New Tech Adds Efficiency, Savings for Water Utilities
Community owners and managers often ask the question, “Should we submeter our water services to the homes?”There has always been a great financial case to do so, and with new advancements in wireless communications and data analytics, the question has become: “How fast can we get our park submetered?”
A clear benefitto manufactured home community owners is to subdivide the increasingly large utility bill from their local water utility and distribute these costs to the people consuming the water.The return on investment here is generally less than one year, immediately improving the owner’s cash flow and increasing property value.
Pass on greater water costs due to improved accuracy of the meters.
Improve customer service to their residents by automatically alerting them to wasteful water usage, em-powering reduced consumption and cost savings.
Identify leaks in individual homes – notifying homeowners the day the leak is detected, allowing a further reduction in the resident’s individual bill.
Identify large and very costly leaks in the park’s piping infrastructure, that, when fixed can drastically reduce the park’s utility bill and improve the value of the property.
In our experience, it is common for the community’s overall water usage to decrease 25-30% after the installation of submeters. Primary contributors to reduced water consumption are the identification of leaks in homes and in the park’s infrastructure, plus the conservation efforts of the residents and homeowners who are now directly responsible for individual water usage and cost.
Conservation Results from Accountability
The water submetering conservation efforts go beyond the cost savings alone.Let’s start with the normal billing profile of a park immediately following the installation of meters at homes where the typical water use is 2,000 to 4,000 gallons per month, though a small percentage will use as much as 10,000 to 20,000 gallons per month.In general, the homes using much more water respond to their first individual water bill by immediately fixing a leaking faucet. Other good examples of manufactured home water leak fixes are repairing the toilet that’s been left running, or disallowing the open water hose to run down the gutter when a car is being washed.
The main benefit of leak detection, enhanced data, and usage alerts goes to the residents. However,the goodwill community owners get also is very valuable.The newest meter reading systems provide not only the total water used but also measure the actual flow rate at all times during the day.
In looking at the water consumption for a particular home, it is noticed that two gallons of water are used every five minutes from 1to 4 a.m.This is a time that we would expect no water usage, so there is a very probably a leak of about 0.4 gallons per minute.Although it is a minimal flow rate, that continuous leak for 1,440 minutes per day and 30 days per month, uses nearly 20,000 gallons of water per month. Depending on the area of the country, the leak will cost the homeowner $100 to $250 per month. New water metering systems automatically email the park owners of conditions, allowing them to alert the resident or homeowner to stop or repair the leak that day. Otherwise, that homeowner is likely to find out about the leak when they receive a massive bill at the end of the month.
Nearly everyone has heard the sound of a running toilet, then you jiggle the handle, and it is quieted for the time being.The problem reoccurs anytime the toilet is flushed again with an enormous amount of water wasted!
New system analytics recognize the pattern of a flapper leak and notify the park owner via email so the problem can be fixed.
Irrigation Waste and Water Submetering
Another major water waster that faces park owners is irrigation,or more precisely, over-irrigation. Misprogrammed sprinkler controllers have been identified as major water wasters. Water is used at such a high flow rate in sprinkler systems that it takes little time for a major bill to pile up. It can be a substantial amount, increasing the bill from 3,000 gallons per month to more than 20,000gallons per month.
Propane and appliance technicians make residential calls for service to fill tanks and check systems. Photos courtesy of Propane Education & Research Council.
Providing Efficiency and Power Off-the-Grid, On-the-Grid, Everywhere in Between
Factory-built housing has come a long way over the years. But amid all the changes, one thing has remained the same — propane’s ability to provide clean, efficient energy to factory-built homes in a wide variety of applications.
Known for their mobility and affordability, prefabricated — or “factory-built” — homes have a long history in the United States. In the 1950s, on the heels of World War II, this classification of homes really took off and found its footing in the market. Builders quickly realized the benefits of building entire homes, not just prefabricated walls, in facilities and found this to be a profitable and efficient way to meet the housing demands that rose during this time. The portability of the homes and the fuel made propane in manufactured housing the fuel of choice.
Many factory-built homes were created for trailer courts, mobile home parks, and mobile home communities that can oftentimes come with negative stereotypes. Modern manufactured and factory-built homes are now almost identical in appearance to site-built homes. These homes are built to meet tight federal standards for quality, safety, and durability. Today, they’re seen as an affordable, eco-friendly, modern alternative to custom site-built housing and builders are seeing more value in building these types of homes than ever before.
Manufactured housing has experienced a major upsurge in production in the last few years and in order for builders to compete in this market, prioritizing home performance, comfort, and affordability is key. And it’s best achieved by incorporating reliable, efficient energy sources like propane.
‘A New Class of Manufactured Homes’
Welcome to the new generation of factory-builthomes: CrossMod™.
CrossMod is a term coined by the Manufactured Housing Institute to capture the essence of homes that bring added quality and innovation that buyers often feel only can be found in off-site built homes. These new homes have the exterior aesthetics to fit in nearly any residential neighborhood, but bring the benefits and value provided only by the factory construction process.
As housing affordability challenges continue to grow, families of all economic backgrounds are searching for attainable, high-quality homes that avoid an unsustainable financial burden.
