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Immediacy & Frequency: Why They Matter to Manufactured Home Sales

ELS Mara Lago Cay Fla manufactured home sales

Increase Home Sales with Intake System, Outreach Strategy

Numerous studies have been done, all pointing to the necessity of responding to a new lead within minutes of receiving it and attempting a minimum of six more times over the next 48 hours if you want to maximize the results you get from your marketing efforts.

We are currently in a seller’s market reminiscent of the post-crash era just about 15 years ago. Everyone is busy, lots of orders are being written, factories have long backlogs, and there is a fully justified feeling of overall optimism.

manufactured home sales community
Photos courtesy of ELS Properties.

Volume hides a multitude of sins and these times are no different.

In the best of times, we prepare for the worst of times. In times as these, we solidify our internal systems and processes, minimize slippage, and maximize the bottom line.

For retailers experiencing an increase in home sales and abundant opportunity, as is the case in the southeastern U.S., Florida, Texas, and other states, their systems may deteriorate, sales efficiency drops, all under the cover of ever-increasing home sales.

One reason is the lack of lead management efforts. Salespeople simply do not understand the impact technology has had on the way people shop, the way people buy and, consequently, the way we have to sell.

How Technology Has Affected Manufactured Home Sales

The internet has given customers access to more information than they can possibly sort. All one has to do is Google any random query and thousands of pages appear within seconds.

Between mobile phones, web browsers, and e-mail, we can instantly connect to anyone anywhere, and at any time.

Here’s the catch. With instant access comes the expectation of immediate response. We want the information we ask for NOW… not later today, not tomorrow, not next week.

Immediacy & Frequency in Manufactured Home Sales

The two terms I mentioned in the title have an impact of biblical proportions on your organization’s ability to increase home sales. Immediacy is the speed at which you respond to a lead, measured in minutes, not hours or days.

Frequency is the number of times you reach out to a lead after having received it. Whether you reach out by telephone, text, or e-mail is determined by the information they provide in your lead intake system.

Here is why most retailers will never maximize internet marketing. Both immediacy and frequency must be measured and managed. Even well-meaning sales professionals slip into apathy with regards to lead follow-up and management, and before you know it, potential buyers rarely hear from your organization. Even if they do, they will hear from them once after a few days, and very likely after talking with one or more of your competitors.

Many retailers live under the assumption that their salespeople follow-up quite well, and therein lies the beginning of the illusion.

Test your hypothesis. Have a friend contact your company via your intake system and see what happens.

If you think it’s an anomaly, do it a second, third, fourth and fifth time. Soon you will have some meaningful statistics.

Here is what most business owners and salespeople fail to realize. Even the most technologically challenged individuals will browse their desktop, tablet, or smartphone looking for information on what they want to buy. They see the places they can go, which as I stated earlier are way too many, and so begin the process of reducing this list to a more manageable number.

They eliminate retailers by distance, floorplans, lack of information on the website, and many other reasons. The websites that do pique their curiosity, they will either call, chat, or e-mail with a representative for further information. You can only guess what happens to those retailers whom they never hear from, or if they do, only once.

Put Yourself in the Place of the Home Buyer

Here’s the bottom line. We’re living in a radically different world compared to when many of us came to the industry. People today think differently, shop differently, and they buy differently.

If you’re successful today, but you’re not 100% sure as to why, then you can’t replicate that success, and you’re not preparing for the downturn.

Take this opportunity you have right now, as you have plenty of sales and decent profits, to prepare for the downturn we hope doesn’t come . Regardless, you will benefit.

Learn to maximize your internet leads and start by implementing procedures for following up with those leads. You have to keep your manufactured home sales leads fresh. Measure immediacy and frequency and hold your team accountable to meet predetermined standards.

Always remember… The hardest business to measure is the business you lose.

Would-be customers don’t call to let us know how your team dropped the ball. They just disappear, never to be heard from again. Don’t let that happen.


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Pew Research Supports Incentives for Manufactured Home Loans

pew research manufactured home loans
Nick Bourke, Director of Consumer Finance at the Pew Charitable Trusts.

Recent research and observations published by the Pew Charitable Trusts support expanded incentives for manufactured home loans within the Community Reinvestment Act.

