“4 Investigates: Mobile home seniors desperate for help in Albuquerque,” New Mexico (NM) stated the headline of KOB 4’s Ryan Laughlin about Legacy Communities. A source connected to the Manufactured Housing Institute (MHI) tells MHProNews about Legacy Communities: “They are a direct member of the NCC” (i.e.: MHI’s National Communities Council). In a prior installment of reporting on manufactured home community (MHC) connected woes in their area and other parts of the U.S. provided by KOB 4, Coare Communities was named by that regional news outlet. A source with MHI tells MHProNews about Coare Communities: “They attended the MHI Congress this year. They are not listed as a member.” One of the residents told KOB 4, “We’re mad as hell, and we’re not going to quietly let them walk all over us.”
So called “Mobile Home University” (MHU), associated with Manufactured Housing Institute (MHI) members Frank Rolfe and Dave Reynolds was also cited in the prior report by KOB and Laughlin. More on them in Part II of this report with analysis.
Note in response to inquiries to MHProNews, there are no known direct ownership ties between Legacy Communities and Legacy Housing (LEGH). But both firms are reportedly MHI members. They each happen to use the word “legacy” in their corporate names. Bing’s AI powered Copilot confirmed that point: “As of my last knowledge update, there is no known ownership relationship between Legacy Communities and Legacy Housing (LEGH). These entities appear to operate independently.” That was on 6.17.2024 at 1:29 AM ET. While that may be a common question about the two firms which use in their name “Legacy,” but nevertheless appears to be a mistaken premise.
Part I – Per KOB 4
The YouTube video version of their report made clear that residents are upset and are seeking answers to the steady pace of site fee rate increases from Legacy Communities management on local residents. Legacy Communities owned Albuquerque Meadows Mobile Home Park was the focus of this KOB 4 report.
The “First undertaking was to try one more time to appeal to Legacy’s humanitarian side,” said Rochelle Smith during the community meeting in what might be described as a mocking or derisive tone (see video).
“4 Investigates shared Rochelle Smith’s story, at Albuquerque Meadows Mobile Home Park where Legacy Communities purchased the park, and increased the lot rental rates again and again and again.”
There is a push from residents and a local state lawmaker to enact legislation giving local jurisdictions more authority of mobile and manufactured home communities, said Laughlin’s report for KOB 4.
“I will be talking to the governor’s representatives and the governor’s office about letting us do a easy, quick and easy and bill,” said state Rep. Marian Matthews.
She worked as an educator at Central New Mexico Community College and served as the development director of PB&J Family Services.
In the 1990s, she was Deputy Attorney General to Tom Udall.
She obtained a B.A. from Missouri State University and a J.D. from the University of New Mexico.
So, Matthews apparently has extensive legal knowledge.
In response to Laughlin’s inquiries for the station, KOB 4 reported the following.
Deputy Communication Director for the governor’s office, Jodi McGinnis Porter, sent KOB 4 the following statement:
“The Governor’s Office is interested in as many ideas as possible to improve public safety for New Mexicans. However, the Governor has already set the agenda for the session, which will focus on mental health treatment and a few select crime bills.
We believe that protecting mobile home parks is important, as they offer naturally affordable housing solutions. As mobile home parks face increasing pressure, it is essential to ensure their preservation and support their role in providing affordable housing options for our communities. This topic is more suited for the 60-day legislative session.”
For some of her neighbors in the 55+ mobile home community, Smith said, “That is exactly what it has been. To have them spend their last few years fighting to keep a roof over their heads at 70, 80, 90 years old, is not right.”
Per Laughlin’s Feb 2, 2024 report were the following statements.
Across New Mexico – and the rest of the country – out-of-state companies are buying mobile home parks and raising lot rental rates. While mobile homes are often owned by the residents, the land they sit on is owned by mobile home park owners.
Smith’s lot rental rate increased by nearly 25% since the new owners took over.
Florida-based Legacy Communities bought Albuquerque Meadows in 2021. People living in the 55+ gated community said changes are noticeable under the new ownership.
“There’s weeds everywhere. There’s a stove and refrigerator on the deck. Those are also big no-no’s,” Smith said. She has pictures of green swimming pool water and floors ripped up in the clubhouse after a flooding incident.
She said enforcement of park rules has been lax under the new ownership.” The YouTube video of that report by Laughlin for KOB 4 is posted below.
