MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
We begin with these stories:
ACCORDING TO THE MHI Week in Review, on September 15, the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises held a hearing on the future of housing finance and the status of Government-Sponsored Enterprises. In his testimony, Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco indicated that a principal focus of the FHFA conservatorship role has been to maintain the GSE’s secondary mortgage market role “until legislation produces a resolution of their future” and minimizes losses, limits risk exposure and ensures GSEs price their services to adequately address their risks and costs. DeMarco also stated that while in conservatorship, GSEs will be “limited to continuing their existing core business activities and taking actions necessary to advance the goals of conservatorship.” In June, FHFA issued a proposed rule indicating that FHFA would not consider manufactured home loans secured by personal property as part of the GSEs’ “duty to serve” obligations.
Manufactured Housing in the News
TV-STATION KCRG REPORTS that an Iowa levee that would protect factory-built housing has been shelved. A temporary levee built by residents and volunteers currently protects the homes in Thatcher Mobile Home Park, but state funds for a permanent structure didn’t materialize.
The city had asked for $2.1 million in state I-JOBS funding, but it was not among the projects selected by the I-JOBS Board Wednesday. The city planned to use $1.9 million in federal Community Development Block Grant funds it has to pay for the rest of the project. There are about 160 factory-built homes and 400 residents combined in flood-prone areas.
FROM DELAWARE, the Cape Gazette reports that a local resident wants to review the Delaware Manufactured Home Owners Association (DMHOA)’s financial records. By federal law, as defined by the Internal Revenue Service, members of a 501(c)(3) organization – and the public at large – can inspect the annual report of financial activity as well as all IRS documents, including the three most recent annual information returns. According to DMHOA’s charter, the organization is considered a 501(c)(3) corporation and falls under IRS guidelines. Fred Neil at the DMHOA told the paper the association is awaiting word from its attorney on the next step in providing the records.
A NEW EMPIRE STATE program could provide a boost to the manufactured home industry and provide residents there with new energy-efficient homes. WSYR-TV in Central New York reported that non-profits in that section of the state would be getting $1.4 million to help qualifying residents with older mobile homes replace them for free. Applicants must also be low-income and own both their home and the land it sits on. Applicants meeting all those requirements may qualify for $50,000 to buy a new manufactured home. Nancy Geer, executive director at New York Housing told MHMSM.com that the new homes have to be Energy-Star qualified. Look for a full report at MHMSM.com soon.
“Manufactured Housing in the News continues…”
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Now, back to our stories.
THE TIMES &TRANSCRIPT in New Brunswick, Canada reported on the prospect of a new recreation center at the Pine Tree manufactured home community there. The completed project will consist of two playgrounds, a walking trail, outdoor ice rink, beach volleyball court, green space and seating areas for picnics. Killam Properties has put forward $50,000 for the initial phase of the project and the City of Moncton will install the playground equipment, while the province has donated $15,000 for the project. The community consists of some 824 homes.
THE CHARLESTON REGIONAL BUSINESS JOURNAL reports that new tax credits in South Carolina encourage the purchase of energy-efficient manufactured homes. The American Council for an Energy-Efficient Economy recognized South Carolina’s incentives for Energy- Star-labeled manufactured homes as one of 18 programs across the country in its “States Stepping Forward” awards program. The tax credits are managed by the S.C. Budget and Control Board’s South Carolina Energy Office in conjunction with the S.C. Department of Revenue. The incentives include waiving the $300 sales tax and providing a $750 nonrefundable state income tax credit.
In Business and Market News…
A.M. BEST CO. has downgraded the financial strength rating of Standard Casualty to B++ (Good) from A- (Excellent) and issuer credit rating to “bbb” from “a-.” The outlook for both ratings is negative. Standard Casualty is a subsidiary of Palm Harbor Homes, Inc. The company says the downgrading of Standard Casualty’s ratings is based on the continued deterioration in the capital position and financial performance of Palm Harbor, which in A.M. Best’s view is not consistent with a parent of an “A-” rated insurance company. The ratings and outlook also reflect the uncertainty in Palm Harbor’s credit facility, debt obligations and liquidity requirements, which may result in a potential burden on the insurance operations.
THE SOUTH BEND TRIBUNE reported Friday that RV industry giant Thor Industries announced its purchase of an Elkhart County towable camper maker, Heartland Recreational Vehicles LLC. Thor paid more than $200 million in stock and cash for the company. Heartland will continue under its current name, retain its brand portfolio and remain headquartered in Elkhart. Earlier this year, Heartland purchased the remaining trademarks of the towable brands of bankrupt Fleetwood Enterprises in February.
STOCKS ENDED THE DAY FRIDAY thirteen points higher. The biggest movers among manufactured home related stocks went into the red with Deer Valley Corp declining ten percent, Skyline down almost six percent, Palm Harbor down more than four and a half percent and CAVCO off nearly three percent. UMH Properties ended the day up nearly five and a half percent. The manufactured housing composite value was down nearly three percent.
“On behalf of Production and IT Manager Bob Stovall, Editor L.A. ‘Tony’ Kovach, Associate Editor Catherine Frenzel, INdustry in Focus reporter Eric Miller, and the entire MHMSM.com writing and support team, this is Erin Patla. G’day!”