Vol. 15, No. 12 12/01/2015

FMHA AND FMO MOVE FORWARD WITH JOINT INDUSTRY LEGISLATION

In anticipation of an early start to the 2016 Florida legislative session (January 12 ) the FMHA has been meeting with the leaders of the Federation of Manufactured Home Owners of Florida (FMO) for the past several months to explore the possibility of reaching agreement on joint industry legislation. The process was similar to last year with the difference being that the FMHA brought an equal number of proposals to the table as the FMO. After eliminating proposals that the parties could not agree to, the two industry groups’ agreed to propose six amendments to Chapter 723, Florida Statutes, The Florida Mobile Home Act.

The proposals include:

1. Creating a statutory complaint handling process for home owner complaints. The division (DBPR) will be required to notify a complainant, in writing, of the status of a complaint within 30 days of receiving the complaint and the status of the investigation within 90 days. When a complaint has been closed the division will be required to notify the complainant and the party complained against, in writing, the results of the investigation and disposition of the complaint.

2. Specifying that a community owner can pass-through “non-ad valorem tax assessments”.

3. Allowing a community owner that has not given a 90 day notice of a rent increase prior to the renewal date of the rental agreement to provide a 90 day notice at a later date and provide a rental agreement for a period of less than 12 months.

4. Allowing a homebuyer to cancel a contract to purchase a home if they have not been approved for tenancy by the community owner within five (5) days of the scheduled closing.

5. Specifying that in order for a home owner to be a member of the homeowners’ association they must consent to be bound by the governing documents and policies of the HOA. This provision also specifies that the homeowner’s association (HOA) is the representative of all home owners, regardless of whether or not the homeowner is a member of the HOA.

6. Specifying that each home has only one vote in HOA matters.

Senator Jack Latvala (R-Clearwater) introduced the joint industry legislation in the Senate (SB 826) and his son, Representative Chris Latvala (R-Clearwater) introduced companion legislation in the House (HB 743). The bills have not yet received committee assignments.

We’ll keep you updated on the progress of the joint industry legislation and any other manufac-tured housing legislation that may impact your business.

SAIL General Counsel’s Comments ..............2

Local Company Builds Hurricane-Resistant Modular Homes ....2

National News ....................................3

Florida Settles on 4.7% Cut in Workers Comp Rates...........................4

New Members ....................................4

ACM Course Series Offered Summer 2016 ....................................5

Consumer Price Index .........................5

Consumer Complaint Report ................6

Calendar ............................................6

Production and Shipments ...................7

Sail Away with FMHA ...........................8

ALSO IN THIS ISSUE:

Happy Holidays

fmhafrom

Cyndi King

President (Developer Division)

Matthew Steiner Vice President (Filled Community Division)

Kelly Lake Treasurer (Dealer Division)

Nicole Weis Secretary (Filled Community Division)

Dan Rop Immediate Past President (Retailer Division)

Steve Adler Membership Chairman

Roger Allen (Finance & Insurance Division)

Ken Cashin Legislative Chairman

Jim Dale (Filled Community Division)

Alice Funk (Finance & Insurance Division)

John McPherson (Retailer Division)

Dennis Schrader (Manufacturer Division)

Mike Sellers (Supply & Service Firm Division)

Janette Weis (Manufacturer Division)

Mike Wnek Marketing & PR Chairman

Bob Young (Developer Division)

Eric Zimmerman (Filled Community Division)

EXECUTIVE COMMITTEE

Advertising note: The content of any advertising insertion is prepared solely by the advertising member. By the insertion, FMHA does not endorse the product or service being offered nor is it, in any way, responsible nor liable for the content of any such advertisement.

GENERAL COUNSEL’S COMMENTS

Court News of Interest

A circuit court judge sitting in Lake County recently awarded $235,869.94 in attorney’s fees and court costs to the Legal Advocacy Center of Central Florida against a mobile home park owner. The Advocacy Center, a private law firm, represented a homeowners’ association and a number of individually named mobile home owners in a case against a park owner that was initiated in 2009 and asserted claims beginning with a 2006 rent increase.

