The Masthead

post by

L. A. “Tony” Kovach, MHM

www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals

Office – 815-270-0500

latonyk@gmail.com or tony@mhmsm.com
http://www.linkedin.com/in/latonykovach

July jumps with sales for many.  Some go on vacations.  Pros get busy, but we are still growing in readers.  Why does readership matter?  Because all professionals need up to date, independent information.  You need ideas to consider and discuss with peers.  You need a place to join a nationwide Industry conversation.

Readership matters for more reasons.  Soon-to-be RV/MH Hall of Fame inductee George Allen stated the following:

“What’s emerging today is the growing consensus, We’re an industry likened to a ship without a rudder, drifting aimlessly on the still – troubled waters of our national economy, languishing (new) housing market, and no new sources of third party chattel capital.” …

“But know what’s sorely missing from the recovery equation, though rarely discussed – if and when the time arrives to ‘go public’ with ‘a plan’? The method(s) by which such a plan is effectively published or broadcast, is severely limited at this time.

“Neither MHARR or MHI have general trade broadcast ability to non – members; the Merchandiser, Modern Home, and Automated Builder magazines are gone; the Allen Letter professional journal & the Allen CONFIDENTIAL! are limited circulation, subscriber – supported newsletters; and, The Journal, in this industry observer’s opinion, rarely seeks out and publishes trade NEWS beyond two, sometimes sparring, columns penned by MHI & MHARR executives. Those avenues simply won’t get the job done! Only means left, are online ezines…”

When George mentions online ezines, there are emailed newsletters, such as Ken Rishel’s Chattel Finance News, which technically is not an ezine.  So what George is referring to in practical terms is our publication here, MHMSM.com.

Continuing from another quote from Allen:

“Turns out MHMSM; you know – the nearly two year old online ezine at MHMSM.com, has a timely take on last week’s post at this website: ‘MHI (‘My’) MHARRvelous Dream’!  Like many who make their living in one or more segments of the manufactured housing industry, the publication believes the time has come, once again, for the Manufactured Housing Association for Regulatory Reform (‘MHARR’) and Manufactured Housing Institute (‘MHI’) national advocacy bodies to work together!  Once again?  That’s right. If a novice in the MHIndustry and LLCommunity asset class, know many of us have seen these bodies ‘bury their bloody hatchets’ in the past, to pass or fight legislation.  Think the Manufactured Housing Improvement Act of 2000, for starters.  This time around, however, we need the ‘MHI MHARRvelous Dream’ to become Reality on several fronts: defeat of Dodd – Frank legislation, HUD’s full implementation of aforementioned MHIA @ 2000, even the veritable survival of the manufactured housing industry!  For more information, visit MHMSM.com.  And remember; we can either ‘hang together’ during these trying times, or for certain, die separately.  Me?  I’m all for strength in numbers.”

When you get a lot of e-comments and calls on an article, it makes a writer think he has hit an important theme.  There is no easy way to capture all of the comments on our last column:

Can MHI and MHARR Join Hands on Dodd-Frank for Manufactured Housing’s Future?

But let’s provide a representative sampling of what Industry Leaders and Readers are saying about the article linked above.

Most of these emailed messages start with my name, but I will use that only in the first one to save space and time.  We are leaving most typos in, unless there is a character ‘gremlin’ which needs to be modified to reflect the writer’s intended word.  I’ve edit out obvious tip-offs or give-aways of the writer’s identity as well.

Let’s begin:

Tony

I applaud you for taking this public stand. You’re saying what just about everyone in the MHBusiness is thinking, and saying privately these days. And as far as that goes, Good for You!

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Congratulations on what may be your best work yet! You have accurately
summarized the chasms that exist between our industry associations, MHI & MHARR.

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…a ‘next step’ in this challenge, i.e. Good News! MHI & MHARR have worked together ‘in our behalf’ in the past, so precedent is present! “Hey you two, are you listening? We expect you to do so again - NOW!”

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Back to MHI/MHARR: True, the two entities have come together for initiatives in the past (MH Improvement Act of 2000 for instance), but while their intentions are purportedly the same, they have gone about furthering those intentions in drastically different ways.

True, you can catch more flies with honey, but there should be a point of ‘enough is enough.’ I don¹t agree with Danny¹s broadside blasting style in every instance, but in his defense, he¹s been watching HUD running pretty much how they want to, disregarding the law (MHIA 2000), while the ‘get along’ guys seemingly just wants no one to get their feelings hurt.

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I will begin by stating that I am a strong supporter of MHI and I am convinced that for the good of the industry and our deserving customers, this smoldering feud must STOP!  For the past decade, I have seen opportunities for industry unity vanish as a result of the egotistic attitude some of its leaders.

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Manufacturers, retailers, community owners, financial institutions and our customers are all in the same boat. Will we be paddling together toward a better future or separately bailing our individual boats to keep them from sinking?

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It is clear to me, that since my initial involvement with m/h in…that legislative advocacy between the manufacturing and sales of new homes and the needs of existing communities are as different as ever.  The creation of two National legislative advocacy organizations to support these two divergent interests could result in the most efficient application of resources for each separate industry interests.  Problem is: how to provide financing for both. With most of the financial responsibility currently being provided by manufacturers and related suppliers, will communities and their related support services be able to provide for a separate organization?

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It is unfortunate that MHARR can’t cooperate with MHI for the betterment of the industry.  In my experience, though, cooperation in simply not in MHARR’s vocabulary.

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Years ago, I watched a movie entitled Young Frankenstein. Gene Wilder played a young neurosurgeon Dr. Victor von Frankenstein.  He re-animates a lifeless body, but mistakenly transplanted an abnormal brain into it.  The huge, powerful ‘monster’ becomes a danger.  So Dr. Frankenstein does a ‘transfusion’ between the two of them to calm the monster.  Sometimes I think we need a ‘transfusion’ between Danny and Thayer, to balance each one for the betterment of our Industry.

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…the writing deserved the recognition…

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What we could accomplish by combining revenues and resources would probably amaze all of us.

Has this ever been pursued. ??

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This is a sampling of the emailed comments on this topic.  There have been posted comments, and statements posted on LinkedIn relative to this subject as well.  Phone calls have been overwhelmingly supportive of the article:

Can MHI and MHARR Join Hands on Dodd-Frank for Manufactured Housing’s Future?

So can we encourage MHARR and MHI leaders to cooperate together for the betterment of all on Dodd-Frank and other key Industry issues?

Can each association support the other in key areas?

Can there be peace and cooperation between these Industry voices?

What say you?  Your posted or emailed comments are encouraged and appreicated. # #

Editor’s Note: Besides our ‘always new’ Daily Business News , we have three new Industry Voices Guest Blog posts on these topics; each worthy of your attention and comments!

• Saving Chattel Lending by Marty Lavin
• Matthew Silver’s Interview with SC Association Executive Director Mark Dillard
• Thayer Long on IBISWorld

We have read of late from Marty Lavin, Doug Gorman, industry lender Al Cole and here on this blog about the impact of Dodd-Frank on our Industry.

Clearly we are not alone, as JPMorgan Chase’s leader recently sounded off on the negative economic impact Dodd Frank will have to the U.S. with Fed Chairman Ben Bernanke.  These voices say that squeezing capital squeezes job creation and may squeeze more businesses of all types out of business.

As we reported in the Daily Industry News Blog, the final Rule for SAFE is about to be released by HUD.

But in the shadows of the negative impact on business of SAFE or Dodd-Frank or other regulations, there are those planning for the long haul.  They are looking past 2011 and 2012 to 2013.

Clayton and Cavco continue to acquire pieces of manufactured housing building.

ELS has planned to acquire a big slice of Hometown America’s portfolio of manufactured housing land lease communities.

I was approached recently by a gent who represents West Coast money. He wants to buy MHC portfolios of 100M or more.

Green Courte Partners and ROC USA are among those who are actively looking to acquire more communities.

Some are trimming down or getting out of the MH business.  Meanwhile, others are buying up or buying in.

Where are you positioning yourself?  Are you and your firm planning to grow, or shrink?

It is only logical that we try to amend Dodd-Frank so that it does not negatively impact on manufactured housing personal property (chattel) loan volumes.  If you missed it, as we noted in an earlier blog post, those loans triggered by Dodd Frank will slice off lending under $78,000.  This does not end all chattel MH loans, but it will impact enough where it will drive business further down if it isn’t stopped.

Check in with your association(s) to see what they are doing.  Be a part of the solution.

