COMING! A New Era & A New Voice for Manufactured Housing
COMING! A New Era & A New Voice for Manufactured Housing
Little did we realize 2011 will usher out an old era and old way of apprising!
Yes, it snuck up on me too; the realization HUD Code manufactured housing has permanently changed during the past decade, to the extent of being market – stiffed; maybe forever, sans new sources of third party chattel (personal property) finance! Meanwhile, the other half this ‘double dual industry’ (i.e. manufacturing/distribution & commercial property development/management), its’ complementary investment real estate asset class, a.k.a. landlease (nee manufactured home) communities, has ‘moved on’, leaving those housing manufacturers behind, who don’t understand they must build Community Series Homes (‘CSH’) to survive! All this however, is but half the story unfolding in 2011, leading to ‘The End of One Era, The Beginning of Another!’
Other half the change? Well, especially for landlease community owners/operators (‘LLCommunities’), there’s a sea change a – coming, regarding big versus small owner/operator advocacy; operating data collection, analysis & distribution; print & online communications; even peer networking & deal – making. How so? That’s what’ll be reintroduced, during months ahead, as the ‘new voice for manufactured housing’. It was birthed, more than a decade ago in a print trade publication, but has lain dormant, till the timing was, and now nearly is, right – to help rejuvenate a moribund manufactured housing industry, and simultaneously encourage and promote the growing LLCommunity renascence! As they say in radio talk, ‘Stay tuned here to learn more!’
Sustainability? It’s difficult to pick up a housing or realty trade publication, even a metropolitan newspaper these days, and not find some direct or passing mention of ‘sustainability this’ or ‘sustainability that’. A recent posturing, by HUD Secretary Shaun Donovan to Kenneth Harney at the Urban Land Institute (‘ULI’), was expressed thusly: ‘Embrace Sustainability, If You Want Federal Money’, got me to thinking….
So, just what is sustainability, in the single and multifamily housing context? I asked the folk at ULI for a definition/description, and this is what I learned: NOTHING. My email requests, as a realty trade journalist (Even stated my National Association of Real Estate Editors credentials!), have gone unanswered for nearly a week. Go figure.
So, ‘What say YOU?’ As a raw land developer or LLCommunity owner/operator, do YOU have a dog in this hunt for increased market penetration, via sustainability, relative to manufactured housing and or our unique income – producing property type? Your peers would like to know and read your view(s), via this blog site, regarding what’s either a contemporary ‘cutting edge concept,’ or simply ‘another temporary whimsy’.
In search of the True Lease! In early January 2011, along with 40+/- fellow members of the IMHA/RVIC (Indiana’s state MHAssociation), I attended an afternoon panel discussion ‘splaining’ that state’s interpretation/implementation, to date, of the federal S.A.F.E. Act (Safe And Fair Enforcement of Mortgage Licensure Laws). One panelist, an attorney, stated a ‘true lease’ does not come under the purview of said act. Unfortunately, at the time, neither a definition or description of True Lease was provided, in any fashion. Since then, repeated requests for clarification have gone pretty much unanswered.
So, the challenge to YOU, loyal blog flogger (reader), is to share your knowledge or opinion of what a True Lease is!
Meanwhile, here’s one opinion. Given a property – owned manufactured home on a rental homesite in a landlease (nee manufactured home) community, and assuming said home & site rental rates in sync with other rental housing alternatives in the same local housing market (How to calculate such rates is the subject of a future blog….), lease said home & homesite for one payment (or two separate payments) per month for an agreed upon term (e.g. one year, more or less). Personally, I prefer weekly collection of home rent in LLCommunity settings….
In any event, and only at the end of the lease term, offer lessee (tenant of the home) the opportunity to extend said lease(s) for another term; OR, at that time make an agreed upon lump sum payment to the home owner (i.e. property owner) in exchange for title to the home leased to date. Assume no effect on the ground lease. If there’s no prior mention or agreement between the parties as to this relationship being a ‘lease to own’ or ‘rent to own’ or ‘lease with option to purchase’ at the front end, or during the term of the lease, might this not be a True Lease? Once again; what say YOU?
Of course I realize this is a legal issue that indeed might vary from jurisdiction to jurisdiction. But at this point, we’re talking concept, and your input is sought.
Did YOU know?
• ‘Joe McAdams Steps Down as President of Equity LifeStyle’; so reads a headline in the February 2011 edition of Woodall’s Campground Management. The article goes on to say: “Thomas Heneghan, ELS CEO, re – assume(s) role of president of the company. Following executive officers now report to Heneghan: Michael Berman, executive VP & CFO; Ellen Kelleher, esquire, executive VP, property management; Roger Maynard, executive VP, asset management; Marguerite Nader, executive VP, new business development; and Seth Rosenberg, senior VP of sales and marketing.” Page # 5. Now you know who’s on first, second…
• 13th annual National Registry of Realty Lenders/Brokers Specializing in LLCommunity Acquisition & Refinance Mortgages. This highly popular registry is the third in a series of 12 Signature Series Resource Documents, researched and published by PMN Publishing. The initial copies of the 13th Registry will be distributed as a lagniappe in the March 2011 issue of the Allen Letter professional journal. Also, for the first time in 13 years, a list of chattel (personal property) lenders will be included for contact purposes! So, if not already an Allen Letter subscriber, either sign – up for $134.95/year (12 monthly issues) OR, pay $250.00 and receive said subscription PLUS a copy of the recently – released 22nd annual ALLEN REPORT (a.k.a. ‘Who’s Who Among LLCommunity Portfolio Owners/operators in North America!’)! NOTE: Less than 50 copies of the ALLEN REPORT remain. Once this stock is gone, there are no plans to reprint! Phone the MHIndustry HOTLINE: (877) MFD-HSNG or 633.4764 to subscribe to the Allen Letter professional journal AND buy your copy of the ALLEN REPORT. Also phone (317) 346-7156.
George Allen, Realtor®, CPM®Emeritus, MHM
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class
Box # 47024, Indianapolis, IN. 46247