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26
50 CONTENTS
This year, we celebrate 50 years since the passage of the National Manufactured Housing Construction and Safety Standards Act, which established the manufactured housing industry’s relationship with the U.S. Department of Housing and Urban Development.
This year, over 4.1 million Americans will turn 65, which is over 11,200 people a day. There are over 2.3 million more people over 70 in the country than in 2019, and since 2019 Americans over 70 have become $14 trillion wealthier, holding 30 percent of the country’s wealth.
The San Antonio-based credit union Credit Human is headquartered near the Pearl District a short walk from downtown, and provides neighbors and visitors alike a destination area where children may take their first spring steps or where former college pals might meet to drink “rosé all day.”
66
ECONOMY
EVENTS 14 Events & Trade Shows 16 Hall Awaits New Inductees
LAND
22 Casey Homer’s Unique Path to Public Service WORKFORCE DEVELOPMENT 25 Indiana High School Builds A Modular Home INDUSTRY TRENDS
New Look Communities 38 Manufactured Housing Industry Trends & Statistics
44 State-by-State Homes Sales Heat Map
ACCESS
46 What Might Chassis Removal Mean for the Market? 56 A Unique Relationship in Housing
59 A Broad Look at Zoning EFFICIENCY / SUSTAINABILITY
62 Clayton Breaks Ground on Energy Efficient Neighborhood in Kentucky
LENDING
70 Progress on Expanding Title I for Home Finance
ADVOCACY
73 Iowa Faces Rent Control
ALLEN LEGACY
76 Identifying, Awakening Community Owners
VOLUME 7, EDITION 3 | 2024 MAY / JUNE | MHInsider.com
PUBLISHER Patrick Revere | patrick@mhvillage.com
SENIOR GRAPHIC DESIGNER Merit Kathan | merit@mhvillage.com
CONTRIBUTING EDITOR George Allen | gfa7156@aol.com
EDITORS Dawn Highhouse | dawn@mhvillage.com, Sean Vichinsky | sean@mhvillage.com
CONTRIBUTORS Mark Bowersox, Suzanne Felber, Lesli Gooch, Rick Robinson, Kellie Speed, Enon Winkler
COVER DESIGN Merit Kathan
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
MHInsider™ is published by: 2600 Five Mile Road NE Grand Rapids, MI 49525 (800) 397-2158 www.MHVillage.com 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 ©2024 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. HAPPENINGS 8 Industry Happenings
Manufactured Housing Industry
10 State of the
USE
34
ZONING
It’s a Benchmark Edition in a Pivotal Year publisherFROM THE
The 2024 State of the Industry edition of MHInsider magazine is packed with news, trends, information, and statistics. It is a reader favorite, and the keystone within our annual publication schedule. On that note, MHInsider is in its 7th year of publishing and the May/June edition marks our 40th, which represents about 1,600 pages of manufactured housing industry news.
The number of homes built and sent to homeowners each of those years either held steady or was an increase from the previous year, until 2023 when inflation took hold and interest rates rose. Still, the industry was able to deliver nearly 90,000 sections, and home sales in 2024 year-over-year look improved and are poised to get better yet.
In the 2024 State of the Industry edition you will find an industry overview from Other Street’s Enon Winkler, a celebration of the industry’s 50-year relationship with HUD; “A Unique Relationship in Housing”, our annual trends and statistics infograph, and a look at how one state managed pending rent control legislation.
Manufactured housing professionals nationwide are poised to expand in a great number of meaningful ways, including individual home sales, innovative building practices, thoughtful community design, and outstanding service options for our customers.
Patrick Revere is vice president of communications at MHVillage and publisher for the MHInsider magazine and blogs. His background is in print news, language, and communication.
4 | 2024 MAY / JUNE
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INDUSTRY happenings
Transactions
Northmarq Transacts Two
Pennsylvania Communities
Manufactured housing community brokerage Northmarq reported the recent sale of Red Maple Acres and Mayo’s Mobile Home Park, totaling 277 homesites in the Lehigh Valley, Pa. region. The communities were built in 1960 and 1950, respectively, and are within two miles of each other on a combined 63-plus acres.
North Carolina Owner Purchases
Five Properties
FG Communities Inc., a Mooresville, N.C.-based company, has purchased five properties with 173 homesites in Gastonia, Graham, Morganton, and Statesville.
Minneapolis Modular Plant
Purchased for $11.8
Million
George Modular Holdings, LLC has purchased a modular housing facility in Minneapolis for $11.8 million. The facility
has nearly 93,000 square feet, and can accommodate about 300 employees.
Crow Holdings Purchases 46 Properties
National real estate investment and development firm Crow Holdings has acquired a privately-held 46-property portfolio with 9,838 homesites in Florida, Illinois, Indiana, Missouri, Montana, and Ohio. Crow Holdings stated it has plans for $30 million in upgrades across the properties. "These improvements are tailored to the needs of the communities, from improved safety – roads, lighting, fencing – to amenity renovations and additions based on resident feedback,” Managing Director Dustin Viktorin said.
Washington Developer Plans
Luxury Community
East Blaine, Wash. Developers JLJ Corporation have presented plans to build Creekside at The Ridge, a gated community of about 150 modern manufactured homes in a landscaped community with a clubhouse, outdoor living space, and activities in a natural setting. The company anticipates building its first homes in the facility during the fall of 2024.
Vermont Gets Funding for Communities
Vermont Gov. Phil Scott along with the Agency of Natural Resources have announced $13.3 million in Healthy Homes Initiative awards and $2.2 million in Three-acre Stormwater Initiative awards to help 46 manufactured housing communities repair, replace, and upgrade water infrastructure. Funding covers assessment of needs,
HAPPENINGS
8 | 2024 MAY / JUNE
contracting firms, technical and permitting assistance, and construction. Most of the awards will address problems with inadequate or failing wastewater, drinking water, and stormwater systems. “This initiative shows exactly why it was so important to invest American Rescue Plan Act funding in infrastructure that helped families and communities across the state,” Scott said.
Industry Giving
RHP Adopts a Classroom in Austin
RHP Properties, a Michigan-based owner and operator of manufactured home communities, has continued its efforts in helping students across the country by adopting a classroom, this time Langford Elementary in Austin, Texas. RHP will provide $10,000 for the purchase of educational materials through AdoptAClassroom.org, the nationwide nonprofit that provides classroom funding for pre-K through 12th grade educators. The donation marks the 13th school RHP Properties has adopted through the program and a total of $130,000 donated to date, to support schools where residents of RHP communities attend.
Personnel
Legacy Communities Names New Executives
Legacy Communities has named its Chief Operating Officer Andrew J. Fells as the new company president. “He offers a lifetime of experience within our industry, from shaping a large family-owned MH & RV Community into a premier flagship property to managing over $2.5 billion in assets across 75 communities nationwide,” Legacy Communities CEO Patrick O’Malley said. Brad Valka, a results-driven executive with a BBA in accounting and general business, will be the new COO.
Cavco Honored for Training Standards
Cavco Industries was recognized by 2024 Training APEX Awards as one of the top 105 training organizations in the world, receiving a Best Practice award for its Master of Craft program. The annual award, given by Training magazine, acknowledges the company’s steadfast approach to fostering skill growth and career development for its team members. "Several years ago, we made a strong commitment to aggressively develop learning and
development as a core competency," Cavco President and CEO Bill Boor said. "In just a short period, our innovative learning programs have been growing everyone from new team members to high-level management.”
Palm Harbor Plant City GM Retires
Palm Harbor/Cavco’s Mike Draper, the general manger of its facility in Plant City, Fla., retired on April 3 after 41 years with the company. A 46-year industry veteran, Draper did far more than help Palm Harbor Homes and its employees, he made it his mission to help all. One of his many impacts was felt by area homeowners who had fallen victim to hurricanes and tropical storms. Draper would quickly dispatch service trucks to provide people in need with exactly what they needed, whether it was food, water, or other supplies. The company and industry will miss him and the positive influence he had on so many.
In Memoriam
Industry Mourns Passing of Texas Retailer
Donald F. Dempsey, who built one of the largest manufactured home retail businesses in Texas, has passed away at the age of 89. He died March 5 in Austin. Mr. Dempsey was an Air Force mechanic during the Korean War and went into real estate in Austin and built homes in Rollingwood and Westlake before opening Village Homes. Colleagues said Mr. Dempsey was known for his “resilience and adaptability, overcoming challenges with a fierce intellect and sheer determination.”
Cavco Lead Designer Passes Away
The industry lost a legend on Sunday, April 14, with the passing of Palm Harbor/Cavco’s Vice President of Design Margie Wright. For 29 years, Mrs. Wright was one of the company’s most influential, inspiring, hard-working, and gifted team members. For her, success was about more than her accomplishments. It was about how she could help, influence, and inspire. “Margie’s drive to always make our homes look their best was undeniable and persistent. We will miss her very much,” Cavco CEO and President Bill Boor said.
MHINSIDER.COM | 9
State of the
MANUFACTURED HOUSING INDUSTRY
By Enon Winkler
Commercial real estate interest rates historically follow a decrease in the Fed funds rate but also are influenced by the issuance of 10-year treasuries, quantitative tightening, investor confidence, the stock market, and stability in the world.
As the owner of OtherStreet Advisors, a nationwide brokerage firm specializing in the manufactured home communities and RV resorts, our team remains vigilant in monitoring critical factors impacting investors, community owners, and residents. In today's dynamic economic landscape, understanding these factors is paramount to assisting the sector in making informed decisions.
General Economy
While the U.S. economy continues to demonstrate resilience, inflationary pressures have introduced considerable uncertainty over the past year and a half. High inflation rates have triggered fluctuations in the debt markets, prompting many investors to re-assess their acquisition strategies. The surge in commercial mortgage rates, driven by a steep increase in the 10-year treasury yield over the past two years, has contributed to this cautious sentiment and in many cases led to investors putting their pencils down and watching.
