Possible sources of liability and current litigation in manufactured housing will be explored further below. But first, exploring some data will shed light on the issues that follow. According to the National Association of Home Builders (NAHB): “Homebuilder sentiment is now declining rapidly in the US after a 1H23 bounce, manufactured by historically low existing home inventory.”
National Association of Home Builders Housing Market Index fell more than expected in September to 45 (Exp. 50, Prev. 50).
Homebuilder sentiment is now declining rapidly in the US after a 1H23 bounce, manufactured by historically low existing home inventory.
A reading below… pic.twitter.com/jLr4fsdkNx
— Macro Dose (@macro_dose) September 18, 2023
In a case that could have significant repercussions for the housing industry, the U.S. Supreme Court on Oct. 3 heard oral arguments in Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America. https://t.co/7ECof4onZh
— NAHB 🏠 (@NAHBhome) October 4, 2023
The Department of Energy has opened applications for $400 million in grants to states to adopt the 2021 International Energy Conservation Code (IECC) for new homes, as appropriated in the Inflation Reduction Act. https://t.co/IU5QQscdpL
— NAHB 🏠 (@NAHBhome) September 29, 2023
The cost of land lots for building single-family homes continued to rise in 2022, albeit at a slower pace than in inflation over the course of last year. Lot values also varied widely from region to region in the U.S. https://t.co/pipA8ekzC4
— NAHB 🏠 (@NAHBhome) September 28, 2023
Sales of new single‐family homes dropped 8.7% in August to an annual rate of 675,000, 5.8% higher than in August 2022. The median sales price of new homes sold in August 2023 was $430,300, down from $440,300 a year ago. #realestate #economy pic.twitter.com/3ftrUsl42U
— NAHB 🏠 (@NAHBhome) September 26, 2023
Meanwhile the National Association of Realtors (NAR) had the following shares via “X” – formerly known as Twitter.
NAR Chief Economist Lawrence Yun reacts to the latest jobs report. pic.twitter.com/8j06iedmHQ
— National Association of REALTORS® (@nardotrealtor) October 6, 2023
Pending home sales slid 7.1% in August.
“Mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers,” Lawrence Yun, NAR chief economist. https://t.co/n6ln5kjnHo
— National Association of REALTORS® (@nardotrealtor) September 28, 2023
The median existing-home price for all housing types in August was $407,100, an increase of 3.9% from August 2022. Learn more: https://t.co/PPTSO73YnN pic.twitter.com/0AkVDhi8v2
— National Association of REALTORS® (@nardotrealtor) September 24, 2023
Existing-home sales retreated 0.7% in August. Among the four major U.S. regions, sales improved in the Midwest, were unchanged in the Northeast, and slipped in the South and West. https://t.co/Pfc90fncug
— National Association of REALTORS® (@nardotrealtor) September 21, 2023
What about the word from the Manufactured Housing Institute (MHI)? Beyond pitches for their next meetings, not much as the folks who office in Arlington, VA are on a self-declared information hiatus following their recent meeting.
Per MHI: “There will be no Federated States Newsletter on October 2 due to MHI’s Annual Meeting in Palm Springs.” Must be nice to have days of hobnobbing at a resort without having to produce the kind of ongoing reports and updates. Meanwhile, as evidenced by the X-posts above, the NAHB and NAR routinely crank out data and information year-round. NAR and NAHB do so not only their members, but also for the broader public. Comparisons to other associations helps shed light on what little, if anything useful to the growth (instead of shrinkage) of manufactured home sales and production is occurring. But don’t forget to make those dues payments on time to MHI! That’s what keeps their profitable meetings, cushy trips, their pensions, bonuses, healthy pay, and other fringe benefits for supporting consolidators coming! For more on that see the item below plus the reports from the week in review on MHLivingNews and MHProNews.
Fortunately for manufactured housing pros, the national Manufactured Housing Association for Regulatory Reform (MHARR), while significantly smaller in staff and budget than MHI, continues to publish information that is timely and relevant.
Severe Manufactured Home Production Decline Continues in August 2023
Washington, D.C., October 5, 2023 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured housing industry year-over-year production declined again in August 2023. Just-released statistics indicate that HUD Code manufacturers produced 8,670 new homes in August 2023, a 19.1% decrease from the 10,722 new HUD Code homes produced in August 2022. Cumulative production for 2023 is now 58,692 homes, a 27% decrease from the 80,431 homes produced over the same period during 2022.