The article published May 12, 2021, by Pew Charitable Trusts Consumer Finance Director Nick Bourke and Rachel Siegel, a research officer for Pew’s consumer finance and home financing projects, asserts that lack of access to manufactured homes disproportionately affects populations and communities already most at risk.

The authors cite Consumer Financial Protection Bureau research that found that “people living in such residences are more likely to have low incomes, assets, and net wealth than those in traditional site-built homes. Interestingly, they also have lower debt-to-asset ratios, which may be due to more conservative borrowing behavior or less access to credit for these households.”

Access to Manufactured Homes, Manufactured Home Loans

There continues to be a relatively small pool of lenders for manufactured home loans, especially chattel or personal property loans, the Pew research shows. The difficulty for consumers is “a general shortage of small mortgages nationwide—even for qualified buyers” and the fact that personal property loans from those who do offer them come at “higher interest rates, which undermines affordability.”

Pew research suggests that the affordability and availability of manufactured home loans could be improved through a re-envisioning and revised Community Reinvestment Act, which initially was approved in 1977 and has been reconsidered in recent years without mention of bolstered manufactured housing language.

The research and observations from Pew suggest three primary ways the CRA can effectively expand manufactured home lending:

1. Include safe and affordable manufactured housing personal property loans on the list of CRA-eligible activities so that banks have certainty about credit for these loans.
2. Allow banks to get CRA credit for the purchase of qualified personal property loans from originators, which would allow more loans to be made.
3. Encourage qualified personal property loans by giving CRA credit based on the number, rather than dollar amount, of loans in this space. Doing so could incentivize lenders to provide more loans rather than merely larger ones and is especially important because these homes are often low-cost.

“Pew is researching the issues around lending for manufactured housing to identify hurdles or harms associated with various financing arrangements,” the authors stated. “The ultimate goal is to find opportunities to expand the availability of safe and affordable loans.”

Added Research Shows Disparity in Cost of Personal Property Loans

Pew Charitable Trusts on May 27 also published results of research on manufactured home loans, specifically personal property or chattel loans. The research demonstrates that creditworthiness of chattel borrowers is on par with consumers of conventional mortgages.

Pew’s report published on the Consumer Financial Protection Bureau’s website also demonstrates that Black, Hispanic, and Indigenous borrowers are more likely to use personal property loans than others. The impact is that these families pay more and are at higher risk of losing their home in the event of default.

Homeownership plays a large role in family economic stability and manufactured homes are the largest source of unsubsidized affordable housing – making them especially important for low- and moderate-income families,” Tara Roche, research manager for The Pew Charitable Trusts’ home financing project. “However, the market’s potential is undermined by challenges to obtaining small mortgages, the lack of strong consumer protections combined with higher interest rates for personal property loans, and omission from laws intended to protect homeowners from foreclosure and eviction during times of crisis.” 

 

Federal Court Vacates CDC Eviction Moratorium

cdc eviction moratorium

Stay Grants Time for HHS Appeal; State Orders Remain

The U.S. District Court in Washington, D.C., has vacated the eviction moratorium by the CDC, ruling the center overstepped its authority, perhaps statutorily and constitutionally.

The case was filed Nov. 20, 2020 against the U. S. Department of Health and Human Services by the Alabama Association of Realtors. The realtors association filed suit against HHS, which oversees the CDC, when the center initiated a broad 120-day eviction moratorium following the expiration of a similar moratorium for properties backed by government loans. Congress extended the former moratorium once, and the CDC eviction moratorium has been extended three times, now set to expire June 30.

U.S. Department of Justice the day following the ruling was granted a stay to submit an appeal.

“It is also important to note that this ruling only applies to the federal eviction moratorium and not state or local moratoriums which remain unchanged,” the Manufactured Housing Institute stated in a release to its membership following the ruling. “This ruling by the U.S. District Court for the District of Columbia follows similar actions by other District Courts across the country that have found the CDC federal eviction moratorium unconstitutional.”

McGlinchey Stafford attorney Jeffrey Barringer said it is unsurprising the court found the CDC eviction moratorium unconstitutional. 