However, what seems to be recent stabilization in the treasury yield has reignited investor confidence, most of whom are sitting on large sums of cash, leading to heightened activity in 2024 compared to the previous year. Nonetheless, the widening price gap between buyers and sellers remains a challenge. This was evident in 2022 where park sales decreased dramatically, especially
10 | 2024 MAY / JUNE
ECONOMY
in the first three quarters of the year exacerbated by the lingering effects of inflation and interest rate volatility. Amid these developments, many believe based on the recent Federal Reserve meeting that rates could decline 50 to 75 basis points in 2024, which could increase sales activity. However, it's essential to acknowledge that commercial real estate interest rates historically follow a decrease in the Fed funds rate but also are influenced by the issuance of 10-year treasuries, quantitative tightening, investor confidence, the stock market, and stability in the world. Despite the prevailing economic uncertainties, the community sector continues to demonstrate resilience, driven by the persistent demand for affordable housing. The recent stabilization in commercial real estate debt signals a positive outlook for investors seeking opportunities in this sector. Moreover, potential interventions by the Federal Reserve to lower interest rates could help bridge the gap in value expectations between buyers and sellers, fostering a more balanced market environment.
Important Factors to Consider for Community Owners
Inflation
Rising inflationary pressures have significant implications for both residents and community owners. Rent increases, driven by escalating operating costs, pose challenges for residents, particularly those on fixed in-
comes. Moreover, community owners must factor in the cost of taxes, insurance, utilities, and maintenance, while also budgeting for critical capital expenses to maintain infrastructure and amenities. It’s a challenge.
Rent Control
The proliferation of rent control measures presents a formidable challenge for the manufactured housing community sector. For residents it seems to be a benefit initially, but it’s important to note that rent control can hinder an owner’s ability to realize returns and invest in community enhancements. It also dampens investor interest in new communities. Striking a balance between affordability and sustainability is imperative to ensure the well-being of both residents and owners.
Tax Increases Upon Sale
Sellers and buyers alike must consider the potential impact of tax increases triggered by a property sale. Prudent buyers factor in these considerations when evaluating a property, highlighting the importance of owners understanding the future tax implications upon a sale will have on future owners. Often owners are given evaluations that do not take potential tax increases upon a sale into consideration, which creates pricing expectations that cannot be achieved. »
MHINSIDER.COM | 11
Palm Valley in Oviedo, Fla.
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Technology
The sector is undergoing a technological revolution, fundamentally transforming how owners oversee their communities. This wave of innovation encompasses various advancements, including smart locks enabling remote unit access via smartphones, streamlined online applications and payment systems, efficient texting services facilitating instant communication with residents, cost-effective video monitoring solutions offering remote surveillance capabilities, as well as enhanced community management platforms and resident engagement apps. These technologies collectively empower owners with unprecedented control, efficiency, and connectivity, ushering in a new era of management excellence in mobile home communities.
Seller Financing
Our team has seen an increasing trend of sellers offering financing at competitive rates, presenting a viable solution to address pricing disparities and to facilitate successful transactions. Sellers are also exploring tax benefits that can be beneficial and enjoying the benefits of receiving a monthly payment.
Aging Infrastructure
Many manufactured home communities and RV parks grapple with aging infrastructure, posing significant operational and financial challenges. A large percentage of communities were built more than 30 years ago and are now facing life expectancy issues with wastewater treatment plants, septic systems, deteriorating water, sewer and electric lines, all of which are uncovered during the buyer’s due diligence inspections. It’s important for owners to perform proactive maintenance and upgrades that are essential to address deteriorating systems and ensure the long-term viability and value for their communities. In addition, government regulation has dramatically changed from when most of these communities were developed. This can create unforeseen challenges when trying to bring infrastructure up to code.
Zoning
Zoning poses a growing concern for community owners. It’s increasingly common to have a property go through rezoning leading to their community being recognized as a non-conforming land use. While some municipalities may grandfather in the original development, others impose stringent regulations, presenting challenges for owners. For instance, a non-conforming status can impede the addition of new homes, replacement of existing units due to updated setback requirements, and repair or replacement of private utility systems. Understanding how municipalities approach zoning changes is crucial for owners, as unfavorable regulations can adversely impact the community's viability and future development prospects.
In summary, navigating the complexities of the manufactured housing community sector requires a comprehensive understanding of economic trends, regulatory dynamics, and operating costs. By staying informed and adopting proactive strategies, investors and community owners can capitalize on emerging opportunities while effectively managing challenges, ultimately contributing to sustainability, growth, and happy residents within an affordable housing space. MHV
Enon Winkler, the founding partner of OtherStreet, is a visionary leader who shapes the trajectory and growth of the company. With a keen focus on team member development, fostering relationships, and strategic planning, Winkler's leadership has propelled OtherStreet to new heights. With a wealth of experience in the manufactured housing industry, his track record speaks volumes, having facilitated transactions exceeding $3 billion in investment property sales.
MHINSIDER.COM | 13 ECONOMY
MHWC NEW HOME WARRANTIES 800-247-1812 x2188 sales@mhwconline.com www.mhwconline.com Written Insured Warranties for Manufactured Homes RISK MANAGEMENT MADE SIMPLE
Events trade shows &
INNOVATIVE HOUSING SHOWCASE/ MHI ON THE HILL
Friday, June 7 — Sunday, June 9
Washington, D.C. | National Mall
The U.S. Department of Housing and Urban Development each year during National Homeownership Month hosts the Innovative Housing Showcase to provide a large, public display of innovative designs, structures, and advances in housing, particularly with a mind toward energy-efficiency, durability, and availability. Homes on display at the National Mall will include manufactured homes from Cavco and Champion.
SUMMIT ON HOUSING SUPPLY SOLUTIONS
Tuesday, June 11, 2024
Washington, D.C. | Terwilliger Center for Housing
MHI is pleased to sponsor the upcoming Terwilliger Center Summit on Housing Supply Solutions on June 11. This day-long summit is dedicated to finding bipartisan solutions for the nationwide housing crisis. MHI CEO Dr. Lesli Gooch will lead a panel about the opportunities and challenges in increasing attainable housing supply with manufactured housing. Registration is available for in-person and virtual attendance.
TENNESSEE HOUSING ASSOCIATION ANNUAL MEETING
Sunday, June 9 — Tuesday, June 11, 2024
Pigeon Forge, Tenn. | Dollywood’s Heartsong Lodge and Resort
Tennessee Housing Association for its 2024 Annual Meeting carries the theme “Make EVERY Connection Matter”. The event takes places at Dollywood’s newest lodge, and will include a reception dinner, general meeting, golf outing, and educational sessions. Sponsorship opportunities remain available.
FLORIDA MANUFACTURED HOUSING
ASSOCIATION ANNUAL CONVENTION
Wednesday, June 12 — Thursday, June 13, 2024
Orlando, Fla. | Hyatt Regency Orlando
There is a return to Orlando with the FMHA Annual Convention, where members and guests will find help from other manufactured housing professionals in making connections or learning best practices. There will be an economic update, a review of recent and pending legislation, a disaster recovery update, and other trending topics in Florida and around the country. Attendance, exhibitor, and sponsorship opportunities are currently available.
14 | 2024 MAY / JUNE
EVENTS
2024 MHCA ANNUAL CONFERENCE AND GOLF TOURNAMENT
Wednesday, June 19 — Friday, June 21, 2024
Hilton Phoenix Tapatio Cliffs Resort | Phoenix, Ariz.
MHCA offers a prime locale to meet, exhibit, and shop for the latest industry developments and trends. With awe-inspiring views and a day of great golfing, Manufactured Housing Communities of Arizona invites manufactured housing professionals for a productive three-day outing in the desert. Exhibit and sponsorship opportunities are available!
MANUFACTURED HOUSING INSTITUTE OF SOUTH CAROLINA SUMMER CONVENTION
Monday, June 24 — Wednesday, June 26, 2024
Myrtle Beach, S.C. | Hilton Oceanfront Resort
MHISC is meeting at the Hilton Oceanfront Resort for its annual summer gathering. It will host a golf tournament, committee meetings, and a state hall of fame awards ceremony and dinner. Join other manufactured housing professionals at the beach for networking, learning, and industry development. Exhibitor and sponsor opportunities remain, please contact the association for details.
If you have an event or gathering
www.mhvillage.com/pro/manufacturedhousing-industry-trade-shows/
MHINSIDER.COM | 15
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Hall Awaits New Inductees
On Aug. 19, the RV/MH Hall of Fame will celebrate the 2024 class of inductees, five from each industry.
“Our selection committees held meetings to review in detail all the nominations submitted for consideration of induction in the 2024 class of the RV/MH Heritage Foundation’s Hall of Fame,” Hall of Fame President Darryl Searer said. “The committees were impressed with the number and quality of nominations. Each year a maximum of five people associated with each industry are chosen.”
The gala event will take place at the Heritage Foundation museum and conference facility in Elkhart, Ind. The following individuals have accepted the Hall of Fame’s invitation for induction and to attend the 52nd annual induction ceremony.
“Please come celebrate these well deserving inductees at the dinner event, which each year hosts hundreds of participants and friends of our industries... We are excited to recognize this incredible group of people who have made important contributions to the growth and development of the RV and MH industries.”
–Darryl Searer
EVENTS
16 | 2024 MAY / JUNE
Manufactured Housing Inductees
CHARLIE HEMPHILL
Clayton Homes Morristown, Tenn.
Charlie Hemphill began working on the utilities team at the Clayton Halls facility in Knoxville, Tenn. in 1974 and quickly moved through the ranks as a team leader, coordinator, assistant production manager, and production manager. He was the general manager for Clayton in Oxford and became the GM at the Clayton Norris facility in Bean Station, Tenn.
“Charlie’s manufacturing facility, Norris Homes, has always been viewed among the most capable facilities in our company,” Clayton COO and President of Manufacturing Rick Boyd said about Hemphill in one of the nomination letters. “Norris has built everything from a three-story apartment building on Long Island to a four-story dormitory at Appalachian State. Each of these very successful projects were marked by meticulous planning and flawless execution.”
