the arizona housing newsletter...2016/09/10 · sep - oct 2016 the arizona housing newsletter page...

The Arizona Housing NewsletterSep - Oct 2016

A Publication of the Manufactured Housing Industry of Arizona Volume 13, Issue 05

The Arizona Housing Newsletter

Shortly after the general election, MHIA will be initiating a statewide

electronic media campaign designed to deliver quality sales leads to our retailers. Geo and Associates was selected to develop the program under the leadership of committee members Ken Anderson, Jim Breen, Dave Roe, Jr., Gary Wilson, Keith Paplham, Mike Young, Rick Busbee, and Kim Merrill (see photo on the right).

Banner ads for the program were approved recently (see drafts below) along with landing pages, a newly designed webpage along with a Buyers Guide and electronic brochure for download as incentives for providing their contact information. The banner ads are created to target people looking for a less expensive alternative to “Tiny Homes”; Vacation Homes; Downsizing Baby Boomers; and anyone looking to buy factory built or site-built homes in all areas of the State.

The campaign will also include Search Engine Optimization with about 100 keywords aimed at consumers looking to buy a new home, including site-built homes and tiny homes, in an effort to expand the factory built housing industry’s share of the housing market in Arizona.

The ads will appear in the electronic editions of rural publications in Green Valley, Sahuarita, Marana, Casa Grande, Superior, San Manuel, Kingman, Bullhead City, Lake Havasu City, Chino Valley, Prescott, Sedona, Camp Verde, Yuma, Phx East Valley, Glendale, Peoria, Sun City, Wickenburg, Safford, Clifton, Globe-Miami, Payson, Willcox, Douglas, Benson, Sierra Vista, Parker, Quartzsite, Page, Flagstaff, Williams, Window Rock, Holbrook, Snowflake, Show Low, and Nogales.

MHIA KICKS OFF ELECTRONIC MEDIA CAMPAIGN

L to R: Ken Anderson, Jim Breen, Mike Young, Theo Serrano, Keith Paplham, Georgia Lacy, Gary Wilson, and Rick Busbee. Dave Roe, Jr. & Kim Merrill not pictured.


3RD ANNUAL ARIZONA MANUFACTURED HOUSING CONFERENCE - JUNE 21 - 23, 2017

In This Issue...

3rd Annual AZ MH Conference Page 2 MHI Officers & Committee Leaders Page 7Featured Leader - Sam Baird Page 3 MHI Board Meeting Highlights Page 9Special Meeting Announcement Page 4 MHI GR Committee Highlights Page 9Division Meetings Page 4 MHI Financial Services Highlights Page 10MHI - Fair Housing Compliance TK Page 5 Calendar of Events Page 14Furnace Rule Impact on MH Buyers Page 6 Sponsor/Exhibitor Registration Form Page 15

MHIAZ Leadership

Executive CommitteeJim Breen, ChairmanNorman Ball, Vice ChairmanDavid Roe, Jr., TreasurerTerry Gleeson, SecretaryCody Pearce, Past Chairman

Board of DirectorsSam BairdNorman BallKory BeickelRick BolesBrian BrastadJim BreenJan EschChris FosterTerry GleesonCody PearceScott RobertsDavid H. Roe, Jr.David StoneScott TownsendJoshua WendtShane Willson

Division PresidentsTerry Ragan, NorthwestKory Beickel, PhoenixMichael Bryant, SouthwestScott Townsend, TucsonChris Foster, White Mountain

Gov’t & Zoning CommitteeNorman Ball, ChairmanBrian BrastadTerry GleesonCody PearceDavid H. Roe, Jr.

Mark your calendar to attend the 3rd Annual Manufactured Housing Conference presented jointly by MHIA and MHCA on June 21 - 23, 2017 at the Wild Horse Pass Hotel & Casino in Chandler, Arizona.

You won’t want to miss Champion Home Builders’ newly anointed President,Mark Yost, as this year’s Keynote Speaker. Mark had served as the Chief Financial Officer for Champion since 2013, and as CFO and EVP for Severstal North America before joining Champion. Mark comes highly recommended as one of the top rated speakers for industry meetings.

Once again, we’ll have an outstanding program of classes with exceptional speakers on a variety of subjects from management to sales to finance. We’ll also have our Annual Golf Tournament on June 21st at the Whirlwind Golf Resort.

Something new to our Annual Conference will be a mobile app through Attendify that you will be able to download to your mobile device, whether it’s your phone, iPad, tablet or computer. Say, “Good Bye,” to those heavy binders because this app will contain everything you need for the Conference.

