April JLT Reports for mobile home rent comps in Alabama and Georgia are available now for purchase, including immediate download through Datacomp, the national leader in manufactured home and mobile home valuation and community data.
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.
The April 2021manufactured housing market data published in JLT Market Reports for Alabama and Georgia include information from four markets on 68 “All ages” and “55+” manufactured home communities.
Altogether, the reports from Alabama and Georgia manufactured home communities include data representations for 15,810 homesites.
Regional Trends in Manufactured Housing Community Rent, Occupancy
South region manufactured home communities show a year-over-year 4.5% increase in average adjusted rent.
South region manufactured home communities show a year-over-year 0.9% increase in occupancy rate.
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
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 April 2021 rents and occupancy rates to April 2020, as well as a historical recap of rents and occupancy from 1996 to the present date in most markets.
The April 2021 JLT Market Reports for Alabama and Georgia 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 month of April is designated by the U.S. Department of Housing and Urban Development as Fair Housing Month, with the 2021 theme “Fair Housing: More Than Just Words”. HUD Secretary Marcia Fudge said the theme reflects the Biden-Harris Administration’s commitment to advancing equity in housing and the importance of increasing public awareness of everyone’s right to fair housing.
“Fair Housing Month is a time to recommit to our nation’s obligation to ensure that everyone has equal access to safe, affordable housing,” Fudge said.
Fudge said the mission continues to guard against housing discrimination in the form of individuals and families being denied a place to call home because of the color of their skin or where they come from, landlords refusing to allow persons with disabilities to keep assistance animals, individuals being denied a place to live because of who they love.
“In this moment of unprecedented crisis, fair housing is more important than ever,” Fudge said. “Fifty-three years after the Fair Housing Act was signed, our journey to justice in housing continues.”
Each April, HUD, local communities, fair housing advocates, and fair housing organizations across the country commemorate Fair Housing Month by hosting an array of activities that highlight these ever-important and continued efforts.
The month is used to provide a dedicated time in which housing professionals, advocates, and activists can collaborate to enhance the awareness and understanding of fair housing rights and to end housing discrimination.
Secretary Fudge will commemorate Fair Housing Month with a virtual celebration on April 7th at 2 p.m. Eastern time that also will feature the Justice Department’s Principal Deputy Assistant Attorney General Pamela Karlan, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity Jeanine Worden, and HUD Senior Adviser Alanna McCargo.
Last year, HUD and its Fair Housing Assistance Program partner agencies received more than 7,700 complaints alleging discrimination based on one or more of the Fair Housing Act’s seven protected classes: race, color, national origin, religion, sex, family status, and disability. During that period, the categories with the highest number of complaints were disability and race, respectively. HUD also received complaints that alleged lending discrimination as well as numerous complaints from women who faced unfair treatment, including sexual harassment.
“Although the Fair Housing Act became law in 1968, we still have major challenges ahead of us,” said Jeanine Worden, HUD’s acting assistant secretary for fair housing and equal opportunity. “This April, on the 53rd anniversary of the Fair Housing Act, HUD is renewing its commitment to level the playing field so every person has the same opportunity to live where they choose and benefit from all of the opportunities this nation offers.”
Luis Tovar and daughter Jenevieve Raygoza in an undated family photo.
A mass shooting in Orange, Calif., has sent shockwaves through the manufactured housing industry and within the small Southern California city where it occurred on the afternoon of March 31 at Unified Homes. Four people were killed, and two more injured, including the suspect who is hospitalized following a shootout with police.
Survivor Blanca Tamayo
Matthew Farias
Leticia Solice
Unified Homes owner Luis Tovar, his daughter Jenevieve Raygoza, 28, Leticia Solice, 58, who is was a Unified agent, and Matthew Farias, 9, were killed.
Blanca Tamayo, Farias and Raygoza’s mother, survived the attack.
Police said the alleged shooter used a bicycle cable and lock to block the exterior gates to the business prior to entering. Police engaged in a shootout with Aminadab Gaxiola Gonzalez, who was shot.
The officers were uninjured. Gonzalez has been charged with four counts of murder and three counts of attempted murder.
