To Party or Persuade? – MHShipments Flounder – Good bye D&R?
Blog # 509; Copyright @ 11 November 2018; community-investor.com
Perspective. ‘Land lease communities, previously manufactured home communities, & ‘mobile home parks’, comprise the real estate component of manufactured housing.
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INTRODUCTION. Much to pay attention to in this week’s blog posting (#509). How I favor representing you to the affordable housing crowd in Washington, DC., rather than networking at MHI’s NCC division/s annual Fall Leadership Forum. Do you realize new HUD-Code housing production, during September, fell well off the pace to shipping 100,000 new homes by year end? And there’s a ‘breaking story’ I can only titillate you with at this time. Finally, a couple responses from last week’s OPEN LETTER to My Friends in the MHIndustry.
To Party or To Persuade?
‘Why I did not participate in MHI’s NCC Division’s Leadership Forum this week.’
The choice has been clear for awhile. It was clear last Fall (2017), when several manufactured housing industry businessmen (Spencer Roane, MHM; Paul Bradley, MHM, & me) attended the National Housing conference in Washington, DC., to input: ‘Solving the U.S. Affordable Housing Crisis’. And it’s just as clear this Fall, as I prepare to participate in the 2019 NH conference. Frankly; as a small businessman, I cannot afford a high-priced networking conference in Chicago one week, then participate in an affordable housing solutions conference the next, in Washington, DC. It’s that simple.
Bottom line for me? Far more important to persuade ‘housers’ – including legislators and regulators, of all stripes, how HUD-Code manufactured housing& land lease communities make for the most practical of affordable housing solutions available in the U.S. today! Someone, in my opinion, has to step forward to make the case – and it’s best done by those with ‘skin in the game’, someone not ‘paid’ to do someone else’s bidding.
So, Yes, I missed seeing many friends and colleagues at MHI’s NCC division’s Fall Leadership Forum in Chicago; but it’s money much better spent advancing the cause of manufactured housing – with an eye to further increasing the new home shipment volume we’ve experienced YTD 2018. Anyone disagree with that line of thinking? Didn’t think so.
Speaking of money. The funds used to pay for these trips to Washington, representing manufactured housing & land lease communities among affordable housing ‘housers’ is coming solely from COBA7, a division of GFA Management, Inc., dba PMN Publishing. No one else! Point? There needs to be an influx of $, from somewhere, if this good work is to continue. If not; well, our industry & asset class presence & favor, among the affordable housing crowd, will diminish rather than grow. Do we want more new HUD-Code homes shipped than at present? If interested, phone me @ (317) 346-7156.
Are YOU Paying Attention?
– to fluctuating MHShipment ‘#s & $s’ this past Summer headed into the Fall?
If not, you should be, and here’s why. The number of new HUD-Code homes shipped during September 2018 was 1,638 fewer than shipped the previous month, i.e. 9,157 (-) 7,519 (=) 1,638. And not only that, this September new home shipment total is also 61 units fewer than shipped during September 2017! What’s happening?
Another way to look at it is this. If we don’t do better than shipping 7,519 during each of the next three months (October, November & December), our possible year end total of new homes shipped 3,000+/- fewer than the 100,000 new HUD-Code homes anticipated during the past several months, i.e. 7,519 (Sept.) X 3 months = 22,557 (+) 74,354 new HUD-Code homes shipped YTD (=) 96,911 or 3,000+/- homes fewer than targeted!
D&R Shipments to End, On-site Inspections to Begin?
HUD-Code Housing Manufacturers to Eschew D&R Shipment Policy of Past 70 Years, in Favor or On-site Inspections of New Home Site Preparation, Home Installation & Setup!
It’s certainly not a ‘done deal’ yet, but the Big 3-C HUD-Code housing manufacturers are talking about how to curtail the astronomical home service and warranty $$$ expenses oft caused by poor to marginal site preparation, home installation and setup.*1
How ‘big’ is the $$$ problem? Informed sources put the total, when talking about the Big 3-C HUD Code housing manufacturers, at hundreds of millions of dollars per year!
So, what’s the solution? That’s the next step. Federal regulation of installations hasn’t worked, and there’s been no real or effective self-policing to date; but there are practical alternatives:
ENDING THIS ‘BREAKING STORY’ HERE, FOR THE TIME BEING. Will likely continue as the lead story in the December issue of the Allen Letter professional journal. Now, picking up where this story left off in the previous paragraph…
And there are likely other implementation alternatives not identified here. For the time being, it’s enough information, and to know, this is becoming, if not already, a Major Hot Topic among HUD-Code housing manufacturers…finally.
Responses to ‘An OPEN LETTER to My Friends in the MHIndustry’
Relative to leadership of the manufactured housing industry & land lease community real estate asset class:
“Oh! the community side of the business has a leadership gap? Nope. There are plenty of leaders…(just) in their own businesses. The void really is leaders willing to step onto the national scene to lead the industry as a whole. You named many of them! But where is the next generation?
I think they are there, they just need a push. My solution is simple. Since the industry has rebounded, it’s time for the states to return to sending expense-paid delegates to MHI and other national gatherings. That is where the last generation stepped out of the shadows, both as community and retail leaders.”
These insightful remarks and suggestion offered by a retired state association executive still passionately interested in the healthy future of the industry & property type.
And then there’s this poignant tale from a long retired entrepreneurial business executive.
“Mine was a sudden, and complete break from participation. I was bought out, stayed to help for a couple years, retired to caretake my wife and travel in our RV.
My legacy lies in the products people are still enjoying, the few real friends from the MHIndustry that still call/speak/write to me and in the successes and happiness I see in so many of our former employees.
To you I say, stay or go; and in either case, your curiosity will serve you George. You have your family and your legacy. So, when you see it is time, you will take a walk away, not look back, and go to that which is next. No fear my friend.”
That last line certainly sets the stage for me to say, ‘Now is the time!’ But it isn’t. Geesh; before year end I’ve got to compile and publish the 30th anniversary ALLEN REPORT, attend the National Housing Conference in Washington, DC., representing manufactured housing & land lease communities to the affordable housing ‘housers’ from throughout the US., and more….
Speaking of the 30th anniversary ALLEN REPORT. If you’re reading this and are a property portfolio owner/operator of land lease communities, it’s not too late – just yet – for you to submit your property and rental homesite counts for inclusion in said report. Just do so via email@example.com. And if you completely fill out the questionnaire (Ask for it when you email me) and return it, you’ll receive a FREE copy of the ALLEN REPORT when it is distributed during January 2019. That’s an immediate savings of $544.95!
George Allen, CPM, MHM
COB A7, a division of GFA Management, Inc., dba PMN Publishing
Box # 47024
Indianapolis, IN. 46247
Official MHIndustry HOTLINE: (877) MFD.HSNG or 633-4764: