The Masthead

“We can’t solve problems by using the same kind of thinking we used when we created them.” – Albert Einstein

1. MHI and MHARR released their dueling press releases this week on their different takes on the fire sprinkler issue. Click the respective names of each organization above to see their statements. Which one makes the most sense to you?  Feel free to sound of to me or post a comment.

We provide. You decide.

2. Manufactured home community owners often complain that HUD Code builders “don’t get it.” An owner of multiple communities has sounded off in the Industry Voices guest blog. Builders and Community operators should check it out.

3. Why do some see doom and gloom, but others keep buying up pieces of the Industry? Part of the answer lies in the numbers! Find out why we can rise to 200,000 annual new home shipments – or more – at this article here.

4. Who are those focused on providing the tools for a manufactured housing rebirth? the Midwest Manufactured Housing Federation (MMHF) pros are certainly among them! Check out at this link below the many ways the MMHF and others are making a brighter future possible. How MH Pros can Make More Money in 2012.  MH Retailers!  Learn how you can access genuine zero down financing.

5. Is there a way to grow the Industry, in part by attracting the support of MH home owners? A marketing professor says yes! See her compelling column linked here.

6. Indiana Manufactured Housing Association’s (IMHA) Power Symposium for community operators last Wednesday was really fine. We will plan to do a wrap up report on the IMHA meeting later this week. But one of many great take away was this statement by Eric Oaks, Oxford Bank and Trust, who said: ‘The game is the same. Some of the rules have changed.’ This was Eric’s way of saying if we adapt to the rule changes in manufactured housing, the business is still the same. Eric publicly and privately encouraged industry pros not to buy into doom and gloom. The opportunity to prosper is still available.

7. We plan to do an update in the Daily Business News this week on the MHI hunt for a replacement to departing Thayer Long.

“We can’t solve problems by using the same kind of thinking we used when we created them.” – Albert Einstein

For the most news and views you can use, for the most popular factory built housing industry news source ever, surf in right here daily to MHProNews.com. If you are not already on our free twice weekly email updates, please click here. Once you start, you’ll be hooked – which is why nearly 15,000 of these emailed updates are sent to pros like you every week. # #

post by

L. A. ‘Tony’ Kovach
Publishers and Marketing Director
MHProNews.com & MHMSM.com
http://www.linkedin.com/in/latonykovach

 

From four miles up, the perspective of the world is quite different.  The biggest home looks tiny, the nicest ride is a pencil point on a ribbon of a road.

From up here, the ‘who is next at MHI’ topic takes on the perspective of the high flying leaders for whom such choices are common place, and thus easier.

 

 

No less than ten pros not named in our last column on who follows Thayer Long as President of the Manufactured Housing Institute (MHI) are being floated in offices and on conference calls.  Most of those named ‘in the hunt’ are men.  Some have served at MHI before.

Some are being discussed as possible interim leaders.  Such a move would allow more time and discussion on the ‘permanent’ successor to Long at MHI.

Among Industry pros, the common noted concerns MHProNews hears include NOT going ‘outside’ of the Industry for a replacement this time for a ‘white knight’ to save the Industry.  Jim Collins’ corporate study, Good to Great, reminds us that 90% of the time, the right person is a ‘Level 5 Leader’ from within the ranks.  The Lee Iacocca’s of the world often ride out with a bust as big as the bang as they arrived.

That said, word has it that MHI plans to have someone in place before Thayer’s departure at the end of this month.  The leadership wants to stay inside the Industry too.  There may be no ‘search committee’ per se, just a desire to identify and install the right person in the right spot right now.

Another common concern heard is that MHI’s recently published priorities do not include an Industry turn around plan.  Perhaps ‘the right’ candidate will have something to say about that topic.  Industry Defense (protect) is important, but so is promotion (offense: scoring points in terms of rising, not falling, new home shipments).

To promote and protect, while offering education that is internal as well as external, these are the drill downs for all successful associations.

