Wednesday, May 28, 2025
Facebook Instagram Linkedin Pinterest Twitter
Home Blog Page 34

A Primer on the HUD Code

By
Contributed Content
-
HUD Code Primer part I

Part I: The Manufactured Home Consensus Committee

By Devin Leary-Hanebrink

Leary-Hanebrink

This past January, HUD published its “third set” final rule amending the HUD Code. The effective date was originally March 15, 2021. However, in response to requests from several manufacturers struggling with delays caused by the COVID-19 pandemic, HUD agreed to postpone implementation. The new date, Monday, July 12, gave manufacturers and other stakeholders more time to navigate production backlogs and implement the required system updates necessary to comply with the new regulations.

While the final rule is important, perhaps a more fundamental question is: How is the HUD Code even updated?

For many manufactured home professionals — including more industry veterans than would probably care to admit — how the HUD Code is updated remains cloaked in a bit of mystery. After this two-part column, readers should better understand the HUD Code and the rulemaking process.

The Manufactured Home Construction and Safety Standards Act

Since 1974, when the National Manufactured Housing Construction and Safety Standards Act was signed into law — establishing a federal minimum standard for the industry — HUD has maintained jurisdiction over the construction, safety, and administrative rules for manufactured housing. Technically, the 1974 Act originally was titled the National Mobile Home Construction and Safety Standards Act, but was retroactively amended by the Housing and Community Development Act of 1980, which also replaced every instance of “mobile home” with “manufactured home”.

Decades later, the Manufactured Housing Improvement Act of 2000 substantially amended the 1974 Act. While the 2000 Improvement Act introduced several important updates, the creation of the Consensus Committee is critical to understanding how the HUD Code is amended.

The Manufactured Home Consensus Committee

The Consensus Committee — more commonly known as the Manufactured Home Consensus Committee or MHCC — is a federal advisory committee that provides recommendations to HUD regarding the adoption, revision, and interpretation of the manufactured housing construction and safety standards and the procedural and enforcement regulations (more commonly referred to as the HUD Code), among other responsibilities. It effectively replaced the 1974 Act’s National Manufactured Home Advisory Council.

The MHCC is composed of 21 HUD-appointed voting members, none of whom can be federal government employees, and one non-voting member who represents HUD. The Program Administrator for the Office of Manufactured Housing Programs is HUD’s Designated Federal Official. To promote diverse perspectives, voting members are divided into three groups

  • (i) Seven producers or retailers of manufactured housing (Producers)
  • (ii) Seven members who represent consumer interests, such as manufactured home residents or consumer organizations (Users)
  • (iii) Seven general interest and public official members (General Interest)

The Producers and Users are self-explanatory, and General Interest is less clear; while this group typically consists of representatives from the Primary Inspection Agencies and State Administrative Agencies, it can include other representatives, such as industry consultants and advisers. Further, to promote independence and prohibit collusion, the 2000 Improvement Act also introduced additional safeguards, including term limits, staggered terms, supermajority voting provisions, and a financial independence test and post-employment ban for some members.

The MHCC has established four subcommittees — the Regulatory Enforcement, Structure and Design, Technical Systems, and General Subcommittees — each responsible for different parts of the HUD Code. Proposals that require a more comprehensive review, such as technical changes to plumbing or electrical provisions, might be delegated to a subcommittee, which will then report back to the MHCC with recommendations.

Federal Oversight of Advisory Committees

Like all federal advisory committees, the MHCC is subject to several administrative and public access requirements, including the Administrative Procedure Act (APA) and the Federal Advisory Committee Act (FACA). For example, in accordance with the 1974 Act as amended and the FACA, HUD is required to convene the MHCC not less than once during each two-year period, publish in the Federal Register advance notice of each meeting, including advance notice of any subcommittee meeting, and hold all meetings open and available to the public, whether meeting in-person, virtually, or via conference line. The MHCC also is expected to operate in conformance with procedures established by the American National Standards Institute.

Additionally, all MHCC recommendations approved by HUD must go through the APA’s notice-and-comment rulemaking process to ensure the public has an opportunity to review and comment on the proposed changes before becoming law.

Part II: Amending the HUD Code

Given its component parts, the HUD Code is more comprehensive than the 1974 Act and more robust than a typical building code. Further, while it is true the 1974 Act has undergone few revisions since inception, the HUD Code is frequently updated — roughly a half-dozen times over the last decade alone.

Admittedly, not every update is a comprehensive revision. For example, roughly eight years span the time between publication of the “second set” and “third set” of HUD Code amendments. However, during that time, HUD and the MHCC updated the requirements for ground anchor installations, introduced Subpart M, amended the RV exemption, and revised the formaldehyde notice requirement. Most recently, with the “third set” final rule, manufactured housing officially transitioned to the 2021 HUD Code, which is more current than virtually any other contemporary building code or standard adopted by a U.S. jurisdiction.

Gathering Proposals to Update the HUD Code

Like any standard-setting organization (SSO), HUD is not only responsible for reviewing proposals to update the HUD Code but also for establishing the framework and cadence of review. Generally, an SSO will update its codes and standards every three, four, or five years. For example, the International Code Council updates its family of International Codes on a three-year cycle and the National Fire Protection Association updates its standards every three to five years. However, instead of a three, four, or five-year cycle, HUD has implemented a rather ambitious two-year plan.

