, Fla. .............$251
Genesee County, Mich. ........................ 71% (+2.1%) Bay/Midland/Saginaw, Mich. ..............77% (+2.6%) Lee County, Fla. .....................................78% (+2.6%)
55+
55+
Lynchburg, Va. (MSA) ..................................... $197 Gary/Michigan City, Ind. (MSA)....................$201 Cincinnati, Ohio (MSA) ................................. $254
Monroe County, Mich. ....................... 76% (+13.2%) Bay/Midland/Saginaw, Mich. .............. 79% (+1.6%) Northern Michigan ..............................77% (+2.5%)
ALL AGES
ALL AGES
ALL AGES
ALL AGES
MARKETS WITH GREATEST INCREASE IN OCCUPANCY ALL AGES
Manatee County, Fla.......................................... 14% Genesee County, Mich. ...................................11.1% Berrien County, Mich. ......................................4.7%
55+ Source: JLT Market Reports. Detailed research on investment grade communities in major manufactured housing markets nationwide, including the latest rent trends, occupancy statistics and other valuable management insights. ©Datacomp. Reproduction in any form is prohibited without written consent. Used with permission.
Monroe County, Mich. ....................................13.2% Greenville, S.C. (MSA) ......................................7.5% Gary/Michigan City, Ind. (MSA)......................4.7%
89,809.19
$
+6.39%
2021 NATIONAL AVERAGE PRE-OWNED HOME SELLING PRICE
61,085.05 +25.99%
$
MHVILLAGE.COM LISTING DATA (APRIL 2021-MAY 2022)
TOP 5 MARKETS WITH AVERAGE NEW HOME LISTING PRICE GROWTH ABOVE NATIONAL AVERAGE Growth
Above Average
Tampa-St. Petersburg-Clearwater, Fla. (MSA) 25.6%
19.21%
Minneapolis-St. Paul, Minn.-Wis. (MSA)
24.8%
18.41%
Dallas-Fort Worth, Texas (CMSA)
20.5%
13.66%
Oklahoma City, Okla. (MSA)
17.6%
11.21%
Las Vegas, Nev.-Ariz. (MSA)
13.1%
6.71%
TOP 5 MARKETS WITH AVERAGE PRE-OWNED HOME LISTING PRICE GROWTH ABOVE NATIONAL AVERAGE Growth
Above Average
Philadelphia-Wilmington-Atlantic City
53.2%
27.21%
Indianapolis, Ind. (MSA)
42.7%
16.71%
Phoenix-Mesa, Ariz. (MSA)
28.4%
2.41%
Kalamazoo-Battle Creek, Mich. (MSA)
27.3%
1.31%
Wichita, Kan. (MSA)
27.3%
1.31%
MARKETS WITH LOWEST DAYS ON MARKET
2
5
11
Savannah, Ga. (MSA)
Bellingham, Wash. (MSA)
Lincoln, Neb. (MSA)
Greensboro - Winston-Salem - High Point N...................29 Dallas-Fort Worth, Texas (CMSA).....................................40 Charleston-North Charleston S.C. (MSA).......................43
16 28 Bloomington, Ind. Oklahoma City, (MSA) Okla. (MSA)
Fort Wayne, Ind. (MSA)......................................................44 Davenport-Moline-Rock Island Iowa-Ill. (MSA) .............44
Source: Based on new and pre-owned manufactured homes listed on MHVillage.com from April 2021 to May 2022. ©MHVillage. Reproduction in any form is prohibited without written consent. Used with permission.
Data courtesy of
MHINSIDER.COM | 41
Industry Trends
2021 NATIONAL AVERAGE NEW HOME SELLING PRICE
Industry Trends
STATE-BY-STATE HOME SALES HEAT MAP
HOMES SOLD • 2021 0
500
42 | MAY / JUNE 2022 EDITION
1,000
3000
7,000
17,000
Industry Trends
Average Sales (in Millions) $500 $400 $300 $200 $100 $0
CA
FL
MI
AZ
TX
Data Courtesy of: Source: Based on new and pre-owned manufactured homes listed on MHVillage.com from April 2021 to May 2022. ©MHVillage. Reproduction in any form is prohibited without written consent. Used with permission.
MHINSIDER.COM | 43
Industry Trends
THE CHALLENGES OF RISING HOME VALUES How Manufactured Home Appraisals Provide Insights in a Red-Hot Market by Mark Johnson
44 | MAY / JUNE 2022 EDITION
Industry Trends Community
E
Even casual observers of the U.S. housing market
during the last two years have expressed wonder over the rush of movement in all aspects – from consumer preference changes to the increasing pace of sales activity – and lost on no one is the rapidly increasing cost of homes in most markets. Housing stock has been low for years, particularly in the mid- and lower segments of the market. Prices were rising steadily before the pandemic, and with a rush of associated locational and lifestyle changes in combination with near-zero interest rates, material shortages, price increases, inventory constraints, and creeping inflation, the top line result is red hot home selling prices increasing by 18% across the market as a whole in 2021 according to the S&P CoreLogic Case-Shiller Index. So, in a sizzling housing market, how is a seller certain to know they’re being fairly compensated for their asset? Likewise, how does a lender move forward confidently knowing their investment in a transaction is sound? How can the seller, buyer, and lender increase the likelihood of a successful transaction rather than facing the potential of a canceled deal? As a nationwide appraiser of manufactured homes, Datacomp relies on three primary tools to help us more accurately determine a fair manufactured home valuation in a hot market: 1. Using the most recent comparables possible, even giving consideration to pending sales that are under contract. This means taking the extra time to make some additional phone calls to the community office, in-park brokers, and local real estate agents who may know of a recent or pending sale. » MHINSIDER.COM | 45
Industry Trends
2. Factoring in a sale date adjustment to reflect the
the subject property. This is the same approach used
fact that the market has been appreciating and a
in the valuation of conventional, site-built real estate,
comparable sale from even three months ago would
including manufactured homes where the land is
most likely sell for more today.
part of the transaction.
3. Placing the most weight on the most recent com-
In our 35 years of performing manufactured home
parable sale. If the market is appreciating at a high
appraisals, we have had the opportunity to utilize both
rate then home values can be changing on a weekly
valuation methodologies through multiple market
basis. Understanding that fact and placing more
cycles, depending on the individual needs of the
weight on the most recent sale helps the appraiser
client and subject property.
properly reflect the current value of the home.
While both methodologies have specific advantages and compromises, it has been our experience that an appraisal that market-based approach provides the
Regardless of the strength of the market-based approach, the ability to obtain reliable values within an acceptable timeframe and at a reasonable cost is based on the availability of comps. Everyone wants a smooth transaction with a minimum of delays and unexpected surprises.
most consistent, reliable values in volatile markets. In a rapidly depreciating market experienced by our industry several decades ago, the market-based valuation approach was relied on by lenders to avoid overfinancing homes and limiting their rate and severity of loss. The market-based approach provides the same safeguards today in a rapidly appreciating market where buyers’ enthusiasm and emotion may be outpacing value trends in their market.
The Advantages of a Market-Based Approach in Volatile Markets 1. T he market-based approach considers the specific qualities of each market in determining value.
Understanding Manufactured Home Valuation Methodologies
All housing markets are not created equal. This is true not only of the region and state, but also for the
When it comes to the appraisal of manufactured
local housing market. It’s like asking, “How much
homes for sale in communities or where land is
is a three-bedroom home in a nice neighborhood
not part of the transaction (chattel), there are two
in Ohio worth?” That’s a very difficult question to
predominant valuation methodologies in widespread
answer because there are so many variables. Location
use today. One is the cost-based approach, which
is everything, and we know that there can be vast
essentially takes what manufacturers typically charge
differences in housing values from one housing
retailers for their homes, applies a retail mark-up
market to another even within the same state, even
and then an increase or decrease to that value over
with identical homes.
time based on broad appreciation and depreciation
2. T he market approach does not reply upon
trends nationwide. This is also commonly known
assumptions about manufacturer, model,
as a “book value”, after the printed guide books for
or series.
manufactured housing values originated by orga-
Listing activity or title data alone is often insuffi-
nizations such as the National Automobile Dealers
cient because it does not always contain complete
Association or Kelley Blue Book®.
information. Title data, for example, often shows only
The second is the market-based approach for man-
the manufacturer of the home, making it impossible
ufactured housing, which is based on the actual sales
to determine the model or the series. Guessing at the
of comparable homes in the market area surrounding 46 | MAY / JUNE 2022 EDITION
relationship between the two. This is the relationship
seriously over or understated.
we would expect since both value and selling price
3. The market approach is not subject to broad appreciation/depreciation trends.
reflect market value most of the time, even under short-term variability. Historically when Datacomp
The millions of manufactured homes in this
has compared other valuation methods and mar-
country consist of thousands of combinations of
ket-based comparable appraised values to the actual
year, make, model, features and amenities. Each
sales price of the home, we noticed a much tighter
resides in a distinct market or submarket throughout
correlation between the comparable appraised value
the country. Additionally, many are located in one
and the sales price. Other valuation methodologies
of the more than 43,000 land-lease communities
tended to produce results which differed from the
nationwide, also with their own combination of
sale price more erratically and to a larger degree.
attributes and amenities that contribute to the value of that location. Is it reasonable to assume that a
5. M arket-based values accurately ref lect the marketplace.
broad approximation of depreciation and value trends
In the late 1990s, Datacomp considered cost-based
could responsively and accurately reflect the individ-
manufactured home values to be too high. We felt
ual market factors of hundreds of MSAs and CBSAs
that the high values afforded lenders little protection
throughout the country?
against loans on homes that were overpriced. Also,
4. M arket-based values tend to have a more
the high and inconsistent values created the poten-
consistent relationship to actual selling prices.
tial for over-advancing on refis. Today the opposite
When we compare manufactured home values to
market dynamics are at work, but the market-based
actual selling prices that are used in a market-based
valuation methodology continues to be the best tool
appraisal, it is apparent that there is a very consistent
for understanding the true value of a home. »
Your home for better inventory financing. When it comes to inventory financing options for the manufactured housing industry, our experience, flexibility, reliability and responsiveness is unmatched. From communities to modular homes and beyond, we’ll listen and create flexible solutions that fit your business.