That’s the Masthead view – now writing from 6 miles up – where if you look carefully at the photo below, you can still spot a manufactured home community from this high in the sky. #
#

L. A. ‘Tony’ Kovach
MHProNews.com

 

Many have thoughtfully shared there feelings and reflections on Thayer Long’s departure as the President of the Manufactured Housing Institute (MHI) with us.  Those reflections below are followed by another key topic on Industry Professionals’ minds; namely, who and what’s next at MHI

First the Farewells to Thayer, in the order in which they were recieved:

“Thayer Long has done a fine job for MHI over the years and especially as he advanced to the president’s position.  He managed fiscal affairs with sound diligence and provided excellent leadership for the staff.  In addition Thayer represented the industry in a professional, knowledgeable way that reflected well on all of us.  We will miss his positive attitude and attentiveness to the membership.  At the same time we wish him well with his new opportunity and the best of success in everything he does.  Thayer will be with us for the rest of this month to help with a transition.  We have an excellent team of people at MHI headquarters who will continue to keep things running smoothly and who will respond to member’s needs in a prompt and efficient manner.”

- Joe Stegmayer, Chairman and CEO, Cavco Industries, MHI Chairman

 

When Mike O’Brien left MHI, Thayer stepped in and has done a very good job.  Under his oversight MHI cut expenses and relocated to smaller quarters.  Anytime I needed information on a federal issue, Thayer was always responsive and helpful.  I wish him well in all of his future endeavors.

- Nancy P. Geer, PHC, Executive Director, New York Housing Association

 

“I’ve very much enjoyed working with Thayer and wish him great success in this next phase of his career. Thayer and his team have firmly established MHI as our industry’s key representative in Washington, and with Lisa Brechtel now in place as the head of the National Communities Council, the industry and the NCC should be well positioned both to address future challenges and to capitalize on the many opportunities that lie ahead.”

- David Lentz, President and Chief Executive Officer of American Land Lease, and incoming Chairman of the National Communities Council (NCC)

 

“I hope Thayer’s successor works in partnership with the states as well as he did. He kept us informed and was accessible. He took an interest in how federal policy impacted the states.”

- Mark Dillard, Executive Director, South Carolina Manufactured Housing Institute

 

“It was truly a pleasure to work with Thayer. When you discussed a topic with Thayer you not only felt that he was listening, but that he understood the problem and would attempt to find a solution. We will miss working with him and wish him the best of success in his new venture.”

- Leigh J. Abrams, Chairman, Drew Industries

“Thayer has spent the last 3 years moving MHI as well as the entire industry in the right direction.  His understanding of housing issues will be missed but he has developed a staff that will do a great job with those same issues in his absence.”

- Nathan Smith, Owner, SSK Communities

 

“Thayer, from a state exec’s standpoint has been excellent to work with.  He respects our role and our advice.”

- Ross Kinzler, Executive Director, Wisconsin Housing Alliance

 

“Thayer has served MHI well during his time as president.  He came in during a difficult time and was able to provide stability and move MHI forward in a positive direction.  This was no small task.  MHI is a more focused and financially sound organization today due to Thayer’s hard work and leadership.”

- James R. Ayotte, CAE – Executive Director – Florida Manufactured Housing Association

 

“Thayer is very professional and was always willing to share his knowledge when questioned about national and local issues. He was always willing to assist those of us who served on the MHCC. I wish him well in his new endeavor. “

- Susan Brenton, Executive Director, AZ MHCA

We’ve covered previous comments from others regarding Thayer Long’s departure in the initial story we broke last week on our MHProNews.com  Daily Business News Blog that was linked above.

We here at MHProNews.com and MHMSM.com add our own best wishes to Thayer and and the MHI staff, of which we are pleased to be members.

Part Two – Where Does MHI Go From Here?

Now, where does MHI go from here?  Beyond what has been noted above, what does Thayer’s departure mean?  Who will be the interim or permanent successor to Long?  What style and experience will they bring?  Should it be an Industry business pro?  An association leader? An Industry outsider?  A DC insider?  All of these and other questions and thoughts have been shared with us by Industry professionals like yourself.

Let’s begin by noting that there are scores of potential candidates from inside our Industry.

However, many of the association or business pros who could do this job simply won’t be interested in moving to Washington or it suburbs, with it’s high cost of housing, etc.  Many who might be considered have business ties that do not put them in a position to rapidly shift gears to partners or trusted managers.  Some in associations will have commitments and ties that keep them from saying yes, even if they would wish to do so.

Those points said, there are names which have been floated as ‘possible’ candidates for Thayer Long’s soon to be vacant role.

