Page 1The Arizona Housing NewsletterMarch - April 2016

A Publication of the Manufactured Housing Industry of Arizona Volume 13, Issue 02

The Arizona Housing Newsletter

(Continued on Page 2)

RegisteR Now to AtteNd the 2016 ARizoNA MANufActuRed housiNg coNfeReNce feAtuRiNg

KeyNote speAKeR Joe stegMAyeR

We are very proud to announce that MHIA is once again teaming up with Manufactured Housing Communities of

Arizona (MHCA) for a joint Conference and Golf Tournament to be held on June 7 - 9, 2016 at the Wild Horse Pass Hotel and Casino in Chandler, Arizona.

Last year’s event brought more than 250 manufactured housing professionals from all segments of the industry together, creating an awesome networking experience. Many described the Conference as the best they had attended in years. This year’s program will feature an industry favorite, Cavco Industries’ Joe Stegmayer, as our Keynote Presenter. In addition, we’ll have a Sales Training program from John Ace Underwood; an informative Lenders Panel; and several other speakers on a variety of topics; plus a special networking Welcoming Reception with cocktails and hors d’oeuvres on the 8th.

Keynote Speaker Joe Stegmayer: Joe Stegmayer, Chairman, President & CEO of Cavco Industries, Inc., will share his insights on the current state of the manufactured housing industry as well as his vision for its future. Joe began his career in 1973 with Worthington Industries supplying LP gas cylinders to the RV

industry. Since joining Cavco in 2000, he has led the Cavco team to grow from $95 million in annual sales to $700 million annually and expanded the firm from three factories in two states to 19 factories in 11 states. During his tenure as chairman, the company’s park model business has grown to number one nationwide. Cavco has also been the recipient of MHI’s Manufacturer of the Year for 6 Years Running (2010 – 2015) and Joe, himself, will be inducted into the RVMH Hall of Fame later this year.

Sales Training Program: John Ace Underwood, Founder of Micro Seminars, will present 5 Breakthrough Discoveries: The TOP 5 Reasons sales are unnecessarily lost. John Underwood has over 30 years of experience and has helped thousands of sales pros increase both their understanding of the psychology of selling as well as their personal sales performance. CLICK HERE to view John’s videos about the program he will be presenting.

Lenders Panel with Q & A: Leaders in MH Lending, from 21st Mortgage Corporation; Cascade Financial Services; CountryPlace Mortgage; CU Factory Built Lending; and Triad Financial Services, will discuss all their financial programs that include Land/Home, Home Only, and various specialty programs (i.e. Land in Lieu, etc.) as well as Community Lending.

Page 2The Arizona Housing NewsletterMarch - April 2016

In This Issue...

Conference Agenda Page 3 OMH Board Appointments Page 10Conference Hotel Info Page 4 Fundraiser for Kyrsten Sinema Page 10Conference Registration Form Page 5 MHI Advances MH Finance Reform Page 11Sponsor & Exhibitor Info Page 6 HUD Issues Guidance - Freezing Page 12Sponsor & Exhibitor Registration Page 7 MHI Advancing Priorities Page 13Underwood Sales Training Program Page 8 HUD Proposal on RV Exemption Page 15Thank You Sponsors & Exhibitors! Page 9 Calendar of Events Page 15

MHIAZ Leadership

Executive CommitteeCody Pearce, ChairmanJim Breen, Vice ChairmanNorman Ball, TreasurerDavid Roe, Jr., SecretaryJoshua Wendt, Past Chairman

Board of DirectorsNorman BallKory BeickelRick BolesBrian BrastadJim BreenJan EschRick GastineauWayne HarderKy GhoshTerry GleesonCody PearceScott RobertsDavid H. Roe, Jr.David StoneScott TownsendJoshua Wendt

Division PresidentsShane Willson, NorthwestKory Beickel, PhoenixMichael Bryant, SouthwestScott Townsend, TucsonWayne Harder, White Mountain

Gov’t & Zoning CommitteeNorman Ball, ChairmanBrian BrastadTerry GleesonCody PearceDavid H. Roe, Jr.

