Issue link: https://read.dmtmag.com/i/391492
OCTOBER 2014 22 THE JOURNAL Aside from water and food, safe shelter is the second most important human need. But who provides what (housing type) to whom (people in need) for what (pricing and financing) be- comes an important part of our culture. For example, excepting Recreational Vehi- cles, today's homes for permanent housing which are built in a factory then transported and installed on a homesite with utility connections can provide virtually everything needed for meeting our sheltering needs. . . . that is good. By the numbers: for the past 15 years, man- ufactured home sales have steadily fallen from a high of 373,000 homes in 2008 to only 60,000 in 2013. That's bad How badly the facts are understood by many in the public in terms of quality, strength, value, and safety . . . is bad. The failure of our industry to inform and ed- ucate the public as to the truth of issues such as: depreciation, tax revenues, fire and wind safety, construction quality is all but non-exis- tent. That's bad. And, how they are maligned by opposing at- titudes and forces makes it difficult for the facts to be known and recognized. . . that my friends, is ugly. Since the passing of the Housing Act of 1974, which provided a system of industry monitoring and control of manufactured hous- ing and was implemented with the first homes shipped in June 1976 consistently good con- struction and safety standards were imple- mented in all 50 states. . . . That's good Over the road regulations in most states allow homes including the "hitch" or "tongue" of the caisson or transportable/returnable chassis sys- tem to be 16 in width at an hour after sunrise and an hour before sunset with certain high traffic restrictions, which is good. However, they will not yet allow "divisible loads" or "disconnect-able" transportable homes on the road, disallowing some new home systems and designs. That's bad. Still, it left the confusing issues of differences in construction standards for: modular housing, mobile home, manufactured home, pre-fabri- cated home, factory built home, and how these building may legitimately apply to zoning and land use issues. That's bad. Construction materials and standards, which are being used for factory built homes today, for all but the lowest of HUD building codes, make it difficult for someone to distinguish it from site built. That's good. HUD Construction code homes built after June 1976 provide for compliance with National Electrical Codes, and National Plumbing Codes, including heating, lighting, and venti- lation standards are virtually the same with a few minor exceptions to the site built building codes That's good. HUD Construction code homes built after June 1976 provide for some less meaningful and usually aesthetic standards for items such as ceiling height, room size, roof pitch, etc. have been established at less than site built stan- dards. That's bad. Investor/operators are buying up all the "in- vestment grade", filled to stabilized occupancy, land lease communities at record high prices based on the lowest ever "cap rates" than ever seen before. That's good. Secondary markets for securitized home fi- nancing mortgages such as FNMA and FNMA, with the recent exception of the limited FHA Title I financing program as a sub-part of GNMA, have totally eliminated financing for homes on a par with site built housing. That's bad. Resale home values of homes "en situs" es- pecially in age-restricted land lease communities have steadily increased over time on a par with nearby market site built homes. That's good. Values of re-financing used homes, "en situs", has not been allowed on independent appraisal of the property, under market condi- tions, resulting in some lowering of values, es- pecially in Pre-1976 built homes. That's bad. Seniors and age 55+ retiree recent newer home buyers almost always purchase the more expensive, better built, higher standard man- ufactured homes, in land lease communities than do younger buyers. That's bad for some and good for others. Indigent and low income seniors and age 55+ retiree home buyers almost always purchase the least expensive, age depreciated, smaller, ob- solete homes in high density older land lease communities. That's good/bad. Local planning and zoning boards tend to "forget" to provide for, or allow zoning and land use communities in areas which may oth- erwise be undesirable for site built housing; den- sities allowed are lower than affordable, setbacks and other land use regulations are not established which provide for financially viable land lease community development. That's bad. Local planning and zoning boards often reduce their "impact" fees on homes in organized Seniors communi- ties since they don't have any children living in The Good, The Bad, and The Ugly BY ED HICKS DEVELOPMENT MARKETING \ 23