866.781.2420 | northpointcf.com
NORTHPOINT COMMERCIAL FINANCE
MHINSIDER.COM | 47
Industry Trends Community
model and or the series can result in the value being
UMH PROPERTIES, INC.
A PIONEER IN MANUFACTURED HOUSING As a publicly traded REIT (NYSE:UMH), we have been providing quality affordable housing since 1968. Our portfolio provides high profit margins, recession resistant qualities, reliable income streams and the potential for long-term value appreciation. • • • •
$2.4 billion in total enterprise value 127 communities, 24,000 homesites, 1 joint venture community containing 200 homesites, 11 states Housing approximately 21,000 families 7,000 total acres, 3,500 acres in Marcellus and Utica Shale regions
UMH Awarded 2021 Manufactured Home Community Operator of the Year and 2021 Retail Sales Center of the Year by the Manufactured Housing Institute For more information, visit www.umh.reit or contact ir@umh.com
that all of your sales, including cash sales and in-house financed transactions are reported.
Regardless of the strength of the market-based
If you are a community or retailer, you can easily
approach, the ability to obtain reliable values within
submit your most recent sales comps using the MHI
an acceptable timeframe and at a reasonable cost is
Community Attributes System website at MHICAS.org.
based on the availability of comps. Everyone wants
You’ll find links in the navigation sidebar to report
a smooth transaction with a minimum of delays and
new and pre-owned home sales. They can be reported
unexpected surprises.
as individual transactions or by downloading a bulk
At Datacomp, we are fortunate to have a robust
transaction template.
database, valued data relationships, and access to the
From time to time, you may also receive a phone call
more than $3 billion in manufactured home trans-
from one of our representatives seeking recent comps
actions that pass through the advertising platform
for your community or market area. We recognize
of our corporate sibling, MHVillage. Fresh comps,
how busy everyone is, and we appreciate you taking
though, are always appreciated.
the time to assist us.
Whether the market is moving up or down, the simplest thing you can do to ensure the ability of your appraiser to deliver a fair and efficient valuation is to make sure we have recent comps.
That next comp you provide just might help make the difference on one of your future deals. MHV Mark Johnson is vice president at Datacomp Appraisal Services, a leading
As the market has continued to evolve, market
national inspection and appraisal com-
dynamics have placed increased pressure on the
pany that provides value information to
comp base to accurately reflect these rapidly changing
manufactured housing professionals.
values. Now, more than ever, it’s important to ensure
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Thank you for reading! MHINSIDER.COM | 49
Industry Trends Community
How to Ensure You Are Able to Get Reliable Valuations in an Evolving Market
Yale Realty National Team CHAD LEDY Pacific Northwest 651-334-2390 Chad@yaleadvisors.com
KEN SCHEFLER Upper Midwest 323-393-0116 Ken@yaleadvisors.com
BRIAN MCDONALD Rocky Mountains 720-636-6551 Brian@yaleadvisors.
JAMES MCCAUGHAN Midwest 305-588-5302 JMcCaughan@yaleadvisors.com
MAX HERNANDEZ Grand Canyon 415-686-8694 Max@yaleadvisors.com
DAN COOK Pacific Southwest 305-771-3211 Dan@yaleadvisors.com
DANA SMITH Southwest 303-323-5649 Dana@yaleadvisors.com
HARRISON BELL Mid-Atlantic 985-373-3472 Harrison@yaleadvisors.com
CHARLES CASTELLANO Southeast 305-978-0769 Charles@yaleadvisors.com
JAMES COOK National Director of Brokerage 386-623-4623 James@yaleadvisors.com
Land & Development
Yale Capital
CHRIS SAN JOSE President of Lending 850-443-4580 Chris@yaleadvisors.com
GREG RAMSEY Vice President of Lending 904-864-3978 Greg@yaleadvisors.com
Manufactured Home Community Lender/Broker of the Year
I N F O @YA L E A DV I S O R S . C O M |
MITCH GONZALEZ Land Sales & Development Director 734-447-6952 MGonzalez@yaleadvisors.com
yal e ad visors
Rates are Going Up. Sell or Refinance Today Your Trusted Advisors are here to guide you through these turbulent times. We’ll deliver the right strategy and execution for your unique property and circumstance.
CON TAC T U S FO R A F REE VA LUAT I O N
SOURCE: Trading Economics - Markets Summary, US-Government-Bond-10Y | MARCH 2022
YA L EADV I SO R S.CO M
|
1-877-899-9810
Research Looks at Relationship Between Zoning, Housing Supply Gap by Dennis Smith
52 | MAY / JUNE 2022 EDITION
Access
M
Manufactured housing currently makes up 9%
cluding inclement weather and fire, as they must
of single-family new home starts — a figure that
comply with the U.S. Department of Housing and
has steadily declined since its peak of 25% in 1996
Urban Development construction requirements.
according to U.S. Census data. While several factors
• Manufactured homes provide an average cost
are driving that downtrend trend, a portion is related
savings of up to 50% compared to their stick-built
to zoning regulations at the state, local, and even
counterparts, averaging $55 per square foot ex-
homeowners’ association (HOA)levels, which affect
cluding land versus $114.
the location and number of homes that can be built.
• Construction is precise and efficient thanks to
If manufactured homes were more widely ac-
technology and large-scale, factory-based work,
cepted, they could play a role in chipping away at
and onsite work is less disruptive to the neigh-
the 3.8 million-unit housing deficit, shrinking the
borhood as it’s shorter than for stick-built homes.
affordability gap, and promoting a more equitable
• T hey are environmentally friendly, as min-
housing landscape. A more inclusive approach could
imal waste remains after construction of a
make that happen.
manufactured home. • Mortgages on manufactured homes perform nearly
Overcoming Misconceptions — and Promoting Benefits — of Manufactured Homes Compelling Features of Factory-
as well as those on site-built homes, and both categories appreciate at about the same rate. However, zoning restrictions enacted by many state
built Homes Make Them a Smart
and local jurisdictions and rules applied by some
Option for Many Homebuyers:
HOAs discourage the purchase and placement of
• These dwellings are attractive, energy-efficient,
manufactured homes. »
safe, and able to stand up to natural events inMHINSIDER.COM | 53
Access
Government Support, Industry Initiatives Continue to Move the Needle
their wider adoption, helping move the category forward, by:
HUD has long been a governmental champion of
• Holding regionally focused events where man-
safe, affordable, and well-built manufactured homes.
ufacturers and those in the lending ecosystem
In 2019, the agency hosted the Innovative Housing
convene to learn more about design aesthetics
Showcase, constructing and placing factory-built
and how factory-built homes can fit into local
homes on the National Mall to highlight their features
communities, using successful examples
and amenities. States including Arizona, Arkansas,
from other areas.
California, Kentucky, New York, and Washington are
• Rethinking the way manufactured homes are sold. Placing them in developments versus on retail lots showcases how they organically fit alongside other
Manufactured homes are often restricted to designated parts of town, subject to stringent regulations including those tied to the age of the house, or banned outright. For example, standards related to design and building materials make them ineligible in certain neighborhoods, while lot-size minimums and parking-space requirements drive up land prices. Administrative processes and fees also increase cost, risk, and time to market. Moreover, persistent misconceptions about manufactured homes being unsafe, unattractive, a bad investment, and driving down surrounding property values, coupled with negative assumptions about their residents, have kept this category of housing on the fringe in many markets.
homes and neighborhood features. • E ducating appraisers on best practices when developing the appraisal of a manufactured home. • Encouraging manufacturers to design exterior elements, including roof pitches, garages, porches, and trim, that are as aesthetically pleasing as interior ones. Selecting a low profile or groundset foundation allows the structure to more closely resemble a site-built home than a pier and beam foundation, widening the appeal to more potential customers. Freddie Mac has been working to support manufactured housing through Duty to Serve, including growing the volume of manufactured home loan purchases 85% between 2018 and 2020, and expanding the types and uses of manufactured homes eligible for financing. The company conducted an analysis to better understand and quantify the effect of zoning on manufactured housing. Access the research paper by doing a web search for “Freddie Mac manufactured housing zoning research”. These and other initiatives are helping to transform
engaging in proactive approaches to promote their
the industry and highlight manufactured housing for
acceptance by relaxing or removing restrictions and
what it truly is — an affordable and attractive choice
encouraging inclusion. Since 1980, Oakland, Calif.,
for a large swath of homebuyers. MHV
has permitted manufactured homes on a permanent
Dennis Smith is an affordable lending
foundation in all residential areas. Washington state
manager in the Single-Family Client and
requires that manufactured homes titled as real
Community Engagement division with
property be treated the same as site-built structures.
