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July / August 2007 - California Manufactured Housing Institute

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Page 1<br />

<strong>July</strong> / <strong>August</strong> <strong>2007</strong><br />

A bi-monthly newsletter published exclusively for member companies<br />

CMHI MEMBERS HONORED<br />

During its Annual Symposium in Las Vegas, Nevada the <strong>California</strong> Mobilehome Parkowners’ Alliance (CMPA) honored three<br />

CMHI members for their dedication and contributions to the manufactured housing industry.<br />

Joseph Stegmayer, President<br />

Cavco Industries, Inc. & daughter Eliana<br />

Scott Rosenthal & Michele Boucher,<br />

Owners Modern Mobile Homes<br />

Bill Strunk, Regional Manager<br />

CU Factory Built Lending, LP<br />

Joseph H. Stegmayer, Chairman<br />

and Chief Executive Officer of<br />

Cavco Industries, Inc., accepted the<br />

Manufacturing Services Award for<br />

<strong>2007</strong> on behalf of recipient Cavco<br />

Industries, Inc. Joe joined Cavco in<br />

2000 and has extensive experience in<br />

the manufactured housing industry.<br />

Previously he was Vice Chairman,<br />

President and Chief Operating Officer,<br />

and a member of the Board of Directors<br />

of Clayton Homes, Inc., and Executive<br />

Vice President, Chief Strategic and<br />

Financial Officer for Champion<br />

Enterprises, Inc.<br />

Cavco was recently featured on the<br />

hit television show “Extreme Makeover:<br />

Home Edition” which highlighted a<br />

building the company donated to serve<br />

as a Native American Veterans’ Center.<br />

The company is also listed among the<br />

“200 Best Small Companies”, published<br />

annually by Forbes magazine.<br />

This year’s Retailer Services Award<br />

recipient, Modern Mobile Homes, was<br />

established in 1989 by co-owners<br />

Michele Boucher and Scott Rosenthal.<br />

According to CMPA, Modern’s success<br />

is a reflection of its long-standing<br />

relationships with park managers<br />

and park owners, some relationships<br />

lasting many years. Currently, Modern<br />

is ranked 23rd out of 556 active<br />

dealerships in <strong>California</strong>.<br />

Modern’s business focus includes<br />

in-park listing and sales throughout<br />

San Fernando, Santa Clarita, Ventura<br />

County and Antelope Valley. In addition<br />

to in-park sales, Scott coordinates<br />

the construction phases of resale and<br />

new homes placed on private property<br />

and manages a complete service<br />

department.<br />

Throughout the years, Michele and<br />

Scott have dedicated themselves and<br />

their business to Fulfilling the Promise!<br />

CU Factory Built Lending was named<br />

this year’s Financial Services Award<br />

recipient. Accepting on their behalf<br />

was Bill Strunk, Regional Manager. Bill<br />

has been with the company since <strong>July</strong><br />

of 2004 when the credit union based<br />

direct lender expanded and opened<br />

their Western Regional Office. He is<br />

responsible for product and strategic<br />

development activities, guiding CU<br />

Factory Built Lending’s market position,<br />

sales support, operations support and<br />

helps develop new products.<br />

Prior to joining CU Factory Built<br />

Lending, Bill was the Vice President<br />

and Regional Center Manager for<br />

Chase Home Finance where he grew<br />

the region to one of the largest in the<br />

company.<br />

Bill has also worked for Greenpoint<br />

Credit Corp, Bank America <strong>Housing</strong><br />

Services, Security Pacific <strong>Housing</strong><br />

Services, Transamerica Commercial<br />

Finance and Cavco Industries, Inc.


Page 2<br />

In Memoriam<br />

Norman L. “Norm” McAdoo<br />

1927 – <strong>2007</strong><br />

It is with a deep sense of loss that we inform you of the passing of Norm<br />

McAdoo on June 27th.<br />

Norm was a founding member of CMHI and a consistent supporter of our<br />

efforts to improve and protect our industry.<br />

Mr. McAdoo was the 1997 recipient of the Jack E. Wells Memorial Award<br />

and he was honored with CMHI’s Lifetime Achievement Award in 2002.<br />

Always a leader, always a contributor and always a friend...we will always<br />

celebrate his life.<br />

We extend our sympathy to his wife Virginia and family.<br />

Service arrangements are pending and we will advise everyone as soon as<br />

we are notified.