According to MHI, CrossMod homes placed on a permanent foundation and qualify for conventional financing help challenge exclusionary zoning ordinances, and are virtually indistinguishable from higher-priced, standard site-built options. With this new “hybrid” home, the industry has the potential to bring manufactured housing to areas around the country that have little or no exposure to off-site built homes.
How and Where Propane Can Help
Creating quality, affordable homes involves an integrated, whole-building design — including the energy source powering the home’s appliances and major systems. By in-corporating propane in manufactured housing, builders, home retailers, and ultimately homeowners can count on the energy source for better performance and higher efficiency.
Propane’s versatility extends to a wide variety of residential appliances including water heaters, furnaces, clothes dryers, ranges and ovens, fireplaces, and standby generators. Plus, with propane, homeowners will see cost savings the entire time they own their home. Propane-powered appliances have lower annual energy costs compared with electric counterparts.
For example: Propane TANKLESS WATER HEATERS have 50% lower annual energy costs compared to electric storage tank water heaters
Homeowners with propane can see $80 to $120 savings in annual energy costs compared with electric cooking appliances. Propane clothes dryers have 20% lower annual energy costs compared with electric models. Plus, propane has a place in all parts of the country, not just where natural gas isn’t available. It gives community owners the chance to build gas neighborhoods on land that they’d previously thought to be less desirable because natural gas wasn’t available. Using propane in manufactured housing actually can lower the cost for land while increasing the sale price because the propertyisn’t electricity dependant.
A Versatile Energy Source
And in some communities, building with natural gas simply isn’t possible or cost-effective. Propane offers a versatile, scalable source of gas that works with nearly any type of community or location.
For larger or more dense communities, community propane systems offer a seamless energy option that operates just like a traditional natural gas system.
Manufactured housing community propane systems deliver propane gas through a network of underground pipes that connect to the homes with individual gas meters. A tank, or tanks, are installed in a central location below- or above-ground in a low-visibility common area. And because each home is separately metered, the homeowner only pays for the propane they use after they use it — just like with natural gas. Beyond powering appliances in the home, propane also can power community amenities such as backup generators, heated pools, clubhouses, and gas lamps. Propane is truly a whole-home energy source that works well for the growing CrossMod market.
As the housing market continues to change, and the demand for manufactured housing continues to grow, building professionals who are well-versed in energy-efficient methods and appliances will set themselves up for success. To learn more about energy-efficient propane appliances, visit Propane.com/Residential-Construction.
State-by-State News Roundup in the Manufactured Housing Industry
Updated Manufactured Housing News By State — Industry Response to and Updates about Coronavirus Measures
State orders to limit gatherings and reduce interaction as a measure against the spread of coronavirus are ending or are being stepped back in nearly all U.S. states. Stay-at-home orders encompassed much of the nation for more than two months, impacting the daily routine of eight in 10 of America’s 330 million people.
In many states, residents have been required to stay home, and engage in essential activities only, including short trips for groceries, fuel, and prescriptions.
Additionally, essential labor practices were implemented, as detailed by each state. Manufacturing in some states remained an essential labor practice, and in most cases, retail operations, including home centers, were closed and are endeavoring to safely reopen.
In response, the Federal government has approved a lineup of monetary relief and stimulus measures, the largest aid package ever. Additionally, Freddie Mac, Fannie Mae, and the FHA have barred evictions and foreclosures into June.
Arizona
Arizona joined the list of about 30 states to implement gathering restrictions with an executive order from the governor implementing a shelter-in-place mandate and restricting business activity. Gov. Ducey’s list of Arizona essential businesses include several provisions for manufacturing and the trades without specifying residential construction.
California
The state-wide order to stay-home and curb certain business activities includes exemptions for 16 business/industry types including home construction and inspection services. California Gov. Gavin Newsom’s stay-at-home order has no expiration. However, Newsom, Oregon Gov. Kate Brown and Washington Gov. Jay Inslee have agreed to collaborate toward an aligned reopening of the three states with regional considerations.
Colorado
The Montrose Press reports Matt Miles, developer of Midland Village in Grand Junction and Cimarron Creek and River Meadows in Montrose, won’t be collecting fees from the 1,000 homesites in the three communities. With each resident not paying an average of $500 per month, Miles says that he hopes his move will pump close to a half-million dollars into the local economies. Each community has a broad demographic containing about 60% adults with no children and 40% families.
Connecticut
The state has ordered all non-essential businesses to close and has asked residents to stay home. The governor has a list of essential businesses, which includes home construction. The governors of Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, and Rhode Island have entered an agreement for a collaborative reopening of the respective economies.
Delaware
The state of Delaware is under executive order for residents and most workers to stay home. On its list of essential Delaware businesses, residential construction is noted as an essential area that will remain open and operating. Delaware joined the coalition of seven northeast states that will reopen aspects of the economies in a planned effort. Delaware remains among the final three states, along with New Jersey and Illinois, under full lockdown.
Florida
Florida Gov. Ron DeSantis in early May 2021 lifted all statewide mask mandates and has loosened restrictions on public gatherings and other COVID-19 restrictions. Florida had initiated a mandatory stay-at-home order that ran through April 2020. The state closed entertainment venues and prohibited large gatherings. The order allowed for essential trips from home and the operation of essential businesses, which included construction and manufacturing that supports critical supply chains.
