November/December 2014 MESSAGE FROM THE EXECUTIVE … · 2016. 5. 16. · NJMHA works on...
Transcript of November/December 2014 MESSAGE FROM THE EXECUTIVE … · 2016. 5. 16. · NJMHA works on...
Thank you, NJMHA members, for a productive
and successful 2014!
Our 2014 Annual Meeting Day was very
well attended in Atlantic City in October. We
were pleased to have Dick Ernst, MHI’s 2014 Person of the Year on hand to bring our members
up to speed on what they can and cannot do in a
sales environment as a result of Dodd Frank.
Dick also explained appraisal rules from the
CFPB which will be affecting members next sum-
mer.
We maintain an excellent relationship
with MHI and are currently working with them as
NJMHA works on installation training and licens-
ing requirements from HUD that were set forth in
the Manufactured Housing Improvement Act. NJMVC managers answered questions at
our Annual Meeting. Relations between NJMHA
and the MVC improved greatly this year. We have
strengthened reltionships with other regulatory
bodies that impact our industry as well, working
with the DCA on installation standards and Sandy
recovery, with the DEP on T-1 Permits and other
issues, and with the Department of Banking and
Insurance on the Residential Mortgage Lending
Act.
Our legislative committee and our PAC were very active in 2014. We contract with the
best state lobbying firm in NJ—Princeton Public
Affairs Group. We are the watchdogs for legisla-
tion and regulation affecting our industry and we
stay on top of it. We have successfully increased
our political profile on the state and national level.
We have, in the past year, lobbied successfully to
obtain amendments to abandoned property legisla-
tion. We testified at committee hearings on fire
suppression system requirements and obtained a
verbal on-the-record statement that manufactured
housing is exempt from the current legislation
from the Assembly Housing Chair. We met with
Senator Van Drew who agreed to obtain from the Office of Legislative Services an analysis of the
Senate fire suppression bill which concluded that
the bill does not apply to manufactured housing.
We drafted our own legislation to allow for a
deminimis exemption from the RMLA and got
sponsors for our bill in the Assembly and the Sen-
ate. After much lobbying, the bill passed the As-
sembly in June and is expected to be heard in the
appropriate Senate committee in early December.
NJMHA continued to support Assembly and Sen-
ate leadership through funds raised from our an-nual golf outing.
NJMHA’s Board of Directors has excep-
tional experience in the manufactured housing
industry in New Jersey (please see page 4 for our
newly-elected 2015 Board). We have many com-
mittees—all of which welcome new members at
any time—programs and education, legislation
and regulation, marketing, finance, and more. Let
us know if you would like to be more involved!
November/December 2014
INSIDE THIS ISSUE
Page
Manufactured Housing Improvement Act 4
2015 NJMHA Board of Directors 4
Disparate Impact 6
US Bank 7
Home Elevation Contracting 7 Rights to First Refusal 8
Annual Meeting Photos 10-12
$10 Million in Grants for Sandy Victims 14
First Credit Loan Program 16
MHI News 17
HUD News 18
Tiny Houses 19
MESSAGE FROM THE EXECUTIVE DIRECTOR
Jane Chady
Thank you, John C. Solly, NJMHA President 2012-2014
Page 2 November/December 2014 Housing Insight
Housing Insight serves as a medium of exchange of ideas and information on the manufactured housing industry to members. No responsibility is assumed by the
publisher for its accuracy or completeness. The views expressed and the data presented by contributors and advertisers are not to be construed as having the en-
dorsement of NJMHA, unless so specifically stated.
HOUSING INSIGHT Ph: 609-588-9040
Published by NJMHA Fax: 609-587-6697
Editor: Jane G. Chady
2741 Nottingham Way
Trenton, New Jersey 08619
E-Mail: [email protected]
Website: www.njmha.org
2014 BOARD OF TRUSTEES
OFFICERS
PRESIDENT: John C. Solly
1st VICE PRESIDENT: Paul Casaccio, Oak Forest
MHP, Egg Harbor Twp., NJ
2nd VICE PRESIDENT: Bruce Callen Schechner Lifson Corp., Summit, NJ
SECRETARY: Sean Dalton
Haylor, Freyer & Coon, Inc., Syracuse, NY
TREASURER: Robert V. Dolan Dolan Enterprises, Egg Harbor Twp., NJ
TRUSTEES
Steve Bergstrom: Holly Tree Acres, Pittsgrove, NJ
Dan Dugan: Marlette Homes, Elkton, MD
Christopher J. Hanlon, Esq.: Hanlon Niemann P.C.,
Freehold, NJ
Lori C. Greenberg, Esq.: Lor i C. Greenberg & As-
sociates, Marlton, NJ
Sam Hoye: Fir st Credit Corp., Gloversville, NY
Tom McCann: Key West Insurance Agency,
Sewell, NJ
Debbie Skipper: Pine View Terrace, LLC, Browns
Mills, NJ
Jim Sonday: Jensen’s Deep Run, Cream Ridge, NJ
Rodney Updegrave: Pine Grove Manufactured
Homes, Pine Grove, PA
NancyLu Viviano: Fountainhead Proper ties,
Jackson, NJ
PAST PRESIDENTS COUNCIL
Diane Oresto: Clearwater Village, Spotswood, NJ
Lila Motter: Chapman MH, Vineland, NJ
David Rivkin: Galaxy Manor , Toms River , NJ
STAFF
Jane G. Chady, Executive Director
Housing Insight July/August 2008 Page
MARK YOUR CALENDAR!