But even for all of those who will sit on their hands and do nothing, things will continue to evolve.  Some will plan beyond today and tomorrow to grow.  Some may not plan to die, but they will.

You and your company need parallel path strategies:

• how can you work with others to modify Dodd-Frank (DF) enough this year to minimize its impact on MH lending?
• what will you do if DF goes into effect?  How will DF impact your firm?  Can you take steps to minimizes its effects?  Can you take steps that will cause you to profit from its effects?

I’m told by leaders in various states that many owners and senior managers do not fully understand the impact of Dodd-Frank on their business.

Many consumers and MH owners do not understand DF’s impact, either. We must reach out to our peers and customers in an intelligent fashion.

Spreading the word is thus crucial.

You can do that by simply emailing this link  http://www.mhmarketingsalesmanagement.com/blogs/tonykovach/deal-making-in-dodd-franks-shadows-over-manufactured-housing-news/ to others.  We have linked material from this page to others.  Emailing one link can do a lot to make a difference.

If I were in a struggling MHC or other industry business, and someone emailed me a link, as a helpful hand…

…when the time came to sell, I would consider that helpful person and their offer before others.

Yes, manufactured housing deals will be made as a result of Dodd-Frank, before and after rule making.

Having a solid grasp of manufactured housing news and events is an important tool to have, use and share.  # #

In his article “Hoping for Change Doesn’t Cut It”,  Ross Kinzler from the Wisconsin Housing Alliance (WHA) used a term I would like to paraphrase, “partnering with government.”

Specifically, here is what Ross said:

“2. There will be no progress without agreement on an action plan to press the solutions with our government partners in the U.S. Congress and the various agencies. We can’t go to D.C. without a plan.

Some might shudder at my use of the term “government partners,” but you can’t participate in a federally-regulated industry and then declare war on your regulator. We need to develop a partnership with our regulator or don’t be surprised if they continue to take a hard line against us.”

You can see the entire article and the comment in context at this link:
http://www.mhmarketingsalesmanagement.com/featured-articles/october-2010/1071-hoping-for-change-doesnt-cut-it 

There is pain aplenty out in the country, in our Industry and beyond. Physical pain is a signal from the body that something is wrong. Emotional or economic pain is also a signal that something has gone awry. Ross and scores of others are correct: restricted access to financing is part of that painful picture for our Industry. Regulatory and other log-jammed issues are part of that pain as well.

I can think of numerous state and other association executives that I admire – women and men – who know how to mix with public officials and legislators to get things done for their members.

Why should MHARR or MHI leaders mind if an ad hoc group of state association execs met with officials from HUD or other agencies? Not to get a third voice in DC, but to facilitate the communications and the efforts we as an Industry all want and need? This could be done by conference call; it can have a very low cost and essentially no risk other than time.

Most investors don’t put all their eggs in one basket, or even two. If the pitcher isn’t getting the job done, it doesn’t mean he is a bad pitcher, it just means today or this team may not be his best game. Why not send in a relief pitcher? Others can coach or share talking points. All analogies limp at some point, but you get the point. Let’s not sit on our hands, or merely decide to spend money, when another option or approach is available.

We have months between now and when the new Congress is seated. Why not use some of that time to set the stage for a productive effort? State execs… national execs, government regulators, why not a try a different approach to the dialogue? Why not sit down – by phone – and schedule a series of talks?

Who will pick up the phone or send out the email that can get that common sense effort started? # #

Two Snapshots of topics in manufactured housing – plus a bonus! So thanks for joining us again. Let’s dive in and get started!

1. This week’s Manufactured Housing Events:

2010 Five-State Mid-Atlantic Convention
Oct 18 – Oct 20
Albany, New York
Contact: Nancy Geer (518) 867-3242

Manufactured housing industry professionals from the states of NY, NJ, PA, DE & MD will gather in Albany, NY Oct. 18-20 for networking, business building insights, exhibits and much more! Here is a snapshot:

Adolfo Carrión, Jr., HUD Regional Administrator for New York and New Jersey and Jeff Blatnick, 1984 Olympic Gold Medalist in Greco-Roman wrestling and cancer survivor are keynote speakers. 