The state economy began re-opening May 4, 2020, with continued restrictions in Miami-Dade and Palm counties, where a majority of cases have been documented. Openings include retail, entertainment venues, and beaches.
Miami-Dade County Mayor Carlos Gimenez issued a stay-at-home order a week prior to the statewide action.
On May 11, 2021, Florida Department of Children and Families launched OUR Florida, or Opportunities for Utilities and Rental Assistance. The program benefits Florida families and landlords facing economic hardship due to the coronavirus pandemic.
The Florida Manufactured Housing Association said the OUR Florida program will distribute more than $800 million in emergency rental assistance funds. Earlier, the U.S. Department of the Treasury issued $1.4 billion in emergency rental assistance to Florida, with approximately $529 million distributed directly by local governments with populations over 200,000. The remaining funds will be disbursed by DCF through the OUR Florida program.
The OUR Florida program accepts applications from tenants, including manufactured home residents who pay lot rent, and landlords in need of aid, regardless of their city of residence. Learn more about eligibility, required documentation, and how to apply at OURFlorida.com.
The program focuses on low-income renters and will prioritize renters with income at or below 50% Area Median Income and/or families who have experienced unemployment within the past 90 days.
Floridians who rent homes, including mobile and/or manufactured home community lots are eligible if they:
Earn an income at or below 80% of the AMI; and
Have qualified for unemployment, experienced a loss of income, incurred significant costs of faced financial hardships due to the recent public health emergency; and
Are at risk of losing their home or are living in unstable or unhealthy conditions.
Georgia
The state of Georgia had been under stay-at-home orders since April 1 and was among the first to announce a slow re-opening of the economy. Much of the state’s residential homebuilding activities and trades disrupted by the orders are beginning to re-emerge.
Illinois
Illinois is among the final states remaining under full lockdown (along with N.J. and Delaware) with residents asked to stay home. Work activity is limited to essential businesses, which includes residential construction and associated trades. The initial Illinois executive order for April was extended to May 29.
IMHA Board of Directors has decided to reschedule the Annual Conference and Membership Meeting from April 22-23 until Sept. 16-17, 2020 and will conduct the meeting on a virtual platfom.
Indiana
Indiana has reopened a large portion of its business operations, including retail. The state issued a stay-at-home order in March and April with exemptions for essential businesses, including Indiana’s construction and critical trades.
Ron Breymier, executive director for the Indiana Manufactured Housing Association said the organization has decided to suspend a hands-on continuing education training session for manufactured home licensed installers. The session was scheduled for April 22, 2020. Attempts are being made to reschedule for later in the year. The association also is working with state officials in an effort to classify manufactured home manufacturers, suppliers, and transporters/installers as positions of critical operation in case there is an effort to shut down production. State lawmakers are working on language requiring anyone who sells more than three manufactured homes to become licensed dealers whereas current law requires licensure if more than 12 manufactured homes are sold.
Iowa
Iowa Gov. Kim Reynolds suspended property tax collection and evictions, and the state is relaxing or extending deadlines on regulations in reaction to coronavirus outbreak.
The temporary changes come through a state public health emergency declaration that went into effect immediately. Regulatory changes include collection of property taxes and related penalties and interest.
The order also puts a hold on many evictions for renters and leaseholders in the state. It does not apply to non-lease arrangements and “emergency situations allowed by law”.
Iowa had no state-at-home order, but restrictions on non-essential from the declaration are being lifted on a county-by-county basis.
Kentucky
Kentucky has issued an order to halt non-essential business activity, with provisions made for residential construction. This is not a stay-home order. Gov. Andy Beshear said the state is taking measures to bring back business services during the month of May.
Louisiana
The state of Louisiana has been added to the list of state under mandatory stay-at-home, or shelter-in-place orders. All non-essential businesses have been ordered to cease operation. The original order has been extended to May 15.
Maryland
Maryland has announced an executive order for non-essential businesses to close, and to curb large gatherings. While the order is not a “shelter-in-place” or stay-at-home order, it asks residents to stay home and limits business activities to those deemed essential. Gov. Larry Hogan on April 24 laid out a plan to reopen the Maryland economy.
Massachusetts
The governor of Massachusetts has ordered the closure of non-essential businesses, which includes operating provisions for home building and the trades. This is not a stay-home order for residents.
Michigan
Michigan was under a state order from the governor for residents to stay home and venture out for essential services only. The order had been for the month of April and was extended twice to May 28 with a staged re-entry for business operations, including the expansion of construction and the trades. Michigan reopened its economy with retail by- appointment and modified social gathering restrictions effective May 21.
All non-essential businesses had been closed through May 7, including some home construction and associated trades and services. Gov. Gretchen Whitmer in late April announced the gradual re-opening of the economy during continued social distancing protocols.
Skyline Champion Corporation, from Champion Homes headquarters in Troy, Mich., had announced reduced production in facilities throughout the U.S. in states where mandatory lock-down has been implemented.
“Skyline Champion is focused on the safety and well-being of our employees, distributors and customers we serve, and the communities in which we operate, while simultaneously ensuring business continuity across our operations,” President and Chief Executive Officer Mark Yost said. “We are well-positioned to navigate the uncertainty of the current environment due to our strong liquidity position, highly flexible, low cash-cost operating model, as well as our diversified customer channels and geographic mix.”