The app will include:� A list of all of the classes, including info on the subjects and the instructors,

as well as a copy of their handouts. � A list of all sponsors and exhibitors, including their contact information.� A section for you to make notes during the presentations.� A Forum for posting messages and pictures to the entire group. � The ability to send private messages to other people who have joined in

on the app, so you can access their names, companies and contact info.� After you finish a class, there will be a short survey for you to complete to

tell us how you liked it.

Watch for more information! We will soon be opening up the app so you can start sending messages about this year’s Conference. If you are going to be a Sponsor or Exhibitor at the Conference, sign-up today so you can be one of the first listed on the app! As a special bonus, Diamond Sponsors alone will receive a banner ad displayed in the app. See the Sponsor Registration Form on the last page.


Sam Baird has served as General Manager for Clayton for the past 16 years. He was re-elected to the MHIA Board of Directors this year as the Manufacturers’ Council

Representative. He had previously served on the Board from 2005 – 2014. Sam has served MHIA in many capacities, including Vice Chairman, Chairman of the Board (2006 – 2008) and Immediate Past Chairman.

Additionally, Sam was a founding member of the Arizona Image Committee, had served as its Chairman. Sam represented our interests in several trips to our Nation’s Capitol. Sam also served as the Association’s 2006 Annual Convention Chairman.

Sam has received many awards for his service to the industry and the association, including the Association’s highest and most prestigious recognition, the Ruth C. Kaseman Award, in 2008. Sam received the Chairman’s Award in 2012 and the Image Enhancement Award in 2014, which recognized his significant contributions to our Industry. In 2015, Sam was awarded the coveted Jake Hannon Inspiration Award, which was made even more special due to the long-term deep respect Jake and Sam shared with each other, not to mention that the award was then presented at our association’s convention by the founder of Clayton Homes, Mr. Jim Clayton.

Following nominations by Governors Janet Napolitano and Jan Brewer and confirmation by the State Legislature, Sam was appointed to serve as one of the Manufactured Housing industry’s representatives on the Board of Manufactured Housing, which oversees the State’s Office of Manufactured Housing. Sam has served for three terms, and is currently serving as Chairman of the Board.

Sam has been in the manufactured housing industry for over 44 years. He started his professional career with Dow Chemical as his first position after graduating from ASU and then joined our industry 2 years later. He has held various positions, including Sales, Sales Management, General Management and Vice President & Corporate Officer at both plant and at corporate levels.

Sam has spent the majority of his career here in Arizona. Sam is currently with the Clayton Family of Brands, representing both Schult Homes and Clayton Homes as General Manager at their Buckeye Home Building Facility.

Sam received an Associates of Arts Degree in Business Management from Phoenix College; a Bachelor of Science Degree in Marketing Management from Arizona State University and has additional studies in Communications, Advertising, Management and Marketing.

Sam has been married for just over 50 years (to the same beautiful woman) and has 2 children and 2 beautiful granddaughters. Sam and his bride Patty reside in the Moon Valley area of North Phoenix. Sam enjoys life, every day, and is committed to helping everyone be a little bit better, every day.

FEATURED LEADER: SAM BAIRD MANUFACTURERS MEMBER TO THE BOARD

Sam Baird Manufacturers Council

Jim Clayton presents Sam Baird with the Jake Hannon Inspiration Award.


Special Meeting Notice

Our MHIA Division Meetings are a great way for members to network as well as gain valuable information about important events, new legislation and regulations in the manufactured housing industry, locally,

statewide, and nationally. All of our Divisions are led by teams of exceptional volunteers who work diligently to ensure that the members they represent are well informed and their businesses are protected by the Association. We have five Statewide Divisions: Phoenix, Tucson, Northwest, Southwest and the White Mountains. These meetings are often attended by representatives from the Office of Manufactured Housing and local area building and zoning officials, giving members a chance to ask questions and work on resolving issues. We encourage you to take time to attend your local Division meetings whenever possible and take part in their activities. Below are photos from recent Northwest (Mohave County) and White Mountain (North Central and Eastern Arizona) Division meetings.

The Northwest Division meeting (on the left) was held on October 11th at Calico’s Restaurant in Kingman. The meeting was attended by newly elected President, Terry Ragan, Billie Ragan, Candice Reif, and Division Board Representative, Shane Willson. Also in attendance, but not photographed were Vice President/Treasurer, Frank Geraci and Debbie Geraci.

The White Mountain Division meeting (on the right) was held on October 5th at The Show Low Cafe in Show Low. The meeting was attended by newly elected President and Board Representative, Chris Foster, as well as outgoing President Wayne Harder and Division members, Louis Cowens and Jack Bush. Attendees also included Navajo County, Interim Chief Building Official, Rick Denton, Sandy Phillips, also with Navajo County, and Allen Davis from the Town of Tayler.

