Page 1The Arizona Housing NewsletterJul - Aug 2016

A Publication of the Manufactured Housing Industry of Arizona Volume 13, Issue 04

The Arizona Housing Newsletter

Ken Anderson President

(Continued on Page 2)

Because I’ve experienced more National Elections than the rest of you (this will be my 14th), I’ve become an expert – at least in my own mind.

One common thread during each has been – “Have never experienced such a negative campaign!” It’ll be the same in 4 years, TRUST ME!

During President Obama’s first two years, he had what is called a ‘Super Majority’. He had control of the House, the Senate, and of course, could approve or veto most bills that came to his White House desk. During those 2 years, two major bills came forward – ObamaCare and Dodd-Frank. Needless to say, industry members saw trouble looming with Dodd-Frank. The eventual start up of the Consumer Financial Protection Bureau (the rule maker) proved them right.

Rules adopted by the CFPB have placed serious restrictions on our Retailers ability to communicate reasonably with the clients and has negatively impacted our home only financing. As predicted, our industry is not able to participate in the Qualified Mortgage home only financing program, negatively impacting sales for our affordable housing.

Our fight continues as our House Bill (HR650) passed the House last year. An identical Bill was introduced in the Senate (S682) and awaits floor vote. Should the Senate pass the bill, there may be a small window for Presidential signature during the lame-duck session after the November General Election.

Otherwise, it’s back to Congress for the next session in 2017. For this reason it is important for us to support those Legislators who have gone to bat for us.

We would ask you to consider the following candidates for re-election. The only conflict, should both Ann Kirkpatrick and Senator McCain make it through the primaries, is they would face off against each other.

Because most bills necessitate bi-partisan support, your association remains party neutral and continues to work with the following candidates.

Congresswoman Kyrsten Sinema (D – CD 9). A member of the House Financial Services Committee, she led the way as the first Democrat to co-sponsor our bill. She also testified on our behalf before Congress. As a reward for her support and her continued help in the future, our former Chairman, Cody Pearce and his fiancée, Jamie Korus, did a fundraiser for her in his home. They raised over $20,000 for her reelection campaign. I have never seen such a spread of hors d’oeuvres and desserts in my entire life. It was also a “who’s who” with Joe Stegmayer, Champion CEO Keith Anderson, Terry Gleeson and Patricia Durkin present.

Congresswoman Ann Kirkpatrick (D - CD 1). Ann crossed party lines and co-sponsored our bill, fought off negative amendments and supported us until the end. She will be running for the U.S. Senate in this election.

Politics - some things never change

Page 2The Arizona Housing NewsletterJul - Aug 2016

Politics - some things never change (Continued)

Congressman Paul Gosar (R – CD 4). Paul both co-sponsored our bill and supported us for the final vote. He has been a good friend of the industry.

Congressman David Schweikert (R – CD 6). David has been in lockstep with the industry since day 1. One of our original co-sponsors when he was first on Financial Services. He has subsequently been reappointed to the powerful Financial Services Committee.

Congressman Trent Franks (R – CD 8). Also a co-sponsor for our bill and a consistent supporter for our industry.

Congresswoman Martha McSally (R – CD 2). Martha McSally gave us her vote when HR 650 came before the full House for vote.

Senator John McCain (R). The Senator co-sponsored our Senate Bill S682. We are hopeful the Senate will pass this bill and forward it to the President for his signature.

Others – While a strong industry supporter who has spent time with industry members at Factory Expo Homes and the Champion facility, Matt Salmon (R – CD 5) has chosen to not run for reelection. Senator Flake has also co-sponsored S682, but is not up for reelection for 4 more years.

To summarize, please consider these loyal lawmakers for both the Primary Election, and if successful, for the November General Election.

In This Issue...

