More on attempts by Washington to help “the people”

Previously I brought up the quote made famous by Ronald Reagan: “The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.'”

That quote takes on special significance for an industry like manufactured housing that is comprehensively regulated by the federal government. Over the last year, the federal government, through third party contractors has been arbitrarily ratcheting up in-plant inspection activity. A HUD proposal to authorize this was first presented to the Manufactured Housing Consensus Committee (MHCC) three years ago. The MHCC, however, rejected the proposal as being a proposal to solve a problem that had not been identified and a cost burden for consumers that would not have any corresponding measurable benefit. After that rejection, HUD pursued expanded in-plant inspections anyway, through “enhanced” inspection checklists, “standard operating procedures” and other processes. The proposal was proffered as one that was strictly voluntary and would not be imposed on the industry when it is in a potential death spiral.

Even though changes such as expanded in-plant regulation should be subject to public comment and review, no such process has occurred. Instead the third party entities have taken significant measures of mandatory implementation of the proposed “voluntary” proposal. The increased procedures bring with them increased costs which, not coincidently, are increased billings paid to the third party inspectors and HUD contractors. I am not suggesting that such parties are guilty of any complicity in implementation of these procedures. I am pointing out that they are not likely to come out in opposition to these enhanced procedures.

I was named to the MHCC as an original member in 2001 and spent roughly nine years serving in that capacity and working with the HUD staff. My service on the committee was concluded when I was termed off at the end of 2010. My gut feeling is that expanded regulation is being pushed at the career regulator level and senior management is reluctant to rein in the activities of their staffers. Another possibility is that the procedures got out of control once they were given to the third parties. Regardless of who is responsible, the important point is that this process is being implemented without the vetting that should have occurred, and this must be changed.

Another concern regarding the MHCC is the reduction of areas that formerly were the responsibility of the MHCC being taken over by HUD management. The current MHCC members have no say in their meeting agendas, leadership positions or priority of proposals. While HUD always had approval over these matters, historically the MHCC managed these areas in the past.

The MHCC was created by the Manufactured Housing Improvement Act of 2000, which established a 22nd HUD designee member to the committee. That 22nd member is the Designated Federal Officer (DFO) and is identified in the Act as an “appointee” of the HUD Secretary. This corresponds with the 2000 law’s mandate for an appointed, non-career program administrator. The logic behind the political appointment of the program administrator, and by extension, the DFO, is that the person so named can function without getting deeply mired in the agendas that might exist within the permanent career members of HUD staff. For several years that position has been filled not by a non-career appointee, but by career personnel, and HUD has indicated that no plans are in the works to name anyone to fill that opening. The filling of this position, as specified by the 2000 law, should thus be a key objective for our industry.

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See Doug’s previous Industry Voices Post, The SAFE Act…and other attempts by Washington to help “The People”

Doug Gorman owns HomeMart in Tulsa OK, and is perhaps the most award wing retailer in the U.S. today.  He has served the Industry on the state and national levels, including as Show Chairman for the Great Southwest Home Show in Tulsa.  You can read his Cup of Cocoa with Doug Gorman at this Link.