NJMHA EVENTS
Watch for these upcoming NJMHA events in 2015!
March 2015 NJMHA Round Table (Date and Venue TBD)
May 26, 2015 Annual Golf Outing and Play Day
July 2015 Summer Social Event
NJMHA Events are also listed on the Calendar in the
“Members Only” section of www.njmha.org
Housing Insight November/December 2014 Page 3
ADVERTISERS INDEX
Page
Eagle River Homes 800-406-1062 4
Garden Homes Management 203-653-2475 15
GPM Associates, Inc. 856-354-2273 17
Hanlon Niemann, PC. 732-863-9900 16
Key West Insurance Agency 856-374-1520 7
Konya’s Mobile Home Service 908-534-4084 5
Lori C. Greenberg & Assoc. 856-596-9300 9
Rosenbluth, Corsanico & Matz 610-239-6960 5
Schechner Lifson Corp 908-598-7800 2
Security Mortgage Group 585-423-0230 14
Silver-Top 877-235-2929 13
Tyler & Carmeli, P.C. 609-631-0600 18
WELCOME NEW MEMBERS!
Lakeshore Communities, Inc.
Eyal Karsh
8800 North Brant Ave, 2nd Floor
Skokie, IL 60077
Phone: 847-647-5554
Fax: 866-936-0447
E-mail: [email protected]
Milton Oakridge Associates
DBA Oakridge Senior Community
Vincent O’Rourke
80A Milton Road
Oak Ridge, NJ 07438
Phone: 973-874-0203
Fax: 201-336-9171
E-mail: [email protected]
Website: www.oakridgesenior.com
Page 4 November/December 2014 Housing Insight
If you haven’t answered our survey on
installations please contact the NJMHA
office with your answers to the follow-
ing:
Which installers are you currently
using in your community?
Do you perform your own installa-
tions?
On average, how many used homes
do you install in a year?
On average, how many new homes
do you install in a year?
Your input will help us make important
decisions as we work with HUD to
bring New Jersey into compliance with
the Manufactured Housing Improve-
ment Act.
MANUFACTURED HOUSING
IMPROVEMENT ACT
SURVEY
NJMHA 2015 BOARD OF DIRECTORS ELECTED
President: Paul Casaccio, Oak Forest Mobile Home Park
1st Vice President: Lila Motter, Chapmans Manufactured Housing
2nd Vice President: Bruce Callen, Schechner Lifson Corporation
Secretary: Sean Dalton, Haylor, Freyer, and Coon
Treasurer: Robert V. Dolan, Carteret Mobile Park,
Dolan Homes, Edison Mobile Estates and
Harbor Crossings
Trustees Representing Manufactured Housing Dealers:
Dan Dugan, Marlette Homes
Rodney Updegrave, Pine Grove Manufactured Homes
Trustees Representing Manufactured Housing Communities or Developers:
Steve Bergstrom, Holly Tree Acres
Debbie Skipper, Black Horse Manor, English Creek Manor,
and Pine View Terrace
Trustees Representing Associate Members:
Chris Hanlon, Hanlon Niemann, P.C.
Lori Greenberg, Lori C. Greenberg & Associates
Past President: John C. Solly
Trustees at Large:
Sam Hoye, First Credit Corporation
Tom McCann, Key West Insurance Agency
James Sonday, Jensen’s Deep Run
Past President’s Council:
Diane Oresto, Clearwater Village
Nancylu Viviano, Fountainhead Properties
Dave Rivkin, Galaxy Manor and Raymour Park
Housing Insight November/December 2014 Page 5
LEGISLATIVE REGULATORY COMMITTEE 2014 ANNUAL REPORT
I thank NJMHA for the continued opportunity to serve as legislative chair and thank the Committee for
their efforts throughout the year. I wish to thank Jane for all of her support and interest, and I thank Nicole
for her update. I also thank Lila Motter, Nancy Viviano, Dave Monie, Steve Bergstrom, Diane Oresto,
Chris Hanlon, Lori Greenberg and all the members of the Board for their time and work.
The Legislative/Regulatory Committee meets by teleconference. We always welcome additional members.
During the past year the Committee worked on legislation and regulations in many arenas.
Committee activities include:
Receiving bill lists from PPAG which reflects the status of legislation.
Review of the New Jersey Register twice a month for regulations affecting the industry.
The New Jersey Law Review Commission and its Federal counterpart. While these commissions are
not legislative bodies with authority to adopt laws and regulations, they help prepare model legislation.
Work on a Federal level with MHI
Reviewing legislation and regulations on the federal and state level for impact on the industry in NJ.
Meeting with legislators and agency representatives.
Attending political events.
Providing reports to the Board.
Drafting letters supporting or opposing legislation and regulations on the federal and state level.
Submitted comments on federal and state legislation and regulations.
Monitoring and advising the Board on the actions of federal and state Uniform Law Commissions.