ViewPoint<br />

Jess Maxcy<br />

OUT OF STATE SALES TAX<br />

We continue to receive calls from<br />

<strong>California</strong> residents and retailers<br />

concerning sales tax on homes<br />

purchased in neighboring states for<br />

delivery in <strong>California</strong>.<br />

The question is always the same…<br />

“An out of state retailer told me that if I<br />

purchase a home in Utah, Arizona, etc.<br />

for delivery and installation in <strong>California</strong>,<br />

I will save money because I won’t have<br />

to pay sales tax. Is this true?” Short<br />

answer…NO!<br />

What is the difference between<br />

sales tax and use tax?<br />

In <strong>California</strong>, transfers of tangible<br />

personal property for a consideration<br />

(sales and purchases) are subject to<br />

sales tax or use tax unless the law<br />

provides an exception (that is, an<br />

exemption or exclusion). Although<br />

the rates are generally the same, sales<br />

tax is imposed on the retailer for the<br />

privilege of selling tangible personal<br />

property in this state. The retailer<br />

may collect reimbursement from their<br />

customer if the contract of sale so<br />

provides. Although this is usually<br />

invoiced as “sales tax,” it is actually<br />

sales tax reimbursement. Whether or<br />

not the retailer collects reimbursement,<br />

the retailer is liable for the tax due.<br />

Use tax is generally imposed on the<br />

purchaser of tangible personal property<br />

that is used, consumed or stored in<br />

this state. Sales of vehicles, vessels,<br />

and aircraft by licensed dealers are<br />

usually subject to sales tax, for which<br />

sales tax reimbursement is collected at<br />

the time of purchase. Use tax applies<br />

“Think Outside the Box”<br />

Page 3<br />

to the cost of vehicles, vessels, and<br />

aircraft purchased from non-dealers<br />

(for example, private parties) or from<br />

outside <strong>California</strong> for use in this state.<br />

Use tax also applies to most leases<br />

of tangible personal property. Private<br />

party sales or brokered transactions are<br />

normally subject to use tax. If the first<br />

use of the property occurs in <strong>California</strong>,<br />

use tax may apply even if the purchaser<br />

is not a resident of the state. The sales<br />

and use tax are “mutually exclusive”,<br />

which means that either sales tax or<br />

use tax applies to a single transaction,<br />

but not both.<br />

The use tax is designed to protect<br />

<strong>California</strong> merchants that would<br />

otherwise be at a competitive<br />

disadvantage when compared to the<br />

out-of-state retailer making sales to<br />

<strong>California</strong> customers without charging<br />

them sales tax. Although the tax rates<br />

of sales tax and use tax are the same,<br />

the difference is that <strong>California</strong> retailers<br />

must pay sales tax to the state and use<br />

tax is the responsibility of the consumer<br />

to report and pay.<br />

continued on page 19<br />

Sales Tax has a Twin Sister<br />

While the homebuyer may not pay<br />

sales tax to the retailer he/she will<br />

not save money. Either the retailer<br />

must report and pay the sales tax or<br />

the homebuyer must pay a use tax,<br />

equivalent to the sales tax, directly to<br />

the State or by reporting use tax on<br />

his/her State Income Tax return [see<br />

Board of Equalization Regulation<br />

1610.2 (5)].<br />

“In general, you must pay <strong>California</strong><br />

use tax if you purchase an item out-ofstate<br />

(for example, by telephone, over<br />

the Internet, by mail, or in person) and:<br />

• The seller does not collect <strong>California</strong><br />

sales or use tax, and<br />

• You use, give away, store, or<br />

consume the item in this state.”<br />

Looking for something unique?<br />

Do you want to appeal to more buyers?<br />

Ranch - Two Story - Lodge<br />

Single Family - Multi-Family<br />

HUD - MOD<br />

Contact: Dave Stanbro<br />

800-336-0874<br />

Email: daves@fuquahomes.com<br />

Fuqua Homes—Bend, OR


Page 4<br />

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Around <strong>California</strong><br />