Joe Stegmayer - 2016 Hall of Fame Page 3 House Reaffirms Support for MH Page 8Featured Leader - Kimberly Merrill Page 4 Problems with New HUD Installation Page 9FHFA Duty-to-Serve Rule-Making Page 4 MHI Calls on DOE to Reduce Impact Page 10MHIA Division Meetings Page 5 Register for MHI Annual Meeting Page 11Champion Homes - Home for Vet Page 6 NCC Fall Leadership Forum Page 12Bill to Reform Housing Assistance Page 6 MHI Successful Summer Meeting Page 12MHI Urges Exemption for MH Page 7 Calendar of Events Page 14

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 EschTerry GleesonWayne HarderCody PearceScott RobertsDavid H. Roe, Jr.David StoneScott TownsendJoshua WendtShane Willson

Division PresidentsTerry Ragan, NorthwestKory Beickel, PhoenixMichael Bryant, SouthwestScott Townsend, TucsonWayne Harder, White Mountain

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

mark Your calendar For the 3rd annual Joint mhia & mhca

arizona manuFactured housing conFerence

June 21 - 23, 2017Wild horse Pass hotel & casino

Page 3The Arizona Housing NewsletterJul - Aug 2016

Joe stegmaYer inducted into rv/mh hall oF Fame class oF 2016

On August 1, 2016, MHIA Member and industry leader, Joe Stegmayer of Cavco Industries, Inc., was inducted into the RV/

MH Hall of Fame as part of the Class of 2016. The gala event was attended by more 300 family members, friends, and colleagues of the 10 inductees.

In the photo on the right, Mr. Stegmayer (left) is pictured with Barry Cole, President of Manufactured Housing Insurance Services and Past Chairman of the RV/MH Hall of Fame (right). The photo below is Mr. Stegmayer accepting this very well deserved honor.

Joe began his career in 1973 with Worthington Industries supplying LP gas cylinders to the RV industry. In 2000 he joined Cavco as its CEO, growing it from $95 million to $700 million in annual sales and expanding from three factories in two states to 19 factories in 11 states. Forbes magazine named Cavco the 13th best small company in the United States. It is the second largest builder of manufactured homes and the number one builder of park models nationwide.

During his tenure as chairman, the company’s park model business has grown to number one nationwide. Cavco has also been the recipient of MHI’s Manufacturer of the Year for 7 Years Running (2010 – 2016). Prior to joining Cavco, Joe held executive positions with Champion Homes and Clayton Homes, Inc.

Joe Stegmayer has received numerous honors, including the Jack E. Wells Memorial Award from the California Manufactured Housing Institute, the Chairman’s Award from the Manufactured Housing Institute and the MHIA Chairman’s Award (2005),. Joe served as Chairman of the Manufactured Housing Institute from 2010 through 2012 and currently serves as Vice Chairman of the RV/MH Heritage Foundation.

His charitable work includes Knights of Columbus charities, Girl and Boy Scouts, the Columbus Zoological Association, and the National Football Hall of Fame. Joe also serves as chairman of the RV/MH Heritage Foundation. He was appointed by the Governor of Arizona to the state’s Board of Manufactured Housing.

Those who would like to nominate future candidates for the Hall of Fame should visit www.rvmhhalloffame.org to view the Nomination Guidelines and download the nomination forms. Nominations must be received by October 31st to be considered for the 2017 class.

Photos provided by Shawn Spence Photography

Joe Stegmayer with Barry Cole at the RV/MH Hall of Fame

Page 4The Arizona Housing NewsletterJul - Aug 2016

I started working for the Manufactured Housing Industry of Arizona in December 2000 as a Temporary Receptionist. I guess they liked me, because after my first 3 months

as a Temp, I was brought on permanent (and I mean permanent) as an Admin Assistant.

As time moved on, I took on larger roles and learned a ton of new skills along the way, including database management, bookkeeping, desktop publishing, convention planning, and much more. I quickly moved from Admin Assistant to Membership Services Coordinator to Operations Manager, and eventually Director of Operations (2006). When the recession hit in 2008 and we had to lay off all supporting staff, my experience of working from the ground floor up came in handy.

In 2009, I decided to go back to school to earn my Bachelor’s Degree in Business Administration. In 2013, I graduated Magna Cum Laude with a BSBA and a huge amount of student debt. But I wasn’t finished... I went back to school again the following year to begin working on my Master’s Degree in Business Administration with a concentration in Finance and Accounting. I’m about to start my Capstone course with a current 4.0 GPA and I am scheduled to graduate the end of October. Woohoo!

Prior to working for MHIA, I worked as the office manager for a non-profit organization that serves the seriously mentally ill with a substance abuse dual diagnosis. It was very rewarding work and something I may want to return to some day down the road.