Minnesota
MMHA Spring Conferences June 2-3 has been canceled. MMHA staff is working remotely, but will remain available to assist members with their needs. The governor has issued a stay at home order for all residents and has closed the state’s non-essential businesses, with operating provisions made for residential construction and the building trades. Gov. Tim Walz said the state has initiated plans to activate aspects of the industrial, manufacturing, and office sectors.
Mississippi
The 2020 Tunica Show has been canceled and the annual event will return in 2021. The state of Mississippi on March 17, 2020, declared a State of Emergency in response to measures against the spread of the coronavirus. A shelter-in-place order expired on April 27.
“Tim Fagerburg, with the State Fire Marshal’s office spoke to MMHA retailers on a conference call regarding the department’s activity and structure during this time,” Mississippi Manufactured Housing Association Executive Director Jennifer Hall said. “He stated that the seven deputy inspectors with the department will continue to work from their homes and they conduct home installation inspections. Mr. Fagerburg stated that he is working from home as instructed by the Insurance Commissioner and going into the office three times a week and processing the property locators to the inspectors. He asked that installers and retailers please be patient as we work through this difficult period.
“The Governor declared a State of Emergency and he has closed all state agencies and asked each department head to only allow employees to work that are essential. Most of these employees are working from home. Retailers should contact each of the county or city permit offices and find out how they are conducting business,” Hall said. “Some permit offices are only allowing one person in the office at a time. Some offices are requiring folks to call and make appointments to follow the 10-person suggested rule by the CDC and the State Health Officer. These are unique and challenging times that we are dealing with on a day to day basis. MMHA encourages each of you to take the necessary precautions to create a safe working environment for your employees. Also please protect your families and loved ones during this most difficult time.”
The state Health Department also has recommended and asked that all Mississippi restaurants and bars halt indoor food and drink service to the public.
Nebraska
The state of Nebraska is in the midst of a comprehensive but regionalized reopening of businesses in the state.
New Jersey
The state list of essential businesses that can continue to operate includes construction. However, the state has asked for necessary project only, and the most minimal staffing possible for those essential tasks. Gov. Phil Murphy entered agreement with governors from Connecticut, Delaware, Massachusetts, New York, Pennsylvania, and Rhode Island for a collaborative reopening of the respective economies. It remains one of the final three states, along with Illinois and Delaware, to remain on full lockdown.
New Mexico
New Mexico ordered residents to stay at home and non-essential businesses to close. The mandate that was extended to May 15 included measures against mass gatherings. Residential construction was deemed an essential business in the state. Increased home construction, repair, sales and associated will resume when the order ends. The state has announced a rationalized reopening of its economy.
New York
The state of New York is engaging in a regionalized reopening effort in conjunction with neighboring states, though the city likely will remained closed or limited as long as any of the U.S. regional metros. Gov. Andrew Cuomo has ordered all non-essential workers in New York to stay home. “What I do will affect you, and what you do will affect me… We need everyone to be safe otherwise no one can be safe,” he said.
Bob Capenos, the executive director for the New York Housing Association, said the association’s meeting and training courses have been postponed at least two months. A memo from state courts puts a hold on eviction notices and proceedings until further notice. In addition, a presentation on the new tax filing system for community owners has been posted.
The governors of Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, and Rhode Island have entered an agreement for a collaborative reopening of the respective economies.
Nevada
The Manufactured Housing Institute postponed the Congress and Expo, which was to be held April 6-8 at the MGM in Las Vegas. MHI currently is attempting to reschedule the event for dates no earlier than May. The state of Nevada reopened its economy on May 9, but bars and casinos remained closed. Additionally, residents were advised to stay home.
Ohio
The state of Ohio has listed manufacturing, including construction, and general construction as essential business activities under the executive order to shutter all non-essential businesses.
Tim Williams, executive director for the Ohio Manufactured Homes Association said a member group, Greenlawn Communities, has reduced lot rent to residents by 50% for the month of April. Greenlawn operates eight communities with a total of 1,400 homesites, as well as a retail location, in the state of Ohio.
Oklahoma
The state of Oklahoma has ordered gatherings be limited to 10 or fewer people, event spaces closed, and has warned older residents and residents with compromised immune systems to shelter in place.
Oregon
Gov. Kate Brown issued an executive order for Oregonians to stay home for anything other than essential services, and asked that businesses close. The order includes provisions for essential businesses including construction, as needed, with the caveat that workers maintain social distancing standards. Oregon has aligned with California and Washington to coordinate reopening efforts, which are being conducted on a localized basis through the three states.
Pennsylvania
Residents and most workers in the state of Pennsylvania are under executive order to stay home. Only essential businesses are allowed to operate, which excludes residential construction other than emergency work on residential buildings. The state of Pennsylvania has several home building facilities that are likely to be significantly impacted by the action. The state on May 7 began a three-phase reopening of its economy, with retail sales operations opening on a county-by-county basis.
Tennessee
Tennessee has reopened its economy with new social distancing guidelines in effect following several weeks of restrictions.
Texas
The stay-at-home order in Texas lapsed in late April and all aspects of the economy have been re-opened with enhanced social distancing protocols.
