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: NJMHA@njmha.org

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: ekarsh@lakeshoremhc.com

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: senior@century21.com

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

lorijdcpa@gmail.com

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 cheryl@mfghome.org.

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

Richard@gardenhomesmanagement.com

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 selika.gore@dot.state.nj.us.

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

gtyler@tcglaw.com mcarmeli@tcglaw.com

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