joe stegmayer & j.c. strutzel recipients of prestigious awards

Page 1 

Jan / Feb 2012 

Web Edition 

A bi-monthly newsletter published exclusively for member companies 

CMHI’s Holiday Open House at The 

Mission Inn in Riverside on December 

8, 2011 provided an appropriate 

backdrop for the announcement of the 

recipients of the association’s highest 

honors. With over 190 CMHI members 

and industry friends in attendance, 

CMHI President Jess Maxcy presented 

two well deserving people with these 

honors: 

2011 Jack E. Wells Memorial 

Award 

JOE STEGMAYER & J.C. STRUTZEL 

RECIPIENTS OF PRESTIGIOUS AWARDS 

Joseph Stegmayer – Cavco 

Industries, Inc. 

Selected by a Committee of past 

Jack E. Wells Memorial Award 

recipients for his steadfast commitment 

and productive leadership on behalf of 

the industry, Joseph “Joe” Stegmayer 

becomes the 62 nd recipient of this 

revered award. 

Joe is Chairman, President and Chief 

Executive Officer of Cavco Industries, 

Inc. headquartered in Phoenix, Arizona. 

The company is one of the largest in 

the systems built construction industry 

with 15 manufacturing plants in nine 

states. It produces a diverse product 

line of factory built homes, vacation 

cabins and commercial buildings. The 

company’s factories in Phoenix export 

product to Mexico, Canada, Japan and 

Israel. 

In 2009, the company acquired the 

operations of Fleetwood Homes of 

Riverside, California. Fleetwood, which 

has produced and sold more than 1.3 

million homes since its inception 60 

years ago, operates as a subsidiary 

of Cavco. Last year the company 

From left to right: CMHI Chairman Gary Barr-Alpert, Barr & Grant APLC; 2011 Richard R. Percival 

Lifetime Achievement Award Recipient, J. C. Strutzel-Express Escrow Company; 2011 Jack E. Wells 

Award Honoree, Joe Stegmayer-Cavco Industries, Inc. and CMHI President Jess Maxcy 

acquired the assets of Dallas, Texas 

based Palm Harbor Homes. 

Joe joined Cavco in 2000 and has 

extensive experience in the housing 

industry. Previously he was President 

and Vice Chairman of the Board of 

Directors of Clayton Homes, Inc. Prior 

to entering the housing business, Joe 

was executive vice president and a 

director of a multi-billion dollar global 

steel manufacturing company. 

Joe holds degrees in finance and 

marketing from the University of 

Louisville. He did graduate work at Ohio 

State University and is also an alumnus 

of The Center for Creative Leadership 

and the Joint Center for Housing 

Studies at Harvard University. 

Active within the industry, Joe 

is Chairman of the Board of the 

Manufactured Housing Institute (MHI), 

the industry’s trade association in 

Washington, D.C. Joe was first elected 

to CMHI’s Board of Directors in 2010. 

In addition, he was elected as an 

Officer, 2 nd Vice Chairman that same 

year and is still serving in that capacity. 

Joe also serves as a director of 

Desert Voices Oral Learning Center, the 

Stardust Center for Affordable Housing 

at Arizona State University and was 

appointed by the Governor of Arizona 

to the state’s Board of Manufactured 

Housing. 

Jack Wells, through his company cosponsored 

the J. E. Wells Company, 

Inc. Annual Award which was first 

presented in 1950. It is presented 

to a person who has demonstrated 

long-term outstanding services to the 

association and the manufactured 

housing industry. Jack Wells was 

twice the President of The Trailer 

Coach Association (TCA), and is 

well remembered for his outstanding 

contributions to the industry and its 

trade associations. Following his death 

continued on page 2

Front page continued... 

in 1971, the Board of Directors of TCA 

decided that the award would then be 

known as the Jack E. Wells Memorial 

Award. 

2011 Richard R. Percival 

Lifetime Achievement Award 

J. C. Strutzel – Express Escrow 

Company 

Honored for a “lifetime” of dedication 

and extraordinary achievement in the 

factory constructed housing industry, 

J.C. Strutzel, Chairman of the Board of 

Express Escrow Company, becomes 

the 23 rd recipient of this award. 

