Former HUD/FHA Trump Admin’s Brian Montgomery Manufactured Housing Exposé – Trump Derangement Syndrome, Conflicts of Interest, Revolving Door, Iron Triangle Case Study Analysis; plus Manufactured Home Stock Updates

FormerHUDFHATrumpAdminBrianMontgomeryManufacturedHousingExposéTrumpDerangementSyndromeConflictsInterestRevolvingDoorIronTriangleCaseStudyAnalysisPlusManufacturedHomeStockUpdate

I would say I have no intention of retiring anytime soon. So, I’m going to keep working. We’re going to probably stand up a consulting firm with some of my former colleagues at HUD and at FHA,” former HUD Deputy Secretary Brian Montgomery told RMD in February 2021. DSNews said on May 5, 2021 that Montgomery “is the only person to be confirmed to lead the FHA twice.” That “twice” was during the Bush, Obama, and Trump years says left-leaning Wikipedia – Montgomery is the only individual to serve as FHA Commissioner twice and under three U.S. Presidents (Bush, Obama, and Trump).” Also on 5.5.2021, RMD noted that Montgomery did launch that “new endeavor, Gate House Strategies LLC, will focus on Federal Housing Administration (FHA)/Government National Mortgage Association (GNMA, or “Ginnie Mae”)/HUD and Fannie Mae/Freddie Mac policy and programmatic compliance and litigation support including origination, servicing, claims, and property disposition; strategic growth opportunities; technology; public housing; and disaster recovery.” Montgomery’s escapades are an apparent part of what Washington insiders and others in the know call the “revolving door.” That revolving door plays a role in what is known as the “Iron Triangle.”

The phrase “revolving door” describes the practice of public officials or employees abandoning public service for lobbying positions,” says NSCL. Study on August 30, 2020 said “The iron triangle is a unique relationship between bureaucracy, congressmen, and lobbyists that results in the mutual benefit of all three.”

Capitalism without competition isn’t capitalism,” said Joe Biden as part of a recent White House executive order (EO) signing statement. In the Topsy Turvey, upside-down, inside-out world of Washington, D.C., what is said today might be contradicted by behavior immediately before or shortly thereafter. Unpacking big business, big media/tech, and big government requires sufficient quantities of whiskey, mental gymnastics, or a Lewis Carroll’s “through the looking glass” mentality.

 

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Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article.

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In one sense, Biden appointee HUD Secretary Marcia Fudge and her stunning recent statement about manufactured housing and zoning is hardly new. If the Manufactured Housing Institute (MHI) were a ‘real’ trade group advocating – as it claims – for “all segments of” manufactured housing and factory-built housing, the statements by HUD Secretary Marcia Fudge would have been a three-alarm fire.

 

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https://www.manufacturedhomepronews.com/hud-sec-marcia-fudge-zoning-manufactured-homes-until-we-start-to-address-this-we-are-going-to-continue-to-be-perpetually-in-this-kind-of-situation-news-analys/

But what’s bad news to most independents and consumers of affordable housing that dream of homeownership, in Topsy-Turvey DC world may be good news to consolidators at MHI. So what did MHI do with the vexing video recorded statement by Fudge that directly contradicts MHI’s stated policy on zoning and placement issues? Why, celebrate it of course as “MHI in Action,” of course! That vexing quote shown to the right of Sec. Fudge would naturally not make the editorially cut at MHI headquarters in Arlington, VA. You can’t make this up, but you can grab your favorite beverage, rub your eyes, sit back and dig into learning how this works to avoid the next apparent – and often costly – hoodwink. To put Fudge and MHI’s actions into context, it is useful to look at Brian Montgomery as well as some relevant MHI history. These separate tracks will all meet further below.

 

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Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browser’s back key to return to the article.

 

 

Considering the case of former Trump Administration appointee at HUD and the FHA – Brian Montgomery. Montgomery, is a useful example of how the “revolving door,” “iron triangle” and “deep state” are at work in the federal government under both Republican as well as Democratic administrations. His LinkedIn profile says: “With over 30 years of public/private sector experience, including his first term as Commissioner from 2005 to 2009, Montgomery brings to HUD a deep knowledge of housing issues and vast experience spearheading large-scale policy initiatives.” Montgomery is a possible example of the quip, “it is not what you know, its who you know.”

 

A segue for newcomers and longtime MHProNews readers alike will serve to illustrate the relevance of the case study herein of Brian Montgomery and how he fits into the dreamy world of Alice in Manufactured Housing Institute Land.

Nonprofit trade associations in manufactured housing might say or do something that is polite and political, regardless of what their authentic sentiments might be. For example.

There are Manufactured Housing Executives Council (MHEC) executives, who are routinely Manufactured Housing Institute (MHI) state association “affiliates,” as MHI refers to them. At one time more independent, those state affiliates now demonstrably bend the knee (see below and linked, interior and cross-linked for ample examples) at the altar of Berkshire Hathaway, Clayton Homes, 21st Mortgage and their MHI allies.

Why do the manufactured housing industry state executives bend the knee to Berkshire and their allies at MHI?

As a longtime MHEC member said, Clayton Homes dominates numerous states through what was referred to as “attrition.” To publicly challenge Clayton, or their satirical handmaid MHI, is to risk one’s job as a state association executive. In fairness for many, that would be casting away years or, in some instances, decades of working in manufactured housing.

So, the most that some are willing to do is nod their head and smile at the insiders while providing a periodic tip off the record. That noted, those tips have routinely stood the test of time, unlike numbers of Trump Derangement Syndrome (TDS) purported “sources,” whose ‘off the record’ tips might have fallen apart either quickly or in the due course of time. Two examples of such potent and enduring insights to MHProNews are shown and linked below.