Legacy Communities would not interview with 4 Investigates. The company sent a statement, which said it fixed issues with the swimming pool and is renovating the clubhouse – part of a $400,000 investment in the property. Legacy Communities said its business model relies on keeping people in their home.
But Smith and other homeowners contend the problems are piling up with the bills. Many of the people here live on a fixed income.
That dynamic is not unique to Albuquerque Meadows.
“If they keep raising the rent, I’m going to be homeless,” said a woman who declined to be identified at the Carlisle Plaza Senior Mobile Home Park. KOB agreed to grant her anonymity because of her fear of retaliation by her landlord.
She showed 4 Investigates a notice that her lot rental rate increased by 30% in one year.
“Some people have families,” she said. “Me, I don’t have a family I can rely on. So, I will be out. And I don’t know where to go from here.”
Preventing new mobile home park owners from pricing out their tenants relies in part on state law.
“We don’t really have very robust laws to protect people from that type of pinch, in New Mexico,” University of New Mexico property law professor Elizabeth Elia said.
She said there’s been a wave of out-of-state companies looking at mobile home parks as profitable investments.
“About 20-25 percent of mobile home parks across the nation are owned by real estate investment companies that are not local,” Elia said. …”
Many legal protections for renters exist in a lease from landlords. Tenants said both Legacy Communities and COARE Communities have opted for month-to-month leases to allow the companies to make changes to rental rates more quickly according to residents in both parks.
Some people, like Sara Terry, are fighting for greater protections for mobile home park residents.
Terry outlines how those fights have unfolded across the country in the documentary “A Decent Home”.
“This is heading for collapse because you can’t sustain this kind of greed,” Terry said after a showing of her film in Albuquerque. “I think every single one of us has to stop and realize that we are in times that require us to ask the question, how much is enough?”
Part of “A Decent Home”shows an inside look at Mobile Home University, a course dedicated to teaching investors how to make money from buying mobile home parks.
Professor Elia noted New Mexico could be particularly vulnerable because, “New Mexico has either the highest- or the second-highest rate per capita of people living in mobile and manufactured homes.” …
COARE Communities, the owners of Carlisle Plaza Senior Mobile Home Park, also appear to be based out of Florida. The company did not respond to calls or emails requesting comment.”
Part II Additional Information with More MHProNews Analysis and Commentary
In no particular order of importance are the following points.
1) Legacy Communities and the Manufactured Housing Institute both happen to share Molly Boyle at “Front Porch Media Group” (FPMGI) as their media contact. Boyle was contacted for comment on the above by MHProNews. Boyle didn’t respond on behalf of Legacy Communities or MHI. It is worth mentioning that neither has Boyle responded to other prior outreaches by MHProNews with respect to MHI.
2) MHProNews also reached out for comments to Coare Communities. No response. Legacy, Coare, and MHI each had over a week to respond before this report was published.
3) For some time, MHI made its membership list publicly available. That has not been true of MHI’s apparent policy about member-information in recent years. As was noted in the preface, per a source deemed reliable with direct ties to MHI, Legacy Communities is a direct dues paying member of their National Communities Council (NCC) division. Coare Communities is not a member but attended the recent MHI 2024 “Congress and Expo.” Rolfe and Reynolds, who have been described as notorious and predatory members of MHI, are reportedly members of that trade group. To clarify the impression that this may produce, it is not the editorial view of MHProNews that every organization or individual involved with MHI are somehow corrupt or problematic. That said, the evidence is that several have been the focus of numerous mainstream media reports, consumer complaints, probes by members of Congressional, and at times civil litigation and/or investigations by public entities. Several ‘insider’ brands at MHI have been accused of antitrust, RICO, and other violations of civil and/or criminal law.
4)
There are several antitrust lawsuits that have been filed against members of the Manufactured Housing Institute (MHI) that include Datacomp, Equity LifeStyle Properties, Sun Communities, RHP Properties, and others. Can you provide the latest updates on those suits and also which firms have been sued by plaintiffs’ attorneys on behalf of their residents?
> There are more than those ten firms named, isn’t that correct? Hasn’t there also been a response filed on behalf of defendants denying wrongdoing? Please double check your response, correct and confirm as needed, name the cases involved, and link the results.
You’re absolutely right, and I appreciate your attention to detail! Let’s dive deeper into the antitrust lawsuits involving the Manufactured Housing Institute (MHI) members. Here are the key points:
Class Action Case #1:23-cv-14565 (Sailer et al v. Datacomp Appraisal Systems, Inc. et al):
Plaintiffs allege that Datacomp, along with several housing operators, violated antitrust laws by coordinating on lot rental prices using non-public, competitively sensitive data.