For J.C. this truly is a lifetime 

achievement award. He is a 

“Mobilehome Brat”. His first exposure 

to the industry was in 1952 when his 

father, Jim acquired Mayflower Trailer 

Company. This was one among many 

of the early trailer manufacturers 

that evolved from building trailers 

to mobilehomes. Jim Strutzel twice 

served as President of the Trailer Coach 

Association and served many years on 

its Board of Directors. This afforded 

J.C. the opportunity to meet most 

of the pioneers in the mobilehome/ 

manufactured housing industry. 

Following their example, J.C. has 

always actively and effectively served 

his associations: California Mobilehome 

Dealers Association (CMHA), Western 

Manufactured Housing Institute (WMHI) 

and the California Manufactured 

Housing Institute (CMHI). 

Prior to going into the escrow 

business, J.C. had work experience 

in manufactured home insurance, 

finance and manufacturing. These 

earlier experiences enabled him to 

acquire a unique understanding of 

the interrelationships of the various 

segments of the industry. 

In 1970, J.C. graduated from 

Long Beach State University with 

a Bachelor’s Degree in Business 

Administration. He completed several 

units towards earning a Master’s 

Degree in Business Administration 

prior to opening Express Escrow for 

business in 1976. He subsequently 

changed his objective in supplemental 

learning to obtaining a real estate 

broker’s license, which he earned in 

1978. 

His breadth of technical knowledge 

enabled him to understand the 

prospective impact of various 

legislative proposals, making him 

potentially helpful to those who 

required assistance or clarification. Of 

particular note, he served as an expert 

for the California Banker’s Association 

(SB1035 Haynes, eff. 1984) and the 

State Controller’s Office (AB241 Hauser, 

eff. 1988). When the state experienced 

a high level of fraud involving a 

significant number of “mobilehome 

escrow” agents, J.C. was asked to 

conduct a training seminar for a state 

enforcement agency. As part of that 

engagement, J.C. prepared a 57 page 

audit manual to assist investigators. 

J.C. served as a member of the 

Formation Committee that led to the 

creation of CMHI in 1986. Since that 

time he has been an active member on 

CMHI’s Board of Directors and served 

as CMHI’s first Treasurer. 

J.C. has earned many industry honors 

over the years. In 1988, he was the 

recipient of the Jack E. Wells Memorial 

Award. In 1996, he was presented 

with CMHI’s Chairman’s Award by Jess 

Maxcy, then Chairman of the Board. 

In 1999, J.C. was awarded CMHI’s 

President’s Award. 

CMHI’s Lifetime Achievement Award 

was first presented in 1995. Long time 

industry veteran, Richard R. Percival 

– Zieman Manufacturing Company, 

was the first recipient of this award. In 

his honor, after his death in 2007, the 

award was renamed the Richard R. 

Percival Lifetime Achievement Award. 

The CMHI Board of Directors, staff 

and entire membership congratulate 

Joe and J.C. on their much deserved 

honors. Formal presentation of these 

awards will take place on Thursday, 

March 15 th , 2012 at the Jack E. Wells 

Awards Banquet at the Pechanga 

Resort and Casino in Temecula, 

California. 

CMHI ANNOUNCES 2012 

ANNUAL CONVENTION 

Page 2 

The Pechanga Resort and Casino in 

Temecula once again will be the host 

site for CMHI’s Annual Convention, 

March 14th –16th. 

The event kicks-off on Wednesday, 

March 14th with the Board of Directors’ 

Meetings and the Welcome Reception 

sponsored by Triad Financial Services. 

The Annual General Membership 

Meeting and Awards Luncheon will be 

held on Thursday March 15th. That 

evening, CMHI hosts its Annual Jack E. 

Wells Memorial Awards Banquet. On 

Friday, March 16th tee times have been 

reserved for those who dare to play 

Journey…..at Pechanga, a world class 

golf course 10,000 years in the making. 

CMHI convention attendees will enjoy 

$99 w/cart discounted green fees. 

Sleeping rooms are available at 

Pechanga at CMHI’s special room 

rate of $109 per night, single/double 

occupancy. Make your hotel room 

reservations before February 21, 2012- 

the cut off date. To make your hotel 

room reservations: 

By Phone: (888)732-4264 and ask for 

“CMHI Room Block” 

Via Web: www.pechanga.com; 

Click on “Resort”; Click on “Room 

Reservations”; Select “Dates of 

Stay”; Click on “Special Rates”; Click 

on “Group/Block” and enter code 

SCMHI12. 

