Try the all-new QuickBooks Online for FREE.  No credit card required.

Sept Oct California Manufactured Housing Institute

Document Sample
Sept Oct California Manufactured Housing Institute Powered By Docstoc

Sept/Oct 2006
A bi-monthly newsletter published exclusively for member companies

                    THE BEST KEPT SECRET GOES PUBLIC                                    by Jess Maxcy

  For too many years, California’s best    constructed home, fans were also         Consultants/Model Home Center,
housing value has been its best kept       treated to the NASCAR Sony HD 500.       manned the home for twenty-four
secret. No longer...The secret has gone                                             consecutive days.
public!                                    The California State Fair
                                           (Sacramento)                             Southern California Home &
  So far in 2006, the California                                                    Garden Show (Anaheim)
Manufactured Housing Institute has
                                             Once again the nearly 850,000
sponsored factory constructed housing                                                 Our “Street of Dreams”, featuring
                                           attendees at the California State Fair
displays in venues attracting nearly 2.6                                            eight homes, was once again a main
                                           had the opportunity to tour a manu-
million people.                                                                     draw for attendees interested in new
                                           factured home display sponsored by
                                           CMHI, Silvercrest and Dupar & Angel.     innovations in factory constructed
The California Speedway                                                             housing and high value homeownership
(Fontana)                                     Based on consumer response, it        opportunities.
                                           is possible that we could double our
  A fully landscaped and furnished         display presentation next year.            While attendance, at approximately
manufactured home was on display,                                                   55,000 was down from prior years, our
when 80,000 people toured the mid-                                                  home exhibitors reported many high
                                           The Los Angeles County Fair              quality leads and the sale of several of
way at the California Speedway. The        (Pomona)
home display, sponsored by CMHI and                                                 the display homes.
Structural Consultants/Model Home            Among the many displays attracting
Center, was a first for the Speedway       1.3 million people to the L.A. County    Local Fairs and Home Shows
and drew considerable attention and        Fair was CMHI’s annually sponsored
excellent consumer interest. In addition   manufactured home exhibit. CMHI’s          CMHI has budgeted for fifteen co-
to a tour of a well appointed factory      co-sponsor of the display, Structural    sponsorships for retailers who are
                                                                                                       continued on page 2
page 1 continued...
                                                                                                                            ViewPoint                                                                                                            Page 

pre-approved for local home shows for   Garden Show and five others.                Under the leadership of Silvercrest’s                                                 Where Are We?                          are reducing inventory at an even faster
fiscal 2007. To-date we have co-spon-                                             Craig Fleming, CMHI’s Consumer                                                                                                 rate with permits down 19.5% while
sored home displays at:                   Additionally, we are in negotiations    Awareness Committee is committed to                                                       Year-to-date June ‘06, MH production sales of new homes are down only
                                        for a display during the National Date    breaking out of “The Best Kept Secret”                                                  at 3,706 homes was down 7.8%. New 3.4%.
 • The Long Beach Home                  Festival in Indio.                        box. “Our goal for 2007 is to place                                                     shipments at 4,827 were down 12.9%
   Show - attendance 9,750                                                        high value factory constructed home                                                     and 23.2% of California shipments        Clearly proper inventory manage-
 • The Ventura County Fair                 Sponsorships are on a first-come       displays in as many high traffic venues                                                 were imported from neighboring states. ment is important to the health of
   - attendance 300,000                 first-serve basis. There are only six     as our resources will permit,” said Mr.                                                                                        the industry. However, a significant
                                        sponsorships left. Retailers wishing to   Fleming. Doing so will make it possible                                                   Registrations of new MH sales year-  reduction could make it harder for
and have committed to the Auburn        display homes should contact CMHI         for more families to consider our                                                       to-date August ‘06 at 6,231 homes      potential buyers to see our products.
Home Show, the Fresno Home &            for pre-approval promptly.                products as a home ownership option.                                                    were up 0.8%.                          Therefore, CMHI’s efforts to display
                                                                                                                                                                                                                 our homes at high traffic venues, takes
                                                                                                                                                                          Where Are the Site-Builders?           on added importance and should be
                                                                                                                                                                                                                 supported as a primary consumer
                                                                                                                                                                            They’re in the bus right behind us   awareness initiative.
                                                                                                                                                                          yelling...”Are we there yet?”
                                                                                                                                                                                                                  Where Are We Going?
                                                                                                                                                                            At 65,506 for the first half of the
                                                                                                                                                                          year, single-family permits are down      The Construction Industry Research
                                                                                                                                         Jess Maxcy                       19.5% and the sale of single-family new Board in its August 24th report fore-
                                                                                                                                                                          homes (63,574) are down 3.4%.           casted new single-family permits at
                                                                                                                            ARE WE THERE YET?                                                                     124,600 for 2006, down 19.8% from
                                                                                                                                                                          So What Do These Numbers                2005.
                                                                                                                              As the sales bus rolls downhill
                                                                                                                            someone in the back keeps yelling,            Tell Us?
                                                                                                                                                                                                                    If manufactured housing registrations
                                                                                                                            “Are we there yet?” Unfortunately, not
                                                                                                                                                                       With manufactured housing ship-            continue to decline at the July/August
                                                                                                                            even the bus driver knows.
                                                                                                                                                                     ments decreasing (-12.9%) faster than        rate (-17%), we will end the year at
                                                                                                                                                                     production (-7.8%), it is apparent that      8,914 homes down 5.3%.
                                                                                                                              Perhaps if we check the map, we’ll
                                                                                                                            have a better understanding of where     our retailers are reducing inventory.
                                                                                                                            we are and a feel for where we’re going. Site-builders, determined to avoid
                                                                                                                                                                     mistakes made during the last decline,                         continued on page 13