CMHI WELCOMES NEW MEMBERS:<br />

Retailer Division<br />

Developer/Community Owner<br />

5 Star Homes – Branch<br />

Mike Jessen – San Marcos<br />

Anacapa Homes, LLC*<br />

Katherine Hackett – Ojai<br />

CMJ Classic Homes, Inc.<br />

Dennis Fechter – Chula Vista<br />

Concept Homes of the High Desert<br />

Thomas Miller – Pinon Hills<br />

Cousin Gary Homes – Branch<br />

Larry David – Redding<br />

Liberty <strong>Housing</strong>, Inc.<br />

Eugene S. Davis – Sacramento<br />

Minadora Homes, Inc.<br />

Nadar Samaan – Arcadia<br />

Model Home Center – Branch<br />

Drew Bell – Lake Elsinore<br />

Woodland Homes Co.<br />

Tom Black – Escondido<br />

EXPRESS<br />

ESCROW<br />

COMPANY<br />

EXPERTS IN PERFECTING TITLE<br />

FOR PARK-OWNED HOMES<br />

<strong>California</strong>’s leading authority on<br />

technical issues concerning<br />

manufactured housing<br />

title and escrow<br />

Mobile/manufactured home and<br />

mobilehome park sales and<br />

refinance escrows<br />

Statewide service<br />

7812 EDINGER AVE. SUITE 300<br />

HUNTINGTON BEACH CA 92647<br />

(800) 669-6925 FAX (714) 848-9174<br />

info@ExpressEscrow.com<br />

Gatson Consulting &<br />

Contracting, Inc.*<br />

Stuart B. Gatson – Rancho<br />

Cucamonga<br />

Financial Services<br />

First Credit Corporation of NY, Inc.*<br />

John Nolie – Gloversville, NY<br />

Home Loan Servicing<br />

Bob Arabian – Redwood City<br />

Integrity 1st Mortgage<br />

Kathleen Stratton – Escondido<br />

Land/Home Financial – Branch<br />

Laura Slobojan – Corona<br />

Matrix Financial - Branch<br />

Riki Lopez – Ventura<br />

The Chernay Law Firm*<br />

André Chernay – Folsom<br />

*Pending Board Approval<br />

MEMBERS IN THE NEWS:<br />

Tom Paden, Sr. Spotlighted<br />

The June <strong>2007</strong> Automated Builder<br />

magazine printed a feature story on<br />

Tom Paden, Sr. titled: “Viva Homes<br />

Founder Tom Paden Sr. Builds the<br />

Market, then Builds the Business.”<br />

In his article author Robert Mendel<br />

writes, “It seems the entire HUD-<br />

Code housing industry in <strong>California</strong>,<br />

which is substantial, owes a debt of<br />

gratitude to Paden, founder and owner<br />

Page 5<br />

of Viva Mobile/<strong>Manufactured</strong> Homes<br />

of El Cajon.” He then goes on to<br />

outline Tom’s 34 years in the industry,<br />

which included Tom’s inexhaustible<br />

efforts to promote, and see passed,<br />

<strong>California</strong> SB 1960, which states that<br />

a municipality cannot prohibit the<br />

placement of manufactured homes on<br />

residential lots.<br />

Trinity <strong>Housing</strong> Group and<br />

Silvercrest/Western Homes<br />

Featured<br />

Brotherton Square<br />

The League of <strong>California</strong> Cities March<br />

<strong>2007</strong> Focus on <strong>Housing</strong> highlighted<br />

Brotherton Square, a manufactured<br />

home community subsidized by the<br />

city of Escondido for families who<br />

qualify for low- and moderate-income<br />

housing. Brotherton Square features<br />

22 homes ranging in size from 1,160 to<br />

1,420 square feet.<br />

In the article Beverly Peterka,<br />

Escondido’s housing division<br />

manager, is quoted as saying, “There<br />

is not enough affordable housing in<br />

Escondido. Our city council thought<br />

it would give families that live here a<br />

chance to move into their own singlefamily<br />

homes.”<br />

Articles are posted in their entirety at<br />

www.cmhi.org.<br />

FOUNDATION GOLF<br />

TOURNAMENT A SUCCESS!<br />

1st Place Team<br />

continued on page 7


Page 6<br />

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Real Estate Finance • Pre-Owned Financing • Business Credit Cards<br />

