FIRST FACE-TO-FACE MFD. HSNG. MEETING IN 1 ½ YEARS!
Blog Posting # 647 @ 16 July 2021: EducateMHC
Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’
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INTRODUCTION: Have you registered to attend the first face-to-face manufactured housing industry meeting in 1 ½ years? Still room for more to attend. Read Part I for details. Do you enjoy solving conundrums? If so, you’ll want to read Part II, following here. How ‘bout WARNINGS? Let me be the first to tell you – in Part III. And finally, Part IV. A ‘tease’ if you will, relative to the proceedings at yesterdays (7/14) virtual Listening Session. Really quite an event.
FIRST FACE-TO-FACE MFD. HSNG. MEETING IN 1 ½ YEARS!
Final Networking Roundtable & Retirement Celebration will be held 12 August 2021 at the downtown Hilton Hotel in Nashville, TN. Keynote presentation by Scott Roberts: ‘Developing Raw Land into Land Lease (& RV) Communities’! This, in my opinion, is the reemerging trend for our realty asset class! One real estate-secured mortgage loan originator, who will be present at this event, recently arranged for $150,000,000. to develop a half dozen new land lease communities in Southwest U.S.! How can you not want to be present, to learn how to get in on this ‘once in two decades’ investment opportunity? Visit www.educatemhc.com for more information & to register, or phone Erin Smith, MHM, via (317) 783-3434.
There’ll also be a Fireside Chat audience participation discussion with George Allen, CPM, MHM, on any and all manufactured housing and land lease community matters and issues. Plus, everyone present gets to publicly introduce themselves to all participants, receive a Directory that’s widely recognized as the most accurate and comprehensive list of industry and asset class businessmen and women available anywhere! And there’s rumor of a special gift for everyone in attendance, making a $20.00 or more donation to the RV/MH Hall of Fame.
And, at the retirement celebration banquet that evening (12 August), all RV/MH Hall of Fame members present, are requested to wear their distinctive Kelly green blazers!
Speaking of the RV/MH Hall of Fame, are you aware the huge new manufactured housing exhibit hall in Elkhart, IN., is close to completion – and will be toured on 16 August 2021, as part of that day’s annual Banquet hosting the Induction of Classes 2020 & 2021 into the prestigious RV/MH Hall of Fame? For more information and banquet tickets, phone (574) 293-2344. Hope to see you there! 10 of our MH & land lease community friends will be honored that night!
A NEW MH CONUNDRUM
Here’s our industry and realty asset class’ newest, and very serious conundrum (i.e. ‘a riddle, a hard question’):
‘If we build the new land lease communities encouraged in Part I of this week’s blog posting, where and from whom will be get new HUD-Code homes to fill vacant rental homesites?’
Some, if not many, housing plants are already scheduling deliveries six months to a year out into the future. And now along comes this business chilling announcement from one of the largest firms:
“Unfortunately, we cannot take any of your orders at this current time. Along with most of the industry, (our firm) has shifted to an allocation system in regards to our order process(ing). Due to the issues with material shortages and a high backlog of orders, we had to take a look at our entire customer list to see the volume each customer has ordered. With the low number of orders your location has placed, we do not have any allocation spots for you to place an order at this current time. Once the market and process normalizes I will team (sic) back to you so you can resume placing orders.” (Lightly edited) GFA)
Now, I don’t know this for certain, but it seems the ‘low number of orders your location has placed’ remark, might well be directed at the single land lease community owner/operator, as opposed to one or another of the 500+/- portfolio property firms with an average of 20+/- communities apiece. If that’s the case, such an announcement could become a death knell to small business owners active in the industry, including smaller independent (street) MHRetailers and realty asset class today! Sure hope this isn’t true.
Back to the conundrum. Is new home production and delivery (& pricing) in such dire straits so as to handicap our return to optimum shipment levels approaching 100,000 and 150,000 units per annum? Somebody had better figure this out and ‘pass the word’, positive or negative, so we’ll all know better how to plan our business futures!
Given the ‘blast of cold water’ announcement featured in Part II of this blog posting, the last thing we need is more bad news – but, unfortunately, here it is:
Beware of proposals, from outsiders, perhaps even within the MHCC (‘Manufactured Housing Consensus Committee), for new or modified standards (to the HUD-Code) that are little more than attempts to ‘legislate’ new or additional demands for products or raw materials that they, or their associates, sell – or want to sell, to the industry.
This is a very real threat, beginning with a renewed Department of Energy (‘DOE’) move towards forced energy-related standards not statutorily required to balance cost versus benefits to manufactured housing product and its’ production. Do you remember? The National Association of Home Builders (‘NAHB’) has already gone on record stating, for every $1,000 increase in the retail level cost of a singlesection manufactured home, 348,000 potential home buyers would be lost; and in the case of multisection manufactured homes, 316,000 potential home buyers would be unable to purchase the home of their dreams. This is why we need to be diligent in our fight against the modification of HUD-Code standards that would add unnecessary cost to our affordable housing product!
Between 1:30 & 4PM on Wednesday, 14 July 2021, as part of the FHFA – hosted Duty to Serve (‘DTS’) Public Listening Session re Manufactured Housing, 17 individuals voiced opinions and concerns relative to the 2022-2024 Underserved Market Plans prepared by the GSEs. During the height of the 2 ½ hour Listening Session, there were 102 individuals listening in on the proceedings. Not enough space here to summarize what was presented – I’ll do that in next week’s blog posting (#648) – so be sure to read it at that time. Let me titillate you a bit though…
Dr. Esther Sullivan, University of Colorado, author of Manufactured Insecurity was the first presenter, also the first to mention predatory practices of Havenpark Capital, and more.
In my opinion, best presentation was by Bruce Thelen of Sun Communities, Inc., the REIT.
In my opinion, worst presentation was a prepared statement by Tony Kovach, read aloud by a Listening Session support staffer. It came across, in part, as a personal vendetta against three of the most well-known businessmen in the manufactured housing industry.
So much more to tell you. Be sure to read next week’s blog posting….
George Allen, CPM, MHM