 

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Note, there were more retailers lost between 2009 and 2011. What is true in AZ is routinely true in other states, and for similar reasons. That was the reason that the statement was made. To explain how and why Clayton, and by extension, 21st Mortgage/Berkshire Hathaway and their allies, dominate.

 

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https://www.manufacturedhomepronews.com/how-gold-rules-tim-williams-21st-mortgage-mhi-vp-state-execs-conference-call/

 

In hindsight, How Gold Rules was obliquely confirmed by MHI’s former vice president of government affairs and lobbyist Jason Boehlert told MHProNews. Boehlert’s comment below exposed the folly of the once hysterically pursued Preserving Access to Manufactured Housing Act.

 Preserving Access dominated the MHI agenda for years at the cost of millions of dollars. Tim Williams, President and CEO of Berkshire Hathaway owned 21st Mortgage Corp, sister brand to Clayton Homes. He previously served as MHI’s chairman. Williams still sits in the MHI Board of Directors, which insiders grasp is almost like a who’s who in the MHI universe. Those on the list below – the base image being from the MHI website with the comments by MHProNews – are ether in MHI circle of power, part of the purported amen corner or are genuflecting to the powers that be at Alice in Manufactured Housing Institute Land (a.k.a. MHVille).

 

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Boehlert, by accident or design, let the proverbial cat out of the bag with this comment. He was naturally replaced by Lesli Gooch, who is now their CEO. At MHI, telling the truth may not be good for someone’s career.  In the Hermann Goering playbook, if you are going to lie, lie boldly and often enough until the lie is believed.  The case can be made that paltering, mendacity, and job security go hand in hand in Alice in Manufactured Housing Institute Land (a.k.a. MHVille).
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Margarite Nader, CEO at Equity LifeStyle Properties (ELS) called MHI ‘their’ association. Marty Lavin said that ‘the association’ (MHI) works for the interests of the industry only to the extent that it benefits the “big boys” at MHI. The reverse of Lavin’s quip applies too. For newcomers and veterans alike, to grasp why manufactured housing is at such a low ebb during an affordable housing crisis, someone must learn to think Topsy Turvey. Or, someone must realize that there are comfortable liars and those engaged in paltering in Alice in Manufactured Housing Institute Land, a.k.a. MHVille.

But none of those corporations, representatives, or executives carry as much weight as the Berkshire brands do at MHI. Try hard to find an example since 2009 of a move that MHI made without Berkshire brand-backing. Go ahead and look. We’ve got time…

Satirical rhapsody, sardonic wit, or whisky are useful in discerning reality in MHVille. An example of just how hyped Preserving Access was is provided by the pull quote from 21st’s Williams below.

 

WhyofCourseThePeopleDontWantWarThePeopleCanAlwaysBeDrugAlongTellThemTheyAreBeingAttackedHermannGoeringGermanNaziOfficerNuremburgWarTrialQuoteQuoteableQuoteMHProNews
Apply that risk – threat – analogy to manufactured housing. Consider that with respect to the purported threat Tim Williams claimed was ahead if the Preserving Access to Manufactured Housing Act was not enacted into law. Or with respect to the U.S. in Iraq, Afghanistan, Libya, or COVID19, or…
TimWilliamsQuoteIfWeDoNotReceiveReliefDoddFrankFinancingIndustryDoomedManufacturedHomeOwnersVeryFewOptionsSellingHomesFormerManufacturedHousingInstituteChairManufacturedHomeProNews
Tim Williams, MHI’s former Chairman, made it sound like the industry would utterly collapse if the Preserving Access to Manufactured Housing Act didn’t get enacted into law. But the bill NEVER passed. It is now NEVER mentioned by MHI. Why is that so? See the interview, linked here.

 

Doomed? Seriously? 

Over 8 years after Williams made that remark in an interview linked here, the manufactured home industry is still standing. Loans are still being made on manufactured homes. Preserving Access never passed. When was the last time MHI mentioned that bit of relatively recent history? 

As How Gold Rules detailed, Williams got the MHEC Execs/MHI state association affiliates on the horn in a conference call. Per multiple sources, he demanded – and got – them to all fall into line in pursuit of Persevering Access.

With annual treks to Washington, D.C. to lobby on behalf of Preserving Access, routine emailed and in-person updates from Berkshire’s maid servant – MHI – plus the same coming from other state associations, the illusion was nearly complete. But Williams’ dark prediction of lending doom – which is the same as doom for new home sales – was proven obviously wrong. As was noted, Preserving Access never passed. Yet manufactured housing still exists. In fact, the industry is selling more manufactured homes now than then. Was Williams exaggerating for effect? Lying to get the illusion started? Examine the evidence and history. Decide for yourself. “We Provide, You Decide.”©.

But to show an example of just how much brown-nosing occurs in MHVille, there is no need to look beyond the example of the “other” Tim Williams.  Williams, the executive director of the Ohio Manufactured Homes Association (OMHA).

 

TimWilliamsPicOHmanuHomeAssocLoQuote100PercentBehindGoochBowersoxHodgesManufacturedHousingInstitute100PBehindBerkshireMHImharrManuHousingAssocRegReformManufacturersMHProNews
https://www.manufacturedhomepronews.com/omhas-general-counsel-elizabeth-birch-raises-viabilityperception-of-manufactured-housing-birch-and-tim-williams-respond-to-allegations-plus-manufactured/

 

That enthusiastic French kiss of several ample derrieres came after Williams and thousands of other industry pros were exposed to the tipster documented conflicts of interest of CEO, Lesli Gooch, Ph.D. When MHI’s current – for how long? – CEO Gooch was exposed by an insider who provided pages of documentation for apparent conflicts of interest for pay, MHI leaders yawned. Ohio’s Tim Williams fawned.