The names below are by no means the only ones mentioned.  Some would doubtlessly prefer not to be mentioned at all, knowing that others at MHI’s leadership already know them well.  The sheer numbers of possible candidates precluded our being able to reach or name but a fraction of the possibilities.

Some of those named below did not say “yes, I’d go if the offer made sense.” But – very important – they also did not say “no.”  With those disclaimers and backdrop, here are some names that have been mentioned, alphabetically:

 

Jody Anderson, long time Texas retailer, respected Board member, with considerable experience successfully stepping into a key association leadership role during a transition phase prior to DJ Pendleton’s arrival at the TMHA.  Anderson has the support of others, including Lance Inderman – a very successful Texas retailer, TMHA board leader and co-owner of Athens Park Homes.  In a conversation with MHProNews, Anderson’s confidence, passion for the Industry and straight shooting ability to “sell” manufactured housing to legislators and regulators was self-evident.  Anderson has a direct, common sense approach and with his hands on experience, would be able to relate well with Industry professionals as well as association, political and regulatory personalities.

Jim Ayote is the respected executive director at the Florida Manufactured Housing Association has considerable experience at MHI already, and has served as the chair for MHEC – the Manufactured Housing Executives Committee. Ayote will be on the radar of those who favor experience in such roles and first hand knowledge of the players.  He has served in other state associations and has experience working with resident groups successfully.  Ayote’s state has been keen on promotion, which along with other background factors will be at play with this possibility.

 

Susan Brenton from AZ MHC Association has a strong association background beyond her experience representing and working with manufactured housing community owners and residents.  Brenton served for years as the chair on the Manufactured Housing Consensus Committee (MHCC), so she knows a broad cross section of Industry professionals, consumer interests, state and federal regulators.  Bretnon also has a working relationship with other state and community execs, MHI and MHARR.  Having fought and won tough personal as well as professional battles, and doing so with an upbeat attitude, Brenton’s “can do” spirit and solution orientation are evident to those who know her.

Doug Gorman has years of experience in MH manufacturing, as a long time award winning MHI member retailer, active on the Oklahoma board, with the Great Southwest Home Show in Tulsa and years of service on the Manufactured Housing Consensus Committee (MHCC). Gorman has a long string of endorsement letters for the MH Hall of Fame that includes politicians and a virtual who’s who of Industry leaders like Kevin Clayton, Joe Stegmayer, Oklahoma Governor Mary Fallin and many others. We’ve covered in a recent Industry Voices Guest Blog item Gorman’s personal lobbying efforts with Oklahoma congressman and the Senate regarding  the repeal/reform of Dodd-Frank.

Rick Rand has decades of experience in developing an award winning community, operating or owning both large and small portfolio operations, with financing issues and home retailing. His high occupancy rates and low delinquencies at a time when so many others are struggling in his region should make Rand a go-to guy on manufactured housing community challenges.  Like Brenton, Rand has faced and overcome tough personal and professional challenges, and has landed on his feet.  He has served as MHI’s PAC Chair, and worked on many MHI task forces, including their national image campaign.  Rand has lobbied state and federal officials and knows many of the players on the field on a first name basis.

Other Factors

Some of these candidates have had experience working with Danny Ghorbani at MHARR, which could be a plus as independent builder/producer-focused Manufactured Housing Association for Regulatory Reform continues it’s recent trajectory of working more closely with MHI, since Chairman John Bostick has come onto their scene and made his positive presence felt.

Unlike a political election, where you will see and hear the names of the top candidates, and go through primaries and election cycles, the process for MHI is more akin to the hiring procedures of a corporation.  Some highly qualifies candidates will not be named above, for reasons already noted and thus the interim or final selection for the executive who leads MHI may not come from those named.

Questions we should be asking candidates might include:

- are you a consensus builder?

- are you able to work with a broad cross section of people and interests successfully?

- how quickly are you able to respond if the call is made?

- would you be willing to serve on an interim as well as a long term basis?

- what is your vision for moving the manufactured housing industry ahead in Washington and in the American housing marketplace?

- can you successfully protect and promote manufactured housing in these tough times, by leveraging relationships and resources to the maximum possible?