                                                                                           Around California                                                                                                         Page 

                                                                                           CMHI WELCOMES NEW                        Supplier Division:                           Title  Amendment Section
                                                                                           MEMBERS                                                                               8…
                                                                                                                                      Foundation Works, Inc.
                                                                                                                                      Thom Cross - Greensboro, NC                   During the third week of August, we
                                                                                           Retailer Division:
                                                                                                                                                                                 were apprised of a situation resulting
                                                                                            American Homes                          Manufacturer:                                from a regulatory change to Section

 Uncompromising Quality,
                                                                                            Tim Wilkens - Napa                                                                   1428 - Title 25, affecting the placement
                                                                                                                                      Marmol Radziner Prefab                     of steps on a lot in a land-lease
                                                                                            Enterprise Manufactured Homes             Nan Dowling - Los Angeles                  community, which effectively reduced
                                                                                            Ed Kinsley - Temecula                                                                the size of homes that could be placed

    Value and Design
                                                                                                                                    Developer/Community Owner:                   on many lots. Apparently this change
                                                                                            Evans & O’Brien, Branch                                                              slipped by all interested parties until
                                                                                            Michael Evans - Fair Oaks                 Greenway Construction                      it was pointed out by a new HCD
                                                                                                                                      Bill Greenway – Phelan                     inspector.
                                                                                            Evans & O’Brien, Branch
                            C O N T A C T                                                   Dave Wilcox - Sonora                      Martin Farrell Homes, Inc.                   We were able to resolve this
                                                                                                                                      Mason Ferrell - Santa Barbara              issue to the industry’s satisfaction
 Gary Fortune, Sales Manager - Corona                                                       Evans & O’Brien, Branch                                                              with the help of John Almquist of
                                                                                                                                                                                 Coastline Construction and thanks to
                                                                                            Vickie Mechem - Soquel                  LEGISLATIVE UPDATES:
Otis Orsburn, Sales Manager - Woodland                                                      L&M Sharp Const. & Dev., Inc.             As we progress through the year,
                                                                                                                                                                                 a suggestion by Dana Contrerras of
                                                                                                                                                                                 Salstar Enterprises.
                                                                                            Lacey Sharp - Wildomar                  CMHI continues to monitor the
                                                                                                                                    proposed bills and legislation of local,        The regulation, which would have
                                                                                            MasterHomes, Inc.                       statewide and federal government             virtually prohibited the placement of
                                                                                            John DeDoncker - Azusa                  entities. Since this is a shortened          steps to the lot line, will be amended
                                                                                                                                    calendar year for legislators, there         during the rulemaking process currently
                                                                                                                                    hasn’t been much progress on bills           underway for other changes to Title 25.
                                                                                                                                    that we are monitoring, however, two
                                                                                                                                    issues are worth noting:                        The amended regulation will become
                                                                                                                                                                                 effective January 1, 2007. In the
                                                                                                    EXPRESS                                                                      interim, installers encountering this
                                                                                                                                                                                 situation will need to pull an alternate
                                                                                                    ESCROW                                                                       installation permit.
                                                                                                                                                                                                      continued on page 6
                                                                                              EXPERTS IN PERFECTING TITLE
                                                                                                FOR PARK-OWNED HOMES                     Calendar of Events
                                                                                                California’s leading authority on
                                                                                                 technical issues concerning           2006
                                                                                                     manufactured housing
                                                                                                        title and escrow
                                                                                                                                       October 7             No. California Chapter Meeting
                                                                                                                                                              Hungry Hunter, Sacramento, CA
                                                                                                                                                              Contact Connie or Kim – (909) 987-2599