Karla Maria Tovar, Luis Tovar’s wife as well as an agent with Unified Homes, spoke with local media. She explained how she was attempting to shield their 10-year-old son from at least some of the grief from the loss of someone she described as a model husband and father. She also vowed to keep Unified Homes operating.
“Unified Homes is going to go forward,” Karla Maria Tovar told the Daily News. “I don’t know how (I’ll do it), but I will.”
Investigators said Gonzales had either professional or personal relationships with each of the victims. He had been in a relationship with and long-estranged from a broker assistant with Unified Homes, Aleyda Mendoza, who in media reports stated that she had no understanding of what could have motivated the shooting.
“I can’t understand what went through his head to make such a terrifying decision,” Mendoza said in a quote from the Associated Press. “He left behind a sea of pain and grief for so many families who can’t find comfort.”
The Farias family has set up a GoFundMe page to try to abate funeral costs for the the 9-year-old victim, who had been a student at Hoover Elementary School in Santa Ana.
“As members of the manufactured housing industry family, we are all affected by this senseless tragedy,” Newport Pacific Companies Marketing and Regional Manager Maria Horton said. “Our thoughts and prayers go out to the families who lost loved ones in this horrific disaster.”
A UMH Properties community in Ohio. Photo courtesy of UMH Properties.
Investing In Manufactured Housing REITs
The research team at Hoya Capital Real Estate is excited to begin a quarterly column published in partnership with MHInsider to provide insight and commentary on publicly-traded manufactured housing stocks. Every quarter, we’ll publish an update to discuss the stock performance, earnings results, and major news and events reported by manufactured housing real estate investment trusts, or MH REITs.
Overview of MH REITs
Manufactured housing REITs have been the single-best performing REIT sector since the start of 2010. Manufactured housing REITs have emerged over the past decade from relative obscurity into several of the largest publicly-traded owners of real estate in the world.
There are three publicly-traded Manufactured Housing REITs that account for roughly $30 billion in market value: Equity Lifestyle (ELS), Sun Communities (SUI), and UMH Properties (UMH).
Manufactured Housing REITs collectively own roughly 350,000 manufactured housing and RV sites across the United States with a portfolio skewed towards higher-end communities with a more “retiree-oriented” demographic than the all-ages community. Through a series of acquisitions, Equity Lifestyle and Sun Communities have recently expanded into boat marinas as well while the smaller UMH Properties has retained its “pure-play” focus on traditional manufactured housing communities.
From an investment perspective, despite their high growth rates, MH REITs are a traditionally defensive and countercyclical sector due to the “sticky” nature of MH demand and cash flows. As a result, MH REITs are less affected by economic growth expectations, but more affected by changes in long-term interest rates. While these REITs are not known for their high dividend yields, they have delivered some of the strongest rates of dividend growth of any REIT sector.
MH REITs Stock Price Performance
In the real estate sector, three themes dominated the 2010s.
The Housing Shortage
The Retail Apocalypse
The Internet Revolution
No REIT sector has benefited more from the affordable housing shortage than MH REITs, which produced an incredible 22% annual compound total returns from 2010 through 2020.
Manufactured housing REITs outperformed the broad-based Equity REIT Index for a remarkable eighth-straight year in 2020, the longest streak of outperformance for any property sector since the dawn of the “Modern REIT Era” in the early 1990s.
First Quarter 2021 MH REITs Performance
MH REITs have uncharacteristically underperformed in early 2021 even as fundamentals remain as strong as any property sector. Pressured by the post-vaccine ‘REIT Reopening Rotation’ that has sent shares of the hardest-hit pandemic-sensitive REIT sectors soaring, “essential” property sectors – housing, technology, and e-commerce – have lagged this year.
Through the first quarter of 2021, MH REITs are higher by just 1% compared to the 9% gains from the broad-based REIT Index. UMH Properties has been a winner this year, however, with gains of more than 30%.
Quarterly Earnings Report
Limited supply and strong demand have driven stellar fundamental performance for MH REITs over the past decade, as these three companies have reported some of the best growth metrics of any REIT. Fourth-quarter earnings reports showed that same-store Net Operating Income (“NOI”) growth rebounded to end the year higher by roughly 3% following a pandemic-related hiccup in mid-2020. By comparison, the total equity REIT sector saw a -5.1% decline in same-store NOI in full-year 2021, the worst year on record for REITs.
