It’s not that manufactured housing people who blog like Frank Rolfe or George Allen have it all wrong. Sometimes they share an interesting insight, even if it may not be the one they intended to share. Then, there are the latest insights into publicly traded Legacy Housing (LEGH). In this Sunday morning news roundup with facts and analysis, let’s start with the aggressive hike site-rents ASAP, do away with amenities pitchman Rolfe, and his apparently ‘devil may care’ attitude as to what harms and image his methods may have on untold thousands of everyday Americans in Part I. The Allen’s latest AAA is in Part II, with the more meaningful Legacy update in Part III. The weekly diminished manufactured housing industry (a.k.a.: MHVille) headlines in review on MHProNews will follow those items.
Part I
Mobile Home University (MHU) co-founder Frank Rolfe, as his devoted followers know, has been doing periodic reviews of mainstream media reports on articles that mention or focus on mobile and manufactured for some time. In his critique on “VTDigger: ‘Not Going to Live Here Again’: Vermont Manufactured-Home Residents Return to Destruction,” Rolfe said: “Wow, that was really stupid on so many fronts. Yes, many mobile home parks have floodplain on some part of the property, but so does every other type of real estate (including the Capitol of Vermont apparently). Water and electrical systems do not fail in storms any more than any subdivision. And mobile homes have been built to the standards imposed and inspected by HUD (the Federal Government) since 1976. The real reason that the mobile homes of Vermont flooded recently was simply that the entire state of Vermont flooded and those mobile homes just happened to be located in Vermont.”
The slam “Wow, that was really stupid on so many fronts” aside, Rolfe had a point. What Rolfe did was compare and contrast the manufactured home community (MHC, or in his ‘mobile home parks’ worldview, MHP) experience with that of other forms of housing.
Our [i.e.: Frank Rolfe-Dave Reynolds/MHU] thoughts on this story:
This writer thinks they have it all figured out when it comes to why mobile homes in Vermont got flooded the other day – in the same storm that flooded their own capitol. “A large share sit on floodplains. Many parks have aging water and electrical systems that are more at risk of failing when hit by severe weather, and older homes built to outdated housing codes lack the physical integrity to withstand damage.”
As MHLivingNews observed in the analysis on that article: “in fairness, Rolfe has made a few reasonable points that should have been made by MHI, if they only cared about the reality and image of manufactured home living, in or outside of a land-lease community.” A more detailed look is available at this link here.
Rolfe’s gifts to manufactured housing are an apparently mixed bag. He and his associates are understandably deemed predatory by large numbers of their own residents, affordable housing advocates, public officials, and mainstream reporters, among others. But Rolfe, directly and indirectly, has stepped into a void that he has said the Manufactured Housing Institute (MHI) has left. Nor is Rolfe alone. Berkshire Hathaway commercial real estate unit linked Joanne Stevens is among those that has de facto slammed MHI too.
It seems that there is plenty of hypocrisy to go around. Who said? Perhaps with no sense of irony, Rolfe.
Part II – The Latest Update and Comic Relief from ‘Former’ Community Investor George Allen
Arguably like Rolfe in this narrow sense, George Allen’s periodic rants can be useful, not just self-serving. Allen spends a paragraph or two telling his readers what an amazing fellow he is. News flash, George. A similar list of bragging and talking points could be created by untold billions of souls. In a recent blog post, following lines of self-praise, Allen finally gets to his point about what he says may be a first. An ‘all housing’ starts review, in which he includes an estimate of prefab and modular housing starts at 2 percent of site built single-family housing starts, the modest numbers of park model RVs produced (citing RVIA News, he said it is 337 for July 2024), 7,896 HUD Code manufactured homes for July, and what he declares is “Bottom line? 111,400 ‘whole U.S. housing starts’ during July 2024.” It takes him about 600 words, much of which is his explanation of how he, quoting: “…I broadened this statistical reporting horizon…”
Like Rolfe, Allen may have a point, but it is not the one he made.
Other than straining to pat his own back, what did Allen actually do to directly educate his readers? Why did he fail to mention MHI should be doing what he postures doing and could do so publicly and more accurately if they were motivated to do so? Apparently, they are not.
So, Allen gets to posture, while MHI collects dues from people who follow Allen, Rolfe, MHInsider, ManufacturedHomes, and other lesser lights. Why didn’t Allen use his own post to pitch his own idea that production can and should be doubled or more? The lack of critical and objective thought is breathtaking.
Why isn’t the Manufactured Housing Institute (MHI) doing an accurate (rather than estimated and SAAR influenced) look at what share of all housing starts are HUD Code manufactured homes? Why didn’t Allen point out that the RVIA cited total of 337 park model RVs in July 2024 likely surpassed in a month several times over the total number of so-called CrossMods that have been produced in roughly the last 8 years?