Freddie Mac. He manages the affordable
Incorporating steps like these elsewhere could open
housing preservation and manufactured
the doors to homeownership for more U.S. households.
housing initiatives that support Enter-
The industry can play an important role in dispelling
prise’s underserved markets plan.
myths about manufactured homes and promoting
54 | MAY / JUNE 2022 EDITION
Community-Owned Home Condition Rating: Excellent Market Value: $67,468
Community-Owned Home Condition Rating: Fair Market Value: $41,259
Community-Owned Home Condition Rating: Good Market Value: $56,835
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 • Over 30 years of industry experience
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.
800.365.1415 | DatacompUSA.com
Technology
MANAGEAMERICA OFFERS ECOSYSTEM OF TECH SOLUTIONS ‘Maximize Time and Money, Stay Out of Trouble, Optimize Customer Experience’ by Patrick Revere
56 | MAY / JUNE 2022 EDITION
Technology
W
What has three parts but no center?
for instance, it populates that field and goes to all the
ManageAmerica’s Michael Silverman has been in
other places it needs to be, automatically.
the manufactured housing industry since 1989. The
“From that, you spawn residency documents specific
company was founded by Brooks London at about the
to a property, homesite, and home with all the specific
same time and is buoyed by his son, Brice London,
addendums for pets and such,” he said.
an attorney and entrepreneur who sees the potential growth of the company only as a matter of time, and inspired leadership.
All of those entries also are populated into documents that residents need to receive or sign. “It reduces the amount of work, and the potential
Growth, to be sure, but from where?
for an entry mistake, and it all transfers over to Do-
ManageAmerica, National Utility Billing, and Origen
cuSign,” London said. “It all becomes a part of the
– three companies that intersect and complement
resident profile. It’s a 360 view of your relationship
each other, all of which come from different places,
with that resident through the full duration.”
serve different client needs, and none of which have a designated company operating space.
The ManageAmerica offering also provides an online resident’s portal for increased transparency,
The company and its products help community
and is a valuable tool for planning and managing
owners manage properties, assets within proper-
household budgets. It allows for text pay and app
ties, and the needs of residents. The utility billing
pay options, and provides a map of nearby off-site
company snaps in to the property management
locations — such as at a big box retailer — to pay rent
service and tracks the litany of utility services with
and bills with cash or money order.
specific data on each user, in each market, under
“We now offer a third-party provider that will pay
contract with specific local providers for water,
rent for the resident. In turn, the resident pays that
electric, gas, cable, and trash services for instance.
provider a $9.99 flat fee and then repays them the
Origen, likewise, integrates to the software for
amount of the rent through the course of the month,
resident screening services.
rather than having to pay all at once or get a large
“It’s a very sophisticated system,” Brice London
penalty for being late,” London said.
said. “One of the credos we feel strongly about is ‘no
The portal flows in the next average rent increase
redundant data entry’. If you put in someone’s name,
home-by-home, and qualified rate schedules for all » MHINSIDER.COM | 57
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adjacents, or at a wooded lot, for instance. “You see any changes all set at once by category,” London said.
The Origin of Origen In 2008, London joined his father and the team at ManageAmerica. He had graduated with his law degree in 2004 and was practicing in the corporate environment for the ensuing four years. It was a time
Expanding to Utilities, Screening The original ManageAmerica software was designed
of much change in the U.S. economy, in housing, and in automated services.
for manufactured home community owners and op-
“I didn’t grow up with a family company that I might
erators, and expanded into other areas of multi-family
go to work for one day,” London said. “The company
operations. The company created National Utility
didn’t come into what it is until I was already on my
Billing to offer that service independently, without
own path… but at that time, in 2008, I was looking
the property and organizational management aspects
forward to doing something a little more entrepre-
of ManageAmerica.
neurial… It was a good time to look at options.”
“A big part of our business is utility billing,” Chris
That same year, the company picked up its third
Schwarze, director of sales and marketing, said.
part — Origen, a provider of automated loan origi-
“Submetering of utilities offers the ability for property
nation services. New regulations that arose out of
owners to track usage off the mainline to individual
consumer protection efforts, including the SAFE Act,
homesites where it can be billed more directly and
required Origen to be overhauled. The leadership at
accurately to residents.
ManageAmerica opted for a full pivot.
“Submetering has a huge impact, rather than having
The industry was consolidating, the prevalence of
water usage tied to rent,” Schwarze said. “That data
rental homes was increasing, and the responsibility
gets into our system almost immediately. It helps the
and risk for owners was on the rise.
user to identify if perhaps the meter was misread. If
“Regardless of whether you’re selling or renting,
the algorithm finds something out of whack it will
you’re always looking at a quality screening pro-
ask for a re-entry with a photo to verify.”
cess,” London said. “That’s become a really good
London said creating and updating the algorithm for utility building is a near-constant effort. It provides hourly snapshots from multiple utilities in even the
opportunity for us.” London said his path to ManageAmerica was not linear, but it’s one that suits him.
smallest of U.S. markets for the best chance of catch-
“I bring some real skills to the table, having practiced
ing potential losses quickly, including physical leaks.
law. And beyond that I feel I am very entrepreneurial
“You want to maximize your revenue but you also
and strategic, looking to serve our clients in the best
want to be compliant,” London said. “There are a
possible way. You can’t sit on your laurels, you really
lot of rules and regulations and we’re receiving rate
need to talk with your clients to make changes that
structures from thousands of providers all of the time.
will increase efficiency and maximize revenue,”
“We can take a lot of the heavy lifting off of owners,
he said. “How can we help managers working with
especially in a rapidly increasing cost environment…
residents, or regionals working with managers, or
you do not want to be behind price increases,” he
help corporate officers running the company… how
said. “If you’re not on top of it to implement at the
can they run as smoothly as possible?”
moment it happens, you very likely are going to lose that revenue. No resident wants to hear they owe money from three months ago that you forgot to bill.” Much of the information available through Man-
And the answer to the question, what has three parts and no center? ManageAmerica fits the bill, but ask Google and the best answer is the human brain. MHV
ageAmerica and its companies can be viewed on an app, available for iOS and Android.
MHINSIDER.COM | 59
Technology
variety of homesites whether on the water, water
Technology
How the FCC is Making Strides to Fight Broadband Monopolies Latest Policy Puts Power Back in Hands of Residents, Manufactured Home Owners to Benefit
M
by Joe Costello
Most news coming from the FCC these days can
providers out. This applies to residential and com-
be pessimistic. Net neutrality, censorship, and a
mercial multi-dwelling units, from shopping malls
losing battle against robocallers are the topics most
to condos to gated communities to (you guessed it)
commonly associated with the agency, so it’s not
manufactured home communities.
surprising that a rare win for consumers hasn’t exactly made the headlines.
According to Federal Communications Commission Chairwoman Jessica Rosenworcel, a third
But that’s precisely what we have, and the
of Americans currently live in “multi-tenant
impact could be transformative, especially for
buildings where there often is only one choice for
multi-tenant environments such as manufactured
a broadband provider, and no ability to shop for a
home communities.
better deal.” But that’s changing.
The Federal Communications Commission re-
What does that mean for manufactured home-
leased a Report and Order prohibiting broadband
owners? It means that communities can’t enter into
service providers from entering or enforcing
backdoor deals with a single internet provider. It
revenue-sharing agreements with owners of multi-
means broadband giants can’t sell wiring to a property
tenant environments that keep competitive
owner with the expectation that it’ll be leased back
60 | MAY / JUNE 2022 EDITION
innovation, affordability, and a healthy economy, all
with clear and easy-to-understand information about
in the name of better service.
any exclusive agreements that may already be in
Is this latest measure perfect? No policy ever is. But
place. In short, it means residents have the right to
this FCC order is an encouraging sign of progress,
choose an internet provider that works best for their
especially when you consider other moves the agency
needs and their budget, not that of their community
has made in recent years to stamp out monopolies.
manager or a telecom giant.
Now more than ever, internet access is a must-have
Gone are the days multi-tenant properties locked
for full participation in civic life, from work to school
residents in with one service provider, and to the
to accessing social services and even healthcare. The
benefit of all. Before, single service providers were
FCC’s order is long overdue, and certainly worthy of
free to increase rates or deliver slow speeds with
applause giving access to higher-speed broadband
impunity, as residents lacked the ability to do their
internet options to manufactured home residents
business elsewhere. Leasing companies could push
a better quality of life and further incentivizing
their residents toward a certain provider, with finder’s
prospective manufactured home buyers. MHV
fees being put above the resident’s best interests. And
Joe Costello is CEO of Kwikbit and
digital redlining, when internet service providers
executive chairman of Metrics Design Au-
could purposely neglect to upgrade equipment in
tomation, Arrikto, Acromove, and ELPHiC.
certain communities was rampant.