MHI has published their ‘focus items,’ so the views of prospective interim or permanent leaders of MHI on how those items might be best approached will also be noteworthy.   Industry pros coast to coast are keenly interested in how MHI will approach the subject of Industry promotion, turn around and growth.

Readers may want to contact MHI directly with their recommendations, and are welcome to post comments or send private messages to tony@MHMSM.com, in an Industry Voices guest blog column  or via iReportMHNewsTips@MHMSM.com.  An appropriate Subject Line in your email will help us better respond, thank you.

We will continue to keep Industry readers updated as events regarding these developments at MHI move ahead. # #

L. A. ‘Tony’ Kovach
MHProNews.com

 

Those who follow this blog know that we have been advocating that Thayer and Danny get their heads together as the respective Presidents of MHI and MHARR with the goal of advancing our Industry’s common issues.  MHARR and MHI have done so before, on topics such as the GSEs and the Duty to Serve or MHIA 2000.  Why not do so again?  While our Industry has collective values in the hundreds of billions of dollars, compared to other industries, experts tell us that manufactured housing is presently ‘too small’ to get the job done on Capitol Hill without the proper level of collaboration.

That’s my view anyway, and judging from readers calls, messages and comments it is one broadly shared.

It has also long been our policy to advocate on behalf of state and national associations.  We belong because we think it is wise to do so.  We attend state association meetings, are scheduled to attend more later this year (including some as a speaker/presenter) and are often at MHI’s national meetings too.

Business professionals in these challenging times are stronger together than divided, and associations are a good place to get involved to get positive changes done.

That said, there are those who see it differently.

We believe in the wisdom of the free press.  There is value to having a robust discussion on topics, so the truth can be revealed.  This was part of the wisdom of the founding fathers in establishing the Bill of Rights which safeguarded not only freedom of speech, but of a free press.

 

 

So it has been our policy here at MHMSM.com (soon to be rebranded MHProNews.com) to share a variety of perspectives on topics of Industry interest.

Marty Lavin has a take that is all his own.   I don’t know of any two people in our Industry who agree on everything, and that would go for Marty and I as well.  That said, I respect Marty and hope you will find his commentary on MHARR and MHI of interest.

If you have a take on the subject of MHI, MHARR or any other industry theme that you want to publish as a feature article or as an Industry Voices Guest Blog post, please feel free to submit them to me with Industry Voices in the subject line at tony@mhmsm.com.

I also want to take a moment to thank those who continue to send us news and other tips!  Join those who share their tips with us by emailing your tips to: iReportMHNewsTips@MHMSM.com

We have a busy week ahead, and plenty of Daily Business News and the new August feature articles for you to catch up on.  MHARR and MHI News are also hear for you 24.7.365.

One of my favorite Marty Lavin quotes are as follows:

“Forget what people are saying, instead, watch what is happening.”

– Marty Lavin

Good advice.

We are your largest and most popular one stop shop for Industry News, Tips and Views you can use.

We provide, you decide.

May the Industry discussion continue!  May we tackle problems with a solution orientation and move towards Industry growth again!# #

 

 

 

 

 

Lobbyists know the art of politics is in part about compromise.  Even when strong positions are taken in public, behind the scenes, deals can get done.

A key part of what MHI and MHARR does is lobbying.  So do their leaders want to practice their arts with each other?

What many of us want to see is a photo of Danny and Thayer having lunch with each other.  They could be talking about golf, the weather or…Say! How about this idea!  Why not a photo of the two of them talking about how each can support the other on items of importance to your respective members?

Let me pose this question.  Are we making progress yet regarding the relationship between the two national manufactured housing trade associations?

The answer?

Perhaps. A solid ‘maybe.’

Last Friday, Danny Ghorbani called MHProNews.com to make an official statement.  You can see that statement linked in our popular Daily Business News right here.  There was even more said unofficially.  Time will tell how some of that may roll out.

While proof is always in the doing, the statement itself gives reason to think there is  progress from the MHARR camp’s outreach.

So what about Thayer Long and MHI?

As an MHI member, MHMSM.com asked Thayer that question last Friday.  While no official, on the record statement was made, an interesting conversation took place.

Let’s see if MHI and MHARR presidents ‘doing lunch’ happens…

Beyond Doing Lunch.  Doing the Industry’s necessary business.