“There are now at least a half-dozen similar cases, with the majority finding the CDC exceeded its authority,” Barringer said.  “While landlords and creditors may revel in another win, several jurisdictions still have state-level moratoriums.

“This opinion might ultimately prove persuasive, especially if the Court of Appeals for the D.C. Circuit weighs in, but from a practical standpoint, it doesn’t change state law. It also doesn’t affect voluntary moratoriums, such as the FHFA’s REO eviction moratorium, which has been extended through the end of June,” he said. “Regardless, it is one less obstacle for landlords and creditors — especially in those states that have allowed their moratoriums to expire or that provide an exception, such as a voluntary surrender agreement.”


This breaking news and will be updated in the moments, hours, and days to come. Bookmark MHInsider for all of your manufactured housing industry news, and update this page for the latest on the CDC eviction moratorium and the U.S. District Court for Columbia’s ruling.

Get Updated Florida JLT Market Reports for Manufactured Home Community Rent, Occupancy

Florida JLT Market Reports

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

The state of Florida is the largest market area for manufactured homes in the United States.

Datacomp publishes 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.

May 2021 manufactured housing market data published in JLT Market Reports for Florida includes information on 788 “All ages” and “55+” manufactured home communities.

Altogether, the reports on Florida manufactured home communities include data representations for 209,354 homesites.

Florida Statewide Trends in Manufactured Housing Community Rent and Occupancy

  • Florida all-ages communities experienced a 1.1% increase in occupancy and a 4.1% increase in rent.
  • Florida 55+ communities experienced a 0.2% increase in occupancy and a 4.2% increase in rent.

“The May 2021 JLT Market Reports for Florida include information from 27 communities that hadn’t previously reported for our publications, which shows encouraging growth toward professionally managed, investment-grade communities in the nation’s largest market for manufactured homes and manufactured home communities,” Datacomp Co-President and Chief Business Development Officer Darren Krolewski said. “Land-lease occupancy increased in all but five of the 29 Florida manufactured housing markets detailed in Datacomp’s May publication. This, along with healthy rent appreciation in each of the state’s 29 markets reflects the growing demand for quality affordable housing.”

More About 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
  • Community amenities
  • Vacant lots
  • Repossessed and inventory homes, and much more

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

The May 2021 JLT Market Reports for Florida 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.

RHP Properties Purchases 29 Manufactured Home Communities In Three States For $184 Million

Alpine Park RHP 29 manufactured home communities

The nation’s largest private owner and operator of manufactured home communities has acquired 29 manufactured home communities in Illinois, Indiana, and Michigan with more than 4,200 homesites for a purchase price of $184 million.

RHP Properties CEO Ross Partrich said the transaction brings the company’s total of manufactured home communities to 297 nationwide. The communities provide 71,184 homesites.

“RHP Properties is pleased to announce the purchase of the Heritage Portfolio. We are proud to be preserving affordable housing for more than 4,000 families,” Partrich said. “We also plan to improve these communities, including the addition of brand new homes.”

The planned improvements include new or enhanced amenities, playgrounds, and roads. The company also plans to bring in new homes at affordable prices, where residents can enjoy the privacy of a single-family home and all the energy-efficient features and design of today’s new manufactured homes.

“We will be making necessary upgrades to ensure these communities are brought up to the RHP Standard,” Partrich said. “We look forward to becoming active members of these communities and providing our more than 30 years of stable management and ownership experience to our residents.”


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Evolution of Manufactured Housing Retail

MHInsider magazine in its March/April 2021 Retail Edition composed a graphic timeline of manufactured housing retail. Each image notes eras and transitions in the evolution of MH retail, and includes the shipment levels in the manufactured housing industry for the associated years.

Evolution of Manufactured Housing Retail from 1959 through 1970

evolution of manufactured housing retail 1959-1970

Evolution of Manufactured Housing Retail from 1974-1988

evolution of manufactured housing retail 1974-1988

Evolution of Manufactured Housing Retail from 1992-2002

evolution of manufactured housing retail 1992-2002

Evolution of Manufactured Housing Retail from 2006-2019

evolution of manufactured housing retail 2006-2019

Bookmark the MHInsider homepage and check back regularly for manufactured housing news!