For now and the foreseeable future, I am very happy working for Ken Anderson and the MHIA, serving our awesome members and Board of Directors. I’ve had some wonderful experiences here and I have met so many great people along the way. I consider it a privilege to work for you and I’m here to help in any way I can. If I haven’t met you yet, I look forward to meeting you soon; maybe at our next convention.

Featured leader: kimberlY merrill director oF oPerations

Kimberly MerrillDirector of Operations

FhFa dutY-to-serve rulemaking Process

The Federal Housing Finance Agency (FHFA) released an update to stakeholders about its rulemaking process for its “Proposed Rule on Duty to Serve Underserved Markets.” Through a blog post on the FHFA website.

To access the FHFA’s blog post, click here. MHI has been an engaged participant throughout FHFA’s public outreach efforts, encouraging them to require Fannie Mae and Freddie Mac (the GSEs) 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. FHFA is currently working to finalize the Duty to Serve rule, which is mandated to require the GSEs to draft and implement plans that support three critically underserved markets - manufactured housing, rural markets, and affordable rental housing. Since passage of the Housing and Economic Recovery Act in 2008, which requires the GSEs to support these markets, little has been done to support manufactured housing. In fact, there is no secondary market for home only (chattel) loans, like there is for site-built real estate. This is one of the reasons why borrowing costs are higher for chattel loans. MHI has sought to make a comprehensive case for requiring the GSEs to create a vibrant secondary market for chattel loans. Because chattel loans constitute 70% of the manufactured housing market and are the most underserved segment of that market, MHI believes the final Duty to Serve rule cannot fulfill its statutory responsibilities without a significant requirement to purchase chattel loans.

Page 5The Arizona Housing NewsletterJul - Aug 2016

mhia division meetings

Our MHIA Division Meetings are a great way for members to network as well as gain valuable information about important proceedings in the manufactured housing industry, locally, statewide, and nationally. All of

our Divisions are led by teams of exceptional volunteers who work dilligently to ensure that the members they represent are well informed and their businesses are protected by the Association. Below are photos from recent Phoenix Division and Tucson Division meetings. We encourage you to take time out of your busy schedule to attend your local Division meeting and take part in their activities. We have five Statewide Divisions: Phoenix, Tucson, Northwest, Southwest and the White Mountains.

Division Officers are: Phoenix: Kory Beickel, President & Board Representative; Brian Brastad, Treasurer; and Patricia Durkin, Secretary. Tucson: Scott Townsend, President, Treasurer & Board Representative; and Venise Gomez, Vice President & Secretary. Northwest: Terry Ragan, President; Shane Willson, Board Representative; Frank Geraci, Treasurer; and Julie Lackey, Secretary. Southwest: Michael Bryant, President; Jan Esch, Secretary & Board Representative; Debra Green, Treasurer. White Mountains: Wayne Harder, President & Board Representative.

Please see the Calendar of Events for the date of the next meeting in your Division.

chamPion home builders unveils brand-neW home For marine corPs vet

Page 6The Arizona Housing NewsletterJul - Aug 2016

Of the 500 plus homes built each year at Champion Home Builders’ Chandler, Arizona, facility, there’s one that has special

significance. That’s because it is the new home of Zahid Ali, a Phoenix-area Marine Corps veteran.

On July 26, Ali and his family were presented with keys to their new 1,680 sq. ft. residence as part of “Welcome Home,” the joint effort of Champion Home Builders, NextGen Home TV and Rebuilding Together. “Welcome Home” was created to help mark the 20th anniversary of Rebuilding Together’s “Kickoff to Rebuild” project.

From the porch of his new home, Ali shared with an audience of contributors and media the story of his life-changing tour in Afghanistan, and emphasized how grateful he and his wife are for their new home. The home features an expansive kitchen with solid surface countertops, an island, stainless steel appliances and modern planked ceramic floors. Also included: a luxury master suite, beautiful bathrooms, a pre-wired office, a custom exterior, and energy efficient features such as a tankless solarpowered water heater and durable metal shingle roof. The home is fully furnished, thanks to local and national donations.

Champion CEO Keith Anderson said, “It’s difficult to overstate the importance of the brave men and women serving in our armed forces. ‘Welcome Home’ is our way of acknowledging Zahid’s contribution to our security and our freedom.”

Ali was one of over 2,000 veterans that applied for “Welcome Home” by answering the question, “What does home ownership mean to you?”