2016 ARizoNA Mh coNfeReNce (Continued)2016 Annual Golf Tournament at Whirlwind Golf Club Developed by Gary Panks, the Devil’s Claw course was created to reflect the land while the waters still flowed on the reservation by combining native grasses associated with the Gila River landscape including Cottonwood, Mesquite, Saguaro and Palo Verde. This challenging golf course features gradual elevation changes, great bunker designs with multi-tiered greens. Discover the beauty of this challenging course.

Enjoy Great Food and Cocktails while Networking with old friends and making new ones at a networking Welcome Reception and Fundraising Auction on June 9th to allow members from both MHIA and MHCA to get to know each other and make lasting partnerships.

In addition, we’ll have a great Exhibition and Speakers on timely topics, for all members, including Management; Customer Service; Arizona Department of Revenue; Department of Fire, Building & Life Safety; Local Governments; and Working with the Local Community. We’ll also have a Tax Attorney speaking on the new TPT changes, as well as an Open Forum where you can “Ask the Attorneys!” anything and get real answers to your questions.

The Preliminary Agenda and Registrations Forms are included in this newsletter.

CLICK HERE to Register Online Today!!

John Ace Underwood, Founder of Micro Seminars

Preliminary AgendaJune 7 - 9, 2016

Tuesday, June 7, 2016 8:00 am - Annual Golf Tournament at Whirlwind Golf Club (Lunch to follow)

Wednesday, June 8, 2016 7:30 am - Registration and Breakfast

8:30 am - Opening Session

9:30 am - Joe Stegmayer: The Future of Our Industry

11:00 am - Lenders Panel Discussion Recurring Management Issues

12:00 PM - Awards & Recognition Luncheon

1:30 pm - Sales Training: 5 Breakthrough Discoveries with John Underwood

3:30 pm - Local Government Regulation of Communities How to Sell Your Park to Perspective Residents Community Management 101 Installer Training w/ DFBLS

4:15 pm - State & Local Taxes Communities, the Courts, and How the Process Works Management 101 (continues) Installer Training (continues)

5:00 pm - Welcome Reception and Live Auction

Thursday, June 9, 2016 7:30 am - Registration and Breakfast

8:30 am - General Session: Dealing with Difficult Customers

9:40 am - Renting Homes in Your Community Utility Lines

11:00 am - Park Closures and How They Affect You Department of Revenue’s New Electronic Dealer Forms New Developments in the Laws & Regulation for Your Communities Maintenance: Pool Maintenance

11:45 am - Legislative Update; Luncheon & MHCA Annual Meeting

1:15 pm - How to Find & Train Community Managers Reports Required by the Counties Update from the DFBLS/OMH Street Maintenance & Repair

2:45 pm - A New Affordable Housing Solution? Establishing Reasonable Rules & How to Enforce Them Update on Appraisal of Manufactured Homes Establishing a Maintenance Schedule for Your Community

3:45 pm - Ask the Attorneys!

NOTE: This is the Preliminary Agenda. Sessions and Schedule are Subject to Change.

Room ReservationsA block of guest rooms is being held for June 6 - 9, 2016 at the Wild Horse Pass Hotel & Casino until May 9, 2016. The group rate for a King/Double Room is $79 single/double. The group rate for a Corner Suite is $129 single/double. Reservations can be made by calling the hotel at (800) 946-4452 and mention that you are with Manufactured Housing Communities of AZ. Individual reservations must be cancelled at least 72 hours prior to scheduled arrival to avoid late cancellation charge.

Wild Horse Pass Hotel & Casino

The AAA Four Diamond Wild Horse Pass Hotel and Casino, Arizona’s premier hotel/casino to stay and play,

is located in Chandler, just 12 miles south of Sky Harbor Airport. The hotel has 100,000 square feet of Vegas-style gaming and a variety of restaurants and lounges, amenities and outstanding service.