Most of us won’t get too excited until we see real actions on both sides, and not for a just a meal – or for day a two – but for a sustained period of time.

MHI’s manufacturing base produces roughly 3 times what MHARR’s manufacturers do.  Some observers speculate that MHI is less motivated to actively lobby on behalf of the full and proper implementation of the Manufactured Housing Improvement Act of 2000 (MHIA 2000), because larger plants are more able to absorb the costs of regulations, inspections, lobbying, etc.

In fact, some industry observers believe that this is the very raison d’être for MHARR.

Full implementation of MHIA 2000 is not just a MHARR or MHI issue.  It is an issue for states, it is an issue for retailers and communities, as well as our consumers.  So it is one that should strike home for all manufactured housing professionals. It is as logical for MHI to support MHARR on this, as it is for MHARR to support MHI on issues such as reforms of the Dodd-Frank or SAFE Act.

For whatever reasons, the Olive Branch is extended.

It sounds like MHARR has held out an olive branch to MHI.  So like good lobbyists, this sounds like a good time for MHI to lend MHARR a hand on regulatory issues.

Thayer, Danny, please do keep us informed about your lunch plans.

Let’s all keep an eye on that, shall we?

Because there is more than just local, state or national issues looming…

We Are No Longer Operating in a Vacuum

Currently, about 98% of our growing audience is in the U.S. and Canada.  That means that 2% is from overseas.  Some of those from other nations are interested in investing.  Others have eyes on our market.

But the most recent should give us all pause.

Are the Chinese Coming to North American housing markets?

For some time, we’ve had companies from different parts of the world contacting us about their products and services.

A Chinese company with some pretty American looking marketing materials has contacted us. Some of their floor plans look similar to HUD Code single-sections.  Others look like HUD Code multi-sectionals.  Some of their plans are for multi-story housing.

We already carried a story last week in the Daily Business News about a Chinese factory builders targeting our market.  We’ve carried an earlier story about a Chinese modular arriving in n New York.

Will we have more coming soon?

Chinese producers state they will gladly ship them in containers to the U.S., Canada or other parts of the world.

Nature abhors a vacuum.  If your or I, some company, group or association doesn’t fill a need, someone else in time will.

America is the birth-place of factory built housing.  Let’s not surrender our leadership in this arena.  Let’s not wake up one day and find out that neither MHI nor MHARR will have factories, because overseas producers have launched a marketing invasion of our shores with their products and services.

We have good reasons to pull together now on behalf of our great industry.  Some are political.  Some have to do with world markets.

One of our readers made the recent comment that for a long time, Japanese cars were not taken very seriously by U.S. Automakers.  But Japanese quality improved, and caught American auto makers napping.  We all know that Detroit never fully recovered from that event.

Let’s not let something like that happen to our already depressed manufactured housing industry.

This is one more reason for us to strive for an Industry image and marketing campaign.

Learn more about Starting the MH Image and Marketing campaign effort.  Because we will either define ourselves, or be defined by others.

Thanks for making us your #1 source for factory built housing news. # #

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

It would be nice if we could share a manufactured housing news headline at MHMSM.com that read like this:

MHI and MHARR Cooperate on Dodd-Frank with their Capitol Hill Resources

We can’t give you that headline, which is the motivation for this column today.  But we do need a truce between the Manufactured Housing Institute (MHI) and Manufactured Housing Association for Regulatory Reform (MHARR) on key issues, with Dodd-Frank being one of them.

Let me be clear from the outset: both national associations would state privately and publicly, that they want to see a modification of Dodd-Frank.  But one is working at it, and another is busy with other matters.

Let me also be clear, this is not a call for unity between the two organizations.  Their leaders would say each exists for its own reasons and constituencies.

So can their be cooperation between the two national associations?  Should there be?

Industry insiders tell us that implementation of Dodd-Frank without amendments will cost the HUD Code manufactured housing Industry another 20,000 annual new home shipments.  How many more factories would close as a result of the the loss of 20,000 shipments?

Beyond the loss of 20,000 new HUD Code manufactured home shipments – and 20,000 manufacturing jobs with them – potentially tens of thousands of pre-owned home sales would also be lost.  Why?  Because an unamended Dodd-Frank will make lending on them unprofitable.

