Responses to ‘Trade Restraint’ & Special Announcements!

COBA7® via Blog # 336 Copyright @ 15 February 2015

Perspective. ‘Land-lease-lifestyle Communities, a.k.a. manufactured home communities and ‘mobile home parks’, comprise the real estate component of manufactured housing.

This blog posting is the primary national advocacy voice, official ombudsman, research reporter, & online communication media for all LLLCommunities in North America!

To input this blog &/or affiliate with Community Owners (7 Part) Business Alliance®, a.k.a. COBA7®, use Official MHIndustry HOTLINE: (877) MFD-HSNG or 633-4764

COBA7® Motto is: ‘U support US & WE serve U!’, and Goal of its’ three print & online publications is: ‘Not only to share information & opinions, but to transform & improve!’

Introduction to this week’s COBA7® blog posting at website:

I’ve penned thusly before, and will likely do so again in the future. When Monday morning dawns, following the Sunday morning blog posting, I oft wonder: ‘What to cover this week?’ By the time Wednesday arrives, there’s an idea or two in mind, maybe even a few quotes and thoughts on paper. But by Friday, ‘Something noteworthy has occurred somewhere in the MHIndustry & among LLLCommunities nationwide. Hence, Part I following, contains reader commentary on last week’s stimulating topics; & Part II is awash with the most exciting news to ‘splash’ our industry and property type in months – and there’s more a-coming!


‘Simple Statement’ & ‘Trade Restraint or Protectionism’ Blog Postings Last Week Generate Interesting Commentary

In the first instance, “Since their creation more than (a) half-century ago, nearly everything about manufactured housing has improved – except the way they are sold and financed. High-interest loans, shorter loan terms, and sales tactics that turn what could be a good deal into an expensive proposition.”, garnered this pithy reply…(read carefully):

“Strictly chattel loans involve a tough, almost impossible business model; one where lenders have to charge high enough interest to cover their risks and costs – which in turn and time, all but guarantee failure of said loan transaction. Furthermore, the size of the borrower market (i.e. Those who can satisfy the lender’s requirements) is very small – almost too small to be practical. And pre-S.A.F.E. Act lenders could, but generally didn’t, mitigate their risks – hence justifying lower rates, via a partnership/affiliation with LLLCommunity owners, who helped with application processing, underwriting, collections, repossession, rehab, even resale of homes. Today, it’s near impossible for such cooperation without stepping into the crosshairs of regulators.” An MHM®

In the second instance, talk of the pros and cons of continuing under HUD’s regulatory oversight – and enjoying the benefits of a federally preemptive building code; OR, coming out from under said control to enjoy entrepreneur freedom to respond quickly to local housing market needs, generated the usual and expected supportive and contrarian responses:

“Good for you to open that can of worms again. Challenges to the ‘approved everywhere – sorta’ benefit of having HUD regs is certainly real, but the opportunity for renewed (shipment) growth, particularly with lower product costs would likely be greater! The latter is the entrepreneur’s dream of FREEDOM to WIN, instead of restrained freedom to continue being mired in mediocrity. Or, think of this as the opportunity to ‘meet our customer’s needs’, not the ‘requirements of government’.” NB


“Without the protection of federal preemption there would be no manufactured housing. Just look at how stagnant ‘modular housing’ figures are. Why? Because they must meet a myriad of local building codes, always changing, always different. How can anyone think it’d be any different for unfettered manufactured housing?” State MHAssociation exec.


Exciting News to Share with Blog Audience!

I love it when a news story comes together in time to post here, or share via the Allen Letter professional journal and the Allen CONFIDENTIAL! business newsletter. Also get a genuine thrill from knowing beforehand, an upcoming regional or national meeting will serve the education, networking, and deal-making needs of land-lease-lifestyle community owners/operators nationwide! But best of all is the feeling of personal fulfillment, when a whole new aspect of manufactured housing score-keeping (i.e. statistical benchmarking) unfolds before one’s eyes. All such ‘excitements’ are described in the following bullet points:

• 24th annual International Networking Roundtable will occur 9-11 September 2015 at the Hilton San Diego Resort on Mission Bay. That’s right; where we’ve been twice before! And the lineup of 25 topics and presenters? Details to follow, but how ‘bout reps from IREM, MHI, MHARR, maybe GSEs, & COBA7’s national buyers group; plus, all you wanted to know about Frost Free Foundations®, and more, but didn’t know who to ask – since no one else is telling you!

• MHARR will soon (This week?!) make an announcement of significant importance to owners/operators of land-lease-lifestyle communities nationwide. Hint. It has to do with the volume of new HUD-Code homes being shipped directly from factories into LLLCommunities nationwide. We finally know. This is a game-changer!

• Signature Series Resource Document ‘17th National Registry of (all) Manufactured Housing Industry-related Loan Originators’, when distributed on 1 march 2015, as a lagniappe to the Allen Letter professional journal, will be the Biggest & Best such SSRD researched and published to date! Relative to real estate-secured loan (acquisition & refinance mortgage) originators alone, the number of reporting firms (lenders & brokers) has jumped from 18 to 25 since last year! And Rishel Consulting, continuing its’ helpful contribution to last year’s edition, will publicize all known sources and servicers of chattel capital per manufactured homes in LLLCommunities. This is a MUST HAVE document!

• Two more Manufactured Housing Manager® classes have been scheduled this Spring; one in Dixon, IL., on 31 March, and one in East Peoria, IL., on 20 June 2015. If you’re in search of professional property management (‘PM’) education and certification for yourself and or your LLLCommunity managers, this is where to send them! Class is only $250.00/person for the one day class, there’s no testing, and it’s the only PM class in the U.S. taught by a veteran LLLCommunity owner, Certified Property Manager® Emeritus, and RV/MH Hall of Fame member. Get certified and join the other nearly 1,000 MHMs at work in LLLCommunities throughout the U.S. and Canada!

• Double Treat in Albany, New York on 26 March 2015! Pam Danner, esquire, manufactured housing program administrator for HUD will be present to brief owners/operators from NY, PA, NJ, MD, DE, and all of New England. And I’ll deliver the ‘State of the MHIndustry & LLLCommunity Asset Class!’ keynote – with this added feature: ‘Watch Out, Here Comes Another Property Consolidation Wave!’ – based on a feature in the March issue of the Allen Letter professional journal. This NYHA Super Symposium is a ‘can’t miss’ event for MHIndustry folk in the Northeast. Phone Nancy Geer @ (518) 867-3242.

To register for the 24th annual Networking Roundtable, affiliate with COBA7® – to receive a copy of the 17th annual National Registry of (all) Lenders; and, sign-up to attend either of the two Manufactured Housing Manager® classes, simply telephone the Official MHIndustry HOTINE: (877) MFD-HSNG or 633-4764.


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