Monitoring the New Jersey Register.
Under the lead of PPAG, monitoring state legislative activity.
Areas of activity:
Fire Sprinkler Legislation – Exemption.
Maintenance of vacant property which was dovetailed with the Abandoned Property process
NJPDES Permit Fees. Jane participated in roundtables and we expect to continue these efforts.
Nichole’s work on amendments to RMLA
A Federal initiative to tax homes as real estate not titled as motor vehicles.
State legislation requiring additional reporting requirements for community water supply systems.
Installers program.
We welcome suggestions from members on legislation and regulations of interest to the industry.
ARTHUR W.D. BOSS D.D.S.
OF FAIRTON OAKS
Sadly, NJMHA was recently informed of the
passing of Arthur Boss, owner of Fairton Oaks
in Fairton, NJ. A former Naval Pilot, he prac-
ticed dentistry from 1952 until his retirement in
October 2013. Fairton Oaks has been a member
of NJMHA since 1991. Susan Boss-Corson, Ar-
thur’s daughter, has taken over management of
the community.
Margaret B. Carmeli, Esq.
Page 6 November/December 2014 Housing Insight
DISPARATE IMPACT LAW SUIT FROM TEXAS GOES TO THE SUPREME COURT
In United States anti-discrimination law, the doctrine of disparate impact holds that practices in employ-
ment, housing, or other areas may be considered discriminatory and illegal if they have a disproportionate
"adverse impact" on persons along the lines of a protected trait. There does not have to be intent to discrimi-
nate.
In disparate impact cases, plaintiffs rely on statistics to show that seemingly neutral housing or lend-
ing practices can disproportionately harm racial minorities, even if there is no proof of intent to discriminate.
The theory has been used for years in various situations, lending, employment and now housing.
In 2013, HUD issued a disparate impact ruling, see:
http://portal.hud.gov/hudportal/documents/huddoc?id=discriminatoryeffectrule.pdf
“This rule formally establishes the three-part burden-shifting test for determining when a practice with a dis-
criminatory effect violates the Fair Housing Act. Under this test, the charging party or plaintiff first bears the
burden of proving its prima facie case that a practice results in, or would predictably result in, a discriminato-
ry effect on the basis of a protected characteristic. If the charging party or plaintiff proves a prima facie case,
the burden of proof shifts to the respondent or defendant to prove that the challenged practice is necessary to
achieve one or more of its substantial, legitimate, nondiscriminatory interests. If the respondent or defendant
satisfies this burden, then the charging party or plaintiff may still establish liability by proving that the sub-
stantial, legitimate, nondiscriminatory interest could be served by a practice that has a less discriminatory ef-
fect. This rule also adds and revises illustrations of practices that violate the Act through intentional discrimi-
nation or through a discriminatory effect under the standards outlined in § 100.500.”
So requiring criminal background checks and credit checks might violate this doctrine if it has a dis-
proportionate adverse impact on minorities, no matter what the intention of the requirement was. Recently NJ
passed a “ban the box” law to prevent employers from pre-screening potential employees for past criminal
history for these same reasons.
The issue is that groups are allowing statistical impact to show bias rather than actual bias. This approach
was used in auto lending where it was found that minorities paid higher rates when evaluated based on credit
scores, so the lending practice was found to be discriminatory.
Three cases have come before the Supreme Court on this issue, , Twp. Of Mount Holly v. Mt. Holly Gardens
Citizens in Action, Inc.and Magner v. Gallagher, were both settled before oral argument was held in the Su-
preme Court. The third case now being considered is Texas Department of Housing and Community Affairs
v. The Inclusive Communities Project, Inc. , No. 13-1371.
For more information, see:
http://www.scotusblog.com/case-files/cases/texas-department-of-housing-and-community-affairs-v-the-
inclusive-communities-project-inc/
In the Texas case, a fair housing group claims the state's system for distributing low-income housing tax
credits discriminated against racial minorities. A federal appeals court agreed that the group could use statis-
tics to show the state was approving more low-income housing in black neighborhoods than in white areas.
Fair housing advocates say such policies perpetuate segregated neighborhoods.
This is a far reaching case, since housing subsidies are in historically low income areas which have a high-
er percentage of minorities. But the other concern is the use of this statistic against landlords who do back-
ground and credit checks, even though they are race neutral, if the effect is that less minorities qualify for
housing, those tests could face the same challenges.
We will keep you informed of this case and changes to the law in this area.
By: Lori C. Greenberg, Esquire 1 Eves Drive, Suite 111, Marlton, NJ 08053, 856-596-9300, email
Lori C. Greenberg, Esq.
Housing Insight November/December 2014 Page 7
US BANK EXITS THE INDIRECT LENDING
MANUFACTURED HOUSING BUSINESS
In a letter to retailers nationwide, US Bank made the
announcement that effective November 12th they would
exit the Indirect Lending Manufactured Housing busi-
ness.
The letter states, “however, [US Bank] will
continue to offer loans for manufactured homes directly
to consumers through U.S. Bank Home Mortgage and
our network of branches. Beginning Thursday, No-
vember 13, 2014 we will no longer process manufac-
tured housing credit applications through our indirect
programs. For applications that are already accepted,
we will continue to honor Chattel only collateral until
January 13, 2015 and Real Estate collateral until May
13, 2015. The limited market size and current regula-
tory environment of the indirect market make it unreal-
istic for U.S. Bank to reach its growth objectives.”