But those 2,000 applicants, as well as Ali, weren’t the only veterans affected by “Welcome Home.” Nearly a dozen of Champion’s 150 employees in Chandler are military veterans.

Rick Boles, general manager of the Chandler plant, is himself a former Marine. He was heavily involved in the project and readily acknowledges the contributions of not only his fellow vets, but of every Champion associate whose efforts touched the Ali family’s new home.

“Our craftsmen put a tremendous amount of pride into every home we build,” Boles said, “but you could feel a special connection with this one in particular. This one was going to a brother-in-arms, so it meant a little more.”

Marine Corps veteran Zahid Ali and his family receive a welcome home

Champion home built in Chandler, Arizona, facility

Page 7The Arizona Housing NewsletterJul - Aug 2016

bill to reForm Federal housing assistance Programs suPPort Purchase oF mh

MHI reported that H.R. 3700, the Housing Opportunity Through Modernization Act, which gives the more than 2 million families that have a HUD Section

8 voucher the added flexibility of using the voucher to pay for the full annual cost of purchasing a manufactured home, has been signed into law by the President. Manufactured homes are a quality, energy-efficient and affordable housing choice in America that costs less than site-built houses.

“A Section 8 voucher holder will now have the option to use their federal housing assistance to cover the full annual cost of purchasing a manufactured home. This change provides families the opportunity to become homeowners, rather than only being allowed to use Section 8 vouchers for rent payments,” said Lesli Gooch, senior vice president of government affairs and chief lobbyist for the Manufactured Housing Institute (MHI). Under H.R. 3700, Section 8 vouchers can be used not just for the cost of leasing the land as previously allowed, but now also for other monthly costs of purchasing a manufactured home, including mortgage payments, property tax and insurance. The law doesn’t require a Section 8 recipient to use their voucher to live in a manufactured home, nor does it authorize use of a voucher for a down payment. Gooch added, “MHI commends Rep. Peter Welch (D-VT) for recognizing the importance of manufactured housing as an affordable housing choice that can help Section 8 voucher recipients become homeowners. We appreciate his hard work to include the language in H.R. 3700.” Rep. Welch was the author of the manufactured housing provision. For more than a decade, MHI has worked with a coalition of housing and advocacy groups urging passage of these reforms to the Section 8 program. Recently, MHI was a part of a coalition of more than 40 housing and advocacy groups advocating for passage of H.R. 3700. Joint activities included coalition calls and letters, meetings with key leaders on Capitol Hill and participation in a media campaign.

MHI Urges HUD to Exempt Existing MH Owners from Housing Choice Voucher Revisions

On August 15th, MHI submitted comments on HUD’s proposed rule “Establishing a More Effective Fair Market Rent” in the Housing Choice Voucher (HCV) program. HUD is in the process of exploring how best to use the program to encourage voucher holders to move to areas with higher opportunity and lower poverty. The HCV program, through local public housing authorities, assists very low income families to afford decent safe housing in the private market. HUD seeks to achieve this objective utilizing its small area Fair Market Rent (FMR) formula instead of the current 50th percentile Fair Market Rent formulation. The key difference between the two approaches is that the small area FMR is based on prevailing rents within a particular zip-code as opposed to a non-metropolitan county or metropolitan area. The HCV program can be used by manufactured homeowners towards land leases in communities. While HUD’s policy objectives are laudable, they simply don’t work for manufactured homeowners as they cannot move to a new location as easily other HCV holders who use the vouchers on rent. HUD asks whether current voucher holders should be exempt from small area FMRs due to the high costs associated with moving a home. MHI, in its comment letter, voices strong support for exempting existing homeowners from the new small area FMR provisions. The letter notes that the cost to move a home is between $2,500 and $8,000 and that any changes to current levels of voucher assistance could threaten a manufactured homeowner’s ability to meet land lease payments and other expenses, such as chattel loan payments. MHI’s comment letter can be found by clicking here.