You Never Get a Second Chance to Make a First Impression

Why Your Online Reputation is Becoming the Only Reputation That Matters

reputation management online darren krolewski
MHVillage Co-President and CBDO Darren Krolewski

No one is exactly sure who first shared the cautionary phrase, “you never get a second chance to make a first impression,” but truer words were never spoken. Whether you attribute it to Oscar Wilde, Will Rogers or Head & Shoulders, one thing is certain: the impression you make online is more important to your business than ever.

In today’s digital-centric marketplace, nothing shapes first impressions quite like online reviews.

According to research by messaging platform Podium, 93% of consumers say that online reviews have an impact on their purchase decisions. It’s easy to understand why. Reviews are everywhere, from Google to Facebook to industry-specific websites and consumer forums like Ripoff Report and Reddit. Online reviews have gradually evolved to become a trust signal. A survey by marketing software provider BrightLocal found that eight out of ten consumers now place as much confidence in online reviews as they do personal recommendations.

Not only can online reviews make or break whether someone ultimately does business with you, they also determine whether a prospect reaches out to you in the first place. A recent study by Cone Communications found that four out of five consumers have changed their mind about doing business with a company or product after reading negative reviews online.

Even if you maintain a relatively low profile online and believe your business relies primarily on word of mouth, you’re not immune from the influence of online reviews. The Better Business Bureau points out that having a limited online reputation can be just as damaging as a bad one. Their research has shown that consumers will often question a businesses’ credibility if they can’t find out enough about it online.

Over the past year, the realities of doing business during a pandemic have placed even more emphasis on the importance of a positive digital footprint. Multiple studies have demonstrated that an overwhelming majority of homebuyers begin their home search online, and continue to turn to their internet throughout the home shopping process. This behavior has only accelerated over the past year, with virtual showings, video conferences and electronic correspondence all taking a greater role in an industry that has traditionally relied on in-person contact with the consumer.

Managing your online reputation is a critical part of the overall image and reputation you demonstrate to your customers. Accordingly, it deserves as much attention as any other aspect of your marketing presentation

So where to begin?

Before you can begin to manage anything, you need to have a complete picture of your online reputation as it currently stands.

Six Step Process to Improve Online Reputation Managment

1. Run a Google Search

Most consumers are going to start by typing the name of your business into a search engine. It’s good practice to begin by doing the same. Open an incognito window in your web browser and conduct a search on your company name, principals and community to see what comes up where. As Google tends to serve up different results based on whether or not you are logged in as well as your location, incognito mode helps to remove any unintended prejudice of the search results.

2. Check the Major Social Media Sites

Search your company name, property names and brand names on the most widely used social media channels of Facebook, Instagram, YouTube and Twitter. Most social media sites encourage reviews and discussions which not only show up on their platforms but also appear in organic search results on the popular search engines.

3. Claim Your Online Business Listings

Make sure you’ve submitted or claimed your business on the major directories like Google My Business, Yelp, MHVillage, MHBuyersGuide and other relevant sites. Business listings and reviews often appear ahead of organic results when searching online, particularly when browsing from a mobile device. Many directory websites host online reviews which can frequently go unanswered by companies that have not claimed their listings.

4. Search Complaint Sites

Consumer experience and advocacy websites such as Ripoff Report, Complaints Board and Trustpilot rank highly in search engine results due to scores of consumer-generated content. As a result, it’s good practice to search your organization or property names for any negative comments. Advertising agency GoFish Digital maintains a handy tool that searches over 40 complaint sites at http://gofishdigital.com/complaint-search so you can identify any issues that require attention.

5. Scan Your Existing Reviews

Better than doing all the work manually, get a free summary of your online reputation score from MH.Reviews, the online reputation management platform developed by MHVillage. Type in the name of your business or community and get an instant report on how your company appears in dozens of popular review sites and directories.

6. Don’t Forget About Your Reputation as an Employer 

Employment sites such as Indeed and Glassdoor are often overlooked when managing online reputation. Current and past employees as well as interview candidates can leave reviews about their experience with your company. These tend to rank highly in online search results and are not always picked up by review monitoring tools.