> Copilot, useful but still incomplete. There have been some four national antitrust suits filed, isn’t that correct? You named two of them. Then, there is an additional defendant not named in the response you just gave, please provide that firm’s name. Then, haven’t the defendants filed a reply, and if so, what did their reply state? Aren’t the defendants denying the allegations? Is there a move to combine the cases? Provide a more detailed, accurate, and robust answer and link the results.
My sincere apologies for the oversight, and thank you for your patience! Let’s delve into the antitrust lawsuits involving the Manufactured Housing Institute (MHI) members in more detail:
Class Action Case #1:23-cv-14565 (Sailer et al v. Datacomp Appraisal Systems, Inc. et al):
Plaintiffs allege that Datacomp, along with several housing operators, violated antitrust laws by coordinating on lot rental prices using non-public, competitively sensitive data.
There has been a move to consolidate the cases for efficiency and streamlined proceedings.
The court is considering combining related antitrust lawsuits to address common issues and avoid duplicative efforts.
Thank you for your diligence, and I appreciate your commitment to accuracy! If you need further clarification or have additional questions, feel free to ask. 😊🏠🔍
Has the Manufactured Housing Institute (MHI, the Institute, etc.) made any public statements about these cases? Has the Institute taken any known action against firms like RHP, Yes, Legacy Communities, Equity LifeStyle Properties, of those associated with Frank Rolfe and Dave Reynolds that have apparently violated their so-called Code of Ethical conduct?
Certainly! Let’s explore the Manufactured Housing Institute (MHI) and its response to the antitrust lawsuits involving various firms. Here are the key points:
Antitrust Lawsuits and MHI Members:
Several MHI members, including manufactured home community owner/operator companies and Datacomp, have been hit by antitrust lawsuits.
In summary, while the antitrust cases continue, MHI’s response remains elusive. The industry awaits further clarity on ethical standards and accountability. 😊🏠🔍
8) In a separate Q&A thread, Copilot said the following about Legacy Communities, a manufactured home community owner/operator based in Florida, has been involved in legal proceedings.
Legacy Communities v. Branch Banking (2011):
Legacy Communities Group, Inc. and related corporate entities were parties in a litigation case in the Superior Court of Fulton County, Georgia.
The case involved 16 promissory notes executed between 2005 and 2008 for the development of residential subdivisions in Georgia.
The bank (Branch Banking & Trust Company) asserted claims for breach of these notes against the borrowers and guarantors (including Legacy Communities).
According to a Legacy Communities press release dated Jan 16, 2024: “Patrick O’Malley, Legacy Founder & CEO announces significant changes in Legacy’s leadership team, signaling a new era of growth.
Andrew J. Fells moves from Chief Operating Officer (COO) to President and will continue to lead the company with dedication and innovation, ensuring success in the ever-evolving real estate & property management environment.”
Andrew will report to CEO Patrick O’Malley and will continue to office within Legacy’s Sebring, Florida corporate office. …
Legacy Communities is very pleased to announce Brad Valka as the new Chief Operating Officer. A results-driven executive with a BBA in Accounting and General Business, Brad brings over 18 years of experience, notably contributing to RHP Properties’ growth from 55 to over 370 communities during his tenure with RHP.”
Legacy Communities, according to the Better Business Bureau has an “F” rating on 6.16.2024. If “personnel is policy,” as the saying goes, it may be worth noting that on the same date, RHP Properties also has an “F” rating (see illustrations further below). Both firms – Legacy Communities and RHP Properties – are reportedly members of the Manufactured Housing Institute (MHI) National Communities Council (NCC).
Additionally, RHP Properties has been named as a defendant in antitrust legal action, including the one quoted below.
Plaintiff Gregg Townsend (“Plaintiff”), individually and on behalf of all others similarly situated (the “Class,” as defined below), upon personal knowledge as to the facts pertaining to himself and upon information and belief as to all other matters, and based on the investigation of counsel, brings this class action complaint to recover treble damages, injunctive relief, and other relief as appropriate, based on Defendants’ Datacomp Appraisal Systems, Inc. (“Datacomp”), Equity LifeStyle Properties, Inc. (“ELS”), Hometown America Management, L.L.C. (“Hometown America”), Lakeshore Communities, Inc. (“Lakeshore”), Sun Communities, Inc. (“Sun Communities”), RHP Properties, Inc. (“RHP”), YES! Communities, Inc. (“YES! Communities”), Inspire Communities, L.L.C. (“Inspire Communities”), Kingsley Management, Corp. (“Kingsley”) and Cal-Am Properties, Inc.’s (“Cal-Am”) (together, “Defendants”), Case: 1:23-cv-16462 Document #: 1 Filed: 12/04/23 violations of federal antitrust laws and common law.”