Page 8The Arizona Housing NewsletterJul - Aug 2016

house oF rePresentatives reaFFirms suPPort For manuFactured housing

On July 6, 2016, in two bipartisan votes the U.S. House of Representatives voted to support manufactured housing. In particular, two amendments

were defeated that would strip important language from the Fiscal Year 2017 Financial Services Appropriations bill that would make necessary changes to the Dodd-Frank Act to ensure financing is available for consumers of manufactured housing. By defeating these amendments, the language to strengthen access to safe, affordable, and available financing for manufactured housing, while preserving important federal consumer protections, is included in the spending package. The defeated amendments would have struck two sections of the spending bill that were modeled after H.R. 650, the Preserving Access to Manufactured Housing Act. These critical sections of the bill had been inserted by an amendment offered by Rep. Fleischmann (R-TN) during the House Appropriations Committee's consideration of the legislation. MHI has been working with 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 House vote is a critical step in reversing the decline in lending to this source of affordable housing. MHI's government affairs team worked tirelessly with Appropriations Committee members, Committee leadership, H.R. 650 cosponsors, and state association executive directors - resulting in over 1,500 contacts to the Hill since February - to ensure the manufactured housing language was included in the House appropriations bill. The successful votes were the result of these efforts, and inclusion of this language in the appropriations bill will help position the language for passage before Congress adjourns. The first amendment, which was defeated by a vote of 167-255 (click here to see how your Representative voted), would have struck Section 637 of the bill that would prevent manufactured home retailers from unfairly being classified as "loan originators." Since the CFPB's rule on "loan originators" have gone into place, manufactured home retailers have been forced to stop referring consumers to different available lenders, and identifying potential lenders for the consumer, even though they do not make any money on the loan. Section 637 would ensure that manufactured home retailers are not unfairly considered "loan originators," provided they do not receive compensation for the referral. The second amendment, which was defeated by a vote of 162-255 (click here to see how your Representative voted), would have struck Section 638 of the bill that addresses the thresholds for which mortgage loans are considered "high cost." Since the CFPB's rules consider costs as a percentage of a loan, smaller size manufactured home loans could violate points and fee caps and be inappropriately considered "high cost" - merely because they are lower balance loans. Under the Dodd-Frank Act, the CFPB has the authority to adjust this threshold, but has chosen not to. As a result of the "high cost" designation and increased lender liability associated with it, many lenders have stopped making manufactured housing loans altogether and others have stopped originating loans under $20,000. Recent data from the Home Mortgage Disclosure Act tells the story about why this rule is harming consumers. Loans for site built homes have gone up by more than 5% while low balance loans for manufactured homes have gone down by more than 10% as a result of these regulations.

(Continued on Page 9)

Page 9The Arizona Housing NewsletterJul - Aug 2016

house reaFFirms suPPort For mh (Continued)"This is an important milestone for millions of working families and retirees who are currently being shut out of the market for quality, unsubsidized affordable housing" said Lesli Gooch, MHI's Senior Vice President for Government Affairs and Chief Lobbyist. H.R. 650, the Preserving Access to Manufactured Housing Act, is bipartisan legislation introduced by Reps. Fincher (R-TN), Sewell (D-AL), Barr (R-KY), and Sinema (D-AZ). The bill was passed by the House of Representatives on April 14, 2015 by a vote of 263-162. The companion Senate bill, S. 682, is sponsored by Senators Donnelly (D-IN), Toomey (R-PA), Manchin (D-WV), and Cotton (R-AR). The bill was included in S. 1484, the Financial Regulatory Improvement Act of 2015, which is sponsored by Senate Banking Committee Chairman Shelby (R-AL) and was passed by the Banking Committee on June 2, 2015.

HUD Secretary Castro was challenged about HUD's new installation standards at a congressional hearing last Wednesday. Speaking at the House Financial

Services Committee, Representative Bruce Poliquin (R-ME) raised concerns to the Secretary about HUD's new interim guidance on frost-free foundations and frost-protected shallow foundations. MHI has been telling HUD that the guidance goes beyond what is required in the minimum installation regulations since the new requirements came out in April.

