CFPB (Consumer Financial Protection Bureau) Ruled Unconstitutional, and much more…

The Consumer Financial Protection Bureau’s (CFPB) leadership structure is ruled unconstitutional, South Carolina Disaster Recovery Office receives $96 million grant from HUD, Skyline Manufactured Homes see’s their bottom line growing, the Beauregard Parish City Council looks to restrict where prefabricated housing can be placed, while Ocean Breeze, Florida looks to elect their newest mayor.

It’s Monday, November 21, 2016, which can only mean one thing here at … it’s time to make sense of last week’s prefabricated housing news.

Consumer financial protection Bureau unconstitutionalConsumer Financial Protection Bureau Ruled Unconstitutional

Followers of MFH News will likely recall that we have detailed the frustrations with the unintended consequences included in the Dodd/Frank Finance Reform legislation that has dramatically hampered the sale and financing of manufactured homes – disallowing many otherwise qualified hardworking families from realizing their dream of affordable quality homeownership. We have reported that the director of the Consumer Financial Protection Bureau (CFPB) Director James Cordray, has the complete authority to eliminate the legislative error, but thus far as steadfastly refused to do so. With President-Elect Donald Trump promising to amend or replace Dodd/Frank, there is now hope that will be accomplished. Up until now, there has been concern that new legislation to overturn may be filibustered in the Senate by Democrats, thus requiring 60 votes to overcome. With Republicans having a small member majority (58), it is circumspect that the filibuster would be over-ridden. However, thanks to a recent court case, the onerous Dodd/Frank Act regulations negatively affecting manufactured housing may be accomplished unilaterally by incoming President Donald Trump, in the event repeal legislation fails. The United States Court of Appeals ruled week of October 10, that the Consumer Financial Protection Bureau’s (CFPB) leadership structure is unconstitutional. In a 2-1 ruling decision, the court agreed with PHH Corp.,a New Jersey originator and servicer of residential mortgages who had been fined $109 million by the CFPB, that  the independent agency’s single-director structure violates Article II of the Constitution because the director can only be dismissed by the President of the United States for cause. The court did not agree that the agency should be dismantled and ruled that the bureau should operate as an executive agency, where the President would supervise and direct the CFPB and have the power to remove the Director at any time, without cause. Texas congressman Jeb Hensarling, the Republican chairman of the House Financial Services Committee, had a favorable view, calling the ruling “a great day for democracy, economic freedom, due process and the constitution.” Created by the Dodd/Frank Act, the CFPB has assessed $12 billion in fines and disgorgements in it five-year history. 

south_carolina_flood_victims_financial_reliefSouth Carolina Flood Victims Get Manufactured Homes

Manufactured homes are the “go to” housing following natural disasters. The latest state to benefit from the availability of safe manufactured housing are the nearly 1500 hundred victims of the South Carolina flood disaster in 2005. According to a report by WLTX 19 in Columbia, the South Carolina Disaster Recovery Office has received a $96 million grant from HUD, and they plan on using that money to help people still impacted by the October Flood of 2015. The long-term recovery program is designed to assist low to moderate income households and focuses on the repair or replacement of homes for those who qualify. They have a number of manufactured homes that are not liveable because of the flood. The homes are three bedroom and two baths and 860 square feet. The group says their goal is to repair or replace 1500 homes. The program does not apply to residents of Richland and Lexington County or Columbia. It does apply to Calhoun, Clarendon, Fairfield, Kershaw,Lee. Orangeburg and Sumter. The deadline for citizens to apply for this program is April 30, 2017.

The_Kaufman_By_Skyline_Homes_KitchenSkyline Earnings Reflect a Very Positive Turnaround – 

First quarter 2017 earnings for Skyline Corporation (NYSE:SKY) reflect a very positive turnaround for one of the nation’s oldest manufactured home producers. Net sales from continuing operations of $61,176,000 were up 25.5% from continuing operations covering the same period last year ($48,742,000). Net income from continuing operations at $744,000 was very good news compared to a loss of $898,000 in the first quarter of 2016. Additionally, the company reported zero loss from discontinued operations. President and CEO, Richard Flores stated that “our continued focus on growing sales and improving margins through disciplined operations generated favorable year over year results,” according to online reports.

Louisiana modular homesLouisiana City Proposes Restrictions on Modular Homes

Zoning issues: The Beauregard Parish City Council on Monday night introduced ordinances that spell out where residents can place modular housing and under what circumstances. The two proposals will be the subject of public hearings on Nov.28, according to the Beauregard Daily NewsOne ordinance allows placing of modular homes only in Zoning Districts B-1 (transitional business district, R-2 (higher density single family residential district). The other prohibits modular homes in R-1 (single family residential district) and R-1-A (residential), where they are placed now. The Planning and Zoning Commission, and hence the council, has been wrestling with the issue of manufactured housing and modular housing for months. Previously, it has outlined where manufactured housing, more commonly known as mobile homes, can be placed.

 screen-shot-2016-11-21-at-7-27-04-amOcean Breeze, Florida

This our favorite story of the week. Before we report the news from Ocean Breeze, you might find the history of this little town interesting. Ocean Breeze, formerly Ocean Breeze Park is a town on the Indian River in Martin County, Florida.  Ocean Breeze and Briny Breezes in Palm Beach County are the only two towns in Florida in which all residents live in a mobile home community bearing the name of the town. Ocean Breeze Trailer Park was established in 1938 by Harry Hoke. The Ocean Breeze town government was formed in 1960. Harry Hoke was elected as the town’s first mayor. At the time of its incorporation, the 65-acre park was said to be the largest privately owned trailer park in the United States. As of 2013 the town dropped ‘Park’ and is known simply as Ocean Breeze. Dorothy Geeben, was mayor from 2001 to 2011. When she was re-elected in 2004 at age 96, the national media dubbed her the nation’s oldest living mayor. Mayor Geeben died on January 11,2010, at the age of 101, just short of her 102nd birthday. Now the Ocean Breeze News: According to – six candidates are running for three open Ocean Breeze Town Council seats with one candidate unopposed for mayor in the December local election. Karen Ostrand,69, the only candidate for mayor, would be elected to the seat Dec.20. 

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