Technically, there is no statute or regulation that specifies how frequently the HUD Code must be updated. The 1974 Act only requires HUD to convene the MHCC not less than once during each two-year period to consider revisions. HUD has interpreted this as requiring it to solicit and collect proposals for revising the HUD Code, and then assemble the MHCC as frequently as necessary, but no less than once every two years. However, unlike SSOs, which strictly adhere to their development cycles, just because HUD and the MHCC review proposals on a two-year cycle does not mean the HUD Code is amended every two years. Sometimes it is updated more — or less — frequently.

Preparing a Federal Register Notice to Update the HUD Code

After the close of a review cycle, the next step is assembling the MHCC. However, to ensure the public has ample opportunity to participate, HUD must publish advance notice of every MHCC meeting in the Federal Register. During these meetings, the MHCC will review outstanding proposals, approve, modify, or reject each one, and then prepare for HUD a report summarizing its recommendations.

HUD will review the MHCC’s recommendations and work with its Office of General Counsel (OGC) to develop them into a proposed rule for publication in the Federal Register. As part of this step, HUD is also responsible for ensuring the rule complies with several federal requirements, including the APA, Regulatory Flexibility Act, and the Paperwork Reduction Act. Further, the proposed rule must be reviewed by the Office of Management and Budget (OMB), the largest office within the Executive Office of the President. OMB will confirm that the proposal is consistent with the Administration’s broader policy directives. Given that HUD is a United States federal executive department and the HUD Secretary is nominated by the President, rarely — if ever — will a rule be published without OMB approval.

Once approved by OMB, the proposed rule is then published in the Federal Register and open for public comment, which usually runs for 30-60 days. After the window closes, HUD will review any comments received and, at its discretion, incorporate or reject them, with an explanation of its decision. HUD might even withdraw or abandon its efforts, as it did with its interpretive bulletin regarding frost-free foundations. Assuming HUD moves forward with its proposal, it will prepare a final rule for OMB review. After another round of approvals, the final rule will be published in the Federal Register with a future effective date for the new requirements.

The ‘Third Set’ Final Rule

HUD’s “third set” final rule illustrates the complexities of the regulatory change process. In January 2020, HUD published its proposed rule, which started the clock on a 60-day comment period. However, given that HUD’s “second set” final rule was published in late 2013, the “third set” proposed rule is actually the culmination of no fewer than six years of MHCC recommendations over three HUD Code review cycles.

HUD ultimately received over 40 public comments, which is a lot for a manufactured housing initiative (although, for perspective, it is not uncommon for other federal rulemaking initiatives to receive hundreds of comments). It then spent the next nine months reviewing these comments and coordinating with its OGC to develop a final rule that incorporated the public’s feedback. 

Next, HUD had to secure a second OMB approval to make sure everything was still aligned with the Administration’s objectives. Finally, on January 12, 2021, a year after publishing its proposed rule — and seven years since it published its “second set” final rule — HUD published its “third set” final rule. Six months later, on July 12, 2021, the final rule went into effect.

In conclusion, the HUD Code is not an antiquated system that trails behind other codes and standards in terms of safety and technical proficiency. Instead, amending it is a deliberately methodical process. By HUD’s own estimation, it takes 10 steps (and usually a few years) to get from an “initiating event” to publication of a final rule. Unfortunately, critics have latched onto this, turning it into a common refrain: the HUD Code is never updated. While it may not be updated as routinely as other codes and standards, inconsistency is not a proxy for inferiority.

Devin Leary-Hanebrink practices with McGlinchey Stafford PLLC. He helps clients navigate state and federal government agencies that regulate a wide range of industries, including banking, consumer financial services, housing, and construction. McGlinchey Stafford PLLC is a multi-service law firm with a national presence, serving clients from offices in Alabama, California, Florida, Louisiana, Massachusetts, Mississippi, New York, Ohio, Tennessee, Texas, and Washington, D.C.

There’s Still Time to Refi

By
Patrick Revere
-
low interest rate loans home community

Interest rates for everything from a home mortgage to the array of commercial property loans have remained very low through and coming out of the pandemic.

Most lenders and analysts surveyed in late summer by Bankrate said there continue to be opportunities for home and property owners to save money through restructuring a loan under current rates.

In the survey, 22% of Bankrate’s respondents said rates would go down, and 67% anticipated rates staying steady. And through the spring and summer with mortgages rates hovering around 3% and commercial loans roughly in a range of 3-7% depending on loan type, lenders report that about two-thirds of August business was in refinance, according to the Mortgage Bankers Association.

“It’s important to pause for a moment and recognize that monetary policy, with short-term interest rates set near zero, has effectively become looser as inflation has moved upward. In the past year, the consumer price index is up 5.3%, which means that a short-term interest rate target of 0.1% generates a ‘real’ (inflation-adjusted) interest rate of -5.2%.  By contrast, the lowest real short-term interest rate in 2020 was  -1.4% in March 2020… the lowest real rate in the aftermath of the Financial Crisis was -3.8%.”

— First Trust Advisors Chief Economist BrianWesbury

Commercial property owners who refinance often are motivated to take advantage of lower interest rates for a down payment on a new property, to reinvest and improve a property, or to have more cash in the bank.

Commercial Loan Types and Early September Rates
  • Bridge Rates : 4.12% – 13.12%
  • CMBS Rates : 3.04% – 4.60%
  • Construction Rates : 4.75% – 9.75%
  • Conventional Loan Rates: 2.12% – 6.29%
  • Insurance Rates : 2.78% – 5.58%
  • Mezzanine Rates : 4.54% – 9.10%
  • Private Banking Rates: 2.12% – 4.54%
  • SBA 7a Rates : 2.25% – 5.75%
  • SBA 504 Rates : 2.59% – 2.85%
  • USDA Rates : 3.25% – 6.25%

Economists point to the continued concern with the coronavirus, particularly the Delta variant, and its effect on the labor market. August numbers came back weaker than anticipated, suppressing any expectation the Fed may make a move to increase rates.