Washington
Washington has aligned with California and Oregon to coordinate reopening efforts, which are being conducted on a localized basis through the three states.
West Virginia
The state of West Virginia has issued a stay-at-home order. Its list of essential businesses has yet to be released but should be available on the W.V. governor’s page shortly.
Wisconsin
Amy Bliss with the Wisconsin Housing Alliance sent out a statement about social gatherings in manufactured home communities.
“I’ve been asked for some guidance to community owners who have community centers where their residents gather,” she said. “While there is no one perfect answer, the Wisconsin Department of Health Services has some questions to ask yourself about whether to cancel events or not. For those that are dealing with an at-risk elderly population, it is advisable to be cautious.”
WDHS Suggestions
Below are the questions DHS suggests you might ask yourself when making a determination on gatherings in your community spaces:
The following will help you consider the importance of your event as weighed against the need to protect others from the spread of COVID-19.
Critical service – Does your event or service provide essential services (such as education or health care) to community residents?
Is it necessary to the public? What negative consequences would occur if this event was not held?
Community situation – Is there known sustained community transmission in the host community? Are other organizations in the community canceling smaller events?
Datacomp today announced the publication of its May 2020 Florida JLT Reports for manufactured home community rent and occupancy.
JLT Market Reports provide detailed research and information on communities in nearly 184 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 2020 manufactured housing market data published in JLT Market Reports for Florida includes information on 761 “All ages” and “55+” manufactured home communities.
Florida Statewide Trends in Manufactured Housing Community Rent and Occupancy
Florida all-ages communities experienced a 1.6% increase in occupancy and a 4.3% increase in rent.
Florida 55+ communities experienced a 0.4% increase in occupancy and a 4.6% increase in rent.
“Our May 2020 publication includes 29 reports from across the state of Florida,” Datacomp Co-President and Chief Business Development Officer Darren Krolewski said. “Adjusted rent increased in all but two Florida markets compared with May 2019, and a majority of markets experienced at least slight increases in community occupancy.”
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 2020 rents and occupancy rates to May 2019, as well as a historical recap of rents and occupancy from 1996 to present date in most markets.
TheMay 2020 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.
The MHInsider asked industry professionals to share with us the coronavirus impact on manufactured housing, and more than 600 people responded.
Responses came from all segments of the manufactured housing industry, with a majority provided by community owners and managers, retailers, and real estate brokers.
About half of respondents said stay-at-home orders will have a somewhat negative affect, and about a third said COVID-19 and prevention measures will continue to have a significant impact on their business in the months to come.
Slightly less than 7% of respondents said their business was unaffected by the coronavirus.
Infographic Responses from MHInsider Survey of Industry Professionals on the Impact of Coronavirus Measures
‘Put Your Flags Out’ On A New Scale at Ohio Community
The patriotic rally cry to “put your flags out” is captivating in any climate, but particularly during periods of strife or national crisis. Pikewood Manor Community Manager Shawn Hopkins got to thinking about what type of flag might fit the COVID crisis.
A “BIG ONE” turned out to be the answer.
“We had just put some big flags out, but we have a big yard over there, so I thought we could put another really big flag out there,” Hopkins said.
Hopkins and five volunteers from the community and the nearby Avon Ford plant in Elyria, Ohio, laid out 6,800 square feet of plywood and painted an American flag that faces Route 57 and the I-80 turnpike.
Pikewood Manor in Elyria, Ohio put out a 114-foot American Flag. Photos courtesy of UMH Properties
‘Each American a Soldier’
It’s a salute to all passersby, each American a soldier in the fight against coronavirus.
“I wanted to do it in this pandemic, and we have veterans here,” Hopkins said. “That’s the reason behind the music on the video we made, because this is like a war. Everyone feels that.”
More than $7,800 worth of supplies for the giant American Flag at Pikewood Manor came from donations provided by Loews, Carter Lumber, R.E. Michel, and Abraham Miller Excavating. Hopkins and UMH Properties Assistant Vice Presidents of Sales Bob VanSchuver finished the project with their own contributions.
Lance and Nick Dlugosz, Jason Layne, Tony Schuster, and Harry Hatten joined Hopkins in the field.
“We had six people out there,” Hopkins said. “We could have had a lot more people. There were plenty willing to help but we’re doing this for COVID, you can’t really have too many people out there.”
“But this is right on Route 57 and the turnpike, so it’s a very well-traveled route, and a lot of people are seeing it,” he said. “The feedback from residents was phenomenal. They’ve shared it, and they’ve said mostly they’re very proud to live here. In the first two hours, we had 2,000 views of the video.”
A Historical Overview of Terminology in Manufactured Housing
My earliest memory of mobile housing occurred when I was 5 years of age, living in southern New Jersey.
On the way home from the shore one summer evening we stopped for gas. While there, a half dozen or so small house-like trailers pulled off into the woods across the street from the service station, and their owners started hacking down brush and small trees. I asked my father what was going on and he said, “Oh, they’re making a trailer camp for the night or maybe next couple days.” That was 70 years ago, and much has changed, especially housing trade terminology.