Clayton President Kevin Clayton, the primary nominator, stated that the Norris Bean Station location under Hemphill’s leadership managed to raise its Net Promotor Score to 73 percent and the location’s employee engagement score to 74 percent.
Sam Landy is the president and CEO of UMH Properties, a thriving company under his father’s leadership that has grown by 115 properties and about 20,000 homesites in the second generation of family management. UMH is traded on the New York Stock Exchange, providing a high profile for the industry. Landy advocates nationwide for attainable housing and has been instrumental in securing favorable financing for all-rental manufactured home communities.
“Sam Landy has always been passionate about showing affordable manufactured housing in a positive light and in the past several years he merged this passion for promoting manufactured housing with his unwavering industry support,” MHI President Mark Bowersox said about Landy in one of the nominating letters. “He worked closely with his manufacturing partner, with MHI, and with a variety of federal government agencies to display manufactured homes on the National Mall as part of the Innovative Housing Showcase. This program gave the entire industry unprecedented access to policymakers, many of whom were able to walk inside a manufactured home for the very first time.”
Assurant Sales Leader John Loucks, another of his nominators, said Landy is a leading industry innovator who constantly is focused on bringing value for his community residents. “In my experience as a partner for insurance solutions, Sam insisted on offering value to residents beyond risk mitigation for his communities. On a personal note, Sam loves, and has a loving, family. He is guided by his faith. He enjoys horses and horse racing… and I am looking forward to seeing Sam in the HOF winner’s circle.”
MHINSIDER.COM | 17
SAM LANDY UMH Properties Freehold, N.J.
KAMAL SHOUHAYIB
Choice Properties
Troy, Mich.
Fifty years ago Kamal Shouhayib founded what would become The Choice Group, a highly successful real estate development and management company that specializes in creating beautiful communities with manufactured homes. Born and raised in Aley, Lebanon, in 1967 Shouhayib chose to attend Michigan Tech to study civil engineering, and decided to make the Michigan city of Troy his adopted home. Though he spends much time and great effort in Aley, he and his family continue to reside in southwest Michigan, with his wife Yasmine and sons Rob and Omar working in the business.
The Choice Group and its affiliates include Choice Properties, Choice Development, Choice Marketing, and Choice Finance. The company owns and manages manufactured home communities, as well as other real estate investments, in the Midwest down to Texas and in to Arizona. It has 75 employees, and a portfolio valued at more than $150 million. The company develops and manages a broad range of communities, from affordable manufactured home parks to gated enclaves with resort-style amenities.
“Knowing Kamal since the early ‘90s, I have seen him lead and grow his family, friends, and businesses. He has accomplished great success with all three,” Skyline Champion Director of Sales and Business Development Byron Stroud said. “Knowing his children very well, I’ve seen Kamal nurture, educate, and lead them into taking over their diverse real estate holdings. He has taken care of his family in both the United States and Lebanon… logistics that are only accomplished with a big, loving heart.”
NATHAN SMITH
Flagship Communities
Fort Mitchell, Ky
In 1995 Nathan Smith and Kurt Keeney founded SSK, a single-community organization in North Kentucky that would become publicly-traded Flagship Communities with nearly 70 properties across Arkansas, Indiana, Illinois, Kentucky, Missouri, Ohio, Tennessee, and now West Virginia.
“Nathan’s most important contribution is the connection between our industry and those interested in America’s housing needs,” said Kentucky Retailer Amie Hacker, Smith’s primary nominator for the Hall of Fame. “He works tirelessly to demonstrate the affordability and the attainability of our products to key businesses and political leaders. His ability to build relationships with key individuals translates into our products being in the conversation for attainable housing solutions locally and nationally.”
Smith has held leadership positions within associations in multiple states as well as at the regional and national level, including as MHI chairman, and has been the chairman of the MHI-PAC since 2015. Flagship Communities in 2023 was awarded by MHI the Community Impact Project of the Year, the Retail Sales Center of the Year, and was recognized as the Community Operator of the Year.
EVENTS
18 | 2024 MAY / JUNE
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TODD SU
Advantage Homes
San Jose, Calif.
RV INDUCTEES
California retailer and manufactured housing advocate Todd Su, nominated by Hall of Fame Barry Cole, has been in the industry for 27 years, and during that time has built one of the largest home sales organizations in the state.
“For many years Todd has been actively involved in local, state, and national efforts to advance and support manufactured housing through the California Manufactured Housing Institute and the Manufactured Housing Institute,” fellows retailer and advocate Leo Poggione stated in his nominating letter. “Also, Todd has such an impressive business model that he has been a five-time winner of the MHI’s Retailer of the Year.”
Su gives to the industry, he provides services within the localities where he does business, and he provides for residents in California communities, giving backpacks for students, holding egg hunts on Easter, making young people’s dream come true through “Make a Wish Foundation”, and has even provided a new home to surviving victims of a home fire.
DON CLARK • Manufacturer – Grand Design – Elkhart, Ind.
TERRY ELIAS • Manufacturer – Triple E RV – Manitoba, Canada
PHIL INGRASSIA • Association – RVDA – Fairfax, Va.
JEFF RUTHEFORD • Supplier – Airxcel – Elkhart, Ind.
BRIAN WILKINS • Dealer – Wilkin’s RV – Hornell, N.Y.
EVENTS
20 | 2024 MAY / JUNE
January 15-17, 2025 The Midwest’s Premier Event for Manufactured Housing Professionals Produced by the Midwest Manufactured Housing Federation and Its Five Member States: Illinois Manufactured Housing Association Indiana Manufactured Housing Association Kentucky Manufactured Housing Institute Michigan Manufactured Housing Association Ohio Manufactured Homes Association SHOW MANAGED BY: Learn About Sponsorship Opportunities and Receive Show Updates at TheLouisvilleShow.com DATE! SAVE the LOUISVILLE, KY KENTUCKY EXPOSITION CENTER
CASEY HOMER'S UNIQUE PATH TO PUBLIC SERVICE
The Story of a Small, Emerging Town in Texas
By Kellie Speed
the mayor leads City
Von
staff commissioners through an appeal to Bexar County Commissioners Court for funding on a sewer project.
22 | 2024 MAY / JUNE LAND USE
At left, Homer is pictured with Rep. John Lujan at the Texas State Capitol. At, top, is High Plains Ranch, Homer’s community in Amarillo. And above
of
Ormy
Casey Homer went to a small town near San Antonio to build a manufactured home community and eventually became mayor.
“I bought one community in Von Ormy and that was my first taste of development,” Homer said. “I think one of the keys to success is implementing quality property management.”
As president of Homer Investments, LLC, the Houston native owns, operates, and develops manufactured home communities in Texas.
“My initial intent was that I wanted to invest in something long term,” he said. “I have always been interested in real estate. My grandpa would coach me when I was young and was one of my initial inspirations. I started off buying and selling and then got into higher quality markets. I have done 13 different deals since 2013 focused on central and western Texas.”
Homer graduated with a finance degree from Texas A&M University in 2013. He also commissioned as an officer in the United States Marine Corps where he served eight years active and reserve duty, retiring as a Captain in 2021.
“When I was starting out in 2013, I was trying to figure out how to invest and had no money,” he said. “It was talking suggested I take out a uniform loan to start up as a new officer. I started buying and selling homes in 2013, working with park owners to fill vacant sites.
After that I got into parks myself, purchasing my first community as an equity partner in 2014.”
Homer now has six parks to his credit that span from San Antonio to Amarillo.
“I bought the community in Von Ormy in 2021,” he said. “I saw the city growing in every direction.
Soon after, Homer decided to run for mayor of Von Ormy and was elected, taking office in May 2023.
“Von Ormy is so close to San Antonio, but they didn’t have internet or modern-day sewer, if you can believe it,” he said. “I was surprised to find that was not the case, so I wanted to help the city bring in sewer. I saw a lot of opportunity and demands for growth, but ultimately, I wanted to achieve sewer.”
Von Ormy is also one of the newest cities in Texas, having been incorporated in 2008. The growing city has a population of only 1,200 and no city property taxes.
Located just 16 miles from San Antonio, the once remote area is now a thriving community with much thanks to Homer, now offering lots of investment opportunities in the greater southwest Bexar County region.
“I ran for mayor to help the city of Von Ormy. Neighbors were encouraging me to run.
It wasn’t a path I envisioned for myself, but I ended up going door to door and the voters were all in agreement with me. It has been an incredible learning experience and has turned out to be a very valuable experience. I am proud to say they now have high-speed fiber internet.”
Now as an elected official, Homer has faced another challenge.
“I can no longer represent myself to city government on projects I am affiliated with and have to recuse myself,” he said. “There are some overlaps and conflicts, but I follow state law regarding ethics and conflicts of interest disclosures.
“I’m a mobile home park nerd and try to represent our industry in the best light with all the local governments I work with,” he said. “The MH stigma is still alive and something we all battle with, but it couldn’t be more wrong. There are some really good people in the industry, and I am proud to be part of it.”What does Homer think the future holds for Von Ormy?
“A lot of these metro areas are getting so many people moving to them, so a lot of housing units are going to be needed,” he said. “I’m bullish long term. I want to continue to do good deals with good people.” MHV
Kellie Speed has more than 20 years’ experience writing for a variety of publications, including Realtor. com, Haute Living, U.S. Veterans magazine, DiverseAbility, and Forbes Global Properties. She can be reached at kkspeed@aol.com.
MHINSIDER.COM | 23
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INDIANA HIGH SCHOOL BUILDS A MODULAR HOME
By Rick Robinson
Perry Central High School in rural Indiana had a logistics problem with their construction class –travel. Students in the class had long commutes to construction sites.
Perry Central decided that rather than having students drive to project sites, they would bring the construction project to the school.
The result is that students in Perry Central’s construction class are building a modular home on a factory floor located on the school’s campus. Once completed the school will be donating the house to Habitat for Humanity. When the home is set, a deserving staff member from Perry Central High School will occupy the house.
