Cavco Industries Announces Executive Leadership Changes

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November 8, 2018

JoeStegmayerCavco — Joe Stegmayer during a presentation in Indianapolis in September 2018.

Today, Cavco Industries, Inc. announced executive leadership changes. The Company’s Board of Directors has appointed Daniel Urness as President and Acting Chief Executive Officer, effective immediately. In his new role, Mr. Urness will be responsible for day-to-day leadership of the Company. The Company also announced that Joshua Barsetti, the Company’s Chief Accounting Officer, will assume the duties of principal financial officer for purposes of financial filings and certifications.

William Boor, Chairman of the Company’s Audit Committee, a member of the Company’s Compensation Committee and an independent member of the Board since July 2008, will assume the duties of non-executive Chairman of the Board.

Daniel Urness has worked for and on behalf of the Company for nearly 20 years in numerous leadership positions and has long been part of the Company’s Chief Executive Officer succession plan. Most recently, Mr. Urness served as Cavco’s Executive Vice President, Chief Financial Officer and Treasurer until August 2018, when he resigned from that position to work more closely with the Company’s home building production facilities to gain additional experience as part of the Company’s succession planning efforts. As Executive Vice President, Mr. Urness played a key role in advancing Cavco’s operational initiatives, which established the foundation for the Company’s successes.

“The Board fully supports Cavco’s current strategy and is confident that Dan Urness is the right person to build on our Company’s success,” commented Mr. Boor. “We are fortunate to have Dan return to our executive leadership team as our new President and Acting Chief Executive Officer,” he added.

Joseph Stegmayer, former Chairman, President and Chief Executive Officer, commented that “Dan Urness is a great choice to lead Cavco. He is a strong leader, with the ability to connect with customers, partners and teammates. His institutional knowledge of our Company and significant industry experience will ensure a smooth leadership transition. I look forward to continuing to serve the Company in my new role.”

Stegmayer Steps Down

The Company also announced that it had received a subpoena from the Securities and Exchange Commission’s Division of Enforcement (“SEC”) requesting certain documents relating to, among other items, trading of the stock of another public company. Subsequent to sending the Company a subpoena, the SEC sent a subpoena for documents and testimony to Joseph Stegmayer, regarding similar issues. The Company has initiated an independent investigation and intends to cooperate fully with the SEC’s investigation. Please see Part II, Item 1, Legal Proceedings section of the Company’s quarterly report on Form 10-Q for the period ended September 29, 2018, filed with the Securities and Exchange Commission contemporaneously with the issuance of this press release, for additional information regarding this matter.

Mr. Stegmayer stepped down from his position as Chairman, President and Chief Executive Officer of the Company after an internal investigation, conducted by independent legal counsel, identified certain violations of Company policy related to securities trading activities conducted by Mr. Stegmayer. The Board’s decision to transition Mr. Stegmayer to a non-executive role allows the Company to retain his deep industry and operational experience.

“The Board took actions that it believes to be in the best interest of the Company and its stakeholders,” commented Mr. Boor. “Cavco remains a strong Company and is well positioned for the future under Dan’s leadership.”

Daniel Urness, President and Acting Chief Executive Officer

Mr. Urness, 50, was previously Cavco’s Executive Vice President, Chief Financial Officer and Treasurer from April 2015 until August 2018. Previously, Mr. Urness served as Cavco’s Vice President, Chief Financial Officer and Treasurer from January 2006 to April 2015 and as a director and/or officer of certain of Cavco’s major subsidiaries, including Palm Harbor Homes, Inc., Fleetwood Homes, Inc., CountryPlace Acceptance Corp. and Standard Casualty Company. Mr. Urness was also Cavco’s Interim Chief Financial Officer from August 2005 to January 2006, Corporate Controller from May 2005 to August 2005, financial consultant to the Company from June 2002 to May 2005 and Controller from May 1999 to June 2002. Prior to joining Cavco, Mr. Urness served as manager and staff at Deloitte & Touche LLP for approximately six years.

Joshua Barsetti, Principal Financial Officer
Mr. Barsetti, 38, has served as Cavco’s Chief Accounting Officer since August 31, 2018. Previously, Mr. Barsetti served as the Company’s Senior Director of Financial Administration from August 2017 to August 2018 and as the Company’s Director of Internal Audit from October 2014 to August 2017. Prior to joining Cavco, he served as the Director of Financial Reporting at Universal Technical Institute (“UTI”) from November 2013 to October 2014 and previously served as UTI’s Audit Manager and Senior Audit Manager from May 2011 to November 2013. He held various internal audit positions at Viad Corp. from September 2005 to May 2011, most recently as an Internal Audit Manager. Mr. Barsetti holds a Bachelor’s degree in Accounting from Northern Arizona University and is a registered Certified Public Accountant.

William Boor, Chairman of the Board
Mr. Boor is Chief Executive Officer of Great Lakes Brewing Company, a large craft brewery in Cleveland, Ohio, a position he has held since September 2015. From December 2014 to September 2015, Mr. Boor was principal of MIB Holding Co LLC, a mining development company. From 2007 to 2014, Mr. Boor served in various executive positions with Cliffs Natural Resources, Inc. (“Cliffs”), most recently serving as Executive Vice President – Corporate Development and Chief Strategy/Risk Officer and President-Ferroalloys. Among other roles prior to Cliffs, Mr. Boor held the position of Vice President, Corporate Development at Centex Corporation. During that tenure, Cavco was a subsidiary of Centex, and Mr. Boor worked on the Cavco strategy and its eventual spin-off in 2003. Mr. Boor earned a Master of Business Administration degree from Harvard Business School and is a Chartered Financial Analyst.