One of the earliest and most persistent trade terms, extending back 50 years, has been “D&R deliveries”. Ever since the early 1970s, our industry has been known, sad to say, for this style of drop and run for trailers, mobile homes, and manufactured homes.
1974-1976 is when HUD-code and manufactured housing replaced mobile homes
In this same time frame, “syndicators” of mobile home park limited partnerships ushered in the initial consolidation of individual properties into portfolios.
During the early 1980s, “newlywed & nearly dead” became the truism describing folk buying mobile homes, then and now. In 1985, as the term manufactured housing became increasingly commonplace, the Manufactured Housing Association for Regulatory Reform (MHARR) was birthed by a former executive and members of the Manufactured Housing Institute (MHI).
The ALLEN REPORT debuted in 1989, today identifying 500+/- portfolio owners/operators of land-lease communities throughout North America. But prior to applying that apropos property label, terminology had to evolve from trailer camp to mobile home parktomanufactured home community. Also during this time frame Gub Mix, association director in three western states, hosted the first Manufactured Housing Congress – continuing to this day, as an annual MHI event.
Changing Definitions and Acronyms in Manufactured Housing Terminology
MHI’s Manufactured Housing Educational Institute (MHEI) launched the Accredited Community Manager (ACM) training program in 1991. And in 1992, the first Industry Standard Chart of Operating Expenses, and related Operating Expense Ratios (OERs) made their appearance, just in time for the Real Estate Investment Trust (REIT) wave of 1994 and 1995.
But not before the now-retired Martin Newby, of Newby Management, formalized the concept and processes for resident relations within the realty asset class, which in turn, took steps in 1996 to form the National Communities Council (NCC), now a division of MHI. This same year, David Helfand, former CEO of REITs Equity LifeStyle Properties and ARC, suggested the term owners/operators be used to describe the breadth of ownership and management of 50,000+/- communities comprising this unique income-producing property type.
In 1998 we saw 372,943+/- new HUD-code homes shipped, a sort of mini-renaissance for the industry; one in which so-called Developer Series Homes (think “big box = big bucks”) were all the rage for a short while. And during the same year, the ABC classification of communities methodology replaced the long defunct, since 1976, Woodall STAR system of property quality measurement and reporting.
‘Be a stud, sell a HUD’
During 2001, the Manufactured Housing Manager (MHM) professional property management and certification program was launched after a 13-year hiatus. The following year, as the shipments of new HUD-code homes started to tank, “Be a stud, sell a HUD!” became the widespread rallying call for the industry.
In the year 2009, the industry’s nadir shipment year, Community Series Homes materialized during a meeting of 100+ HUD-code housing manufacturers and community owners at the RV/MH Hall of Famein Elkhart, Ind. Landscape and community design consultant Don Westphal suggested during the International Networking Roundtablelater that year the CSH name. And that same year, George Porter, following a personal epiphany related to installation standards, researched, codified and introduced frost-freefoundations to the manufactured housing industry. During this same period, when the industry was struggling to survive, the term “hudular” enjoyed short-term popularity, describing new homes easily fabricated to manufactured or modular building codes.
Toters and Transporters
A year later, some common trade terms underwent significant change.Rental homesite, or just plain homesite, replaced lot, pad, space, and stall in the minds of many. Transporterreplaced toter. And homeowner/site lessee, rather than tenant or resident, clearly labeled the unique homeownership/ground-lease status of those living in land-lease communities. During 2011, longtime industry consultant William Carr popularized the terms independent (street) retailer and company stores, supplanting the trite term “dealer”.
While land-lease communities, as a contemporary label, has been mentioned a couple times in this evolution of trade terminology, it wasn’t until 2012 it achieved formal status. Why? Well, no longer are just mobile homes and manufactured homes sited therein, but now also modular homes, park model RVs, RVs for a season, stick-built homes fabricated on-site to imitate manufactured homes, and most recently, various types of Accessory Dwelling Units (ADUs) and tiny homes.
During 2018, the National Association of Manufactured Housing Community Owners (NAMHCO) was formed to lobby nationally on behalf of land-lease communities of all sizes, an especially timely and important initiative given the recent threat of national rent control.
A New Series home. Photo courtesy of Clayton Homes.
Present Day Manufactured Housing Terminology
Finally, we currently are experiencing a rush of new trade terms within the housing manufacturing segment of the industry. Think CrossMod® or “new type” manufactured homes, per MHI, produced for Fannie Mae’s MH Advantage® and Freddie Mac’s CHOICEHome℠ real estate-secured finance programs. In the meantime, land-lease community owners/operators selling, and “seller-financing” of new HUD-code homes on-site, relied on cash transactions, lease-options, and leasing of homes as rental units have occurred as they anxiously await Duty to Serve (DTS) programs at both Government Sponsored Enterprises (GSEs) to make personal property financing or chattel capital once again available for home-only loans within properties, and loans on the secondary market.
So, what will the next decade hold for us, relative to evolving trade terminology? Well, that’s anyone’s guess.
But asking me, I’ll be bold to say most of our new HUD-code home sales will come from polar ends of the pricing spectrum — the high end (via GSE DTS programs) and low end (within land-lease communities) with little else between. And communities per se? I Don’t see much change there — unless it becomes, once again, easy to develop raw land into new land-lease communities for affordable housing. And, we successfully fend off present day efforts to effect national rent control.