MHIA DIVISION MEETINGS

NOTICE: Members of the Association are invited to a meeting with Debra Blake and Staff at the Arizona Department of Housing to review two agenda items:

1. Attachment of Awnings to Manufactured Homes.2. The New On-Site Rule Regarding Completion of specific items at the homesite.

The Meeting will be held at 10:00 AM on Thursday, December 1, 2016 at the Department of Housing / Office of Manufactured Housing located at 1110 West Washington Street, Suite 280, Phoenix, AZ 85007.

If you are interested in attending, please send an email to Kim at [email protected]. You must be on the list to attend and attendance will be first-come first served.


MHI URGES HUD TO CONSIDER MH IN FAIR HOUSING COMPLIANCE TOOL KIT

On October 28, MHI submitted comments to HUD on their request for information on the proposed Affirmatively Furthering Fair Housing (AFFH) tool kit for State

and Insular areas. The AFFH rule requires state and local recipients of HUD funding to develop plans to further fair housing and to address housing patterns that may have a discriminatory effect.

The proposed tool kit is designed to help states meet the intent of the rule. In its letter, MHI stressed the importance of manufactured homes in providing affordable housing for working families and residents – including members of protected classes. The Fair

Housing Act prohibits discrimination by race, color, national origin, religion, sex, disability and the presence of children.

The 2015 Home Mortgage Act data (HMDA) shows that manufactured home ownership rates for African Americans and Hispanics/Latinos are similar to those for site-built homes.

Yet, there is a trend in many localities to use zoning and land use ordinances to restrict or ban the placement of manufactured homes. Examples of this include restricting where manufactured homes can be placed, placing stringent spacing requirements for replacement homes in communities, and banning outright the placement of manufactured homes in a locality.

Often these ordinances impact protected classes. MHI shared several examples where this has been the case. Zoning ordinances in South Carolina, Texas and Louisiana appear to have a disparate impact on protected classes, as evidenced by HMDA and other data about minority concentrations of manufactured housing ownership in these localities. In each of these cases, the locality does not appear to have an overarching fair housing plan to address this impact.

MHI recommends that the tool kit incorporate manufactured housing in the following ways:

� Have states examine the location and treatment of manufactured housing within localities to both identify discriminatory effects and incentivize corrective policies.

� Add manufactured housing to the list of housing types to be examined in the proposed questions regarding housing and financial opportunities for protected classes.

� Have the Assessment Tool instruct state participants to examine how state-level policies affect manufactured housing.

Click the following links for additional information:

Read MHI’s letter

More information on the proposed rule

O


MHI TELLS DOE - FURNACE RULE DID NOT CONSIDER IMPACT ON MH BUYERS

MHI expressed its concerns about the Department of Energy’s (DOE) recent Supplemental Notice of Proposed Rulemaking (SNOPR) for residential gas

furnaces at DOE’s October 17 public meeting. MHI told DOE that the SNOPR will significantly increase costs to homeowners, particularly manufactured homeowners with an average income of only $26,000 per year. MHI also said that while the SNOPR provided an option for site-built homes to utilize a smaller capacity, less efficient furnace, it did not provide a similar break for furnaces used in manufactured homes.

The initial proposal in 2015 called for increased efficiency standards for both residential and manufactured home furnaces to 92% AFUE (annual fuel utilization efficiency), up from the current 80% AFUE. The SNOPR calls for the 92% AFUE for both manufactured home and residential gas furnaces. In addition, the SNOPR adds an option for residential furnaces to retain the current 80% AFUE for small capacity [≤55 Certified Input Capacity Furnaces (kBtu/hr)]. Unfortunately, the rule does not consider this option for manufactured home furnaces.

MHI made the following comments during the meeting:

� 92% of AFUE furnaces will require reconfiguration of duct work and require larger compartments. This will increase the cost of the home by as much as $1,600 or 2.4 percent based on industry estimates.

� The cumulative costs of DOE’s proposed energy efficiency standards for manufactured housing and appliances such as furnace fans, will add additional cost burdens.

� The rule will lead to increased switching to less efficient types of heating.

� The rule will be particularly burdensome for homeowners living in the west and southwest in older land lease communities where there are no options to use other types of fuel other than gas.

� Older manufactured homes will have to be retrofitted with duct work and compartment modifications in order to accommodate the higher efficiency condensing furnace.