In the midst of an ongoing affordable housing crisis, with housing costs reaching or nearing all-time highs, inherently affordable manufactured housing continues to significantly underperform, with production levels for 2023 far below the industry’s potential and even the diminished annual production averages of the past decade-plus. As MHARR has explained and documented, this decline continues to be driven by key failures within the industry’s post-production sector including, most significantly, discriminatory zoning exclusion (tolerated by HUD) and the stubborn refusal of Fannie Mae and Freddie Mac to securitize chattel loans for nearly 80% of the industry’s most affordable mainstream manufactured homes. Unless and until someone within the industry can fully explain any and all other possible reasons for this decline, which has left the industry in its current downward spiral, the Manufactured Housing Institute, as the only national association which collects representation dues from the post-production sector of the industry, has a duty and obligation to press HUD as well as Fannie Mae and Freddie Mac to fully comply with the relevant existing laws (i.e., the 2000 reform law and the Duty to Serve law) going forward.
The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.- based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. ##
Speaking of MHARR, flash back to this remark from former MHI VP and MHARR founding President and CEO Danny Ghorbani.
Ghorbani’s point is one that MHProNews has repeatedly made by pointing out that MHI is oddly ‘teaming up’ in ‘partnerships’ with conventional building associations. MHProNews asked an MHI board member recently: what have MHI’s alliances with conventional housing trade groups yielded in the way of a measurable benefit for manufactured housing? After a short silence, ‘nothing I can think of.’
MHI won’t answer that sort of question from MHProNews. Others in the MHVille trade media and bloggers – who routinely give MHI cover and support – don’t usually ask them questions that may put them in a good light.
This poser to Bing’s AI Chat yielded the response below.
> “What has the Manufactured Housing Institute or MHI linked bloggers and trade media said their alliances with conventional housing trade groups has yielded that benefits manufactured housing?”
- Increased awareness: The MHI has been able to raise awareness about manufactured housing and its benefits among policymakers and the general public 1.
- Improved regulations: The MHI has been able to work with conventional housing trade groups to improve regulations that affect the manufactured housing industry 1.
- Increased financing options: The MHI has been able to work with conventional housing trade groups to increase financing options for manufactured homes 1.
- Improved quality: The MHI has been able to work with conventional housing trade groups to improve the quality of manufactured homes 1.
However, there have been complaints of corrupt and illegal practices in the manufactured housing industry, including those against Clayton Homes, 21st Mortgage Corporation, and other organizations and specific individuals associated with those firms 3. It is worth noting that MHI-aligned bloggers and publishers are routinely mute on such concerns 3.
Learn more:
In a follow up to Bing’s AI Chat, MHProNews asked:
> “If awareness, financing, and regulations are improving for manufactured housing, then why did Cavco Industries CEO William “Bill” Boor complain to Congress on 7.14.2023 that manufactured housing is at a critical crossroads, and that lack of more affordable financing, regulatory barriers including zoning, has resulted in a 30 percent decline in manufactured home industry shipments in 2023?”
It is worth noting that zoning restrictions can take several forms, including the complete exclusion of manufactured homes or the exclusion of manufactured homes from single-family residential zones. Other zoning restrictions impose minimum lot-size requirements specific to manufactured homes, which force these homes onto more rural, less dense areas 3 4.
Boor’s testimony highlights the need for continued efforts to improve financing options and regulations for manufactured housing. It is important to note that while progress has been made, there is still much work to be done to ensure that manufactured housing is accessible and affordable for all who need it.
Learn more:
So, what MHARR’s President and CEO Mark Weiss, J.D., aptly called an “illusion of motion” is apparently underway in MHVille.
The contradiction in the first response by Bing and the second was possible because MHProNews stays INFORMED on the issues, statements, and trends, past and present. When an apparently false or misleading statement is made, MHProNews can and routinely has spotted and highlighted such disconnects so manufactured housing professionals, investors, shareholders, stakeholders, public officials and taxpayers can benefit from the insights. MHProNews has also repeatedly asked MHI leaders and their outside attorneys to offer any needed corrections of the record developed by MHProNews. They have been silent on the record in 2023, and in some previous years too.
To further illustrate the points made herein and in recent MHProNews/MHLivingNews reports for the week in review below, yet another follow-up question was asked of Bing’s AI Chat:
> “I’m sorry, but some of what you said is contradictory. If MHI has said that regulations and financing are improving, then why did then MHI Vice Chairman Bill Boor say they need help from Congress to get regulators to act on existing laws that are not being properly enforced? And if regulations and parity in financing with conventional housing are not being properly enforced by federal officials, what specifically has MHI’s allies in mainstream housing trade associations done for manufactured housing in 2023?”