                                                                                               Mobile/manufactured home and            December 7             Holiday Dinner Cruise
                                                                                                mobilehome park sales and                                     Hornblower Cruises, Newport Beach, CA
                                                                                                     refinance escrows                                        Contact Kim Lear – (909) 987-2599

                                                                                                               _                       December 7             CMHI Executive Committee/Board of Director’s Meeting
                                                                                                                                                              Marriott Hotel and Spa, Newport Beach, CA
                                                                                                                                                              Contact Kim Lear – (909) 987-2599
                                                                                                       Statewide service
                                                                                                                                       March -6            2007 CMHI Annual Convention
                                                                                               7812 EDINGER AVE. _ SUITE 300                                  Pechanga Resort and Casino, Temecula, CA
           • e-mail:                        HUNTINGTON BEACH _ CA 92647                                     Contact Connie or Kim - (909) 987-2599
     299 North Smith Avenue • P.O. Box 759             109 Pioneer Avenue                    (800) 669-6925 _ FAX (714) 848-9174
            Corona, CA 92878-0759                      Woodland, CA 95776
          951/734-6610 • 800/382-0709               530/662-9156 • 800/264-0010
                                                                                                                         Page 6                                                                                                                           Page 7

page 5 continued...
  Thanks to the prompt and                Federal Installation                         “F.O.B.” BILL FINALLY                         18551(a), that sale escrow is governed         called a Declaration of Delivery Sale    date when all of the following have
cooperative response from HCD and         Standards…                                   SIGNED BY GOVERNOR:                           by section 18035.2 of the Health and           must be signed by the purchaser          been completed: a) the Declaration
input from CMHI members...situation                                                      by J.C. Strutzel, President                 Safety Code. But come January 1st              {§18035.26(b)(1)}; see exhibit A         of Delivery Sale has been executed,
resolved.                                   At this point, California’s installation     Express Escrow Company                      of 2007, if a similar transaction was to                                                b) all funds in the escrow account,
                                          standards have not been approved by                                                        occur and the home is also sold subject        3) The purchaser’s home warranty         other than escrow fees, amounts
  Several other Chapter Sections in       HUD. CMHI will continue to monitor             It took a few years, but our long           to an F.O.B. delivery, that sale will be       period, if applicable, will expire one   for accessories not yet delivered,
the proposed rule changes were also       the situation and will keep you up-to-       awaited F.O.B. legislation finally            governed by the newly created section          year after either the issuance of a      and any other amounts mutually
affected. Pursuant to those changes,      date as events occur.                        worked its way through the system and         18035.26 of the Health and Safety              certificate of occupancy or 120 days     agreed to by the dealer and buyer
CMHI submitted comments to HCD.                                                        becomes effective on January 1, 2007.         Code.                                          from the close of escrow, whichever      are disbursed, and c) the buyer takes
Via Special Bulletin 2006-22, we sought                                                Assembly Bill 1203 by Assemblyman                                                            occurs first {§18035.26(c)};             delivery of the home (taking delivery
comments from CMHI members. Our                                                        Mullin was sponsored by CMHI with               Heretofore, F.O.B. sales have been a                                                  occurs upon the transfer of the home
comments, along with WMA’s, were                                                       the objective of providing a clear-cut        problem area for our industry. AB1203          4) Before an escrow agent can            to the buyer at a location mutually
delivered by the September 13, 2006                                                    method of selling a manufactured              should go a long way toward reducing           prepare an escrow instruction to         agreed upon and as specified in the
deadline.                                                                              home to a purchaser who intends to            the potential for consumer confusion           create the F.O.B. condition, the         purchase agreement and the escrow
                                                                                       take responsibility for the installation.     and improper installations.                    escrow agent must be in possession       instructions) {§18035.26(b)};
                                                                                       A copy of the legislation can be found                                                       of an original copy of the Declaration
                                                                                       on the Internet by going to the website       What should a dealer know?                     of Delivery Sale {§18035.26(d)};         7) In most instances, neither the
    Capital Solutions
                                                                                                                                                                                   escrow number nor the home serial
                                                                                                                                       While it is probably a good idea to          5) An escrow instruction created         number will be known when the
                                                                                          The law in question will probably          read the new code section, here is a list      before the receipt of the Declaration    purchaser executes the Declaration