As the economy improves, and particularly if inflation takes hold, the Fed will begin to raise rates.

“We have said that we would continue our asset purchases at the current pace until we see substantial further progress toward our maximum employment and price stability goals, measured since last December, when we first articulated this guidance,” Chair of the Federal Reserve of the United States Jerome Powell said in August. “My view is that the “substantial further progress” test has been met for inflation. There has also been clear progress toward maximum employment.”

Bookmark MHInsider for the latest in manufactured housing news, and to keep up on all of the manufactured housing industry trends.

MH Advantage®-eligible Subdivisions Pave Way for Stronger Industry Growth

By
Contributed Content
-
mh advantage-eligible homes clayton homes
Photo courtesy of Clayton Homes.

By Michael Dixon

Average U.S. home values have increased nearly 70% since 2011. While some segments of the economy struggled during the COVID-19 pandemic, increased demand continued to drive home prices up. Unfortunately, these trends put homeownership further out of reach for low- and moderate-income homebuyers who rely on affordable housing options to build equity and wealth.

It’s Fannie Mae’s mission to provide affordable housing opportunities across the country, and we recognize the critical role manufactured housing plays in fulfilling that mission. The high-quality, affordable housing segment is needed now more than ever before as rising prices put site-built homes out of reach for more and more borrowers.

Manufactured Homes Have Come A Long Way

In the decade between 2010 and 2020, shipments of manufactured homes have almost doubled in the United States. Despite that fact, manufactured homes represent only 6.3% of the nation’s housing stock, and 10.4% of new houses sold.

These numbers, while modest today, represent a great opportunity for growth. With aesthetic features like higher-pitched rooflines and low-profile foundations, durable siding materials, and high-end interior finishes, we can see great potential for incremental sales of today’s modern manufactured homes, which is why we launched MH Advantage® financing in 2018 to support this new and growing market.

MH Advantage financing is different from traditional manufactured home mortgages in several critical ways. Homebuyers purchasing eligible homes may qualify for home loans with as little as 3% down and lower interest rates than other manufactured home loan options. What’s more, if there aren’t other MH Advantage homes available as comparables, appraisers use the best available comparable home, which may include site-built homes.

With similar features and similar financing to site-built homes, MH Advantage-eligible homes are positioned to appeal to homebuyers who might not have considered manufactured homes before, growing market share and increasing sales of this home type. And new sales channels can help replicate the site-built buying experience as well.

MH Advantage-eligible Homes in Subdivisions

Picture a homebuyer driving down the road. She sees a sign advertising new homes and decides to go check it out. The homebuyer meets with a sales rep, who takes her on a tour of a model home, maybe several, and talks through all the customization options she can choose from.

This could describe someone visiting a manufactured home retailer, or it could describe someone visiting the sales office of a homebuilder starting a new community. The consumer experience in these two situations has a lot in common. And the end result, a brand new, high-quality, customized home permanently affixed to a plot of land, is the same as well.

But there are a number of big differences to consider. For example, a site-built home in a subdivision will often be more expensive and take longer to build than a manufactured home. It’ll be subject to weather delays and involve significantly more waste. And with material and labor costs skyrocketing, every bit of efficiency can make real impacts on the bottom line.

With MH Advantage-eligible homes maintaining aesthetic and durability features of site-built homes, they are an ideal fit for builders and developers to consider in their next subdivision model when looking to offer a more affordable product to customers without sacrificing the quality their customers expect. Industry stakeholders are already seeing some positive results as they begin to realize the value of including MH Advantage-eligible homes in subdivisions.

MH Advantage and CHOICEHome eligible home gray garage
An MH Advantage-eligible home. Photo courtesy of Fannie Mae.

Seeing Early Successes : High-Quality Housing to Meet Growing Demand

Strong economic activity in the surrounding regions has sparked an interest in Oroville, California, as an appealing, affordable destination for homeowners in recent years. While the Butte County city experienced a 10.7% population growth between 2010 and 2019, it reported a growth of 20% between August 2019 and August 2020. This city has a substantial need to quickly ramp up its affordable housing supply. 

A partnership between Skyline Champion Corporation and west-coast builder W&R will deliver 134 MH Advantage-eligible homes, with the first model units being installed in a new subdivision in 2021. These newly built MH Advantage-eligible homes are estimated to cost nearly $100,000 less than comparable existing site-built properties in the Oroville area, lending credence to the idea that newly constructed manufactured homes are cost-effective, without compromising on quality or aesthetics. 

Traditional Retailer Changes Business Model to Capture New Market

In the Cordell Oaks subdivision, located in Guadalupe County, Texas, the population continues to grow, and home prices continue to increase.  The metro area population of nearby San Antonio saw a 2.07% increase between 2020 and 2021, while the average sales prices for new and existing homes increased 5% during the 12 months ending July 2020. 

One of the home builders who developed this community chose MH Advantage-eligible homes to offer affordable housing with prices substantially below comparable homes in the area. The resulting Cordell Oaks subdivision features 21 one-acre lots, and it serves as the first full MH Advantage-eligible community in Texas. The home prices start at $201,995, while similar site-built homes on an acre of land are at a $300K price point in that area. 

The project is a result of the work of Spark Homes and Champion Home Builders.