About Cavco Industries, Inc.
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. The Company is one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle and Lexington Homes.

The Company is also a leading producer of park model RVs, vacation cabins, and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco’s mortgage subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer, a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Datacomp Releases November 2018 JLT Manufactured Home Market Reports for Idaho, Oregon, Minnesota, Washington

By

Patrick Revere

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November 2, 2018

November 2018 JLT Manufactured Home Market Reports have info on 297 communities from 10 major markets

Datacomp, publisher of JLT Market Reports and the nation’s #1 provider of manufactured housing industry market data, announces the publication of its November 2018 JLT Manufactured Home Market Reports for 10 markets in Idaho, Oregon, Minnesota and Washington.

Recognized as the industry standard for manufactured home community market analysis for more than 20 years, JLT Market Reports provide detailed research and information on communities located in more than 160 major housing markets throughout the United States. This includes the latest rent trends and statistics, marketing programs and a variety of other useful management insights.

Datacomp’s manufactured housing data published in the November 2018 JLT Manufactured Home Market Reports includes information on 297 “All ages” and “55+” manufactured home communities located in 10 major markets in the six states. Altogether, the reports include data representations for 51,040 homesites.

The November 2018 JLT Manufactured Home Market Reports includes a new Boise, Idaho, market report. The Boise market report adds 19 previously unreported communities with a total of 3,522 homesites.

“Industry rents and occupancy have demonstrated sustained growth in all markets. We see a slight dip in occupancy among retirement communities in one Oregon market,” Datacomp Co-President Darren Krolewski said. “The November reports provide a valuable snapshot of the performance among manufactured home communities in portions. In addition, the inclusion of a new Boise report maintains our intention to expand our geographic footprint toward access to useful industry data nationwide.”

Detailed Information You Receive in the JLT Market Reports

Each JLT manufactured home community rent and occupancy report includes detailed information about investment-grade manufactured home communities in major markets.

Information includes:

Number of homesites
Occupancy rates
Average mobile home community rents and increases
Community amenities
Vacant sites
Repossessed and inventory homes

Established reports show trends in each market, with a comparison of November 2018 rents and occupancy rates to November 2017. In addition, there is a historical recap of rents and occupancy from 1996 to the present date in most markets.

The November 2018 JLT Manufactured Home Market Reports for 10 markets in Idaho, Oregon, Minnesota and Washington are available for purchase and immediate download online at the Datacomp JLT Market Report, 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. They enable owners and managers, lenders, appraisers and other industry professionals to effectively benchmark communities and make informed decisions.

CFPB Asked To Change Regulations to Support Financing for Manufactured Housing

By

Dr. Lesli Gooch

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November 1, 2018

Financing for Manufactured Housing — CFPB Acting Director Mick Mulvaney speaks during the MHI Summer Fly-In in Washington, D.C.

The Manufactured Housing Institute Penned a Letter to the Consumer Financial Protection Bureau Asking to See Change that Supports Financing for Manufactured Housing

The Manufactured Housing Institute (MHI) hosted Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, at the Legislative Fly-In in Washington, D.C., this summer.

Acting Director Mulvaney expressed a willingness to work with MHI to address regulations that hinder financing for manufactured housing. Following the Fly-In, MHI sent a letter to the bureau in response to Mulvaney’s comments.

At Mulvaney’s recommendation, MHI’s letter stressed the importance of prompt implementation of Section 107 of the “Economic Growth, Regulatory Relief, and Consumer Protection Act” (Pub. L. 115-174 § 107), regarding the definition of loan originator and the need for adjustments to the Home Ownership Equity and Protection Act’s (HOEPA) “high-cost mortgage” triggers.

MHI Asks For ‘No-Action Letter’

MHI asked the bureau to issue a “No-Action Letter” confirming that it will not pursue administrative action against any retailer or seller while it revises its regulations to be consistent with the new law. The recently passed definition clarifies that manufactured housing retailers and sellers are no longer considered mortgage originators simply because they provide customers with some assistance during the mortgage loan process.

Regulations need to be changed to be consistent with the law. And, such changes will take time because they have to go through a formal rule-making process. A “No-Action Letter” would provide cover for retailers and sellers who want to immediately take advantage of the flexibilities offered by the new law.

Also, MHI requested that the bureau make immediate adjustments to the “high-cost” thresholds for smaller-dollar manufactured home loans under HOEPA, so these loans are not unfairly swept under this designation simply due to their smaller size.

MHI will continue to utilize its relationships with administration officials and manufactured housing champions in Congress to advocate for these changes. At MHI’s June 2018 Legislative Fly-In, members of Congress were asked to contact Acting Director Mulvaney about them. MHI raised these issues again with Mulvaney and his leadership team, stressing that both requests will spur lending for manufactured housing without impacting existing consumer protections.

MHI said it will continue to pursue these and other legislative and regulatory changes that support improved availability of financing for consumers interested in purchasing a manufactured home.