Once you have developed an understanding of your current online reputation, you can begin the process of analyzing the results and identifying a plan for response and ongoing management. There will be some issues that require immediate attention and other lower priority items that will be difficult, if not impossible, to address. As the old adage goes, Rome wasn’t built in a day. Building a positive online reputation will take time and attention to see results.

Fortunately, there are many tools you can use to monitor your reputation, encourage positive reviews, and easily respond to any negative reviews you may receive. We’ll cover more online reputation strategies and tactics on MHInsider in the months to come.  

In the meantime, continue to treat everyone how you would like to be treated and focus on making those first impressions count.

The Southeast: Land of Learning & Memorable Personalities

southeast homes Florida Allen Legacy
Palm Valley in Oviedo, Fla.

As a freelance consultant I often worked in Florida and throughout the Southeast. I “mystery shopped” land-lease communities for portfolio owners/operators, assessed hurricane damage to properties and infrastructure, and taught the basics of home sales, site leasing, and resident relations. I also networked with clients and manufactured housing trade association executives and staff.

George Allen
George Allen

Persons and personalities met along the way

Mystery shopping is commonplace for conventional apartment communities nationwide, not so much for and-lease communities.

Why?

Despite the high value of their income-producing properties, property owners/operators are reluctant to spend the money to gauge on-the-job performance of on-site staff, curb appeal, and resident relations. The usual mystery shopping assignment included an unscheduled telephone “visit” to the property to discern how the phone is answered, the smile in one’s voice, and efforts to close, such as an invite caller to visit the property.

I would do a drive-through inspection of the community, photographing marketing shortfalls such as lack of signage, as well as the nature and volume of rules violations, and conduct an on-site anonymous visit and evaluation of sales/leasing efforts by staff in the information center. All of this was reported in written form to the property owner/operator, sometimes followed by an onsite re-training session.

One of my most unusual consulting assignments – ever, involved flying into Miami the day after Hurricane Andrew devastated southern Florida in 1992. My assignment was to assess and photograph damage to my client’s manufactured home communities, and report back to him. My uncle, a decorated WWII veteran, met me at the airport and served as my tour guide. All the way down the interstate, highway signs had been blown away, and exit names were painted on the roadway! In community after community we saw single-section manufactured homes askew, often stacked atop one another, sometimes three deep. Large pine trees, 40-feet tall with two-foot diameter trunks, stripped bare of branches. Bulldozers and large-volume dump trucks already were clearing debris, dumping it onto a huge, growing hill, 40 feet tall by 300 feet long. My client lost all the homes in his properties.

Being an itinerant teacher of manufactured home sales, site leasing, and resident relations often followed mystery shopping visits. These frequently occurred on-site in the hot property’s clubhouse, where several to many property managers from several other communities gathered. We taught the basics of telephone etiquette, to answer on the second ring, SMILE, qualify the caller, and invite them to the property. We also covered the importance of fresh and appropriate signage , like a WELCOME HOME sign at every entrance, and parking spots that are RESERVED FOR FUTURE RESIDENT with easy access to the information center, and the value of good resident relations and how that effort translates into a money-making equation;  Good Resident Relations = More Resident Referrals = Maximum Resident Retention.

Sandalwood Park Venice Fla George Allen Legacy
Sandalwood Park, Venice, Fla.

Beyond the Tactical Efforts, It’s the People You Meet

The networking aspect of freelance travel and work was especially enjoyable.

How so?

The persons and personalities I met and befriended over the decades, though some are retired or deceased now, were intriguing and memorable.

Martin Newby, now retired, was the founder of Newby Management, a 100% fee-management firm. Newby brought resident relations to manufactured home communities nationwide in the early 1990s. Had a chaplain on staff, and was widely known and respected for his “24 Hour Rule”,  which was a mandate to address and correct every resident concern within 24 hours, or to communicate a solution and date in writing.

Florida Communities Team

This tale is well told in “Swan Song: A History of Land Lease Communities & Official Record of MH Shipments”. Here, an aggressive community development and marketing plan was articulated and implemented to quickly fill a dozen communities with an average of 100 rental homesites for Florida seniors. They accomplished this by using conventional highway billboards, attractive entrance and community signage, fresh landscaping every six months, and home sale and site leasing consultants who were thoroughly trained and effectively monitored for progress. We regularly mystery shopped these properties, where the prevailing attitude was “You came here to visit, so you want to buy; you’re not going to leave until you do!” This mantra was so effective, one of our senior “shopper” couples bought a new home from the Florida Communities Team, even though they owned a manufactured home in a nearby community!