The result has been the production of a docuseries entitled “From Bookwork to Blueprints — A High School Class Builds a Modular Home.” The docuseries is available on the ManufacturedHomes.com YouTube channel. Episode 4, “Students Visit Homes — Tackle Roofing” is about to be released as of this writing.
The episode follows the students during a January visit to the 2024 Louisville Manufactured Housing Show as they tour homes and meet with industry professionals. Their experience on the show floor will be included in a future episode of the docuseries.
The response from students was impressive.
Students who signed up to experience this revolutionary, hands-on teaching method ranged from those interested in getting a job in the construction trades to others just wanting to have a basic understanding of how to do home repairs.
Once the project started, the teacher of the class reached out to retailer Jason Sillings of Grandan Homes in nearby New Salisbury, Ind.
“I was impressed by the scope of the project,” Sillings said. “I contacted ManufacturedHomes.com and we immediately began capturing class progress on video.”
The approach taken by Perry Central High School is revolutionary in offering hands-on construction experience to its students and can serve as a beacon to other schools seeking to add workforce education into their curriculum. MHV
Rick Robinson joined ManufacturedHomes. com as its executive vice president of industry relations after spending time in Washington, D.C. as general counsel and senior VP at the Manufactured Housing Institute. He is an author and also plays electric mandolin in an Irish punk rock band. When he is not talking, writing, or singing, he can be found knee deep in a cold river silently pestering trout.
MHINSIDER.COM | 25
WORKFORCE DEVELOPMENT
NEW HORIZONS for 55+ Communities
By Suzanne Felber
INDUSTRY TRENDS
Photography by Lisa Stewart
A few years ago, my 87-year-old parents decided that it was time to downsize and move closer to family, and there were a lot of discussions about where to live and what type of community they wanted to live in. They chose a senior living community close to my youngest sister, and we have all agreed that it was one of the wisest decisions they could have made. They have new friends with whom they dine and do different activities, and even though at 93, they still say they "don't want to live with old people," moving to a senior living community was the right choice for everyone. Today's seniors are healthier and wealthier, and they will have the opportunity to live long, full lives.
Visiting senior living communities and learning about what is available and the costs for a community like theirs has really stepped up my interest in manufactured housing in 55+ communities. When I think about all that we can offer, for a lot more value, are we missing out on marketing more to this 55+ buyer? »
MHINSIDER.COM | 27
The great thing about manufactured housing communities is that there is something for everyone, from the most modest community with no amenities or added services to a community like Pueblo El Mirage by Roberts Resorts that is truly resort-style living. This 55+ community just west of Phoenix has an 18-hole golf course, 26 pickle ball courts, and a resort-style pool. Their calendar is full of activities and clubs to keep residents as busy as they choose to be.
This year, over 4.1 million Americans will turn 65, which is over 11,200 people a day. There are over 2.3 million more people over 70 in the country than in 2019, and since 2019 Americans over 70 have become $14 trillion wealthier, holding 30 percent of the country's wealth.
Traditional senior living communities have noticed these trends, and many communities are changing their apartments and amenities to try to attract more of these customers. But, by offering apartments that have housekeeping, dining, and other services as optional, they have been able to attract a resident who is still out and about, possibly traveling every chance that they get,and possibly even going to the office every day. So what can manufactured housing communities offer that these customers might not be able to get anywhere else? The opportunity to own your own home while not having the expense of owning and
maintaining the land that it is sited on. Owners can still take advantage of services offered by the community, which could be a big draw for many clients. Here are some ways that you can set your 55+ community apart from the competition.
Aging In Place
According to AARP, aging in place is a big business that will continue to expand in the years to come. People want their independence, but also want to know that there are services and staff nearby when needed. Health and wellness is a huge concern for all seniors, and the licensing hurdles for assisted living communities can be overwhelming in some states. There are new, innovative ways to help residents get the care that they need without ever leaving their community.
Insurance companies are realizing that offering plans that even include food, social support, and wellness are making more sense, and keeping their insured healthier. Companies like Kroger and Amazon are tapping into this new opportunity — Kroger now has in-store health clinics in 35 states. There will be a lot more of this to come. Think about how this might be a growth area for your community as well.
Make sure that your homes are designed for this important niche that you are marketing to. The residents »
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may not want grab bars when they move in, but it is important to think ahead and make sure that the walls are blocked in strategic areas to accommodate these safely. Hallways and doorways should be wide enough to easily allow wheelchair access. A separate, larger shower is a must, preferably barrier-free. At the recent Kitchen and Bath Industry Show, TOTO shared how important cleanliness is for seniors and how having the proper height toilet can help with mobility. These features no longer need to have an institutional look — they can be as beautiful as they are practical. Homes should be as close to ground set as possible, allowing residents easy access to their new homes.
Remember when doctors made house calls? That trend is reappearing in retirement communities where a nurse practitioner or physician will come to the community to see residents, and the visit is billed directly to the resident. Telehealth is another popular way to keep residents healthy without ever leaving home. Physical therapy is another popular third-party service where the therapist can come and train the resident right in your community health and wellness center.
Concierge Services
Move In Services
What services does your community offer to make sure that moving into your community is seamless and a positive experience? Partner with Realtors®, downsizing specialists, movers, and estate sale companies that can help make downsizing and moving into your community a great experience.
Maintenance / Construction Providers
Residents always have something that needs to be fixed or replaced, big or small. Have a list of some third-party contractors for whom you have received referrals that can help your residents with these projects. A staff maintenance person may be available to make certain simple modifications, but if you can refer someone, that will take you and your community out of the day-to-day challenges that maintaining a home can bring.
Third-Party Care Providers
What many communities are learning is that by partnering with a third-party agency, they can provide home health care, and their residents can stay in their homes longer while getting the help that they might need.
One of the wonderful indulgences when staying at a luxury resort is having your own concierge available to get you reservations at that restaurant that you have always wanted to try or to get you tickets to the hottest play on Broadway. Why not offer that same service in your community? Have a staff member who is available to residents during specific hours to help them with whatever their needs are and to help them find people who can perform special tasks for them that they can’t, or don’t want to, take care of themselves. Dog walkers, personal shoppers, dry cleaning and laundry services, and grocery deliveries are some of the tasks that come to mind for which someone would be happy to pay a premium.
Building a relationship oriented team isn't only about offering concierge services. If you have an entire staff that creates relationships with your residents they can help identify issues that are happening in the community before they become larger problems. Constant communication with your residents not only builds trust but also creates referrals for your sales team.
Food Delivery Services
Make an arrangement for a local food delivery service to deliver meals for your residents. This can be through the local restaurant themselves or through a service like Uber Eats or Favor. Having this service in place for »
30 | 2024 MAY / JUNE INDUSTRY TRENDS
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residents makes it easy for them to enjoy a delicious meal without ever leaving the community, but you don't have the expense and liability of operating a restaurant. You could even have evenings with local restaurants where they could offer a special meal in your clubhouse or deliver it directly to the residents at an affordable price.
Food Truck Friday
Create an area in your community where food trucks come on specific days and have different dishes available for sale. This is a fun and easy way to offer dining services to your residents.
Transportation
Scheduling an Uber or Lyft may be second nature to us, but to some seniors it is a foreign concept. Many cities now have car services just for seniors who understand the senior living opportunities and can make a trip to the doctor's office or to the post office stress-free. Identify one of these companies in your area, and share them with your residents.
Wellness Checks
Offering a plan for how residents can have someone know that they are OK every day without sacrificing their independence is a big benefit of living in a community. It might be something as simple as turning on a specific light in their home daily or having them call the front desk. This can provide peace of mind for family members as well.
Online Marketing
Having a robust, easy-to-understand website is critical in today's market. We have all gotten used to having information at our fingertips, and if we can't find what we need immediately, we move on to the next source. Silver Point Senior Living, a New Senior Living Management company, shared that over 85 percent of all of their inquiries come from digital / web-based leads. Does your website accurately reflect your community and the people who live there, or are you using stock photography that shows something different?
What the customer will experience when they visit your community?
What is the process for receiving an inquiry to tour your community? Do you track your speed-to-lead timeline? When there is a gap in connecting potential residents to a qualified salesperson, the customer can lose interest and move on to your competitors. If you don't have the resources to have someone on staff to handle leads and inquiry calls, consider using a resource like MHVillage that can help you capture more leads and turn them into sales.
The best way to capture online demand is to add the personal touch of your sales team and community. Differentiate yourself from your competitors, and follow up with a handwritten thank you note. It is a small touch that won't be forgotten.
Have you looked at your community's reviews on Google and on social media platforms like Facebook? This is where potential customers often start their search and rely on reviews before moving forward to your website.
Most 55+ customers are on a different timeline than what we see in many all ages communities. Many would like to consider this the last move that they will be making and want to be sure that the decision that they make is the right decision. Get creative in your approach. Constant communication with your residents before and after the sale is critical.
Changing the way that you think about added services and how you market to 55+ buyers can create a real estate footprint with added ongoing revenues.
By creating trust and transparency with your residents at the beginning of the sales process, you can have fewer issues when they move in and are actively part of your community. MHV
Lifestylist Suzanne Felber has been active in the housing industry for more than 30 years. Felber realized that factory-built housing was the housing of the future, and has been actively working to promote the lifestyle ever since. She started American Housing Advocates as a way to share the great news about manufactured housing. To learn more about her work, visit www. lifestylist.com and www.americanhousingadvocates.com, or read her @lifestylist social media posts
MHINSIDER.COM | 33 INDUSTRY TRENDS
NEW LOOK COMMUNITIES
By Suzanne Felber
Photography by Lisa Stewart
The perception of what manufactured housing can offer is changing, especially when it comes to community living. One of the questions that buyers always have when they visit a retail center is “where can I find land” to site my home. Companies like The Reserve Communities are now giving them attractive, affordable options.