    Come home to GE                                                                    impact only a very small percentage of        of salient points:                             is null and void and unenforceable       of Delivery Sale. HCD has stated that
                                                                                       manufactured home dealer sales. The                                                          {§18035.26(d)};                          it does not matter when these two
                                                                                       sales impacted are those that involve a         1) This law only pertains to the sale                                                 pieces of information are inserted
                                                                                       manufactured home, sold by a dealer,            of a manufactured home sold by a             6) The official “date of sale”           onto the Declaration, however the
    At Commercial Distribution Finance, we                                             where the home is to be installed upon          dealer when the purchaser intends to         when reporting the sale to HCD           form must be complete at the close
                                                                                       a foundation system and converted to            install the subject home as a fixture to     is essentially the date the escrow       of escrow;
    provide innovative nancing solutions,                                              a fixture pursuant to section 18551(a)          the underlying real property pursuant        closed. To make sure all important
                                                                                       of the Health and Safety Code and               to {§18551(a)};                              steps are followed, the new law
    online account management and dedi-                                                it is agreed that the purchaser is              2) A special disclosure document             states this more precisely as the
                                                                                                                                                                                                                                             continued on page 11
                                                                                       responsible for the home’s installation;
    cated account representatives so you                                               commonly referred to as a “F.O.B.”
                                                                                       sale. (NOTE: If the home is not
    can move more product, more e ciently                                              intended to be attached to a foundation
                                                                                       system as a fixture, please note that an
    and at a lower cost.                                                               entirely different law governs the sale
                                                                                                                                                                                   Insurance Professionals
                                                                                       {see §5062(b) of Title 25 CA Code of
                                                                                                                                                                                          Specializing in:
    To learn more, call us today                                                         The initials F.O.B. stand for “freight                                                    Worker’s Compensation
    (800) 669-7224.                                                                    on board.” Freight on board is a
                                                                                                                                                                                      General Liability
                                                                                       familiar term in the world of commercial
                                                                                       shipping. The term refers to the                                                           Low Cost Health Insurance
                                                                                       place where a purchaser becomes
                                                                                       responsible for the shipment of goods.
                                                                                       In this specific instance, the “goods”                         Jordan Insurance has developed a new approach to working with
                                                                                       in question refers to a manufactured                          Manufactured Housing Retailers and their Contractors designed to
                                                                                       home purchased from a dealer wherein                                        Reduce the Cost of Your Insurance!
                                                                                       the purchaser intends to actually and                        When was the last time you had a professional review your insurance?
                                                                                       physically install or accept responsibility
                                                                                       for engaging the services of a licensed
                                                                                       contractor to perform the installation of                                                  Linda F. Burns
                                                                                       the home as a fixture to the underlying                                                                 DOI#0711841
                                                                                       real property upon a foundation system
                                                                                       pursuant to section 18551(a).
                                                                                                                                                                          1325 Auto Plaza Dr. Suite 140
                                                                                                                                                                         San Bernardino, CA 92412-5276
                                                                                         Presently when a dealer sells a                                         909-888-2231 or 888-530-5700 Fax: 909-384-8384
                                                                                       manufactured home that is to be                                             
                                                                                       installed as a fixture pursuant to
Across the Nation                                                                                                     Page 8                                                                                                                         Page 