 

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PackageMailedtoMHProNewsPublisherDocumentsAllPertaintoLesliGoochNowMHICEO
https://www.manufacturedhomepronews.com/masthead/tipsters-uncontroverted-documentary-evidence-reveals-new-manufactured-housing-institute-ceo-lesli-gooch-controversial-quagmire/
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https://www.manufacturedhomepronews.com/whistleblowers-documents-on-lesli-gooch-manufactured-housing-institute-ceo-new-discoveries/

That was an absurd display of public fealty. 

Only wit, whisky, satire, somber and detailed fact checks and analysis, or a Topsy-Turvey understanding of MHVille could possible convey that Williams, later joined by the OMHA general counsel – Elizabeth Birch – publicly prostrated themselves and doubled down on in a formal letter. That letter oddly said that MHI is fighting for the industry’s “viability.” Once more, the very survival of the industry is at stake? And Birch/Williams think that MHI is going to provide that – based on what evidence? What precisely has MHI accomplished with millions spent in members dues?

You simply can’t make this stuff up, but you can drink. For those trying to shine an authentic light on how nonsensical much of this is, one must turn to a mix of comedy and facts. 

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https://www.manufacturedhomepronews.com/tim-williams-calls-lesli-gooch-superb-but-latest-tip-reveals-additional-mhi-ceo-gooch-controversy-connected-documents/

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https://www.manufacturedhomepronews.com/masthead/when-the-perfect-is-the-enemy-of-the-good-bernie-madoff-politically-correct-thinking-in-manufactured-housing-gone-awry-exposing-corruption-deadly-covids-silver-lining/

But in fairness, it isn’t just absurdity by MHI.  Billionaires’ rules for hiring appear to go out the window too. If you need a liar or someone comfortable with routine paltering, you might as well hire a failed candidate and D.C. lobbyist, right?

After being exposed for apparent double-dipping and conflicts of interest, Kevin Clayton, and MHI Chairman and Clayton General Counsel Tom Hodges themselves had Gooch join them for a road trip meeting with HUD Secretary Ben Carson. Was that punishment? Reward? A signal to others in MHVille? What?

 

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Photo credit, MHI. Left – Tom Hodges, Clayton Homes General Counsel and MHI Chairman, Lesli Gooch, CEO MHI. Flanking HUD Secretary Ben Carson are Kevin Clayton and Gov. Kay Ivey (AL-R). Note: MHI’s photo didn’t identify any of those shown above. https://www.manufacturedhomepronews.com/warren-buffett-lieutenant-kevin-clayton-shows-off-hud-secretary-carson-touts-crossmod-manufactured-housing/

 

Meanwhile, time and again, MHI’s leaders ducked the hard questions once the nature of the deception was learned and revealed.  That’s despite the posturing by outside MHI attorney Goch, who may have some things in common with the other Gooch

 

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Hah! MHVille Balderdash! Sell it to someone who will buy this drivel! https://www.manufacturedhomepronews.com/sun-communities-official-q2-2021-results-inversion-spencer-roane-letter-manufactured-housing-institute-scientia-potentia-est-plus-manufactured-home-stock-updates/

 

Even as MHI claims to be working to advance the cause of ‘more lending’ in manufactured housing via the long sought, but never fulfilled Duty to Serve (DTS) manufactured housing by the Government Sponsored Enterprises (GSEs) of Fannie Mae and Freddie Mac, 21st’s Williams remarked to members in a meeting that he is glad that their pilot project failed.

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https://www.manufacturedhomelivingnews.com/why-so-few-affordable-u-s-homes-federal-other-research-monopolies-moats-manufactured-housing-impacts-renters-current-manufactured-homeowners-conventional-homeowners-most-americans/ and also https://www.manufacturedhomepronews.com/masthead/dems-provide-revealing-clayton-info-kevin-clayton-ceo-clayton-homes-federal-testimony-yields-apparent-agreements-with-mharr-concurs-with-manufactured-housing-institute-berkshire-hathaway-fhfa-and/
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See his context and the full ‘debate’ context in the report, linked here. https://www.manufacturedhomepronews.com/epic-kevin-clayton-moat-rant-analysis-lesli-gooch-debate-defense-doug-ryan-charge-end-clayton-monopoly-over-manufactured-housing-breaching-buffett-berkshire-clayton-monopolistic-moat-method/
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Neither Williams, MHI, nor their inside or outside attorneys denied the remark. Perhaps wisely so. A few months later, the FHFA released the GSEs new plan which proved Williams words to be true. Which begs the question. Other than Iron Triangle style collusion, how is it possible that Williams knew what the GSEs and FHFA would do? https://www.manufacturedhomepronews.com/tim-williams-ceo-of-berkshire-owned-21st-mortgage-corp-and-manufactured-housing-institute-board-member-makes-stunning-admission/ But see also, this report which frames the issue in even more laugh until you cry stunning detail. https://www.manufacturedhomepronews.com/masthead/bat-guano-the-government-wants-high-quality-low-cost-housing-and-manufactured-housing-provides-that-product-warren-buffett-per-manufactured-housing-institute-examini/
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https://www.manufacturedhomepronews.com/omhas-general-counsel-elizabeth-birch-raises-viabilityperception-of-manufactured-housing-birch-and-tim-williams-respond-to-allegations-plus-manufactured/
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Does this sound like MHVille’s slogan?
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A lie told boldly enough, often enough, and with enough of an echo chamber can be convincing. Says who? Experts on the topic of paltering, among others.