Design for the Season: Model Homes and Clubhouses Staged to Sell

By

Suzanne Felber

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November 1, 2018

Design for the Season to Sell Manufactured Homes

It’s magic. Just like when the magician moves scarves through the air, moving and adding seasonal decor to your homes and clubhouses can make sales reappear. Sales can leap if you design for the season.

This is true even after a home has been in inventory for longer than you had wished.

Clayton Homes of Desoto, Texas, asked The Lifestylist Brands to update its existing homes. They asked that we use as much of the existing decor as possible.

Yes, this seems like a tall order, but it’s something that good interior designers and merchandisers can make work each day.

Rearranging furnishings and decor expends a great deal of energy. However, an earlier, important step in the process is to rid the home of dated, damaged furniture and decor. To keep that old stuff only makes the home look and feel used. Rather, we want to show the beautiful new home it is!

Work Only With the Best Options You Have

It’s so easy when you are busy selling homes to forget what happened to the leg of a sofa, or for upholstery to get stained or faded and remain on the floor. And many times, it’s difficult to buy something new. So what do you do?

Our goal at The Lifestylist is to get customers excited about moving into a new home, a place no one has ever lived, a place where the owner can start a new life. It’s important that the home looks as fresh as your customers’ dreams.

Customers look for bright, open floor plans. So now more than ever, it’s important that curtains are pulled open, blinds are up and windows are washed.

We want to fill your home with natural light!

Every lamp in the home is turned on in the months when we are short on daylight. And every lamp and fixture should use an LED bulb. Energy-efficient bulbs cost a little more off the shelf, but they last for decades. And you can take them from house to house as places sell.

Re-staging for the Season

In the process of re-staging the Clayton homes, we decided to take a little extra time to stage a few homes for the holidays. We did a two-day professional photo shoot for images that could be used on social media, in advertising and for editorial opportunities.

Plan photos that will be useful so you can have them ready upon request. For Instagram, you will need a square shot, yet advertising or your website might need more overall room shots. On other social media, where images are small by comparison, it’s better to have a focal point in a room that is easy to view.

We decided to do staging with the Rio Grande model for Fall, Halloween and Thanksgiving. And we used the Drake for Winter and Christmas. This gave us plenty of opportunity to design for the season with different looks and styles that could appeal to a range of buyers. And it worked well, because the models come at two distinctly different price points.

Area Rugs and Pillows Help to Design for the Season

For the Rio Grande, the first thing we did was add color and texture to the main room. Area rugs are an easy and inexpensive way to add color, and with so many of our homes having rooms with wood or tile flooring, it’s good to achieve a warmer and more inviting look.

Area rugs also offer an easy way to seasonalize your home — use a rug with darker, warmer colors in the cooler months, and change out to a sisal or lighter green colored rug in the summer.

Pillows provide yet another easy and inexpensive way to change the look of your homes. It’s fun to have cases sewn that allow you to change out looks and easily store away out-of-season designs.

Our first priority always is to sell homes, not decor kits. So we want to make sure that the staging helps accent the important attributes of the home, rather than being the focal point. In the Rio Grande, we decluttered the open shelves above the kitchen cabinets and took everything but a few focal pieces off the countertops and island.

Develop a Theme that Helps Design for the Season

Pick a theme that is consistent throughout the home for a clearly well thought-out decor. The last thing you want is the impression that you’re designing randomly with items you found in a storage closet.

We like to pick not more than three colors to focus on, so the palette doesn’t get too busy or steal attention from the home. For the autumn theme, we went with those lovely fall colors, foliage and foxes. During Halloween time, we found cute vintage accessories and key orange accents in each home. And for Thanksgiving, we went with a theme of giving thanks and reminding people how appreciative we are of their business.

Most importantly, notice that a lot of items were used in all three looks. We simply changed out the main themed items.

How to Work with a Centerpiece

Don’t forget tabletops when you want to seasonalize your homes. It’s hard to believe how many models overlook this very important part of the home: plates, napkins, and placemats add texture and color to a room that might only have wood floors, wood furniture and painted walls.

The Drake model was a perfect example of a home that was full of hand-me-down furniture and decor items that not only hurt the look of the home, but made it feel dark.

We pulled out some cream upholstery from another home, as well as chrome cocktail and end tables. The results were amazing. This change helped the home to sell quickly, and orders were placed for custom homes as well.

Using large artwork also helped this home feel upscale and updated … and this was wall art stored away in a closet that came to us at no cost.

Try a Vintage Look in Your Next Redesign

For Christmas, we did a vintage RV/mobile home theme that was a huge hit.

Did you know that vintage-styled mobile homes are trending? You’ll be seeing a lot of this during the 2018 holiday season. Nearly every recent furniture market we tour notes this practice.

For the winter wonderland, we used a very cool color palette of grey and cream, which had a rich and contemporary feel.

Just like every retail store you visit, we need to keep our homes looking updated and providing customers a reason to come back. By using a design for the season and taking the time and investment to photograph your hard work, you’ll keep traffic up and sell more homes.

Get more from Suzanne Felber at The Lifestylist.

6th Annual NCC Fall Leadership Forum Begins Wednesday

By

Patrick Revere

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November 1, 2018

6th Annual NCC Fall Leadership Forum at Westin Michigan Avenue in Chicago — The NCC Fall Leadership Forum takes place each November at the Westin Michigan Avenue in Chicago. Photo courtesy of Westin Michigan Avenue.