To learn more,<br />

Call us toll-free today at 800-669-7224<br />

or visit us online at www.ge.com/cdf


Around <strong>California</strong> continued...<br />

This year’s Annual CMHI Foundation<br />

Charitable Golf Tourney was a great<br />

success. A field of 80 golfers enjoyed<br />

the scenic beauty of Eagle Vines<br />

Vineyards and Golf Club in Napa,<br />

<strong>California</strong>. Results for the tournament<br />

are:<br />

LONGEST DRIVE – Patrick Boring<br />

STRAIGHTEST DRIVE – Sam Hockett<br />

CLOSEST-TO-PIN #6 – Kim Fortney<br />

CLOSEST-TO-PIN #15 – Jim Brown<br />

1ST PLACE TEAM –<br />

Phil Clark<br />

Dan DeVarennes<br />

Kim Fortney<br />

Jeff Todd<br />

2ND PLACE TEAM –<br />

Kevin Clark<br />

Connor Clark<br />

Ron Smith<br />

Dave Hubbard<br />

3RD PLACE TEAM –<br />

Jeff Carter<br />

David Steen<br />

Mark Maniscalco<br />

Gary Larsen<br />

Patrick Boring<br />

Kim Maliglig<br />

$500 MULLIGAN DRAWING – Kim Maliglig<br />

Kim graciously regifted her mulligan<br />

winnings to the CMHI Foundation.<br />

Thank-you very much, Kim and Quality<br />

Communities.<br />

We offer special thanks to Neal Hocker,<br />

Kasco Homes for all his hard work<br />

in soliciting sponsors and assisting with<br />

tourney preparation! Thank you to our<br />

sponsors and congratulations to our<br />

winners!<br />

LEGISLATIVE UPDATE:<br />

Throughout the <strong>2007</strong> legislative year,<br />

CMHI has been focused on these<br />

specific issues:<br />

1. Clarify the definitions of<br />

“Mobilehome” and “<strong>Manufactured</strong><br />

Home” – status: Senate Bill 538<br />

(Battin) has passed the Senate and<br />

is now being considered by the<br />

Assembly. We know of no opposition<br />

and anticipate a favorable vote in<br />

the Assembly and approval by the<br />

Governor.<br />

2. Amend Section 18035(f) of the<br />

Health and Safety Code to clearly<br />

Page 7<br />

define when a dispute between the<br />

parties to an escrow exists and the<br />

specific steps that each party must<br />

follow – status: Assembly Bill 339<br />

(Cook) is currently under review by the<br />

Assembly Judiciary Committee. CMHI<br />

has submitted amendment language in<br />

an effort to provide procedural clarity.<br />

3. Amend Section 18611 of the<br />

Health and Safety Code to permit<br />

factory built and manufactured<br />

homes on foundation systems in<br />

parks built prior to January 1, 1982<br />

– status: We have encountered some<br />

titling issues concerning factory-built<br />

homes which could lead to unintended<br />

consequences. We are in the process<br />

of reviewing these issues and potential<br />

solutions. Consequently, we will<br />

probably not pursue a legislative<br />

solution in <strong>2007</strong>.<br />

In addition to these issues, CMHI has<br />

established positions on sixteen bills.<br />

Please check our website at www.<br />

cmhi.org for a complete listing and bill<br />

description.<br />

sking@northpacific.com


Across the Nation<br />

ENERGY STAR® REBATES<br />

TO<br />

RETAILERS:<br />

The<br />

<strong>Manufactured</strong><br />

<strong>Housing</strong><br />

Research<br />

Alliance (MHRA)<br />

will pay retailers<br />

a rebate for each<br />

ENERGY STAR®<br />

manufactured<br />

home they sell in Southern <strong>California</strong><br />

(Southern <strong>California</strong> Edison’s service<br />

area). Retailers are eligible for the<br />

following rebates:<br />

• $400 for an ENERGY STAR®<br />

qualified home equipped with a gas<br />

furnace and properly sized cooling<br />

equipment (if installed)<br />

• $750 for an ENERGY STAR®<br />

qualified home with an electric furnace<br />