The headwinds observed during the peak of the pandemic in mid-2020 – the shutdown of RV parks and the slowdown in RV and manufactured housing sales – have swiftly become tailwinds amid a broader revival across the U.S. housing industry and other WFH-related industries. The vast majority of manufactured housing residents stayed current on their rents despite rent deferment plans made available by ELS and SUI. Occupancy rates ticked higher by another 95 basis points in Q4 while “core” manufactured housing rents increased by 3.6%.
Growth in funds from operations – the earnings per share “equivalent” for REITs – is driven by the combination of same-store “organic” growth and by external growth through acquisitions and new development. Forward guidance was particularly impressive as ELS and SUI project that NOI will rise by an average of 6.1% in 2021, powering a rise in Funds From Operations (“FFO”) of more than 10% – which would likely be one of the strongest growth rates in the REIT sector.
Growth in funds from operations – the earnings per share “equivalent” for REITs – is driven by the combination of same-store “organic” growth and by external growth through acquisitions and new development.
Forward guidance was particularly impressive as ELS and SUI project that NOI will rise by an average of 6.1% in 2021, powering a rise in Funds From Operations (“FFO”) of more than 10% – which would likely be one of the strongest growth rates in the REIT sector.
Utilizing a strong cost of equity capital, these REITs have continued to grow externally by adding units to existing sites and by growing via acquisitions and site expansions. MH REITs acquired more than $1 billion worth of properties over the last year, largely in one-off acquisitions while disposing of just $10 million in assets. The most significant deal in 2020 was Sun Communities’ $2.1B purchase of Safe Harbor Marinas, which owns and operates 101 institutional-quality boat marinas.
Average MH REIT Growth
MH REITs Net Acquisitions
MH REITs Key Takeaways
Pressured by the ‘REIT Reopening Rotation,’ MH REITs have uncharacteristically underperformed in early 2021 even as fundamentals remain strong. “Work From Anywhere” trends have powered a surge in RV, boat, and second-home sales which have provided an added external growth tailwind while same-store “organic” growth metrics remain impressive. The outlook for 2021 remains favorable with MH REITs providing guidance indicating an acceleration in earnings growth and we expect the “essential” property sectors – housing, technology, and e-commerce – to be a bright-spot again this year.
MH REITs: Terms Defined
FFO (Funds From Operations): The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT’s net income, excluding gains or losses from sales of property and adding back real estate depreciation.
AFFO (Adjusted Funds From Operations): A non-standardized measurement of recurring/normalized FFO after deducting capital improvement funding and adjusting for “straight line” rents.
NOI (Net Operating Income): Typically reported on a “same-store” comparable basis, NOI is a calculation used to analyze the property-level profitability of real estate portfolios. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.
Hoya Capital Disclosures
I am/we are long ELS and SUI. I am not receiving compensation for it. It is not possible to invest directly in an index. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Nothing on this site nor any published commentary by Hoya Capital is intended to be investment, tax, or legal advice or an offer to buy or sell securities. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and should not be considered a complete discussion of all factors and risks. A complete discussion of important disclosures is available on our website www.HoyaCapital.com.
After more than 50 years planning manufactured housing communities, RV resorts, subdivisions and miscellaneous other projects one would think I have seen everything. However, in this unique and difficult time, we have never been busier than ever. Leading the way, manufactured home communities and RV resorts are causing us to work overtime.
Professional Planner Donald Westphal
Why is this?
With manufactured housing, I believe there is no better solution to the affordable housing crisis. Our work in response to this need comes in two areas: Upgrading and expansion of existing communities and planning new greenfield communities. Community upgrades are difficult planning projects since many of the older communities were built for smaller homes and are under older, less restrictive ordinances. Reconfiguring these smaller homesites for larger homes often results in a loss of density and a resulting loss of revenue. However, many of these older communities are well located since when originally built they were on the outskirts and development has grown around them, leaving them in very desirable locations. They also are targeted for what some consider “higher and better uses”, yet, in most cases, zoning for expansion and upgrades is less difficult to achieve.