NCC Fall Leadership Forum Open Registration Begins Wednesday at 4 p.m., with Opening Reception that Night and a Full Schedule of Activities Thursday through Friday Morning

The National Communities Council, a division of the Manufactured Housing Institute, hosts community operators, service providers, brokers and lenders Wednesday through Friday in Chicago for its 6th Annual NCC Fall Leadership Forum.

Summary of Activities for NCC Fall Leadership Forum

Thursday, Nov. 8

9 – 10:15 a.m.: Trends for Manufactured Home Communities with Dr. Henry H. Fishkind.
10:15 – 11 a.m.: Legislative & Regulatory Update with Dr. Lesli Gooch of MHI.
11:15 – 12:15 p.m.: The Crisis: Managing Residents, Regulations and the Media in 2019 and Beyond.
12:15 – 1:15 p.m.: Networking Lunch sponsored by UMH Properties.
1:30 – 2:30 p.m.: State of the Market – Community Financing Trends in 2018 & Beyond with an industry panel.
2:45 – 3:30 p.m: Determinants of Site Rent: An Economist’s Analysis with Charles E. Becker, Ph.D., Duke University.
3:30 – 4:30 p.m.: Today’s Chattel Lending Environment with a moderator and industry panel.

Friday, Nov. 9

9 – 10 a.m.: The Future of Social Media for Manufactured Housing with Crystal Washington, CSP, Technology Strategist & Certified Futurist.
10 – 10:45 a.m.: Selling More Homes & Marketing Your Community with Lisa Lane, Four Leaf Properties.
11:00 a.m. – Noon: Resident Relations: The Role of Customer Service with an industry panel.

MHI Designed NCC Fall Leadership Forum with Executives in Mind

The full schedule for the 6th Annual NCC Fall Leadership Forum is on the MHI website, along with details on registration and accommodations. The Westin on Michigan Avenue is the venue for the 2018 NCC Fall Leadership Forum.

Event organizers said the forum becomes larger each year, generating networking opportunities and resulting in more business deals.

NCC Fall Leadership Forum offers a strategic look at high-level issues facing the community segment of the manufactured housing industry, with participants from across the country

The event is designed to allow executive professionals to engage and connect with their peers. All attendees benefit from being presented with insight on the latest industry trends and activities. Furthermore, the event will capitalize on what has been a strong year in the manufactured housing industry, with the prospect of a bright 2019 ahead.

The NCC Fall Leadership Forum looks to minimize time out of the office and maximize education and interaction with peers and potential clients.

Thursday’s full day of programming will open with breakfast. That night features an evening reception at 360 CHICAGO in the John Hancock building.

Questions regarding the event can be directed to events@mfghome.org.

Equity LifeStyle Properties Finds Success in RV/MH Property Mix

By

Patrick Revere

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October 31, 2018

Equity Lifestyle Properties, a Chicago-based REIT

Chicago-based REIT Equity Lifestyle Properties Expands Three Communities in Arizona, Texas

Equity LifeStyle Properties is expanding in interesting ways, bringing more manufactured homes to RV properties in a fashion that creates a destination lifecycle for customers.

The company has more than 400 properties with nearly 154,000 sites across the country. With that, Equity LifeStyles owns one of the nation’s largest networks of real estate.

While ELS has a near-equal mix of manufactured housing communities and RV resorts/campgrounds, it is currently leading the trend of blending the two models into a single community.

Equity Lifestyle Properties home in Lake Conroe, Texas — One of the home styles available at ELS’ Lake Conroe property.

Ron Bunce, senior vice president for 150 ELS properties in the company’s western markets, oversees several blended communities. Included in his territory are three properties in Texas and Arizona currently undergoing this type of mixed property expansion.

“What we continue to see from our RV customer is an interest in staying connected to their destination property and the relationships they have built there,” Bunce said. “Traveling by RV and managing multiple destinations can become challenging, leading many to prefer the conveniences of a manufactured home in the resort they previously enjoyed in their RV.”

Chicago-based Equity LifeStyle Properties became a public company in 1993. At the time, it had a portfolio of 41 manufactured home communities. For many years, the company’s core business consisted of retirement communities in Sunbelt destinations. Yet, through extensive property acquisitions during the recent 15 years, ELS entered the RV business, a property type that continues to be a valuable component of the company’s operations.

Fortunately, the addition of RV appears a natural fit for the company.

“The business models of MH communities and RV communities are very similar,” Bunce said. “We saw it as a logical combination of property types because they are operationally similar, as is our customer base among the communities.”

Equity Lifestyle Properties in Mesa, Ariz. — The pool at Monte Vista in Mesa, Ariz.

The Expanding Properties

ELS purchased a pair of Mesa, Ariz., RV resorts in 2004 from separate owners. Both properties are in the midst of expansion projects, bringing a sizable MH component to each of the resorts.

ViewPoint RV and Golf Resort has a mix of more than 2,000 sites that hold RV, park models and manufactured homes.

“Our expansion project at ViewPoint has added 235 manufactured home sites so far, with another 200 planned,” Bunce said. “It’s a unique community in that it features 27 holes of golf. We have an 18-hole championship golf course, with an additional 9-hole executive par-3 course.”

ViewPoint also offers the resort-style amenities you might expect: swimming pools, tennis club and softball fields.