The court found the plaintiffs prevailed on the claims of unreasonable monthly lot rent increase, invalid prospectus--illegal rule changes, and interference with the home owners’ right to quiet enjoyment. The court noted there was a decline in the mobile home park maintenance with no corresponding relation to monthly lot rent. The deteriorated conditions resulted in injury to the residents because the condition of the park facilities interfered with the residents’ ability to use and enjoy the community. Because all these matters arose under Chapter 723, the court awarded fees and costs pursuant to section 723.068, Florida Statutes.

After determining an award amount based on reasonable fee amounts and reasonable hours spent, the court applied a 1.5 multiplier to determine the final fee amount due. The court found the multiplier was necessary because the case was taken on a contingency basis, there was a risk of nonpayment, and “in order to obtain competent counsel to litigate and prosecute mobile home park cases on behalf of low and moderate income home owners such as here.”

The judgement was entered against the individual property owner who had not set up a business entity to own and operate the mobile home park. The risk and exposure demonstrated in this case empha-sizes the need to shelter individual liability and other owned assets by the creation and use of business entities.

This trial court decision does not create precedent that other judges must follow, but can be referenced as legal authority to be considered in future cases.

Items for this column are intended for a wide audience and not intended to provide, nor are they to be relied upon as legal advice. Members should consult their own attorneys before taking any action in response to items in this column. Questions about this column can be directed to David Eastman at Lutz, Bobo, Telfair, Eastman, Gabel and Lee at toll free 1-877-521-0890.

LOCAL COMPANY BUILDS HURRICANE-RESISTANT MODULAR HOMES

By Cait McVey, Reporter, Bay 9 News

PALM HARBOR -- A Bay area company is making great strides when it comes to hurricane-resistant modular homes. Over the summer, Palm Harbor Homes became the first ever company to receive the Fortified Home certification from the Insurance Institute for Business and Home Safety.

Open since 1977, Vice President of Sales Mark Kelly said times have certainly changed.“Every home that is built now is capable of standing up to 3 second, 150 miles per hour wind gusts,” Kelly said.

Kelly said the main focus is the roof, starting with peel and stick flashing. “It actually adheres to the roof decking and virtually waterproofs the roof system,” Kelly said.

Ridge venting is added to prevent wind uplift and everything is secured into place with a ring shank nail, which has little grooves and is dipped in resin that heats up when hammered in.

“When that friction occurs, it creates a resin relief that binds that ring shank nail much better than a conventional nail,” Kelly said. Double the wood is also used on window and door frames.

Put it all together and you have a hurricane-resistant modular home, thanks to what Kelly calls advance-ments in construction over the past few decades.

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News From FMHA, Vol. 15, No. 12 (12/01/2015)

NATIONAL NEWS

Industry Push Needed to Support Preserving Access to Manufac-tured Housing Act Provisions in Appropriations Bill

The federal government is currently operating under a “Continuing Resolu-tion,” which passed in October and runs through December 11th. Congress is working to pass an omnibus spending bill to avoid a government shutdown and to allocate spending across federal agencies. Because it is a “must-pass” bill, Congress will likely include legislative changes, known as policy riders, in the omnibus package. At a news conference on Thursday, House Speaker Paul Ryan confirmed that he expects the omnibus spending bill will include policy riders.

MHI has been working to ensure the Preserving Access to Manufactured Housing Act (H.R. 650/S. 682) is passed this year. The language could catch a ride on the must-pass omnibus Appropriations package as a policy rider because the bill was included in the Senate’s Financial Services and General Government Appropriations bill (Section 909 of S. 1910) in July. As S. 1910 is combined with 11 other appropriations bills covering all areas of the government, it is imperative that we advocate for Section 909 to remain in the final package.

Representatives and Senators need to hear from you, their constituents, about the importance of keeping the Preserving Access to Manufactured Housing Act in the final omnibus appropriations agreement.

Progress on Duty to Serve

Based on our efforts, MHI believes that the Federal Housing Finance Agency’s (FHFA) rule on Fannie Mae and Freddie Mac’s “Duty to Serve” manufac-tured housing will be coming out soon. This is an important priority for MHI, particularly the provision asking the GSEs to consider purchasing chattel loans. MHI, in collaboration with its Financial Services Division and National Communities Council, has been actively advocating for a strong proposed rule.