Run Wild at the Wild Horse Pass Casino!The fun never stops at Wild Horse Pass with more than 1,000 slots, 49 table games, a 25-table poker room, plus Shutters High Limit Salon. You’re sure to find your favorite game and make it your lucky day!

Grab a Bite to EatWild Horse Pass has several 24 hour dining options, including room service. WHP offers a variety of restaurants, from the famous Shula’s Steak House, to the fabulous Ling & Louie’s, to the casual food court featuring Fat Burger, Famiglia, and more.

Enjoy Live Music, Sports, or Just RelaxWild Horse Pass features five unique lounges, serving a wide assortment of beverages in a posh setting, ensuring you’ll enjoy a variety of fun throughout your stay. You can unwind at Reflections, catch up on your favorite sports at Center Bar, or enjoy live music at the Encore Lounge.

Enjoy a Peaceful NightStay in one of Wild Horse Pass’ tastefully appointed suites and rooms. Each room offers a king-sized bed or two double beds featuring their Slumber Solstice pillowtop mattresses. Also included is a 32” flat screen TV with premier channels, in-room safe, coffee maker, hair dryer, iron/ironing board and complimentary high-speed wireless internet. In-room dining is available 24/7.

Arizona Manufactured Housing Conference

Attendee Registration

Golf Tournament: Tuesday, June 7th Conference: Wednesday, June 8, 2016 - Thursday, June 9, 2016

Wild Horse Pass Hotel & Casino

Company:

Address: City/State/Zip:

Phone: Email:

1st Registrant: Nickname for Badge:

4th Registrant:

Nickname for Badge:

Email:

2nd Registrant:

Nickname for Badge:

Email:

3rd Registrant:

Nickname for Badge:

Email:

Total Fees: $ ________

Early One Day Registration Fees: _____ x $159.00 ________ (Received on or before 05/23/16) Early Two Day Registration Fees: _____ x $295.00 ________ (Received on or before 05/2316)

Standard One Day Registration Fees: _____ x $159.00 ________ (Received after 05/23/16)

Standard Two Day Registration Fees: _____ x $320.00 ________ (Received after 05/23/16)

Early Non-Member Registration: _____ x $359.00 ________ (Received on or before 05/23/16) Standard Non-Member Registration: _____ x $420.00 ________ (Received after 05/23/16)

Golf Tournament Registration Fees: _____ x $100.00 ________

Registration Fees

Card Number:

Visa MasterCard Amex Expiration Date: / CVC Code:

Card Holder Name:

Billing Address (if different from above):

City/State/Zip: Signature:

Cancellation Policy: Full refund of registration fees less $25.00 will be given on any cancellation received by 5:00 PM on May 23, 2016. No refunds will be made thereafter. Substitutions will be permitted. Please note that any substitutions made after May 23, 2016 may not have printed name badges.

Return this form with payment to: MHIA, 4525 S. Lakeshore Dr., #105, Tempe, AZ 85282 or fax to 480-456-6529 or Email to kim@azhousing.org

Registration will not be accepted without payment. Registration fee does not include Hotel Accommodations.

June 8 & 9 June 8 Only June 9 Only Golf

June 8 & 9 June 8 Only June 9 Only Golf

June 8 & 9 June 8 Only June 9 Only Golf

June 8 & 9 June 8 Only June 9 Only Golf

Don't miss the Manufactured Housing Communities of Arizona and the Manufactured Housing Industry of Arizona 2nd Annual Joint

Conference June 7 - 9, 2016 at the Wild Horse Pass Hotel!Sponsorship and Exhibitor Opportunities

Diamond Sponsor10 Minutes to Speak at Opening SessionFirst Choice Exhibitor Table LocationFull Conference Registration & Meals for two peopleCo-Sponsorship of the Welcoming Party on June 8Registration for two golfers and Hole SponsorshipFull-page ad in Conference ProgramRecognition in MHCA and MHIA newsletters and websites

Gold Sponsor5 Minutes to Speak at Opening SessionSecond Choice of Exhibitor Table LocationFull Conference Registration & Meals forone personRegistration for one golfer and Hole SponsorshipHalf-page ad in the Conference ProgramSponsorship listed in MHCA and MHIAnewsletters and websites