New Communities Present the Other Option
New Greenfield projects are another story. Zoning for these developments, in my experience, is as difficult as ever even though community officials most often readily admit they have a shortage of modestly priced housing.
With proper preparation and planning, gaining the required zoning can be accomplished.
Our company has outlined the process in presentations at industry events and most recently in an MHI webinar. A successful process begins with great planning. One must understand the ordinance requirements, the approval process, the players, and the planning staff. A great site plan in accordance with the local ordinance and conforming to the particular site features is essential. Listening in the early stages of conversations with staff and officials and incorporating their ideas, where possible, helps to give them ownership in the plan. This can be very advantageous. We must understand that the zoning process is a marketing job, in convincing the decision-makers that the project will be one that they will be proud of for years to come. One will never have an opportunity to market homes to the public if we do not properly market the project in the zoning and site planning process.
RV resort planning likely is of less interest to readers of this publication, though many manufactured home community developers also develop and operate RV parks, including blended properties that offer both homesites and RV hospitality. These projects can face planning and zoning challenges that are similar to what we face in housing. The pandemic has resulted in a tremendous rise in RV use and a significant increase in the demand for our services in this venue.
Fortunately, my firm after 50 years has joined forces with the Nadi Group and is well-positioned to assist clients, new and old. We can and will meet surge in demand with our expanded staff and the ability to provide details beyond the master plan stage of a project. The Nadi group provides these services to clients nationwide.
The National Association of Home Builder and the Building Systems Councils honored Skyline Champion Corporation with a pair of Jerry Rouleau Awards for Excellence in Home Design during a March 4 virtual presentation.
A living room with a skyline view at The Corner. Photos courtesy of Skyline Champion and Larson Realty Group.
The Corner by Champion Modular
Champion’s Liverpool, Pa., home building facility manufactured modular apartments for The Corner, a unique mixed-use development at the site of the former Tiger Stadium in Detroit.
Larson Realty Group received the award for Multi-family Entry of Distinction for the three stories of apartment modules atop a first-floor concrete and steel podium for retail spaces. The Corner consists of 111 living units, predominately studio and one-bedroom apartments, with six two-bedroom units on each end of the building. Three larger units right on the corner of Michigan and Trumbull have views for several blocks of the Detroit city skyline.
The Wellfleet by Champion Modular
The Wellfleet, by Skyline Champion Corporation, a modular home built in Liverpool, Pa.
The Wellfleet model received the highest honor in the under 2,000 square foot new home category. The award-winner is a 1,650-square-foot, three bedroom, two-bath modular home also made by Champion’s Liverpool facility.
The Wellfleet has an open floor plan and a spacious kitchen.
“Skyline Champion is thrilled to receive awards for both single- and multi-family designs,” Skyline Champion Corporation President and CEO Mark Yost said. “We’re extremely proud of the team at our Liverpool, Pa., manufacturing center as well as the designers and engineers that contributed to these projects.”
The annual Jerry Rouleau Awards for Excellence are judged by an independent panel of industry experts. Recipients were recognized for excellence in achievement in a range of categories such as informative and well-designed websites, along with floor plan designs categorized by systems-built type and square footage.
Skyline Champion Corporation shares are traded on the New York Stock Exchange under SKY. It employs more than 7,000 people and has 40 manufacturing facilities in the United States and western Canada. The company possesses nearly 70 years of homebuilding experience, and also operates Titan Factory Direct, with 18 retail locations, as well as Star Fleet Trucking, providing transportation services for manufactured housing and other industries nationwide.
MHInsider is a publication of MHVillage and is the premier source of manufactured housing news with a national audience of manufactured housing professionals dedicated to producing and delivering high quality, affordable, off-site built housing.
This large corner lot in Battle Creek, Mich., gives the homeowner a chance to enjoy the great outdoors in their own, private yard.
What a difference a year makes! When we were getting for Louisville and an exciting 2020, I don’t think any of us predicted that the world would change as much as it has. With 2020 now in our rearview mirror, what do we need to consider with our factory-built homes and communities to stay relevant with the new buyers we are beginning to see?
