Interesting MH $$$ NEWS (&) New Face of MHI in Year 2020
September 2019; Copyright 2019; www.educatemhc.com
Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing.’
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Motto: ‘U Support US & WE Serve U! Goal: promote HUD-Code manufactured housing & land lease communities as U.S. source of affordable attainable housing! Next MHM class 10/7/2019
INTRODUCTION: Yes, we are in the midst of the Fall meeting season. So far, the 28th Networking Roundtable and MHI’s annual meeting are behind us. Yet to come? The rapidly growing and highly popular SECO Conference in Atlanta, GA., @ 8-10 October 2019. Will I see you there? Sure hope so. This is the only regional cum national venue, attracting 500+/- attendees, that’s ‘planned & hosted BY land lease community owners/operators FOR land lease community owners/operators’! For more information, visit 2019 SECO Conference
INTERESTING MH $$$ NEWS
CFPB’s recently-released HMDA Summary tells us: During year 2018, 99,200 manufactured housing loans were secured by ‘home & land’, while 51,000 chattel loans were secured by ‘home only’. And median interest rate for chattel loans was 8.29%, while median rate for non-chattel loans was 5.125%. Also during this time frame, 39.47% of manufactured housing owners were younger than 25 years, and 25.47% were older than 75 years. This is the first HMDA file to distinguish between chattel and real estate-secured manufactured housing loans. Section 6.8, beginning on page # 63, of said report, covers these new data points and more.
MHI’s Annual Meeting in Savannah, GA
Preview: ‘Good-bye’ leaders Stegmayer & Jennison, and ‘Hello’ Berkshire-Hathaway; no name yet for ‘new type’ manufactured homes; research aims to head off national rent control; &, ‘affluence gerrymandering’ alive & well at this national MH venue.
Manufactured housing says affectionate ‘good-byes’ to elected leader, Joe Stegmayer, as his second term as MHI chairman ends; and, salaried MHI exec Richard Jennison, as he retires at year end. No named successor to Dick Jennison at this time.
Three Berkshire-Hathaway-related corporate executives to lead new Manufactured Housing Institute (‘MHI’) board in year 2020: Tom Hodges, esquire, of Clayton Homes as board chairman; Eric Hamilton of Vanderbilt Mortgage Finance as treasurer, and Tim Williams of 21st Mortgage as board member. Leo Poggione of Craftsman Homes, and recent RV/MH Hall of Fame inductee, becomes vice chairman of the board, and Patrick Waite of Equity Lifestyle Properties (‘ELS, Inc.’ – world’s largest owner/operator of land lease communities) will serve as board secretary. Curious. Was there a formal nominating committee this time around?
Good News/Bad News. Bad News, is the ‘new type’ manufactured home, after several years in production and distribution, continues to be formally unnamed. The Good News, is the ‘next gen’, choice, millennial manufactured housing design is close to formal naming by MHI manufacturer members. Let’s hope they ‘get it right’ the first time around! In today’s world of social and political sensitivity that might be more difficult than expected.
National Communities Council (‘NCC’) division is well aware of negative PR and social, business, political turmoil foisted on the land lease community realty asset class, by private equity firms acquiring such properties, and portfolios thereof, then – in too many instances – ‘jacking’ rental homesite rates to generate income needed to satisfy high debt service (mortgage) and investor ROI (‘returns on & of investment’) demands. Their answer? To research the matter during months ahead, then decide if and how to take action.
I’ve been complaining about affluence gerrymandering (‘National trade advocacy entities patronizing high-priced resort venues, discouraging small-size business owners/operators from participating on a level playing field with larger firms intent on dominating a particular industry’), relative to manufactured housing, for decades! Still no change. In this instance, we have a national advocate boasting more than 600 members (some say 800), with only 135 showing up for this annual meeting. Might be because the hotel room rate was $219/night; guest services @ $25 (shuttle to airport); mandatory resort service fee of $28.25 (For what?); and array of state & city taxes & occupancy fees of $35.97; all for a grand total of $308.22/day (less the $25 shuttle fee). How many more would likely attend if the daily total was closer to $208.22 or less? Just saying….