The Journal

May 2013

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COMMUNITY CONSULTANT A New & Improved MHI and NCC May Be One of the Big News Stories of 2013 BY FRANK ROLFE The Manufactured Housing Institute and its National Communities Council are just glorified country clubs for large, portfolio owners, right? Wrong. MHI and NCC are working hard to rebuild the downsized organization into a hub of industry information, advocacy and networking. Case in point, the new Chairman of MHI is Nathan Smith of SSK Communities, Inc. – who is the first one in many years not to be affiliated with a REIT. Nathan owns 23 manufactured home communities in Ohio, Kentucky and Indiana, and is known in the industry as a straightshooter with great, real-life experience. While the manufacturing and retail end of the industry has been downsizing for the past decade, MHI and NCC have been in the process of revamping their organizations to meet the needs of the modern community owner. And I believe that this is going to pay off. Advocacy MHI and NCC are going to attack the industry's goals on both the state and federal levels. They plan on pressing Congress to improve legislation concerning Dodd-Frank, and the unintended consequences of the Consumer Financial Protection Bureau rules. On the state level, MHI and NCC plan on proactively working with the state executives on local issues to present community owners' perspectives and help defend against attacks from rogue cities and officials. Whether it is grandfathering or installation issues, MHI and NCC are committed to addressing the needs of all community owners. These are probably the most talked about issues that I hear concerns from smaller community owners, and having someone who would quarterback these problems would be hugely beneficial. Industry Information MHI and NCC are working to become the powerhouse of industry information – a one-stop source of the data on sales, occupancy, defaults – everything – that community owners need to make informed decisions and to create information supMAY 2013 18 THE JOURNAL portive of their loan requests and appraisals. The industry has suffered for years from a lack of credible, factual performance information, and the new MHI and NCC hope to solve that problem. The goal is to provide relevant, accurate and consistent information for use not only within the industry but also by institutional lenders and investors, who are used to analyzing such data on other real estate niches, such as multi-family, retail and office. Networking MHI and NCC are going to make huge strides in better identifying what community owners want and need, concerning events and networking. In addition to the large annual event in Las Vegas, which currently brings in around 700 attendees, there will be research done on different types of events, dates and formats that would maximize delivering a quality experience by community owners. One criticism I've heard is about the meeting locations. The reality is that, during the tight times, MHI negotiated longer term contracts in order to keep expenses down. After the upcoming annual meeting in San Diego, MHI is out of its West Coast commitments. The annual Congress & Expo event is under contract for Las Vegas until 2017. MHI and its NCC team are sensitive to expense of such events for attendees and will be reviewing future locations accordingly. The goal is to not only hold events, but to hold great events that people want to attend, and feel that they received value for attending. Networking between community owners remains an important goal to encourage a free exchange of information regarding potential partnerships and lessons learned. To encourage new members, the dues structure is under review with the goal of fairness and investment rather than cost. A Great Attitude One of the big changes at MHI and NCC is the attitude of everyone who is now on the team. Nathan Smith encourages you to call him at (859) 342-5111 ext. 10 and let him know what you'd like to see in the new organization, or email him at nsmith@sskcommunities.com – when's the last time you saw that level of access in a lobby group? And Jenny Hodge, who joined the MHI staff as Vice President for the NCC, can be reached at (703) 558-0666 – and if she doesn't answer, she'll call you right back. I called her to get some information on this article, and was treated to some of the most intelligent dialogue on the industry I've had in a long time. Rather than the aloof manner that MHI and NCC was blamed for in the past, the new team seems to really care and be more than accessible. Conclusion Times change. Organizations change. Some get better, some get worse. It really seems to me that MHI and NCC are finally on the right track, and I think all community owners will benefit from these efforts. It's worth noting that it's not just the industry that has undergone significant change over the years, but also MHI, as fewer shipments impacted the association's revenue stream. However, MHI has continued to deliver solid events and recruit new members. The future of this industry is gaining the respect and confidence of the mainstream real estate community – investors, lenders, appraisers, government officials, etc. – so that we can stop the misinformation that has kept us in the shadows of apartment and other asset classes. I would encourage you to check out the new MHI and NCC and see for yourself. This could be one of the big news stories of 2013. T J Frank Rolfe has been a manufactured home community owner for almost two decades, and currently ranks as part of the 18th largest community owner in the United States, with almost 7,500 lots in 17 states in the Great Plains and Midwest. His books and courses on community acquisitions and management are the top-selling ones in the industry. To learn more about Frank's views on the manufactured home community industry visit www.MobileHomeUniversity.com.

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