Sponsorship Fee: $1,500

Silver SponsorThird Choice of Exhibitor Table LocationFull Conference Registration & Meals forone personRegistration for one golfer and Hole SponsorshipQuarter-page ad in the Conference ProgramSponsorship listed in MHCA and MHIAnewsletters and websites

Sponsorship Fee: $1,000

Exhibitor Table

Exhibitor Tables include meals for one person and a listing in the Conference Program and MHIA andMHCA newsletters and websites.

Exhibitor Table: $450

$2,500Fee

Page 3The Arizona Housing NewsletterMarch - April 2016

Page 4The Arizona Housing NewsletterMarch - April 2016

Sponsorship and Exhibitor Registration Form (Please complete as you would like to be listed in the Program)

Company: ________________________________________________________________________________________

Name(s) of Individuals Attending: ______________________________________________________________________

_________________________________________________________________________________________________

Address: __________________________________________________________________________________________

City: ____________________________________________ State: __________ Zip: ___________________________

Phone: _________________________________________ Fax: ____________________________________________

Website: ________________________________________ Email: ___________________________________________

Brief description of product and/or services: ______________________________________________________________

__________________________________________________________________________________________________

Diamond Sponsor $ 2,500 (includes registration & meals for 2)Gold Sponsor $ 1,500 (Includes registration & meals for 1 person)Silver Sponsor $ 1,000 (Includes registration & meals for 1 person)Exhibit Booth Only $ 450 (includes registration & meals for 1 person)Additional Registrants $ 200 each (Includes registration & meals)Golf Hole Sponsor $ 150Golf Tournament Players $ 100 per player

Prize Donation _________________________________ or $ __________

TOTAL (please make check to MHIA) $ __________

Any Special Dietary Needs: ___________________________________________________________________________

If paying by credit card, please complete the following:

Name on Card: ________________________________________ Card #: ___________________________________

Exp. Date: ______________ Security Code: ___________ If card is billed to a different address than that above:

Address: ________________________________________________________________________________________

City: _____________________________________________ State: ________ Zip: ____________________________

Please send to:MHIA, 4525 S. Lakeshore Dr., #105, Tempe, AZ 85282

For more info, call 480-456-6530 or email kim@azhousing.org

Will you need electricityfor your booth?

p Yes p No

Page 5The Arizona Housing NewsletterMarch - April 2016

5 BReAKthRough discoveRies iN selliNg JuNe 8th with JohN Ace uNdeRwood

5 Breakthrough Discoveries in Selling (that you need to know about) will be presented at the 2016 Manufactured Housing Conference by renowned sales consultant, John Ace Underwood.

Have you ever wondered why the selling systems we had just a few years back just done seem to get the same traction or results as they did even 10 years ago? A number of breakthrough discoveries have been made in the areas of psychology and consumer behavior that have a monumental impact on how we have to sell today, if we wish to maximize our results. It is the lack of awareness of these breakthrough discoveries that are causing you and your team to lose more sales than you can imagine.

The hardest business to measure is the business you lose, and the only defense we have against unnecessarily losing sales, is to keep abreast of what is happening in the sales world. It’s not complicated, you just have to know what to do.

What we have found is that a number of sales tactics still being taught today, not only are ineffective today, but actually are harmful to your sales efforts.

Come join us as John Ace Underwood not only reveals these breakthrough discoveries, but, in his typically entertaining as well as informative manner, provides some easy to follow steps you and your sales team can implement immediately and increase your sales results.

I promise, you’ll be glad you did.

John Ace Underwood

Over the past 25 years, Mr. Underwood has focused entirely on the development of sales teams, training both sales and sales management personnel in the factory built housing industry. His monthly articles in trade publications covering a variety of sales and sales management issues are both well received and widely read.

Mr. Underwood is considered as one of the most respected subject matter experts in the areas of consumer behavior, sales and sales management development and training.