N.A.D.A. APPRAISAL GUIDES                   • Quick Reference to Identifying         trade names, making it the most              --the industry’s leading web-based        Communities who wish to attract new       LAND/HOME LAUNCHES PILOT
LAUNCHES NEWLY ENHANCED                       Codes                                  comprehensive manufactured housing           multiple listing service (MLS)-- to       residents, promote themselves in the      FINANCIAL PROGRAM:
MANUFACTURED HOUSING                                                                 appraisal guide information available to     provide free consumer leads to all        most favorable light, and receive free
                                            “We’re committed to providing            industry professionals.                      manufactured home communities             resident leads may register, update          Land/Home Financial Services Inc.
APPRAISAL GUIDE CD-ROM:                   manufactured housing industry                                                           that register at the MHI Community        their information, and add more           has implemented a new initiative
                                          professionals with the most                  Weller says Version 2.0 is now a           Attributes System (CAS) Web site.         attractive photos at the CAS Web site:    that enables manufactured housing
  Editors of the N.A.D.A. Manufactured
                                          comprehensive and up-to-date               standalone product that does not                                                                        financing, for homes installed as
Housing Appraisal Guide, on
                                          products and services available today,”    require the accompaniment of the       receives over                                                      real estate, to be priced in parity
September 6, announced the launch
                                          said Sherrie Weller, manufactured          actual N.A.D.A. Manufactured Housing         800 emails daily from consumers             With over 11,000 manufactured           to site-built homes in equivalent
of the newly enhanced N.A.D.A.
                                          housing editor, N.A.D.A. Appraisal         Appraisal Guidebook.                         shopping for homes and 400 of those       homes for resale and over 8,000           neighborhoods. Land/Home
Manufactured Housing Appraisal Guide
                                          Guides. “It’s all about making our                                                      shoppers want more information on the     visitors per day, is the    Financial’s MH Residential Mortgage
CD-ROM, Version 2.0. According to
                                          subscribers’ jobs quicker, better and        Industry professionals interested          communities. The inquiries received       industry’s largest and fastest growing    Program enables retailers, builders
company experts, Version 2.0 features
                                          easier. With the enhancements we’ve        in learning about the N.A.D.A.               contain valuable contact information      web-based listing site dedicated          and developers to offer customers
some significant improvements to
                                          made to Version 2.0, we’ve done just       Manufactured Housing Appraisal               for potential community residents. The    exclusively to pre-owned manufactured     competitive pricing on manufactured
help industry professionals value
                                          that.”                                     CD-ROM, Version 2.0, can contact             MHI/ agreement now           homes, and the only MLS site              homes with comparable site-built
manufactured homes quicker and
                                                                                     Weller via phone at (714) 556-8511 ext.      allows communities that register at the   endorsed by MHI.            specifications.
easier. Some of these enhancements
                                            According to Weller, N.A.D.A.’s          237 or via email at mfghmsupport@            MHI CAS Web site to instantly receive     serves the industry by providing an
                                          Manufactured Housing Appraisal    for more information.         these consumer leads at no charge.        effective and efficient platform for        Brad Waite, President and CEO of
                                          products are a Fannie Mae and Freddie                                                                                             buyers and sellers to locate each other   Land/Home Financial, worked with
 • Single Screen Application
                                          Mac approved cost approach utilized                                                        The MHI CAS database currently         and by allowing all state association     a team of retailers, manufacturers,
 • Printable Option Checklist
                                          by more lenders, insurance companies,      MHI COMMUNITY ATTRIBUTES                     contains information and photos           members to list their homes at no         investors and industry experts to
 • Repair/Replacement Estimator
                                          retailers and federal & state agencies     SYSTEM PROVIDES LEADS:                       for over 18,000 communities that          charge. For more information about        formulate a program that meets
 • Easy Saved File Changes
                                          than any other mobile, modular and                                                      have been contributed primarily by, contact Dawn               investor requirements for giving the
 • On-Screen Running Totals
                                          manufactured housing appraisal guide         As part of the Manufactured                Datacomp Appraisal Services and           Binstead at or          manufactured home buyer a level
 • Archiving Updates
                                          on the market today. What’s more, the      Housing Institute’s (MHI) ongoing            industry lending companies. MHVill-       (877) 853-0298. For more information      playing field for financing their home.
 • Summary Report
                                          company’s CD-ROM offers 40 model           effort to revitalize the resale market for subscribes to the MHI CAS         about the MHI CAS, contact Michael        The home must meet certain specific
 • Quick Reference to Identifying
                                          years of information about more than       manufactured homes, it has negotiated        in order to provide its visitors with     O’Brien at or         construction, architectural and
   the Subject Home
                                          750 manufacturers and over 6,000           an agreement with              limited community information and         (703) 558-0652.                           installation requirements. Some of the
 • Summary Page Report
                                                                                                                                  photos as they search for homes.                                                    specifications include:
          CALIFORNIA                                            LOW COST MANUFACTURED HOME INSURANCE
          SOUTHWESTERN                                                 WITH THE DEALER IN MIND!                                                                                                                         • Multi-section single-story or
          INSURANCE AGENCY                                                                                                                                                                                                two-story single and multi-section
                                                                These are some of the reasons to do business with
                                                                California Southwestern Insurance:
                                                                                                                                                                                                                          new homes
 Low Cost Manufactured Home Insurance for your                                                                                                                                                                          • Architectural compatibility with
 buyers, and Fast Service for your escrow closings.                                                                                                                                                                       homes in the neighborhood with
                                                                       OVER 25 YEARS WORKING WITH MOBILEHOME                                                                                                             respect to elevations, garages, etc.
                                                                        DEALERS.                                                                                                                                        • Quality of construction to meet
                                                                       IMMEDIATE QUOTES BY PHONE OR FAX.                                                                                                                 or exceed the interior amenities of
                                                                                                                                                                                                                          prevalent types of site-built homes
                                                                       BINDERS AND INVOICES FAXED TO YOU WITHIN
                                                                                                                                                                                                                          in the immediate area
                                                                        THE HOUR.
                                                                                                                                                                                                                        • 100% drywall interior
                                                                       FLOOD AND EARTHQUAKE COVERAGE
                                                                                                                                                                                                                        • Minimum side-wall height
                                                                                                                                                                                                                        • Specific foundation requirements
                                                                       EXCELLENT REPLACEMENT COST COVERAGE
                                                                                                                                                                                                                          – recessed with masonry perimeter
                                                                        FOR YOUR BUYERS.
                                                                                                                                                                                                                          or on a basement
                                                                        CALL US FOR MORE INFORMATION
                                                                                                                                                                                                                         Tony Wicke, Vice President of Land/
                                                                        Maggie Malone
                                                                        Larry Staggs                                                                                                                                  Home Financial MH Division says,
                                                                        California Southwestern Insurance Agency                                                                                                      “We now have a mortgage program
                                                                        21 Orchard                                                                                                                                    that treats eligible buyers and quality
                                                                        Lake Forest, CA 92630                                                                                                                         homes the same, whether it is a site-
                                                                        Toll Free 800-352-0393
                                                                                                                                                                                                                      built home or a manufactured home. It
                                                                        Direct line and 24 hour Voice Mail
                                                                        Maggie Malone 949-707-4222                                                                                                                    is the right thing to do.”
                                                                        Larry Staggs 949-707-4220
                                                                        Fax 949-707-1571                                                                                                                                For more information regarding
                                                                        Email                                                          David Stanbro
                                                                                                                                                                                        Land/Home’s MH Residential Mortgage
                            Visit our website at                                                                                                                                                     Program, call 888-796-5263 or visit
                                         License Number 0443354                                                                                                                                                                        continued on page 11
                                                                         Page 0                                                                                                                                                     Page 