“We have softball players ranging in age from 55 to 90, including some in their 80s who throw a mean fastball. It is truly something impressive,” Bunce said.

“There are hundreds of people in the tennis club, and we have great pickle ball courts and a fitness center,” he said. “There are 50 different club and hobbyist groups at ViewPoint. That’s why our customers either come back year after year or decide to stay for good. They want to socialize, have fun and be creative.”

Monte Vista Village Resort

The other ELS expansion property in Mesa, Ariz., is Monte Vista Village Resort. It is a community with nearly 950 sites, including 115 manufactured housing expansion sites.

“Our target customer is the retiree or Baby Boomer group,” Bunce said. “And we found that a 1,300-square-foot, 2- or 3-bedroom home appeals to that buyer. Many will spend the winter months with us, and some will decide to stay year round.

“Traditionally, our customers have been in a time in their lives when they are looking to sell their home, often in a northern part of the country. They visit our resort and find the house, community atmosphere, social engagement and, of course, the weather they’re looking for here,” he added. “Increasingly, we’re now also seeing people who already live in the Phoenix area coming to us for those same reasons.”

The community shares common space and amenity packages similar to ViewPoint. However, rather than golf courses, it offers lawn bowling, billiards, horseshoe pits and extensive crafting facilities. This includes dedicated rooms for lapidary arts, silversmithing, woodworking and pottery.

A Lakeside Village North of Houston

Equity Lifestyle Properties — A view from the community at Conroe Lake in Texas.

ELS purchased the Thousand Trails network of campgrounds in 2008. Among the more than 80 properties in the portfolio was Thousand Trails Lake Conroe, a lakeside campground about an hour north of Houston. Since then the company completed an expansion project for the property. It incorporates additional RV sites, as well as 50 new manufactured home sites.

“Our manufactured homes in the property have been very popular,” Bunce said of Thousand Trails Lake Conroe. “We sold out the first 50 MH sites and we just started a project adding another 67 RV sites.”

Additionally, the property features lake access that draws many visitors. Residents bring small watercraft to enjoy on the popular 21,000-acre swimming, fishing and boating lake north of Houston.

“Having access to the lake is very important to our customers,” he said. “We offer a number of boat slips for residents and guests, as well as a boat launch on the property. There’s also a covered outdoor social area, an indoor lodge, a large swimming pool with cabanas, tennis courts, a fitness center and dog park.”

Equity LifeStyle Properties purchases homes from many manufacturers. However, its recent western expansion projects have resulted in a focus on Cavco products for both manufactured homes and park models.

The Future of Growth at Equity LifeStyle Properties

Acquisitions also contribute to portfolio growth at ELS. Through the first seven months of this year, the company acquired four properties in Florida, adding nearly 1,900 sites to the portfolio. Of these, three were manufactured housing communities.

The other key element to the ELS growth and investment strategy is development.

Expansion properties under consideration are evaluated for…

Market conditions
Demographic trends
Zoning and entitlements
and infrastructure requirements

In all cases, ELS seems intent on making additions and changes that its customers find favorable. Bunce said the company is able to gauge interest from website activity and social media, but also heavily weighs customer sentiment and satisfaction through one-on-one conversations, meetings with homeowners’ associations and responses to customer satisfaction surveys.

“We have a lot of different ways to measure and ensure we’re responsive to our customers,” Bunce said.

Among those measurements is likely the company’s solid history of occupancy growth. Occupancy in ELS manufactured home communities sits at nearly 95 percent, and the company has had 35 consecutive quarters of occupancy increases across the portfolio.

“We work hard to ensure we’re providing the lifestyle offerings our customers are looking for,” Bunce said.

Favorable Trends for Equity LifeStyle Properties

Equity Lifestyle Properties home interiors — The kitchen and living area of a home in the Lake Conroe property.

Equity LifeStyle Properties has positioned well to take advantage of demographic trends during the next several years. Approximately 70 percent of its properties cater to Baby Boomers. Ten thousand Boomers will turn 65 each day for the next 12 years, according to the Pew Research Center.

Manufactured home shipments are up 50 percent in five years, and recently achieved an 11-year single month sales peak. This is an industry-wide measure of success mirrored by trends with ELS properties.

“We continue to see a strong home resale market, which is a key indicator of demand for the homes in our communities,” Bunce said.

In addition, the characteristics of the RV side of the business also are positive. ELS numbers show there are about 9 million RVers in the country and about 1.5 million RV sites. Furthermore, industry trends such as the growing popularity of peer-to-peer RV rentals are positively impacting the amount of time RVers spend in those campgrounds.

“Meanwhile, our hybrid RV and MH communities are positioned to attract customers in all segments of the RV-to-MH lifecycle. From the weekend camper to the snowbird to the full timer… and, in many cases, the former RVer who prefers to purchase a manufactured home in their favorite resort,” he said.

With its very first property purchased in 1969, ELS will celebrate its 50th anniversary next year.

“We’re very proud of our history of providing quality communities and RV resorts for our customers,” Bunce said. “We have a lot to celebrate.”