The Reserve at Copano Bay is a beautiful example of this approach. If you have not heard of Rockport, Texas, you will soon. This city is located on the Copano and Arkansas bays, just minutes from the Gulf of Mexico. Rockport is surrounded by state and national parklands, fishing piers, and sandy beaches, but it still offers an affordable coastal lifestyle that is getting harder to find. Nearby Corpus Christi has an international
airport along with a wealth of health services, shopping, and cultural offerings. It is also a popular haven for
seniors trying to escape the Florida crowds or harsh northern winters.
Stonetown Capital has been investing in manufactured housing since 2018 and started The Reserve
Communities to build new landlease communities that could offer resort locations with amenity-rich facilities and services available to all residents. With over 700 home sites at The Reserve at Copano Bay, potential residents can tour model homes that are staged and available in the community, built by some of the nation's finest homebuilders, including Cavco In-Neighborhood, Clayton, and Skyline Champion. The temporary sales office is located in a Cavco-built home that is a model that customers can purchase. Customers can experience the quality offered in today's manufactured homes. When complete, the beautiful new community center and sales office will be overlooking Copano Bay, which has stunning views, a lighthouse nearby,
34 | 2024 MAY / JUNE INDUSTRY TRENDS
and some of the best bird watching in the country.
What makes this community particularly enticing to potential buyers is that not only will there be an all-ages area, but The Reserve will also have 250 homesites in a gated area that will be a 55+ community. This area is called Costa Palms and offers its own community center, green spaces, and bay views. Both places will offer community-led activities, walking paths, and a community pier ideal for fishing or just enjoying the view and seasonal breezes. With aging in place being such an essential topic to homebuyers, homeowners can live in a 55+ community but still have their
family living nearby. Offering this way to have independence while still having family and friends nearby is a trend we expect to see more of in the coming years.
Other Reserve communities are open or coming soon. The Reserve on Sleepy Hollow in Conroe, Texas has just opened, The Reserve at Flores Valley in San Antonio, and The Reserve on McKinney in Denton, Texas are under construction. It's exciting to see the impact that communities like these are making on how people think about manufactured home lifestyles and how this can possibly change the entire direction of our industry. MHV
MHINSIDER.COM | 35
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HOME SALES HEAT MAP
STATE-BY-STATE
HOMES SOLD • 2023 0 500 1,000 3,000 7,000 11,000 INDUSTRY TRENDS 44 | 2024 MAY / JUNE
CA FL MI AZ TX Average Sales (in Millions) $300 $200 $100 $0 Source: Based on new and pre-owned manufactured homes listed on MHVillage.com from April 2023 to May 2024. ©MHVillage. Reproduction in any form is prohibited without written consent. Used with permission. Data Courtesy of: MHINSIDER.COM | 45
What Might Chassis Removal Mean for the Market?
Manufactured Housing Professional Design Flexibility to Fit Consumer Preferences
When the U.S. Department of Housing and Urban Development receives Congressional approval to change the definition of manufactured housing and unveils its changes to the HUD Code, it likely will exclude the requirement that a manufactured home is constructed on a permanent chassis.
The key phrases here are “requirement” and “permanent”.
For years industry leadership contemplated removal of the requirement, and consensus began
to build during and after the 2017 Congress and Expo in Orlando. The Manufactured Housing Institute’s Technical Activities Committee spent time investigating how the matter might be approached. Now it seems the sentiment has been embraced by a large swath of elected officials and others on Capitol Hill.
The White House in a policy and budget release in mid March said it “plans to explore updating the statutory definition of manufactured
housing — for example, through amending the chassis requirement”.
What does the elimination of a chassis requirement within the HUD Code mean to builders and homebuyers?
Flexibility in home design and configuration as well as increased access for manufactured homes in neighborhood settings.
“Despite their efficiency advantage, manufactured homes face discriminatory barriers to fair competition with site-built construction,” Andrew
46 | 2024 MAY / JUNE ACCESS
Cavco Durango Facility
Justus and Alex Armlovich asserted in a February 2024 piece published by the Federation of American Scientists. “Many state laws and local zoning codes restrict or exclude manufactured homes, often based on architectural features common only on manufactured homes, like the Congressionally-mandated permanent chassis.”
Removing the chassis requirement doesn’t mean the home can’t be built with the heavy steel foundation of the home. It means that manufactured homes can be built with lighter weight materials to the same structural integrity, allowing builders to construct homes that can more easily sit on a poured concrete basement, or to have multi-story homes.
Bill Boor is the president of Cavco Industries, one of the nation’s largest off-site home builders, and also serves as chairman of the board for the Manufactured Housing Institute.
“The change to the chassis requirements doesn’t mean permanent chassis homes would go away. In many applications a permanent chassis is likely to make the most sense,” Boor said. “This change would be another important step in the evolution of manufactured housing and it would represent a significant additional opportunity for the design of a new set of federally approved factory-built homes.”
The reason consensus is building toward this measure and others intended to “unleash” the potential
of manufactured housing is because the nation faces a massive shortage of new homes, particularly homes that most buyers can qualify to finance. The U.S. has a shortage of four million homes today, with nearly every market in the nation facing housing shortages and increased housing costs.
Addressing the chassis requirement is among the most important industry measures being considered, alongside securing HUD as the industry’s sole regulator, expansion of FHA Title I financing for manufactured homes, tackling local zoning issues, protecting manufactured home communities and the residents of those communities. MHV
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is the only national trade organization representing all segments of the factory-built housing industry. MHI members include home builders, retailers, community operators, lenders, suppliers and affiliated state organizations. We are a trusted partner and industry leader that provides its members with a comprehensive range of advocacy, connections, education and engagement resources. Together, we are raising the bar and setting new standards of excellence.
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Celebrating 50 Years of Partnership with HUD
Taking Stock of Progress and Opportunities
By Lesli Gooch and Mark Bowersox
This year, we celebrate 50 years since the passage of the National Manufactured Housing Construction and Safety Standards Act, which established the manufactured housing industry’s relationship with the U.S. Department of Housing and Urban Development. While this relationship has been tested over the years as the industry confronted the nuances, pace, and politics of the federal bureaucratic process, there is no question that having federal standards for the design and construction of manufactured homes has been a success.
Today, manufactured housing is the only type of housing that is
subject to robust federal compliance and quality assurance regulations for health, energy efficiency, and durability, often more stringent than those for traditional site-built homes. Unlike other types of factory-built housing, manufactured homes can easily be shipped across state lines and our builders achieve time efficiencies and unparalleled economies of scale thanks to the partnership with HUD. Rapid construction and federal standards that ensure safety and quality are critical, especially while our nation seeks to address a severe housing supply shortage – and the 50-year successful partnership with HUD has made our industry
50 | 2024 MAY / JUNE ACCESS
poised and ready to help address this challenge.
Thanks to the industry’s partnership with HUD, manufactured housing has made the American Dream of homeownership attainable for millions of families. Manufactured home builders offer homebuyers brand new homes with the design features and efficiencies they want at price points they can afford. But it isn’t all about price. The partnership with HUD has resulted in homes that consumers love, especially compared to other housing choices at similar price points. According to MHI’s recent consumer research, residents of manufactured homes report exceptionally positive overall feelings about their homes and are strong proponents of manufactured housing. In addition, the top five features of manufactured housing cited by those considering homeownership through manufactured housing have been possible thanks to our partnership with HUD: affordability (70 percent), energy efficiency (53 percent), additional space (49 percent), stand-alone homes (46 percent), and outdoor space (45 percent). As our industry continues to innovate with new home styles and sizes, the federal building code makes it possible to put the dream of homeownership within reach today.
As the only national trade association representing all segments of the manufactured housing industry and nearly 90 percent of the manufactured homes produced today, MHI has worked to amplify the import-
ant role HUD Code manufactured housing has in helping to address the nation’s housing supply shortage and affordability challenges, and policymakers are now highlighting manufactured housing as an integral solution.
The most significant challenge facing the 50-year partnership with HUD is the imposition of building standards by other federal agencies,
must reject standards from other agencies and ensure all standards go through the process that has been successful since it was established 50 years ago.
As we look to the future, it is useful to look back at what Congress specified in the law as the purpose of our partnership with HUD and to take stock of our progress and opportunities.
We plan to celebrate our 50-year partnership and utilize the opportunity to demonstrate to the public and policymakers what sets HUD Code manufactured homes apart.
namely the Department of Energy. While MHI strongly supports energy efficiency for manufactured homes, HUD must remain our primary regulator. In fact, the statute we celebrate already specifies that HUD’s authority includes preemptive energy conservation standards. HUD has a 50-year track record in developing construction standards for manufactured homes and a proven testing, compliance, and enforcement regime. Going forward, HUD must defend its status as the industry’s primary regulator and ensure the process originally established by Congress whereby HUD is required to properly balance construction standards with homeownership affordability is continued. HUD
Purpose 1: To protect the quality, durability, safety, and affordability of manufactured homes.
Today’s manufactured homes deliver outstanding quality and resiliency at attainable prices. The average cost of a manufactured home is up to 50 percent less per square foot than a site-built home and often much less expensive than renting an apartment. These savings allow more and more Americans to own their own home, even in the face of an ever-widening housing affordability gap. People choose manufactured homes for their affordability, but they also choose them for the design innovations and sustainable features that provide an exceptional living experience. »
MHINSIDER.COM | 51
Going forward, MHI and HUD should continue to be diligent to ensure that affordability remains a paramount consideration in any standards updates.
Purpose 2: To facilitate the availability of affordable manufactured homes and to increase homeownership for all Americans.
