Affordable & Obtainable – the new MH couplet!
2019; Copyright 2019; www.educatemhc.com
Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.
This blog posting is sole national advocate, official ombudsman, historian, research reporter, education resource & online communication media for North American land lease communities
To input this blog &/or affiliate with EducateMHC, formerly COBA7, telephone Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764. Also email email@example.com
Motto: ‘U Support US & WE Serve U!’ Goal: Promote HUD-Code manufactured housing & land lease communities as US source for affordable obtainable housing! Visit www.educatemhc.com
INTRODUCTION: HUD-Code manufactured housing & land lease communities provide affordable obtainable housing & lifestyle! MHI, MHARR & NAMHCO owe it to us to work together in Washington, DC. to advance the cause of manufactured housing & land lease communities! And, for the first time ever, Fannie Mae’s 23 DUS (Delegated Underwriting & Servicing) lenders unanimously favor originating real estate-secured mortgages for land lease communities!
DID YOU NOTICE?
In the header above, hopefully you noticed the significant Goal adjustment at EducateMHC and this weekly blog posting. Specifically,
PROMOTE HUD-CODE MANUFACTURED HOUSING & LAND LEASE COMMUNTIES AS U.S. SOURCE FOR AFFORDABLE OBTAINABLE HOUSING!
Obtainable housing? What’s this and how did it materialize? Attending MHI’s Visits on the Hill briefings, prior to walking the Innovative Housing Showcase on the national mall, a couple weeks ago, I was inspired by chairman Joe Stegmayer and MHI executive Dick Jennison pairing ‘affordable obtainable’ housing when describing our unique type factory-built housing.
Affordable housing? “Occurs when an individual or household’s Annual Gross Income (‘AGI’), or local housing market’s Area Median Income (‘AMI’) – identified by postal zip code @ zipwho.com, can lease a conventional apartment or buy a home in the local housing market, using no more than 30 percent Housing Expense Factor, of said AGI, or AMI, for shelter and related household (utility) expenses.”*1 For example: $50,000 AGI or AMI X .3 HEF = $15,000/year; or $1,250/month for rent or mortgage PITI (principal, interest, taxes, insurance) and household expenses.
Obtainable housing? While I hoped MHI would hold forth on defining the concept, they haven’t – that I’ve seen or read, so here’s how this veteran industry observer views the concept: Given housing that’s affordable (by definition), in any given local housing market, HUD-Code manufactured housing, by dint of the industry’s ‘more than 100 factories nationwide’, makes it possible for prospective homebuyers/site lessees, to purchase said new housing virtually anywhere in the U.S. Hence, HUD-Code manufactured housing is affordable & obtainable!
Then the thought occurred to me: ‘Why not pair and promote ‘affordable & obtainable’?’ Everyone knows low income housing aficionados have long hijacked ‘affordable housing’ to serve their narrow purposes. Why not position HUD-Code manufactured housing & land lease communities, going forward, as this nation’s homegrown source for ‘affordable & obtainable’ housing?! I’m ready to do so. How ‘bout you?
Let’s see if anyone else picks up on this bandwagon opportunity to differentiate and highlight manufactured housing and land lease communities, from just affordable housing, to the general American home buying public! Here’s who I’m going to watch, for leadership and publicity to this end: MHI, MHARR, NAMHCO, MHInsider magazine, Manufactured Housing Review online, the Allen Letter, and the Allen CONFIDENTIAL! business newsletters. Also our state manufactured housing associations nationwide. This should be interesting to observe, track, and report back on in a month or so…For that matter, let me know what you think of this ‘obtainable’ concept being paired with ‘affordable’ housing.
Bottom line? E very one of us should commit NOW, to Promote HUD-Code Manufactured Housing & Land Lease Communities as U.S. Source for Affordable Obtainable Housing!
1. Official definition of affordable housing quoted from SWAN SONG text (First history of land lease communities, & Official Record of HUD-Code housing shipments 1955 to present day), available for purchase via www.educatemhc.com
MHARR & MHI to Work Together or Merge?
Remember this? On 13 June, MHI published a HOUSING ALERT with the stirring headline: ‘MHI Protects Industry & Manufactured Housing Land Lease Communities From Attack’. While one online commentator decried the gist of said Press Release, claiming alleged anti-industry language was not as characterized, general sentiment appreciated having a spokesperson in Washington, DC., ‘tending the store’, so to speak.
So, in a private email message to dozens of manufactured housing executives and land lease community owners/operators, I made this bold – but needing to be said again and again, statement:
“It’s high time all three national entities (i.e. MHI, MHARR & NAMHCO) figure out how to work well and effectively together ALL the Time! We now have federal legislators and regulators who respect HUD-Code manufactured housing AND the land lease community lifestyle – so let’s speak with a much more unified voice than has been the case in the past, and in this example!”
And as is often the case, a blog flogger (reader) replied thusly:
“I couldn’t agree more George; the (manufactured housing) industry needs to speak with one voice. Unfortunately, I’m not very optimistic this will happen. Their styles of working with (regulators & legislators) government are completely different from one another, and only one has a PAC fund that can help get legislative support. Sending threatening letters to Federal agencies (e.g. Fannie, Freddie, FHFA, HUD) and legislative offices, telling them how terrible they are, is not a strategy that works well or often.”
This encouragement to unite and speak with one voice in Washington, DC. is neither new or novel. Many before me have expressed identical sentiments; but to date, to little or no avail – for various reasons. However, since so many of us recognize, as the cartoon character Pogo has been wont to say, in paraphrased fashion, “We continue to shoot ourselves in the foot with regularity!” – perhaps the time has come to make unity happen.
What say YOU? Let me know via firstname.lastname@example.org or via the Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764.
Did You Know?
“Fannie Mae’s Delegated Underwriting and Servicing (‘DUS’®) lenders are authorized by Fannie Mae to underwrite, close and deliver loans without Fannie Mae’s pre-review, which reduces the length of time required to close a multifamily loan.”
With that said, 21 of 23 DUS lenders recently identified in Heartland Real Estate Business magazine list land lease communities (i.e. They say, ‘manufactured housing communities’) as being approved for real estate mortgage origination! So, what’s the ‘big deal’? This is the first time in decades our unique income-producing property type has received this very public mark of approval! We’re making progress!
George Allen, CPM, MHM
Box # 47024
Indianapolis, IN. 46247(317) 346-7156
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