Told you so! (&) What’s the $ margin?
Blog # 547 @ 15 August 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 obtainable housing! Next MHM class @ 9/11/19
INTRODUCTION: Three widely disparate topics today: threat of national rent control – a fact or fiction? How ‘bout the $ difference between production value of a new HUD-Code home and its’ retail sale value? And five things many might want to see occur inside our nation’s capitol beltway, but don’t hold your breath! If you enjoy these blogs, you’d really appreciate the Allen Letter each month! Just go to www.educatemhc.com to subscribe.
TOLD YOU SO!
This from Doug Ryan’s recent article in Prosperity Now publication: “The (manufactured housing) industry needed a regulatory framework on construction in 1976, and it needs a new framework for community ownership and operation in 2019. (S0) house bill HR 2832 is a start!”
If Doug is right about this second historic ‘start’, what do you, as a land lease community owner/operator, suppose the ‘finish’ or regulatory legislation will be like if/when passed?
Remember now, we’re talking about the consequence, in large part, due to flagrant site rent increases by some property portfolio firms owned, in some cases, by private equity management firms.
If somehow this is ‘new news’ to you, take time NOW, to scroll back through blog postings # 543 thru 546 on this website.
Where do we go from here? Well that’s up to you. As host, along with EducateMHC, of the upcoming 28th annual Networking Roundtable (8-10 September in Indianapolis, IN.), I’ve been asked ‘time & again already’ to arrange private and public meetings among concerned parties, concerning this threat of national rent control. Registered attendees already represent a broad spectrum of land lease community owners/operators, from small Mom & Pop owners to several of the 500 known portfolio ‘players’. Will you be present for this year’s event? Not too late to register. Simply go to www.educatemhc.com right away.
$44K Margin Between Production & Sales Value?
You tell me. Some statisticians say the 96,555 new HUD-Code homes shipped during year 2018 sold for $6.4 billion in retail value, or an average of $66,200 per manufactured home, all configurations. AND, the estimated ‘production value’ of those 96,555 new HUD-Code homes was $4.2 billion or $43,126 per manufactured home, using Dr. Stephen C. Cooke’s 2013 base year data. This calculates to a $2.2 billion margin between the two values, or $23,074 per HUD-Code manufactured home.
OK ‘out there’ anyone else have a better handle on this elusive subject? Personally, given the increases in manufactured housing product cost between years 2013 & 2018, the $43,126 production value is probably too low to be accurate today. But hey, what else do we have to work with at this point in time? I keep hearing rumors: ‘We’re working on an update’, but we continue to wait.
Let me know your thoughts on this matter via firstname.lastname@example.org or (317) 346-7156
On a Purely Political Note…
When I first read Mark G. Brennan’s ‘Five Modest swamp-Draining Proposals’, in CHRONICLES, a magazine of American culture, I just knew I had to prepare and share a digest of the author’s points with you:
• “Remove all air conditioners (and fans) within the geographic limits of Washington, D.C.” Some want a Green New Deal? “…what a better way to kick it off than to eradicate unnecessary energy use?”
• “All congressmen, senators, and federal employees must prepare their own taxes with no help from anyone, either their accountants nor their spouses.”
• “Congressional representatives and senators will serve as Casualty Notification Officers (‘CNOs’) for the deaths of all military personnel in their districts.”
• ‘All congressmen, senators, and federal employees will be paid the lesser of their current salary or the median national income. According to the U.S. Census Bureau, the median household income for 2017 was $61,372.”
• “All congressmen, senators, and federal employees must send their children to the Washington, D.C., public schools.”
George Allen, CPM, MHM
Box # 47024, Indianapolis, IN. 46247