Previously, Costello led Cadence Design Systems to be the number one company
Increasing Transparency in Service Offerings
software for designing chips, taking the company from
Granted, the order stops short of outlawing the
$10 million in revenue to nearly $1 billion and making
practice entirely. It’s still possible for providers to
it one of the 10 largest software companies in the world.
corner the market if the agreement is out in the open and the building owner isn’t getting a cut of the profits. This could be by providing a bulk billing arrangement for an entire building or community. The landlord could then market the units as “free
STAINLESS STEEL FASTENERS
NATIONWIDE SHIPPING
wifi included,” as long as they disclose that this is through an exclusive contract with that provider. But even then, thanks to the FCC, tenants are not locked in—they can opt-out and choose their own internet service provider. As the market opens up and the playing field evens out, manufactured home owners will soon reap the benefits: better prices, faster speeds, and more flexibility. Researchers have long recognized
Nappanee, IN 46550
Ph: 574-773-7993 ext. 1 Fax: 574-773-2132
that economic competition correlates with improved products and services, in this case, higher internet speeds, and price reductions. As for those telecom giants, they’ll simply have
STEPS • DECKS
to step up. No company confident in their product should fear competition. Innovative wireless providers certainly don’t. The whole idea behind the free enterprise is to allow a diverse array of providers for consumers to choose from. That’s how you get
BUY DIRECT MHINSIDER.COM | 61
Technology
for their exclusive use. Now, tenants must be provided
Technology
Four Leaf Launches Video Series to Assist Community Developers
L
Last year Four Leaf Properties
The five-part series is available
“There’s a lot of talk today about
started a new division of the com-
through the Four Leaf Proper-
the ever-important topic ‘paper
pany to assist manufactured home
ties newsletter and is hosted on
lots,” entitled lots… what does
community operators to develop
YouTube. Topics in the series
that really mean? There’s a lot of
and expand. In 2022, the company
to date include:
talk out there, a lot of misnomers
parlayed its findings with the new
• 80% of MHC Developers Will
and misconceptions.”
client work to launch a new video series on the topic.
Leave the Industry in 2022 “There is no panacea, there is no
• Costs on the Road to Paper Lots • MHC Raw Land Development Project Challenges
“The motivation for the video
silver bullet, it’s just hard work. It’s
series on MH Development is shar-
about trenching in,” Four Leaf’s
ing knowledge and insights to help
Michael Callahan said.
here we are running through the
the industry deliver successful
• Top 10 Pitfalls and Must-Haves
challenges of development.”
development projects,” Four Leaf’s Lisa Lane said. “We’re at an inflection point as an industry where we need to point to successful projects. It’s impossible to scale up home shipments without the homesites. We need showcase communities that municipalities can rally around. “The time is now for 500+ homesite communities,” she said. “Lots of money is chasing it, but very few will cross the finish line.” Lane said the series is about collaboration, joint ventures, and information sharing that i s strateg ic to the succe s s of the industry.
62 | MAY / JUNE 2022 EDITION
on the Road to Paper Lots
“It looked really good, and now
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Industry Perception
BUILDING A BETTER
NEIGHBORHOOD by Suzanne Felber
64 | MAY / JUNE 2022 EDITION
I
It is actually happening. The
to downtown Dallas, and within
decades of hard work that our
blocks of a rail system station, has
industry has put into educating
made it a perfect target for build-
consumers about the value of
ing large, multi-family structures.
manufactured housing is finally
It has made us form neighborhood
paying off. Consumers and even
organizations and get involved in
some cities are realizing that
city politics, including inviting
today’s manufactured homes are
city planners to come and speak
not the mobile homes of the past.
to our group.
Recently my own neighborhood
When a meeting happened
that used to be full of diverse,
recently, the discussion came up
hard-working families has land-
about ADUs and tiny homes. When
ed on the radar of developers
the city planner started describing
and house flippers. Being close
them as “mobile homes” I raised »
MHINSIDER.COM | 65
Industry Perception
my hand and kept it up until I was
San Antonio. The Denver-based
scan the code in various areas of
allowed to speak. I shared how
company hopes to help change
the homes. They can then learn
instead of us being forced out of
the perception of community
by a short video about what is
our homes by large developers that
living by offering a healthier
special, or be taken to a page on
wanted to build tall apartments,
lifestyle with their native wetland
their website.
townhomes and condos, we had
plantings, a loop trail, pond, and
Having great photography of
other options. Allowing ADUs or
signature pier. The amenity center
your homes is also very import-
tiny homes in the city limits could
clubhouse will be three linked
ant, and having the 3D tours
be a great alternative along with
buildings with a modern, simple
available online is now expected
factory-built cluster homes, or
feel. Designing thoughtful homes
by consumers so they can tour
other higher density, single-family
and communities based on local
your homes at their leisure instead
options. I always have examples
preference, not just a national
of having to drive all over town
of our homes on my phone and
directive, is becoming more im-
to see a home that they like. This
offered to share with and educate
portant than ever.
technology has become a lot more
anyone interested, including
State-of-the-art fitness centers,
affordable, and it is now possible
the city council and planning
splash parks, golf simulators,
for smaller builders and retail
committee. All were interested,
pickleball, and jogging paths are
centers to rent the equipment
and I fielded lots of questions. By
some of the ways that commu-
and technology to do this in
the end of the meeting, there was
nities are encouraging a healthy
their own homes.
interest instead of a flat no.
lifestyle that appeals to today’s
‘Micro’ is the Buzz
With the homes that our
community customers. Pride in
industry is building today, we
community, and allowing those
It looks like “micro” might
are a viable option for infill and
customers to know that they are
become the buzzword for 2022.
affordable housing, right along-
an important part of a commu-
Micro kitchens, micro homes,
side site-built homes in affordable
nity or neighborhood is a vital
and micro-communities are
housing neighborhoods. One of
consideration. Manufacturers
something that today’s home
the planners in attendance actu-
and community owners aren’t
buyers and renters are Googling,
ally asked what it would take to
waiting for the customer to come
and searching out. Blomberg
get more RV or tiny home parks
to them, they are going out into
Appliances is a company that
built nearby, and in some areas
the wider community and meet-
you may not ever have heard
that is actually happening.
ing potential customers in their
of, but you may have used in an
own environments.
apartment, or hotel suite that
An Industry That Works for the Customer YES! Communities is in the
you have stayed in. Their “micro
Innovation and Technology to Meet Needs
appliances” could be the perfect fit for today’s smaller homes, and
process of building a new commu-
Consumers today have a shorter
are also ideal for creating cooking
nity from the ground up in New
attention span than ever, so it is
and entertaining areas outside
Braunfels, Texas. Dwelling at New
critical to come up with unique
of the traditional kitchen space.
Braunfels has been designed to not
ways to get the information
This company is also very focused
only attract customers who have
they want as quickly as possible.
on sustainability and recently
been familiar with factory-built
Clayton Homes is using QR codes
showed at the Kitchen and Bath
housing for years, but to be a via-
in their new MIYO homes that
Industry Show some very exciting
ble, possibly preferred option for
offer a flex space in each home.
innovations coming to market.
the new and younger customers,
Instead of relying on the sales
Casata is a new micro home
particularly the emerging tech
team to tell about the features of
rental community that has pur-
workforce in nearby Austin and
the homes, customers can quickly
chased land in Dallas and other
66 | MAY / JUNE 2022 EDITION
construction of their homes, and
Lifestylist Suzanne
Austin. The group is about sus-
they are considering this type of
Fe l b e r h a s b e e n
tainability, community living, and
construction for the new commu-
active in the housing
being able to live large in a small
nities as well.
industry for more
space. Its leadership is concerned
Having a walkable, bike friendly
than 30 years. Felber
about the social impact of their
neighborhood has become a pri-
realized that factory-built housing
community as well as the lifestyle
ority for many of the consumers
was the housing of the future, and
they make available to their cus-
looking to buy or rent a new
has been actively working to promote
tomers. Their website shares that
home. This is true not only with
the lifestyle ever since. She started
their impact focuses on two key
the younger buyers, but for the
American Housing Advocates as a
pillars: sustainability and the arts.
55+ customers as well. In the last
way to share the great news about
The community is packed
two years, we have realized that
manufactured housing. To learn
with amenities that encourage
the more we can do at home or
more about her work, visit www.
consumers to enjoy and share the
nearby instead of having to drive
lifestylist.com and www.american-
entire community, not just their
everywhere can make a difference
housingadvocates.com, or read her
personal homes. From dedicated
in our lives and to the planet.