� The high costs associated with retrofitting existing duct infrastructure will likely mean that homeowners will choose not to make improvements, thereby negating the rule’s proposed energy savings and, more importantly, causing unsafe conditions from old, faulty furnaces.

Comments on the rule are due to DOE by November 22. MHI will submit a letter requesting that DOE conduct a thorough analysis of the impact on manufactured housing, and that it consider a small capacity option for an 80% manufactured home furnace. In the meantime, MHI has joined a coalition of stakeholders to oppose the rule and to seek a legislative remedy.

Click HERE for a copy of the Supplemental Notice of Proposed Rule Making

INDUSTRY LEADERS DISCUSS KEY ISSUES AT 80TH MHI ANNUAL MEETING IN CALIFORNIA


Industry members attended committee meetings, discussed key industry issues, networked and enjoyed Pacific Ocean views during breaks at the

80th MHI Annual Meeting Sept. 25-27 in Huntington Beach, Calif.

The topics of discussion in several committee meetings were:

• Preserving Access to Manufactured Housing Act

• HUD’s on-site construction rule

• DOE’s proposed rule on energy standards

• State and local zoning and land use ordinances that restrict manufactured housing

• Requiring Fannie Mae and Freddie Mac to purchase chattel loans

• DOL Overtime rule. Download MHI’s new booklet

MHI President and CEO Dick Jennison expressed his thanks to attendees and sponsors. “I thank the approximately 150 attendees for coming and sharing their industry expertise, and for making a positive difference in the industry. In addition, I thank the 19 corporate sponsors whose generous financial support make our business meetings possible.”

2017 Officers Elections

During the Annual Meeting luncheon, MHI members voted and approved the following officers of the Board of Directors for 2017:

Chairman: Tim Williams, CEO of 21st Century Mortgage CorporationVice Chairman: Joe Stegmayer, Chairman and CEO of Cavco Industries Treasurer: Howard Walker, Vice Chairman of Equity LifeStyle Properties, Inc. Secretary: Tom Hodges, General Counsel of Clayton Homes, Inc.

Tim Williams also thanked Charley Lott from Fleetwood Homes who served as Vice Chairman this year. “He’s done an outstanding job providing me and Dick Jennison with his sound advice and judgment,” Williams said.

Williams added, “Having served as your Chairman for the past year, I’ve come to better appreciate the amount of personal commitment and dedication that members of MHI’s Executive Committee give back to the industry. They do this not for personal gain but for only one reason - to make MHI and the industry a better place for all of us.”

One of Williams’s goals as chairman is to broaden MHI’s base and sphere of influence by increasing its membership, specifically with retailers and community owners/operators. He proudly reported that in the year since Mark Bowersox joined the MHI staff as Senior Vice President of Industry Relations and Events, MHI now represents a record 85 percent of all manufactured housing production and has added 469 new members.

(Continued on Page 8)


80TH MHI ANNUAL MEETING(CONTINUED)

2017 Committee Chairpersons and Vice Chairpersons

The following individuals will serve as committee chairs in 2017:

Federated States: Nancy Geer of the New York Housing Association, Chair, and Mark Brunner of the Manufactured and Modular Home Association of Minnesota, Vice Chair

Financial Services Division: Richard Ernst of Financial Marketing Associates, Inc., Chair, and Edward Gleim of Triad Financial Services, Inc., Vice Chair

Government Relations Committee: Nathan Smith of SSK Communities, Chair, and Rick Rand of Great Value Homes, Inc., Vice Chair

Manufactured Housing Educational Institute: Don Westphal of Donald C Westphal Associates, Chair, and Jim Ayotte of the Florida Manufactured Housing Association, Vice Chair

Manufacturers Division: Jayar Daily of American Homestar Corporation, Chair, and Michael Wade of Cavalier Homes, Vice Chair

National Retailers Council: Leo Poggione of Craftsman Homes, Chair, and Karl Radde of Southern Comfort Homes, Vice Chair

National Communities Council: Patrick Waite of Equity LifeStyle Properties, Inc., Chair, and Stephen Braun of Hometown America Communities, Vice Chair

National Modular Housing Council: Charley Lott of Fleetwood Homes, Chair, and Keith Anderson of Champion Home Builders, Inc., Vice Chair

MHI-PAC Board of Trustees: Nathan Smith of SSK Communities, Chair, and Jennifer Hall of the Mississippi Manufactured Housing Association, Vice Chair

Suppliers Division: Cecil Ayllon of Sedco Pier, Chair, and Scott Oliver of Oliver Technologies, Inc., Vice Chair

Technical Activities Committee: Jeffrey Legault of Skyline Corporation, Chair, and Manuel Santana of Cavco Industries, Vice Chair


MHI ANNUAL MEETING HIGHLIGHTS

MHI Board of Directors 2016 Annual Meeting Highlights

The MHI Board of Directors meeting was held at the end of the Annual Meeting. The board approved the association’s budget for 2017, reviewed and approved the July 2016 financial report, and approved an

independent audit report for 2015 financials prepared by CliftonLarsonAllen.

