The National Communities Council (NCC) met during the 2009 MHI Summer Meeting and Legislative Conference and it emerged as a pivotal meeting regarding the direction of the NCC, and how the land-lease community industry can continue to increase its presence on Capitol Hill.

NCC Business & Issues

At the forefront of the discussion at both the NCC Open Issues Forum and the NCC Business meeting, was the overall positioning of the NCC within the MHI platform. As the NCC becomes more unified in Washington, DC, and continues to advance the legislative and regulatory priorities for the land-lease owners and operators on a national level, the NCC discussed taking steps to enhance its stature within the nation’s capital. While several ideas and concepts were discussed on how the NCC can assert more direct control over issues important to its members, a working committee was put forth to flesh out a proposal which would outline the top goals and priorities for the NCC, and also put forth recommendations on how the NCC would fund such efforts. This working committee includes: Greg O’Berry, Hometown America; Steve Schaub, Yes! Communities; David Lentz, Green Courte Partners; Howard Walker, Equity Lifestyle Properties; Nathan Smith, SSK Communities; Chris Parrish, Parrish Manor; Chris Lindsey, UMH Properties; Rick Rand, Great Value Homes; and George Allen, GFA Management.

If you have any thoughts or ideas you would like this working committee to consider, please contact Chris Parrish, NCC Chair, at chris@parrishmanor.com. The goal is to put forward an action plan over the summer, giving NCC members enough time to review and comment prior to meeting in San Diego at the MHI Annual Meeting in September.

Another important issue that was raised at the National Communities Council Meeting in DC, was how the new Title I installation requirements would affect existing homes. As written, the Title I program requires new homes to come into compliance with the New Model Installation Standards, and existing homes must have been installed in compliance with the manufacturer’s requirements at the time of installation. This leads to the question- how can you verify the installation on an existing home? After much discussion, the following was incorporated in the comment letter to FHA on the Title I program:

Requirement in Appendix 5-3 that existing homes must have been installed in compliance with the manufacturer’s requirements for anchoring, support, stability, maintenance.

In many cases, interested parties may not be able to locate the manufacturer’s original requirements, particularly in the case of older manufactured homes constructed by companies that are no longer in business. While the Institute for Building Technology and Safety (IBTS) does maintain a repository of manufacturer’s requirements for all manufactured homes constructed to the HUD-Code, these documents are only available to the manufacturers. IBTS should be directed to work with the manufacturers to implement a process whereby interested parties (lenders, engineers, community owners) may access these requirements for the purpose of certifying that the installation of an existing manufactured home meets these requirements, and that the home is thereby eligible for a Title I loan.

In addition to seeking clarity on this issue, the NCC is also going to be seeking clarification on what the interplay is, if any, between the FHA Title I loan program and current Fair Housing laws as they relate to community operators exercising latitude in using their own criteria in accepting or denying a prospective resident.

The NCC is also going to be developing a consensus position on sprinkler systems in homes. Many jurisdictions are looking to mandate sprinkler systems in all new homes, and HUD has ruled that preemption does not apply to sprinklers since the HUD-Code does not specifically address them. While this is directly related to the construction of the home, which is not typically an NCC issue, the sprinkler requirement could have a significant, and drastic, impact on the infrastructure of land-lease communities. This issue is already having a negative impact in Maryland.

The highlight of the business portion of the overall MHI meeting was the Wednesday morning panel on the topic of the new FHA Title I loan insurance program. For over 90 minutes, the panel discussed the reforms that took effect on June 1 and fielded questions about the features, logistics and benefits of the new program and interacted directly with the audience. The speakers included Kathy Gibbons, director of the Single Family MBS Division at Ginnie Mae; Joanne Kuczma, director of the Home Mortgage Insurance Division at the Federal Housing Administration; and Deanna DiMarino, credit policy specialist in the Home Mortgage Insurance Division at the Federal Housing Administration.

Capitol Hill Visits

On Tuesday morning, NCC members took to the Hill with over 80 visits to Congressional and Senate offices. The morning began with an impressive list of keynote speakers including Congressman Joe Donnelly (IN-2nd-D); Mr. Seth Wheeler, Deputy Assistant Secretary for Federal Finance, Department of Treasury; Congressman Tom Davis (R-VA); and Mr. William Apgar, Senior Advisor to Secretary Shaun Donovan of the U.S. Department of Housing and Urban Development. Attendees were then briefed on the key legislative issues and headed to Capitol Hill for their congressional meetings. The day was topped off by the Manufactured Housing Caucus Reception which drew many Members of Congress in the middle of a hectic voting schedule. MHI would like to thank Nathan Smith of SSK Communities and Howard Walker of Equity Lifestyle Properties for their sponsorship of the Congressional Reception.

The major issue that was highlighted during the Hill visits was the implementation of the GSE “duty to serve” provisions passed last year- knowing that the creation of a secondary market for personal property loans is critical to ensuring the availability of consumer lending for community residents and the viability of owners and operators around the country. This message was well received by Members of Congress which we believe will result in positive developments for the industry.

The second issue was a call on Congress to extend the $8,000 first time homebuyer tax credit and improve the program so consumers can more readily access those monies to use as down-payment assistance.

Next Meeting

The next MHI meeting is scheduled for September 27-29 in San Diego- be sure to join us! Register online today at www.manufacturedhousing.org/event/2009_annual_meeting.asp.