Highlighting in what follows is added by MHProNews for emphasis.
Regarding your question about what MHI’s allies in mainstream housing trade associations have done for manufactured housing in 2023, I could not find any specific information on this topic in my search results. However, it is worth noting that MHI has formed alliances with several conventional housing trade groups to improve regulations and financing for manufactured housing 3. These alliances have yielded several benefits for manufactured housing, including increased awareness, improved regulations, increased financing options, and improved quality 3.
It is important to note that while progress has been made, there is still much work to be done to ensure that manufactured housing is accessible and affordable for all who need it. The challenges facing the industry are complex and multifaceted, and will require continued efforts from policymakers, industry leaders, and other stakeholders to overcome.
Learn more:
1. manufacturedhousing.org 2. manufacturedhomepronews.com 3. bing.com 4. multifamily.fanniemae.com 5. hud.gov 6. sf.freddiemac.com 7. mrsc.org 8. congress.gov 9. hud.gov 10. hcd.ca.gov”
So, one of the key lines from Bing above speaks volumes: “Regarding your question about what MHI’s allies in mainstream housing trade associations have done for manufactured housing in 2023, I could not find any specific information on this topic in my search results.”
Thus, there is an apparent contradiction between MHI’s claims and Bill Boor’s remarks.
Furthermore, there is no specific information that Bing could find that supports MHI’s nebulous claims about awareness, fewer regulatory barriers, and more financing.
Indeed, there are those who express concerns that manufactured home lending is about to contract again.
The facts from NAHB, NAR, and MHARR paint a picture of conventional housing, which is far more costly than HUD Code manufactured homes, dramatically outperforming inherently more affordable manufactured homes. If MHI performance is measured by hard facts like production and shipment levels, it is clearly failing to produce results that measure up to its boastful claims.
While MHProNews has demonstrated the weaknesses in Bing’s AI chat, it also has certain advantages – in our experience thus far – over Google’s basic search. That advantage is demonstrated above and below. Namely a search of the internet is done by Bing’s AI, looking for information that is asked. Responses are provided, which if contradictory insights are known, can be put to Bing in a follow up question. The follow up above freely acknowledged the apparent contradiction. “You are correct…” “there seems to be a contradiction between the MHI’s claims and the testimony of its Vice Chairman, Bill Boor.”
That opens up an array of possible legal concerns.
Boor is the head of a publicly traded company, Cavco Industries. Boor is not supposed to give information in public that may be materially incorrect.
To demonstrate and illustrate that, consider this MHProNews follow up to Bing’s AI Chat function:
> “Let’s focus for a moment on Bill Boor who is the head of Cavco Industries, a publicly traded company. Under SEC regulations, aren’t remarks by Boor supposed to be materially correct at the time they were made? If materially incorrect information is given what are the possible regulatory or legal issues that may arise from such material errors?”
You are correct that Bill Boor is the CEO of Cavco Industries, a publicly traded company. Under SEC regulations, companies are required to provide accurate and complete information to investors and other stakeholders 1. This includes ensuring that any statements made by company executives, such as Bill Boor, are materially correct at the time they are made 1.
If materially incorrect information is given, there can be several regulatory or legal issues that may arise. For example, the SEC may investigate the company for securities fraud or other violations of securities laws 1. The company may also face legal action from investors who suffered losses as a result of the materially incorrect information 1.
It is important to note that these are general guidelines and that the specific regulatory or legal issues that may arise depend on the nature and severity of the materially incorrect information provided. If you have any further questions about this topic, please let me know.
Learn more:
Newcomers should be aware, as detail-minded and longer-term readers of MHProNews already know, that Cavco Industries only recently emerged from under the cloud of an SEC suit.
Another follow up may prove eye-opening to detail-minded readers.
> “Bing, you linked a post on MHVillage and a more detailed report on ManufacturedHomeProNews.com for information on Boor’s testimony to Congress. Didn’t ManufacturedHomeProNews.com provide more details and the underlying testimony by Boor?”
I apologize for any confusion my previous response may have caused. Please let me know if you have any further questions.
Learn more:
MHProNews inquiry:
> “Bing, you are polite. Apology accepted, thanks. MHVillage’s MHInsider are part of publicly traded Equity LifeStyle Properties or ELS for short. ELS and Cavco each have a board member on the MHI executive committee. As a publicly traded firm isn’t information provided by ELS and its subsidiaries also supposed to be materially correct at the time they are issued, per SEC and other federal regulations?