(home must be equipped with a heat<br />

pump)<br />

In the past, these rebates were paid<br />

CALIFORNIA<br />

SOUTHWESTERN<br />

INSURANCE AGENCY<br />

Low Cost <strong>Manufactured</strong> Home Insurance for your<br />

buyers, and Fast Service for your escrow closings.<br />

to the home manufacturer, but the<br />

manufacturers have together agreed<br />

that the rebate should go to the retailer.<br />

In addition, to help you sell ENERGY<br />

STAR® homes MHRA will provide, at<br />

no cost, sales and marketing materials.<br />

These promotional materials include<br />

a sales DVD, posters, brochures,<br />

window decals, site signage and<br />

other marketing materials. For more<br />

information, contact Gwynne Koch<br />

at MHRA at 212-496-0900 ext. 12 or<br />

gkoch@research-alliance.org.<br />

MHI - MHARR MERGER<br />

REJECTED:<br />

May 15, <strong>2007</strong><br />

To the Members of the <strong>Manufactured</strong><br />

<strong>Housing</strong> <strong>Institute</strong> (MHI):<br />

Despite good faith efforts and hard<br />

work, the leaders of the <strong>Manufactured</strong><br />

<strong>Housing</strong> Association for Regulatory<br />

Reform (MHARR) and MHI have been<br />

unable to resolve significant differences<br />

surrounding the merger of these two<br />

Page 8<br />

organizations and have agreed that<br />

a merger is not feasible at this time.<br />

MHARR rejected MHI’s latest counter<br />

proposal in a May 9, <strong>2007</strong> letter and<br />

the parties agreed that the common<br />

objectives could not overcome the<br />

fact that the two organizations have<br />

significantly different scopes and goals.<br />

The most recent MHARR proposal<br />

would have created an organization<br />

more reflective of the current MHARR,<br />

with members who are not HUD-Code<br />

manufacturers being assigned to lessinfluential<br />

levels of membership and<br />

participation. The newly-launched<br />

Industry Priority Task Forces, targeted<br />

at tackling major industry-wide<br />

challenges and barriers, would have<br />

been disbanded. All HUD-Code<br />

manufacturer matters would have<br />

been handled by MHARR President,<br />

Danny Ghorbani out of an expanded<br />

Washington, D.C. office, while MHI<br />

President Gail Cardwell would be<br />

responsible for a reduced staff handling<br />

all other industry matters in Arlington,<br />

Va. The merged association’s board<br />

continued on page 13<br />

LOW COST MANUFACTURED HOME INSURANCE<br />

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These are some of the reasons to do business with<br />

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21 Orchard<br />

Lake Forest, CA 92630<br />

Toll Free 800-352-0393<br />

Direct line and 24 hour Voice Mail<br />

Maggie Malone 949-707-4222<br />

Larry Staggs 949-707-4220<br />

Fax 949-707-1571<br />

Email lstaggs@csia-ins.com<br />

Visit our website at www.csia-ins.com<br />

License Number 0443354<br />

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BINDERS AND INVOICES FAXED TO YOU WITHIN<br />

THE HOUR.


Page 9


Page 10<br />

An Investment in CMHPAC is an investment in your future. Your contribution to CMHPAC expands our representation in<br />

Sacramento and assists CMHI Lobbyist, Gene Erbin, gain access to Legislators who help to secure the passage of legislation<br />

which allows you to increase your business.<br />

<strong>California</strong> Gold Rush members help make CMHPAC successful in these efforts.<br />

Help-out – send in your $100 contribution to CMHPAC with two business cards<br />

and join the ranks of CMHPAC’s Gold Rush.<br />

For more information contact Kim Lear (909) 987-2599<br />

Your Business Card<br />

could be here...