Manufactured home-only loans (known as chattel loans) comprise between 60 to 70 percent of all manufactured home financing. Given the large important role that chattel loans play in the manufactured home market it is impossible, in any meaningful fashion, to “dutifully serve” the needs of the manufactured housing market as required in the Housing and Economic Recovery Act of 2008 without providing manufactured home loans secured by personal property the opportunity to access secondary market mecha-nisms.

As we have previously reported, FHFA asked MHI to sit down with some consumer groups to see if there could be common ground on consumer protections - which we did. Without making any concessions that could limit the availability of loans under “Duty to Serve” or more broadly, we made progress in reconciling our differences. This effort was necessary and we have made a strong case about how GSE-supported real estate and chattel manufactured home loans would fill a critical role in the market, while being done in a financially responsible and consumer-responsive manner.

We have worked not just with consumer groups, but also the GSEs, to explore ways they can purchase more manufactured housing loans and

work with more of our lenders and communities. Once the “Duty to Serve” rule comes out, MHI will weigh in with formal comments and push for the strongest possible rule for manufactured housing.

If you have any questions, please contact MHI’s Senior Vice President, Government Affairs, Lesli Gooch, Ph.D. at (703) 558-0660 or lgooch@mfghome.org.

DOE Energy Efficiency Standards under Review by OMB

A proposed new energy efficiency standard for manufactured housing approved last year by a 27 member advisory committee comprised of industry members, public officials, energy stakeholders and consumers, is undergoing a review by the White House Office of Management and Budget (OMB) before being published in the Federal Register later this year.

As a significant rule with a significant cost impact to the industry, OMB must review the proposal to ensure that economic and other impacts are assessed as part of regulatory decision-making. When OMB completes its review, the Department of Energy (DOE) will publish the rule for public comment. A final rule is not expected until late in 2016. It is likely that new energy standards will not become effective until sometime in 2017. For detailed information about the standards recommended by the DOE ASRAC Working Group on Manufactured Housing, click here.

MHI members with questions, can contact Lois Starkey at (703) 558-0654 or lstarkey@mfghome.org.

EPA to Ban Some Foam Blowing Agents Used in Construction

As part of President Obama’s unfolding Climate Action Plan, the U.S. Environ-mental Protection Agency (EPA), in June, published a final rule that will phase out the use of certain foam blowing agents and refrigerants. Hydrofluoro-carbons (HFCs) were introduced in the 1990s to replace ozone-depleting substances, but many have extremely high global warming potential.

Specific substances to be banned include HFC-134a, commonly used as the blowing agent for extruded polystyrene (XPS) foam insulation; HFC-143a and HFC-245fa will also be banned for production of many types of polyurethane foam but still allowed in spray polyurethane foam. A number of HFCs branded by DuPont under the name Formacel must also be phased out.

The ban for blowing agents will take effect January 1, 2017. For a list of HFCs to be banned or phased out, click here.

MHI members with questions, can contact Lois Starkey at (703) 558-0654 or lstarkey@mfghome.org.

MHI Calls for Changes to Federal Manufactured Housing Lending Programs and Regulations to Help Combat Poverty and Promote Housing Affordability

Last month, MHI submitted a series of recommendations to the House Finan-cial Services Committee, offering constructive suggestions on how to improve programs and regulations affecting manufactured homes. This submission comes in response to a request by House Financial Services Committee

...continued on page 6

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News From FMHA, Vol. 15, No. 12 (12/01/2015)