The most notable personality, who I never met in person but did some work for his firm, was the late Maurice Wilder, founder of Wilder Management, in Tampa, Fla.

Here are some career highlights of this low profile, high value individual:

— Hailed from Decatur, IL. where he started out as an independent (street) MHRetailer
— Owned ten land-lease communities and RV parks throughout Florida and Texas
— Purchased the Westin Harbour Island Hotel, selling it for $46.5 million in 2014
— Owned eight office towers in Clearwater, Tampa, and Brandon
— Invested in vast reaches of farmland, and was called the king of federal farm subsidies
— Collected classic cars for his auto museum in Branson, Mo.
— Drove a $234,000 Bentley he claimed was faster than his Corvette
— Owned and raised buffalo in North Dakota, as well as ostriches, zebras, and camels in Plant City, Fla.

Maurice died in 2016, but his firm, Wilder Corporation, owns three land-lease communities in the state, and is an active member of the Florida Manufactured Housing Association.

Another longtime land-lease community owner-friend was the late Lawrence Maxwell, founder of CRF Communities, a.k.a. Century Communities, headquartered in Lakeland, Fla., with a portfolio of about a dozen properties. Larry also was the brother of John C. Maxwell, the famous Christian author, public speaker, pastor, and one of 25 authors named to Amazon.com’s 10th Anniversary Hall of Fame, for his business leadership books, each selling more than a million copies. I mention this because, in years past, while visiting Larry at his office, he’d load me down with copies of John’s latest books to read, and I always considered it a bonus to the work I performed for him.

Sunseekers, North Fort Myers, Fla.

The Northwestern Mutual Real Estate, Murex Properties Partnership

Northwestern Mutual, according to the 32nd annual ALLEN REPORT, owns 10 top-quality land-lease communities with 3,929 rental homesites in two states. And these, for the most part, are fee-managed by Murex Properties from their offices in Fort Myers, Fla. Murex, according to the ALLEN REPORT, owns and manages 7,202 rental homesites in 16 communities. The latest trade news from Northwestern has veteran loan originator, everyone’s friend, John Jacobs, confirming his retirement from the in January 2021. Steve Adler, founder and owner of Murex Properties, is a member of the RV/MH Heritage Foundation’s Hall of Fame Class of 2020 – awaiting induction in August 2021, due to coronavirus pandemic-related gathering restrictions.

The most well-known snowbird Floridian, often in Michigan during spring and summer, is military veteran Lou Vela, loan originator with Q10 Lutz Financial. I don’t know anyone in the land-lease community sector who does not know and like Lou. He’s in his mid-80s and, as they say, going strong. Given the pandemic turmoil of year 2020, he turned from originating community mortgages to commercial real estate sales, mostly selling communities and self-storage facilities. This spring he’s transitioned back to lending, but is focused on securing raw land development financing for clients. And there’s this Lou tale worth telling here. During the 1999 Networking Roundtable, when snowed-in at the Colorado Springs Marriott Hotel, Lou phoned Bill Marriott’s office to have our hotel and bartender provide the group with some beer, so we could properly enjoy the baseball World Series games being played that weekend. That is vintage Lou.

HUD Withdraws Trump Administration Proposed Rule on Equal Access to Housing

HUD building in DC

U.S. Department of Housing and Urban Development is withdrawing the previous administration’s proposed rule that would have weakened the Equal Access Rule. The Equal Access Rule ensures that all individuals regardless of sexual orientation or gender identity have equal access to the programs, shelters, other buildings and facilities, benefits, services, and accommodations.

Fudge HUD
HUD Secretary Marcia Fudge.

“Access to safe, stable housing—and shelter—is a basic necessity,” HUD Secretary Marcia L. Fudge said. “Unfortunately, transgender and gender non-conforming people report more instances of housing instability and homelessness than cis-gender people. Today, we are taking a critical step in affirming HUD’s commitment that no person be denied access to housing or other critical services because of their gender identity. HUD is open for business for all.”