Manufactured Housing Industry Members Recognized at Annual Conference

By

Dawn Highhouse

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October 24, 2018

Michigan Manufactured Housing Association presents awards to 6 exceptional members

Industry Members Recognized at Annual Conference in Novi

The Michigan Manufactured Housing Association (MMHA) presented its 2018 Member Awards on Oct. 11 at its annual conference at the Suburban Collection Showplace in Novi, Mich. The awards were presented by MMHA Board President Richard Winkelman:

Best Model Home Staging

The Best Model Home Staging award was given to HomeFirst/Brookside. HomeFirst/Brookside’s entry showcased one of its brand-new model homes that is contemporary, trendy and truly comparable to a stick-built home. Danya Mallad accepted the award.

Best Manufactured Home Community Event or Activity

The award for Best Community Event or Activity went to Highland Greens and M. Shapiro Management.

Highland Greens organized a “back to school” raffle for all elementary-school-aged children within the community. They managed to make every child who entered a winner. Over 50 backpacks were given away, filled with school supplies. The award was presented to Debbie Robbins and Jeannie Barrett.

Best Mobile Home Communtiy Event awards — Debbie Robbins and Jeannie Barrett accept the award for Best Community Event or Activity.

Best Member Sales Event or Activity

Sun Communities of Western Michigan was awarded Best Member Sales Event or Activity. Sun Communities held open house events at six different communities in Western Michigan and promoted them using digital marketing. The result was over 9,000 clicks to their landing page, hundreds of in-person community visits, and multiple home sales. Heather Rector accepted the award.

Best MMHA Member Website

Best Member Website award went to Preferred Homes. The new website for Preferred Homes is www.preferredmobilehomes.com, and is an easy-to-navigate site filled with beautiful home photos, floor plans, homeowner testimonials and financing information. Rose Graham accepted the award.

Exceptional Customer Service Award

The winner of the newly added category for Exceptional Customer Service was presented to Capitol Supply & Service. Capitol Supply & Service has generously donated the installation of equipment and materials to families in need living in manufactured housing communities. These special cases were brought to Capitol’s attention by community managers, school districts and news station agencies. The award was presented to Claudia Elliott.

Best Manufactured Housing Community Manager Award

The only award given to an individual is for Best Community Manager. The 2018 winner was Kitty Cole of Sherwood Forest. Kitty Cole has been community manager of Sherwood Forest in Ionia, Mich., for the past three years. She is a lifetime Ionia resident, as well as former business owner, and an active Chamber of Commerce member. The award was presented directly to Kitty Cole.

The MMHA Member Awards program is designed to recognize the exceptional leadership, marketing and communications efforts of its members, and to enable members to display the award as a point of pride and accomplishment. For photos and more information about these exceptional manufactured housing industry members, visit www.michhome.org.

Brand Management For Manufactured Home Communities

By

Contributed Content

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October 22, 2018

Build a brand that will get customers flowing into your communities and homes.

There Is A Lot That Goes Into Brand Management for Manufactured Home Communities

By Jennifer Tyson, HappyCo

Brand management an oft overlooked aspect of manufactured home sales

A strong and positive identity increases rental rates and final selling prices. It also decreases rental vacancies and accelerates the speed at which you sell.

But what is your brand?

It’s not your logo, website and other marketing assets. While critical to your brand identity, those are the visual representations of your brand, not the brand itself. Your brand is your promise to your residents. It is every interaction your employees have with current and prospective residents, and is every interaction those residents have with your community.

Your brand is what sets you apart from competitors and alternative housing solutions. Most importantly, your brand is what your customers say it is.

So how do you ensure residents and prospects know your brand and admire it?

Your Brand Promise: Get the Details Right

Start with your promise to residents. As the manager of a manufactured housing community working on brand, your first duty is to make sure your community makes good on the brand promise.

Just as no amount of marketing can turn a one-bedroom house into a two-bed, two-bath home, presenting your manufactured home community as the high-quality, less expensive alternative among housing options is entirely negated by a first impression of a community that is improperly maintained.

A thorough, regular and consistent community inspection program key to creating long-term, positive associations with your brand

With regular inspections, you not only ensure compliance with regulatory and corporate standards, you can catch problems (like a small leak in a rental home) before they become big problems (like gushing pipes into the street).

Clearly, you want to reduce overall risk and keep residents safe and happy in their homes. Even better, with a well-maintained property, current residents become your key brand voice. If they’re satisfied with the upkeep in and around their home, they will tell their friends.

Conversely, they will tell anyone who listens if they’re dissatisfied.

Technology to Support Community Quality and Brand Management

While performing regular inspections for compliance-related factors and for things that contribute to overall brand image — like landscaping and curb appeal in common spaces — might sound like a lot of work, modern digital inspection platforms actually can make this process easier and more effective. There are several such apps on the market. HappyCo’s property inspection app is available for iOS and Android.

If an inspection app is intuitively designed and easy to use, it can significantly improve the speed and quality of data collection over pen-and-paper inspections, especially if it makes use of mobile device cameras.

To be sure, improving the quality of your inspections is an investment. However, the return on that investment really can pay off. Remember, your brand is influenced by every interaction your employees have with residents, as well as the quality conditions of your manufactured community. In this way, ensuring your residents wake up to a beautiful, friendly community is a mandate for a better brand.

MHE’s Glenn Creek on display at The 2018 Louisville Show

Talk About Customization

From fashion to food to furniture, millennials want everything about their lives and their image to be customized to them. What’s great about manufactured housing is that it offers a capacity for customization that is unparalleled in most other parts of the housing market.

