NCC Prepares Guidance Memo for Members in Light of Order

Over the objections of the MHI National Communities Council and other housing groups, the Federal Communications Commission (FCC) issued an order on October 31 banning future exclusive contracts and abrogating existing contracts between multiple dwelling units (MDUs), including manufactured home communities, and cable television providers. The NCC is greatly concerned that forbidding these contracts is an impulsive regulatory overreach that could do more harm than good by wiping away, by regulatory fiat, many contracts which benefit residents of manufactured home communities.

For its part, the FCC claims that banning these types of contracts will bring about more competition. But clearly lacking in this regulatory initiative is a compelling analysis of the consumer benefits of exclusive contracts. Manufactured home community owners use their high number of occupants as an incentive in order to persuade cable companies to improve their customer service while lowering prices. Cable operators often offer an extremely high level of service at a discounted price in order to entice these communities to sign onto these exclusive contracts. These benefits then get passed onto manufactured home community residents, who can rarely obtain the same level of discounts without the exclusive contracts.

The FCC’s order does not take effect until 30 days after publication in the Federal Register, which has not yet occurred. In the meantime, the NCC’s general counsel has prepared a guidance memo for NCC members regarding their options in light of the recent order. To obtain a copy of the FCC order or the guidance memo, contact Michael O’Brien at mobrien@mfghome.org