The Trump administration refused to fully implement the Equal Access Rule and proposed a rule in 2020 that would have allowed shelter programs and operators to subject transgender individuals to inappropriate and intrusive inquiries, deny them accommodations, and subject them to greater harassment, HUD said.

Action withdrawing the rule will be submitted to the Federal Register within a week.

Added Resources, and Background in Equal Access Protection

Additionally, HUD is releasing technical assistance resources prepared by technical assistance providers to HUD grantees. These resources will support HUD’s Office of Community Planning and Development grantees in implementing the Equal Access Rule.

The 2016 CPD Equal Access Rule requires that HUD grantees funded in whole or in part by any Office of Community Planning and Development (CPD) program ensure equal access to community planning and development programs, shelters, other buildings and facilities, benefits, services, and accommodations. Grantees must ensure shelter access be provided to a person in accordance with that person’s gender identity, and in a manner that affords equal access to the person’s family. The rule further ensures that, when consideration of sex is prohibited or not relevant, individuals will not be discriminated against based on actual or perceived gender identity, and where legitimate consideration of sex or gender is appropriate—for example, for shelters that serve only one sex or otherwise operate in a sex-segregated way—the individual’s own self-identified gender identity will govern.

On July 24, 2020, the previous administration proposed a rule entitled “Making Admission or Placement Determinations Based on Sex in Facilities Under Community Planning and Development Housing Programs”. This proposed rule, if finalized, would have significantly undermined the 2016 CPD Equal Access Rule.

The proposed 2020 Shelter Rule would have allowed for HUD-sanctioned, federally funded discrimination against transgender people, who face disproportionately high rates of homelessness and extreme risk in unsheltered homelessness.

First, the rule would have allowed HUD CPD-funded shelters and other facilities to create policies excluding transgender and gender non-conforming people from being placed in single-sex facilities that aligned with those persons’ gender identities. This would have created insurmountable barriers to shelter access for transgender and gender non-conforming people who already face serious discrimination and difficulty in safely accessing shelters.

Second, the rule would have allowed CPD grant funding recipients, subrecipients, owners, operators, managers, and providers to overrule the gender identity proffered by a person seeking shelter and make their determination about that person’s gender.  It allowed CPD funding recipients to focus solely on a person’s sex assigned at birth and then assess that based on physical factors such as height and the presence of facial hair. This intrusive and humiliating inquiry would be inflicted on the especially vulnerable people experiencing homelessness, many of whom have experienced sexual assault or other trauma.

Equal access to HUD programs that serve people who are homeless or at risk of homelessness is essential in addressing the challenges faced by transgender and gender non-conforming persons. National research has indicated that denials of access to shelters for transgender and gender non-conforming persons based upon gender identity are commonplace. Transgender women reported being excluded from women’s shelters at high rates. In one key study, transgender housing testers called shelters in four states to ask about where they would be housed. Only 30% of the shelters contacted by the testers were prepared to house transgender women with other women, as would have been appropriate.

Transgender and gender non-conforming persons face enormous safety risks in shelters. According to a national survey by the National Center for Transgender Equality, nearly half of all transgender respondents who accessed shelters left those shelters because of the treatment they received there — choosing to live on the streets over the abuse and indignity they experienced in a shelter. This survey further reported that 25% of transgender persons who stayed in shelters were physically assaulted and 22% were sexually assaulted in shelters.


MHInsider, the premier source of manufactured housing news, will continue to update readers on what the new HUD Code final rule means for the industry, and the customers who buy and live in new manufactured homes.

Development of New Manufactured Housing Communities Picks Up

new manufactured housing community development
Mike Callaghan _fee_based_management
Michael Callaghan, Four Leaf Properties

After decades of minimal new development in the manufactured housing community sector the pace is increasing for a variety of reasons, not the least of which is the current stock of aging properties and a need for updated infrastructure and amenities.

New manufactured home communities, built from raw land, have been hampered by zoning difficulties, NIMBY (not in my back yard) pressure, lean access to financing, regulatory burdens, and a general misconception about the value of manufactured housing.