@lifestylist social media posts.
food truck areas, to free live music
By being a better neighbor, and
events, plus top-notch concierge
welcoming new ideas and innova-
services available through their
tions into our communities, we
designated app, this design is
can build a better neighborhood
FOR MORE INDUSTRY NEWS, VISIT OUR BLOG AT
one to watch. Casata Austin was
and a future that is brighter for
designed for using factory built
all of us. MHV
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MHINSIDER.COM | 67
Industry Perception
areas to replicate its success in
Housing Policy
White House Plans Housing Stability in Five Years by Patrick Revere
68 | MAY / JUNE 2022 EDITION
nounced plans to close the housing
and addressing the shortage of construction workers.”
gap in five years through a multipronged approach that includes creating improved financing for manufactured homes. “The plan’s policies to boost supply are an important element of bring-
Land-Use Reforms The White House plan intends to tie federal funding to local land-use practices, including planning and zoning efforts.
ing homeownership within reach
“One of the most significant issues
for Americans who, today, cannot
constraining housing supply and
find an affordable home because
production is the lack of available
there are too few homes for sale
and affordable land, which is in large
in their communities,” the White
part driven by state and local zoning
House communication stated. “And
and land use laws and regulations
it will help reduce price pressures in
that limit housing density,” the
the economy, as housing costs make
statement said.“Exclusionary land
up about one-third of the market
use and zoning policies constrain
basket for inflation, as measured by
land use, artificially inflate prices,
the Consumer Price Index.”
perpetuate historical patterns of
Among the new financing mech-
segregation, keep workers in lower
anisms the White House intends to
productivity regions, and limit
deploy with the goal to build and
economic growth.”
preserve more housing is for “manufactured housing (including with
Materials and Labor
chattel loans that the majority of
In the months ahead, the Biden
manufactured housing purchasers
Administration said it is “committed
rely on), accessory dwelling units
to working with the private sector
(ADUs), 2-4 unit properties, and
to address near-term constraints to
smaller multifamily buildings.”
supply and production – with the
In addition, the administration
goal of achieving the most complet-
is looking to expand programs
ed housing units in a single year
for construction to perm loans,
in 15 years.
often used in the industry to begin
The plan calls for U.S. Housing
construction and convert to a conven-
and Urban Development Secretary
tional mortgage upon completion and
Marcia Fudge and U.S. Department
home placement.
of Commerce Secretary Gina Rai-
The Manufactured Housing Insti-
mondo to meet with private sector
tute issued a statement indicating
organizations that face supply chain
the White House plans toward other
disruptions, as well as promote
industry priorities as well, includ-
alternative building methods, and
ing “keeping the HUD Code up to
recruit more qualified labor to the
date, addressing zoning barriers,
construction and craft trades. MHV
easing supply chain constraints, MHINSIDER.COM | 69
Housing Policy
T
The Biden Administration an-
Housing Policy
ZONING WORK:
A Crucial Part of the Community Acquisition Process by Ferd Niemann
Housing Policy
W
When purchasing property, one of the most important
due diligence tasks to complete is researching the zoning designation and applicable city/county code restrictions. If the property complies with all applicable code standards that apply to the specific zoning designation, then the property is considered legal conforming. That’s great! (most of the time) However, if the property has any code violation it is considered nonconforming at best. This can be a common occurrence for manufactured home community properties because these properties were often developed over 50 years ago, much earlier than and ordinances regarding mobile or manufactured homes. This means that even though the property or its use is not in compliance with the current city code, it may fall into the category of “legal nonconforming”.
What is Legal Nonconforming? The term legal nonconforming means the real property and/or structure or building on the property may be exempt from zoning standards that do not predate the age of the use of the property. In other words, it is considered as having “grandfathered rights”. These rights are limited to the specific nonconforming use at the time the new code or amendment takes effect, rendering the previously legal property to be a legal nonconforming property. While the nonconforming use may continue, it cannot be exacerbated by extension or expansion of the use, otherwise the city will likely require the use to conform to the current code of ordinances. In many cases, city codes also contain provisions that restrict repairing the property to the nonconforming use if the damage is more than 50% of the property value. This gets hairy when municipalities take the position that infill of homes is a “development” » MHINSIDER.COM | 71
Housing Policy
or “expansion,” and also when they attempt to impute
options to avoid litigation when a local government
age or size restrictions.
is not cooperating or refuses to permit your property
For example, let’s suppose a property predates the
status or rights as legal nonconforming entity: 1)
enactment of the city code and the homes in the
rezone the property; 2) receive a conditional or special
park have setbacks from the property line of five feet,
use permit; or 3) receive a variance.
which complied with the 1990 code. In 2020, the city
Rezoning property will change the use of the proper-
amended the code to require 20 foot setbacks from
ty and voluntarily surrender all legal nonconforming
the property line. Now the homes in the community
status of the property. This can occur by downzoning
are considered nonconforming to the code. Despite
the land use of the property, or rezoning the land use
this nonconformity, the setbacks complied with the
to a planned unit development district (PUD).
previous code requirements, therefore, the property
Downzoning is the formal process of lowering the
is considered legal nonconforming and may be per-
intensity of the use of the property, such as down-
mitted to continue its use as-is. If the community is
zoning from a multi-family residential district to a
expanded, further developed, substantially repaired,
single-family residential district. While the use is still
or altered, the park or homes within the park post-
residential, the zoning classification has changed from
2020 amendment then the park will likely be required
R-3 to R-1, for example. A PUD is the formal process
to conform to the current amended city code.
between an owner and the city that typically results in the owner creating their own zoning district. This
Operating a Legal Nonconforming Property The allowance of a property to continue operating its legal nonconforming use does have some rea-
allows landowners the opportunity of negotiating the applicable zoning provisions of the code. Typically, this type of rezoning process requires:
sonable restrictions. As stated above, the permitted
1. Payment of an application fee
nonconforming use may not be exacerbated via
2. Conducting neighborhood meetings to discuss
extension or expansion without conforming to the
the rezone
current code. The city may decide to terminate an
3. Discussions with city staff
owner’s legal nonconforming status if the property
4. Presentation of the development plan
or its use is considered abandoned, a nuisance, or
5. Applying for approval through the city planning
harmful to the public health, safety, or welfare. An
commission and city council
owner may also voluntarily surrender his or her legal
Conditional or special use permits are an exception
nonconforming status by rezoning the property or
or permitted use granted by a city, so long as the
participating in a planned unit development process (a
conditions within the district are compliant. This is
form of abandonment). This means that the property
a mechanism that cities use to permit certain use
forfeits its grandfathered rights and now must comply
types within a designated district. Similar to legal
with the current zoning codes and ordinances.
nonconforming uses, CUPs cannot be exacerbated
Despite a manufactured home community meeting
in any way. Many zoning codes include provisions of
the legal nonconforming use standard, some cities
what uses are eligible for a CUP, including details on
still push back on allowing the properties to continue
the conditions the property must meet to be granted
operating. Regular opposition is in the form of NIMBY
a CUP. For example, it is common for city codes to
(Not In My Backyard) cities and neighbors.
preclude commercial businesses within residential
When municipalities resist the continued operation
neighborhoods. This is a reasonable restriction for
of a legal nonconforming use, many community
an autobody repair shop. However, an artisan bakery
owners or operators think the only option is to sue
would not pose the same concerns of damaging the
the city. The first attempt should be to communicate,
surrounding residential property values. As such, a
argue, negotiate, and down right arm wrestle with the
city may decide to grant a CUP to open an artisan
city, a kind of crap shoot that can be successful but
bakery in the residential neighborhood, but the
it is hard to bet on. Instead, there are three primary
applicant would be subject to certain limitations or
72 | MAY / JUNE 2022 EDITION
an administrative hearing. Before applying for a
hours of business, prohibition of street parking.
variance, it is helpful to research whether others have previously requested a similar variance and been
Application for Variance
awarded one to show the likelihood of success.
A variance is an exception to a rule or code provi-
As you can see from the analysis above, zoning
sion that is granted due to an undue hardship that
research is essential when purchasing a property. It
is not the owner’s fault. Variances are issued by the
is not the end of the world if the property is desig-
local administrative body, such as a zoning board
nated as nonconforming with the municipal code
or city planning commission. There are two types
or ordinances. There are avenues that will allow the
of variances: An area variance and a use variance.
continued use of the property, but it is important
An area variance is when the use does not conform
to take the proper steps to avoid losing the legal
to the provision in the code (i.e., permitting a
nonconforming use or grandfathered rights that
home that has a setback requirement of 30 feet to
the property had acquired over time. MHV
remain at 15 feet away from the road). A use vari-
Ferd Niemann is an MHP owner/opera-
ance is for uses in operation that are not permitted
tor and lawyer, based out of Kansas City.
in the zoned area (i.e., a gas station within an R-1
He has acquired over 1,300 homesites
single-family residential zone).
for his portfolio while also serving more
To receive a variance, the landowner must show
than a hundred MHP owners/operators as
there is undue hardship that is not their fault, and
clients. He can be reached and his podcast
it would be unjust to enforce the relevant zoning
can be found at www.themobilehomelawyer.com.
requirements. Here, an applicant would need to pay the application fee and present the argument during
Prove Your Industry Expertise with an MHEI Certification Accredited Community Manager (ACM®) The preferred designation for community managers Two courses available in person or online that cover MH community management topics including: n Management and Resident Policies n Community Maintenance n Leasing and Sales Techniques n Marketing Communities n Financial Management n Physical Asset Management n Federal and Fair Housing Law
Professional Housing Consultant (PHC®) A complete study of retail from the history of construction to closing the sale Topics covered include: n Retailer Responsibilities n Placement Options n Finance Overview n Fair Housing n Land Home Finance n Personal Property Finance n Credit Applications n Selling Skills n Comparing Manufactured Homes to Other Forms of Housing and Communication
Visit www.ManufacturedHousing.org/Education for more information MHINSIDER.COM | 73
Housing Policy
restrictions, like limiting signage, requiring regular
Efficiency / Sustainability
Builders Find Path to Energy Efficient, Environmentally Friendly, Affordable Homes
I
In the face of daunting industry challenges
and at a time when the demand for affordable homes is at an all-time high, builders continue to find ways to innovate toward efficient and responsible building practices. As an industry, options are available across the spectrum, and each builder and associated retail network differentiates between geography, product line, material choice, and sales and marketing programs. In April, during the Manufactured Housing Institute’s Congress & Expo in Orlando, the Clayton Home Building Group unveiled the prototype for a first-ever single-section CrossMod™ home. They intend to have the product benefit from the Freddie Mac and Fannie Mae financing programs for manufactured homes with specific attributes that allow them to fit into many residential settings. Previous floorplans for the “new class” of homes have been multi-section offerings. Clayton said it designed and built the home to be yet another affordable solution for a growing range of homebuyers and locales. » Continued on page 77
74 | MAY / JUNE 2022 EDITION
Efficiency / Sustainability Images of energy efficiency products and characteristics are contributed by Clayton Homes. The home and floorplan have been modified for illustrative purposes.