The need for quality, affordable housing has never been greater. Redfin reported that only 16 percent of home listings were affordable for the typical household in 2023. That is the lowest share on record and down from 21 percent in 2022. Manufactured housing is an important part of the solution and HUD is charged with facilitating its availability. More can be done to do so. Addressing local zoning and land planning ordinances that discriminate against manufactured housing is a critical component of making manufactured homes available for more people. Going forward, HUD must do more to exercise its broad preemption authority when local construction regulations or zoning, planning, or development policies adversely af-
fect the placement of manufactured housing. Recently, MHI and HUD joined together to identify barriers to the placement for manufactured housing, which will also help identify
Today’s manufactured homes deliver outstanding quality and resiliency at attainable prices. The average cost of a manufactured home is up to 50 percent less per square foot than a site-built home.
to boost affordable housing supply. By supporting zoning reforms and by supporting expanded financing for manufactured homes in its FHA programs, HUD can help more Americans achieve homeownership through manufactured housing.
policy changes to ensure manufactured homes are available to more people. Manufactured housing is an integral component to any plan
Purposes 3-7. To provide for the establishment of practical, uniform, and, to the extent possible, performance-based Federal construction standards for manufactured homes; to encourage innovative and cost-effective construction techniques for manufactured homes; to protect residents of manufactured homes with respect to personal injuries and the amount of insurance costs and property damages in manufactured housing, consistent with the other purposes of this section; to establish a balanced consensus process for the development, revision, and interpretation of Federal construction and safety standards for manufactured homes and related regulations for the enforcement of such standards; to ensure uniform and effective »
52 | 2024 MAY / JUNE
ACCESS
We are excited to announce the release of our 18th annual Manufactured Home Community Financing Handbook and Market Update. 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 and download your copy, visit wellsfargo.com/mhc 18th annual Manufactured Home Community Financing Handbook and Market Update Wells Fargo Commercial Real Estate - Manufactured Home Coummunities Tony Petosa 760-505-9001 tpetosa@wellsfargo.com Nick Bertino 858-336-0781 nick.bertino@wellsfargo.com Matt Herskowitz 760-840-3608 matthew.herskowitz@wellsfargo.com © 2024 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.
enforcement of Federal construction and safety standards for manufactured homes.
In 2021, HUD made the first major changes to the manufactured housing construction code in almost a decade and in 2022, it proposed the largest set of changes in over two decades. MHI urges HUD to prioritize the finalization of the 2022 proposed updates to the HUD Code with our suggested enhancements and to move forward with finalizing the subsequent sets of updates that have been approved by the Manufactured Housing Consensus Committee but are still pending HUD action. In addition to clearing out this decades-old backlog, MHI is calling on HUD to develop and implement a streamlined process for updating the HUD Code, to prevent future backlogs and create a process for regular future code revisions. MHI commends HUD for elevating the Office of Manufactured Housing Programs, which will help ensure a more regular cadence of code updates going forward.
is duly considered in all determinations relating to the Federal standards and their enforcement.
Manufactured housing is the only type of housing that is subject to robust federal compliance and quality assurance regulations for health, energy, efficiency, and durability, often more stringent than those for traditional site-built homes. However, manufactured housing is excluded
cess to manufactured housing and is pleased to see some progress. For example, last October HUD issued a notice clarifying that manufactured housing units that are part of the community’s permanent housing stock are eligible for acquisition or direct home ownership assistance through the Community Development Block Grant program. MHI asks HUD to go one step further to complement these actions by carrying out the Congressional directive to issue guidelines to local CDBG recipients about how to assess the potential inclusion of manufactured homes in their affordable housing and community development plans.
Purpose 8. To ensure that the public interest in, and need for, affordable manufactured housing
from a number of HUD’s affordable housing programs. As we look toward the future, MHI will continue to advocate for common sense changes to HUD’s affordable housing policies to ensure they include increased ac-
In the next 50 years, MHI will build on the momentum of the past and continue to elevate housing innovation and expand attainable homeownership, and strengthen our successful partnership with HUD. This June, HUD will host its fourth Innovative Housing Showcase on the National Mall for National Homeownership Month. For the first time, MHI is pleased to join HUD as a presenting sponsor of the showcase. We plan to celebrate our 50-year partnership and utilize the opportunity to demonstrate to the
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ACCESS
public and policymakers what sets HUD Code manufactured homes apart – quality, attainability, efficiency, and design that is scalable. Each year we have showcased the range of homes that can be built under the HUD Code – from single section homes to CrossMods, from ADUs to duplexes. We look forward to continuing to showcase housing innovation through HUD Code
manufactured housing in 2024 and beyond. MHV
Dr. Lesli Gooch is the CEO of the Manufactured Housing Institute, the national trade organization representing all aspects of the factory-built housing industries.
Mark Bowersox is a seasoned trade association executive with experience leading nonprofits at both the state and national levels. In his role as president
of the Manufactured Housing Institute he is dedicated to elevating housing innovation and expanding attainable homeownership.
Bowersox is a federally registered lobbyist and regularly speaks on behalf of MHI and the industry to a variety of constituent groups and industry associations.
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ACCESS 56 | 2024 MAY / JUNE
MHINSIDER.COM | 57
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A BROAD LOOK AT ZONING
EARNING WAYS TO GET ATTAINABLE HOUSING IN CITIES EVERYWHERE
If there is an issue everyone in the manufactured housing industry can agree is the single largest, most complex, and most critical to solve, it’s zoning.
Zoning, handled nationwide at the local level in every small government — no matter how big or small — being viewed and addressed by the lone form of housing regulated entirely out of Washington, D.C. makes for, what one could say, an “interesting spectacle.”
There are more than 330 cities across the U.S. with population above 100,000, from New York city to Davenport, Iowa. Many of the cities and surrounding rural
areas the manufactured housing industry serves are closer to half the size of Davenport, like Maple Grove, Minn., Temple, Texas, or Pine Bluff, Ark. Manufactured housing communities often find themselves zoned out of cities and towns that are opposed to adding or expanding the use of manufactured housing. Sometimes draconian zoning prohibits replacing homes within communities and causes communities to lose homesites, ultimately causing a loss of affordable housing in the city or town. So, it’s easy to see the challenge. Each of these locales has its own book of rules. And to know the rules well, »
MHINSIDER.COM | 59 ZONING
and the public servants who administer them and manage projects, it’s very helpful to be on the ground. Be a business owner. Be a voter.
The likelihood of manufactured housing community operator having reliable boots on the ground in Kennewick and Oak Lawn at the same time is highly unlikely and probably unmanageable.
So what’s the solution?
There are a few remedies bounding around. One major aspect of the work on the ground nationwide is to avoid feeling overwhelmed with the need to be perfect. If one thing is certain, understanding all the local laws and helping to fix a few along the way will take time, plenty of time.
Seeding is a good idea. It’s a start, it can be comprehensive in its own way, and if the folks in Florissant, Mo., miss out perhaps their neighbors in Independence can show them the way.
The leadership at the Manufactured Housing Institute has seen and understood for some time the need for a national zoning effort. The organization has provided
a “play book” to professionals who want a template for how to approach boards and inspectors offices. In recent months, a firm paid for by a matching grant MHI received, has been attending conferences and meetings nationwide to get a better understanding of the landscape, to set parameters and do research, and to help form a more comprehensive, strategic approach to zoning.
Mind you, this is not a plan for “national zoning”. Local control is real and will remain. The effort is to understand local zoning to find ways to work within it, and to help local housing officials understand how and why the manufactured housing industry makes sense on multiple fronts.
In early 2024, this publication provided insight on another national zoning effort, called the National Zoning Atlas, that enlists academics, nonprofits, housing professionals, students, advocates, and pretty much all-comers to adopt or claim a city or town to study and feed information into the NZA website, which is a growing clearinghouse of local zoning, its efficacy, and its impediments.
The U.S. is short an estimated 3-5 million homes, depending on who you ask, and many of those much needed homes are in the window of affordability, which these days is anything less than $300,000. As a country, the nation’s average home price is likely to exceed $500,000 within the year.
And the reason those prices are so high is not because of corporate want, inflation, interest rates or any of the other market forces people in housing and in need of housing talk about so readily. All of those marks matter, but THE reason homes cost too much is because of supply and demand — there are too many people looking for a place to live amid far too few homes.
And still, the market is easing. Inflation continues to be stubborn and rates likely will stay high through mid-year, but consumers are coming to terms with the new cost of money, the same way business owners are settling in. As inflation recedes and rates tick down homeowners will be more ready to move, and renters will be more ready to move up. The economy will carry on. And in the years to come, with the actionable information manufactured housing community operators accumulate from Tucson to Tulsa to Taunton, Mass.,the industry will have found better ways in each place along the way to serve our customers. MHV
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ZONING
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Clayton Breaks Ground on Energy Efficient Neighborhood in Kentucky
31 Modern Manufactured Homes Provide More Attainable Options
On an early April day in Daviess County Ky., Clayton broke ground on a new kind of neighborhood comprised of 31 eBuilt® homes.
“We are excited to see this new development advance attainable, sustainable homeownership opportunities in the city of Ow-
by Dawn Highhouse
ensboro,” Clayton Homes Regional Vice President Jerry Tackett said.
“These new homes will help increase housing inventory in the community while seamlessly blending into an existing neighborhood.”
The new neighborhood, called Greenbriar, is expected to increase
availability of affordable homes.
Several public officials were present for the groundbreaking, including Rep. D.J. Johnson, for District 13, Judge Executive Charlie Castlen, Daviess County Commissioner Janie Marksberry, Daviess County Parks
62 | 2024 MAY / JUNE EFFICIENCY / SUSTAINABILITY
Director Jordan Rowe and regional Chamber Member Ken Crandall.
Greenbriar will feature modern manufactured homes from Clayton’s Epic floor plan line, which will be built on permanent foundations with a detached garage option. All homes in the new neighborhood will be eBuilt®, meaning they are built to the U.S. Department of Energy’s Zero Energy Ready Home™ specifications. eBuilt homes come with 25 energy-efficient enhancements and are estimated to save homeowners up to 50 percent on annual energy costs, helping provide homeowners with a low cost of ownership over the lifetime of the home.
All eBuilt™ homes have 25 enhancements that contribute to their energy efficiency, including:
• Rheem® hybrid water heater, which uses less energy than a 100-watt light bulb
• Low-E windows with argon gas, which reduce energy loss by 3050 percent
• LED lighting throughout, which use up to 90 percent less energy and last up to 25 times longer than incandescent bulbs
• SmartComfort® by Carrier high efficiency heat pump or gas furnace
• Frigidaire® ENERGY
STAR® certified dishwasher and refrigerator
• ecobee® smart thermostat
• Insulated exterior doors
• Tight thermal envelope with additional insulation and whole home exhaust system
Modern manufactured homes also offer lower production costs due to the efficiency of the home building process, leading to a more affordable home for buyers.