ElizabethHolmesJoeBidenTheranosScandalPicsItsTheIllusoryEffectWhereYouRepeatLieEnoughTimesPeopleBelieveItEspeciallyIfCredibleNamesSurroundProductProjectQuoteMHProNews1WarrenBuffettPhotoPresidentBarackObamaPhotoMemeCartoonManufacturedHousingIndustryMHProNews

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You can report it. You can mock it. You can’t make this stuff up. It is the truth hiding in plain sight. https://www.manufacturedhomepronews.com/warren-buffett-declared-class-warfare-buffett-says-fellow-billionaires-were-winning/
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Note tipped comment was months before the formal announcement by Fannie and Freddie to FHFA that their planned pilot would not launch. Once again, those insider tips to MHProNews provided correct. Once again the reason that whisky and other forms of alcohol flow at MHI meetings is revealed. Someone can lie to themselves or others only so much without a pain killer. After all, Kevin Clayton said it. At least 7,500 independent retailers, numerous factories, and others that once thrived later died due to a lack of lending. The blinding hypocrisy is matched only by the blinding propaganda that only whiskey in sufficient quantities can cover.

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The industry did slowly recover from this point, but consolidation and business failures were occurring too. A pro-MHI, pro-Clayton source, Ken Corbin claimed that the number of lost ‘street’ retailers was 10,000, not 7,500 as Kevin said. Other sources suggest that the number of lost retailers since the letter below may be 20,000. That said, the case can be made that at best this is paltering. But it mocks and masks the pain of untold thousands of professionals who lost their life’s work, often following the letter from Tim Williams shown below. You can’t make it up, but you can report it or poke fun at it, whatever.
21stMortgageCorpLogoLetterHeadTimWilliamsJan30.2009Analysis3.29.2021AllegedExamplesAntitrustRICOViolationsMHProNewsFactCheck
https://www.manufacturedhomelivingnews.com/dodd-frank-and-manufactured-home-financing-the-place-where-good-intentions-and-unintended-consequences-collide/ Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browser’s back key to return to the article.
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In hindsight, it should have been obvious that Preserving Access would never pass. Warren Buffett said he was in favor of Dodd-Frank. He supported Barack Obama twice. Buffett’s grandson served in the Obama White House. Obama said he would veto Preserving Access if it hit his desk. Restated, there was no apparent chance for the bill to pass given those and other known dynamics. That raises the question – were MHI leaders merely naïve? Or were they wearing down the industry’s independence through a long and protracted battle that was never won and not meant to be won? Either of those possibilities looks bad for MHI and its leaders. Is it any wonder that Jason Boehlert left MHI – after letting the ‘cat out of the bag,’ and then Lesli Gooch, Ph.D., took his place?

 

The fact that this out in the open outrage was only seriously discussed on this platform and our MHLivingNews sister site only underscores just how deeply industry pros must bow in fealty. As an independent told MHProNews, “They think they own us.”  By being silent, numbers hope that they won’t be the next company targeted for elimination. It is so outrageous, yet most pretend to each other at MHI and their ‘affiliates’ meeting that such evidence does not exist. Wine, whiskey, and paid-vacation-like perks, for some, are how gold rules. With other trade publishers demonstrably unwilling to speak out directly against these outrages, reading here is like entering a different dimension. Fans of the original Twilight Zone are among those who might appreciate just how much gaslighting and goofy farce occurs in our once far-greater profession.

 

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https://www.manufacturedhomepronews.com/hud-secretary-marcia-fudge-manufactured-housing-institute-mharr-and-manufactured-housing-not-a-fighting-industry-true-or-false-plus-manufactured-housing-stoc/

But in fairness to all, it is not merely our profession. 150 in media, academia, and entertainment signed a joint statement about a year ago decrying the poor state of modern journalism. In doing so they first had to bow at the later of Trump Derangement Syndrome. Without the de rigueur rite of passage, the balance of their letter might never have been published, much less read.

 

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https://www.manufacturedhomepronews.com/the-way-to-defeat-bad-ideas-is-by-exposure-argument-and-persuasion-not-by-trying-to-silence-or-wish-them-away-jk-rowling-gloria-steinem-noam-chomsky-150-others-decry-censorship-in/
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So, in that broader context of hooey and brownnosing in mind, one can now plunge – hopefully, with drink in hand – into how Brian Montgomery presaged what HUD Secretary Marcia Fudge recently did, as was documented by CSPAN and detailed only by MHProNews. 

 

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MHProNews apparently stood alone in trade media raising these evidence based concerns. In fairness to trade associations, they have to play politics to a certain degree. But trade media, if it is authentic, should feel free to follow the facts and report and/or mock reality as necessary. https://www.manufacturedhomepronews.com/trump-administration-asked-to-withdraw-brian-d-montgomery-nomination-over-conflicts-of-interest/
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https://manufacturedhousingassociationregulatoryreform.org/assistant-secretary-brian-montgomery-removal-of-obsolete-and-superseded-guidance-documents-letter/

Note: this exchange below followed the public MHProNews report above linked here. It is important to note that we follow the facts, evidence, reason, etc. regardless of party or favor. 

Furthermore another relevant reference will be examined linked below. It cites statements by MHI, MHARR, the Trump White House, and others.

 

HUDsBrianMontgomeryWilliamBillMatchneerExposeIfShoeFitsAffordableHousingManufacturedHomesImpactingAmericanDreamsMHProNews
https://www.manufacturedhomepronews.com/huds-brian-montgomery-william-bill-matchneer-expose-if-the-shoe-fits-affordable-housing-manufactured-homes-impacting-american-dreams/

That said, this Q&A is being re-published now a year after it was received. But note that even after publishing this exchange, others in our profession – per Google on this date – ignored it. They have not touched this topic.  That’s another story for another time.