U.S. Bank has pulled all advertising from state associa-
tion publications.
HOME IMPROVEMENT & HOME
ELEVATION CONTRACTOR REGISTRATION
The NJ Division of Consumer Affairs published pro-
posed rules affecting home improvement contractors
(HICs) engaged in the business of selling or making
home elevations (HECs) in the November 3, 2014 NJ
Register.
The proposed rules concern the application,
disclosure, insurance, surety bond, badge identification,
and other requirements of the program. Persons cur-
rently registered as HICs would be required to convert
their registrations to HEC registrations if they intend to
perform elevations. All applicants will be required to
provide a valid and current home improvement contrac-
tor registration number, proof of the requisite insurance,
and a certification that the HEC has a named person in
an ownership or staff position who has a minimum of
five years of experience in home elevation.
Interest parties can submit written comments by
January 2, 2015. Please contact the NJMHA office for
more information.
MHARR (Manufactured Housing Association for Regulatory Reform) has announced that President and Chief Executive Officer
Danny D. Ghorbani will be retiring effective December 31, 2014. Ghorbani has agreed to continue as the Association’s Senior Advi-
sor on national policies. MHARR’S current Senior Vice President, mark Weiss, will step up as President and CEO of the Associa-
tion effective January 1, 2015.
NEWS FROM MHARR
Page 8 November/December 2014 Housing Insight
TENANTS’ ASSOCIATION MUST ACT RESPONSIBLY IF
PURSUING ITS RIGHTS TO FIRST REFUSAL
By Christopher J. Hanlon, Esq.
Anyone selling a mobile home park in New Jersey must be aware of the tenants’ right of first refusal
related to such transactions. Those rights are found at N.J.S.A. 46:8C-11 et seq. For sales of manufactured
home land lease communities where the intention is to continue that use, there is a statutory exemption and
tenants do not have the right of first refusal. However, where the intent related to the purchase is to change
the use and develop the property for an alternative use, the Act is triggered and the tenants do have the right
of first refusal.
There are certain very specific notice requirements set forth in the statute. The question is if those
notice requirements are not strictly adhered to but, nevertheless the tenants are given actual notice and an op-
portunity to exercise the right of first refusal, does the law prohibit a sale to a third party? The Appellate Di-
vision has just answered that question in Manhattan Trailer Park Homeowners Association, Inc., et. al. v.
Manhattan Trailer Court and Trailer Sales, Inc., NJ Super. (App. Div. 2014).
In that case the property was owned by an estate and another individual. The executor of the estate solicited
bids for the sale of the property in an attempt to liquidate the estate assets. The bids came in from parties in-
tending to develop the property for other uses (low income stick built housing). The executor, an attorney,
had negotiated the terms of the agreement through correspondence with the prospective buyer and upon be-
ing satisfied that he was close to an agreement, and approximately one week after being given notice that a
tenants’ association had been formed under the terms of the statute, he gave the tenants notice of this pending
transaction and actually drafted a contract for them to sign consistent with its terms. There was no financing
contingency in the offers received from third parties.
After a series of communications between the executor and the tenants, the tenants sent a counter-
proposal which included a financing contingency. They also sent a notice advising the landlord that two-
thirds of the tenants had approved the acquisition of the park (a fact they could not corroborate). They ad-
vised the executor they were exercising their right of first refusal.
The executor was confused about whether or not their notice of the exercise of their right of first re-
fusal related to his proposed contract, or their counter-offer, so he wrote for clarification. After not receiving
a response for months he went to the Surrogate Court for permission to approve the sale and proceeded with
the sale to the third party.
The tenants’ association sued. Their lawsuit was dismissed. The Trial Court concluded that their fail-
ure to act promptly as it relates to the offers that were being discussed when they gave their “notice” of their
exercise of their right of first refusal, represented a waiver of their rights under the Act. The Appellate Divi-
sion ruled that this conclusion was not barred by N.J.S.A. 46:8C-5 (which prohibits the waiver of mobile
home park tenants’ rights in any lease) nor was it prohibited by New Jersey’s Public Policy since it was clear
that the spirit of the law was adhered to, despite the owner’s failure to strictly comply with the Act’s notice
requirements because that failure was ultimately cured by the owner’s subsequent conduct that fully ad-
vanced the Act’s spirit and purpose, by actually giving the association an opportunity to buy the park proper-
ty.
As indicated, for those of you who are involved in a sale or acquisition of a mobile home park proper-
ty where the intent is to continue the use that transaction is exempt from the statutory right of first refusal
given to tenants. Particular care should be taken to document the transaction in compliance with the law to
achieve this exempt status. Alternatively, if a sale is contemplated where the intent is to change the use,
strict adherence to this statutory notice protocol is recommended, but even if it is not achieved, as long as the
tenants are actually given an opportunity to acquire the property based upon the terms of a contract which are
identical to that contemplated for a third party, then a common sense application of the law should prevail.