MHI President and CEO Richard Jennison reported that since the last meeting in June, MHI has gained 16 new members. Jennison also reported that MHI has added Patti Boerger to its staff as Vice President of Communications. Patti will manage both internal and external communications for MHI and brings to the position extensive experience having spent 16 years in corporate communications/public relations with Freddie Mac where she worked on many aspects of housing finance, including commercial financing for manufactured housing communities, apartment financing and affordable housing issues. She has previously held public relations and communications positions at the American Bankers Association in Washington, DC, and at Comerica Bank in Detroit. Her background includes communications strategy, media training, website content management, media relations and social media. Jennison updated the board members on the planned 2017 move of the MHI office which will provide needed office space for transitioning all remote positions back to the MHI headquarters in Arlington, Virginia. Lastly, Jennison reported that staff is working on updating MHI’s Web site with an anticipated launch by the end of the year.

The board members heard reports from the MHI Investment Committee and all MHI divisions that met during the 2017 Annual Meeting (see specific division reports for details). The MHI Board of Directors approved two-year terms beginning January 1, 2017, as listed in the PAC report.

Under new business, it was requested that at future meetings of the MHI Board of Directors, members be presented with updates on MHI Facebook and Twitter statistics. During the discussion it was also suggested that MHI test some higher spending levels on Facebook to see what results occur.

Government Relations Committee 2016 Annual Meeting Highlights

Following standard Division reports, MHI’s Senior Vice President of Government Affairs and Chief Lobbyist Dr. Lesli Gooch led the Government Relations (GR) committee through a detailed analysis of the organization’s key legislative and regulatory accomplishments for the previous year. In particular, she covered items presented in her written update, but not covered in greater detail at other division meetings.

MHI Senior Vice President of State and Local Affairs Rick Robinson then discussed changes to state and local legislative tracking for 2017. Local ordinances will still continue to be tracked in 15 states via a contract with MultiState Associates. Additional states have been added to local tracking via email alerts received from state press association public notice web sites.

MHI’s tracking of state legislatures will expand to all fifty states in 2017 via BillTrack50, a system that will allow state associations to better benefit from the collective data. Information on the system will be rolled out to the state executive directors prior to the start of legislative sessions so they can better decide how to utilize it in their own state lobbying efforts.


MHI FINANCIAL SERVICES MEETING HIGHLIGHTS

More than 80 people attended the meeting led by Dick Ernst, Chairman of the Financial Services Division. Four members of the Board of Governors had terms that were expiring and were reelected to serve for

another term: Timothy W. Williams, 21st Mortgage Corporation; Cody Pearce, Cascade Financial Services, LLC; John W. Loucks, Assurant Specialty Property; and William Matchneer, Bradley Arant Boult Cummings LLP.

Updates were provided about MHI’s legislative and regulatory activities, which include efforts to clarify and modify CFPB financing rules, require the Government Sponsored Enterprises to support chattel lending, improve FHA mortgage insurance programs for manufactured housing, allow Section 8 voucher recipients to use their housing assistance to purchase manufactured homes, implementation of the on-site rule, and the Department of Energy’s proposed energy efficiency standards. Topics to be covered by the Finance Lawyers Committee and a PAC update were also discussed. Detailed information about major topics discussed at the meeting are below:

Preserving Access to Manufactured Housing Act (H.R. 650/S.682)

MHI is spearheading efforts in Congress to pass the Preserving Access to Manufactured Housing Act (S. 682/H.R. 650) either as free-standing legislation or as a part of a larger legislative package during the 114th Congress. The Act would increase the interest rate and points and fees thresholds for HOEPA loans and exempt from the Loan Officer Compensation Rule retailer sales persons who are not compensated for loan originator activities – an exemption currently enjoyed by real estate agents.

