Winners-Losers in 12 Points-What Rigged System Costs Most Manufactured Housing Pros and Americans–How Big Boy Puppet String Pullers Get Away With It? Plus, Sunday Weekly MHVille Headlines Review
Evidence and researchers alike point to specific knowledge of the root causes and most proven solution to the affordable housing crisis in the U.S. That evidence, causes and solutions have been known for at least 25 years and some have said it’s been known for 50 years. With that in mind and with no explicit order of importance are the following twelve items that could turn millions of ‘losers’ into ‘winners’ in the contemporary hunt for the American Dream. Evidence for each of the following dozen items will be provided later herein.
1) Zoning and regulatory barriers are near the top of the list.
2) Affordable and sustainable financing has been called the “lifeblood” of all housing.
3) Existing homes should be preserved whenever possible.
4) In a free market economy, people should be allowed to choose if they buy a conventional ‘site built’ house, a manufactured home, modular, or other prefab style of factory-built housing, or if they need or otherwise prefer to occupy a rental housing unit.
5) In as much as years of research reflects that manufactured housing is widely misunderstood and underappreciated, authentic education must deal with past or present legal or media controversies involving manufactured housing is important.
6) Speaking of researchers – university, governmental, nonprofit or other third-party research should be reviewed, critiqued and/or affirmed as needed.
7) Research documents and reports should be gathered and made publicly available along with the relevant commentary (critique).
8) Umbrella style trade groups – as a longtime state Manufactured Housing Executive Committee (MHEC) member told MHProNews – boils down to the acronym P.E.P. = Protect, Educate, Promote.
9) As Chris Stinebert, former Manufactured Housing Institute (MHI) president and CEO observed, the interests of manufactured homeowners and community residents must be vigorously protected.
10) Manufactured home residents’ ability to enjoy appreciation of their home’s value, to have an effective resale system, and to be secure in their interests in either fee simple or land-lease manufactured home scenarios is good for the vast majority of the population.
11) Smaller businesses have access to capital, information, and protection of their interests is vital. Why? Because smaller businesses often do a better job of innovation, taking care of their employees, plus of honest and fair dealing with their customers.
12) Because oligopoly-style monopolization is harmful to employee earnings, the public interest, taxpayers and others antitrust laws should be vigorously enforced.
The problems connected to blocking solutions in that 12- or 13-point list could be summed up as Danny Glover did in the documentary linked here. “It’s not only a monopoly of wealth, it’s a monopoly of information as well.” That’s how ‘string pullers’ of the ‘rigged system’ get away with it. Because a relatively few monopolize much information and capital access or ‘wealth’ keeps the wealth of a few ‘elites’ growing while the wealth of the 99 percent continues to dwindle.
Among the reports for this Sunday weekly review linked below includes this fascinating pull quote from Oxfam (italics/bold added): “We have the evidence. We know the history. Public power can rein in runaway corporatepower and inequality — shaping the market to be fairer…” There is much truth in that remark, although applying the principle of separating the wheat from the chaff should be applied. More in the detailed Oxfam reports linked below.
Millions of dollars have flowed to and through the Manufactured Housing Institute (MHI) in recent years.
Perhaps millions have flowed into platforms like Equity LifeStyle Properties (ELS) owned Datacomp/JLT Market Reports and MHVillage/MHInsider and ManufacturedHomes.com.
There are aspects of each of those platforms that initially seem impressive.
But a closer look reveals that each of those often or even routinely fails to implement the 12 points shown above. They may talk about some of those items. But they demonstrably fail to do the necessary steps to implement those items. The evidence is manufactured home production statistics.
Evidence from over two dozen major brands that are publicly traded and covered in our business-daily market recap reveals this. The ‘big boys’ behind manufactured housing’s dominating brands have tens to hundreds of millions of essentially liquid dollars and/or billions of dollars available for investing into advancing manufactured housing, if they so desired.