                                                                                   page 7 continued...
                                                                                     8) At close of escrow, the escrow                          shall designate its title record as                    §18551(a) and the title record
                                                                                     agent shall submit a copy of the                           “pending installation.” At such time                   deemed “cancelled.” The content of
                                                                                     Declaration to both HCD, along                             as the certificate of occupancy is                     the Declaration of Delivery Sale is
                                                                                     with the report of sale, and to the                        issued, a HCD 433A is recorded and                     specified in code. Since this type of
                                                                                     manufacturer {§18035.26(b)(1)}; and                        applicable fees are received from                      sale may be infrequent, it is possible
                                                                                                                                                the enforcement agency, HCD’s                          that typical form suppliers may not
                                                                                     9) Upon the sale being properly                            registration and titling record will be                elect to produce the form. In the
                                                                                     reported, the Department of Housing                        amended to designate the foundation                    event a dealer prepares his/her own,
                                                                                     and Community Development (HCD)                            type as permanent pursuant to                          here is the required content so you
                                                                                                                                                                                                       know what to look for.
                                                                                   Exhibit A                  Declaration of Delivery Sale
                                                                                         The undersigned purchaser hereby declares that he/she is agreeing to a delivery sale wherein he/she
                                                                                      intends to actually and physically install the subject home described below, or accept responsibility for       page 9 continued...
                                                                                      engaging the services of a licensed contractor to perform the installation. Additionally, the purchaser
                                                                                                                                                                                                      FACTORY NEWS:
                                                                                      hereby declares that he/she understands that most manufacturers’ warranties do not cover defects caused
                                                                                      by improper site preparation or installation. The purchaser takes full responsibility for the proper storage,
                                                                                      including blocking of the home and protection from the elements, prior to the completion of the installation.
                                                                                                                                                                                                         Berkshire Hathaway’s (BRKB)
      LOAN SPECIALISTS                                                                   It is strongly recommended that, before entering into this agreement, the purchaser has ensured
                                                                                      the home described below will be installed pursuant to subdivision (a) of Section 18551 of the
                                                                                                                                                                                                      Clayton is buying Alabama
                                                                                                                                                                                                      manufacturer Southern Energy Homes,
                                                                                      Health and Safety Code (see reverse side) and the manufacturer’s installation instructions. Addi-
                                                                                      tionally, the purchaser should make certain that he/she can meet all permit and fee requirements,               Inc. Clayton Homes’ CEO, Kevin
                                                                                      including school development fees, most of which may be financed, for the installation of the                   Clayton, praised Southern Energy’s
                  Land and Home Loans                                                 subject home.
                                                                                                                                                                                                      “unique product offerings and design
                                                                                                                                                                                                      characteristics.” This acquisition,
                                                                                                                                Warranty Expiration
                                                                                                                                                                                                      which is subject to Southern Energy
      Conventional and Constructions Loans                                              Notwithstanding Section 1797 of the Civil Code, in order to provide reasonable time for the installation
                                                                                      of your home, the manufacturer’s warranty, when applicable, will expire one year after either the issuance
                                                                                                                                                                                                      shareholder and regulator approval,
                                                                                      of a certificate of occupancy or 120 days from the close of escrow, whichever occurs first.                     is expected to close in about two
          Conforming / Nonconforming                                                  Name of Escrow Company: _____________________ Escrow Number: _________________
                                                                                                                                                                                                      months. This acquisition will move
                                                                                                                                                                                                      Clayton to command about 25% of
    Permanent and Nonpermanent Foundations                                            Manufacturer’s Name: ________________________                 Serial Number: ___________________                the HUD-Code shipped homes in the
                Singlewides O.K.                                                      Dealer’s Name: _______________________
                                                                                      Address where purchaser will accept delivery: ______________________________________                              Champion Enterprises, Inc. (CHB)
                                                                                      Address where purchaser intends to install home: ___________________________________
                                                                                                                                                                                                      announced it is divesting its last retail
                    Mobile Home Loans                                                 (NOTE: An original copy of this document must be deposited with the above named escrow agent as a
                                                                                      condition precedent to the preparation of escrow instructions. Upon close of escrow, the escrow agency
                                                                                                                                                                                                      dealer asset, Advantage Homes,
                                                                                                                                                                                                      which operates 21 leased sales offices
                                                                                      shall submit a copy of the original document to the department along with documents required to report
                                                                                      the sale; the original document shall be retained by the escrow agent. Additionally, a copy of the original     in California. Advantage Homes
                                                                                      document shall be sent to the manufacturer.)                                                                    specializes in replacing older homes
                        In Park Loans                                                 WARNING: This is an important document. Do not sign unless you have read and under-
                                                                                                                                                                                                      within local MH communities in
                                                                                      stood the above declaration.                                                                                    California with new MH homes. Encore
                                                                                                                                                                                                      Partners, which owns and operates
                  Purchase or Refinance                                               Purchaser’s Printed Name: ______________ Purchaser’s Signature: _____________________                           dealer locations in the Midwest
                                                                                      Date: __________
                                                                                                                                                                                                      purchased Advantage Homes from
                                                                                                                                                                                                      CHB for $52M, $44M to be paid in
  We Pre-qualify! We Take Credit Applications!                                        Purchaser’s Printed Name: ______________ Purchaser’s Signature: _____________________
                                                                                      Date: __________                                                                                                cash and the remaining $8M in a five-
            Mobile Home Loans                                                                                                                                                                         year fixed rate interest-bearing note.