Clayton Homes of Owensboro and Evansville, a pair of Kentucky home centers, are leading the Greenbriar development. The homes will be integrated into an existing 55-year old subdivision and will include move-in ready models as well as customizable floor plans.
New homes will start at $199,900, available this spring.
The new eBuilt™ option is available on nearly all Clayton residential offsite homes, including TRU®, Epic®, Tempo® and CrossMod®. Included in the Epic series is the Morocco, a 1,791 square-foot floorplan that
provides the privacy of having a primary bedroom separated from the other, with a second bathroom accessible from the other bedrooms. An addition of a family room gives everyone plenty of space to hang out together.
Launched in 2012, the U.S. Department of Energy’s Zero Energy Ready Home™ (formerly DOE Challenge Home) is a new way to easily identify leading-edge builders that construct to DOE’s guidelines for zero net-energy ready homes. MHV Dawn Highhouse has been in the manufactured housing industry for 22 years and is the vice president of customer experience at MHVillage.com. In her role, Dawn manages and implements strategic customer service, product development, and marketing initiatives.
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EFFICIENCY / SUSTAINABILITY
Credit Human’s HQ Top Notch in Sustainability
By Patrick Revere
Credit Human’s commitment to environmental stewardship includes a goal to reduce green house gas emissions by 50 percent by 2025 –Sustainability Programs Manager Beth Kee
The San Antonio-based credit union Credit Human is headquartered near the Pearl District, a short walk from downtown, and provides neighbors and visitors alike a destination area where children may take their first spring steps or where former college pals might meet to drink “rosé all day.”
Its neighbors, made up of local employers, include a brewery and a bookstore. The office development, including the parking garage, was developed in partnership with Pearl-developer Silver Ventures and serves both employees and the public for events and local attractions. And it's all based on furthering the idea of creating a sustainable place, like the building itself.
Credit Human’s headquarters, at 1703 Broadway, is likely on a list of the nation's most green commercial buildings, and certainly is the leader in the manufactured housing industry. It is certified LEED Platinum and has an official Energy Star score of 86.
“Credit Human’s commitment to environmental stewardship includes a goal to reduce green house gas emissions by 50 percent by 2025,” Credit Human Sustainability Programs Manager Beth Keel said. “We’ve already far surpassed that goal and have reduced GHG emissions by 72 percent across the organization. We achieved that by selling inefficient buildings, leasing, and building more efficient units, like the new headquarters.”
Top of the Building
On its roof is a comprehensive hood of solar panels — 2,912 of them — that produce a megawatt of energy each day, about 40 percent of the building’s energy needs.
“It’s the largest solar project on a highrise building in America,” One80 Solar CEO Patrick Attwater said. “During the day we’re going to actually produce more power than the building needs, send some of that power back to the grid, get credits for it, and use those credits later when the building needs it.”
The building has a tight envelope that conserves energy, recognized by the EPA as 40 percent tighter than building codes require. It also uses significantly less potable water than most buildings, 97 percent less than structures of its size and type. This is accomplished by capturing rainwater and condensate, as much as 140,000 gallons, in large tanks situated around the building and below surface on the property.
“Water is precious to San Antonio,” Credit Human CEO Steve Hennigan said. “Traditionally a building like this probably would use about 4.4 million gallons of water per year. So the way to you want to look at that is (by asking) what would the environmental footprint of that 3-acre lot produce as far as water, and how much of that water can we capture, reclaim, and use? And what would the gap left be after that?”
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Turns out not much.
Credit Human uses the captured water to flush toilets and send makeup water to the cooling towers outside. The building conserves about 100 million gallons of water annually.
Geothermal wells, 150 of them, pull energy from the earth to heat and cool the building. It has a highly efficient HVAC system that uses variable refrigerant flow, all lights and power outlets power off when not in use, and half of the parking garage’s spots are wired for electric vehicle charging.
Credit Human team members use sit-stand workstations, and to keep movement through the space, the building has a large, central “social staircase” that serves as a meeting point and incentive for getting in those extra steps. Many of the architectural aesthetics for the building are achieved through the use of reclaimed wood and other existing materials from downtown buildings. Throughout the building is the work of local artists, including the building’s tile work and other finishes.
In the cafeteria, employees sort their waste for recycling and composting leftover food. The food is either digested in a biodigester or sent to a local composting company.
“Credit Human’s going to be a place where people can come… to do really great, purpose-driven work and in the process of doing that almost seamlessly and unconsciously have an impact on the planet,” Credit Human Senior Manager Amy Hartman said. MHV
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Progress on Expanding Title I for Home Finance
The FHA, in its Title I Final Rule published with the National Register this spring, has increased loan limits to 115 percent of value for manufactured homes — tying the limits to industry averages — in today’s market increasing a loan limit for a single-section and multi-section manufactured home from $69,678 to $106,405 and $195,322, respectively.
“HUD’s Title I program has been an important source of financing for manufactured homes, but low loan limits have made the program dormant in recent years,” the
White House stated in its release on the change. “The rule will increase loan limits to be in line with current market prices and enable HUD to regularly update the limits in the future.”
In February, Ginnie Mae revised its eligibility requirements for issuers of its Manufactured Housing Mortgage-Backed Securities program with the intention of reducing barriers to entry for issuers and to increase participation in the securitization program for Title I loans.
“Ginnie Mae plays a crucial role in supporting the financing of affordable housing supply, and manufactured housing is an important part of the solution,” Ginnie Mae President Alanna McCargo said in a joint statement HUD. “We’ve consulted the industry and worked closely with FHA to update and align our Title I eligibility requirements to support more financing in tandem with the vast improvements FHA is making to its program.”
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LENDING
Ginnie Mae’s Revised Net Worth Requirements
For all applicants, the minimum net worth requirement is $2.5 million — down from $10 million — plus 2.5 percent of the applicant’s total effective MH MBS non-agency securities outstanding obligations.
The total effective MH MBS outstanding obligations are the sum of all MH MBS securities outstanding in addition to available commitment authority to issue new MH MBS pools, and total MH MBS pools funded.
Ginnie Mae’s Revised Liquidity Requirements
Ginnie Mae requires applicants and MH MBS issuers to maintain appropriate levels of liquidity to meet and sustain financial obligations within the program with liquid assets equal to at least $1 million, which may be comprised of cash, cash equivalents, and AAA rated government securities marked to market, as defined under FAS95 or at 50 basis points of the issuer’s total effective MH outstanding obligations.
McCargo said the changes represent significant progress in expanding access to the secondary
market for more Title I issuers and deploying more capital for manufactured housing lending going forward. Its last major update had been 14 years prior.
An expansion of Title I lending, for purchase and refinancing, has been a top priority for the Manufactured Housing Institute and its work on Capitol Hill in recent years.
Areas of improvement within Title I programs that the Manufactured Housing Institute and industry advocates will continue to pursue will include longer loan terms (to as much as 30 years), reduced insurance fees, and greater parity in appraisal approaches.
More Funding for Communities
Part of the White House plan to protect manufactured housing communities includes access to Preservation and Reinvestment Initiative for Community Enhancement (PRICE) grants, a fund of $225 million that now is available for the purchase of new homes in a community, as well as for infrastructure improvements, and for resident services.
This is the first time the federal government has made grant funding available specifically for investments in manufactured housing communities.
“Manufactured housing offers a proven solution to America’s affordable housing supply crisis,”
HUD Secretary Marcia L. Fudge said.
“Today’s actions bring us one step closer to a future where everyone has access to housing that meets their needs.”
Additionally, a policy clarification grants the use of CBDG Funds in acquisition of manufactured housing units, in the service of manufactured housing units, and for providing resilience to manufactured housing communities.
The White House plan, in non-manufactured housing-specific language, is looking to HUD to ensure the elimination of non-rent fees — for application and screening, for instance — in public housing and subsidized programs. Language in the plan also provides a set of tenant rights for military services members, adds resources to prevent unfair evictions, and provides renters’ rights during tenant screening. MHV
MHINSIDER.COM | 71
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IOWA FACES DOWN RENT CONTROL
By Andy Conlin
In February of 2024, I attended a subcommittee in the capacity of executive director and lobbyist for the Iowa Manufactured Housing Association. Despite large Republican majorities in the statehouse in Des Moines, the bill discussed by the three-legislator panel would allow cities and counties in Iowa to implement their own rent control requirements. While the bill failed to advance beyond the committee, this was a stark reminder that rent control is a live issue as state legislators seek ways to address housing affordability. Despite a failing rent control experiment right up the road in St. Paul, Minn., landlords and their associations will continue to see these types of measures introduced by both Republicans and Democrats.
In recent years, state legislatures across the country have taken up measures to either directly enact or allow local governments to adopt rent control measures. These legislative efforts aim to cap rent increases and, by extension, curb the escalating housing costs that have become a pressing issue for many Americans. While the sponsors of these measures often have these positive intentions, rent control distorts the rental property market, discourages investment, and does not solve the housing affordability issue.
The Rise of Rent Control Legislation
Rent control policies are not a new concept, having been part of the housing regulation landscape in various forms and capacities over the decades. However, the recent wave of legislation marks a significant shift, with states and municipalities considering or enacting laws that are more comprehensive and stringent than in the past. These laws typically limit the rate at which rents can be increased annually, tying them to inflation rates or other economic indicators, in an effort to make housing more affordable and prevent displacement.
Rent control measures are not just a blue state issue. While most of the media attention has focused on rent control measures in states like Washington and Delaware, legislators across the country — including in red states like Iowa — are introducing and advancing rent control bills.