MHINSIDER.COM | 75
Nationwide Third Party Property Management, With an Owner's Perspective
OPERATIONS �� � � � � �� � �� � �� , , Curb Appeal and Occupancy
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Schedule a call today for a free community evaluation 248-885-9832 sblank@blankfamilycommunities.com Blankfamilycommunities.com
scarcity. One of the ways it’s being done is to consol-
of how Clayton is innovating to meet the needs of
idate floor plan offerings into a set that best fits the
today’s homebuyers,” Ramsey Cohen, Clayton’s
company and the customers.
director of industry and community affairs, said.
Cavco President and CEO Bill Boor said it’s import-
“This home could create an incredible opportunity
ant to simplify the building process, but the company
to provide affordable homes that can be placed in
also is wary of leaving a feeling with customers that
more areas than a typical off-site built home.
they’re getting a lesser home or fewer options.
“These homes have a similar look and feel to traditional site-built housing, which can help address zoning challenges and create infill opportunities in both new developments and established residential communities,” he said. The single section home is
“The way I like to think of it is
People in the city seem to be looking for another option for affordable housing, and regulatory relief and ADUs could go a long way. - Skyline Champion Corporation President Mark Yost.
built to CrossMod specifications including an elevated roof pitch,
”
‘design for manufacturability,’” Boor said.
The Continued Emergence of ADUs The growth of acceptance for accessory dwelling units is another way the manufactured housing industry and leaders in large metro areas in particular
attached garage, and energy efficient features. While
are helping to solve the affordable housing crisis.
research shows the median home price in January
ADUs are small factory built homes that are placed on
2022 was just over $350,000, the company estimates
a permanent foundation adjacent existing residences.
that in most markets the new single section CrossMod
It’s more than a guest house, it’s an affordable home
could be available for under $200,000 including
for rent and source of revenue for the home owners.
the price of land. The home’s unique layout makes
The Manufactured Housing Institute estimates
it the ideal size and shape for neighborhoods and
that there are about 4 million new homes needed to
urban lots. The home also features a built-in flex
bring the availability of homes to the level of demand.
space for the homeowner to choose whether they
“If you look at cities that have done ADUs for housing
want another bedroom, a home gym, an office,
relief… People in the city seem to be looking for anoth-
or art studio, for example.
er option for affordable housing, and regulatory relief
Clayton CEO Kevin Clayton said the volume of the leftover material from the home’s construction can fit into a pair of 64-gallon waste bins.
and ADUs could go a long way,” Skyline Champion Corporation President Mark Yost said. Yost noted that for every ADU rental put in, it low-
Waste material from the home weighs about 180
ers the rent of five other nearby residences, a study
pounds, and other excess materials are reused,
shows. Lowering rent in high-price and even midsize
repurposed, or recycled in the building process, he
cities allows teachers, firefighters, health profession-
said. The company also has a path toward operating
als, and service industry employees to live in the
from a carbon neutral headquarters within the next
communities they serve.
15 years, Clayton said. “Our company values challenge us to open doors and drive change within our industry to make home-
Reducing the commute to job centers cuts fuel consumption, reduces emissions, and generally is more beneficial to the environment.
ownership attainable for people everywhere,” Clayton
“It’s a double win,” Yost said.
said. “The single section CrossMod is an exciting way
Boor said ADUs are important for the resident, as
we can help homeownership become a reality for
well as for community, and for manufactured housing.
more people, no matter where they live.” Beyond the new Clayton design, builders have
“It’s the industry’s entry into this whole urban environment,” he said. MHV
been working on ways to combat material cost and MHINSIDER.COM | 77
Efficiency / Sustainability
“The single section CrossMod home is one example
WE HAVE THE DATA The Nation’s Most Comprehensive Source of Market Data for the Manufactured Housing Industry YOUR COMMUNITY Rent: $997/month Occupancy: 94%
COMPETITOR #1 Rent: $949/month Occupancy: 89%
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State Advocacy
State by State
ROUNDUP
State Advocacy
Alabama Manufactured Housing Association
Manufactured Housing Industry of Arizona
Labor Woes On the Mend
Arizona Department of Housing
Alabama’s labor and supply shortage continues but
Initiates Online Servicing
is beginning to get better, which means orders should
Arizona’s regulator, the Department of Housing,
start getting filled faster. Will prices come down?
recently initiated a new online program for plan re-
Only time will tell. But the market remains strong
views, licensing, permitting, installation inspections,
and industry professionals are optimistic.
issuing HUD labels, and all related payments for services. As with all new programs, they are working
Arkansas Manufactured Housing Association
out a few bugs but overall the system is expected to
Baseball Ticket Sales to Benefit PAC
speed up the process for all activities.
As part of the Arkansas Manufactured Housing Association’s continuing efforts to raise much-needed
Florida Manufactured Housing Association
funds for the industry’s political action committee
2022 FMHA Convention Update – Developing
(PAC), AMHA hosted members and guests for NCAA
a Playbook with Winning Strategies
baseball action on April 26 as the nationally-ranked
It is time to get your game face on and make plans
Arkansas Razorbacks took on the UCA Bears at
to attend this year’s FMHA Annual Convention, June
Dickey-Stephens Park in North Little Rock.
21-22, 2022 at Grand Hyatt Tampa Bay. The stellar program has an all-star lineup of speakers, workshops, and, of course, fun! The convention kicks off with a workshop, “The Prospectus: Covering All the Bases” » MHINSIDER.COM | 81
State Advocacy
Now that Chapter 723 clearly allows a community
ordinances that disallow placement of manufactured
operator to offer an incoming homebuyer/tenant a
homes on lots that have been vacant for six or more
different prospectus than the seller’s prospectus,
months and prohibits discrimination based on the
FMHA wants to ensure that community owners
age or size of a manufactured home going into an MH
are prepared and can avoid conflict down the road.
community. It also passed legislation establishing a
The remainder of the convention schedule offered
stand-alone MH Dealer License and includes IMHA
by FMHA will be geared toward upgrading homes,
as a member of a housing task force to review issues
creative uses of RVs on small lots, community ex-
related to housing and housing shortages in Indiana.
pansion, the top community amenities, and more. For registration questions, as well as exhibit and
Kansas Manufactured Housing Association
sponsor opportunities, contact Beth at beth@fmha.
Statewide Housing Assessment Completed
org or (850) 907-9111.
Kansas just completed its first Statewide Housing Assessment in 35 years. The results are
Idaho Manufactured Housing Association
eye-opening but not unexpected. Most of the
Working for the Idaho Manufactured
housing stock was built before 1960. In response,
Housing Industry
the Legislature has three housing proposals to
This past year, Idaho’s statewide organization
address specifically rural housing needs. All of the
— representing manufacturers, dealers, retailers,
proposals include factory-built housing and the
communities — worked on legislation over rental
new Kansas Homeowners Assistance Fund includes
deposits, met with the Idaho Transportation De-
options for chattel mortgages.
partment to work out transport issues on a real time basis, and joined the statewide efforts to address
Kentucky Manufactured Housing Institute
affordable housing by advocating for manufactured
Capitalizing on a Big Year in Home Sales
housing and manufactured housing communities as a part of the solution.
Kentucky’s shipment numbers climbed 14% in 2021, over an already successful 2020. KMHI is grateful to each of its members and their dedication to the
Indiana Manufactured Housing Association
industry and is looking forward to a productive year
Consumer Access Strengthened in Indiana
ahead. Goals include working with state legislature
IMHA passed legislation prohibiting local units of
to eliminate Ad Valorem Tax paid on manufactured
government from enforcing existing or adopting new
home inventory, advocating for a streamlined
82 | MAY / JUNE 2022 EDITION
even 45 days in advance. Home inventory in both
ufactured homes in cities and counties, increasing
markets is very tight even though the median price
workforce growth through high school and tech
of a single-family home in Reno is now $544,000 (up
center career days and public outreach, and creating
20.5%) and Las Vegas is $450,000 (up 26.9%).
a consumer-facing website to direct potential buyers to retailers and manufacturers.
New York Housing Association Lobby Day Held May 4
Manufactured Housing Association of Maine
New York Housing Association members held a
Taking On Challenges to Affordable
lobby day at the capital, meeting with New York State
Home Ownership
legislators and educating them about the issues that
Like other states, Maine is faced with affordable
affect the manufactured housing industry in the
housing challenges, including within the manufac-
state, and to help spread the positive message of
tured housing industry. There is growing demand for
affordable housing options for New Yorkers. Members
our product, but there are difficulties in meeting this
who attended met at the association office for talking
demand. Problems include workforce shortages, prod-
points, then went out in teams to visit the law makers.
uct availability, rapidly increasing prices, supply chain
Information packets were left behind for legislators
delays, and subcontractor availability. Combined,
and their staff to review and reference.
these issues are making it extremely challenging to get people into homes. It is incumbent upon retailers
Ohio Manufactured Homes Association
to manage expectations of homebuyers. As consumers
Backlogs and Labor
soon find out, everyone is in the same boat. In Maine,
Home manufacturers shipping to Ohio continue
they are also taking a second look at what factors
to report backlogs for home deliveries from several »
continue to make home ownership affordable, including what zoning and other regulatory mandates are impeding the affordable housing market.