Factory-built housing has often been considered the housing of the future, and it is looking like the future may be here today. More than ever, the stigmas that have followed communities and factory-built housing are melting away, and consumers are giving us a fresh look with open minds. It’s now up to us to show them why we should be their first choice for a new home and why community living is now more relevant than ever.
‘we need to think like our buyers and remember what is important to them…’
Marketing and retaining new buyers takes a fresh approach. Hanging out a sign doesn’t attract buyers — they are driving as little as possible. And we don’t want people just popping into our sales offices — we need appointments to create a safe selling and leasing experience for all of us.
Reconsider Your Community Services, Activities
How many of you have thought about the type of wifi and internet access that you offer? Every day buyers are “cutting the cord” with their traditional phone and cable companies. Instead, they have a mobile phone as their primary phone and switch to streaming internet-based entertainment like Netflix and YouTubeTV. Perhaps 2021 will be a year where buyers and renters are more concerned about what your internet and mobile access is and are more than willing to pay for it. With many schools offering virtual learning, it can be a strain on an older internet service when three kids are learning on different computers in the same home at the same time.
Rethinking the services that your community offers should start with upgrading the internet that your community offers so you can compete with apartment communities that often offer basic service as part of their rent. One of the bonuses is that if you can get your homeowners to switch from dish-type services to streaming, you can also get rid of all of those unsightly receivers that so many people have on the outside of their homes.
ZOOM and other services like that are here to stay at least for a while. Having ZOOM available for your residents makes it possible to offer activities that they can engage in from the safety of their own homes while socializing with their neighbors. The beauty of these is that you can make events invitation only and know who is participating. Book clubs, cooking enthusiasts, wine tastings, a gardening club… all of these are ways to engage your residents in a new and cost-effective manner. Reach out to local businesses to host a chat to educate your residents or let them know about the services they offer. We are all in this together, and we need to support our local businesses.
New Relationship with ‘Home’
Residents with a green thumb have the opportunity to plant their own gardens. Photos courtesy of Lisa Stewart, Lisa Stewart Photography.
Buyers now look at the homes they want to buy or purchase differently. Since many of us are spending more time at home, the kitchen has a renewed sense of priority. Ample dining space gives us a place to enjoy a meal together or gather to do homework. Consumers are curious about new cooking innovations like air frying, sous vide, and pressure cooking in an InstantPot device. These need countertop spaces to use them and cabinets to store them in. Smart technology is here to stay and has become much more affordable.
Again many of these products use wifi to connect and talk. Have you re-evaluated where you have plugs located in your homes? Do some have USB connections, so it’s easy for you to recharge your devices?
ZOOM rooms are also a feature that will be trending. Since we are the housing of the future, it was interesting that some homes at The Louisville Show in 2018 featured smaller rooms that could be closed off from the rest of the house. Barn doors or other features made these areas that could be closed off. These, to me, are the ideal rooms for someone to work out of their homes, home school, or to participate in ZOOM conferences. Something to keep in mind that will also be trending is soundproofing. There is nothing worse than being on a call and hearing a conversation going on in another room. Carpeting is an excellent sound absorber, and we may want to think about having that in these rooms or using more area rugs and curtains.
Healthy, Safe Communities and Homes
Touchless items are also going to continue to rise in importance. With this virus not going away any time soon, keeping surfaces clean and sanitized will be critical in keeping your community safe. Changing out locks, faucets, light switches, and other areas touched by many people to smart, touch-free solutions will help keep everyone safe and let your community know that you care.
Having a video-enabled doorbell is now a priority, not a luxury. Knowing what is going on around your home and knowing that a delivery driver is at the front door is now affordable. RING also includes an almost neighborhood watch service where you are alerted if anything happens in your area. It is an excellent service, and I am much more comfortable knowing what is going on around me.
We are all craving community and interacting with people more than ever. Our land-lease communities offer that without our residents having to share hallways, elevators and stairs, and other areas that are hard to keep clean and safe. There is nothing like living in a home without connecting walls with someone else and having a yard and garden of your own. Our communities offer what many people want: Community.
There are exciting times ahead of us, but it will take much education, marketing, and good old common sense to keep us ahead of the competition. With things changing so quickly and consumers having almost any information that they want readily available to them, we need to think like our buyers and remember what is important to them.