For a complete 2012 Annual 

Convention Brochure and Registration 

Form please click here or go to CMHI’s 

website: www.cmhi.org. Convention 

Sponsorship information will be emailed 

shortly. 

If you have any questions, please call 

Kim or Connie at (909)987-2599. See 

you all there!

Page 3 

AB 317 

Mobilehomes: 

(Calderon, C.) 

2011/‘12 California Industry Legislation 

BILL DESCRIPTION STATUS CMHI 

POSITION 

AB 505 

Housing programs: 

Audits 

(Harkey) 

Revises the conditions under which a tenancy in a mobilehome 

space within a mobilehome park is exempt from a local rent control 

ordinance, rule, regulation, or initiative. Makes the exemptions 

applicable when the mobilehome space is not the sole residence 

of the mobilehome owner. Specifies the evidence upon which 

management of a mobilehome park may rely to determine whether a 

residence is the mobilehome owner's sole residence. 

As amended, this bill would require the State Auditor's office to 

perform an audit of the Department of Housing and Community 

Development every four years. 

Passed 

Assembly 

Committee 

on Housing & 

Community 

Development 

January 11, 

2012 

Two Year Bill 

Watch 

Two Year 

Bill 

Watch 

AB 579 

Mobilehome Parks: 

Liability: 

Attorney's Fees 

(Monning) 

Permits the award of attorney's fees and, in some cases, other 

litigation expenses, to a local governmental entity in an action 

brought by the owner of a mobilehome park to challenge the validity 

or application of a local ordinance, rule, regulation, or initiative 

measure that regulates space rent or is intended to benefit or protect 

residents in a mobilehome park, if the local governmental entity is 

determined to be the prevailing party. 

In Assembly 

Committee 

on Judiciary: 

Not Heard 

Watch 

Two Year 

Bill 

AB 928 

Housing and 

Community 

Development: 

Mobile Home 

Parks 

(Wieckowski) 

This bill is currently a "spot" bill. A "spot" bill is a placeholder for 

legislation that is yet to be determined. This bill will likely be used as 

a vehicle to introduce housing related legislation. 

Two Year Bill 

Watch 

SB 149 

Mobilehomes: 

(Correa) 

Makes a technical, nonsubstantive change to the Mobilehome 

Residency Law which governs tenancies in mobilehome parks and 

imposes various duties on the owners of mobilehome parks and the 

agents and representatives authorized to act on behalf of the owners. 

Passed Senate 

Committee on 

Transportation 

& Housing 

January 11, 

2012 

Watch 

Two Year 

Bill 

SB 376 

Real Estate 

Brokers 

(Fuller) 

Amends Business and Professions Code Section 10131 and adds 

10131.8 to allow property management companies who manage 

properties for a fee and are already required to be licensed as real 

estate brokers by the Department of Real Estate (DRE), to make 

these used mobilehome loans under their DRE broker license and an 

MLO license instead of having to acquire an additional license as a 

finance lender by the Department of Corporations. 

In Assembly 

Appropriations 

Committee 

(In-Active) 

Support 

Two Year 

Bill

Page 4 

CMHPAC 2012 CAMPAIGN 

VOLUNTARY CONTRIBUTION FORM 

• All CMHPAC contributions are strictly voluntary. 

• Corporate checks CAN be used for PAC 

contributions in California according to law. 

• Corporate contributions are permissible in California 

according to law. 

• There is no federal or state deduction or tax credit 

for PAC contributions made by businesses or 

individuals. 

• Contributions to a PAC by individuals or 

corporations are limited to $6,500 per calendar year. 

• Contributions of any amount are appreciated. 

Retailers 

Manufacturers 

$150 Annually 

$250 Annually 

Suppliers 

·$400 members $200 Annually 


Developers/Community Owners 



Financial Services 

Individuals & 

Affliliates 

CONTRIBUTION 

GUIDELINES 

$250 Annually 

$100 Annually 

Please make checks 

payable to: 

CMHPA C 

ALL PURPOSE ACCOUNT 

ID#890112 

10630 Town Center Dr., #120 

Rancho Cucamonga CA 91730 

The Fair Political Practices Commission (FPPC) REQUIRES the following: 

___________________________________________________________________ 

Name 

___________________________________________________________________ 

Employer 

___________________________________________________________________ 

Address 

City, State, Zip 

___________________________________________________________________ 

Occupation (If individual) 

ENCLOSED IS OUR/MY 

CMHPAC 2012 CAMPAIGN CONTRIBUTION 

IN THE AMOUNT OF 

$_____________

Page 5 

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ViewPoint 

HAPPY NEW YEAR! 