So how many more retailers, communities, finance, insurance and other suppliers will that projected sales drop impact?  How many millions of manufactured home owners will suffer a loss of value as a result of Dodd-Frank?

This is the backdrop to the issue: can MHI and MHARR bridge the gap on select issues and work together for the good of millions of manufactured home owners and the Industry at large?

We will look at some recent history to understand the challenges, and also to encourage the pursuit of such an effort.

I. Reforming Dodd-Frank: a challenge in DC today

It is no secret that the Manufactured Housing Institute (MHI) is fighting an up Capitol Hill battle to get a modification for Dodd-Frank accomplished before rule making goes into effect.  With the House held by Republicans, and the Senate and White House held by Democrats, getting anything done on a bi-partisan basis this year is not easy.  All the more reason for both MHARR and MHI to work together.

The Consumer Finance Protection Bureau (CFPB) will officially open on July 21st, 2011.  But no one knows what date the rules under Dodd-Frank that will impact our industry will take effect.  Some hope that process will take 18-30 months.  But what if rule making gets published and implemented more rapidly?  Can we afford to see a new drop in shipment and sales levels?

Clearly not.  That is why the Industry’s best possible effort needs to begin asap and be maintained until the needed changes become a reality.

This is why a truce between MHI and MHARR could be very useful in Dodd-Frank, or other issue, such as the MHCC.  Each national association has much to protect and gain from such an effort.

Such an effort could save jobs, save businesses and protect manufactured home owners in the process from the unintended consequences of Dodd-Frank.

II. Recent history on MHI and MHARR relations.  Facts and Challenges

The following outline are the perceptions of a number of industry voices who shared their insights as noted below.   They are part of the ‘news and tips’ we get that can keep our readers better informed.  These insights come from industry members, government officials, associations and others who are in the know.

Regrettably such talk is rarely shared in public forums.  Let’s give voice to those perceptions in the bullet points below.  That will be followed by an analysis.

Some of these items have not been published before, some are better known.  Let’s begin with no particular order of importance:

MHARR on MHI:

• Danny Ghorbani and MHARR have not made it a secret that their “production” and “post-production” ideal for national associations is a way to split MHI up.  If that occurred, that would effectively kill the MHI that we know today.

• Under Danny’s concept, MH Communities and Retailers (presumably finance, insurance, etc.) would have their own new ‘post-production’ national association.  Then manufacturers and component suppliers would have their ‘production’ national association.

• MHARR often blasts MHI for this or that perceived failure via their news releases and opinion columns.  That goes back to his arguments for the break up of MHI into post-production and other producers then could join MHI.

• MHARR leaders sincerely believe that without their efforts in the 80s and since, HUD Code housing would have vanished long ago.

MHI members on MHI and MHARR:

• There are those who support Danny’s idea of a remodeling of MHI – at least in theory – among MHI’s own members.  Doug Gorman has publicly said (paraphrasing to save time) ‘retailers would be better off with their own association, but we have MHI and we have to make the best of it.’ If Doug were any other retailer, maybe that statement would not be such a big deal.  But he is the most award winning retailer that MHI has as a member.

• Doug Gorman is also a voice that says, ‘The Industry needs Danny Ghorbani.’  Doug has served for a long time on the Manufactured Housing Consensus Committee (MHCC).  So Doug is very knowledgeable about issues from manufacturing, regulatory and retail perspectives.  He is a voice that public officials respect, who generously donates time for state and national efforts.  Doug has the respect of many of his Industry peers.

• George Allen has essentially been a voice in the MHI ranks that questions MHARR, or of late, has proposed in writing a means of doing MHARR in via MHI manufacturers buying out MHARR manufacturers.

• Some state execs or MHCC members see periodic value to Danny Ghorbani’s insights on production and HUD Code related issues.  But not many will publicly agree with Danny’s method or approach of dealing with HUD or MHI.

• State execs are not always comfortable with the level of progress made by MHI on key issues, be it Dodd-Frank, SAFE, etc.  Some are down-right worried for the Industry’s future.  But they at times feel similarly to Doug Gorman’s comments, they see MHI as the only game in town for them.

Rumblings about MHARR from MHI and MHARR:

• Even among MHARR members, there are those who privately have their questions and concerns about Danny Ghorbani’s often strongly worded emailed messages.