                                                                                                                                                                                                        Fleetwood Enterprises (FLE)
NOW SERVING CALIFORNIA & WASHINGTON                                                                                                                                                                   announced that its losses narrowed
                                                                                                                                                                                                      in the latest quarter thanks in part to
                                                                                                                                                                                                      cost cutting measures. FLE reported a
    Oxnard                San Luis Obispo               Bellingham, WA                                                                                                                                $400,000 net loss, or $.01 per share vs.
                                                                                                                                                                                                      last quarter’s $29.6M or $.53 per share.
 805-658-0120              805-781-0350                  360-738-0808                                                                                                                                 “The decline in sales volume masks the
                                                                                                7007 Jurupa Ave                                      P.O. Box 1308                                    progress we have made in improving
                                                                                                                                                                                                      our products and reducing costs,” said
                      Home Office: 800-655-9044                                                Riverside, Ca.92504                                Woodland, CA 95695
                                                                                                                                                                                                      Eldon Smith, President and CEO.
                                                                                            (951) 688-5353 Operations                           (530) 662-3223 Operations
                Phone 949-661-9044   Fax 949-661-0289
                                                                                               (888) 380-4489 Sales                               (800) 420-9645 Sales
                   32861 Camino Capistrano, Suite D
                    San Juan Capistrano, CA 92675
                                                                        Page                                                                                                                        Page 

                                                                                  page 3 continued...
                                                                                    The year-to-date decline in              • Support CMHI’s efforts to display         While we may not be at the bottom,

                                                                                  manufactured housing shipments is            our homes in high traffic venues        we do have opportunities. Remember,
                                                                                  accelerating (down 15.7% EOM July).        • Strengthen our retail organization      2006 will be our third best year since
                                                                                  A decline of 18% for the year will put       - Through August, 375 retailers         1990.
                                                                                  us at 8,842 units, which will still be       registered at least one new sale.
                                                                                  our third highest level in nearly two        The top 100 retailers accounted for     When Will We Get There?
COMPREHENSIVE COMMERCIAL INSURANCE PACKAGES FOR                                   decades.                                     80% of our new sales...We need
                                                                                                                               to help the other 275 grow their          I don’t know...You’re driving the bus!
 RETAILERS NOW AVAILABLE THROUGH OUR BROKERAGE.                                     As builders and retailers compete
                                                                                  to reduce inventory, we can expect
                                                                                                                             • Expand our market by focusing
                                                                                  a reduction in average sales prices.         on real property sales, infill
                                                                                  However, as reduced inventory bumps          and redevelopment, plus renewed
    We Are One Of The Largest U.S. Insurance Brokerages                           up against California’s ever growing         emphasis on land-lease
     Specializing in The Manufactured Housing Industry                            need for new dwelling units, average
                                                                                  selling prices could once again spiral.
                                                                                                                               community up-grades with high
                                                                                                                               value replacement homes
                                                                                                                             • Increase our resale market share
                                                                                  What Should We Do?                           by adding value for both the seller
                                                                                                                               and buyer. Sellers need solid
                                                                                    As we take the necessary steps to          value reasons for listing with a
                                                                                  properly manage our home inventory,          CMHI retailer as opposed to a real
                                                                                  we should:                                   estate broker