As a consultant, sales and sales management trainer and keynote speaker, Mr. Underwood has helped thousands of sales professionals increase both their understanding of the psychology of selling as well as their personal sales performance.

For his corporate clients, Mr. Underwood has helped increase their sales productivity, some by as much as 50%+ per year for 3 consecutive years.

Bottom line… if you want to increase sales, he’s worth listening too.

John Ace Underwood

Page 6The Arizona Housing NewsletterMarch - April 2016

Many Thanks to Our 2016 Conference Sponsors & Exhibitors!

Diamond Sponsors Cavco Durango; Cavco West; & Fleetwood Homes Champion Home Builders & Redman Homes Clayton Homes; Golden West Homes; Karsten Homes; Marlette Homes & Schult Homes

Gold Sponsors Spectrum Utilities

Conference Exhibitors � 21st Mortgage Corp � AmRent � Apex Billing � Arizona Home Supply � Bonds Alarm � Cavco Durango / Cavco West / Fleetwood Homes � Champion Home Builders / Redman Homes � Clayton Homes / Golden West / Karsten / Marlette / Schult Homes � CU Factory Built Lending � Evans, Dove & Nelson � Flagstaff Insurance � Guardian Water & Power Inc. � Heritage Distributing � Holbrook Asphalt

� Hull, Holiday & Holiday, PLLC � Nalico General Agency � National Tenant Network � Park Brokerage � Rent Manager � Spectrum Utilities � Sunland Asphalt � Teamwork Mortgage & Insurance �Williams, Zinman & Parham

Silver Sponsors 21st Mortgage Corp Holbrook Asphalt Company Sunland Asphalt

There’s still time to become a Sponsor or Exhibitor at this year’s Conference! Your Valuable Support helps us to continue to deliver awesome educational programs, as well as entertainment to our wonderful attendees. Please help support this event and the industry by Sponsoring or Exhibiting today, and in return you’ll receive great recognition.

Sponsors on MHIA Website

Page 7The Arizona Housing NewsletterMarch - April 2016

MhiA MeMBeRs AppoiNted to oMh BoARd

fuNdRAiseR foR KyRsteN siNeMA hosted By MhiA chAiRMAN, cody peARce

Several Members of the Manufactured Housing Industry of Arizona were appointed by Governor Doug Ducey to the Arizona State Board of Manufactured Housing this year. They are MHIA Chairman, Cody Pearce of

Cascade Financial Services who was appointed as a Public Member; Joe Stegmayer of Cavco Industries, Inc., who was appointed as HUD Manufacturer Representative; and Wayne Syrek of The Adams Agency, who was also appointed as a Public Member. Cody, Joe and Wayne join MHIA Members, Sam Baird, Clayton Buckeye, and Terry Gleeson, Gleeson MH Service, who were previous appointees currently sitting on the OMH Board. Congratulations, gentlemen, and thank you for serving our industry!

Please help support Kyrsten Sinema in her bid for re-election. Kyrsten Sinema has been one of our greatest supporters in DC. Not only was she one of the first Sponsors of our Preserving Access to Manufactured

Housing Act, she spoke on the House Floor in support of the bill and rallied many of her fellow Democrats to support it as well. She has taken some heat from the more Progressive party members, but she has stood by us and continues to give her support. We invite you to attend this fundraiser in her honor. If you cannot attend, you can send contributions to MHIA, 4525 S. Lakeshore Dr., #105, Tempe, AZ 85282. Contributions must be Personal Funds, corporate funds cannot be accepted. Checks should be made payable to Kyrsten Sinema for Congress. Any amount is greatly appreciated!

Page 8The Arizona Housing NewsletterMarch - April 2016

Mhi AdvANces Mh fiNANciNg RefoRM

The negative impact of Consumer Financial Protection Bureau (CFPB) rules on the ability to buy, sell and finance manufactured housing loans

was discussed on Thursday, April 7th at a Senate Banking Committee hearing, entitled “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress” thanks to efforts by the Manufactured Housing Institute (MHI).