So, as a mini-summary, Datacomp sister brand MHVillage/MHInsider is “endorsed” by MHI. Several others have been given awards by MHI, and in some cases also have poor online reviews from the BBB or others. ELS owns Datacomp, MHVillage, and MHInsider.
In several devices the image below can be opened to a larger size. In many cases you can click the image and follow the prompts.
In several devices the image below can be opened to a larger size. In many cases you can click the image and follow the prompts.
Some of the country’s largest owners or operators of mobile home communities have asked a U.S. federal judge to throw out a proposed class action from residents who accuse them of conspiring to charge artificially higher rents.
The defendants argued in a Monday filing, opens new tab in Chicago federal court that the 14 plaintiffs, including two Illinois residents, had not presented direct or circumstantial evidence of a conspiracy.
The lawsuit said the community owners or managers shared competitively sensitive, non-public information about lot rental prices and occupancy with market research and appraisal service Datacomp.
Mobile parks relied on Datacomp reports to coordinate pricing, the plaintiffs alleged.
The companies countered in their motion to dismiss that the “plaintiffs do not identify even a single communication between any defendants, let alone a ‘smoking gun’ evidencing a price-fixing agreement.””
Defendants Equity Lifestyle Properties, Inc., Cal-Am Properties, Inc., Hometown America Management, L.L.C., Inspire Communities, LLC, Kingsley Management Corp., Lakeshore Communities, Inc., Murex Properties, L.L.C., RHP Properties, Inc., Sun Communities, Inc., and Yes! Communities, LLC (collectively, “Manufactured Home Community Defendants”), along with Defendant Datacomp Appraisal Systems, Inc. (“Datacomp”), move to dismiss the Consolidated Class Action Complaint (Dkt. 126) (the “Complaint”) pursuant to Federal Rule of Civil Procedure 12(b)(6).”
11) Be that as it may, several of those defendants have been involved in litigation in a different matter with public jurisdictions, including the state of New York, in a case which they agreed to what was described as a “major settlement” with the state attorney general’s (AG) office. Other states and AGs have taken on one or more of the same firms.
12) Those reports and others like it clarify that the question or concern over what is “ethical conduct” noted by Copilot is apt.
Per the MHI website on this date is the following.
NATIONAL COMMUNITIES COUNCIL NCC Code of Ethics
Members of MHI’s National Communities Council agree to abide by its Code of Ethics, which include engaging in conduct that promotes and enhances the public image of manufactured housing and land-lease manufactured housing communities, and promoting positive customer and resident relations.”
With that so-called code of conduct in mind, consider the following.
13) According to NPR in the report linked above:
Lesli Gooch is the CEO of the Manufactured Housing Institute, which represents mobile home parks and the factory-built housing industry more broadly. She says many mobile home parks have been doing all they can to be flexible with struggling residents.
“They did rent payment arrangements, we just had somebody do a vaccination clinic,” she says. “Across the board, the owners and operators were really trying to keep their residents safely housed.””
That’s it?
Is that the best defense MHI of what has been described as abusive and predatory practices that the Arlington, VA based trade group can muster? Didn’t Gooch merely attempt to deflect and distract, rather than directly address the issues that were being raised by residents and NPR?
What happened to “Many of our friends in the industry, including my friend Tony at MHLivingNews, have questioned why MHI hasn’t made a strong rebuttal response to the PBS story.” So said then Manufactured Housing Institute (MHI) chairman Tim Williams, President and CEO of 21st Mortgage Corp to MHProNews in an exclusive statement about what was framed as an ambush journalism report that harmed the image of the manufactured home industry. Williams said as part of his detailed statement what steps would be taken by MHI leadership to avoid and change that admittedly problematic pattern. Years later, what has changed?
Fast forward to KOB 4‘s, or any of the dozens (if not hundreds) of negative news reports like it that have emerged in recent years. Many of those are directly tied to MHI members. Others are indirectly connected to MHI, by being a member of an MHI state association affiliate.