To date, MHI has succeeded in getting this provision twice adopted by the House of Representatives, and also by the Senate Banking Committee and the Senate Appropriations Committee. In 2016, the House Appropriations Committee passed an amendment offered by Rep. Chuck Fleischmann (R-TN) that was modeled after H.R. 650. The amendment, made to the Fiscal Year 2017 Financial Services and Government Appropriations bill, was passed by a bipartisan vote of 31-17. The House later reaffirmed their support for the language by defeating two amendments offered during House floor consideration that would have stripped Rep. Fleischmann’s amendmentfrom the bill. MHI’s government affairs team worked with Appropriations Committee members, Committee leadership, House leadership, and H.R. 650 cosponsors to ensure the manufactured housing language was included – and retained – in the House appropriations bill. MHI worked with its members and state association executive directors to generate more than 6,300 grassroots contacts to the Hill in support of MHI’s DC advocacyeffort. The successful votes were the result of these efforts and inclusion of this language in the appropriations bill has helped position the language for passage before Congress adjourns at the end of the session.

On the Senate side, there are now 26 cosponsors (including Senators McCain and Flake) of S. 682, with two additional Senators becoming cosponsors following MHI’s February legislative fly-in. MHI is currently engaging with bill sponsors, key leaders in the Senate (Senators Donnelly, Cotton, Boozman, Cochran, McConnell, Shelby), and Banking Committee Ranking Member Brown to pave the way for retention of the House language in the final Fiscal Year 2017 appropriations bill or other available must-pass year-end legislation.

Fannie Mae and Freddie Mac’s Duty to Serve Manufactured Housing

MHI continues to work to help facilitate the creation of a secondary market by Fannie Mae and Freddie Mac(Government Sponsored Enterprise (GSE), or collectively “the GSEs”) to securitize chattel loans. The Federal



MHI FINANCIAL SERVICES MEETING (Continued)Housing Finance Agency (FHFA), the regulator that oversees the GSEs, is currently working to finalize its Duty to Serve (DTS) Rule, which will require Fannie Mae and Freddie Mac to draft and implement plans that supportmanufactured housing. Since passage of the Housing and Economic Recovery Act (HERA) in 2008, which mandates that the GSEs have a responsibility to serve this underserved market, the GSEs simply have not purchased chattel loans. This failure of the GSEs to create a secondary market for chattel loans is one of the reasons why borrowing costs are higher for chattel loans. Because chattel loans constitute 70 percent of the manufactured housing market and are the most underserved segment of that market, MHI believes the final Duty to Serve Rule can only fulfill the statutory mandate with a requirement to purchase a significant number of chattel loans.

During the FHFA rulemaking process, MHI sought to make a comprehensive case for requiring the GSEs to create a vibrant secondary market for chattel loans. MHI actively encouraged FHFA to require Fannie Mae and Freddie Mac to substantially increase their support for manufactured housing, especially by establishing a secondary market for chattel lending. MHI participated in the webinars and roundtable meetings hosted by FHFA and also submitted comments on the Proposed Rule. In addition, MHI engaged state executive directors, community owners, lenders, and manufacturers, and facilitated their submission

of comment letters urging GSE support for chattel lending, resulting in almost 1,500 comment letters to FHFA. MHI also worked with Representatives Scott (D-GA), Fincher (R-TN) and Senator Donnelly (D-IN) to facilitate their submission of comments to FHFA about the Proposed Rule.

Once the FHFA’s public comment period closed, MHI has continued to pursue GSE support for chattel loans by facilitating dialogue between MHI’s Duty to Serve Task Force and Fannie Mae and Freddie Mac about how the Enterprises can support manufactured housing lending. These efforts are critical because the HERA statute does not require the GSEs to purchase chattel loans, but merely gives FHFA the authority to require this if they determine it can be done consistent with safety and soundness and the Duty to Serve goals. MHI’s expertise is essential to address concerns the FHFA and GSEs may have about chattel lending. Simply demanding that theFHFA require purchase of chattel loans is not an effective strategy to accomplish this goal.

Improvements to the FHA Title I Program

MHI has been engaging with HUD to improve the Federal Housing Administration’s (FHA) Title I program to help ensure families have access to chattel financing for manufactured homes through the FHA. FHA is in the process of incorporating its Title I Mortgagee Letters, which form part of the regulation of Title I loans, into a new, comprehensive updated Handbook. As part of this effort, FHA solicited feedback on how to improve the Title I program since the Title I program is not widely used. The Title I program covers both home improvement and chattel loans. Due to a number of outdated program rules, lenders originated only $24 million in Title I manufactured home loans in Fiscal Year 2014. Further, according to Ginnie Mae, there are only 3,900 active manufactured housing chattel loans in Ginnie Mae’s securitization pools. This portfolio is woefully inadequate given that manufactured homes comprise seven percent of the total occupied housing units in the United States.



NMLS 486243

MHI FINANCIAL SERVICES MEETING (Continued)In a comment letter to the Federal Housing Administration (FHA) on June 6, 2016, MHI proposed a series of recommendations to strengthen FHA’s Title I mortgage insurance program. In its letter, MHI recommended changes to the FHA Title I Handbook as well as other broader policy changes, which, if implemented, would improve the accessibility of the FHA Title I program and make it a more viable option for lenders and borrowers. MHI recommended changes to the origination cap, appraisal requirements, loan limits, premiums, foundationrequirements, and manufactured home definitions. MHI also recommended that FHA develop and implement a direct endorsement lender program for Title I that is aligned with the Title II program and modify appraisal guideline materials to reference HUD installation standards for both Title I and Title II manufactured homes. Following the submission of its comment letter, MHI has continued its dialogue with FHA staff to continue to encourage incorporation of these policy recommendations into the FHA Handbook and FHA policies.

Statutory Authority to Use Section 8 Vouchers for Manufactured Homes

MHI was successful in securing language in legislation to reform the Section 8 voucher program to allow Section 8 voucher recipients to purchase manufactured homes and make monthly mortgage payments using Section 8 vouchers. H.R. 3700, the Housing Opportunity through Modernization Act (HOTMA), which was signed into law on July 29, 2016, includes language allowing Section 8 vouchers to be used for the purchase of manufactured homes. The provision was added on the House floor in February by an amendment offered by Representative Peter Welch (D-VT). Passed by a voice vote, the amendment allows Section 8 vouchers to be used not just for the cost of leasing the land (which is currently permitted) but also for other monthly costs of purchasing amanufactured home, including mortgage payments, property tax, and insurance. This change will allow families that receive a tenant-based Section 8 voucher to help pay for an alternative to renting an apartment – allowing them to actually purchase a home. The language does not provide any direct funds or require anyone to use a voucher to live in a manufactured home. However, with this change, the approximately 2.1 million Section 8 voucher holders in America will now have the option to use their Section 8 voucher to pay for the monthly costs of buying a manufactured home.

MHI played an instrumental role over the years in developing this specific provision. With respect to its inclusion in H.R. 3700, MHI helped facilitate House passage of Rep. Welch’s amendment. MHI was also a part of a coalition of more than




MHI FINANCIAL SERVICES MEETING (Continued)40 housing and advocacy groups supporting passage of H.R. 3700. MHI is preparing information for its members about how Section 8 vouchers are to be used to purchase manufactured homes. As a part of this process, MHI is engaging with HUD, lenders, and Public Housing Authorities to help implement the program.

Implementation of HUD’s On-Site Completion of Construction Rule

MHI has been working with HUD to delay and revise the On-Site Completion of Construction Rule, to ensure it does not increase costs and cause occupancy delays. On September 7, 2016, enforcement of the Rule began. The Rule establishes new procedures that permit manufacturers to complete the construction of manufacturedhomes on-site rather than in the factory, without obtaining advanced approval from HUD (24 CFR Part 3282 Subpart M). The Rule, first proposed in 2010, is intended to eliminate the need for costly, time-consuming approval under the current Alternative Construction (AC) process for most on-site work that is required to complete construction of a manufactured home. The Rule establishes new requirements and procedures for manufacturers, retailers and third party approval agencies to inspect and approve on-site work that previously has not been required. A final on-site inspection by the manufacturer’s IPIA (or agent) will be required prior to occupancy. Based on conversations and informal surveys of member companies, MHI initially estimated that implementation of the On-Site Rule would cost between $7 and $10.5 million, impact 10 percent to 15 percent of homes produced, and cause significant delays in on-site completion and homeowner occupancy.

MHI has been in dialogue with the Office of Manufactured Housing Programs to address concerns and clarify several aspects of the On-Site Completion of Construction Rule that became effective on March 7, 2016 (enforcement was delayed until September 7, 2016). In addition to engagement with HUD, MHI publicly brought concerns about the final Rule to the attention of Congress during a hearing before the House Financial ServicesCommittee’s Subcommittee on Housing and Insurance on March 22, 2016. MHI continues to press HUD to clarifythe Rule, consider additional technical improvements, and address implementation concerns. As a part of this effort, MHI is exploring legislation in the House and Senate to require HUD to further evaluate the Rule’s costs.

As a result of MHI’s efforts, HUD has agreed to MHI’s recommendations to modify the onerous roof truss designrequirements and to exempt from site completion requirements certain limited elements of construction for tiled tub surrounds and interior doors that span the mate line of a home. HUD has also agreed to MHI’s recommendations that certain appliances, such as cooking ranges and clothes dryers, are not within the scope ofthe new requirements. These improvements will reduce the ultimate cost impact of the Rule.