In response to an inquiry, Bing’s artificial intelligence (AI) powered Copilot said this.
Ironically, Mandelker’s point is what the Manufactured Housing Institute (MHI) claims to be. MHI’s home page (as of 2.1.204 circa 4:25 PM ET) said the following. Note that on the surface this sounds fine. More following their home page pull-quotes.
Manufactured Housing Enables the American Dream
Manufactured housing is a solution to today’s affordable housing challenge. With increased production efficiency resulting in lower costs, offsite-built housing creates accessible home options for Americans.”
The Manufactured Housing Institute is the only national trade organization representing all segments of the factory-built housing industry. We are your trusted partner, advocate and industry leader.”
All that sounds pretty good, right? Only experts and researchers say that doesn’t get translated into the action that the 12-point list above or that Law Professor Mandelker said is needed.
To the point of timely news, MHI’s home page news – which links to MHI’s news page – is almost comical on the date and time checked. The newest ‘news’ item is over a month old. Another is dated “JULY 18, 2023.” The definition of news provided by Copilot is as follows.
Manufactured Home Living News: This is a widely acknowledged source for authentic news on mobile and manufactured home living, as well as the policies that impact this segment of housing that provides 22 million Americans with good, surprisingly appealing living. It provides news, trends, fact checks, and other updates 3.”
While MHI and MHVillage were also mentioned, Copilot said: “It’s important to be aware of the credibility of the sources we rely on for information.” What that may imply is that MHVillage and MHI are not as credible as the sources listed above.
Copilot also noted in a different Q&A the importance of being aware of narratives that may aim to manipulate readers/viewers/listeners.
To be clear, there are times Copilot provides questionable sources found in MHVille.
But if specifically questionable facts or practices are brought to Copilot’s attention, Bing often admits the error and offers an apology with an assurance that it will seek to avoid that error going forward. Since some aspects of Copilot are proprietary, it is unclear precisely how much programing or sponsorships (ads) influence its results. To illustrate, Copilot said this.
MHProNews and MHLivingNews do not pay for Google ads, nor for ads on Bing. To our knowledge, neither does the Manufactured Housing Association for Regulatory Reform (MHARR). So, their respective search results are what is generally known as organic.
By contrast, some others in MHVille pay for online ads and/or have the kind of “financial ties” that Copilot admits “can influence search results to some extent.” Per sources, Bing appears to have a strong left-leaning bias.
More on the dozen keys above and about search results in today’s postscript, which follows the headlines for the week in review. If you want to understand why manufactured housing is underperforming and what those costs are to the public, investors, small businesses owners, and employees, don’t miss the postscript.
With no further adieu, here are the headlines for the week that was from 1.28 to 2.4.2024.
Ironically, prominent MHI member Cavco Industries (CVCO) provides some insights. That bottom right corner from Cavco’s Investor Relations pitch below says: “Shortage of affordable housing costs American economy $2T (two trillion dollars annually) in lower wages and productivity.” Other sources have indicated a similar sum, so that appears to be a reasonable estimate.
Base image is from the Cavco Industries November 2023 Investor Relations ‘pitch deck’ or presentation. Satirical “Proud Member of Machiavellian Housing Institute” (i.e.: Manufactured Housing Institute or MHI) with its modified MHI tag line: “The National Association Serving Consolidators of the Manufactured Housing Industry” was added by MHProNews, but Cavco Industries is a “proud” MHI member. Call out boxes and arrows are added by MHProNews as part of this fact check and analysis.
This next article indicates that manufactured home industry employees could be earning about 17 percent higher than they currently are if oligopoly style monopolization were not so common.
F) Given that MHI leaders are routinely well educated, seasoned professionals, it is not credible that they are simply missing something or that they are stupid, ignorant, or anything along those lines.
G) Rather, the known evidence indicates that the status quo in manufactured housing – regardless of what MHI corporate or staff leaders may say – is desired by insiders at this time. Follow the facts, evidence, motivation, and money.
