The degree of change that is taking place in the manufactured housing industry is significant, both in its size and scope.  From Gail Cardwell taking the reins at MHI to the growth of the modular home sector, predicting the future of our industry is getting more difficult by the day.

Examine for a minute the continued not-so-subtle shift to modular housing.  Fleetwood has launched Trendsetter Homes, a Fleetwood Homes division pursuing Gulf Coast modular housing opportunities.  Champion continues to place emphasis on its growing Genesis Homes division.  Clayton builds modular homes as does Patriot Homes.  Guerdon Homes of Boise, Idaho has become a big player in specialty modular projects and Palm Harbor is growing its modular business through their Nationwide Homes subsidiary.  The reasons behind this shift are obvious --- modular homes qualify for conventional site-built home financing, consumers believe modular homes are a much better investment (i.e. will not depreciate) and most municipalities and planners have a long standing prejudice against HUD coded manufactured housing. 

Yet we continue to push for more chattel financing, we work to improve our image, and we battle local building officials and legislators regarding discriminatory practices aimed at eliminating HUD coded manufactured homes.  Why fight it?  Because our HUD code homes are great --- we just haven’t done an adequate job of educating the masses.  The good news is that is about to change, as a new and enthusiastic group of industry professionals from around the country will attend MHI’s summer meeting to begin a new chapter in our industry with the formation of five MHI Priority Issue Task Forces, which include: 1). Industry Image/Public Outreach 2). Industry Image/Customer Experience 3). Home Finance 4). HUD-Coded Regulatory Reform 5). Home Placement.  Everyone active in the process is committed to enact change, REAL change.  Look for these groups to steer true industry reform and a revitalization of our image and product awareness, along with strong leadership from Barry McCabe, Michael O’Brien and others.  While the modular business is an important and lasting part of factory built housing, HUD code homes remain the most affordable home built today and the most efficient home to manufacture.  America needs more affordable housing and we hold the key --- no pun intended.  To register for the MHI Summer Meeting go to: www.manufacturedhousing.org/events/summer_meeting07.asp

Also plaguing the industry is aggressive legislation aimed at land lease community owners who close their communities and ask the residents to leave.  In Oregon we have always dealt with our issues in a collective forum know as the Manufactured Housing Landlord/Tenant Coalition, meeting for 12 months or more prior to our bi-annual legislative session to produce a bipartisan bill aimed at fixing things that need fixing collectively, as everyone affected by these issues (including tenants and their advocates) participate equally in the Coalition process.  But this year is different.  For the first time in our 15 year history it looks like both the Oregon House and Senate committees playing with our bill and making changes against the wishes of the Coalition.  We are aggressively fighting back but our options are limited.  California, Idaho, Arizona, Minnesota, Illinois and other states are dealing with similar legislation, some more successfully than others, but it is clear that we are on many regulators radar, and not always in a good way. 

The housing business is down nationally and we are no exception.  But I believe that this is a correction, temporary at best, that is way overdue and will be welcome by most.  A buyers market can be a very good market and competition is healthy for consumers.  The right-sizing of the site built business is long past due and we will profit from their corrective actions.  Conventional financing is not as liberal as it once was and that too is a welcome shift in business strategy, philosophy and ethics.  This year may very well be a tough year for us but 2008 and beyond are shaping up to be years we will enjoy. 

In other news, we issued the following press release today:

Commonwealth Real Estate Services, one of the nation’s largest manufactured home community management companies has expanded its operations to Colorado and plans aggressive expansion throughout the western United States. Along with this expansion, President GREG HARMON announced the addition of two key people who will lead the Colorado properties.  JUDY SANDOVAL joins Commonwealth as Regional Marketing Manager for Colorado.  JUDY was previously Assistant Director of the Rocky Mountain Home Association and is active in numerous public, private and non-profit organizations in the greater Denver area.  CHRISTY MCGEE has joined Commonwealth as our Colorado Property Manager, with direct management responsibilities for manufactured home communities in Thornton (Denver), Fort Collins and Dillon, Colorado.  CHRISTY joins Commonwealth after 20 years with Uniprop in various administrative, sales and management positions.  BRIAN HOAG, a longtime industry and Commonwealth veteran will oversee the Colorado operations from our Portland headquarters.

Greg Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101