NEW MEMBERS

Subterrain Technologies, Inc. Geoff Knutson and Trayci Wells

3927 US Hwy 19 Palmetto, FL 34221

Phone: (941) 721-3446 Fax: (941) 212-8300

E-mail: Geoff@subterrainfl.com Website: www.subterrainfl.com

Prime Income Properties, LLC Brian Keller

2840 West Bay Drive, #74 Belleair Bluffs, FL 33770 Phone: (727) 686-2700 Fax: (727) 686-2700

E-mail: brkprime@gmail.com Website: www.primeincome.properties

Florida Fast Title Karen Matera

6310 N. Nebraska Avenue Tampa, FL 33604

Phone: (813) 237-5805 Fax: (813) 237-5709

E-mail: Karen@floridafasttitle.com Website: www.floridafasttitle.com

Utility Data Solutions Jeff Davoli

2895 Grey Oaks Tarpon Springs, FL 34688 Phone: (941) 907-6651 Fax: (813) 728-1360

E-mail: jdavoli@uds-sales.com Website: www.velocityreads.com

Land South Country Villas Justin Harden

5435 Lewellyn Road Lakeland, FL 33810

Phone: (863) 937-8867 Fax: (863) 607-9522

Email: Justin@landsouthgroup.com

Cocoa Estates, LLC Bruce Lunsford

4350 3rd Avenue NW Naples, FL 34119

Phone: (321) 632-3820 Fax: (239) 354-2540

E-mail: bruce@ableinspector.com Website: www.cocoaestates.com

ManufacturedHousing Loans

For families purchasing a manufactured home through our approved dealer network, we canhelp with a loan on a new, previously owned, owner occupied or vacation mobile home. Wehave been serving the manufactured housing market for over 50 years. You can count on us for flexible solutions, great rates and terms, and exceptional personal service.

SouthStateBank.com / (866) 573-5568All loans subject to credit approval. Member FDIC.

FLORIDA SETTLES ON 4.7% CUT IN WORKERS COMP

After rejecting the National Council on Compensation Insurance Inc.’s proposal to cut overall workers comp rates in the state by 1.9%, Florida’s Office of Insurance Regulation has settled on a decrease of 4.7% for 2016.

Florida Insurance Commissioner Kevin M. McCarty earlier this month ordered Boca Raton, Florida-based NCCI to submit a new rate filing that contained a 5.1% reduction. However, on Thursday, he approved a workers comp rate decrease of 4.7%, according to a statement by the Office of Insurance Regulation.

Commissioner McCarty initially called NCCI’s recommended 4% profit and contingency provision “excessive,” saying it “does not adequately reflect investment income or unearned premium and loss reserves,” but he since agreed to approve a profit and contingency factor of 2.75%, according to the statement.

“NCCI provided additional information and analyses … to justify increasing the profit and contingency factor above (the current) 2.5%,” Mr. McCarty said in the statement. “This information included an assertion by NCCI that the Federal Reserve … once again declined to increase interest rates when they met in late October.”

The ratings and research organization originally proposed a 1.9% overall rate decrease, as well as a reduction in the expense constant from $200 to $160 and changes to minimum premiums. The expense constant represents the common administrative expenses of issuing and administering a workers comp policy.

The 4.7% decrease will take effect Jan. 1, 2016.

By Stephanie Goldberg; Business Insurance

Page 4

News From FMHA, Vol. 15, No. 12 (12/01/2015)

ACM COURSE SERIES OFFERED SUMMER 2016

FMHA and Chrissy Jackson are partnering to bring another Accredited Community Manager (ACM) series to FMHA members. Regardless of experi-ence, all levels of management are encouraged to participate in the courses.

We are currently looking for a location, preferably a member community clubhouse, to hold the classes. Each ACM course is 2 ½ days ending with an exam on the third day. At the end of ACM 101 a state specific review of laws and regulations will be included and is mandatory for all participants. If you are interested in holding the courses at your community, please contact Beth at (805) 907-9111 or beth@fmha.org. You will receive one complimentary registration for all three courses.

The proposed 2016 dates are: ACM 101 – June 7-9 ACM 201 – July 19-21 ACM 301 – August 16-18

The ACM program is the ONLY professional community management curriculum sponsored by FMHA and you have an opportunity to complete the series this summer. Chrissy will also help you write your business plan.

The course will not be offered again for another two years, if not longer.

Course fees will include a three-ring binder with course materials and a morning coffee break. Lunch is on your own. However, you may wish to bring your lunch.

Based on availability, non-members may attend at a higher price. If you are a member of another manufactured housing state association, you may attend at the FMHA member rate.

The courses must be taken in sequence and students must pass an exam at the completion of each course before advancing to the next.

After taking the three ACM courses, students will write a business plan for a manufactured home community and submit it to the Manufactured Housing Education Institute (MHEI) for approval. This required business plan is actu-ally started during the ACM 301 course. Once the business plan is approved by MHEI the ACM designation will be awarded.