In January, the U.S. Department of Housing and Urban Development finalized and published the most significant update to the HUD Code in roughly 10 years. Changes were to go into effect Mid-March, but have been delayed 120 days to July 12 given the current challenges operating with continued COVID-related precautions and restrictions in place. HUD said in its Federal Notice on the postponement that it wanted to “provide sufficient time for affected stakeholders and manufacturers to implement the new and amended requirements.”
Following years of research, seeking input from the industry, and negotiating potential changes on Capitol Hill, revisions to the HUD Code change the construction and safety standards for manufactured homes in a dozen sections of the code, from data plates to home ventilation.
Here, MHInsider provides a brief summary of the changes and will point to the public record for further reading and contemplation.
HUD Final Rule Published
The final rule issued by HUD on the construction and safety of manufactured homes was published in the Federal Register and takes into consideration industry recommendations including public comment through March 31, 2020. Changes have been considered by a multitude of industry leaders, including those on the Manufactured Housing Consensus Committee and at the Manufactured Housing Institute. The published final rule is made available with public comments that drove the changes, arranged by section.
HUD Code Sections with New Language
Data Plate – 3280.5
Language changes implemented for the home’s data plate will provide information on whether a structure is able to handle the load of an accessory dwelling unit or another kind of attachment.
Interior Passage – 3280.108
Modifications to this section provide instruction for the use of doors and closures on single-section homes regarding small space areas such as closets and pantries.
Stairways – 3280.114
Changes the requirements for rise and run on interior stairways.
Smoke Alarm Requirements and Carbon Monoxide Detectors – 3280.209 and 3280.211
The smoke alarm section was altered to note the acceptance of dual smoke and carbon monoxide devices, and a commenter’s observation has been brought to the record regarding the distinction between alarms and detectors.
Factory Constructed or Site-Built Attached Garages – 3280.212
The reconsidered section provides clarity for fire protection standards on garages that come from the factory or are attached on-site versus unattached garages.
Factory Constructed or Site-Built Attached Carports – 3280.213
Revisions to the section take into consideration the same fire standards noted in the previous section, but for carports as opposed to garages.
Condensation Control and Installation of Vapor Retarders
The rewritten section clarifies the difference between mating walls and fire separation walls in regard to the use of a vapor sheet. It also states that any wall between adjoining sections of a home must be considered an exterior wall pursuant to subpart K.
Water Distribution Systems – 3280.609
HUD updated exterior water pipe turn down requirements to within six and 24 inches above ground, which public comment showed would be beneficial in reducing the likelihood of injury while continuing to protect against back flow.
Gas Piping System – 3280.705
The phrase “hard pipe” in the section was eliminated to make way for flex and easy-off connectors.
Venting, Ventilation, and Combustion Air – 3280.710
Updates references for the exhaust of fuel burning appliances to be in regard to “habitable room”.
Specific Requirements for Designing the Transportation System – 3280.904
Among the changes, the most impactful is the requirement to check the weight of the home when at a level position poised for transport.
MHI chimed in following the department’s publication to the Federal Register. Sent to members, the statement commends Secretary Carson for his efforts.
“Keeping the manufactured housing construction code up-to-date is critical for ensuring the industry can efficiently produce homes with innovative features and amenities consumers want. We appreciate Secretary Carson’s support throughout his time at HUD and for recognizing the quality, value and affordability that manufactured homes offer,” it stated.
Karl Radde is the general manager of Southern Comfort Homes in Bryan, Texas. He said he read through the HUD Code changes as well as industry comments, and feels the updates help clarify the standards for manufactured housing professionals.
“I read the complete publication this morning and while I am now primarily a pre-owned retailer, I believe the changes made will have a positive impact on the industry,” he said. “Ending the eternal debate on homes built for garage attachments that while not prevalent in my market area, are certainly useful and necessary in other markets, is a huge step. The other changes allowing for combination Smoke/Carbon Monoxide detectors give more clarity to the code.”
Radde said HUD’s comments responses regarding preemption and opportunity zones indicate to him that the department believes in the product we offer as an industry and that “we are truly a viable source for affordable and attainable housing in all parts of the country.”