The Michigan Manufactured Housing Association MMHA ED Retires, Association
SOLID COVERAGE
FROM FOUNDATION TO RAFTERS Written Insured Warranties for Manufactured Homes
Celebrates 80th Anniversary Executive Director William Sheffer will retire at the end of 2022 and leaves the association in the hands of new President & CEO John Lindley. Last year was MMHA’s 80th anniversary, and membership continues to grow at a record pace with legislative, member education, and statewide marketing priorities in place.
Nevada Housing Alliance Nevada Experiences Significant Labor Shortages Labor shortages in Nevada have forced businesses to raise wages in some cases by 50-60% over the last
• Limits liability & risk. • Excellent sales & marketing tool to attract more buyers. • MHWC’s strong insurance backing protects your bottom line. • Assistance & support with customer disputes, including free mediation. • Peace-of-mind protection.
few years. Reno and Las Vegas markets are also experiencing factory backlogs (from Arizona, California, and Idaho factories) that are 12 to 24 months. We also are having a very difficult time predicting site improvement cost for our customers sometime
MHWC
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TIFANEE MCCALL 800.247.1812 Ext. 2188 sales@mhwconline.com www.mhwconline.com
MHINSIDER.COM | 83
State Advocacy
licensing process, overcoming unfair zoning of man-
State Advocacy
months all the way out to early 2023. Installers, home
of their own, to call home. Not every profession is
set crews, transporters and other needed labor is in
afforded the same opportunity. Today, the industry
very short supply, creating further home completion
stands on the shoulders of our respective industry
challenges. Yet, retailers report most home purchasers
pioneers, and we reflect on their past dreams of what
are willing to wait regardless of backlog.
is now, today’s landscape. The industry is searching for more motivated individuals who appreciate the
Oregon Manufactured Housing Association
work of today’s pioneers while continuing the dream
Wildfire Recovery Continues for Displaced
of providing affordable homes to America’s families.
Oregon continues to recover from the devastating homes in many Oregon communities, including an
Virginia Manufactured and Modular Housing Association
estimated 1,748 manufactured homes in Jackson
Advocates Take Homes to on the Road
wildfires of 2020 that destroyed manufactured
County alone, where the Almeda fire impacted 18
The Virginia Manufactured and Modular Housing
parks and displaced an estimated 3,000 residents.
Association hits the road with its Open House Road
Legislators see manufactured housing as a major
Show this summer. Starting June 1 at the Clayton loca-
part of the solution and have sought suggestions
tion in Bedford, the tour will stop at 21 retail locations
for making production more robust. Like much of
across the Commonwealth during the following 18
the nation, our manufacturers report problems
months and will host local officials including planning
with labor shortages and supply of materials. Leg-
and zoning, building, and other elected officials to
islation aimed at streamlining the process for siting
“kick the tires”. Discussion at the privately hosted
manufactured homes is underway in an effort to
tours will be on the use of factory-built homes to
assist displaced homeowners.
help meet affordable housing needs in each locale.
Pennsylvania Manufactured Housing Association
Wisconsin Housing Alliance
Governor Signs Law to Eliminate Duplicate Requirements
‘Missing Middle Housing’ Made Priority Adding more “missing middle housing” is one of the top documented needs for Wisconsin. Housing
Governor Tom Wolf signed Act 8-2022 into law,
that is attainable to people who want to live in the
eliminating duplicate licensure, regulation, and
community where they work. They are teachers,
examination of installment sellers and employees
police officers, postal workers, and everything in
of installment sellers that assist consumers in ob-
between. Even though municipal, state, and county
taining loans for manufactured or mobile homes
officials know the lack of housing is a problem, they
when the dealer is licensed under the Consumer
are not yet ready to embrace turnkey manufactured
Credit Code and provides financing for the purchase
housing as the solution. To be honest, many in the
on an installment sales contract regulated by the
MH industry do not embrace a turnkey home and
Consumer Credit Code.
often leave the customer to put in entry and exit steps and finishing touches to make the home fit nicely
Tennessee Housing Association
into a neighborhood. Local officials indicate that
Keeping America’s Dream Affordable
conventional skirting and unattractive entrances to
In today’s climate, it can be easy to lose site of the
a home make HUD code homes stick out like a sore
good things that come our way on a daily basis. We get
thumb in a subdivision. Once turnkey homes are
caught in the minutia and forget to enjoy the broad
embraced, the stereotype easily can be overcome,
landscape! Working in the manufactured housing
and manufactured housing will finally surpass 10%
industry is a great place to view the landscape of
of housing starts in the market. MHV
dreams. Each and every time a family turns to us, we become part of their greatest desire! A place 84 | MAY / JUNE 2022 EDITION
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4/2022
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INDUSTRY JOB OPPORTUNITIES
MARKETING MANAGER
BUSINESS DEVELOPMENT MANAGER
HTTPS://WWW.LINKEDIN.COM/JOBS/ VIEW/3018974371 The Marketing Manager is a senior marketing role that oversees the production and day-today operations of the marketing department. Based in Grand Rapids, MI.
https://www.triadfs.com/ Triad Financial Services is growing and we need a business development manager to take over a mix of existing accounts and develop new sales territories in the Manufactured Housing Communities space.
Primary Responsibilities: • Collaborates with the Vice President–Marketing to develop and optimize the organization’s marketing budget, strategy, branding, and revenue initiatives as well as monitor and enhance the performance of multiple digital assets/properties. • Oversees the day-to-day activities of the marketing team including project management, traffic control, production schedules, and quality assurance for a multi-disciplined, cross-functional marketing department to complete projects on time and within budget including: digital and print production of marketing collateral, transactional and marketing emails, direct-response copywriting, advertising and promotional campaigns, PPC management, website design and maintenance of WordPress sites, etc.
BDM duties and responsibilities. • Lead the team in supporting and selling Triad’s Manufactured housing community programs. (floorplan rental, community origination, and retail) • Develop new client relationships and maintain existing client base. • Evaluate and anticipate customer needs, respond to customer requests.
Required Qualifications: • Minimum 7 years of multi-disciplined, handson marketing experience including campaign development, graphic design/art direction, copywriting, email marketing, websites, social media, search engine marketing, etc. • Experience managing and directing a marketing team.
A successful BDM candidate will have various skills and qualifications needed to do an excellent job, including: • Bachelor’s degree or equivalent • Five (5) years of proven sales experience preferably in the manufactured housing communities and chattel space. • Exceptional communication and presentation skills, both written and verbal, in order to express technical and nontechnical concepts clearly and concisely.
MHINSIDER.COM | 87
Job Opportunities
CUSTOMER RELATIONSHIP MANAGER
INVESTOR RELATIONS ASSOCIATE
https://www.triadfs.com/ Due to growth across the US, Triad Financial Services is looking for an experienced Customer Relationship Manager who will be responsible for engaging with our key customers by building and preserving trusting relationships.
https://rocusa.org/about-roc-usa/careers/ ROC USA® is seeking an Investor Relations Associate to support the capitalization and general fundraising activities ROC USA carries out on an annual basis. The position will report to the Managing Director of ROC USA Capital and work as a key member of the ROC USA Capital CDFI team.
Responsibilities: • Building and maintaining profitable relationships with key customers. • Overseeing the relationship with customers handled by your team, as well as managing new client approval process. • Resolving customer complaints quickly and efficiently. Requirements: • A bachelor’s degree in business administration or a related field. • A minimum of 3 years’ experience with Commercial Loan Processing. • Excellent interpersonal and communication skills. • Must be able to work remotely with limited supervision and be able to travel to our Jacksonville, FL HQ upon request. The ideal candidate will live in Chicagoland/suburbs area.
What You’ll Do: • Participating in regular capitalization and fundraising planning meetings with the President and Managing Director and track all pending equity, debt and grant applications using electronic means. • Managing investor loan and grant files, agreements, and reporting requirements with attention to detail and meeting all objectives and schedules. • Attending conferences and events to promote ROC USA and resident ownership among grant makers and capital providers. Who You Are: To be successful in this job, you will excel in four areas: • Communicator and Storyteller. • Relationship-building. • Mathematical Skills. • Innovative Problem Solver. Education and Experience: • 3+ years’ experience in fundraising or capitalization, and/or relevant experience and education. • Superior organization skills and dedication to completing projects in a timely manner. The position is a 40 hour (full-time) per week position and based in Concord, NH or Washington, D.C. The role requires some travel across the country.
88 | MAY / JUNE 2022 EDITION
Job Opportunities
FINANCIAL ANALYST
VISIT OUR ONLINE CAREER PAGE
https://rocusa.org/about-roc-usa/careers/ ROC USA® is seeking a Financial Analyst to support multiple Service Units across the business to demonstrate organizational growth and ensure data integrity.
https://www.championhomes.com/careers Through the talents of our employees and their collective dedication to excellence, Champion has long enjoyed a well-deserved reputation as the industry leader in manufactured housing. In return for hard work and dedication, our goal is to provide a safe, productive and enjoyable workplace for every employee. We invite you to explore the possibility of a rewarding career with Champion Home Builders.