Yet, the benefit of manufactured housing has yet to be fully embedded in the minds of most millennials. Broadcast this message loud and clear, particularly if your manufactured homes are in a region that has competing product. This includes apartments, condos, tiny homes and site-built single-family residences.

Customization will set your community apart in the minds of many customers, particularly millennials. It shows that you cater to individual needs. It’s this kind of differentiated positioning that forms the essence of branding.

Price Is an Object

Apartments in major markets are pricey in comparison with most manufactured housing communities in the same vicinity. The average apartment for rent in Houston costs more than $1,300 each month. A manufactured home in the same area can be rented for near $1,000, or less. In coastal cities, the difference can be much more dramatic.

We are in a housing market where millennials spend thousands for closet-sized spaces. Manufactured housing, again, is an opportunity to deliver a win-win. Photos and videos are the key to delineating differences between a manufactured housing community and a big-city studio. Show the customer that for near half of what they’re paying for an urban apartment in an old building, they can live in a beautiful new manufactured home.

Catch the Customer’s Attention

In today’s market, the first impression of your brand often is online. So, when it comes to attracting prospective residents, that means putting care into designing your website. Residents need to feel like they’re going to have a comfortable experience before they see a home. And having a clean website with a modern user interface and welcoming language goes a long way toward bringing people in.

Digital marketing has long been the key in an effective brand strategy for home sales and apartment rentals. A 2017 study of homebuyers from the National Association of Realtors reports that 42 percent of people search on the internet as the first step toward purchasing a home. That number surely is even higher for millennials, the so-called internet “natives” who represent the majority of renters today and a rapidly increasing percentage of homebuyers.

Millennials Are The Emerging Homebuyers

With 18-29 year olds representing the biggest segment of the manufactured housing market, at 23 percent, mastering today’s digital tools to communicate your brand to this new generation of homebuyers has become high-stakes business. Create a meaningful experience through targeted advertisements.

Modern property managers have a host of tools to help them create standardized, sleek websites and ads. Beautiful web templates abound to help you showcase your community’s strengths, most of them at extremely affordable costs. Google Adwords makes it easy to narrow down and precisely target the markets and individuals most likely to buy. It serves messages tailored to their home-search patterns. Facebook and other social media sites help you convert current buyers or renters into evangelists for your brand. And review sites provide the opportunity to publicly address any problems and demonstrate you are a caring, responsive community manager or home seller. Of course, MHVillage has myriad advertising opportunities and a sophisticated and focused manufactured housing audience.

Also, the feel of a well-made business card and a solid brochure shouldn’t be discounted. Offering a potential customer something to read and admire before and after a tour is another excellent way to keep your housing solutions top of mind.

Attract new faces to manufactured communities

Strategic brand management can help bring entire new demographics of customers to your communities and to your homes. The key is to make a promise that resonates with the groups you’re trying to target — and then follow through on it.

Unfortunately, branding isn’t a one-time, “set-it-and-forget-it” activity. It requires diligent upkeep. This starts with physically maintaining your property but encompasses all the interactions between residents and the community and its employees. Brand management isn’t easy, but get it right and you’ll have a clear competitive advantage.

Jennifer Tyson is VP of Marketing at HappyCo, a San Francisco-based technology company that builds mobile and cloud solutions to enable real-time property operations.

August Home Shipments Top 11-Year High

By

Patrick Revere

-

October 17, 2018

August Home Shipments First 9,000-Plus Month Since ’07

In August 2018, new manufactured home shipments increased 7.9 percent to 9,091 homes. That is compared with the 8,425 homes shipped in August 2017.

Total August home shipments improved by 2,340 homes when compared to the prior month of July 2018.

Compared with August 2017, the trend is positive with shipments of single-section homes up by 6 percent and multi-section homes up 9.5 percent. Total floors shipped in August 2018 increased 8.5 percent to 14,174 compared to August 2017.

No FEMA Units Included in August Total

Of the 9,091 homes shipped in August, there were no homes designated as FEMA units.

The seasonally adjusted annual rate (SAAR) of shipments was 98,104 in August 2018, up 5.8 percent from the adjusted rate of 92,694 in July 2018. The SAAR corrects for normal seasonal variations and projects annual shipments based on the current monthly total.

In August, 133 plants representing 37 corporations reported production data to the Manufactured Housing Institute. The reporting numbers were consistent with those from July 2018.

This report was compiled in collaboration with The Manufactured Housing Institute, the industry’s national trade organization.

Manufactured Homes Retain Value Much Like Site-Built Homes, Report Indicates

By

Patrick Revere

-

October 16, 2018

Manufactured Homes Retain Value All Transactions

In its Quarterly Price Index Report on Home Values, FHFA Explores How Manufactured Homes Retain Value

In an experimental price index for manufactured homes, the Federal Housing Finance Agency shows manufactured homes retain value in a nature similar to other housing.

“With this HPI report, FHFA is making information about these indexes available for the first time,” the report states. “The indexes are largely experimental at this stage. The manufactured homes data used in forming these series include information for homes titled as real estate and not chattel.”

In Cooperation with Freddie Mac and Fannie Mae under ‘Duty to Serve’

FHFA used special loan data from Freddie Mac and Fannie Mae to produce a pair of new indices. The first is a purchase-only index, which accounts for purchase values. The second an all-transactions index that takes into account manufactured home appraisal values.