Challenges for Landlords
For manufactured housing community owner/operators, rent control presents several key challenges:
1. Reduced Ability to Manage Property Economics: The most immediate impact of rent control is the limitation it places on landlords' ability to adjust rents in response to market conditions. At a minimum, »
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ADVOCACY
rent control can reduce property owners’ ability to react to inflation spikes, changing market dynamics in high-demand areas, or other unforeseen events, including unanticipated maintenance issues. Over time, this can erode the profitability for owner-operators and deter future investment in the sector. For smaller operators, rent control can make it impossible to have a profitable business.
2. Maintenance and Upgrades: With capped rental income, MHC owner/operators may find it increasingly difficult to allocate funds for maintenance and upgrades to their properties. This could lead to a decline in the quality of housing stock over time, as well as reduced incentive to invest in energy efficiency and other improvements that benefit residents, the environment, and help make housing more efficient and attainable.
3. Administrative Burdens: Rent control regulations often come with a complex web of administrative requirements, including registration, reporting, and compliance measures. These can impose significant burdens on MHC owner/operators, especially smaller operators, in terms of both time and financial resources. Compliance issues, especially for new rent control requirements, could create significant risk for owner/operators who fail to adequately meet their requirements.
4. Market Distortions: Rent control can lead to market distortions, including a decrease in the availability of rental units and MHC lots as landlords convert properties to uses not subject to rent control. This can exacerbate the affordability issues that rent control seeks to address, leading to unintended consequences such as increased competition for a dwindling supply of rental units.
5. Investment Deterrence: The prospect of rent control can act as a deterrent to investment in rental housing, both for existing properties and new developments. This is particularly concerning given the ongoing housing supply shortages in many areas. A reduction in investment can hinder the development of new rental units, further straining housing markets and limiting options for potential residents.
Navigating the Path Forward
For MHC owner/operators, the challenge lies in engaging constructively with policymakers, residents, and other stakeholders to address housing affordability while also ensuring the viability and sustainability of the rental market.
The first line of defense is state manufactured housing associations. This industry is well-positioned with strong associations across the country. While lobbyists are not magicians, a well-equipped association with a professional lobbying team, politically engaged members, and strong grassroots program can educate lawmakers on why rent control is a failed policy and how increasing the housing supply is the most economically sound path to addressing rent affordability.
Additionally, it is also critical for policymakers interested in manufactured housing to understand this sector is in transition. While “sale to an out-of-state investment group” will continue to be a key talking point for those advocating for rent control, these transactions often lead to situations where residents see much needed investment in their communities. This increases the value of their homes and often makes their communities nicer places to live and raise families.
The trend toward rent control legislation reflects a misguided attempt to address affordability and stability in the housing market. Community owner/operators in both red and blue states must be vigilant. They must communicate with policymakers either individually or through their state manufactured housing association to convey the message that rent control will lead to fewer housing opportunities, less investment in existing communities, and economic uncertainty for housing providers. MHV Andrew T. Conlin, a seasoned advocate with over 15 years of experience in government affairs, legislative policy and public affairs, is the executive director of the Iowa Manufactured Housing Association. He is a graduate of Purdue University with a dual degree in history and political science.
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ADVOCACY
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IDENTIFYING, AWAKENING COMMUNITY OWNERS
3-plus Decades of Self-identity, Portfolio Building, Data Collection, National Advocacy
By George Allen, CPM Emeritus, MHM-Master
When I got into the mobile home park business in 1978, as a regional property manager for Turtle Creek Management, Inc., in Indianapolis, Ind., I had no idea who my peers were in the MH business. As naïve as it sounds today, beyond my three parks in Indy and Louisville, Ky., I had no idea who owned or managed this type of property throughout the Midwest and beyond. It was in 1980, while seeking new employment, I asked my friend Craig White, ACM, for advice. Through his contacts within the Manufactured Housing Institute, he identified a half dozen of
what we now call portfolio owners, scattered across the U.S. That was it, there were not-but-a-few more. Seriously. And for much of the first four decades of manufactured housing history before 1978, the sole resource, relative to standalone “mobile home park” identity and quality, was the Woodall Star Mobile Home Park Rating System & Directory. And that publication ceased distribution during the late 1970s. Why? In the words of its last owner, the late George Goldman, writing in his autobiography “The Road Less Traveled”, he describes
76 | 2024 MAY / JUNE
ALLEN LEGACY
...for much of the first four decades of manufactured housing history before 1978, the sole resource, relative to standalone “mobile home park” identity and quality, was the Woodall Star Mobile Home Park Rating System & Directory.
the directory’s self-defeating practice of “…the Woodall ‘reps’ took off their (park) inspector hats, donned their sales hats, and pitched some of the (Woodall) advertising opportunities to the park’s owner. Maintaining objectivity and independence in those two conflicting assignments was a constant challenge.”
A decade later, the August 1988 edition of the “Roulac Strategic Real Estate” newsletter, published monthly by Deloitte Haskins + Sells consulting firm, featured an article titled “Largest Mobile Home Park Owners in 1987”, identifying 25 property portfolio owners/operators of mobile home parks throughout the U.S. Perusing that archaic list today is akin, for me anyway, to reading about and pondering the interesting lives of the signers of our nation’s Declaration of Independence.
The first firm on this historic 1987 list in declining order of number of “spaces” is the Lautrec Group, today commonly known as Lautrec, Ltd. in Michigan. I’ve known one of the founders, Spencer Partridge, for decades, as well as his son Ross Partridge, who owns and operates the world’s largest privately-owned portfolio of land-lease communities RHP Properties, Inc.
Second firm on this august list is Clayton Williams & Sherwood, Inc., then out of Newport Beach, Calif., a major player during the 1970s, ‘80s and early ‘90s. The firm was acquired as property consolidation began in earnest during the late 1970s and early 80s, and on until and beyond the REIT formation years beginning in 1993. Most of the firms on this Top List of 25 are gone, having been
absorbed by other property portfolios, changed names, or simply gone out of business. A few, such as Uniprop Inc., also in Michigan, continue but are now smaller in size by rental homesite count. Homefree Village Resorts in Colorado, founded in 1972, was the real estate asset class’ first publicly-traded land-lease community firm.
Here are firms that were commonplace in 1987, though rarely or no longer in industry news today: DeAnza, Mobile Home Communities, Inc., Aspen Enterprises, Planned Management Systems, R.O.C. Properties (not to be confused with ROC USA), once known as River Oaks Communities, Charles P. Royce, Inc., Merrill Lynch Hubbard, Chateau Estates (Later a REIT), The Windsor Corp., Angeles Corporation, Balcor/American Express, Ellenburg Capital Corp, Tandem Affiliates, Brandenberg, Staedler & Moore, McDay Corp., Pegasus Group, Carlsberg Management (Remember Bill Geary, CPM?), Southgate Investors, ET Consultants, Inc., Joseph Winslow, and Oakwood Land Development.
So, what else was going on during that early timeframe nearly 40 years ago?
In large part, as successor to the aforementioned “Largest Mobile Home Park Owners in 1987” report, published during 1988, the inaugural Allen Report appeared in December 1989 as a Community Corner feature in the Manufactured Home Merchandiser magazine. That first Allen Report identified 38 land-lease community portfolio firms throughout the U.S. The following year, 1990, the Allen Letter was launched as a means of regularly »
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communicating with a rapidly growing pool of owners/operators.
What did the typical report contain? Usually it began with a commentary on the status of consolidation throughout the manufactured housing industry factories and among 50,000, plus or minus, communities nationwide. This was followed by an update relative to evolving industry terminology. It’s where “manufactured home community” officially became land-lease community.
Then the Allen Report proper began, with a recitation of key industry statistics relative to the number of new HUD-Code homes produced, along with any emerging trends. Next, the report database was
described in terms of how it was researched via USPS and later online. This was followed by an overall summary of rental homesite counts and the number of communities/sites included in the report.
The Allen Report also published national physical occupancy totals, as well as a national Operating Expense Ratio average for the reporting year. The final report, the 32nd, included a dozen evergreen issues pertaining to the industry and realty asset class.
Finally, probably the most popular feature of the Allen Reports was its list of surveyed firms. These 100or so firms were listed in order of portfolio size (declining number of rental homesites), followed by the proper name of the firm, home
office state, and a breakout of the number of communities owned and or fee managed.
One of the major losses, due to the cessation of the Allen Report, has been the lack of tracking the growth of real estate investment trusts dating back to 1994 through year 2020. During those 26 reporting years, interested parties could easily track the coming and going, growth and shrinkage, of this unique publicly-traded real estate asset. But no more.
Land-lease community consolidation continues, but at a slower pace — right now — due to higher mortgage interest rates, and the reality that most institutional investment-grade properties are already in portfolios. MHV
George Allen is a nonfiction author, internet blogger, and magazine columnist with expertise in manufactured housing and land-lease communities. He also is a retired lieutenant colonel of U.S. Marines, with a combat tour in the Republic of Vietnam and service during Desert Storm. Read his autobiography, “FromSmittyAlpha6 to MHMaven” available via www.educatemhc.com, and also his “Chapbook of Prayer” and “Chapbook of Business Management & Wisdom” as well as other interesting titles. Allen can be reached at gfa7156@aol.com, (317) 881-3815 & GFA c/o Box # 47024, Indianapolis, IN. 46247.
80 | 2024 MAY / JUNE ALLEN LEGACY
Retail Financing Floor Plan Financing Insurance Dealer Open Lot General Liability Extended Warranty ABOUT US For over six decades, Triad Financial Services has earned the trust of borrowers, dealers, manufacturers, and lending institutions alike. Our unwavering commitment has enabled families to achieve their dream of homeownership. FINANCIAL SERVICES FOR THE MANUFACTURED HOME INDUSTRY Home Only Land/Home Land Plus Communities Retailer & Community Programs Interest Rebate Program This advertisement is not intended for consumer use This is not an advertisement to extend consumer credit as defined by TILA Regulation Z LEARN MORE To Advertise, call: 1-877-406-0232 Reach Over 30,000 Manufactured Housing Professionals in Print and Online
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