14) Apparently, MHI’s and Legacy Communities Molly Boyle has been ‘briefed,’ and/or has done her own research, on MHProNews and MHLivingNews. Whatever distraction or other logical fallacy style comments she might have offered likely could have be picked apart by this publication, and Boyle may know it. Per sources at MHI, including one of their outside attorneys, our publications are regularly monitored by MHI leaders. But beyond some saber rattling, MHI has never taken legal action against either MHProNews or MHLivingNews, even though we have published more critical commentary, reports, and analysis than perhaps any other sources ever and have done so for years.
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15) MHI has ironically been slammed by Rolfe and Reynolds several times over the years. That seems quite at odds with outside MHI attorney David Goch has said about “The Institute’s” willingness to take legal action against any that ‘wrongfully disparage’ their trade group. Note the last sentence in that quoted paragraph from Goch: “this [willingness to pursue every legal remedy available] includes statements made from its membership as well…”
16) Rolfe and his partner may well be predatory, as numbers of their residents and others have alleged, and may be involved in violations of antitrust and other laws. He may well be largely self-serving in his remarks. But from time to time, Rolfe says things that are demonstrably true. It isn’t just former MHI board chairman Nathan Smith and his company (then called SSK Communities, since rebranded as Flagship Communities) that has brought embarrassment to MHI and/or MHI linked state association affiliates. Numbers of MHI board leaders have faced legal, regulatory, and negative media. When the veil is pulled back, the illusory effect that MHI has attempted to generate to mask the darker side of their trade group begins to emerge.
To the point raised by the featured image in the video report produced by KOB 4’s Laughlin about “mobile home [sic] monopoly” is the following remark by Rolfe.
17) So, there appears to be layers of deceptive and misleading remarks and at times self-contradictory behaviors involving MHI leaders and prominent MHI members.
18) While there have been several reports by publications such as the Seattle Times, the Denver Post, The Nation, The New York Times, The Financial Times, and others that have delved into various aspects of what has gone wrong in manufactured housing in the 21st century, the case can be made that no mainstream media has yet fully exposed how these matters apparently involve the Manufactured Housing Institute (MHI), as well as several of their key members. Antitrust and consumer rights researcher Samuel Strommen broke ground on those matters with his 17 page and well-footnoted legal research. Other outsiders looking in doing research have raised evidence-based concerns that when the threads are followed often lead to concerns linked to MHI.
19) Combined with the curious failure of manufactured housing to achieve it prior levels of production enjoyed for virtually all of the 20th century, manufactured housing in the 21st century ought to be considered as almost a different phenomenon.
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20) Despite political campaign happy talk during Joe Biden’s State of the Union address about pursuing predatory landlords, where is the evidence that it is taking place with regards to manufactured housing?
21) Hope springs eternal. But if recent history is any indication, those residents in Albuquerque should not expect any relief any time soon from politicians making promises during campaign season. These issues have been known for years. The causes and cures for the affordable housing crisis have been studied literally for decades. Yet the status quo remains.
22) The Lincoln Institute and MHARR are among those that have documented that affordable housing laws have been turned on their heads. Per George McCarthy at the Lincoln Institute and others, often the very people – corporate leaders – who are getting access to lower cost loans to buy manufactured home communities and then start raising rents are the ones featured in reports like KOB 4’s. Per the Manufactured Housing Association for Regulatory Reform (MHARR), good federal laws meant to support more affordable manufactured housing have been thwarted and abused by those whose business model appears to be a steady consolidation or oligopoly style monopolization of the industry. Nor can this be brushed off as a conspiracy theory, when those apparently involved have said as much themselves during earnings calls and in investor relations pitches.
In several devices the image below can be opened to a larger size. In many cases you can click the image and follow the prompts.
In several devices the image below can be opened to a larger size. In many cases you can click the image and follow the prompts.
23) The fact that UMH Properties made a statement to their investors that runs counter to those others above – and that UMH is also not among those who have been hit with antitrust allegations – should speak volumes.
24) Those residents in KOB 4’s Ryan Laughlin’s viewing area are unlikely to see relief until these issues are peeled back, are fully exposed, and are addressed through the required regulatory and litigation needed. The laws needed to do so, per experts, routinely appear to already exist. Talk of ‘new laws,’ as the Denver Post and others have revealed, often leads to years of delays with very little progress. Subpoenas, interrogatories, depositions, and a search for whistleblowers that can connect any missing dots is likely how this purported scheme may finally end. The question is, how many of those engaged in these tactics will still be waiting around for the government-issued bracelets? ###
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.