• Market and demographic trends, how they impact your business

• Using Social Networking Sites to increase your business

• Resident Screening including background checks and more

• SAFE Act Update and its impact in your state

• Mitigating risk and lowering your insurance costs

• Investing in difficult economic times

Please contact Nancy Geer (518) 867-3242 for more information. 

Illinois Manufactured Housing Association Finance Seminar

October 21, 2010

Springfield, IL

Contact: IMHA (217) 528-3423

• Greg O’Berry, Hometown America, Keynote Speaker

• Valerie Ross, SBA

• Heather Chandler, CSI, Title II

• George Allen and the ‘Ah-Ha’ Moment

• Sandra Lewinthal, JD, Eviction and Abandoned Home

• Lindsey Keyes, Rural Development

• Donna and Ken Rishel, Captive Finance

8 AM-5 PM, Oct 21 2010. Registration can be found by calling the Illinois Manufactured Housing Association at 217-528-3423 and requesting a registration brochure; info@imha.org. The event will be at the Northfield Inn and Suites in Springfield, Illinois.

2. Manufactured Housing Communities of Arizona (MHCA) Fall Conference

October 20-22, 2010

Tucson, AZ

Contact MHCA: (800) 351-3350

• A Manager’s Basic Responsibilities: Neal Haney, NTH Property Management, Inc., will speak on some of the basics every manager needs to know.

• Fees and Charges: Neal Haney will discuss what you can and cannot charge residents.

• Who is Living in Your Community? What do you look for when doing your background checks? Neal Haney will discuss this topic.

• Crime Free Program: Rebecca Noel, Tucson Police Department, will discuss the program.

• Reasonable Accommodations under Fair Housing Laws for Disabled Residents: MHCA Attorney Michael Parham of Williams, Zinman & Parham, P.C. will speak on this issue that has raised some concerns.

• Red Flags Rule: MHCA Attorney Michael Parham will speak on the Rule. Have you developed your Community’s Rule as required by federal law?

• Property Management Today

• Dealing with Utility Companies – What You Need to Know! Neal Haney, NTH Property Management, Inc. and President of MHCA, will review some of the new issues.

• New State Law for Storage Lots: Attorney Scott Williams of Williams, Zinman & Parham, PC. will explain the new state legislature passed a new law regarding storage lots. If you offer storage facilities to your residents, this is important!

• Maintenance Issues in Your Park: MHCA Attorney Michael Parham will speak on this topic.

• Improving Your Bottom Line with Solar: Many businesses (including parks) are finding they can save money with solar energy. Art Robertson with Cal Energy Group will explain what can be done.

• Update on the RV Act: MHCA Attorney Michael Parham will explain the new laws on utilities and evictions that went into effect this year.

• You Be the Judge: This is always fun! The attorneys will argue a case – and you vote on who wins! Attorneys Scott Williams, Doug Nelson and Michael Parham will present.

• Proper Documentation for Manufactured/Mobile Home Parks

• Proper Documentation for RV Parks: Neal Haney, NTH Property Management and MHCA President, will speak on what you should have in each tenant’s file.

• The Government & You: Land Use Law for Your Community – What the Government Can and Cannot Do: As we hear of more land use issues, it’s important both owners and managers realize what the law says. Attorneys John Buric and Dennis Zwagerman will give this presentation.

• Property Rights Concepts and Strategies Every Landlord and Manager Should Know: Attorney John Buric will discuss these issues.

• Important Legal and Practical Concepts to Help You Thrive in a Struggling Economy: Attorney John Buric will review these ideas.

====>> When you see these fantastic topics and speakers at these various seminars, you begin to understand the value that attendance at these events and association membership can mean to you and your business! 

Are you a member of one or more Industry Associations? Well, you should be! I learn at every event I attend, and the same is true for all those who participate. It would cost you many times more to ‘go it alone’ by hiring the legal and other business insights you need today. Association membership doesn’t cost, it pays.

3. George Soros and the Mid-Term Elections

The mid-term elections are only about two weeks away now. Almost everyone agrees that Republicans will pick up dozens of seats in the House and perhaps eight or more Senate seats. 

The questions of the day seem to be, just how many seats will ‘Tea Party’ energized Republicans gain? How is our Industry positioning itself for the political sea shift to come? Are we using our time and resources wisely?

