MHInsider - May/June 2022

STATE OF THE INDUSTRY

THE MAGAZINE FOR MANUFACTURED HOUSING PROFESSIONALS

THE CHALLENGES OF RISING HOME VALUES INDUSTRY TRENDS AND STATISTICS BUILDING A BETTER NEIGHBORHOOD

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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.

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

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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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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

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rates be affected? What can sellers

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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

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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

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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.

You Can’t Have A Great Community Without Great Internet Kwikbit extends fiber using our next-gen wireless technology to deliver high-speed internet service to manufactured home communities.

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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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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.

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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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™

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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

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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.

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• 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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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.

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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

Contact us today for a confidential conversation.

603-545-1704 rocusa.org

Welcome to the

MANAGEAMERICA FAMILY Your Premium End-to-End Community Management + Billing Solution Join our family of companies and simplify all aspects of the your community management operations.

From tracking and screening prospects to calculating utility charges, delivering resident bills, and processing payments – we have you covered.

+ CA DBA - OFS Insurance Agency LLC

20+ Years of Experience wecanhelp@manageamerica.com . 800.747.0259 . www.manageamerica.com

REDEFINING VALUE FOR THE MH/RV ASSET CLASS BROKERAGE & ADVISORY SERVICES  CLIENT FOCUSED  DRIVEN  PROVEN RESULTS

SERVICES OFFERED IN US & CANADA

Institutional Investment Sales Acquisitions & Dispositions Distressed Assets Bank REO & Special Servicer Debt & Equity Valuation & Advisory Services

Christopher Nortley President | CEO (586) 884-8416 chris@mhreinc.com

Michel Mikkola Senior Advisor (407) 640-7046 michel@mhreinc.com

Amanda LaConte Senior Financial Analyst (407) 670-0552 amanda@mhreinc.com

MANUFACTURED HOUSING GROUP

Detroit HQ Location 12900 Hall Road, Suite 190 Sterling Heights, MI 48313

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

PANELS THAT DEFEAT THE WEED EATER FOR ALL CLIMATE NEEDS RUSTIQUE RIBB • Limited lifetime warranty to Weed Eater Damage • Engineered for Impact Durability and Wind Resistance • Patented Design - US10,378,202 • Available in Airflow and Solid • Recessed vents for a classic appearance

RAPID WALL • Limited lifetime warranty to Weed Eater Damage • Panel backed with 2 inch Thermal Star EPS below grade foam by ATLASEPS for 9R+ insulation factor • Engineer certified projected energy savings • Complies with Hud wind loading for Zones I, II, III • Over fifteen years of use in the Manufactured Home Market 1300 Rustique Square • O’Fallon, Missouri 63368 636-498-5525 • 636-447-0400 fax www.rustiquerapidwall.com • www.rustiqueribb.com