About George Allen
George Allen has owned and fee-managed land-lease communities since 1978. He’s a former MHI Person of the Year and a member of the RV/MH Hall of Fame. Allen can be reached at gfa(at)aol.com.
Ocean Breeze on Marathon Key offers waterfront homes with elevated views. Photos courtesy of Sun Communities.
Ocean Breeze on Marathon Key has seen its fair share of large storms, but following the destruction of Hurricane Irma in September of 2017 the community was rebuilt with a new aesthetic, and one that will help fend off the high winds and flooding of the future.
“Unfortunately we lost everything in the storm, but it’s an opportunity to redevelop,” Ocean Breeze sales associate Michelle Meszaros said.“We worked with Nationwide and we designed these homes alongside them to meet all the new standards that were put into effect after Irma.”
The new factory-built homes, constructed to local modular specifications within a stackable HUD-code envelope, are upon foundational pilings and are built to withstand high winds and flying debris.
The sunset at Ocean Breeze.
What Makes the New Ocean Breeze More Durable?
“In a lot of cases, the homes will be more wind resistant than a concrete block structure,” Meszaros said. “They’re made to withstand sustained winds of up to 180 miles per hour.
“With the Bahama shutters, you can open the windows and bring them inside the home to protect the window and the interior, including the occupants,” she said. “Many storm shutters will protect from a palm tree coming through or something like that, but the glass will still break. And it’s expensive to replace a window. This shutter protects the glass from outside debris.”
Each home has a metal roofing system and Hardie Board siding, which is a durable concrete-fiberboard that comes in a variety of textures and colors. Both upgraded materials help protect the home during a storm. And each is much less likely than standard materials to dislodge and create a further hazard for the community.
“It holds up really well to the hot Florida sun,” Meszaros said of the Hardie board. “It doesn’t fade like other siding might, so you don’t have to get up to paint it nearly as often.”
The community had 16 new homes in place at the beginning of 2020 and had plans for another 15 homes during the first quarter. All of the homes have high ceilings and plenty of natural light.
Isla Vista Model
Ocean Breeze has a seaside hammock garden.
960-square feet
2 bedroom
2 bath
Porch
Bahama shutters
Stainless steel farmhouse sink
Granite countertops
Covered parking
Second-floor sky deck
“The homes are meant to be very low maintenance,” she said. “We have beautiful Trex decking and also the stairway that goes up in the second level is made by Trex. And there are beautiful, nautical looking stairway rails, with posts and guy-wires.”
Likewise, all of the exterior hardware and components of the homes, as well as the community buildings and common areas, are made from non-corrosive materials. Rebar and concrete foundations are drilled and anchored into the corral below. Brick and paver driveways go under each home and throughout the community.
With Ocean Breeze rebuilt to withstand heightening forces of Atlantic storms, Sun Communities, the Michigan-based owner, can let the property be as it was intended — an enchanted seaside resort in the middle Keys.
Much Needed New Housing in Central Florida Keys
Beyond the durability of the revamped land-lease community, the new homes it provides are much-needed affordable housing in a resort area known for its multi-million dollar dwellings.
“If you talk about the Keys, our homes are affordable,” Meszaros said. “You can’t even purchase a home on the canal for under $1 million. Right next door to us there’s a developer putting in $6.5 million homes. Ocean Breeze is very affordable for the Keys.”
Waterfront homes at Ocean Breeze will sell for $390,000, with homes in the $200s at the interior. Interior monthly site rent is $1,100 and $1,350 at the water. Former residents of Ocean Breeze are provided special pricing if they opt to return.
“Some of them are coming back. We offered them the rebuilt community, brand new homes, and all the amenities, fully insured, at 5% below cost,” she said. “We are pleased that some people did come back.”
Common areas include an open-air pavilion on the boardwalk. It has comfortable seating, including couches, a TV and a grill. The harbor has been dredged, and a new dock system with 14 boat slips was put in. Sun Communities also installed a sunset deck with mature coconut palms and a hammock garden.
“There’s a lot of fishing and snorkeling, obviously, so it really is a beautiful place to be,” Meszaros said.
“It’s one of the great spots because you’re right in the middle,” she said of Marathon Key. “It’s often called the heart of the Keys. There’s shopping and retail, medical access. People don’t realize here that you can get to a grocery store in 10 minutes whereas in other spots it may take you an hour to go to the store.”
The Manufactured Housing Institute Honors Recipients with Annual Professional Awards
MHI has announced the 2020 award winners for its Excellence in Manufactured Housing, honoring organizations in the areas of manufacturing, retail, community, supply, lending, and design.
Excellence in Manufactured Housing awards manufactured housing professionals from every corner of the industry, chosen by peers and an independent panel of experts for leadership and dedication.
“This year we had over 100 entries from industry partners who are thinking outside of the box to improve the manufactured housing industry,” said MHI President Mark Bowersox. “This year’s award winners show the dedication and expertise that this industry needs as we push forward. On behalf of MHI, I’d like to congratulate all of this year’s winners.”