Housing Insight November/December 2014 Page 9
In New Jersey, Donald Norcross replaced Bob Andrews in the 1st District. Frank LoBiondo (2nd District) is well
acquainted with manufactured housing and NJMHA, we can be pleased to have his ear in the legislature. Like-
wise with Chris Smith in the 4th District. UMH Properties has done an excellent job in lobbying Assemblyman
Smith gaining his support for HR 1779. We are sorry to see Assemblyman Runyan (3rd District) step down as he
was the only Assemblyman in New Jersey to co-sponsor HR 1779 and had a personal understanding of the value
of our housing to low-income families. Assemblyman Garret (5th District) and Assemblyman Lance (7th District)
have both met with NJMHA representatives face-to-face recently to discuss HR 1779, EISA standards, and other
issues related to manufactured housing. Bonnie Watson Coleman (12th District) will become the first African-
American female member of New Jersey's congressional delegation in state history. NJMHA continues to develop
relationships with legislators at the federal and state level. If any members have relationships with legislators it
would be helpful to know so that we could, possibly, compare notes and work together in the future.
2014 ELECTIONS
LORI C. GREENBERG & ASSOCIATES "I take pride in personal and responsive service to my clients."
Lori C. Greenberg, Esq.
More than twenty years of experience in land lease community issues
including but not limited to:
Rent Control
Landlord/Tenant Disputes
Evictions
Oil Tank & Resale Issues
Contract and Lease Issues
Abandonment
Title Transfers
Fair Rate of Return and Hardship
Increase
Wills & Estate Planning
1 Eves Drive, Suite 111
Marlton, New Jersey 08053
Phone: (856) 596-9300 Fax: (856) 424-7264
Page 10 November/December 2014 Housing Insight
2014 Annual Meeting Day
Let’s Talk
Thank You Members! for another successful Annual Meeting Day
Housing Insight November/December 2014 Page 11
2014 Annual Meeting Day
Let’s
Talk
Page 12 November/December 2014 Housing Insight
NJMHA Members
PLEASE SUPPORT OUR SPONSORS for the
2014 Annual Meeting Day
Brass Sales Company CMH Manufacturing / Marlette Homes Eagle River Homes Haylor, Freyer & Coon, Inc. The Powderhorn Agency/ ProGuard Program Redman Homes Silver-top Manufacturing Company, Inc. Triad Financial Services
Exhibitors
Gold Sponsors Hanlon Niemann, P.C. Key West Insurance Agency, LLC Lori C. Greenberg & Associates Oak Tree Mobile Home Park Rosenbluth, Corsanico & Matz CPAs Schechner Lifson Corporation Tyler & Carmeli, P.C.
Silver Sponsors Ideal Mobile Home Community Pine Grove Homes
Housing Insight November/December 2014 Page 13
Call for Entries
2015 Land-Lease Community and Retail Sales Center of the Year,
Manufactured and Modular Home Design and Interior Design/Home Merchandising Awards
New Award Categories Added for 2015
Deadline for entries, fees and entry materials: March 6, 2015
Click here to enter or view information on the following 2015 National Industry Awards:
Land-Lease Community of the Year (includes four regions of the country)
Retail Sales Center of the Year (includes four regions of the country)
Design Awards for Manufactured and Modular Housing (Production home award categories by square footage
and includes a Green Home Award (new for 2015) and small home (new for 2015). For 2015, the concept design awards have been discontinued. Please also note that the square footage for the Modular Design Production catego-ries has changed from 2,200 square feet or less and over 2,200 square feet to 1,800 square feet or less and over 1,800 square feet. Interior Design/Home Merchandising - New for 2015 - (includes four categories - retail sales center, land-lease com-munity, manufacturer and clubhouse) Through the online system, you can enter the National Industry Awards competition, find eligibility information, criteria for each award and submission requirements, view the contest rules, pay entry fees, and upload all of your entry files for judging. The deadline for submitting entries, paying the fees and submitting materials online for judging is March 6, 2015. The National Industry Awards are presented each year at the National Congress & Expo for Manufactured and Modular Housing, bringing recognition to the best manufactured home communities and manufactured home retail sales centers in the country and the industry leaders in new manufactured and modular home designs. This year, the Congress & Expo will be held April 14-16, 2015 at the Paris Hotel in Las Vegas. Visit www.congressandexpo.com for information on the 2015 Congress & Expo. Awards will be presented on Wednesday, April 15th. Each award winner receives a personalized trophy and the entry will be placed in MHI's online Photo Gallery. Please note the following membership requirements for entering the competition:
The Manufactured and Modular Home Design Awards competition is only open to manufacturers that are mem-bers of the Manufactured Housing Institute (MHI).
The Land-Lease Community of the Year and Retail Sales Center of the Year Awards competition is only open to retail sales centers or communities that are members of the state manufactured housing association where the sales center or community is located.
The Interior Design/Home Merchandising Awards competition is only open to retail sales centers and land-lease communities that are members of the state manufactured housing association where the sales center or com-munity is located. Manufacturers must be members of the Manufactured Housing Institute (MHI).
If you have any questions, please call 703-558-0668 or [email protected].