Regarding your question about ELS and its subsidiaries, I could not find any specific information on this topic in my search results. However, it is worth noting that publicly traded firms are required to comply with SEC regulations and other federal regulations to ensure that the information they provide is materially correct at the time it is issued 12. Failure to comply with these regulations can result in regulatory or legal issues, including investigations by the SEC and legal action from investors who suffered losses as a result of materially incorrect information 1.
It is important to note that these are general guidelines and that the specific regulatory or legal issues that may arise depend on the nature and severity of the materially incorrect information provided. If you have any further questions about this topic, please let me know.
> “Is there any known evidence from trade publications or other sources that publicly traded MHI members have quoted MHInsider in ways that may not be materially correct?”
While I could not find any specific information on whether publicly traded MHI members have quoted MHInsider in ways that may not be materially correct, the article suggests that there may be issues with the accuracy and reliability of information provided by MHInsider and its parent company 1.
It is important to note that these are general observations based on one article, and that further research would be needed to determine whether there are any specific instances of publicly traded MHI members quoting MHInsider in ways that may not be materially correct. If you have any further questions about this topic, please let me know.
Learn more:
I also found an article on Multifamily Executive that discusses the potential for manufactured housing to help address the nation’s affordable housing crisis 2. The article notes that while the manufactured housing industry has the potential to increase the nation’s housing supply, it has been underperforming in recent years 2.
Another article on ManufacturedHomeProNews.com reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured housing industry year-over-year production has declined again in April 2023 3.
While I could not find any specific information on other sources beyond MHARR, MHProNews, or MHLivingNews that have expressed concerns about the manufactured housing industry’s underperformance, these articles suggest that there are ongoing challenges facing the industry. It is important to note that these are general observations based on a few articles, and that further research would be needed to determine whether there are any other sources expressing similar concerns. If you have any further questions about this topic, please let me know.
Learn more:
While I could not find any specific information on whether ELS should exercise restraint on MHVillage and MHInsider for correcting errors and avoiding mistakes in the future, it is worth noting that publicly traded firms are required to provide accurate and complete information to investors and other stakeholders under SEC regulations 12. This includes ensuring that any statements made by company executives, such as Bill Boor, are materially correct at the time they are made 1.
If materially incorrect information is given, there can be several regulatory or legal issues that may arise. For example, the SEC may investigate the company for securities fraud or other violations of securities laws 1. The company may also face legal action from investors who suffered losses as a result of the materially incorrect information 1.
It is important to note that these are general guidelines and that the specific regulatory or legal issues that may arise depend on the nature and severity of the materially incorrect information provided. If you have any further questions about this topic, please let me know.
Postscript
It is worth noting that there are other sources of information on manufactured homes beyond ManufacturedHomeLivingNews.com, such as the Manufactured Housing Association for Regulatory Reform (MHARR) and MHProNews. However, I could not find any specific information on whether these sources have a larger collection of third-party research on manufactured homes than ManufacturedHomeLivingNews.com.
If you have any further questions about this topic, please let me know.
ManufacturedHomeProNews.com is another source that provides in-depth coverage of the manufactured housing industry. They have published several articles that critique the actions of industry organizations such as the Manufactured Housing Institute (MHI) and highlight concerns about regulatory and legal issues in the industry 134.
While I could not find any specific information on other bloggers or trade media that have been consistent in probing concerns about possible regulatory and legal issues in the manufactured housing industry, these sources suggest that there are ongoing challenges facing the industry. If you have any further questions about this topic, please let me know.
MHProNews and MHLivingNews have each lead the charge for over a decade in providing both positive insights about manufactured housing while spotlighting the internal and external issues that have kept manufactured housing underperforming.
As we draw to the end of our 14th year of publishing at MHProNews, the following words of praise over the years from industry sources is perhaps warranted.
The late great Zig Ziglar once noted, that in order to solve a problem, the first step had to be to understand that the problem exists. The mystery of why manufactured housing is underperforming is no mystery at all once the facts and evidence are understood. They reason why consolidation has been so common in the 21st century is arguably directly linked to lower levels of production and other headaches that MHI says it is going to deal on behalf of “all segments” of manufactured housing.
The truth may not always be popular, but it is necessary and useful for problem solving. Our thanks to sources, tipsters, sponsors, readers, and God Almighty for making this day-by-day trek through the potential and heartache that emanate from MHVille possible. ###
Again, our thanks to free email subscribers and all readers like you, as well as our tipsters/sources, sponsors and God for making and keeping us the runaway number one source for authentic “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Related References:
The text/image boxes below are linked to other reports, which can be accessed by clicking on them.’