Page 11


Page 12


Page 13<br />

Across the Nation continued...<br />

of 14 would have included 8<br />

HUD-Code manufacturers, 6 of whom<br />

would be specified by MHARR. The<br />

association’s chairman would always<br />

be a HUD-Code manufacturer.<br />

MHI is, and will remain, broadly<br />

representative of all facets and sectors<br />

of the factory-built housing industry,<br />

emphatically including, but never<br />

limited to, HUD-Code manufacturers.<br />

As the voice of this broad-based<br />

industry, MHI enjoys an effective<br />

access to and credibility with Members<br />

of Congress, federal agencies including<br />

HUD, Fannie Mae, Freddie Mac and<br />

other critically important audiences.<br />

Through the Federated States Division<br />

and our members across the country,<br />

MHI reaches state legislative and<br />

executive branches when that serves<br />

the interests of modular builders,<br />

retailers, communities, lenders and<br />

suppliers. This broad representation<br />

does not diffuse our efforts, as MHARR<br />

believes, but gives our efforts critical<br />

context.<br />

While MHI’s Executive Committee<br />

was prepared to compromise<br />

on matters of governance and<br />

representation, they were not prepared<br />

to walk away from this broad industry<br />

agenda. MHARR leaders were equally<br />

unwilling to compromise their core<br />

mission and agenda. Hopefully, we<br />

may someday find common ground by<br />

bringing MHARR and MHI’s HUD-Code<br />

Manufacturers Division together as part<br />

of a larger umbrella MHI, but that time<br />

is not now.<br />

Merger efforts since last October,<br />

though time-consuming, have not<br />

distracted MHI’s elected leadership<br />

or staff from pursuing MHI’s industry<br />

reform initiatives. We will continue<br />

to cooperate with MHARR whenever<br />

cooperation would benefit industry<br />

objectives. Above all, we will continue<br />

to serve you, the MHI members, and<br />

the critical reforms necessary for the<br />

manufactured housing industry.<br />

Sincerely,<br />

Barry McCabe, MHI Executive<br />

Committee Chairman<br />

FACTORY NEWS:<br />

Laurel Creek Homes,<br />

Newest Company to Enter<br />

<strong>Manufactured</strong> <strong>Housing</strong><br />

Business:<br />

Located in Phoenix, Arizona, Laurel<br />

Creek Homes is situated on 20 acres<br />

and spans over 243,000 square feet.<br />

The facility is one of the largest in the<br />

United States. Laurel Creek Homes<br />

provides manufactured homes, modular<br />

homes, park models, and cabin<br />

units throughout the Western United<br />

States.<br />

Corporate Philosophy<br />

According to Bryon Blandin,<br />

President and COO., “We commit<br />

Laurel Creek Homes to be the<br />

benchmark for the industry by building<br />

homes to exceed expectations the first<br />

time while backing up our commitment<br />

with the most comprehensive and<br />

responsive ‘Customer Care Program’ in<br />

the industry.”<br />

Management Experience<br />

Laurel Creek Homes’ management<br />

team has over 200 years of combined<br />

housing experience. According to<br />

Blandin, “You can buy with confidence<br />

knowing that Wen Hargis and Steve<br />

Rapp’s 60 years of construction knowhow<br />

stands behind each home. You<br />

can live in comfort knowing Pasqual<br />

Armijo, Mark Gonzales, and Jack<br />

Willard’s 70 years of service experience<br />

is just a phone call away. Our team,<br />

together with our large production<br />

capabilities, enables us to meet all of<br />

our customer’s housing needs.”<br />

Service<br />

Laurel Creek’s Customer Care<br />

Program entitles customers to a<br />

comprehensive service package<br />

including: Factory Setup Inspection,<br />

Home Orientation and Service Walk<br />

Through; followed up with a 1-year<br />

Manufacturer’s Warranty.<br />

For more information about Laurel<br />

Creek Homes, you can call John<br />

Evinger at (602) 272-6700 or visit their<br />

website at www.laurelcreekhomes.<br />

com.<br />

Fleetwood Announces<br />

Executive Title Changes:<br />

Riverside, Calif., May 14/PRNewswire<br />

- Fleetwood Enterprises, Inc.<br />

(NYSE: FLE) announced today title<br />

changes for four of its executives.<br />

To emphasize the autonomy of the<br />

Company’s business segments and the<br />

authority of their respective leaders,<br />

Paul C. Eskritt has been named<br />

President - Fleetwood Recreational<br />

Vehicle Group, Charles E. Lott has<br />

been named President - Fleetwood<br />

<strong>Housing</strong> Group and Larry L. Mace has<br />

been named President - Fleetwood<br />

Supply Group. In addition, Michael<br />

B. Shearin has been named Senior<br />

Vice President - Human Resources<br />

& Administration. The changes were<br />

made effective as of the beginning of<br />

the Company’s fiscal year, which began<br />

on April 30, <strong>2007</strong>.<br />

“Since returning to Fleetwood in<br />

2005, one of my goals has been to<br />

place decision-making authority with<br />

those closest to the customer,” said<br />

Elden L. Smith, President and CEO<br />

of Fleetwood Enterprises, Inc. “These<br />

new titles more closely represent the<br />

scope, breadth and depth of these<br />

officers’ responsibilities, which I believe<br />

clarifies their authority to vendors,<br />

dealers, and customers.”<br />