Manufactured Homes are the Affordable Homes of the Future

Manufactured homes already provide an affordable source of housing to 22 million Americans. Still, as home prices increase and borrowers continue to be priced out of the site-built market, there remains a gap that manufactured housing is poised to fill. Particularly with MH Advantage-eligible homes, getting these high-quality products in front of consumers is the first critical step to breaking down mental barriers that stand between a buyer looking for a site-built home and considering a manufactured home.

MH Advantage-eligible subdivisions give consumers that opportunity to see manufactured homes with all of the must-have features and finishes in an affordable package in the same environment they’re used to seeing site-built homes. These subdivisions will help site-built homebuyers see that a manufactured home is a solution that puts the house that they want within their reach.

Michael Dixon is on Fannie Mae’s Environmental, Social and Governance team as part of Impact and Engagement. He manages the manufactured housing initiatives to support Fannie Mae’s Duty to Serve Plan.

SECO21 in Full Swing

By
Patrick Revere
-

The SECO National Conference of Community Owners Holds Virtual Meeting For Manufactured Housing Professionals

SECO21 is underway with hundreds of manufactured housing professionals attending and involved in a variety of educational and networking opportunities, including solo presentations, expert panels, mini-TED talks, fireside chats, and a cocktail hour.

During a session called Ready, Set, Grow: Developing and Expanding with Manufactured Housing, Scott Roberts, of Roberts Communities, led the audience through a session on the potential opportunity and common pitfalls in breaking new ground.

“We need more and more people to take the risk and develop new communities,” said Roberts, who has a large presence in Texas and the west.

But, Roberts warned, the development business is not for the faint of heart.

“It seems every time I’ve purchased a property I’ve been in a flood zone,” he said. “It gets very expensive.”

Roberts said developers of a new ground-up manufactured home community can expect to invest about 25% more than the original plan indicates, and that it can take as many as five years to begin making money on the property.

“Flatter is better. Don’t try to work against mother nature. And you have to be on a flat surface to make manufactured homes work they way they should,” he said.

Roberts said he prefers to develop in major metro areas with a population of 300,000 or greater, and preferably in a place with good job growth.

“I look for cities with expensive apartments,” Roberts said. “Your real competition at that point is the $200,000 home buyer.”

Roberts, a second-generation owner, said he’s built his track record with attractive, affordable communities and a winning presentation ready when he goes to talk with planning and zoning officials.

“We have no issued getting zoning,” Roberts said. “If more people do high-quality projects… the more communities you’ll get to create.”

Don Westphal, of Nadi Group, has consulted with Robert Communities on planning and design, and affirmed the approach toward answering all local questions and concerns on a new project from the outset.

“Don’t be caught flat-footed,” Westphal said. “Have answer to all of the questions… everyone is going to want to pick apart your plan.

“Presentation is what it’s all about,” he continued. “Exhibit in your presentation what the impact on the environment will be, and what steps you’re taking.”

Westphal emphasized building a team, explaining everyone’s qualifications, and preparing to talk with neighbors about specifics.

“Where will the entrance for the community be? It seems like a small thing, but it’s not. Is there a home across the street that can expect headlight through the wide each day as residents are coming or going?”

SECO21 is underway and continues through Oct. 1. Check back for updates from MHInsider, the leader in manufactured housing industry news, and bookmark our site for more news and information about manufactured housing industry events and conferences.

JLT Market Reports for Manufactured Home Communities in Calif., Okla., Texas Available

By
Patrick Revere
-
JLT Market Reports Oklahoma Manufactured Home Communities
Watson Estates in Chickasha, Okla.

Datacomp has made available its September 2021 JLT Reports for mobile home rent comps, occupancy, and other vital data from manufactured home communities in Oklahoma, California, and Texas.

JLT Market Reports provide detailed research and information on communities in 186 housing markets throughout the United States. These include the latest rent trends and statistics, marketing programs, and a variety of other useful management insights.

Datacomp maintains and provides the JLT Market Reports and is the nation’s #1 provider of market data for the manufactured housing industry. JLT Market Reports are recognized as the industry standard for manufactured home community market analysis.

September 2021 manufactured housing market data published in JLT Market Reports for the three states include information from 28 markets on 1,027 “All ages” and “55+” manufactured home communities.

Altogether, the reports from California, Texas, and Oklahoma manufactured home communities include data representations for 217,788  homesites.

Regional Trends in Manufactured Housing Community Rent

  • Pacific region manufactured home communities show a year-over-year 2.8% increase in lot rent and a 0.4% occupancy increase across 974 communities.
  • Southwest region manufactured home communities show a year-over-year 4.6% increase in lot rent for and a 0.7% occupancy increase across 510 communities.

“Rent and occupancy rates increased modestly through most markets in the three states’ JLT Market Reports updated and published in September 2021,” Datacomp Co-President and Chief Business Development Officer Darren Krolewski said. “Only one California market among retirement communities showed an above-average rent increase.”

What’s in JLT Market Reports?

Each JLT manufactured home community rent and occupancy report from Datacomp has detailed information about investment grade communities in the major markets. The detailed information includes:

  • Number of homesites
  • Occupancy rates
  • Average community rents, and increases
  • California rent control and next increase data
  • Community amenities
  • Vacant lots
  • Repossessed and inventory homes, and much more

JLT Market Reports also include management insights that rank communities by the number of homesites, occupancy rates, and highest to lowest rents. Established reports show trends in each market with a comparison of September 2021 rents and occupancy rates to September 2020, as well as a historical recap of rents and occupancy from 1996 to the present date in most markets.