But ironically, Allen is demonstrably wrong. While he admits he reads MHProNews, as reportedly does Rolfe, Reynolds, MHI CEO Lesli Gooch, Bill Boor, and scores of others in that orbit, Allen somehow forgot to mention that factory builders have generated some $2 billion dollars with of start-up capital and have churned out various forms of factory-built housing. But hard numbers are elusive, as that report on MHProNews explained. Perhaps because some – like MHI members that produce CrossMods – apparently do not want to systematically reveal how many (or few) units are actually being built.
For those who don’t know or recall, a former Allen client said: ‘With George, it is AAA. All About Allen.’ A regular reader of Allen’s should just look again at what Allen does to see the humorous but evidence-based insight that ex-Allen client revealed. Lots of blather that often missed its own potential takeaways while busily posturing Allen’s supposed greatness.
But Allen earlier this year upstaged MHI by challenging the industry to double production by more independents buying new manufactured homes to fill their vacancies.
That should lead fact seekers and authentic insight thirsty readers to the latest revelation from MHI, which is found in the first installment of an interview of MHI CEO Gooch with Yardi-linked Multi-Housing News (MHN). See that in the weekly recap below. Next up, facts about institutional investor moves with respect to Legacy Housing.
Part III – According to Financial News Site, MarketBeat About Legacy Housing
Los Angeles Capital Management LLC trimmed its holdings in Legacy Housing Co. (NASDAQ:LEGH – Free Report) by 44.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 31,678 shares of the company’s stock after selling 25,409 shares during the quarter. Los Angeles Capital Management LLC owned 0.13% of Legacy Housing worth $727,000 at the end of the most recent reporting period.Other institutional investors have also modified their holdings of the company. SG Capital Management LLC purchased a new position in shares of Legacy Housing in the first quarter valued at approximately $1,532,000. Vanguard Group Inc. grew its stake in shares of Legacy Housing by 5.2% in the 1st quarter. Vanguard Group Inc. now owns 441,383 shares of the company’s stock valued at $9,499,000 after buying an additional 21,995 shares during the period. Jump Financial LLC acquired a new position in Legacy Housing in the fourth quarter valued at about $292,000. Empowered Funds LLC boosted its position in shares of Legacy Housing by 5.0% during the first quarter. Empowered Funds LLC now owns 36,902 shares of the company’s stock worth $794,000 after buying an additional 1,767 shares during the period. Finally, Mill Road Capital Management LLC grew its holdings in shares of Legacy Housing by 7.3% in the fourth quarter. Mill Road Capital Management LLC now owns 500,798 shares of the company’s stock valued at $12,630,000 after purchasing an additional 33,998 shares in the last quarter. Hedge funds and other institutional investors own 89.35% of the company’s stock.…Wall Street Analyst Weigh In
A number of analysts recently issued reports on LEGH shares. CJS Securities began coverage on Legacy Housing in a research report on Friday, June 7th. They issued an “outperform” rating and a $33.00 target price for the company. B. Riley reiterated a “neutral” rating and issued a $29.00 price target (up from $25.00) on shares of Legacy Housing in a research report on Monday, August 12th. Finally, Wedbush reaffirmed an “outperform” rating and set a $29.00 price target on shares of Legacy Housing in a research note on Friday, August 9th.
Legacy Housing Profile
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers.
2) Some of our prior reports on Legacy (LEGH) are linked below.
3) It is understandable that MHI doesn’t publish deep dives into the quarterly earnings calls or other formal statements made by their members. That said, MHI staff and leaders ought to be aware of those reports. MHI senior staff, for instance, ought to be aware that Cavco said that the lack of affordable housing is costing the U.S. economy about $2 trillion dollars annually. Especially since Senator Sheldon Whitehouse (RI-D) also said that the lack of affordable housing is costing the U.S. economy about $2 trillion dollars annually.
4) Rolfe and Allen could do the industry a real service if they:
- a) consistently used correct terminology.
- b) consistently and clearly held MHI accountable for its apparent failures, and then walked that talk themselves. They may do so on occasion, but not in a way that might cause more of their followers to demand a housecleaning at MHI and authentic reforms (see the Daily Business News report below for Thursday 9.12.2024 below for some recent specifics).
- c) Rolfe, Allen, and MHI leaders aren’t idiots, they are intelligent. But the case can be made that they abuse that intelligence in a manner that serves themselves while harming others (again, see the 9.12.2024 report below, among others that follow, for examples and details).
