HB2473 She'll be comin' down the mountain' when she comes...

On Wednesday, February 10, 2010, the House Commerce Committee unanimously voted in favor of a "Do Pass" nomination by the HB2473 bill sponsor, Michele Reagan. It was noted by the sponsor that the regulatory control model associated with manufactured housing transactions was probably way past due and that despite those opposing the legislation, that HB2473 will be passing through the regular channels to become law.

My testimony in opposition to this bill seemed to help emphasize the need for an industry consensus of future amendments to the drafted legislation as it makes its way through the committee channels. It was agreed that an industry wide task force be formed to prepare a way for consequences of this bills passing. Debra Blake, the Deputy Director for the Department of Building Life and Fire Safety is spearheading this committee and has appointed individuals to form this task force group representative of the various factions of the industry it will affect. These include representatives of AAMHO, MHCA, AHA and yours truly; Moms and Pops of America.

It seems that MHCA disagrees that their interest was not fully represented in the "consensus" between all parties before the presentation to the House Commerce Committee, and the final language of the bill remains to be seen. Still some very important questions remain. If the "Department" should be dismantled, who assumes the duties of the Director and Deputy Director who serve as the only balance of power of the Board of Manufactured Housing? I understand that the "five year" rules audit DEFLS's continued existence relies upon the approval of the governor and addressed in a "Sunset Review" forum coming in 2011?

Becoming educated about the legislative process and active industry involvement are now necessary for small businesses as we face this tipping point in Arizona's economy. We need not sit by and hope that the big guys are going to get it handled for us. We must take responsibility for our own segment of the housing industry and be bold in our display of concern and contribution. New ideas and perspectives must be considered while tried and true business practices respected.

During these winds of change, perhaps smaller, more focused organizations are now the solution to find practical solutions for the inevitable unknowns such shifts of power will bring upon us. It has been suggested that the resale dealers simply renew their memberships with AHA and hope for council to represent their interests with equal levity to those of AHA's other longstanding members base? Whose interests will be represented when the time arises that a factions of resale brokers sentiments compete with those of it manufacturers or retailers? Who will take the back seat or be forced to concede their position? What protocol or bylaw within this organization addresses this possible conflict of interest?

Besides legislative agenda items, resale brokers who unify now can begin to form a consensus to form a uniform transactional model specific to the manufactured housing industry. Agenda items could include the creating of a streamline transactional process to coordinate elements of real estate transactions such as seller disclosure requirements (which items in most of these aforementioned examples are not currently statute)disclosure of community rules and leases (similar to CC& R's in real estate), agency, and comparable home evaluations "Comps".

Considering the current demand for affordable housing, the manufactured housing industry in Arizona should now flourish. Manufactured homes are now a better option than ever for those needing to downsize from their upside down positions in "stick built" residential real estate and maintain an attractive position for second home "vacation housing" ownership for our seasonal visitors.

By careful consideration of regulatory models, implementing industry cooperation forums and a fair checks and balances for power structures, Arizona can be a leader and promoter of the affordable housing industry by assuring its consumer base the discretion of responsible law making and streamline transactional processes.