Page 14 November/December 2014 Housing Insight
The NJ Department of Community Affairs (DCA)
informed NJMHA that they will be rolling out a
new “REM-like” program to help Sandy victims
who were told they did not qualify during the first
phase. The DCA has made some changes to the
program as a result of previous communications
with NJMHA representatives and working with
communities to help homeowners get back in their
homes. Several New Jersey communities have had
positive experiences working with the DCA.
The DCA expects the new program with $40
million in grant money to begin at the end of 2014
or early 2015 with a media blitz including TV, radio
and print media. The DCA told NJMHA that $10
million of the $40 million will be reserved for
manufactured housing.
The DCA has asked NJMHA to help them
locate communities who can benefit from the pro-
gram. If you would like more information and con-
tact information for the key people at the DCA
please contact the NJMHA office. The DCA is in-
terested in working with community owners and
managers along with the tenants to find solutions
that benefit everyone.
$10 MILLION IN GRANTS FOR SANDY
VICTIMS IN MANUFACTURED HOUSING
NJMHA regularly reviews the New Jersey Register for
legislation and regulation being proposed that has poten-
tial to affect NJMHA members. In November, NJMHA
has been involved with five bills as follows:
S-2238—NJMHA’s bill in the Senate that “Exempts cer-
tain persons from licensing requirements of the “New
Jersey Residential Mortgage Lending Act.” NJMHA has
lobbied hard for this bill that is expected to be posted to
the Senate Commerce Committee early December.
S-2551—NJMHA has sent letters in support of this leg-
islation which would extend the Permit Extension Act.
S-1319—NJMHA has sent a letter supporting Senator
Van Drew’s bill that would create an Internet database
summarizing all State rulemaking actions.
A-207—NJMHA has sent a letter supporting this bill
that eliminates awarding of attorney’s fees, filing fees,
and costs of suit for certain technical violations of the
consumer fraud act.
A-2599—NJMHA will attempt to amend this bill on
abandoned properties.
BILLS OF INTEREST
NJ LEGISLATURE
Housing Insight November/December 2014 Page 15
Thinking of Selling your Manufactured Housing Community?
Contact
GARDEN HOMES MANAGEMENT CORPORATION One of New Jersey’s Largest Community Owners
Since 1984 - 20 locations - 1,785 sites
All sizes considered (our communities range from 34 to 244 sites)
Cash or owner financing to suit your needs
Quick response and quick closing
Deal directly with the principal:
Richard Freedman, President (203) 653-2475
NOTES & RESOURCES FROM NJMHA’S ANNUAL MEETING DAY
Richard Ernst, President of Financial Marketing Associates, Inc., presented Adjusting to and Complying with the Dodd
Frank Regulations in the Manufactured Housing Industry. After outlining an overview of the regulations and the busi-
ness impact Ernst went on to explain the new Appraisal Rules becoming effective July 18, 2015. Digital copies of his
presentation are available to NJMHA members. Also available to members from NJMHA is a concise report: High
Price Mortgage Loan Appraisal Rules and Valuation Tools written by Sherrie Clevenger, a 20-year veteran of NADA-
guides and the manufactured housing industry. Please contact the NJMHA office for either report.
Margaret B. Carmeli, Esq. and George J. Tyler, Esq. performed an employment interview skit they call “The New Em-
ployee Interview (Dancing in the Minefield).” Protected classes, new laws including “Ban the Box” and questions that
can lead the interviewer down a dangerous path were highlighted. Tyler & Carmeli also addressed hostile work environ-
ments, who controls the information stored on your company computers and the “Pro Se” employee litigant.
Selika Gore, Deputy Administrator of Operations for the MVC and Robert R. Grill, Director of Agency Services dis-
cussed titles and agency operations with members. The MVC has 39 retail centers, there are 6 million vehicles on the
road and 25 million transactions are processed in a year. Gore and Grill explained reasons for some of the procedures in
place, for example, there is too much risk of fraud when 1400 people have the ability to create VIN numbers. The MVC
representatives took questions from members and provided contact information to be shared with members for Jackie
Prusak in the Title Unit. If NJMHA members are not getting results on title work in a reasonable amount of time, they
are encouraged to contact Jackie at 609-292-7500 x 5069. For other MVC issues that are not being resolved through the
usual channels, members can contact Ms. Gore at 609-777-1637 or [email protected].
NJMHA’s attorney panel: Lori C. Greenberg, Esq., Christopher J. Hanlon, Esq., and Margaret B. Carmeli, Esq. dis-
cussed ADA requirements, medical marijuana, disparate impact and more when members had a chance to ask questions
of the panel at the end of the day.
Page 16 November/December 2014 Housing Insight
FIRST CREDIT CORPORATION ANNOUNCES LENDING PLATFORM ALLOWING
NEW JERSEY COMMUNITY OWNERS TO HOLD LOANS
Sam Hoye
First Credit Corporation is happy to announce a new program for New Jersey community owners allowing them
to hold their own manufactured home loans. The First Credit Community Owner Origination Program is a legal
alternative to the intense licensing, compensation and lending burdens imposed by the SAFE Act, Dodd-Frank
Act and further CFPB revisions.
First Credit’s licensed employees will handle origination, underwriting and document preparation. After the
loan is closed, First Credit will assign the closed loan back to the community owner. Certain credit guidelines,
rates and terms will be determined by mutual agreement and applicable state and federal laws.