• Some appreciate the more factual and toned down approach that occasionally comes from MHARR, even if the realities or thoughts behind the messages are unchanged.

• Thayer Long has generally been milder in his approach towards MHARR than MHARR towards MHI.  But Thayer has at times responded.  Such was the case recently, when Thayer  sounded off exclusively with MHMSM.com after the IBISWorld report, or on the HUD/fire-sprinkler standards topic, etc.

• At MHI’s annual meeting last year, one leader publicly described Danny Ghorbani as the ‘elephant in the room’ who has to be dealt with.

Recent efforts for unity on key issues in DC:

• Partially as a response to such division at the national level, the Arkansas Manufactured Housing Association’s Executive Director, J. D. Harper, attempted last year an initiative that hoped to bring a new lobbying voice to Washington DC, to be given birth from the state associations level.  The concept was designed to bridge the gap on issues like SAFE and Dodd-Frank.

• There was a private meeting last summer between 3 CEOs for MHARR manufacturers, and 3 CEOs of MHI manufacturers. There was early hope that this would result in some sort of mutual efforts on topics such as Dodd-Frank.  But for a variety of reasons, those secret talks fell apart.

• It should be noted that the goal of those secret MHI-MHARR talks was not ‘unity’ per se, but rather an attempt to bridge the gap on key issues of mutual concern, such as Dodd-Frank.

Elected officials and Regulators:

• It should also be noted that regulatory personalities such as Bill Matchneer at HUD (who along with others who are with the HUD Code program will soon be at CFPB), have stated to MHMSM.com in writing that working with MHI is easier than working with MHARR.

• Off the record comments from HUD officials and congressional elected officials often pose the concern: who do we listen to between these two national organizations?  Are these groups as professional in their lobbying approach as they could be?

• Imagine for a few moments being a HUD official; or a congressmen or senator whose staff says MHARR wants one thing, MHI another.  How can that help our Industry at such challenging times as these?

A new association?

• There was a brief effort last year that MHMSM.com reported on that was for a time supported by George Allen and others.  This was the so-called MHIdea promoted by retailer Dick Moore and his associate Bob Crawford.  That initiative rapidly vanished, although they maintain a website and a Linkedin page.

• One of the concerns among state associations regarding JD Harper’s concept was the fear that what would arise would be a ‘third’ national voice.  JD himself stated such was NOT his goal for the regulatory lobbying effort.  As a footnote, that effort begun by JD was co-opted by MHI who hired the lobbyist tasked with working on regulatory issues (such as the SAFE Act or Dodd-Frank).

Who has done what?  What are the styles and results?

• General comments about the two styles among industry pros runs like this: Thayer is often seen as having more of a consensus building style, but some wonder if he gives too much in the process.  Thayer and MHI put up their ‘score card’ annually.  He says other associations should provide an annual ‘score card’ on what was accomplished every year too.

• Danny Ghorbani’s style is seen as more of a letter of the law as I see it and you (gov’t bureaucrats) better jump in line. Needless to say, this does not sit well with regulators, but it does play better with others.  Danny and his associates would say, they lay out the facts and want those facts and the law respected.   Why compromise on the law as it was written and intended?

• MHARR blames MHI for failure to advance in DC.

• MHI via Thayer Long has publicly questioned what Danny has actually accomplished in recent years, beyond finger pointing and blaming MHI.

• There is no solid unity on issues such as the MHCC and HUD’s moves to ‘neuter’ the MHCC.  Views on issues such as requirements for fire sprinklers vary as well.

• It should be noted that both groups believe in the need to protect chattel financing. Danny states he does support MHI’s efforts on Dodd-Frank.

• State execs as a rule line up behind MHI, which is understandable, as they have a real voice in that association.

• There has not been so much as a lunch between Danny and Thayer for some time, although one of those two parties would likely agree to do lunch in a minute.

• George Allen in his published musings on the topic tags MHARR for lack of engagement on community or other ‘post-production’ related issues.  Danny’s reply to that is that they get not one penny from communities or retailers, etc.  Nor does MHARR want it, Danny says.  Danny says they only reason they have engaged in the post-production issue of finance at all is that  MHARR thinks it has been vitally necessary to the survival of the industry.