Managers, assistant managers, supervisors, regional managers and owners of manufactured home communities can participate.

To qualify for the ACM designation, the following criteria must be met:

√ You must have five years of experience managing rental property, with three of those years being in a manufactured home land-lease community.

√ You must attend and successfully complete the ACM 101, 201 and 301 courses.

√ ACM candidates must write a business management plan for a manu-factured home community and have it approved by the MHEI.

Community managers must commit to upholding a code of ethics developed for manufactured home community managers.

Questions? Contact Beth at the FMHA office at (850) 907-9111 or email her at beth@fmha.org.

ACM Schedule

June 7-9, 2016 ACM 101 Registration 8:00 am • Class 8:30 am – 5:00 pm (Tuesday & Wednesday) 8:30 am – noon (Thursday – Exam and Mandatory State Specific Review) Cost: $200/person

Property management issues, including resident relations, financial manage-ment, maintenance, leasing and personnel policies. Federal laws, such as Fair Housing, as well as specific State laws and regulations will be covered by FMHA’s General Counsel, David Eastman, immediately following the exam.

July 19-21, 2016 ACM 201 Registration 8:00 am • Class 8:30 am – 5:00 pm (Tuesday & Wednesday) 8:30 am – 10:00 am (Thursday – Exam only) Cost: $225/person

The budgeting process, preparing and analyzing financial reports, and methods for valuing communities. Taxation and the assessment process, insurance, marketing and more on resident relations and communications.

August 16-18, 2016 ACM 301 Registration 8:00 am • 8:30 am – 5:00 pm (Tuesday & Wednesday) 8:30 am – 10:00 am (Thursday – Exam only) Cost: $250/person

Physical assets of the community, such as recreational facilities, signage, landscaping and utility systems. Personnel issues, such as hiring, motivating and evaluating. Development of an operations manual as well as preparation of a business management plan for a community.

CONSUMER PRICE INDEXThe U.S. Department of Labor announced the all items index increased 0.2 percent in the Consumer Price Index for October 2014-2015 (all consumers 1982-84=100).

For the latest CPI figures, go to: http://stats.bls.gov/cpi.

To have the latest CPI figures emailed to you each month, go to http://www.bls.gov/bls/list.htm, enter your name and email address, then check the box for the information you are interested in receiving.

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News From FMHA, Vol. 15, No. 12 (12/01/2015)

Chairman Jeb Hensarling for organizations to submit ideas for addressing housing affordability and poverty. The submission lauded the Committee for shepherding MHI’s top legislative priority, H.R. 650, the “Preserving Access to Manufactured Housing Act,” through the House of Representatives. This legislation would fix problems caused by the Dodd-Frank Act that make it harder for consumers to obtain a manufactured MHI also submitted detailed recommendations for FHA to improve its loan programs, including Title 1 changes that include: (a) raising the allowable underwriting fee so lenders can recover their loan origination costs; (b) establishing more flexible under-writing requirements that are consistent with FHA Title 2 standards; and (c) providing more flexibility for on-site inspectors that assist with appraisals. The submission recommends that for the Title 2 program, the FHA should allow use of the updated Minimum Installation Standards adopted in 2009. MHI also made a number of suggestions for legislative changes to improve the Manufactured Housing Construction and Safety Standards Act of 1974,

and asked the Committee to change HUD rules to allow a Section 8 voucher to be used for the full cost of owning a manufactured home on leased land.

One of the 1974 Act recommendations tracks an initiative MHI has been working on to address zoning and land use issues impacting the placement of manufactured homes in communities across America. MHI believes that HUD can play a greater role in this effort and, in fact, has a Congressional mandate to do so. Updating its 1997 policy on zoning achieves HUD’s pledge to “improve lives by creating affordable homes in safe healthy communi-ties of opportunity and by protecting the rights and affirming the values of a diverse society.”

If you have any questions, please contact MHI’s Senior Vice President, Government Affairs, Lesli Gooch, Ph.D. at (703) 558-0660 or lgooch@mfghome.org.

National News - continued...

CALENDAR

December 24 - 25, 2015 – The FMHA office will be closed for the Christmas holiday.