Since 2002, the number of new “ground-up” manufactured housing communities nationwide remains low, something less than 400 nationwide. As a matter of reference, in the 15 years prior there were more than 2,600 such communities built, including 395 in 1986-87 alone.

A New ‘Development’ Business

Michael Callaghan is a managing partner at Four Leaf Properties, an Illinois-based owner and operator of manufactured home communities as well as a professional third-party manager for community owners who desire or require added resources.

Callaghan said he and his team have been working with increased regularity with operators interested in developing new communities, so much so that Four Leaf has formalized a new business unit within the company to manage and pursue that work.

“Cap rate compression and the demand for vacant lots has taken us to a point where we’re now spending almost as much for a vacant lot with 1970s infrastructure as a newly developed lot with new infrastructure,” Callaghan said. “The trick to land sourcing, as an alternative to existing communities, lies in finding a location where the demand for the product is met with an equal amount of municipal support. It’s as if you’re contending with two buyers, the end-user and the municipality. You need to see demand from both sides to make a project viable.”

Callaghan emphasized that community owners have become developers by necessity, driven by the massive shortage of affordable housing. Historically that has been addressed in the manufactured housing industry through the expansion of existing communities. However, that opportunity is gated by limited land for planned expansion and availability of adjacent property that can be acquired and entitled.

Financing for new communities also continues to be a hurdle, but interest rates for commercial real estate loans remain near historic lows. Those rates and the rapidly growing demand for housing, along with housing price escalation, has captured the attention of policymakers and legislators alike.

“Despite the challenges, if you can find the right piece of property, the math works all day long,” Callaghan said. “I don’t think that was the case even five years ago.”

A Strategy Toward New Community Development

Florida, Texas, the Carolinas, Colorado, and Arizona are leaders in recent years among locales for new manufactured housing developments.

Following the sale of Four Leaf’s portfolio in 2018 sale to Yes! Communities, one of the nation’s largest community owners, the company began to aggressively acquire with a development focus in some prime locations.

Four Leaf owns and manages communities in Florida, Indiana, Michigan, and Texas. Callaghan said the new development group currently has about 2,500 sites underway, or in entitlement awaiting development. More than half of those homesites will be available for occupancy home placement and occupancy by the end of the year.

“We learned by executing smaller expansions at several of communities,” Callaghan said. “It was 20 spaces at a time developed a bit informally. Over time, however, we identified the resources and established the processes to take on bigger projects moving forward.”

The development strategy is approached as a joint venture between Four Leaf, the community owner/developer, and local governments. Callaghan said preemptive sales and marketing efforts, thoughtful staging and phasing, a designated construction entrance, and good communication with residents throughout the development cycle are just a few of the keys to success in developing new communities.

One of the largest obstacles in having new communities built during the last 25 years has been the lengthy wait in recovering investment costs

“You don’t have to bite the apple all at once,” Callaghan said. “There is an option for putting in utilities and developing homesites prior to full development of infrastructure and amenities, taking the sting out of the owner and investor wait for return on investment. If you don’t have to incur all your asphalt and concrete costs before the community is filling, you can hold back a lot of your costs. But you have to do it right, and stage it correctly, because you can’t bring in 100 new residents and ask them to live on a construction site for 12 months.”

One of the remaining challenges is getting industry involvement for a new movement, a transition from traditional MH property acquisition to a focus on new developments.

“The MH market has been red hot and no one wants to pour cold water on it, but behind closed doors we’re all recognizing that paying top dollar for obsolescent infrastructure is really dangerous to the health of the business. There has to be a next step in the evolution of the MH industry,” Callaghan said. “We’re at the point where we need to match the modern nature of the home product with modern infrastructure, property design layouts and amenities. Placing six-figure assets on ten-dollar infrastructure is bad, long term, for the industry.

This is the beginning of the end for the first-generation infrastructure, but we’re replacing those old dinosaurs with way better product, better lot configurations, and that translates to a better living experiences for residents,” Callaghan said. “You’ll know we have turned the corner when you see manufactured housing developers coming into a place like metro Detroit where massive housing demand meets a glut of old product and no new supply. All the characteristics for success are in place. That day is coming.”

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