Issue link: https://read.dmtmag.com/i/95278
DEVELOPMENT MARKETING Ask Eddie BY ED HICKS Does the manufactured housing industry have a chance for survival in the face of the re-elected President? Gary W, Leesburg, FL Asmerely a political observer, and not a par- ticipant excepting an occasional donation and regular voting, I haven't yet formed an opin- ion. However, I canmake several observations which may affect our business interests. First and foremost, with all the current at- tention to the "fiscal cliff" issue which must be solved if we are to avoid European like conse- quences, one of the leading contenders for re- form which is on the table is the potential elimination of the home financing interest credit. If this goes away, there may be serious problems with the housing recovery, which of course will affect us negatively, although itmay more seriously affect new home sales. If all per- sonal home interest tax deductions don't go away, it is highly possible that the elimination of the 2nd home interest deduction will certainly be eliminated. Affordable housing has always been an issue with politicians, and asmuch as they talk about it, few ever take into account the many ways manufactured housing can be a serious solution. In fact, our industry continues to have prob- lems with land use approvals in many markets, making it almost impossible to obtain develop- ment approvals in all but themost remote loca- tions, or in very high housing demand areas especially near all the newly developed oil frack- DECEMBER 2012 20 THE JOURNAL interest in taking these recalcitrant offices to task. Our President and Congress could go a long way to supporting our industry by encour- aging fairness with this little used, but very ac- tive financing program. Although our homemanufacturers have pro- ing projects. Of most importance as we all understand is obtaining parity with site built homes in terms of home financing. The first step towards accom- plishing this was accomplished through the re- visions to the FHA Title I financing program in HERA which was signed into law in 2008 by President Bush. This important step finally al- lowed our lenders to have access to the GNMA secondary financingmarket. Subsequent overly tight restrictions on lenders qualifications has all but nullified allowing all but two lenders to make loans under this program. And, although the underwriting guidelines are stiffer than they have been (out of a need to reduce the number of unqualified borrowers), hope is on the hori- zon that their rates, and credit underwriting terms will loosen up to put our borrowers on much more of a par with site home financing. We need more attention paid to the various HUD staffs around the country who seem to be out to "quash" our development financing pro- grams, like the FHA207m loan guarantee pro- gram. While some offices treat applications fairly, others drag out day to day communica- tions, or clearly stonewall attempts to obtain the unique combination construction and per- manent financing program for land lease com- munities. Headquarters has not yet shown an gressed with state of the art housing methods and products, most new home production is sold by retailers in remote, rural markets. The lack of new community development has all but dried up retailers with the experience and knowledge of selling the benefits of land lease community living. Seniors get it, but without some real support from a minimum of govern- ment endorsement, itmay be a long time before our products appeal to more than seniors and low to moderate creditworthy buyers. Hopefully the lame duck session will bring out those senators and representatives who show a serious interest in supporting our indus- try. We will then have the next four years to give our support and attention to their tenure. More later on this subject, as the adminis- tration shows it's true colors. T J Edward Hicks, Lic.Mortgage Broker, Lic. RE Bro- ker, 913 661-5901, 45 years as Senior M/H In- dustry Economic and Market Analyst with Consultants Resource Group, Inc. PO Box 2795, Brandon, FL 33509 www.factorybuilthome.com, www.mobilehomepark.com, www.fha207m.com