December 31, 2015 – January 1, 2016 – The FMHA office will be closed for New Year’s Eve.

February 7-9, 2016 - 2016 MHI Legislative Conference & Winter Meeting, W Hotel, Washington, DC. Contact: Cheryl Berard at cheryl@mfghome.org or (703) 558-0668

March 23-25, 2016 - Tunica Manufactured Housing Show, Resort/Hollywood Casino, Tunica, MS. Contact: Dennis Hill at (770) 587-3350

May 3-5, 2016 - 2016 National Congress & Expo, Caesars Palace, Las Vegas, NV. Contact: Cheryl Berard at cheryl@mfghome.org or (703) 558-0668

June 7-9, 2016 – ACM 101, Location: TBD. Contact Beth if you have a community clubhouse available at beth@fmha.org.

June 26-28, 2016 - 2016 MHI Summer Meeting, The Alexander Hotel, Indianapolis, IN. Contact: Cheryl Berard at cheryl@mfghome.org or (703) 558-0668

July 19-21, 2016 – ACM 201, Location: TBD. Contact Beth if you have a community clubhouse available at beth@fmha.org.

August 16-18, 2016 – ACM 301, Location TBD. Contact Beth if you have a community clubhouse available at beth@fmha.org.

September 25-27, 2016 - 2016 MHI Annual Meeting, Pasea Hotel & Spa, Huntington Beach, CA. Contact: Cheryl Berard at cheryl@mfghome.org or (703) 558-0668

BUREAU OF MH/RV CONSTRUCTION CONSUMER COMPLAINT REPORT

Source: Division of Motor Vehicles, Bureau of MH/RV Construction Monthly Consumer Complaint Report * A file was to be closed in September but new items occurred.

2 0

1 0

0 0 7 1 0 1 0 1

7/15

1 4

1 1

0 0 1 4 5 0 31

9/15

3 0

2 0

0 0 7 0 2 2 0 37

8/15

4 1

0 1

0 0 8 8 0 8 0

75*

10/15Complaints Received

Florida Manufacturer Out of State Warranty Complaints Florida Manufacturer Out of State Manufacturer Re-investigation Florida Manufacturer Out of State Packets Mailed Out

Complaints Closed (100%) -Florida Manufacturer -Out of State Manufacturer -Florida Dealer -Out of State Dealer -Average Days Open

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News From FMHA, Vol. 15, No. 12 (12/01/2015)

% Change

September Shipments to Florida Retailers 2012 2013 2014 2015 2014-2015

Single-section homes 46 71 118 100 -15.25%

Multi-section homes 157 175 229 361 57.64%

Total for the month 203 246 347 461 32.85%

Floor Shipments 362 427 584 836 43.15%

Year to Date

Single-section homes 561 585 810 1,025 26.54%

Multi-section homes 1,392 1,587 1,959 2,543 29.81%

Total for the year 1,953 2,172 2,769 3,568 28.86%

Floor Shipments 3,391 3,817 4,786 6,181 29.15%

Florida Production

Single-section homes 38 37 72 60 -16.66%

Multi-section homes 127 122 172 214 24.41%

Total for the month 165 159 244 274 12.29%

Floor Production 294 287 423 498 17.73%

Year to Date

Single-section homes 348 331 511 564 10.37%

Multi-section homes 1,009 1,143 1,476 1,795 21.61%

Total for the year 1,357 1,474 1,987 2,359 15.92%

Floor Production 2,400 2,665 3,603 4,206 16.74%

U.S. Production

Single-section homes 1,884 2,759 2,693 2,728 1.29%

Multi-section homes 2,509 2,724 3,169 3,597 13.50%

Total for the month 4,393 5,483 5,862 6,325 7.89%

Floor Production 6,956 8,269 9,103 10,005 9.90

Year to Date

Single-section homes 19,613 19,334 22,510 23,890 6.13%

Multi-section homes 20,796 21,719 25,657 28,171 9.79%

Total for the year 41,909 41,053 48,167 52,061 8.08%

Floor Production 64,680 63,249 74,391 80,794 8.60%

PRODUCTION AND SHIPMENTS

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News From FMHA, Vol. 15, No. 12 (12/01/2015)