The approach for the new manufactured home value indices uses the same methodology employed by FHFA in creating its long-running quarterly house price index. However, the new indices to shed light on how manufactured homes retain value pools national data on the homes. The 40-year HPI uses state-by-state data.

FHFA reported that the difference derives from limited access to data sets in regard to the purchase of manufactured homes.

The base year for both indices is 1995, with an arbitrary weighted value of 100 assigned at that point.

FHFA Purchase Only for Manufactured Home Value Retention

The home values trend in a very similar fashion. We see a bit more annual volatility among the early data set on manufactured homes. Notice how the nearly identical peaks in the third quarter of ’07 result in similar volatility in the site-built data? Clearly, the first quarter of 2012 shows a deeper trough for the manufactured home data.

FHFA All Transaction for Manufactured Home Value Retention

So, on the all-transactions set that includes home appraisals, the shape stays largely the same with a bit less volatility between 1995 and the height at 2007, then both products tend to rattle a bit more on the down trend.

“In general, the figures suggest that manufactured homes have seen price trends broadly similar to those of other homes. According to the purchase-only series, since 1995, prices have risen by roughly 120 percent for manufactured homes vs. 140 percent for other homes,” the report states.

“Although the manufactured homes index had a lower trough, it has been steadily converging on the traditional site-built series, as evidenced by its larger gains over the past four years,” it said.

Data Sets Relative to MH Index Weighted for Metro Representations

FHFA put together a third snapshot comparison of the two home types. Manufactured homes tend to have less presence in metro areas. Consequently, the agency weighed the data to eliminate geographic differences.

“To provide more of an apples-to-apples comparison of price trends, a new index for manufactured homes is calculated with a dataset that up-weights transactions in metropolitan areas,” the report states. “The new sample reflects roughly the same proportion of transactions in metropolitan areas relative to FHFA’s traditional (purchase-only) sample.”

Notice the gap between the non-manufactured and manufactured property indices that grows slightly when comparing the first and last figures.

In conclusion, similar indices may be offered in coming months and years. However, they’re likely to be produced less frequently than the standard HPI, the report states.

Please feel free to post comments in regard to what you read and see here. Is there any feedback for the FHFA? Let us know your thoughts and we can pass them on for you.

Stegmayer Steps Down

Daniel Urness, President and Acting Chief Executive Officer

November 2018 JLT Manufactured Home Market Reports have info on 297 communities from 10 major markets

Detailed Information You Receive in the JLT Market Reports

Information includes:

The Manufactured Housing Institute Penned a Letter to the Consumer Financial Protection Bureau Asking to See Change that Supports Financing for Manufactured Housing

MHI Asks For ‘No-Action Letter’

Design for the Season to Sell Manufactured Homes

Work Only With the Best Options You Have

Re-staging for the Season

Area Rugs and Pillows Help to Design for the Season

Develop a Theme that Helps Design for the Season

How to Work with a Centerpiece

Try a Vintage Look in Your Next Redesign

NCC Fall Leadership Forum Open Registration Begins Wednesday at 4 p.m., with Opening Reception that Night and a Full Schedule of Activities Thursday through Friday Morning

Summary of Activities for NCC Fall Leadership Forum

Thursday, Nov. 8

Friday, Nov. 9

MHI Designed NCC Fall Leadership Forum with Executives in Mind

NCC Fall Leadership Forum offers a strategic look at high-level issues facing the community segment of the manufactured housing industry, with participants from across the country

Chicago-based REIT Equity Lifestyle Properties Expands Three Communities in Arizona, Texas

“The business models of MH communities and RV communities are very similar,” Bunce said. “We saw it as a logical combination of property types because they are operationally similar, as is our customer base among the communities.”

The Expanding Properties

Monte Vista Village Resort

A Lakeside Village North of Houston

The Future of Growth at Equity LifeStyle Properties

Expansion properties under consideration are evaluated for…

Favorable Trends for Equity LifeStyle Properties

Michigan Manufactured Housing Association presents awards to 6 exceptional members

Industry Members Recognized at Annual Conference in Novi

Best Model Home Staging

Best Manufactured Home Community Event or Activity

Best Member Sales Event or Activity

Best MMHA Member Website

Exceptional Customer Service Award

Best Manufactured Housing Community Manager Award

There Is A Lot That Goes Into Brand Management for Manufactured Home Communities

Brand management an oft overlooked aspect of manufactured home sales

Your Brand Promise: Get the Details Right

A thorough, regular and consistent community inspection program key to creating long-term, positive associations with your brand

Technology to Support Community Quality and Brand Management

Talk About Customization

Price Is an Object

Catch the Customer’s Attention

Millennials Are The Emerging Homebuyers

Attract new faces to manufactured communities

Jennifer Tyson is VP of Marketing at HappyCo, a San Francisco-based technology company that builds mobile and cloud solutions to enable real-time property operations.

August Home Shipments First 9,000-Plus Month Since ’07

No FEMA Units Included in August Total

In its Quarterly Price Index Report on Home Values, FHFA Explores How Manufactured Homes Retain Value

In Cooperation with Freddie Mac and Fannie Mae under ‘Duty to Serve’

FHFA Purchase Only for Manufactured Home Value Retention

FHFA All Transaction for Manufactured Home Value Retention

Data Sets Relative to MH Index Weighted for Metro Representations

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