Rep. Poliquin explained to Secretary Castro that manufactured housing is critical to the supply of affordable housing in Maine, where one in eight of his constituents reside in a manufactured home. He said, "You came out with new rules...telling our state how to deal with building a frost free foundation...if I may Mr. Chairman, there's nobody in the country, other than the folks in the state of Maine, who knows winter [and] how to build a frost-free wall. I hope we can work such that our state regulators can continue to have the flexibility to do what the law says." MHI wants HUD to clarify questions regarding compliance with installation standards in freezing climates. Many MHI members have expressed concerns, including at the recent Summer meeting in Indianapolis, that the guidance represents a restriction of discretion generally afforded by the HUD Code installation standard. The HUD Code allows for other alternative methods that may or may not have the prescriptive requirements outlined in the interim guidance. Rep. Poliquin's line of questions helped to elevate the issue to the HUD Secretary, who agreed to work with him on the issue. As a follow up to its outreach directly to HUD, MHI has been working behind the scenes with Rep. Poliquin, the Financial Services Committee, and on Capitol Hill to elevate concerns this interim guidance has posed and to protect the industry from such harmful regulations.

Problems With neW hud installation requirements raised at congressional hearing

Page 10The Arizona Housing NewsletterJul - Aug 2016

mhi calls on the doe to reduce imPact on home Prices and imPlementation challenges Posed bY its energY conservation ProPosal

On July 13th, MHI participated in a public meeting hosted by the Department of Energy (DOE) regarding its Notice of Proposed Rulemaking (NOPR) for

Energy Conservation Standards for Manufactured Housing.

MHI expressed concern that the proposed standards will increase the cost of a manufactured home and will be a burden to many lower-income homebuyers, who already struggle to obtain the necessary housing credit to afford to purchase a home. While the DOE contends that the proposed standards would result in increased monthly utility savings for consumers, MHI argued that the costs of the regulatory process outweigh the benefits in savings. MHI also argued 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 reasoned that the proposed standards should not be finalized until DOE and HUD can determine an efficient and practical enforcement strategy.

The proposed standards are based on a flawed statute – the Energy Independence and Security Act (EISA) of2007. EISA required the energy conservation standards to be based on the 2015 International Energy Conservation Code (IECC), while also considering cost-effectiveness criterion. However, the authors of IECC did not consider the economic impact of that standard on manufactured homes. As a result, the two criteria are incompatible.

As part of their Rulemaking process, the Department of Energy created a manufactured housing Working Group called the DOE Appliance Standard Rulemaking Advisory Committee (ASRAC) Working Group on Manufactured Housing. It included representatives of manufacturers, specialist manufactured housing equipment and materials suppliers, manufactured housing homeowner advocates, utilities, state regulators, energy efficiency advocates, and environmental advocates. Several MHI members served on the task force.

To deal with the flaws in EISA, the ASRAC Working Group started consideration with the IECC before considering the cost effectiveness of individual measures. As a part of the process, an exhaustive and detailed cost analysis was conducted by SBRA, using cost data from a representative sample of large and small home manufacturers. In October 2014, the ASRAC Working Group forwarded its energy efficiency recommendations to DOE. The recommendations were based on the 2015 edition of the International Energy Conservation Code (IECC), the impact of the IECC on the purchase price of manufactured housing, total lifecycle construction and operating costs, factory design and construction techniques unique to manufactured housing, and the current construction and safety standards set forth by U.S. Department of Housing and Urban Development.

For detailed information about the standards recommended by the ASRAC Working Group on Manufactured Housing, click here. Following these recommendations, MHI’s Members of the ASRAC Working Group and DOE provided a presentation to MHI members at its 2015 Winter Meeting in New Orleans. To see the presentation, click here. MHI also continues efforts to on Capitol Hill to eliminate the duplicative and burdensome regulatory framework imposed by EISA.

Page 11The Arizona Housing NewsletterJul - Aug 2016

register todaY and save For mhi’s 2016 annual meeting

The MHI Annual Meeting will be held on September 25-27 2016, at the Paséa Hotel & Spa in Huntington Beach, CA.

The MHI Annual Meeting is the largest membership meeting of the year and provides an excellent opportunity to exchange information with industry friends and stay current on housing marketplace trends.