The September 2021 JLT Market Reports for Texas, California, and Oklahoma manufactured home communities are available for purchase and immediate download online at the Datacomp JLT Market Report website, or they may be ordered by phone in electronic or printed editions at (800) 588-5426.

Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed business decisions.

The Promise of a New Model with a Rich History

By
Patrick Revere
-
augusta communities nonprofit california

Augusta Communities is Unique Among Industry Nonprofits 

Manufactured home communities have been a hot commodity for owners and investors for years now, and with much of the consolidation having occurred it’s often said to be a difficult market for buyers. There are too few communities to choose from, prices are high, and you’re competing against a lot of other potential buyers.

For Suzanne Taylor and her team at Augusta Communities, a 501(c) 3 affordable housing organization, the challenge is all the more real.

“Augusta is competing with for-profit investors who have larger organizations, plenty of access to capital and offer a very quick close. For-profits can take on more investment risk. The motives of most for-profit owners are different than ours. Our central goal is to maintain housing affordability for our residents and to improve their community,” Taylor said. “In the nonprofit model there’s no distribution of cash flow, it goes back into our efforts to build the community and fund future acquisitions.”

The nonprofit model was born out of thoughtful negotiations with Southern California municipalities more than 20 years ago at a time when residents were reaching out to their city officials for assistance in maintaining housing affordability. Since that time, Augusta has acquired six communities of its own and manages parks for local municipalities. 

“Augusta’s nonprofit model was developed as a way to work with municipalities to fund these acquisitions because they can issue tax-exempt bonds with favorable interest rates and 100% financing or more,” Taylor said. “That allowed us to be more mission-driven in general, putting the residents’ needs first in all of our communities. 

Augusta’s financing options have expanded beyond bond financing. In early summer it closed on a $15 million Duty-to-Serve Fannie Mae loan.

The nonprofit model allows Taylor and her all-women-led management team — Accounting and Finance Director Chrissy Summerville, Business Development Director Erica Taylor, and Director of Community Services Vanessa Hatch — to make common area improvements, upgrade utilities, renovate or replace homes, and offer a robust resident services program.

Resident programs within the communities include…

  • Financial assistance
  • Vaccination clinics
  • Summer camps
  • College scholarships
  • Free tax prep
  • Homework clubs
  • English language programs
  • Health fairs
  • Good neighbor awards, and more

Erica Taylor, Suzanne’s daughter, calls the effort a “full-time community improvement project”.

“It is important to have a relationship with residents and continue to work to preserve manufactured home parks as affordable housing,” Erica Taylor said. “We always are working hard to make our communities a better place to call home. Our residents really like living here and we want to give as much back as we can. We meet and confer with our residents and reinvest project revenues back into our communities.”

Augusta’s model differs from the resident-owned community model.  In a resident-owned community, the park is operated by a constituency of residents who serve on a governing board that oversees the operation from a legal and financial perspective, and can advise on mission-driven operations. Augusta is overseen by a volunteer board and managed by third-party professional management groups that specialize in manufactured housing.  

“It’s so technical, how you manage your property, with rents, human resources, how you participate in government-sponsored improvement projects. It’s hard,” Suzanne Taylor said. “Our residents are pleased that they don’t have to manage each others’ space. They rely on our team and our board.”

Augusta must comply with government-imposed financial and affordability regulations that guaranty long-term housing affordability.  These regulations require  Augusta Communities to maintain at a minimum 20% of each of its parks for low-income housing, but overlaying agreements bump that requirement much higher to nearly 90@ in some projects.

‘Gateway to the Sequoias’

A somewhat recent acquisition for Augusta Communities has been rebranded from Mooney Grove to Rancho Robles, a community in Visalia, about 45 miles south of Fresno.

“It’s a beautiful place with all of the services that make a great city,” Erica Taylor said. “Everyone in the community is really happy, and proud of what we’ve been able to do there, and we are too.

“We have renovated the clubhouse, moved the office from clubhouse to a new model home, gated the entrances and added solar street lighting, installed new signage with its new name and branding, renovated older homes, installed new home, applied for the gas conversion program, and have begun offering resident service programs,” Erica Taylor said.

The replacement of homes has been aided by partnerships with other nonprofits, a blessing for an organization that lacks access to capital many for-profit organizations are finding from Wall Street and elsewhere.

She said even with all of the recent changes at Rancho Robles, there are 30 cleared and ready sites awaiting new homes. Those new homes will be paid for by capital made available by the refinancing of other communities, which is one way the nonprofit housing organization expands its efforts.

“We help individuals solve problems,” Suzanne Taylor said. “We work very hard to have strong relationships with our residents as well as our investors and our regulatory and funding partners.  

All of Augusta’s communities are in California, but the organization may move beyond the state in the coming months and years.

“We don’t have any real geographic limitations from here,” Erica Taylor said. “Ideally, we’re looking to go from Texas west.”

HUD Single Family Note Sale Nov. 10 Emphasizes Nonprofit Participation

By
Patrick Revere
-
HUD building in DC

Competitive bid sale provide priority bidding to non-profit organizations, units of state and local government

The U.S. Department of Housing and Urban Development’s Office of Asset Sales will conduct a competitive bid HUD-held vacant note sale (HVLS 2022-1) on Nov. 10, 2021.

The sale will include approximately 1,730 reverse mortgage notes secured by properties where the borrower is deceased and not survived by a non-borrowing spouse. Consistent with the Biden-Harris Administration’s Sept. 1 announcement that more HUD-owned properties should be returned to future owner-occupancy, HUD will offer up to 50% of the notes in the multi-loan pools for bids first by eligible non-profit organizations and units of state and local government. Previous sales prioritized approximately 10% of the mortgage notes for this purpose.

