MEMO

September 30, 2008

We know you are busy, but we hope you will take just a minute to review this bullet point list of news items and information that may be important to you as a member of GMHA. The purpose of the “MEMO” is to create a consistent line of communication between the leadership of GMHA (both staff and the Board of Directors) and all our members. As with any new venture or project, the format of this mini-newsletter will be a work in progress for a while. Please be patient with us, and by all means, let us know of ways you think we can improve it. We hope this will become another valued benefit of your membership in GMHA.

·  Assistant State Fire Marshall Chris Stephens would like for us to remind you about the three days of installer training classes scheduled for October 7-9, which will include training on the new HUD Code installation standards that go into effect October 20. Currently licensed installers who need to fulfill their continuing education requirement will want to check out the class on October 9. Please be reminded that HUD has stated that the new installation standards apply to all new home installations as of October 20th, including new homes in existing retailer stock. All installer classes are held at the Holiday Inn in Forsyth, and begin promptly at 8:30 am. For more details and instructions on how to register, you can to go our website at www.gmha.com .

·  Much thanks to Danny Ghorbani of MHARR for forwarding us the following communication on the issue of existing inventories of painted anchors.

“After discussing this issue with several interested parties, HUD has decided that existing inventories of painted anchors manufactured prior to October 20, 2008, may be used to install manufactured homes until February 2, 2009 in all states, including those states in which HUD will administer the program. However, since the HUD installation standards will not preempt state law, states such as Florida may continue to enforce their own anchor requirements.” – Issued 9/26/08 by Mr. Bill Matchneer, Associate Deputy Assistant Secretary at HUD.

·  Fire sprinkler mandates will be part of the 2009 International Residential code and will be required in all one- and two-family homes and townhouses that build to the code as of January 1, 2011, as voted upon at the International Code Council’s meeting in Minneapolis last week. Before the mandates go into effect in Georgia they must be adopted by the GA Department of Community Affairs.

·  There is an excellent article in this month’s The Journal written by GMHA member Danny Lowry on the topic of transportation management. Danny is the president of Bennett Truck Transport in McDonough, the nation’s leading transporter of factory-built housing. Having just come over from the trucking industry, I can tell you that Danny’s analysis of the issues is spot on. While written with an eye on the future, these are issues that are already affecting our industry. We hope you’ll give it a read.

·  Congratulations go out to Lance Helton, son of GMHA Board member Keith Helton of Clayton Homes in Sandersville. Lance is currently the starting right guard for the Valdosta State University football team, which almost everyone in South Georgia knows is the defending national champion in the NCAA’s Division II. Way to go, Lance, and good luck the rest of the season!

·  Zoning & Codes Committee chairman Rick Daugherty has informed us that the following four members have agreed to serve on the committee:

Tom Collins – Flamingo Homes, Athens

Keith Helton – Clayton Homes #832, Sandersville

Steve Schoonmaker – Vivian’s MHs, Inc., Baldwin

Jamie Hanks – Sinclair-Oconee Homes, Warner Robins

We appreciate these four gentlemen being willing to serve on this very important committee.

·  What do you think about a national advertising campaign financed on HUD-code and modular floors sold in Georgia? We are asking because that was the dominant issue at the MHI Annual Meeting held last week in Atlanta. MHI would like to begin a national image campaign in the spring of 2009, using television, print and the Internet. At the Atlanta meetings there was a presentation made to most of the divisions by the advertising agency of Goddard & Associates. Their presentation outlined the general demographics of our customers and demonstrated three possible television commercials and three print ad concepts that stressed quality rather than low price. We learned that a national program like the “got milk” or “go RVing” campaigns would require an annual budget of $10-15 million. The Retailers Division passed a motion to fund the advertising campaign with a $100-per-floor assessment that would include modulars and be included on the home invoice, a move that would produce an estimated $11 million. This motion was passed on to the Manufacturers Division where further discussions prevailed. The Manufacturers Division decided to delay action for at least three weeks, in order to give them time to survey their retailers and corporate executives. They plan to meet by conference call in mid-October. If you would like to weigh in on this very important issue, we invite you to go to the GMHA website, click on Contact Us and enter your thoughts.

·  Another oft-repeated topic at the MHI Annual Meeting was the $7,500 “tax credit” included in the housing bill. It’s really not a tax credit, but an interest-free loan that is payable in 15 equal installments, with payments starting after the second year. Retailers, please make sure that you and your people are explaining the program properly, and that your competitors and site-built builders are not misleading your customers.