IN MEMORIAM:<br />

It is with deep sorrow that we advise<br />

you of the death of Harrold Bowen.<br />

Harrold passed away on Sunday, <strong>July</strong><br />

1st after suffering a massive stoke<br />

on June 14th at his home in Blowing<br />

Rock, NC.<br />

Until his retirement several years<br />

ago, Harrold was founder and chief<br />

executive officer of Bowen Supply,<br />

Inc., a national supplier firm for the<br />

manufactured housing industry.<br />

During his many years of involvement<br />

in our industry, he was a leader on<br />

continued on page 19


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Education Corner<br />

ARE MANUFACTURED<br />

HOMES “GREEN”?<br />

By Billie Tribbett<br />

“Do you build ‘green’<br />

homes? Does manufactured housing<br />

offer ‘green’ homes?” These were<br />

two of the most frequently asked<br />

questions this year at the Pacific<br />

Coast Builders’ Conference in San<br />

Francisco. Amongst legislators, public<br />

officials, redevelopment agencies and<br />

homeowners this topic is increasingly<br />

more frequent. Why do we get asked<br />

this? Our answer is simple, yet<br />

complicated.<br />

Global warming, greenhouse gases,<br />

limited resources, our children’s<br />

future…sound familiar? Hardly a day<br />

goes by when we don’t hear one report<br />

or another in the news. But what does<br />

that mean to the building industry and<br />

manufactured housing? Before that<br />

can be answered it is important to<br />

understand what is meant by “building<br />

green”.<br />

According to Global Green USA,<br />

there are five major elements in<br />

building green or green building<br />

materials:<br />

• It Saves Energy – products that<br />

either reduce heating or cooling loads<br />

by design or orientation, such as<br />

high-quality windows and insulation;<br />

products that use less energy, such<br />

as Energy Star® rated appliances; or<br />

products that produce energy, such as<br />

solar electricity.<br />

• It Conserves Water – products<br />

that conserve water above and beyond<br />

legal requirements; or products that<br />

consume less water, such as native<br />

landscaping and drought-tolerant<br />

plantings.<br />

• It Contributes to a Safe Healthy<br />

Indoor Environment – products that<br />

don’t release significant pollutants into<br />

the building; such as non-toxic caulks<br />

and sealers, and CRI Green Label<br />

Carpet.<br />

• It Protects Natural Resources<br />

– products with recycled content;<br />

products made from agricultural<br />

waste material, such as wheat straw;<br />

Page 17<br />

products that reduce material use,<br />

such as concrete pigment that turns<br />

slabs into finished floors; products<br />

made from rapidly renewable<br />

materials, such as bamboo flooring,<br />

or textiles made from hemp and<br />

cotton; wood products made from<br />

sustainably managed forests and<br />

certified according to the principles of<br />

the Forest Stewardship Council; and<br />

salvaged products; such as used brick.<br />

• It Reduces Buildings’ Impact<br />

on the Community – products that<br />

mitigate the effects of stormwater<br />

runoff; products that provide easy<br />

access to alternative modes of<br />

transportation, such as bike racks;<br />

products that do not need chemical<br />

pesticides or treatment, such as plastic<br />

lumber, physical termite barriers and<br />

native vegetation; and, products that<br />

contain no PVC or HCFCs.<br />

Arguably, these elements are<br />

subjective in nature. Different<br />

municipalities have different standards<br />

for what is considered building green in<br />

their communities.<br />

continued on page 19<br />

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Page 18<br />

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Page 19<br />

Viewpoint continued...<br />

For those who might think they can<br />

slip through the system, consideration<br />

should be given to the following:<br />

• Many local jurisdictions will not<br />

issue a permit to install without proof<br />

that the sales or use tax has been paid.<br />

• The Consumer Use Tax section<br />

of the Board of Equalization receives<br />

reports from the DMV, FAA and HCD as<br />

well as the United States Coast Guard<br />

on identity transfers and registrations<br />

of vehicles, aircraft, manufactured<br />

homes and vessels. The Board<br />

requires the payment of use tax prior<br />

to completing transfer of titles or new<br />

registration.<br />

• Filing false income tax returns<br />

can result in heavy penalties.<br />

• Failure to pay by the consumer<br />

can result in severe penalties.<br />

For more information about the<br />

<strong>California</strong> Use Tax visit the Board<br />

of Equalization website at<br />

www.boe.ca.gov or the Franchise<br />

Tax Board at www.ftb.cs.gov.<br />

In an effort to bring clarity to this<br />

issue, we have posted a consumer<br />

warning on CMHI’s web page.<br />

In Memoriam continued...<br />

both the national and state levels.<br />

Among his many accomplishments,<br />

Harrold served several years on<br />

the Georgia <strong>Manufactured</strong> <strong>Housing</strong><br />

Association’s Board of Directors and<br />

as their Chairman. He also served on<br />

the <strong>Manufactured</strong> <strong>Housing</strong> <strong>Institute</strong>’s<br />