“This sale provides greater opportunities for non-profits and local governments to purchase properties that can then be made available for affordable homeownership and support neighborhood revitalization,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri.

The sale seeks to increase affordable housing supply, expand opportunities for homeownership and rental housing, and revitalize communities through the disposition of these notes, including:

Selling properties to low- to moderate-income homebuyers at a price affordable to households earning less than 120% of the Area Median Family Income; and

Leasing properties at rents affordable to households earning less than or equal to 80% of the Area Median Family Income.

To encourage more non-profit organizations and local governments to participate in this and future sales, HUD is hosting a virtual training conference for such organizations on Sept. 29. The conference, “Expanded Opportunities for Participation,” will include presentations on the note sale process, technical considerations, and an overview of the mortgage notes and processes for the November sale.

HUD’s Office of Asset Sales is part of the Office of Finance and Budget in HUD’s Office of Housing. All mortgage notes to be sold through the Nov. 10 sale are for vacant and abandoned properties secured by Home Equity Conversion Mortgages assigned to HUD following the death of the borrower and any non-borrowing spouse where the time for heirs to come forward has elapsed. 

Manufactured Housing Industry Happenings

By
Patrick Revere
-
manufactured housing industry happenings

Updates and Industry Happenings from the Manufactured Housing Industry

September/October Manufactured Housing Industry Happenings

Transactions

Ownership Group Buys 20 Acres in Kansas for Community Expansion

Green Courte Partners acquired a 20-acre land parcel adjacent to Conestoga, a land-lease community it owns in Gardner, Kansas, a suburb of Kansas City, to develop an added 98 homesites for the community, bringing the property to 757 homesites. Green Courte owns and operates 7,000 homesites nationally. The new section is in development as “Lakeside at Conestoga” and offers a lake, walking paths, and a pavilion, in addition to the clubhouse, pool, playground, and other amenities at Conestoga.

Patrick Industries to Construction La Porte, Ind., Factory

One of the leading employers from Elkhart, Ind., Patrick Industries, will open a new plant in La Porte, Ind., creating about 30 new jobs during the next four years. The 60,000 square-foot-facility in the Thomas Rose Industrial Park will help support its supply and distribution to several industries, including marine, RV, and manufactured housing.

Yale Advisor’s Realty Division Closes 1300 Spaces Across the Nation

In little more than two months Yale’s real estate division has closed on the sale of nine communities with about 1,300 hundred spaces from the Florida and Georgia, to Missouri and Oregon, with transaction sizes ranging from $2.5 to $61 million. “The geographical and asset diversity of these recent closings emphasizes Yale’s reach and national teams’ position in the market,” Yale founder James Cook said.

Maverick Commercial Mortgage Finances Parks in Texas, Washington

Leisure Living Manufactured Housing Community in Fort Worth, Texas, has received a $6.15 million loan through Maverick Commercial Mortgage. Benjamin L. Kadish, president of Maverick, said the 10-year, non-recourse loan has a fixed interest rate, and amortizes over a 30 year schedule. Proceeds from the loan were used to pay off the first mortgage lender, paid for closing costs and returned equity. Leisure Living has 124 homesites, off-street parking, a clubhouse with gathering room, dining area, and kitchen, as well as on-site management, boat / RV storage, and a swimming pool. The second park, in Sequim, Wash., received a $9.8 million loan originated by Maverick that covers about 70% of the development of Lavender Meadows, a new 55+ community with 217 homesites. The initial phase of home installation in planned for fall 2021.

Chicago Portfolio Owners Refinances in Four States

Hometown America refinanced a portfolio of properties consisting of five communities and 1,731 homesites in Massachusetts, New Jersey, Illinois and Florida. PGIM Real Estate provided $178 million in fixed-rate debt for the refinancing of the properties that are 99% occupied, and include amenities such as pools, fitness centers, putting greens, clubhouses, bocce ball courts, and dog parks.

New Hampshire Community Sells for $4.26 Million

Great Brook Village, a manufactured home community near Tillton, N.H., sold for $4.26 million, a 6.61% cap rate. Will Peck, Dennis Kelleher, John Pentore of Horvath & Tremblay arranged the sale, representing the seller and procuring the buyer. The community has 65 homesites, all occupied by homeowners, on lots for two- and three-bedroom homes. Each home has oil-fired baseboard heat. The property is attached to city  water and sewer billed directly to homeowners and is near outdoor recreation and big box shopping.

Elevation Capital Buys First Community of Fund 8

Orlando-based real estate investment company Elevation Capital Group has completed the first acquisition with its eighth round of funding. The initial offering amount for Fund 8 was set at $50 million and already has received commitments in excess of $28 million. The  purchase is a manufactured housing community in the Washington, D.C. metropolitan area, and May marked the beginning of monthly distributions for investors in the fund, estimated at 5% monthly. Elevation, through its affiliates, has acquired properties worth more than $600 million and has owned more than 200 assets in more than 30 states.

“The team at Elevation is especially excited to add to our existing footprint in the D.C. metro area,” Ryan Smith, at Elevation Capital Group, said. “We were awarded the deal even though we were not the highest bidder, due to our track record of high-quality management of manufactured housing communities.”

Personnel

Aden

Cavco Industries Names New Executive

Allison K. Aden in late August started in her new role as executive vice president and chief financial officer for Cavco Industries. She oversees accounting, tax, treasury, information technology, and finance-related operations. Additionally, Aden will serve as a member of the executive leadership team and will report to Cavco President and CEO Bill Boor. Previously, Aden served as executive vice president and CFO of Diversified Technologies, an industry-leading technology solutions provider.