• There are numerous voices that sees the value to MHI, to meetings like the MHI Congress, legislative sessions, etc. that are there to inform, education, inspire and hopefully encourage grass roots support.

• Certainly, MHI members vote with their feet and wallets, just as MHARR members do.

The above is not comprehensive.

For example, in the above, I’ve not gotten into conspiracy theories that George Allen has periodically raised.  I’m just outlining facts known to me personally or from others in various in Industry circles.

Some observations:

III. Brief Analysis:

1. Neither MHI nor MHARR wants to be done in. Talk of destroying the other association by whatever means can only cause each side to be less willing to work with the other.

2. Free entertainment? While this is lack of cooperation between MHI and MHARR is ‘entertaining’ in a fashion, this arguably does neither group nor their members any good. This entertainment isn’t free at all, it is arguably costly to us all.

3. A new national association. The idea of trying to create a new national association in these challenged times, or re-align the existing ones, is problematic at best.  Time and money are key challenges, even if there were widespread support for the concept.  I’m reminded that there are individuals in this Industry who could personally fund such a new organization with their pocket change.  However, starting a new national association is not the same as such a hypothetical group being instantly effective in lobbying efforts.

4. Finger pointing does no one any good.   Who did what to whom first, or who failed on what, when and how is only useful to learn from.  Finger pointing doesn’t change the reality of where our Industry stands today.

5. I recall George Allen’s idea last year of having an MHI and MHARR ‘debate’ at his International Networking Round Table.  That debate did not take place.  It is an interesting idea. It could bring quite a crowd to say a webinar, for people to hear the issues ‘debated’ between the two organizations.  But I’m not sure it would help bring the resolution that people would want or we as an Industry certainly need.

What baffles me are some logical ways that each side could see its way clear to helping the other.  These are two no-brainers:

A. Where is the effective difference between MHARR working on Capitol Hill for reforms that would allow the GSEs or FHA to make more chattel loans, and for MHARR working with MHI on reforming Dodd-Frank?  Aren’t both finance related?  Wouldn’t protecting current financing and sales be as important have the same logic as being involved in finance?

B. Doesn’t MHI’s leadership see how it could support MHARR on matters that impact their constituents?  Can’t MHARR provide MHI with a laundry list of its hottest topics? Can’t MHI say, MHARR please help us on the SAFE Act and Dodd-Frank, etc.?

Key MHARR and MHI Leaders should meet.

What should take place is that the chairmen and key members of MHARR and MHI would meet in private again and make peace.  Let them carve out the areas they can agree to support each others on.  Then, let them agree on which topics not to step on each other’s toes.

Then let that MHARR-MHI committee leaders give the marching orders to their respective association executives.

Needless to say, there has to be give and take for such a ‘coming together’ on key topics to occur.

Can it be done?  Absolutely.  This is no day dream, because it HAS happened before!

This type of agreement was achieved during the run up to the passage of the Manufactured Housing Improvement Act of 2000.  The need is no less great today.  Indeed arguably, the need is greater.

What is certain is that just as no person is perfect, the same is true for an organization or association.  If one said claims perfection, they lose credibility instantly.

Let’s close with the same point we opened with.

It would be nice if we could share a manufactured housing news headline with you here at MHMSM.com that read like this:

MHI and MHARR Cooperate on Dodd-Frank with their Capitol Hill Resources.

Let me encourage you to contact the independent MHARR manufacturers you work with or MHARR’s Chairman, John Bostick of Sunshine Homes.

Then let me encourage you to contact Joe Stegmayer at Cavco, who is MHI’s Chairman.  Kevin Clayton at Clayton Homes and Woody Bell from Palm Harbor where also part of the meeting last summer with the 3 MHARR CEOs.

Certainly, you can address Danny Ghorbani or Thayer Long directly as well in support of the truce and collaboration idea.

If our industry can pull together a truce on the national level on enough unity on key topics, the odds of averting a further melt-down over Dodd-Frank’s regulations goes up.  Other issues of importance, could also be more successfully addressed.

All that can start with a simple email or phone call to your association and/or your representatives to encourage a much needed ‘detente’ between the two national trade organizations.

Your posted comments, calls or emails on this or other topics are welcome.  Thank you for all of those who provided tips and insights that made this Masthead blog post possible. # #