It is important that community owners do not engage in steering by directing applicants to one lender. A list of
lenders should be offered which can include First Credit Corporation. The First Credit Community Owner
Origination Program may be one of the choices offered to the applicant.
First Credit can offer loan servicing to community owners as a further option. This service provides for pay-
ment collections, escrow and collection services on past due accounts.
For more information contact Sam Hoye, Executive Vice President, at 1-800-562-6036. First Credit Corpora-
tion of NY, Inc. holds New Jersey Residential Mortgage Lender License and is registered with NMLS with enti-
ty ID 3228.
Housing Insight November/December 2014 Page 17
CFPB Report—Manufactured housing consumer finance in the United States
In September, the CFPB produced a 54-page report on this topic concluding that “the relative scarcity of
data on manufactured housing compared with data available on site-build housing and mortgage finance
in general remains a challenge for research related to manufactured housing.” You can access the report
here.
The National Fire Protection Association (NFPA) has updated its 2011 report on manufactured home fires, and the news con-
tinues to be positive. According to the report, manufactured homes had a 2007-2011 fire death rate per 100,000 units that that was
roughly the same as the rate for other one-or-two single family homes. Manufactured homes built after the introduction of the HUD
Code in 1976 have lower rates of civilian deaths per hundred reported deaths than pre HUD-Code homes. The 2007-2011 death rate
was 57% lower than for post standard homes for pre-standard manufactured homes.
According to the report "If all pre-HUD standard manufactured homes were removed from the inventory, the fire death rate
per 100,000 occupied manufactured homes would be estimated at 1.9, or well below the range estimated for the rate for other one- or
two-family homes."
The report found a disturbingly high rate of smoke alarm removal by occupants of manufactured homes. Smoke alarms
reportedly are missing in half (51%) of all manufactured home fires where smoke alarm status was reported. Smoke alarms are re-
quired by the HUD Code.
Click here to view the 2013 NFPA report.
DOE Working Group on Manufactured Housing
Concluding a three month intensive negotiation process, the Department of Energy (DOE) ASRAC (Appliance Standard Rulemaking
Advisory Council) Working Group on Manufactured Housing successfully reached a consensus recommendation for updated energy
efficiency standards for manufactured housing. The vote (20-1) was almost unanimous with MHARR casting the only “no” vote.
The working group developed a recommendation to meet a mandate outlined in the 2007 Energy Independence and Security Act
(EISA) for DOE to establish energy efficiency standards for manufactured housing based on the most recent version of the Interna-
tional Energy Conservation Code (IECC). The standards will increase first costs but consumers will realize significant energy cost
savings. The DOE has offered to work with the industry to develop software that facilitates the process of designing new homes and
checking for code compliance. If approved by the Secretary of Energy and after a 90-day review by the White House Office of Man-
agement and Budget, the proposed rule is expected to be published in the Federal Register in early 2015 and it is expected that the
final rule will not go into effect until 2016. Highlights of the Working Group’s recommendations are:
Two compliance options, prescriptive or performance
Three new thermal zones, closer to the current HUD zones than the IECC zones
Minimum window U-values and SHGC values
Lower U-values (higher thermal requirements) which are different for single-section and multi-sections
Duct tightness testing required on each house
No blower door tests visual inspections allowed
All penetrations are to be sealed (windows, doors, walls, floor and ceiling)
Final QM Rule Released
On October 21st, financial regulators released the final rule defining a Qualified Residential Mortgage (QRM). The definition is in-
tended to determine which loans are exempt from the risk retention requirements of the Dodd-Frank Act. To view the final rule, click
here.
The final QRM definition is aligned with that of a Qualified Mortgage (QM), which defines how lenders determine if a bor-
rower has the ability to repay the loan and sets out a safe harbor for lenders as they make that determination and underwrite the
loan. The final rule defines QRM as a "covered transaction" that meets the general definition of a QM which provides that the loan
must have:
Regular periodic payments that are substantially equal;
No negative amortization, interest only or balloon features;
A maximum loan term of 30 years;
Total points and fees that do not exceed 3 percent of the total loan amount, or the applicable amounts specified for small loans
up to $100,000;
Payments underwritten using the maximum interest rate that may apply during the first five years after the date on which the
first regular periodic payment is due;
Consideration and verification of the consumer's income and assets, including employment status if relied upon, and current debt
obligations, mortgage-related obligations, alimony and child support; and
Total DTI ratio that does not exceed 43 percent.
Click here to read more MHI CFPB and Financial Services Updates.
Jason Boehlert Leaving MHI
Effective next month, Senior Vice President of Government Affairs Jason Boehlert will be departing MHI to begin a new position as
Executive Director of the National Association of Local Housing Finance Agencies (NALHFA) and National Association for County
Community and Economic Development (NACCED). Boehlert moves on after more than four years at the helm of MHI's govern-
ment affairs department.