5) Behind every trade group are companies. MHI is no different. MHI’s insiders appear to be focused on consolidation, and all else seems to routinely be window dressing. The industry is struggling to get back to 100,000 new homes produced in 2024, when 22 years ago it looked like manufactured housing might move toward 375,000 new homes annually. But problematic and short-sighted behavior then by industry insiders, different in details but similar in generating problematic outcomes, yielded lower production instead of more.
6) More specifics on manufactured housing production in July 2024 are not publicly available on the MHI website. But the production and top shipment states data are publicly available on the Manufactured Housing Association for Regulatory Reform website. That and more are covered in the headlines recap that follows.
Don’t miss today’s postscript.
7) With no further adieu, here are the diminished MHVille industry’s headline reports in review from 9.8 to today on 9.15.2024.
What’s New on MHLivingNews
What’s New from Washington, D.C. from MHARR
What’s New on the Masthead
What’s New from best-selling author and speaker Tim Connors, CSP, on the Words of Wisdom
What’s New on the Patch by L. A. “Tony” Kovach
What’s New on the Daily Business News on MHProNews
Saturday 9.14.2024
Friday 9.13.2024
Thursday 9.12.2024
Wednesday 9.11.2024
Tuesday 9.10.2024
Monday 9.9.2024
Sunday 9.8.2024
Postscript
It is entirely possible that there is already more positive, insightful, educational, problems and solutions-oriented content on the Patch than MHI’s CEO Lesli Gooch and MHI President Mark Bowersox have generated with third-party media via op-eds and interviews in 2 years. Let that sink in. Perhaps $500,000 a year (+/-), based on MHI’s IRS Form 990 information, are being expended two Gooch and Bowersox by MHI’s board. What exactly are they doing to advance the industry towards the achievable goal of 500,000 new manufactured homes annually that their predecessor at MHI, Richard “Dick” Jennison, said was attainable approaching a decade ago? Where will you find that statement on MHI’s website? Or on the bloggers and publishers in their orbit? The “MHInsider,” ManufacturedHomes.com, Rolfe or Allen? Do you see how mountains of words may be uttered or written by those sources without pointing out the obvious? Namely, that manufactured housing ought to be operating at about 5 times its current production levels per MHI’s own prior president and CEO?
MHARR – which is a production, not a post-production trade group – has repeatedly said that hundreds of thousands of new HUD Code manufactured homes could be produced annually if the MHI was authentically focused on getting good existing laws enforced. So, there is MHARR among professional trade groups, MHProNews and MHLivingNews that is shining a light among industry professionals.
MHARR in recent years has increasingly published mainstream media press releases to amplify their message. Sometimes dozens of publications will pick up those MHARR press releases. MHARR’s budget is a fraction of what MHI’s is. MHARR’ staff is much smaller than MHI’s staff. So, what exactly are MHI’s leaders doing with their time, talent, and treasure expended to cause manufactured housing to achieve its true potential?
There is arguably one similarity between MHI and those bloggers and publications that are in their orbit. It is this. They are busy trying to elevate themselves. Let’s be clear. There is a necessity for any platform that wants to impact an industry or audience to promote itself. Every business, every nonprofit that wants to make a difference will to some degree routinely try to self-promote. Self-promotion is not per se some dirty concept.
That said, if the ONLY thing that is occurring is self-promotion and that self-promotion is apparently harmful to affordable housing seekers, manufactured home community (MHC) residents, and is harmful to the interests of independently operated and routinely more honest professionals than is found among the consolidators of the industry, that’s a problem.
MHI has been thoroughly exposed as being a tool for consolidators. They repeatedly decline to debate or respond to that, and why should they, when they apparently can’t or won’t be able to refute that claim based upon evidence?
The good Lord willing, our efforts on the Patch are just warming up. Because they are picked up by mainstream media as news, it may well over time nudge others to sit up and take notice. Why is it that MHI isn’t doing something similar? Why hasn’t MHI sued to get the “enhanced preemption” provision of federal law or the “Duty to Serve” enforced so that the manufactured home industry could grow robustly?
Manufactured housing is underperforming due to what James A. “Jim” Schmitz Jr. described as “sabotaging monopoly tactics,” which finds a similar echo within manufactured housing based upon the antitrust and consumer advocacy of Sameul Strommen. The causes and cures are available to those who want to see it. But some have found a grift, a scam, a shell game that they think works for them. The Landys at UMH are closer to the perspective of what MHProNews believes is the case. Namely, that there is more money to be made and earned by properly serving affordable housing seekers. New or returning readers interested in learning more can dig into the linked reports. Preview: while breaking news could cause a change, tomorrow’s planned report is about a giant involved in our industry that has taken an eye-catching step. Stay tuned. ###
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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:
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