Sen. Joe Donnelly, D-Ind., the sponsor of MHI’s priority legislation, the Preserving Access to Manufactured Housing Act (S. 682), highlighted the need for the bill by expressing concerns about the impact of CFPB rules, raising questions to CFPB Director Richard Cordray about the decline of manufactured housing loans since the CFPB regulations went into effect.

“We have previously discussed the impact of CFPB’s rules on manufactured housing lending and I do have concerns that the new rules would negatively impact the ability of the consumers to buy, sell or refinance these homes as financing for smaller balance loans is becoming more difficult,” Donnelly said.

Donnelly cited Home Mortgage Disclosure Act (HMDA) data that confirms that manufactured home lenders are not making loans that fall into the revised Home Ownership and Equity Protection Act (HOEPA) category. HMDA data shows that after HOEPA rule changes kicked in starting in 2014, manufactured housing lenders stopped making loans with the HOEPA designation, denying borrowers mortgage credit for these types of loans.

While manufactured home loans of all size categories went down, the declines were MHI Week in Review is a biweekly member-only publication with important updates on its federal legislative and regulatory activities, association accomplishments, and other important items that members need to make important business decisions and to keep well informed on issues affecting all sectors of the manufactured and modular housing industries. While manufactured home loans of all size categories went down, the declines were largest for smaller dollar loans, the category of loans that the new rules impacted the most.

In comparison, overall mortgage loan data for all homes, meanwhile, shows a 2013 to 2014 year over year increase in the number of mortgage loans. “The 2014 HDMA mortgage data shows that high cost manufactured home loans have basically evaporated at this point since the rules went into effect,” Donnelly said.

The Federal Reserve issued an analysis of the 2014 HMDA Data. They called the decline in manufactured home loans: “a precipitous drop in the number of loans originated in 2014 at the HOEPA price threshold, whereas, for 2013 - before the new threshold rules took effect - no such discontinuity was evident.”

Senator Donnelly’s questions to CFPB Director Cordray helped make a compelling case for the legislative changes in S. 682, which makes necessary adjustments to ensure financing is available for manufactured housing, while keeping in place the important consumer protections of the Dodd-Frank Act.

“The evidence clearly demonstrates that regulations implemented as a result of the Dodd-Frank Act have become a barrier to the financing needed for manufactured homes,” said Dr. Lesli Gooch, Ph.D., Senior Vice President of Government Affairs and Chief Lobbyist for MHI.

“The Preserving Access to Manufactured Housing Act contains two slight revisions to CFPB regulations that can spur lending without harming the consumer protections contained in the Dodd-Frank Act. Manufactured housing provides a key alternative to rising home prices and rental rates that are squeezing American buyers. To restore the American dream of homeownership for these credit-worthy families, these regulations must be fixed. We appreciate Senator Donnelly’s hard work to advance these simple, but meaningful, reforms.”

Page 9The Arizona Housing NewsletterMarch - April 2016

hud issues guidANce oN Mh iNstAllAtioN stANdARds foR fReeziNg cliMAtes

On April 11th, in response to numerous questions and requests for guidance from industry stakeholders regarding how to comply with HUD’s Installation

Standards for certain foundation systems in freezing climates, Office of Manufactured Housing Programs (OMHP) Administrator, Pamela Danner issued an interim guidance memorandum that provides additional guidance for certain foundation systems used in cold climates. The issue has been highlighted by HUD’s implementation of installation programs in the thirteen states that never implemented their own programs following the 2009 final rule which set forth minimum installation standards and licensing and

training requirements for installers. Additionally, HUD has delayed a project underway in New York because of concerns with the developer’s alternative foundation system design. The new guidance sets forth three types of foundation systems that may be used in freezing climates and provides installers with the following recommendations:

1. Install all footings and piers below the frost line depth; OR

2. For frost free foundations, have a site investigation performed by a soils engineer or geotechnical engineer to verify soil condition. In lieu of a site soil investigation, a layer of washed gravel, or crushed stone, or course or dense sand may be provided to the frost line depth. For either of these alternatives, subsurface drains are needed; OR

3. Use a Frost Protected Shallow Foundation system that utilizes below ground insulation with subsurface drain.

HUD’s memo says that it will be issuing further recommendations regarding the safe installation of foundations in freezing climates sometime in the future. MHI is concerned that this guidance goes beyond what is required in the minimum installation regulations. In Congressional testimony last month, MHI testified that in matters such as these, HUD either needs to conduct rulemaking or at least confer with industry stakeholders, including the MHCC, before issuing memorandums that change federal regulations.