 

HUD Response to Federal “Enhanced Preemption” for Manufactured Homes, FHA Loan Exclusive, as Mainstream Housing Prices Surge Despite Pandemic, Unemployment Crisis

HUD-FHA-BrianMontgomery2postsEnhancedPreemptionManufacturedHousingInstituteMHARR-MHProNewsNotOtherTradeMedia

 

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The letter to Richland is found here, and was requested by that state’s executive, Jen Hall. So why wouldn’t MHI promote it’s use? Indeed, why didn’t MHI ask for this on the Bryan, TX case? MHI can’t have it both ways. They are either truly trying to promote “enhanced preemption,” or they are mind bogglingly forgetful, incompetent – or they are engaged in a charade.  Ponder this. When MHARR issues a letter to members and readers, it is published on their website. By contrast, when MHI sends out an email to members, it is routinely not published on their website. What are the afraid of? That someone might line up past promises with present realities? “We Provide, You Decide.” ©

 

MHProNews Exclusive with Brian Montgomery, while he was still FHA Commissioner

MHProNews Q) For Commissioner Montgomery. Lower cost “affordable housing” will be more important than ever after lockdowns are eased. For approaching two decades after the passage of the Manufactured Housing Improvement Act (MHIA) of 2000, the “enhanced preemption” provision has been woefully underenforced. Given the inevitable surge in the need for more affordable homes, and HUD Secretary Carson has repeatedly stated support for the use of more manufactured housing, will “Enhanced Preemption” of manufactured housing become a focus for HUD? If not, why not?

 

Per HUD’s emailed-for-mutual accuracy response [highlighting has been added by MHProNews, but the text is as in the original response]:

QuoteSignSymbol100x156A) HUD understands that effective implementation of preemption is critical to the success of the manufactured housing industry and the availability of unsubsidized affordable housing nationwide. Revised language in Section 604(d) of the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended by the Manufactured Housing Improvement Act of 2000, does require that the original preemption provision be “broadly and liberally construed.” HUD currently does in fact take a broad and liberal, enhanced, view with regard to preemption of state and local standards when a state or local standard actually conflicts with HUD’s Manufactured Home Construction and Safety Standards (construction and safety standards). Whenever the HUD program office receives information that suggests that a local jurisdiction is trying to enforce its own construction or safety standard against an element of performance that is addressed by HUD’s construction and safety standards, HUD’s office of Manufactured Housing Programs works with its Office of General Counsel to provide correspondence to that jurisdiction informing them that such local laws are subject to federal preemption under the Act.

  • Section 604(d) provides that if a home is built to the HUD code, state and local building authorities may not apply their own codes that are “applicable to the same element of performance.” HUD has always understood that Federal preemption of state and local codes is one of the biggest competitive advantages the HUD-code manufactured housing industry has over-site built and modular housing. Maintaining the viability of federal preemption is therefore critical to the entire HUD-code business model. For preemption to work, however, the Act requires that HUD’s construction and safety standards address the same elements of performance as the International Residential Code (IRC) and other state and local codes. Otherwise local code authorities are free to enforce their own code provisions. The Department and the MHCC therefore concentrate on maintaining preemption by updating the elements of performance addressed by the construction and safety standards.” ##

MHProNews, notes that Montgomery clearly indicates knowledge of the “enhanced preemption” issue, but ,with all due respect to Montgomery, must now juxtapose this statement above with some claims by HUD’s original administrator of the Office of Manufactured Housing Programs (OMHP), William “Bill” Matchneer. Because Matchneer contradicts Montgomery.

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Not long after making this comment, Matchneer – who through the law firm that employed him periodically served MHI – separated from that firm with little explanation.

Additionally, Matchneer went further in the reported exchange below.

 

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Notice, the photo of Santana was mirrored for the collage by MHProNews above; credits are as shown. https://www.manufacturedhomepronews.com/bombshells-former-hud-manufactured-housing-program-administrator-bill-matchneer-cavcos-manuel-santana-statements/

As the report above clearly noted, Matchneer asserted during a conference call, with HUD officials, MHI, and other interested parties on the line, that HUD’s general counsel for years declined to press enhanced preemption.

MHARR has told MHProNews the following, which should be read carefully and then reviewed in the light of what Montgomery said.

MarkWeissPhotoMHARRlogoQuoteZoningDiscriminationCongress2000ReformLawMHIA2000StrengthenFederalEnhancedPreemptionInvalidatedLocalStateZoningPlacementMandatestManufacturedHomestMHProNews

In a prior response to this issue, MHARR’s Weiss noted that it is more than just construction standards that changed with the  MHIA 2000 reform law update. The word “requirements” was added too. Is this just wishful thinking, or a sound reading by a veteran manufactured housing industry attorney? Let’s look.

When Democratic lawmakers addressed President George W. Bush’s HUD Secretary Mel Martinez, they used and cited the same language that Weiss did. This is significant, because if there were any question of what a law means, courts look to legislative intent to help clarify a controversy.

 

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So, the fact that lawmakers involved in passing the MHIA with so-called “enhanced preemption” also used Weiss’ choice of wording “requirements” is telling and compelling. It is worth noting that Weiss’ provided a detailed reply to MHProNews, in contrast to MHI once again ducking – despite the Goch posturing cited above.  Weiss’ reply cited that item from lawmakers, shown above.

To bring the Montgomery track and the Fudge tracks together, it is useful to look at the key part of her comments. The entire context is found in the report linked below.

The crux of the issue could be boiled down to this.

Note that MHI failed to challenge the Montgomery issue in 2020, or if they did, they did not inform their own members and the industry about the matter. Given their propensity for photo ops and self-congratulatory emails, it seems unlikely that the did anything. If they did, they apparently failed to accomplish anything. By contrast, as was noted in a link above, MHARR specifically asked Montgomery to clean up the old regulatory guidance that was superseded by the new “enhanced” preemption language found in the MHIA of 2000.

 

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https://www.manufacturedhomepronews.com/hud-secretary-marcia-fudge-manufactured-housing-institute-mharr-and-manufactured-housing-not-a-fighting-industry-true-or-false-plus-manufactured-housing-stoc/

The video and fuller transcript for what follows is linked here. Those who want to look at the discussion with their own eyes (see the time-line below) can do so. As was previously noted, MHI bragged in an email that this was “MHI in Action,” but failed to show their members and readers the actual transcript. The fine folks in Arlington were seemingly either lazy, inept, uniformed about the very issue that they were bragging about – or MHI’s leaders were being deliberately deceptive. Take your pick.  That noted, here is the crux of the apparently similar thinking to that of Montgomery from 2020.

A lawmaker, Congressman John Rose (TN-R) made the following comment to Sec. Fudge:

“[HUD] HAS THE AUTHORITY TO PREVENT LOCALITIES FROM EXCLUDING MANUFACTURED HOMES BUT THEY HAVE NOT UTILIZED IT.”

That from Rose is a reference to enhanced preemption, without saying so explicitly. Note that the statement/topic Rose raised is useful. Because now there is a video record established on this subject. MHProNews suggested weeks ago that something like this is what MHI should do.

In response, Sec. Fudge responded by saying:

02:18:27.

I WOULD DISAGREE HUD HAS ABILITY TO CHANGE LOCAL ZONING. WE DO NOT.”

Congressman Rose replied to that at about the 02:18:33 mark by saying this.

YOU DON’T SEE A WAY THAT HEAD ON– – [HUD] CAN HELP QUICK.”

To which Fudge says at 02:18:42 that: “WE ARE WORKING ON IT BUT WE DON’T HAVE THE AUTHORITY TO CHANGE LOCAL ZONING LAW.”

With the above in mind, Weiss’ response to MHProNews is all the more telling.

 

MarkWeissJDPresidentCEOPhotoManufacturedHousingAssocRegulatoryReformMHARRlogoMHProNews“The statement by Secretary Fudge is, at a minimum, very troubling — as well as inaccurate.  In fairness to her, it is possible that there was some degree of misunderstanding between her and the Committee member posing the question. The question was not whether HUD has the power to affirmatively “change” local zoning laws, but whether HUD has the power to supersede specific local zoning laws or decisions supposedly implementing those laws, if those laws or decisions discriminatorily exclude federally-regulated manufactured homes. I would point out as an initial observation, that even if we were talking about “changing” the substance of local zoning laws, the Secretary would still be wrong, as HUD seems to believe that it has that power under the Fair Housing Act and its revived Affirmatively Furthering Fair Housing (AFFH) rule to do just that. Indeed, that element was removed from AFFH by Secretary Carson and the Trump Administration, but reconstituted by the Biden Administration after it took office.  While the scope of that power under AFFH may be open to interpretation and debate, there is no question that HUD — at least under that policy — believes it does have the unilateral power to “change” local zoning laws.

More specifically, though, the addition of the word “requirements” in the preemption enhancement section of the 2000 law, broadens and extends HUD’s previous interpretation of the law, which limited preemption to the invalidation of differing state and local construction and safety standards applicable to “the same aspect” of manufactured home performance as a federal standard. If it did not function to extend and expand the reach of preemption, it would effectively have no meaning, an interpretation that is inconsistent with the most basic rules of statutory construction.

More importantly, no one has to take my word for what was intended by Congress.  It was expressed quite clearly, shortly after the adoption of the 2000 law, in a letter (which you’ve cited and reproduced) sent to HUD by members of Congress who were directly involved in the 2000 reform law’s development and passage.

MHARR, for its part, will directly address this matter with Secretary Fudge and senior-level HUD management — as should MHI, in order to ensure that the record is clear and that there is no misunderstanding regarding the scope of HUD’s authority.” ##

 

MHProNews Takeaways, Commentary, and Conclusion  

Democratic or Republican, MHProNews has hammered away at the issues that matter. As trade media, it is our job to bring these issues to light. MHARR, as a trade association has weighed in with MHProNews – knowing that HUD and other public officials monitor our publication.  MHARR made it clear that they will bring this up directly to Secretary Fudge.

By contrast, as was documented here, MHI has not responded. Outside MHI attorney Goch’s apparently debunked claims aside, what now exists is a sober record to wrap up a mix of satire and seriousness.

The only evidence known is that MHI –  by accident or design – hid the truth from their own members and manufactured housing industry readers. They have demonstrably failed to do their duty. Samuel Strommen’s potent outsider-looking in analysis are proven once more.

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There are repeated examples of MHI saying one thing, but apparently doing another. Rather than explain these troubling issues, or better yet, having their attorneys engage HUD to force the issue, MHI spends their legal dollars periodically harassing some of their own members, past or present, that dared raise issues that did not fit their narrative.

 

Equally significant is how this buttresses the deep dive report below. The question now is, will anyone at MHI stand up to protest this? Will investors, public officials, or others act for the sake of more affordable housing and the American Dream? While manufactured housing is now rising, for 2½ years MHI has engaged in a pattern of action and inaction that benefits a few insiders while routinely harming others. Says who? Ironically, it is often MHI’s own members and affiliates, past and present.

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In the immortal words of Gomer Plye, USMC  “For shame, for shame, for shame!”

###

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Next up is our business daily recap of yesterday evening’s market report and related left-right headlines.

The Business Daily Manufactured Home Industry Connected Stock Market Updates.  Plus, Market Moving Left (CNN) – Right (Newsmax) Headlines Snapshot. While the layout of this daily business report has recently been modified, several elements of the basic concepts used previously are still the same. The headlines that follow below can be reviewed at a glance to save time while providing insights across the left-right media divide. Additionally, those headlines often provide clues as to possible ‘market-moving’ items.

 

Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…

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Senator Mike Lee (UT-R) has accused the Biden team of implementing policies that harm the poorest and middle class more while enriching the wealthy. Weeks before others in the mainstream media began to flash their ‘inflation warnings,’ MHProNews added first the top, then later the second notice above. When someone has even a basic understanding of the principles of economics, ‘inflation’ was predictable. The question is, will hyper-inflation follow? There are voices on both sides of that debate.

Headlines from left-of-center CNN Business = evening of 8.2.2021 

  • Half-empty offices
  • An empty workstation inside a office building in San Francisco, California, U.S., on Wednesday, June 9, 2021. California officials plan to fully reopen the economy on June 15, if the pandemic continues to abate, after driving down coronavirus case loads in the most populous U.S. state. Photographer: David Paul Morris/Bloomberg via Getty Images
  • Working from home is here to stay, and that’s hurting the economy
  • Exclusive: Another major bank ditches overdraft fees
  • This CEO says it’s time for the world to embrace a new normal at work
  • ‘Buy now, pay later’ is becoming a huge business
  • Square to acquire the buy now, pay later platform Afterpay for $29 billion
  • The eviction ban is ending, putting millions at risk of losing their homes
  • HSBC brings back dividend as profit more than doubles
  • Zoom settles ‘zoombombing’ and data privacy lawsuit
  • Van conversion businesses can’t keep up with #vanlife demand
  • Amazon’s ‘Lord of the Rings’ series to premiere next year
  • Here’s everything you can’t get right now
  • Disney’s newest movie exceeded expectations thanks to streaming
  • Sky News Australia suspended from YouTube for a week over Covid-19 misinformation
  • Content by SmartAsset
  • Princeton Alum’s Start Up Raises $110 Million to Help People Plan for An Easy Retirement
  • Single-family homes are seen in this aerial photograph taken over a Lennar Corp. development in San Diego, California, U.S., on Tuesday, Sept. 1, 2020.
  • Wall Street is buying up family homes. The rent checks are too juicy to ignore
  • 2022 Carnival.
  • Minivans are making a huge comeback. Here’s why
  • US actress Reese Witherspoon attends the 2020 Vanity Fair Oscar Party following the 92nd Oscars at The Wallis Annenberg Center for the Performing Arts in Beverly Hills on February 9, 2020.
  • Reese Witherspoon’s Hello Sunshine sold to new Blackstone-backed media company
  • MARKETS
  • Quote search
  • STREAMING WARS
  • Hollywood’s shift to streaming is rewriting the script for stars’ big paydays
  • Scarlett Johansson is suing Disney
  • ‘Jungle Cruise’ debuts in theaters and streaming
  • Why this actress is suing Disney
  • Here’s why straight-to-streaming blockbusters might never work
  • VACCINE MANDATES
  • Danny Meyer: If you want to be unvaccinated, ‘you can dine somewhere else’
  • These companies are requiring proof of vaccination
  • Enforcing rules for unvaccinated workers won’t be easy
  • OPINION Mandating vaccines at my business paid off
  • Businesses are taking a stand on vaccines

 