What You’ll Do: • Review financial reporting (Profit and Loss Statement, Balance Sheet, and other activities) for a portfolio of borrowers and ensure accuracy and compliance in our reporting system. • Assist affiliates, who provide direct service to our borrowers, as needed to ensure quarterly reporting requirements are met and provide financial health summary to ROC USA Cooperative Solutions. Who You Are: To be successful in this job, you will excel in the following areas: • Organizing and Planning. • Business and Financial Software Acumen. • Communication. • Analytical thinking. Education and Experience: •B achelor’s degree in Accounting or Finance with a preference with those who have worked in property or real estate lending. • Data analytics experience •H ighly proficient with excel and/or data visualization software What Else You Should Know: The position is a full time, 40 per week position and based in Concord, NH or Washington, D.C, or remote for the right candidate.
Have an industry career opportunity you’d like to promote? Reach Over 30,000 Manufactured Housing Professionals in Print and Online
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1-877-406-0232 MHINSIDER.COM | 89
TWO DAYS OF FACTORY TOURS & EDUCATIONAL SEMINARS SAVE THE DATE
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50 YEARS YOUNG RV/MH Heritage Foundation Hall of Fame Celebrates Benchmark Anniversary
T
The year 1972 is historic for several reasons. Interna-
tionally, it was a black year, due to terrorism entering sport, with the massacre of 11 Israeli athletes in Europe during the Summer Olympics. Nationally, 1972 marked the beginning of the Watergate Scandal, the greatest U.S. political expose’ in modern times.
by George Allen, CPM Emeritus, MHM-Master
In manufactured housing circles however, 1972 was a Banner Year, boasting the second highest production level year in the industry’s history, with 575,940 new homes shipped! And 1973 would exceed this euphoric level by only 4,000 when 579,940 new homes were shipped! Unfortunately, two years later – in 1975, these acme shipment levels, for financial and regulatory reasons, plummeted to 212,690 new homes shipped. Since then, the roller coaster of annual shipment totals continues. Riding the shipment euphoria of 1972, a group of trade MH magazine publishers, attending an MHI meeting, announced the first Hall of Fame class comprised of 10 pioneers, which included Wally Byam, Elmer Frey,
92 | MAY / JUNE 2022 EDITION
Allen Legacy
Kristian Jensen and four others. First headquarters
· At least seven father and son pairings, including
was the business office of the first chairman, then
three individuals who’ve authored autobiographies:
a loaned desk in the National Bank of Elkhart. In
Jim Clayton, Kris Jensen, and Ralph Scoular.
time, Jack Tuff and Herb Sailor convinced the city
· At least a half dozen founders of housing manu-
of Elkhart to donate six acres of urban renewal land
facturers: John Crean, Art Decio, Bob DeRose, Jim
for the first Hall of Fame building. Early years were
Shea, Sr., Elmer Frey, and Harold Platt.
tough going, with individual supporters paying the
· Some notable individuals: Ricky Bucchino who
utility bills. The first major donors were Winnebago
‘did it all’ and was known as Florida MH until he
and MHI, until the RV industry became more involved
passed; Dr. Carlton Edwards, prolific author and
during the early 2000s. A new RV/MH Hall of Fame
director of Michigan State University’s Mobile
museum and library facility opened after the turn of
Homes Education Program; Dick Moore, largest
the century. And just recently, a new manufactured housing display area opened to the public.
MH retailer & sold MH to Elvis Presley An interesting and welcome phenomenon has been
Monday evening, Aug. 15, will be the centerpiece
the growing, albeit slowly, the number of women pio-
of the 50th Anniversary of the RV/MH Heritage
neers and executives inducted into the Hall of Fame.
Foundation. Hundreds of manufactured hous-
The late Betty Orr was a member of the inaugural
ing and recreational vehicle aficionados will
1972 class. And since then there’ve been others, here
gather at the Elkhart, Ind., facility for the annual
listed alphabetically:
Hall of Fame induction banquet. The 2022 MH Inductee Class includes:
· Lisa Drake Connor of Missouri, an early spokesperson for the MH industry via media events and
· David J. Carter, Sr., a MH supplier from Florida
among legislators. Worked to improve industry
· Raylen Gritton, a MHRetailer from California
and image.
· Harry Karsten, an OEM supplier & MH manufacturer from California · Eugene W. Landy, portfolio land lease community owner from New Jersey
· Theresa M. Desfosses of Maine, who’s fabricated and sold new manufactured homes, via Burlington Homes and developed communities since 1968. · Patricia Fiederer of New York. President of Latham
· Tim Williams, MH finance lender from Tennessee
Homes, developed land lease communities. A 40
In addition, there will be five recreational vehicles
year member and leader of New York MH Asso-
icon individuals inducted into the Hall of Fame.
ciation.
So, who’ve ‘gone before’ these new inductees? 427
· Ruth D. Kaseman of Arizona. Active in housing
individuals to be precise (pre-2022 induction). And
since 1944. Founder of Arizona MH Owners Associ-
it’s interesting, the size of induction classes in past years. Examples:
ation, and a co-founder of the RV/MH Hall of Fame. · C hristine Lindsey, MHM, of Tennessee. Ca-
1972 = 14; 1973 = 11; 1974 = 10/ class
reer regional property manager for UMH
1984, 86, 89 & 94 = 3/ class
P rop er tie s , a R EI T. Energetic promoter
2014-2022 = 10/ class
of manufactured housing.
So, who’re some of the MH industry pioneers
· B etty Orr of Illinois. Well known after-mar-
inducted into the prestigious RV/MH Hall of Fame
ket supplier, MH retailer and association »
during the past five decades? MHINSIDER.COM | 93
Allen Legacy
leader. First female interior designer to work in manufactured housing.
While the 2022 class is set, now is the time to recommend men and women you consider worthy of
· Debra Pizer, MHM of Illinois. Retired property
induction during year 2023 and beyond. How to do
management executive with Zeman MHC;
this? Visit the RV/MH Heritage Foundation website
female pioneer in community management
and print off the forms exhibited there.
and retail sales.
The evening of Aug. 15 will be a major gala affair!
· M aggie Stephenson of Indiana. Founder and
Not only will 10 more individuals be inducted into
developer of Stephenson land lease communi-
the RV/MH Hall of Fame, but everyone will be cele-
ties, an independent MH retailer. Past president
brating the 50th Anniversary of the RV/MH Heritage
of IMHA/RVIC.
Foundation and touring the newly completed man-
· G l e n n a To l l e t t o f Wa s h i n g t o n . D e ve l -
ufactured housing display hall. Plan now to attend.
op er a nd op erator of t h re e la nd le a s e
For more information; again, visit the website, and/or
communities in WA. Executive director of the
telephone (574) 293-2344. MHV
Washington MH Association.
George Allen has owned and fee-managed land-lease
· Doris Woodward of California. Editor of Trail-
communities since 1978. He’s a former MHI Industry
er Life magazine in 1940s & 50s. Also with
Person of the Year and a member of the RV/MH Hall
Jenkins Publishing as a columnist writing
of Fame. He has been designated a Certified Property
about manufactured homes.
Manager-Emeritus and a Manufactured Housing Manag-
· Mary I. Younkin of Ohio. 50-year veteran of manu-
er-Master. He’s also a senior consultant and staff writer
factured housing; served the Ohio MH Association
with EducateMHC. Allen can be reached at (317) 346-7156
for 30 years. Founded Dycom Industries.
and gfa7156@aol.com.
Do you have a solid
EXIT STRATEGY ? ROC USA brings motivated buyers and ready, specialized financing to the closing table. Our track record is unmatched and our process is effective, efficient, and confidential until you say the word. And we’ll stick by your longtime customers to ensure the neighborhood you built continues to thrive.
94 | MAY / JUNE 2022 EDITION
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Colleen Lannoo Broker Associate | Director of Data Research (586) 580-7322 colleen@mhreinc.com
Melissa Wade Senior Transaction Manger (586) 884-8415 melissa@mhreinc.com
Tampa Location PO Box 4174 Tampa, FL 33677
Tammy Fonk COO | Director of Sales (262) 498-3837 tammy@mhreinc.com
www.mhreinc.com
WHY MHRE MHRE’s proprietary marketing platform strategically strives to ensure the highest probability of achieving our client’s objective. MHRE’s PROCESS starts with a Complimentary Broker Opinion of Value (BOV) of a community or portfolio, to determine its value and address all of the financial and physical characteristics that the valuation is predicated upon.
Advisors
We are advisors, not transaction brokers and view our clients as strategic partners
Communication
It is our goal that our communities receive the utmost personal attention and strategic marketing effort. Our business model is different from our competitors, as we are not transactional brokers, but play more of an advisory role for our clientele. This business model has created a tremendous amount of value for our clients and we are proud of this fact.
Focused
Generated call lists to a target Constant communication with full transparency into our sales & audience and team assignments to individual investors marketing process
Tools
Invest in the best cutting edge databases, research, marketing programs & mapping software
Active
We take an active role in every assignment from Listing through to Closing
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