You can listen to experts from both sides of the political aisle share their opinions as to why their party will do well or ‘better than expected.’ Since this is often just self-serving information, what struck me as a more insightful news item this past week was George Soros’ public statement that he will sit out this election cycle.

Billionaire Soros is a well-known champion of liberal/left wing political causes. When asked why he isn’t actively supporting with those mountains of money the current crop of Democratic incumbents and newcomers, his reply was direct and revealing. He doesn’t believe in standing in the path of an avalanche.

Corporate, state and national association leaders are wise to position themselves for what promises to be a more fiscally conservative, and likely pro-business makeup of the House and Senate in the aftermath of the 2010 election cycle.

4. News at Noon and the Industry Market Report!

If you aren’t already signed up and logging onto Factory Built Housing News at Noon with Erin Patla and the Industry Market Report, brought to you exclusively every business day here at MHMSM.com, you are missing out! You can sign up free in seconds, and then log on daily to listen online, or download for your convenience.

Exclusive reports from our Eric Miller, edited by our own Catherine Frenzel, these are daily news features brought to you in minutes that often have insights that you can use in your business, professional or association planning.

Until next time, thanks for joining us daily here at MHMSM.com! # #

Business growth is often very much dependent on government activity. The right, or wrong, actions or inaction on the part of government can help or harm the business environment. We all know that fact. We know, too, that organization and concerted effort can pay off; this is true of the winner of each and every political campaign. The one better organized, the one that creates the most appeal and gets out the most votes, wins.

“What sort of government have you given us?” It is said that this was the question asked by a woman as Ben Franklin and others finished their work on the U.S. Constitution. Ben Franklin replied, “A republic, madam, if you can keep it!”

When we say the Pledge of Allegiance, we pledge our allegiance to the Republic, not to the democracy. We are a representative republic. On the national level, our laws are passed by representatives of the people. Our representatives in turn need to know what we the people want, in order for them to deliver it to us via the mechanism of law.

I can look you in the proverbial eye, and ask you to contact your U.S. Representative and Senators. I can do so because I’ve done so this past week; I did it, then turned to my colleagues and teammates and asked them to do the same! We can advance the cause of manufactured housing and modular home construction if we each do our part. That part can be done in just minutes.

Those timely contacts of our elected officials can lead you to the business growth you are investing your time, talent and treasure in!

If a dozen or two of us sound off, oh well! But when hundreds or thousands of Industry professionals like you, your associates and ours sound off, then WOW is the impact on Congress! From there, we can foresee how Congress can move to pass legislation or muster its weight to move regulators on issues that need to be addressed.

Manufactured and modular housing builders need to learn from and support each other. I will simply draw your attention to this article, Builders of Mods and HUDs, can they get along?

Then, I will say, we can and should be learning from each other and working together! We are stronger together – politically and economically – than apart.

Modular and prefab builders have an agenda that could be aided by HUD Code manufacturers, and vice versa. “Factory built housing” is a broad umbrella, one well worth each segment mutually supporting the other!

The summer break for Congress is over, and they are going back to work in Washington. 2010 is a key midterm election year and we are going into the final weeks of an election. There is no better time to get rapid results than NOW!

I am asking YOU to write. Please see the list of issues on my previous blog post; add some of your own if you like. Or do a personal intro of yourself and your company, and then attach all or those parts of the message we sent that you like. (The links for contacting your Reps and Senators are given in that previous blog post, too.) But please, I am asking YOU to do it! Because if YOU do it, you can rightly ask others to do it, too!

Then, I hope some of you will have the oomph to inspire others by posting a copy of the letter, fax or email you send to your Congress person and Senators below, or on LinkedIn. Or share the message you send to your Congress person and Senators with others you know in the Industry. This is a great time for concerted action!

You and your company are in business to make money. Congressional action can help that cause. There are far more reasons to act than not to act. Action ALWAYS trumps in-action! Thanks for all that you and others like you, in associations or businesses do to promote and advance the cause of manufactured housing today.

L.A. ‘Tony’ Kovach, MHM – publisher, editor and The Masthead blogger at
Manufactured Home Marketing Sales Management trade journal at
www.MHMarketingSalesManagement.com aka www.MHMSM.com
tony@mhmsm.com
847-730-3692

And remember! Tony also does contract marketing and coaching for industry clients. Marketing that doesn’t ‘cost;’ it pays off on your bottom line. Enough said! # #