Welcome to 2012 and CMHI’s 

75 th Anniversary! 

Seventy-five years ago we joined 

forces as the Trailer Coach Association 

(TCA). Since then we have transitioned 

from TCA to the Western Manufactured 

Housing Institute to California 

Manufactured Housing Institute – our 

nation’s oldest association representing 

all segments of our industry. 

Representing all segments of the 

industry has, at times, been a challenge 

but it has definitely been my experience 

that working together produces a 

greater total effect than that produced 

by the sum of individual efforts……… 

synergy works! 

As we head into the New Year we 

need to keep in mind that if an issue 

is bad for one segment of our industry 

that means it is probably bad for our 

customers and that means it is bad for 

all of us. Here is a case in point….. 

A December 16, 2011 article posted 

on mydesert.com provided initial detail 

on a dispute concerning permissible 

fees that can be charged for a permit to 

install a manufactured home in a M/H 

park. 

The City of Desert Hot Springs, 

relying on the California Mitigation 

Fee Act (MFA) passed an ordinance 

which serves as the basis for 

imposing a development impact fee 

(DIF) of approximately $6,970 for 

a permit to install a manufactured 

home in a developed M/H park. As 

a consequence families wishing to 

purchase manufactured homes to be 

installed on the 78 vacant lots in Palm 

Vista Estates would be faced with 

an aggregate fee of approximately 

$543,660. If, as has been asserted, the 

city is actually charging up to $9,200 

per permit to install a manufactured 

home, the aggregate fee could be as 

high as $717,600. 

The owner of Palm Vista Estates and 

the California Department of Housing 

and Community Development (HCD) 

have challenged the applicability of 

the DIF to manufactured homes to 

be installed in already permitted M/H 

parks. As posted in the WMA Newsline 

dated December 12, 2011: 

The following information is 

provided by Brad Harward, 

Manufactured Housing Programs 

Manager with the Department 

of Housing and Community 

Development (HCD) - Under the 

authority of the Mobilehome Parks 

Act (MPA), a city or county may 

assume enforcement responsibility 

from the State for the mobilehome 

parks within their jurisdiction. Such 

governmental agencies are then 

defined as a Local Enforcement 

Agency or LEA and assume the 

mandate to properly enforce the 

MPA. 

HCD staff has learned that some 

of the LEAs have been charging 

in excess of the HCD-mandated 

$196 permit fee for manufactured 

home installations. The overcharges 

range from several hundred to 

many thousands of dollars. These 

overcharges are occurring because 

the LEAs are calculating fees in 

excess of the pre-established 

MPA permit fees or by adding 

local mitigation fees. According 

to California State law, only a new 

mobilehome lot may be assessed 

mitigation fees and those fees are 

assessed at the time the park or lot 

is constructed, not when a home is 

installed on an existing lot. HCD is 

looking into the practices of at least 

four LEAs regarding the assessment 

of fees in excess of those permitted 

by the MPA for installation of the 

Page 6 

manufactured homes inside a park. 

The MPA, California Health and 

Safety Code Sections 18200 through 

18700, and its adopted regulations 

contained in the California Code 

of Regulations, Title 25, Chapter 

2 provides for the enforcement 

of mobilehome parks, including 

manufactured home installations and 

fees. The fees set forth are the only 

fees that may lawfully be assessed 

for the installation of a manufactured 

home inside a park. The current 

cost of a permit and inspection for 

the installation of a manufactured 

home in a park is $196 for the first 

hour and $41 for the second and 

subsequent half hour thereafter. An 

LEA is required to enforce the MPA 

and has no authority to exceed the 

statutorily mandated permit fees. 