Park Lane Promotes Luke Foster to Vice President

Foster

Park Lane Finance Solutions, a regional home-only lender has promoted Luke Foster to vice president. Foster has been an industry champion nearly his entire life, from growing up in the family business, Foster’s Housing, a former North Carolina-based retail chain, to giving time on boards and committees. 

“Luke has been an integral part of the success at Park Lane over the last five years,” Park Lane President Rick Cason said. “With his years of experience in the manufactured housing industry, serving in the finance, community, and retail sides of the business, he has developed a unique skill set that enabled Park Lane further its financing programs aimed at helping community retailers fill vacant lots, sell rental inventory, and create affordable home ownership opportunities for individuals and families in communities.”

FHFA Names Acting Director

Sandra L. Thompson has been named the acting director of the Federal Housing Finance Agency. She served as deputy director of the Division of Housing Mission and Goals overseeing housing and regulatory policy, capital policy, financial analysis, fair lending, and mission activities for Fannie Mae, Freddie Mac, and the federal home loan banks.

FHA Nominee Awaits Confirmation

FHA nominee Julia Gordon continues through confirmation hearings that will determine if she is to oversee the federal manufactured housing program. Gordon is the current president of the National Community Stabilization Trust, a nonprofit organization that promotes neighborhood revitalization and housing affordability. Previously she served as the housing director at the Center for American Progress and managed, the single-family policy team at the FHFA.

Chief Industries General Manager Retires

Dan Fitzgerald, a general manager for Bonnavilla, a division of Chief Industries, retired in August after exactly 50 years in the manufactured housing business. He started in the industry on Friday, Aug. 13, 1971 and retired on the same day and week of the month in 2021.

“I have had the opportunity to work with some great employees and customers during my career, but none better than the employees and customers at Bonnavilla and Chief Industries,” he said. Fitzgeral said he plans to remain in Nebraska, travel with his family, and work on his golf game.

Industry News

Tennessee Lender Launches Hispanic Home Loan Program

First Community Mortgage of Johnson City, Tenn., has launched HOLACASA, a home opportunity loan program breaking down barriers to homeownership for Hispanic homebuyers and homeowners. The program is open to foreign nationals and non-resident immigrant status with ITIN/W7 U.S. tax return filings; applicants must have filed taxes in the U.S. for the previous year. The loans may be used for primary residence, second home and investment properties, and are also available for non-warrantable condos, manufactured homes, 1–4-unit properties, townhomes/PUDs and vacant land. Loans up to $6 million. The HOLACASA website includes other facts, opportunities and guidelines.

“This is the branding and consolidation of the many initiatives we offer for the Hispanic and Latin communities,”  FCM Executive Vice President of Multicultural Business Development and Chief Diversity Officer Miguel Vega said. “We wanted to wrap everything we’ve been doing under an official name as we continue to refine and expand the initiative.”

In Memoriam

Wisconsin Community Owner Laid to Rest

Thomas Webb of Lake Delton, Wisc., passed away at the age of 75. Born in Baldwin, Wisc., Mr. Webb grew up on a farm and graduated from UW-River Falls with a degree in agricultural business. He had a passion for business and commitment to hard work, he loved the challenge of seeing his endeavors. When his day job on the farm or at the credit union was complete, he gave assistance to help maintain the mobile home park where he lived. He took the opportunity to buy the modest property and acquired adjacent parcels to establish Red’s Mobile Home Park, in Lake Delton. He, his wife Gail, and their twin sons Jeff and John started Deer Run Mobile Home Estates as well.

SECO21 Announces Speaker Lineup, Schedule of Events for Manufactured Housing Community Owners

By
Sean Vichinsky
-
A presenter at SECO19 standing in front of a panel of speakers
A speaker at SECO19 takes the stage

The SECO National Conference of Community Owners has announced its programming schedule and lineup of speakers for SECO21, bringing the nation’s top manufactured housing experts together for a week of live online programming with over 50 sessions planned.

Now in its 11th year, SECO is a landmark conference “for community owners, by community owners,” providing opportunities to learn, interact, network and shop the latest manufactured housing offerings. The national event represents all parts of the manufactured housing industry, with an emphasis on small to midsize community owners. 

“SECO has always prided itself on bringing the best of the best in manufactured housing community ownership to share what’s been working in their communities, and how others can implement those strategies,” SECO co-founder and organizer Spencer Roane said. “The event will feature over 60 educational sessions, over 100 speakers, over 35 sponsors and exhibitors, and hundreds of small to midsize community owners from across the country.” 

SECO21 Schedule Offers Five Days of Unrivaled Community Owner Programming 

SECO21 will offer five days of interactive programming for community owners and managers, including its Manager Monday workshop sessions geared exclusively for managers. 

At SECO21, attendees can attend sessions such as: 

  • Marketing Your Community on a Shoestring – The Most Effective Ways to Market Your Property with Limited or No Budget!
  • The Angry Resident – Working with Difficult People
  • Manufacturer Insights Panel
  • Managing Social Media
  • Considerations When Buying Distressed Parks
  • Acquisition Financing: What You Need to Know and Gather Up Before You Contact a Lender
  • Ask the Attorneys
  • Panel Discussion: Newcomers “Lessons Learned”
  • Due Diligence Land Mines
  • Best Practices for Website Optimization
  • The Rental Home Model
  • One-Minute Moneymakers
  • F.I.R.E.: Financial Independence, Retire Early! Swapping Salary for Spaces
  • Is an RV Park in Your Future?
  • Biden Tax Ramifications
  • Lease-Option MH “Financing”
  • And much, much more! 