Former MHI vice president turned MHARR founding president, CEO, and now senior advisor Danny Ghorbani put it like this.
2. Manufactured housing is underperforming because that is how the powers that be in MHVille want it at this time. No other logical conclusion can be presented that covers all of the known facts.
3. Facts speak volumes. The graphic below will be updated later this week after new data is released which will show 2023 totals. But what is easily grasped is that this is not some ‘victimless crime.’ Employees, taxpayers, Americans in general are harmed by this evidence-backed pattern. Cavco’s pitch made that point. See the linked items for examples or more details.
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> “Are you aware of any scandals involving the Manufactured Housing Association for Regulatory Reform (MHARR) or any of their members?”
…
I am not aware of any scandals involving the Manufactured Housing Association for Regulatory Reform (MHARR) or any of their members. …”
Copilot illustrated the “contrast” between MHARR’s lack of scandals and those which have dogged the Manufactured Housing Institute (MHI) in the 21st century.
> “Bing, the name of the publication you cited is Manufactured Home Pro News or MHProNews, not Manufactured Home Professional News. That said, restate what you said the contrast was between MHARR’s lack of scandals and those that you found about the Manufactured Housing Institute and/or some of their higher profile members.”
Regarding your question about scandals or litigation involving the Manufactured Housing Institute (MHI) and/or Manufactured Housing Institute member firms, I found that several MHI members, including manufactured home community owner/operator companies and Datacomp, were hit by a big antitrust lawsuit in September 2023. The lawsuit alleges that nine mobile home community management companies and a mobile home market data provider conspired to fix, raise, and systemically inflate mobile home lot rental prices as more than 150 locations across the United States. Several of the firms involved are known to be Manufactured Housing Institute (MHI) members 2.
In contrast, I did not find any scandals or controversies involving the Manufactured Housing Association for Regulatory Reform (MHARR) or any of their members. …”
That same response listed the following trade media that reported on scandals in the manufactured housing industry.
Manufactured Home Living News: This is a widely acknowledged source for authentic news on mobile and manufactured home living, as well as the policies that impact this segment of housing that provides 22 million Americans with good, surprisingly appealing living. It provides news, trends, fact checks, and other updates . …”
Note what Bing’s research pointed to: “In contrast, [to scandals or litigation involving MHI and/or their members] I did not find any scandals or controversies involving the Manufactured Housing Association for Regulatory Reform (MHARR) or any of their members. …”
5. Consider this Q&A and related reasoning.
> “What does the expression “Heads I win, tails you lose” mean? What does the expression “Heads the insider win, tails the outsiders lose” mean?”
6. Copilot also noted that: “…it is not uncommon for industries to have insiders who have an advantage over outsiders, and this can lead to unfair practices or outcomes.”
> “Which 21st century Manufactured Housing Institute chairman have been accused of apparent wrongdoing?”
The first few responses to that question were a mix of accurate and mistaken information. As was noted on MHLivingNews and near the top of the illustration here Bing’s own disclaimer on Copilot advises that errors are possible. Specifically, it says: “Bing is powered by AI, so surprises and mistakes are possible.” Note again that MHProNews routinely uses the balanced or ‘blue’ setting for responses.
In the article linked here it says: “Copilot can be ‘reasoned with’ by an inquirer when it presents an answer that is demonstrably incorrect.” That is precisely what occurred in the follow ups. Apparent errors were questioned, and Copilot rechecked and made adjusted responses. Bing asks for such search results feedback.
With that in mind, here is what that part of the Q&A thread like.