                                                                                                                            MANUFACTURED HOUSING
                                                                                                                            MULTIPLE LISTING SERVICE
        MULTIPLE COMPANIES OFFERING:                                                                                                 CONNECTION • PROTECTION
                                                                                                                                for Manufactured Housing since 1974

            Retailer Property/Liability Packages
                                                                                                  WHEN THINKING OF BUYING OR SELLING
        �   Competitive “Open Lot” Inventory Rates for Retailers
        �   30 Years of Experience                                                                                              START HERE

        �   Wind, Flood, and Earthquake Insurance Available
        �   Mobile Home Dealer Errors & Omissions Insurance

                    CONTACT JUSTIN ZALE                                                                  Professional Expertise                         30 Years of Experience
                                                                                                         Manufactured Home Experts                      Put Our Power to Work for You!
                                                                                                         Nationwide Exposure                            We Can Help
        888.996.7600 ext. 6762        �

                        a division of Alliance Insurance Group

                7600 N. 16th Street, Suite 201, Phoenix, AZ 85020
   602.996.7600 VOICE � 888.996.7600 TOLL FREE � 602.494.1175 FAX
                                                                                 Page                                    Page 

 Protection From Loan Closing to Occupancy –

          With Just One Policy!
When you add our new Builders Risk Endorsement to one of our manufactured
homeowners policies, we provide certain protections as soon as the loan is
closed…protection that continues all the way through construction to occupancy.

                                     Meets Lender Requirements for
                                        Homeowners Insurance

                                     ✔ Coverage Includes:
                                       • Personal liability
                                       • Coverage for theft of
                                          building materials on site
                                       • Coverage for damage to
                                          any site improvements
                                     ✔ Once the home is occupied,
                                       the Builders Risk endorsement
                                       expires – while homeowners
                                       protection continues!

                                              For more information,
                                                call Barry Cole at
                                    Manufactured Housing Insurance Services at

                                 Why have more than one policy
                                   when you don't need to?


                             AMERICAN MODERN INSURANCE GROUP                               Email to:
                                                                                                                     Page 6
ManuFacts is a bi-monthly newsletter                                                               PRESORTED
published by the California Manufac-                                                               STANDARD
tured Housing Institute (CMHI) exclu-                                                             U.S. POSTAGE
sively for member companies.                                                                           PAID
   CMHI is a nonprofit trade association                                                        PERMIT NO. 0
representing companies that build, sell                                                      RANCHO CUCAMONGA, CA
and finance factory constructed homes      10630 Town Center Drive, Suite 120
and manage factory constructed home        Rancho Cucamonga, CA 91730
communities; and supply goods and
services to the industry.
   The Institute was founded to ad-
vance the availability and ownership of
quality, high- value homes, marketed
by licensed retailers, by promoting the
purchase of factory constructed homes
and the development of desirable sites
and communities in California. The
Institute’s public, government and con-
sumer relations programs are directed
toward these goals.
CMHI Chairman - Russ Williamson
Skyline Homes
CMHI President - Jess Maxcy
CMHI Foundation President - Jess
Director, Local Government Relations -
Billie Tribbett

Published at - 10630 Town Center
Drive, Suite 120, Rancho
Cucamonga, CA 91730
Telephone (909) 987-2599
Fax       (909) 987-0434

                                                   One Less Worry,
 Internet Development
                                                   With Barry At
     (949) 661-9333                                Your Side!
    • Website Design
                                                                        Buying a manufactured home is stressful
    • Website Redesign                                                  enough without the added hassle of finding
                                                                        proper insurance. At MHIS, we partner with
    • Web Hosting / Email                                               American Modern Insurance Company to make
    • Custom Business apps                                              insurance easy for you:
                                                                        ✔   No Broker Fees
    • Brochures / Marketing                        Barry Cole has
                                                   over 30 years of     ✔   Vacant/Spec. Homes
                                                   experience in
                                                   California's         ✔   Rental or Seasonal Homes
                                                                        ✔   Specialists in Course of Construction/
                    r                              home marketplace.
               G fo
        HO STIN h a                                License # 0D80824        Builders Risk insurance
    FREE nths wit ned
     6 mo r Redesi                                                Don't Sweat the Insurance.
      New website                                                       Call Today!
    (949) 661-9333                                                  

Shared By: