MHMSM.com presents Factory Built Housing Industry News at Noon with Erin Patla.
We begin with these stories:
MORE CALLS came late this week to eliminate Fannie Mae and Freddie Mac. Led by Texas Rep. Jeb Hensarling of Dallas, House Republicans say they’re eager to curb government’s involvement in the housing market, starting with eliminating Fannie and Freddie. Dallas Mayor and U.S. Rep. Steve Bartlett, president of the Financial Services Roundtable, told the Dallas Morning News that almost everyone agrees we’re going to do away with the organizations; “the issue becomes, what do you replace it with?” Mark A. Willis, resident research fellow at the Furman Center for Real Estate & Urban Policy at New York University told the paper that 30-year fixed-rate mortgages would be more expensive without a federal guarantee.
In Manufactured Housing News…
FROM THE MHI WEEK IN REVIEW comes notice that after a month-long Summer Recess, a four-week session of Congress opens next Tuesday, September 14th. MHI says with the economy and jobs continuing to make headlines, and with many vulnerable Congressional Democrats feeling pressure at home in an election year, several initiatives related to economic and fiscal policies are expected to be at the forefront, including tax relief and jobs. Specifically among the possibilities MHI sees being debated are a tax extenders package, a proposal to increase small business lending, and the appropriations bills where it appears that Congress will likely enact continuing resolutions to fund the government at 2010 budget levels for the time being. The group says with elections less than two months away, it will be difficult for any major agenda items to pass. MHI says it will be focused on getting two of MHI’s top priorities – the extension of 45L (the Energy Star tax extenders), and the pre-1976 replacement home legislation, both of which will help stimulate the industry and economy as well as provide much needed jobs – passed in the Senate. Congress has fewer than four weeks of work left before lawmakers break to campaign for the November election.
A SEPTEMBER 8th WASHINGTON UPDATE from the Manufactured Housing Association from Regulatory Reform reports that consumer finance reforms are being ignored by regulators. With total industry production this year not far from 2009 levels, the lowest since 1949, action on FHA Title 1 improvements and Duty to Serve are essential. The Washington Update is available under MHARR news at www.mhmsm.com.
FROM CANADA, the Edmonton Journal reports that a court has approved an extension of the creditor protection order for insolvent Edmonton-area modular home builder Winalta Inc. The company filed for creditor protection in April when it couldn’t meet debt obligations. Recently-sold assets include a manufacturing plant, gravel pit leases and residential properties.
FROM THE MAIL TRIBUNE in Southern Oregon comes a report that a rent control bill proposed for the 2011 legislative session could face stiff opposition from the manufactured home industry. Don Miner, executive director of the Oregon Manufactured Housing Association told the paper that rent control will only force some property owners to eventually sell off their land for other purposes, forcing the closure of manufactured home communities. Peter Ferris, executive director for the Oregon Manufactured Homeowners United, pointed out that rents in some landlease communities have gone up as much as 55 percent.
“Up next, Modular Housing in the News…
But first, this podcast of News at Noon is sponsored in part by:
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Now, back to our stories.
Modular Housing in the News…
ACCORDING TO BIV BUSINESS TODAY, successful conversion of an athletes’ village into social housing for seniors and people who are mentally challenged has spawned the purchase of modular homes in a Phase 2. The British Columbia government spent $20 million to convert 320 units into 156 permanent homes, a significant savings over the $30 million it would have cost to build from scratch. Another $124 million is being spent to build 1,308 modular housing units to enable seniors to stay in small communities.
In Business and Market News…
2010 MARKS Connexion Technologies’ second consecutive year on the Inc. 500 list of the nation’s fastest growing private companies. Fewer than 25 percent of companies on the list are those making second appearances, but rapid and consistent growth since 2006 enabled its return. The list is featured in Inc. Magazine, as well as online and in a variety of other media outlets. “Fast growth at any time is a big achievement; fast growth during the past few years is just short of miraculous,” said Inc. editor Jane Berentson. Connexion Technologies customizes and manages advanced communications networks in residential properties nationwide. The company selects and manages providers that offer entertainment and communication applications, including enhanced television, telephone and internet services over Connexion’s provider-neutral networks.
RESEARCH AND MARKETS has announced the addition of the “Manufactured Housing” report to their offering. The company says the US manufactured housing industry includes about 200 companies with combined annual sales of about $3 billion. Major companies include Cavco, Champion Enterprises, Clayton Homes and Palm Harbor Homes. The profile indicates the industry is highly concentrated: the top 20 manufacturers account for about 80 percent of revenue. Demand is driven by population growth, the cost of alternative forms of housing and the availability of credit. The profitability of individual companies depends on efficient operations and access to dealers. Large companies have economies of scale in purchasing and distribution. Small companies can compete successfully in local markets.
OSCAR WILDE said the basis of optimism is sheer terror, but it was optimism about the recovery that carried the day on Wall Street Friday and saw the Dow gain 47 points. As CNBC Staff writer Jeff Cox expressed, the market is getting a lift from things being not as bad as they seemed. The manufactured housing composite value was up point four percent for the day and many related stocks on our watch list gained. These include Nobility Homes, up more than 13 percent to close at $10 a share. Skyline Corp. and Equity Lifestyle Properties also recorded gains.
“On behalf of Production and IT Manager Bob Stovall, Editor L.A. ‘Tony’ Kovach, Associate Editor Catherine Frenzel, INdustry in Focus reporter Eric Miller, and the entire MHMSM.com writing and support team, this is Erin Patla. G’day!”