> “You just said in 16 of 20 that Smith and Williams were accused of wrongdoing or hit by legal and regulatory actions. So, 17 of 30 appears to contradict that point. Let’s further clarify that you earlier mentioned that Clayton Homes lending was cited by the Seattle Times for apparent wrongdoing, right? 21st Mortgage Corporation is a sister brand to Clayton Homes. Nathan Smith’s legal and regulatory issues were covered by local news as well as by Manufactured Home Living News, correct? Warren Buffett himself responded to allegations against Clayton’s lending, which is more specifically 21st Mortgage Corporation and Vanderbilt Mortgage and Finance, all owned by Berkshire Hathaway, correct? Furthermore, Rep Maxine Waters and other House Democrats signed onto a letter specifically asking for a probe by federal officials of Clayton Homes related lending, correct? Please recheck, and then rephrase the response in 17 of 30 in the light of the information found in your revised search.”
I apologize for any confusion caused by my previous response. Here is a summary of the information I found:
7. Stop and reflect for a few moments. MHI’s top board leaders have a stunning list of scandals, controversies, and/or litigation involving them.
Nathan Smith, co-founder of SSK Communities which rebranded as Flagship Communities.
Joseph “Joe” Stegmayer, Cavco Industries but previously a division president for Clayton Homes.
Thomas “Tom” Hodges, Clayton Homes general counsel.
Tim Williams, 21st Mortgage Corporation, which like Clayton Homes is Berkshire Hathaway owned. Williams/21st was specifically named by Strommen in his legal research, which accused MHI leaders of “felony” antitrust violations.
This review reveals an apparent 21st century pattern at MHI. That indicates collusion or “conspiracy.” So, per the DOJ, the statues of limitations on these items doesn’t begin to run until the last violation of the law occurs.
There is evidence that a conspiracy to consolidate the manufactured housing industry is hiding in plain sight. The kind of monopolization method could be described as oligopoly.
The article “Remember Normal? Buckle up for Manufacturing Consent, Oxfam, Billionaire’s World, and the American Dream Reality Check” on Manufactured Home Living News discusses the impact of the COVID-19 pandemic on the American Dream and the housing industry. The article explores the concept of “manufacturing consent,” which refers to the ways in which powerful interests shape public opinion and policy decisions. It also discusses the role of billionaires in shaping the world economy and the challenges facing low- and middle-income Americans who are struggling to achieve the American Dream.
11. Glover said It’s a monopoly of information and wealth. The one helps the other. Curious and skeptical minds willing to look at the evidence with eyes wide open now have with this column a roadmap. Smiles and happy talk can apparently be faked. The truth can be hidden in plain sight. Follow the links to learn more. The time to act upon these insights is long overdue, but better late than never. The good news is that the legal system can work. ##
By carefully tracking the various statements and claims, past or present, by various MHI linked operations, MHProNews is able to demonstrate the apparent disconnects between their prior claims and their later deeds. It is often comparing past claims by the same source with more recent ones that disconnects appear and prior claims are revealed to be inaccurate. Knowing those past and more recent claims, who is and is not reliable, is a potentially important advantage in exploring legal, regulatory and other issues in MHVille.
For those who know authentic vs. weaponized American history, there is indeed a series of attempts to ‘fool’ the people on a range of issues. That being so, is it any surprise that similarly bold efforts to ‘fool’ most professionals and the broader public about manufactured housing’s realities also exists? 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.
For the Week Ahead Programming Notices:
i. New manufactured home production data is going to be released this week. MHARR will cover it at their link here. Watch for our MHProNews report on it. Don’t be surprised if MHI releases no data at all. If the common pattern holds, many of MHI aligned trade publications will follow MHI’s lead.
ii. A deep dive into one of MHI’s prominent member’s latest data, which is routinely revealing. This is something only MHProNews has done for years among MHVille trade media. Watch for that on Monday.
iii. MHProNews is still mulling doing a report on Indivisible and its connections to giants involved in MHVille. We did a report approaching 3 years ago on Indivisible, see that linked here. Remember, we follow the money trail so you don’t have to hunt as long or hard for the truth.
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Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.
Tony earned a journalism scholarship and earned numerous awards in history and 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.