On Monday morning, hear from Patti Boerger, MHI Vice President of Communications, on Keys to an Effective Media Interview -- What do you do when a reporter calls? Preparation is the key to being comfortable with media interviews, even if the topic is a negative one. Learn some tips and tricks for getting across your key points, answering tough questions and delivering credible messages. MHI will hold elections for its 2017 officers during the Annual Membership Meeting luncheon on Monday afternoon. On Monday evening during the Annual Awards Dinner, special awards will be presented to those individuals that have gone above and beyond for the industry during the last year. The prestigious MHI Chairman’s award, State Association Executive of the Year Award, Frank Walter Standards Award, and Jim Moore Excellence in Communications Award will all be presented. Your involvement in MHI and active participation in working to find solutions to problems are essential to the future of the industry. Your registration fee includes the following:

• Monday Morning Breakfast

• Networking receptions on Sunday and Monday evenings

• Monday Luncheon and Annual Membership Meeting

• Monday Evening Awards Dinner

• Tuesday Morning Breakfast

• Committee, board and division meetings throughout that provide MHI members the opportunity to provide input on important industry issues

Click here for information on this event, to view the schedule and to register. Call reservations at 844-814-2483 to reserve your room at the Paséa Hotel & Spa or click here to reserve your room online. Be sure to ask for the special MHI rate of $249 per night. The early-bird deadline for both the Annual Meeting and hotel reservations is August 26th.

Page 12The Arizona Housing NewsletterJul - Aug 2016

mhi holds successFul 2016 summer meeting

MHI held its 2016 Summer Meeting June 26-28 in Indianapolis, Indiana, with over 100 attendees participating in two and one-half days of business and division meetings. MHI would like to recognize and thank its

member sponsors for their generous financial support of the 2016 MHI Summer Meeting. During the breakfast and general session on Monday, June 27th conference attendees had the opportunity to hear from Senator Joe Donnelly (D-IN). Senator Donnelly is the sponsor of MHI’s priority legislation, the Preserving Access to Manufactured Housing Act, which seeks to increase access to financing for consumers looking to purchase a manufactured home. In addition, during his time in the House of Representatives and now in the Senate, Senator Donnelly has led the effort to ensure that Fannie Mae and Freddie Mac are required to create a secondary market for chattel loans. Upon joining the Senate, he outlined an “Opportunity Agenda” to create more jobs and strengthen Indiana’s economy. His plan made manufactured housing an integral component of this agenda. The Senator was introduced by MHI Chairman Tim Williams, who thanked him for supporting manufactured housing and fighting for common sense in Washington policies.

2016 ncc Fall leadershiP Forum: the time is noW

The fourth Fall Leadership Forum is shaping up to be the most exciting yet. The meeting dates are November 1-3 which

puts the meeting exactly one week before the U.S. presidential election. Click here to register, make your hotel reservations and for more information.

We are pleased to announce that Wednesday’s keynote speaker is Neil Newhouse, a partner and co-founder of Public Opinion Strategies, a national political and public affairs research firm which has been described by the New York Times as “the leading Republican polling company” in the country. Neil has twice been named “Pollster of the Year” by the American Association of Political Consultants and was lead pollster for Gov. Mitt Romney’s 2012 Presidential campaign. Other session offerings will include a moderated panel discussion titled “State of the Market: Community Financing Trends in 2016 & Beyond” which will examine trends in community financing, acquisitions, and deals in the market. Another session will explore the notion of “big data” within manufactured home portfolios, while “The Worst Deal I Ever Did” session will be a moderated discussion of best practices that were learned when things didn’t go as planned. And, nationally acclaimed economist Elliot Eisenberg, Ph.D., will provide his commentary on the overall U.S. economy and housing trends. This meeting has become an industry destination meeting for unparalleled networking opportunities. With 2 nights/1.5 days of programming, this event’s low “out of office” time provides for high-impact ideas for your business.

(Continued on Page 13)

Page 13The Arizona Housing NewsletterJul - Aug 2016

Senator Donnelly spoke to conference attendees about his support for manufactured housing and his efforts in Congress to promote common sense legislation. Senator Donnelly was a champion of manufactured housing during his time in the U.S. House of Representatives, and he shared that upon moving to the Senate his decision to serve on the Banking Committee was driven largely by his desire to help the manufactured housing industry. He discussed the important role of manufactured housing for not only providing affordable housing options, but also as vital to job growth.

Monday’s featured luncheon speaker was Dr. Stephen Cooke, Research Economist, Alward Institute for Collaborative Science. Under the direction of Jenny Hodge, Vice President of Research & Market Analysis, MHI worked with the Alward Institute, an economic consulting firm, to perform a study of the economic contribution of manufactured housing on the United States economy. There are many caveats to this type of research, not the least of which is that one study cannot answer every question. Dr. Cooke, shared his approach and summary findings with the attendees.

After a brief discussion of the mechanics of his approach, Dr. Cooke explained to the group that the focus of his study was on the manufacturing segment of the industry as it is specific, quantifiable, identifiable and explicitly defined by NAICS 321991 – which is a complex way of saying there is, in fact, data collected by the Census Bureau and other government agencies from manufacturers that is specifically and quantifiably from within the manufactured housing industry. Similar data is collected for all types of businesses and segments within other industries; it is a generally accepted and practiced approach to economic contribution studies. Thus, the research focus narrowed to the question of the economic impact nationally, and at a state level, of the manufacturers within the manufactured housing industry.

Based upon his analysis, in 2013, the manufactured housing manufacturers contributed $2.6 billion of economic activity to the United States’ gross domestic product. In 2013, this sector was further responsible for almost 39,000 jobs. It is worth noting that this type of contribution model includes “backward linkages” of activity to include those inputs necessary for the manufacturing activity; in other words, the $2.6 billion of economic activity includes purchases of lumber, nails or other services that are part of the manufacturing cycle to produce a home.

“We undertook this project because it is important to be able to talk about economic impact within our advocacy efforts,” said Hodge. “We need to build a solid foundation of basic facts and figures about the importance and relevance of the industry.” Hodge further noted, “This is only one study, of one aspect. It is our goal to round out the picture and examine all aspects of the industry in order to provide a 360 degree review of the impact – it is a starting point.”

Hodge is working with Dr. Cooke to refine state-by-state numbers. The goal is to add the information to the state data sheets that MHI uses and to share with the state associations as soon as is practical.

Monday afternoon’s education session featured Jason McJury, PE, Structural Engineer and Monitoring and Compliance Team Lead at the Office of Manufactured Housing Programs at HUD. McJury has been involved in the regulatory programs for the manufactured housing industry for more than 20 years and has worked for a third-party IPIA as both a DAPIA staff engineer and in-plant inspection representative. He also has spent more than a decade working with HUD’s monitoring and inspection contractor for the industry. Jason was joined by MHI members and staff.

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Page 13The Arizona Housing NewsletterJul - Aug 2016

The first topic highlighted during the afternoon session was the HUD Manufactured Housing Installation Program and Frost Free Foundation Guidelines which began with a presentation made by McJury and followed by a panel discussion by MHI members David Tompos, President and CEO of NTA, Inc.; Manny Santana, Director of Engineering, Cavco Industries; and Jeff Legault, Director of Product Design and Engineering, Skyline Corporation. MHI staff member Lois Starkey, Vice President of Regulatory Affairs, moderated the panel discussion. Click here to view the presentation made by Jason McJury.

The second topic focused on the On-Site Completion of Construction of Manufactured Housing Final Rule. Once again, McJury provided attendees with a presentation on the rule, detailing how it will affect manufacturers and on-site processes. A discussion after the presentation was moderated by MHI staff member Tom Heinemann, Vice President of Federal Regulatory Affairs, with MHI panel members Bob Gorleski, General Manager, Manufactured Structures Division, PFS Corporation; Al Spencer, President, Dakota Land Homes; and John Weldy, Director of Engineering, CMH Manufacturing. Click here to view the presentation made by Jason McJury.

mhi holds successFul 2016 summer meeting(Continued)

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: info@azhousing.org Web: www.azhousing.orgKen Anderson, President - ken@azhousing.org

Kimberly Merrill, Director of Operations - kim@azhousing.org

Calendar of Events

SEPTEMBER

TBD White Mountain Division Meeting Show Low, AZ Wayne Harder, Division President wayne.harder@claytonhomes.com

24-25 ThanksgivingHoliday-OfficesClosed

30th Government Relations & Zoning Committee 30th Board of Directors Meeting

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

31st Government Relations & Zoning Committee 31st Board of Directors Meeting

5th LaborDay-OfficesClosed

13th Phoenix Division Meeting, 12:00 pm MHIAZ Office, Tempe Kory Beickel, Division President kbeickel@countryplacemortgage.com

27th Tucson Division Meeting, 6:30 pm Mimi’s Cafe at The Tucson Mall Scott Townsend, Division President stownsend@westernamericanhousing.com

NOVEMBER

AUGUST

JUNE 2017

OCTOBER