Page 18 November/December 2014 Housing Insight
Pamela Beck Danner of HUD recently distributed a mem-
orandum to provide additional guidance to DAPIAs in
order to facilitate HUD’s review and acceptance of manu-
facturers Alternative Construction (AC) requests for at-
tached garages. Please contact the NJMHA office if you
would like a copy of the memo. MHI representatives en-
courage widespread distribution of the information be-
lieving that the memo should be informative to retailers to
better understand what needs to be communicated to the
manufacturer when selling homes with garages or other
add-ons.
In September HUD issued a memo regarding “Single
Family Use” of manufactured homes. The memo states
“to avoid civil and criminal penalties associated with fail-
ing to comply with the regulations (refer to 24 CFR
3282.10), the Department is seeking your cooperation and
heightened attention in ensuring that manufactured homes
designed, manufactured and sold under the provisions of
the Federal Manufactured Home Construction and Safety
program are only for Single Family Use.” This is not a
new regulation. HUD is clarifying current regulations
and reminding industry stakeholders of “potential penal-
ties for violations of the Manufactured Home Procedural
and Enforcement Regulations (24 CFR Part 3282).”
Another recent HUD memo clarified HUD’s 1988 inter-
pretation of its RV exemption, and notified the industry
that it is aware of several manufacturers who are building
Park Model RVs larger than the maximum size limita-
tions in the HUD regulation providing the exemption for
Park Models. According to the memo, these manufactur-
ers “purportedly” relied on a Recreational Vehicle Indus-
try Association (RVIA) 2012 Standards Bulletin that pro-
vided inaccurate instructions for measuring units for the
RV exemption to HUD’s code.
HUD’s final rule on ground anchor installation became
effective on November 10, 2014. The rule amends the
Manufactured Home Model Installation Standards by re-
vising existing requirements for ground anchor installa-
tions and establishing standardized test methods to deter-
mine ground anchor performance and resistance.
HUD’s Office of Manufactured Housing Programs will
be holding its first full Manufactured Housing Consensus
Committee face to face meeting since October of 2012
from December 2-4, 2014 in Arlington, Virginia.
HUD’s Office of Manufactured Housing Programs intro-
duced a new and improved newsletter in November. If
you would like to receive the FACTs newsletter, click
here to be added to their database.
NEWS FROM HUD
Housing Insight November/December 2014 Page 19
TYLER & CARMELI, P.C. Attorneys at Law
George J. Tyler Margaret B. Carmeli
Serving New Jersey business in the following areas of law:
Real Estate Planning & Zoning Contract & Construction Issues Insurance Coverage
Litigation Regulatory & Legislative Representation Environmental Issues Commercial Transactions
Route 130 North, Robbinsville, New Jersey, just minutes from the NJ Turnpike and Routes 195 and 295
1 AAA Drive, Suite 204, Robbinsville, New Jersey 08691
(609) 631-0600—Tel (609) 631-0651 - Fax
[email protected] [email protected]
To reduce exterior corrosion, make sure that:
The tank has clearance on all sides so that debris
can’t accumulate and hold moisture against the
tank
There is sufficient clearance under the tank so that
plant growth does not come in contact with it (at
least 6 inches)
Scratches and rust are repaired immediately
The tank is painted on a regular basis (a light col-
or is recommended)
The best way to reduce internal corrosion is to elimi-
nate the water at the bottom of the tank. Bacteria
forms at the oil/water interface that creates an acid
that corrodes the metal in the tank.
The most common causes of water in tanks are:
Condensation (as much as a quart of water can be
produced every year)
Broken gauges
Loose or missing fill and vent caps
Tanks should be checked at least once a year and
pumped out if necessary. This is typically done by the
fuel supplier at the time of the annual tune-up.
Information was adapted from the National Oilheat
Research Alliance article Heating Oil Tanks-Guide for
Quality Installation and Maintenance.
OUTDOOR ABOVE GROUND
FUEL TANK MAINTENANCE
A new challenge appears to be looming for the manu-
factured housing industry in the form of miniature
homes known colloquially as the “tiny house move-
ment.” There is concern in the industry that these tiny
homes on wheels are being allowed by local regula-
tors to go into communities across the nation without
facing regulatory controls that confront the manufac-
tured housing industry.
“Some are being parked at churches or other
places,” Wisconsin Housing Alliance Executive Di-
rector Ross Kinzler said. “Tiny houses get unusual
city support because locals advocate for them as
homelessness prevention.”
Affordable housing advocates see them as a
solution to homelessness in urban areas. New Jersey
Assemblywoman Pamela Lampitt is one such advo-
cate who has expressed an interest.
These are houses of less than 1,000 square
feet. They are not getting the same regulatory scruti-
ny and having to comply with regulatory standards
that manufactured housing faces. These homes are
built in open spaces or garages. Other issues include
the use of non-graded lumber, recycled doors and
windows—some too small to meet codes and toilets
are not vented and drain to…(nowhere).
“I think the challenge for our industry is not to
compete with the tiny house movement, but to learn
from the success of their movement,” Sheila Dey, Ex-
ecutive Director of the Sacramento-based Western
Manufactured Housing Communities, said. “How can
we make small HUD-code homes as ‘cool’ as tiny
houses?”
There may be a Tumbleweed 2 day workshop
on how to build a tine house coming here soon.
There’s one scheduled for Minneapolis June 6 & 7
2015.
TINY HOUSES
Pride of Place