Headlines from right-of-center Newsmax – evening of 8.2.2021

  • Trump Lawyer Declares Release of Tax Return ‘Outrageous’ Harassment
  • “As counsel to the former President, I must comment on the Treasury Department’s intention to release Mr. Trump’s tax returns to Congress,” Ronald P. Fischetti said in a statement to the Times. “In my long career of practicing law I have never seen anything like this.” [Full Story]
  • Newsmax TV
  • LaMalfa: GOP May Need Own COVID Protocols
  • Issa: Cover-Up Over Wuhan Lab a Concern of Report |
  • NY Troopers Union Head: Mulling Options on Cuomo Shot Order |
  • Diamond and Silk Slam Fox News For Mike Lindell TV Ban |
  • Texas AG: Law Cannot Force COVID Disclosures |
  • Mark Morgan: Biden Policies ‘Constitutional Crisis’ |
  • Dershowitz: ‘Declaring War’ on Ben & Jerry’s Over Boycott |
  • Dershowitz: DOJ Won’t Have ‘Last Word’ on Audits |
  • More Newsmax TV
  • Newsfront
  • CDC Can’t Stop Evictions, so Biden Calls on States to Act
  • The White House said Monday that the Centers for Disease Control and Prevention was “unable to find legal authority for a new, targeted eviction moratorium” and asked that states and local governments put in policies to keep renters in their homes.Mass evictions could…… [Full Story]
  • Vaccinated GOP Sen. Graham Has ‘Mild’ COVID Case
  • Lindsey Graham, R-S.C., said he tested positive for COVID-19 [Full Story]
  • Trump Lawyer: Tax Return Release Is ‘Harassment, Outrageous’
  • Former President Donald Trump’s personal attorney on Monday [Full Story]
  • Eli Lake: Yes, Biden Still Has a Chance to Ditch the Iran Nuclear Talks
  • Biden now has an opportunity. He should follow up on the State [Full Story]
  • Menendez, 10 European Counterparts Condemn Biden’s Nord Stream 2 Deal
  • Senate Foreign Relations Chairman Bob Menendez, D-N.J., and 10 of his [Full Story]
  • Russia Says US Asked 24 of Its Diplomats to Leave by Sept. 3
  • Russia’s ambassador to the United States said Washington had asked 24 [Full Story]
  • US Employers Ratchet Up Pressure on Unvaccinated
  • Employers are losing patience with unvaccinated workers. For months, [Full Story]
  • Related
  • US Belatedly Hits Biden’s 70 Percent Vax Goal
  • Infrastructure Bill Would Rebuild Highway in Canada
  • The 2,450 mile Alaskan Highway could get an infrastructure boost [Full Story]
  • Air Travel Hits Another Pandemic High, Flight Delays Grow
  • Air travel in the U.S. is hitting new pandemic-era highs, and [Full Story]
  • Issa to Newsmax: Cover-Up Over Wuhan Lab a Concern of Report
  • “All the facts” show there is a high chance that the coronavirus [Full Story] |
  • ALS Drug Shows Early Promise Against Alzheimer’s
  • Could a drug used to treat amyotrophic lateral sclerosis (ALS) help [Full Story]
  • ‘SNL’ Star Scrubs Social Media Account Amid Backlash Over Simone Biles Joke
  • “Saturday Night Live” star Michael Che has cleared all his posts on [Full Story]
  • China’s Nuclear Silo Fields an ‘Exceedingly Dangerous Development’
  • The recent discovery of two nuclear silo fields in remote regions of [Full Story] |
  • Report: CIA Feud Resurfaces Amid Jan. 6 Probe
  • An old dispute between two CIA veterans – including one who worked [Full Story]
  • Senate May Move on Universal Pre-K
  • Senate Democrats may include President Joe Biden’s $200 billion [Full Story]
  • NYC Mayor Bill de Blasio Won’t Issue Mask Mandate
  • New York City Mayor Bill de Blasio is strongly encouraging people in [Full Story]
  • Kathy Griffin Announces She Has Lung Cancer
  • Kathy Griffin has revealed that she has lung cancer and will be [Full Story]
  • McCaul: COVID Leak Likely Accidental; Cover-Up in Play
  • The leak of a coronavirus that caused the deadly COVID-19 pandemic [Full Story]
  • Related
  • GOP Report: Coronavirus Leaked From Chinese Lab
  • Cuomo Calls on New York Businesses to Require Vaccine
  • New York Gov. Andrew Cuomo has asked businesses in the state to only [Full Story]
  • FBI Advised to Regulate Use of Non-Undercover Employee Photos in Sting Operations
  • The Department of Justice Office of the Inspector General notified [Full Story]
  • Jeh Johnson: ‘Zero Chance’ of Accepting Spot as ‘Border Czar’
  • Former Department of Homeland Security Secretary Jeh Johnson Monday [Full Story]
  • Boxer Tyson Fury: President Trump Called Me
  • As he prepares for an Oct. 9 triology fight against Deontay Wilder, [Full Story]
  • Obama Planning Birthday Bash Amid COVID Delta Concerns
  • Former President Barack Obama plans to host a 60th birthday party for [Full Story]
  • Former US Intelligence Director: China Should Not Host 2022 Winter Olympics
  • China should not be allowed to host the 2022 Winter Olympics while [Full Story]
  • NY Spent $106M on Cuomo’s Halted Bridge Lighting Plan: Report
  • New York spent $106 million on Gov. Andrew Cuomo’s plan to put [Full Story]
  • DC Mayor Pushing Mask Mandates ‘as a Distraction’ From Violent Crime
  • Washington D.C. is battling both a rise in coronavirus cases and [Full Story] |
  • Kyrsten Sinema in ‘Enviable Position’ as She Frustrates Democrats
  • Arizona Sen. Kyrsten Sinema doesn’t want to abolish the filibuster, [Full Story] |
  • Drone Video of Border Migrants Shows Biden’s ‘Catastrophe’
  • Drone video from the U.S.-Mexico border shows how much of a [Full Story]
  • GOP Report: Coronavirus Leaked From Chinese Lab
  • A preponderance of evidence proves the virus that caused the COVID-19 [Full Story]
  • Evacuations Lifted as Progress Made Against Fires in West
  • Firefighters in Oregon reported good progress in the battle against [Full Story]
  • Trump Issues Free Gift to All Supporters, (Liberals Are Demanding It Be Banned!)
  • com
  • More Newsfront
  • Finance
  • Treasury Dept Starts Extraordinary Measures as Debt-Ceiling Deadline Missed
  • Following the expiration of the two-year suspension of the debt ceiling, the Treasury Department began carrying out on Monday extraordinary emergency steps to conserve cash in order to… [Full Story]
  • Square to Buy Afterpay for $29B to Tap Younger Users
  • Zoom Reaches $85M User Privacy Settlement
  • Stephen Moore: ‘Some Indications’ Economy Is ‘Running out of Steam’
  • Fauci: US Likely Will Not Return to Lockdowns
  • More Finance
  • Health

 

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Manufactured Housing Industry Investments Connected Equities Closing Tickers

Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.

                          • NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
                          • NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
                          • NOTE: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of  the stock from the days when it was a publicly traded firm.  Thus, there is still periodic activity on DVLY.

 

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Summer 2021

Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Enjoy these ‘blast from the past’ comments.

MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our 11th year of publishing, and is starting our 12th year of serving the industry as the runaway most-read trade media.

TimWilliams21stMortgageCorpPriorMHIChairmanPraisingMHLivingNewsMHProNewsTonyKovach

Sample Kudos over the years…

It is now 11+ years and counting

Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.

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That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)

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All on Capitol Hill were welcoming and interested. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included a copy of the Constitution of the United States and other goodies. Tamas has grown considerably since this photo was taken. 

By L.A. “Tony” Kovach – for MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.

 

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