Board of Directors.<br />

Harrold is survived by his wife Linda<br />

and his two sons, Fred and Lee.<br />

A celebration of his life was held on<br />

Monday, <strong>July</strong> 9th at Calvary Episcopal<br />

Church in Americus, GA. Further<br />

information on Harrold’s life can be<br />

found at www.caringbridge.org/visit/<br />

harroldbowen.<br />

Education Corner continued...<br />

Although Global Green USA provides<br />

the suggestions, they also argue:<br />

• Because each project is different<br />

and each person’s reasons for building<br />

green are different, priorities need to be<br />

set when selecting products.<br />

• Building green is as much about<br />

design strategy as it is about building<br />

materials.<br />

• There is no perfect green material.<br />

Trade-offs are inevitable!<br />

• Determining whether a building<br />

material is green is not an exact<br />

science. But there is still a role for<br />

objective analysis and testing.<br />

The Global Green USA website<br />

lists several Independent Certification<br />

Programs which include Energy<br />

Star® and Leadership in Energy and<br />

Environmental Design (LEED). Of<br />

those you are probably most familiar<br />

with Energy Star®. However, LEED<br />

is clearly positioning their new<br />

certification, (LEED) Green Building<br />

Rating System, as the nationally<br />

accepted benchmark for the design,<br />

construction, and operation of<br />

high performance green buildings.<br />

Moreover, most public officials and<br />

consumers are familiar with Energy<br />

Star® and LEED.<br />

So where does manufactured<br />

housing fit in? I believe manufactured<br />

housing can meet a municipalities<br />

desire to include green housing within<br />

its General Plan. <strong>Manufactured</strong> homes<br />

are built in a controlled environment<br />

where materials, painting techniques<br />

and waste management are subject<br />

to state and federal regulators.<br />

Additionally, recycled products such as<br />

tires and axles are utilized, and homes<br />

can be built to meet Energy Star®<br />

standards.<br />

It is not just the construction<br />

of the home itself that makes it<br />

green. Site work should have<br />

minimal environmental impact. The<br />

placement of a manufactured home<br />

in a community or on private property<br />

can meet green standards. Dust<br />

control, minimal disruption to the site<br />

and neighborhood, removal of waste<br />

product, and landscaping and water<br />

usage optimized for the location<br />

are requirements that can be easily<br />

accomplished by our developers and<br />

contractors.<br />

In today’s building environment<br />

the hot topic is “green”. It’s not only<br />

at PCBC or with local government<br />

officials; it’s not only at CMHI or your<br />

factory…it’s the industry. Site–built<br />

projects are advertising green building<br />

designs, lenders offer credit and<br />

preferred financing for Energy Star®<br />

homes, local municipalities and<br />

building officials are requiring the<br />

utilization of “green components” for<br />

project approval (especially where<br />

redevelopment money is available) and<br />

most importantly, our homeowners<br />

benefit from it. So why do we want<br />

to think green in our industry? One<br />

word… Competition.<br />

The #1 Preferred Brand in Factory Crafted Homes<br />

7007 Jurupa Ave<br />

Riverside, Ca.92504<br />

951.688.5353 Operations<br />

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If you would like more information<br />

about building green or to obtain<br />

sample checklists for your projects,<br />

visit: U.S. Green Building Council,<br />

www.usgbc.org or Global Green USA,<br />

www.globalgreen.org.


ManuFacts is a bi-monthly newsletter<br />

published by the <strong>California</strong> <strong>Manufactured</strong><br />

<strong>Housing</strong> <strong>Institute</strong> (CMHI) exclusively<br />

for member companies.<br />

CMHI is a nonprofit trade association<br />

representing companies that build, sell<br />

and finance factory constructed homes<br />

and manage factory constructed home<br />

communities; and supply goods and<br />

services to the industry.<br />

The <strong>Institute</strong> was founded to advance<br />

the availability and ownership of<br />

quality, high- value homes, marketed<br />

by licensed retailers, by promoting the<br />

purchase of factory constructed homes<br />

and the development of desirable sites<br />

and communities in <strong>California</strong>. The<br />

<strong>Institute</strong>’s public, government and consumer<br />

relations programs are directed<br />

toward these goals.<br />

CMHI Chairman - Bob Angel<br />

Angel & Associates<br />

CMHI President - Jess Maxcy<br />

CMHI Foundation President - Jess<br />

Maxcy<br />

Director, Local Government Relations -<br />

Billie Tribbett<br />

Published at - 10630 Town Center<br />

Drive, Suite 120, Rancho<br />

Cucamonga, CA 91730<br />

Telephone (909) 987-2599<br />

Fax (909) 989-0434<br />

www.cmhi.org<br />

10630 Town Center Drive, Suite 120<br />

Rancho Cucamonga, CA 91730<br />

Page 20<br />

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