For a copy of the Interim Guidance Memorandum, click here.

Page 10The Arizona Housing NewsletterMarch - April 2016

oN cApitol hill ANd iN the NAtioNAl MediA... Mhi AdvANciNg the pRioRities of the iNdustRy

Spring has just begun and already the Manufactured Housing Institute is making serious headway in advancing the legislative, regulatory reform and public awareness priorities of the manufactured housing industry in

Washington, D.C. and nationwide.

Congressional Testimony This Week MHI Board of Directors Member F. R. Jayar Daily testified before the U.S. House Financial Services Committee's Subcommittee on Housing and Insurance hearing entitled "The Future of Housing in America: Government Regulations and the High Cost of Housing" on Tuesday, March 22. Mr. Daily discussed with Congress members the need for regulatory and housing finance reform, the need to create a secondary market for chattel loans, and a host of other burdens weighing on manufactured housing such as outdated safety regulations and costly administrative burdens. (To read MHI's written testimony, click here.) "Manufactured homes are the most affordable homeownership option in the market today and MHI appreciates the opportunity to offer our ideas to the Subcommittee about how to improve access to credit for families buying these homes, to streamline regulations and remove regulatory barriers to affordability, and to update outdated construction standards that impact cost and innovation," Mr. Daily told Congress members.

"MHI believes that manufactured housing can help address America's affordable and workforce housing challenges into the future. MHI stands ready to work with the Subcommittee to develop appropriate legislative language and identify specific regulatory changes, to implement these recommendations to alleviate the challenges facing working families, seniors, and young professionals seeking quality affordable homeownership opportunities." Mr. Daily said there are three primary challenges facing the manufactured housing industry that need reform: financing, regulations and an outdated HUD Code. "We have a housing finance system that does not adequately meet the needs of borrowers looking to finance their purchase of a manufactured home," Mr. Daily told committee members. "CFPB regulations pertaining to the definition of loan originators, as well as the HOEPA provisions governing small balance loans have prompted a decline in smaller loans-shutting out many consumers," he said. "In addition, FHA's Title I program for chattel lending simply does not work - as evidenced by the fact that there are only 80 certified appraisers in the entire country, and the fact that there was only $24 million in endorsements in 2015. "Finally, despite the 2008 Housing and Economic Recovery Act's duty to serve requirements for manufactured housing, Fannie and Freddie have largely stayed away from participation in the chattel, or home only, financing, which finances close to 70% of the market. With the recent proposed duty to serve rule, we see the opportunity for the development of a secondary market for chattel loans," Mr. Daily said. (To read MHI's comment letter to FHFA on the proposed Duty to Serve rule, click here.) (Continued on Page 10)

Page 11The Arizona Housing NewsletterMarch - April 2016

Mhi oN cApitol hill & iN the MediA (Continued)

The second headwind, Mr. Daily said, is that manufactured housing production is regulated by the "HUD Code," a comprehensive set of guidelines that touches virtually everything in the assembly and site location process. While the industry works well with HUD, there are several areas where improvements are needed.

Finally, Mr. Daily said that the third strong headwind - the 1974 legislation that brought the industry into the modern era - the Manufactured Housing Construction and Safety Standards Act has become antiquated. For example, the Act puts the industry under federal lemon laws - even though we are not in the automobile business and have otherwise robust quality assurance and dispute resolution tools under the HUD Code. And the Act requires that homes be built on a steel chassis - which stifles design innovation.

