The business end of a pen is the point, which when pressed against paper or another surface, releases the ink.

 

The business end of a gun is its barrel pointed at an object or person.

 

The business end of government is it's ability to force, entice or compel behaviors through taxes, regulations, incentives and penalties.

 

Like fire, it is a dangerous servant and a fearful master.

 

– George Washington

 

We have all watched over the years while the powers-that-be in government can team up with a business or an industry, or essentially align against it. Winners and losers are chosen, sometimes very subtly from the public's perception, but the result to those impacted can still be the same.

 

The power of government can influence an outcome, and that is why associations exist, to help business professionals like you and me have a better level of access to our public officials.

 

For years, some manufactured housing (MH) retailers and communities have made loans or offered rent-to-own to prospective residents or home buyers. But in the SAFE Act and Dodd-Frank world, that dramatically changes. MH Communities understandably are concerned when HUD wants to push for 'voluntary' standards for fire-sprinklers, which creates concerns that such standards could open them up to new liability if their MHC's water systems are judged to have insufficient pressure to power said sprinklers.

 

I've heard 'many sides' of the fire sprinkler argument, and have no intent to take a side here. My point is that these are examples of how the business end of government, no matter how well meaning, is pointed at a business, an industry or segments within it.

 

No matter how well meaning laws like Dood-Frank may have been, what many bankers and lenders say is that it essentially puts more burdens and pressures on smaller lenders, because bigger ones can more easily pay the regulatory costs. As I was writing this, a high level industry lender sent me this link on this very topic.

 

So ironically, "too big to fail" banks could be accelerated by the very regulatory mechanism – Dodd-Frank and the CFPB – that they were meant to help prevent another 2008-style financial meltdown.

 

The estimated 5-8 billion in private capital that has powered infills in thousands of manufactured home community sites is threatened or choked off by federal and state regulations. So when institutional capital vaporizes, and private capital has already stepped in, what we are seeing is that the business end of government's regulatory power cutting off market forces that have demonstrably responded to real needs.

 

 

Those who attend the Feb 26-28th MHI Winter Legislative session will have the happy privilege of welcoming the national association's new President/CEO, Richard A. Jennison. He comes with fine credentials. Sources indicated to MHProNews that the Executive Committee spent considerable time and effort in the selection process, bypassing the use of a search firm and thus saving MHI those expenses. So the Executive Committee deserve to be commended for their efforts on behalf of the major national association for our Industry.

 

Richard Jennison will need our encouragement and support, because the business end of government has been weighing heavily on our Industry for some years now.

 

Let's be realistic and say that Jennison will need a honeymoon period, to get a good feel for our Industry and a sense of how to navigate the many issues we face. One hopes that there will be a positive, forward looking meeting in DC, free from stone throwing.

 

In the face of the business end of government, we need to find the presence of mind to work together for the good of our Industry's consumers, professionals and associations that can help make it happen. ##