“Our returning attendees come back each and every year because of what they learn at SECO’s wide variety of events,” David Roden, another SECO planning committee member, said. “SECO21 has perhaps the most diverse event lineup in the conference’s history, and we can’t wait for everyone to come to this year’s event and learn from the best in the industry.”

In its second year as an online event, SECO’s new virtual event platform ensures that the event can host more sessions than ever, along with accommodating a record number of attendees. 

“Shifting to virtual has only helped SECO in the long run,” SECO planning committee member Tom Lackey said. “We reached more attendees than ever at SECO20, our first virtual event, and we’re hopeful to keep that momentum going this year.”

Manufactured Housing All-Stars to Take the Mic at SECO21

SECO is proud to welcome the industry’s leading voices to share their insights and successes as community owners and managers, including: 

  • George Allen, CPM Emeritus, MHM-Master, EducateMHC.com
  • Ed Barber, Principal, Iron Horse Interest Team
  • Mark Bowersox, President, Manufactured Housing Institute
  • Ken Corbin, President, CallKenCorbin.com
  • Kurt Kelley, President, Mobile Insurance
  • Darren Krolewski. Co-President, Chief Business Development Officer, MHVillage/Datacomp 
  • Ryan Narus, Principal, Archimedes Group
  • Chris Nicely, President, ManufacturedHomes.com
  • Frank Rolfe, Co-Owner, Mobile Home University
  • Ekaterina Stepanova, Principal, M2K Partners
  • Don Westphal, Owner, Donald C. Westphal Associates

The full list of speakers and schedule of SECO21 sessions can be viewed here.

“SECO grew so much over the years that in 2020, our first year going virtual, we actually sold out of tickets,” Roane said. “That’s why we push for everybody to register as soon as they can, so they don’t miss out on all of the networking opportunities that SECO provides.”

SECO21 tickets are sold in four different tiers: Manager Monday tickets, which offers access to all Manager Monday workshop sessions, General Admission tickets for Tuesday – Friday sessions, VIP tickets which offer Tuesday – Friday session access and recordings of the main event, and All-Access tickets which grant full access to Manager Monday sessions, main event sessions, and full event recordings. 

This year’s conference is once again a partnership with MHVillage, the leading marketplace for manufactured and mobile homes for sale.

In addition to attending, individuals and organizations in the manufactured housing industry can benefit from unique exhibitor and sponsorship opportunities with SECO21.

For more information on SECO21 or to register online, visit secoconference.com. SECO21 is an industry conference for manufactured housing professionals and is not open to the general public. 

About SECO National Conference of Community Owners

The SECO National Conference of Community Owners was founded 11 years ago by a small group of committed manufactured housing professionals and has been held each year near Atlanta. The gathering is dedicated to building an industry environment and culture that looks to share best practices and help form new ideas. SECO, a tax-exempt 501(c)(3) organization, was created for community owners, by community owners. All proceeds go toward planning and programming for the next year’s national gathering. Any excess revenue supports the Veterans Assistance Fund founded by SECO organizers in 2018 in support of veterans and first responders across the U.S.

Real Estate Professor Provides Pep Talk to MH Professionals in Texas

By
Patrick Revere
-
john s baen professor tmha talk

The Texas Manufactured Housing Association met this week in Frisco, Texas, near Dallas, with a full day of programming for manufactured housing professionals on Monday. The luncheon speaker, Dr. John. S. Baen, a real estate professor at North Texas University, provided a spirited pep talk on the quality and value of manufactured housing.

“I believe in what you’re doing. This is the future. You’re looking at it,” he said.

Baen said city officials have very limited knowledge about manufactured housing and that it’s the industry’s job to educate them.

The professor also acknowledged the presence and pain of material costs and supply shortages, as well as the labor pains many industries are feeling.

“I don’t know when it’s going to get better, but it has to… we need to build better product and better advertising to promote our homes.”

Baen used a series of informational and often comical slides to impress upon the TMHA attendees that Texas stands to gain mightily if it can provide enough housing for all of the people drawn to the state.

“Let’s keep this in perspective,” he said. “A lot of people are escaping here.

“Millions of people have come across the Rio Grande. They could have chosen New Mexico, Arizona, California… but they know where Texas is,” he said.

He said while the birth and death rates balance each other out, the only way to increase population is through immigration and migration. Californians, in particular, are moving to Texas, and it’s not just individuals and families. Texas is drawing big business that will provide jobs, jobs for workers who will need housing.

“More people is more housing for you and me… Remember, you own the competition on price. Our houses are a 17th the cost of theirs,” Baen said of manufactured homes.

1...333435...90Page 34 of 90

EVENTS

president rvmh hof darryl searer retires

Searer Retires from the Hall

The RV Veteran Raised Elkhart Institution from Ashes More than 20 years ago the RV/MH Hall of Fame in Elkhart was drowning in debt, in...
MHI Lesli Gooch CEO congress and expo 2025 orlando

MHI Draws Industry to Orlando

The manufactured housing industry’s premier event, the MHI Congress & Expo, returns to Orlando, Florida, from May 5 – 7, 2025, with more features...

Hall Awaits 2025 Class

In August, the RV/MH Hall of Fame will celebrate the 2025 class of inductees, five from each industry. “Our selection committees held meetings to review...
Load more

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

Copyright ©2017-2024 MHVillage.com. All Rights Reserved.