MHI in the Media MHI's important work on these issues has earned national media attention this past week. MHI's critical effort with FHFA produced headline stories in National Mortgage News and elsewhere online. The National Mortgage News story, entitled "Trade Group Lobbies for GSEs to Purchase Chattel Loans" can be read here. The story explains that, "The Manufactured Housing Institute is calling on the Federal Housing Finance Agency to push the government-sponsored enterprises to purchase chattel loans." American Banker is also interviewing MHI this week for an upcoming story for its publication. (We'll alert you when it publishes.) MHI recently wrote an essay for American Banker on the subject of regulatory and financing reform to expand opportunities for manufactured housing buyers entitled "Manufactured Housing Industry a Monopoly? Anything But." "For the record, the Manufactured Housing Institute has been leading the campaign to bring more lenders into the manufactured housing market for years. Since the housing crisis, MHI has advanced a comprehensive plan to address the availability of credit for manufactured home buyers. That includes slight adjustments to Consumer Financial Protection Bureau rules, as well as engagement both with the Federal Housing Administration to make sure its manufactured housing programs are workable, and with the Federal Housing Finance Agency and government-sponsored enterprises to foster a secondary market for 'chattel' loans," MHI wrote.

RegisteR to AtteNd the

JoiNt MhiA & MhcAARizoNA MANufActuRed housiNg coNfeReNce

JuNe 7 - 9, 2016At the

wild hoRse pAss hotel & cAsiNo

Page 12The Arizona Housing NewsletterOct - Nov 2015 Page 8The Arizona Housing NewsletterDecember 10, 2009 Page 6The Arizona Housing NewsletterJuly 28, 2008

Visit our website www.azhousing.org for an archive of past newsletters, shipment reports and other information!

Manufactured Housing Industry of Arizona4525 South Lakeshore Drive, Suite 105, Tempe, Arizona 85282

Phone: (480) 456-6530 Fax: (480) 456-6529 Email: info@azhousing.org Web: www.azhousing.orgKen Anderson, President - ken@azhousing.org

Kimberly Merrill, Director of Operations - kim@azhousing.org

7th Government Relations & Zoning Committee Board of Directors Meeting

7th Annual Golf Tournament at Whirlwind Golf Club in Chandler

8 - 9 2016 Arizona Manufactured Housing Conference at Wild Horse Pass Hotel & Casino (CLICK HERE TO REGISTER)

Calendar of EventsMAY11th Tucson Division Meeting, 6:30 pm Mimi’s Cafe at The Tucson Mall Scott Townsend, Division President stownsend@westernamericanhousing.com

24th Phoenix Division Meeting, 12:00 pm MHIAZ Office, Tempe Kory Beickel, Division President kbeickel@countryplacemortgage.com

On February 9, 2016, HUD issued a proposed rule to update its current exemption for recreational vehicles (RVs). The new exemption reflects current industry practices, more clearly differentiates RVs and Park Model

Recreational Park Trailers (PMRVs) from manufactured homes, simplifies the current definition of recreational vehicle, and clearly states that RVs and PMRVs are not subject to the regulations of the manufactured housing construction and safety standards and regulations. Under the HUD proposal, RVs are defined as vehicular structures not certified as a manufactured home; built in accordance with either the industry standard for RVs (ANSI 119.2-15) or the industry standard for Recreational Park Trailers (ANSI 119.5-15 respectively); and, any vehicle which is self-propelled. The proposal requires manufacturers of PMRVs to provide a notice displayed in the unit certifying that it is a Park Model Recreational Vehicle, designed only for recreational use....and built to the appropriate ANSI standard. The proposed rule is similar to the December 2014 recommendation of the Manufactured Housing Consensus Committee (MHCC). The MHCC did not recommend that a PMRV contain the consumer notice. MHI will be submitting comments on the proposed rule, which are due by April 11, 2016, and is soliciting specific comments or concerns from members. Click here for a copy of the proposed rule.

hud pRoposes Revised exeMptioN foR RecReAtioNAl vehicles

JUNE