Winners of 2020 Excellence in Manufactured Housing Awards
Manufacturer of the Year Awards
• Manufacturer of the Year – Two Plants or Less: Adventure Homes
• Manufacturer of the Year – Three Plants or More: Clayton Home Building Group
Retail Sales Center of the Year Awards
• Retail Sales Center of the Year – East: UMH Properties, Sunny Acres Sales Center in Somerset, Pa.
• Retail Sales Center of the Year – West: Family Homes in Chino, Calif.
Land-Lease Community Awards
• Community Operator of the Year: Hometown America Communities
• Land-Lease Community of the Year – East: Beach-Cove Properties, Inc.
• Land-Lease Community of the Year – West: Oak Tree Ranch in Ramona, Calif., Hometown America Communities
Parke Place Estates in Elkhart, Ind., a UMH Properties community.
Communities Work with Residents Who Need Time, Help to Pay
While reports come in from various sectors of the housing market that up to a third of renters have yet to pay April rent, early feedback from the manufactured housing industry shows a more promising trend.
Much more inquiry is warranted and underway, but owners and operators who oversee tens of thousands of homesites in nine states report that more than 90 percent of residents in their communities paid April rent during the first week of the month.
“As of the end of the week 86.6% of April rent has been paid, and we’re allowing anyone who has lost their job because of the virus, they don’t have to pay their rent extending into May as needed,” Landy said. “Thereafter, when things get going again, we’re going to allow residents to pay the back rent through 25% installments each of the following months, as needed.
“We’re making it as solvable as we can for the resident and there won’t be any real receivable issues for us,” he said. “We’re pretty confident about that.”
UMH Properties owns more than 115 manufactured home communities in Indiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Tennessee. Those properties include residents who pay lot rent to UMH, as well as 18,000 residents who rent a home at an average cost of $700 per month.
A Positive Sign from Manufactured Housing Communities
Holiday Village in Nashville, Tenn. Photo courtesy of UMH Properties.
Manufactured home owners historically have had a more difficult time than other buyers in obtaining home financing, because they generally have been considered a higher risk for those who extend and secure home loans.
“The fact that 82% paid today is a good illustration of what we’ve been saying all along,” Landy said. “This is a very stable housing stock with good customers who care about where they live.”
“You can do better in the short-term not looking for black swan events, but we’ve always been cautious in that way, which allows you to weather a time like this,” Landy said. “Clearly we have the staying power to get through this and maintain our dividend and perhaps be able to trade at a premium given the stable nature of our organization.”
Landy said sales have continued through the company website and UMH is conducting remote closings.
“So, it’s painful because we are concerned about our residents, and from operations, we’re a growth company and it’s hard to grow in this kind of limited environment, but we have no concerns about maintaining our value, paying the dividends, and getting back to normal business as soon as it makes sense.”
April Rent at Five California Communities
On the other side of the country, Newport Pacific’s Maria Horton manages four communities in Southern California. She said even among communities with the area’s most affordable rent, residents have paid April rent or have communicated when and how they would pay. Of 479 homesites in the parks she oversees, 448 residents — or 93.5% — had paid during the first week of April.
While April has seen unprecedented changes in the market, and produced a great amount of uncertainty for residents and owners, May rents could be more of a concern.
“We want people to pay as soon as they can, but right now residents can pay any time during the month without a fee,” Horton said.
“I have a park I manage where the owners sent a letter to residents to let them know they’d be eligible for a raffle of a $500 gift card if rent was paid prior to April 10,” she said. “They’re also providing $25 gift cards for those who successfully set up online payment for the first time. And these incentives likely will carry through to May.”
A resident at Garden West Estates in Gardena, Calif., wears a mask while walking her dog. Photo courtesy of Newport Pacific.
Social security recipients who receive checks at a later date in the month and notify the office of the date of receipt for payment of their rent also will be entered in the drawing if rent is paid in full, Horton said.
Outside of rent collection, business continues if not face-to-face. Horton is making remote appointments and conducting regular drive-throughs of the manufactured home communities she oversees.
“We are calling and checking in on people all the time to see if there’s anything they need,” Horton said. “People come out little by little to walk their dogs for instance, and they wear their masks. There’s less activity in the senior parks, but people seem to be doing well.”
Georgia Owner Expands Assistance Program
David Roden owns Mountainview Estates in Ross, Ga. He has 75 homesites occupied and said he’s given residents until the 15th of the month to pay in April. All but five residents were able to pay April rent, and the others have indicated when and how they will pay.
“We are very pleased with our residents and their willingness to work with us and communicate to us their needs and problems so we can work out a solution with them,” Roden said. “We expect more non-payments in May, but if the stimulus checks come in, I may be surprised.”
Roden and other southeast community owners involved in the annual SECO event have expanded a program that was initiated to help armed forces veterans in need of assistance. Roden said the Veterans Assistance Fund has been expanded to include health care workers who are on the front lines fighting coronavirus.
“We believe they are the real heroes at this time, the ones who have stepped up to save lives,” Roden said.
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MHI’s Manufactured Housing Educational Institute (MHEI) launched the Accredited Community Manager (ACM) training program in 1991. And in 1992, the first Industry Standard Chart of Operating Expenses, and related Operating Expense Ratios (OERs) made their appearance, just in time for the Real Estate Investment Trust (REIT) wave of 1994 and 1995.
A year later, some common trade terms underwent significant change.