Cavco Industries President Bill Boor welcomed the changes to the HUD Code.
“Even beyond the changes themselves, getting this done represents the productive approach in recent years. HUD and the manufactured housing industry have a shared commitment to very effective standards for safety and quality in our homes,” Boor said. “Technology, homeowner needs, and evolving markets require changes to those standards. After many years of difficulty making adjustments to the code, this is a big step forward and indicates we’ll be able to do better making timely and smart updates going forward. That’s what’s needed for our industry to best contribute to high quality, affordable housing.
The industry’s largest builder, with a better than 40 percent market share in manufactured housing, is Knoxville, Tenn.-based Clayton Homes.
“We believe the final rule is an excellent first step toward updating the Manufactured Home Construction and Safety Standard, improving manufactured home safety, expanding consumer amenity options, and eliminating obsolete regulations. The result of the proposed rule will allow more families to live in safe, affordable homes with the modern amenities that they desire,” Clayton Home Building Group Vice President of Engineering John Weldy said.
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.
Marcia L. Fudge has been confirmed in as the 18th Secretary for the U.S. Department of Housing and Urban Development.
Fudge took the oath this March 10 after the U.S. Senate voted positively on her confirmation. She now leads a federal department with influence over a half dozen federal agencies and bureaus, as well as management and enforcement over the HUD Code, which defines construction and safety standards for manufactured homes.
Federal housing bodies that Fudge now oversees include:
Federal housing bodies that Fudge now oversees include:
Offices of Housing, Community Planning and Development
The Federal Housing Administration
Public and Indian Housing
Fair Housing and Equal Opportunity
Policy Development and Research
Field Policy and Management
Government National Mortgage Association (Ginnie Mae)
Lead Hazard Control and Healthy Homes
Faith-Based and Neighborhood Partnerships
“The past year has reminded us just how important it is to have a safe and stable place to call home,” Fudge said in her comments following confirmation. “But, right now, for millions of Americans, that sense of security and peace of mind is out of reach.
“Our country has an immense responsibility and profound opportunity to address the housing crisis facing so many people… to provide relief for those struggling to pay their rent or mortgage as a result of the pandemic, to ensure every American experiencing homelessness has a roof over their head, to revitalize our communities—and help more Americans achieve their dream of homeownership, to break down the barriers of injustice that still limit the futures of far too many young people,” she said.
The Manufactured Housing Institute worked with Fudge directly as well as through her former colleagues in Congress, including those representing Ohio, to gauge and test the new secretary’s commitment to manufactured housing. During Senate hearings on Fudge’s appointment, she characterized manufactured housing as an “outstanding option” and said that she is “100% supportive” of looking at incorporating manufactured housing into the Department’s affordable housing strategies.
“MHI is pleased that Rep. Marcia Fudge has been confirmed as Secretary of the U.S. Department of Housing and Urban Development,” MHI CEO Lesli Gooch said. “Throughout her confirmation process, Secretary Fudge has expressed her strong support for manufactured housing and her commitment to incorporating manufactured housing into the department’s affordable housing strategies, just like her predecessor. We look forward to keeping the momentum going as we work with Secretary Fudge to update FHA’s financing programs, finalize the outstanding updates to the HUD Code and create a streamlined process for future revisions, and encourage her to exercise HUD’s preemption authority when local building standards and zoning policies exclude manufactured housing.”
Lisa Rice, president and CEO of National Fair Housing Alliance, said her organization is looking forward to working with Fudge, Congress, and the new administration to continue work on the disparate impact in the housing sector affecting protected groups and furthering fair housing for all Americans.
“Housing segregation remains the primary driver of inequality in the U.S., where neighborhoods of color are less likely to have well-resourced schools, living wage jobs, healthcare facilities, full-service groceries, fitness centers, green spaces, and bank branches, but more likely to have hazardous and toxic facilities, and polluted land, air, and water,” Rice said in a statement upon Fudge’s confirmation. “We are glad that Secretary Fudge and the Biden-Harris Administration understand these structural barriers to housing equity and intend to be partners in implementing fair housing priorities that ensure everyone has access to decent, affordable housing in healthy, vibrant, well-resourced communities free from discrimination.”
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...