DOE’s Proposed Rule on Energy Standards for Manufactured Housing

MHI is working to ensure the Department of Energy’s (DOE) energy standards are not cost prohibitive for consumers seeking to purchase a manufactured home and are implemented by HUD, not DOE. In June, DOE published its Proposed Rule on energy standards for manufactured housing. The Proposed Rule would implementa key portion of the Energy Independence and Security Act of 2007 (EISA), which directed DOE to establish energy standards for manufactured housing. Since the passage of that Act, MHI and its members have been actively engaged with DOE to ensure that regulations developed pursuant to this Act do not pose excessive compliance and cost burdens that outweigh benefits to consumers.

The Arizona Housing NewsletterJul - Aug 2016

Visit our website www.azhousing.org for an archive of past newsletters, shipment reports and other information!

Manufactured Housing Industry of Arizona4525 South Lakeshore Drive, Suite 105, Tempe, Arizona 85282

Phone: (480) 456-6530 Fax: (480) 456-6529 Email: [email protected] Web: www.azhousing.orgKen Anderson, President - [email protected]

Kimberly Merrill, Director of Operations - [email protected]

Calendar of Events

1st Meeting at Department of Housing, 10 AM1110 W Washington, Suite 280

Phoenix, AZ 85007 RSVP: [email protected]

21-23 2017 Arizona Manufactured HousingConference at Wild Horse Pass Hotel & Casino

9th Tucson Division Meeting, 6:30 pm Mimi’s Cafe at The Tucson Mall Scott Townsend, Division President

[email protected]

15th Phoenix Division Meeting, 12:00 pmMHIAZ Office, Tempe

Kory Beickel, Division [email protected]

24-25 Thanksgiving Holiday - Offices Closed

30th Government Relations & Zoning Committee

30th Board of Directors Meeting

NOVEMBER DECEMBER

MHI has expressed concern that the proposed standards will increase the cost of a manufactured home and willbe a burden to many lower-income homebuyers who already struggle to obtain the necessary financing to purchase a home. While the DOE contends that the proposed standards would result in increased monthly utilitysavings for consumers, MHI is concerned that the cost increases outweigh the benefits in savings. MHI is also concerned that the proposal does not address implementation of the new standards, which could result in manufacturers facing complicated and overlapping requirements, with two separate entities (DOE and HUD) overseeing the standards. MHI does not believe that the proposed standards should not be finalized until DOE and HUD can determine an efficient and practical enforcement strategy.

In addition to its own comment letter and engagement with DOE, MHI helped facilitate more than 790 letters toDOE echoing these concerns, including letters from nine state associations, six manufacturers, and one supplier.MHI is also working with HUD’s Office of Manufactured Housing Programs to ensure HUD is the primary regulatorto enforce the energy standards. In addition to working with DOE and HUD, MHI is also seeking legislative support for preserving HUD’s exclusive jurisdiction over all manufactured housing construction standards, including standards for energy efficiency.

MHI FINANCIAL SERVICES MEETING (Continued)

JUNE 2017

Diamond$2,750

Gold$1,500

Silver$1,000

Exhibitor$450

Exhibit space with Table and Chairs

Company Name & Logo in Program & on App

Listing in App, Newsletters & Websites

Golf Hole Sponsorship Included

Advertisement in Conference App

Free Conference Registrations for 2 People 1 Person 1 Person 1 PersonFree Golf Registrations for 2 People 1 Person 1 PersonChoice of Booth Location First Second ThirdAdvertisement in Conference Program Full Page 1/2 Page 1/4 PageTime to Speak at Opening Session 10 Minutes 5 MinutesChosen Sponsorship Level (check one)

2017 Arizona Manufactured Housing ConferenceSponsor & Exhibitor Benefits

Card Number:

Visa MasterCard Amex Expiration Date: / CVC Code:

Card Holder Name:

Billing Address (if different from above):

City/State/Zip: Signature:

Return this form with payment to: MHIA, 4525 S. Lakeshore Dr., #105, Tempe, AZ 85282 or fax to 480-456-6529 or Email to [email protected]

Registration will not be accepted without payment. Registration does not include Hotel Accommodations.

Attendee RegistrationCompany:

Address: City/State/Zip:

Phone: Email:

1st Registrant: Nickname for Badge:

2nd Registrant: Nickname for Badge:

Golfers1st Golfer: Handicap or Average:

2nd Golfer: Handicap or Average:

Payment Information Check Enclosed Charge My Card

the arizona housing newsletter...2016/09/10 · sep - oct 2016 the arizona housing newsletter page...

Documents