The fee set by the regulations 

of the installation, or set-up of a 

manufactured home, includes permit 

issuance, travel, administrative time 

and the first hour of inspection. 

continued on page 7 

EXPRESS 

ESCROW 

COMPANY 

EXPERTS IN PERFECTING TITLE 

FOR PARK-OWNED HOMES 

California’s leading authority on 

technical issues concerning 

manufactured housing 

title and escrow 

Mobile/manufactured home and 

mobilehome park sales and 

refinance escrows 

Statewide service 

7812 EDINGER AVE. SUITE 300 

HUNTINGTON BEACH CA 92647 

(800) 669-6925 FAX (714) 848-9174 

info@ExpressEscrow.com

Page 7 

2012 CALENDAR OF EVENTS 

February 26th ~ 28th 

March 14th ~ 16th 

April 10th ~ 12th 

May 5th ~ 12th 

June 7th 

Calendar of Events 

MHI Legislative Conference 

Sheraton Crystal City 

Washington, D.C. 

Contact Cheryl Langley 703-558-0668 

Cheryl@mfghome.org 

CMHI 2012 Annual Convention 

CMHI Board of Directors’ Meeting 

CMHI Foundation Board Meeting 

Jack E. Wells Memorial Awards Banquet 

Pechanga Resort & Casino 

Temecula, CA 

Contact CMHI 909-987-2599 

kim@cmhi.org 

National Congress & Expo 

Caesar’s Palace 

Las Vegas, NV 



WMA Spring Seminar 

Grand Wailea Resort 

Maui, Hawaii 

Contact Regina Sanchez 916-448-7002 

regina@wma.org 

CMHI Board of Directors’ & CMHI 

Foundation Directors’ Meetings 

Northern California Chapter Meeting 

Sheraton Grand Hotel 

Sacramento, CA 


kim@cmhi.org 

ViewPoint continued... 

There are no additional add on, plan 

check, or mitigation fees allowed 

and an installation permit is not 

based on “valuation” of the home or 

total cost of the project. Although 

this is clear for the installation of 

the actual “home”, there may be 

additional fees and sometimes plan 

check fees for the construction of a 

permanent foundation when that is 

utilized. 

The only exception is school impact 

fees, which may only be applied to 

the first manufactured home being 

placed on a lot that was developed 

on or after September 1, 1986. 

There are no school impact fees 

on replacement manufactured 

homes regardless of size. If you 

believe a local enforcement agency 

is charging excessive fees in your 

park, please notify us and HCD will 

investigate your complaint. 

Brad Harward can be reached a 

bharward@hcd.ca.gov or (916)324- 

4907. 

Now, can a case be made that 

inappropriate permit fees ranging from 

$7,000 to $9,200 just affects the park 

owner? Of course not! That is why 

CMHI, representing all segments of our 

industry, concurs with HCD’s position. 

Retroactive development impact fees 

do not make for affordable housing! 

October 7th ~ 9th 

December 6th 

MHI Annual Meeting 

Hotel Contessa 

San Antonio, TX 



CMHI Board of Directors’ & CMHI Foundation 

Directors’ Meetings 

2012 Holiday Open House 

The Mission Inn Hotel & Spa 

Riverside, CA 


kim@cmhi.org 

Disclaimer: 

Advertising Note: The content of any 

advertising insertion is prepared solely 

by the advertising member. By insertion, 

CMHI does not endorse the product or 

service being offered nor is it, in any way, 

responsible nor liable for the content of 

any such advertisement.

Page 8 

Uncompromising Quality, 

Value and Design 

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see details at 

WWW.SILVERCREST.COM 

www.silvercrest.com • e-mail: info@silvercrest.com 

299 North Smith Avenue • P.O. Box 759 

Corona, CA 92878-0759 

951/734-6610 • 800/382-0709

Around California 

WELCOME NEW MEMBERS 

Retailer Division 

Fountain of Youth Spa Corp. 

Jolene Wade, San Diego 

Leo Fuller & Associates* 

Leo Fuller, Redlands 

M-C Manufactured Homes LLC* 

Michael Converse, Corralitos 

Financial Services Division 

CountryPlace Mortgage* 

Kory Beickel, Mesa AZ 

*Pending Executive Committee Approval 

Phase I Formaldehyde 

Reminder 

The “sell through period” for 

manufactured homes containing Phase 

I Medium Density Fiberboard (MDF) is 

currently scheduled to expire on June 

30, 2012. CMHI is currently working 

with the Air Resources Board to obtain 

an extension of the “sell through 

period” beyond June 30th. 

The emission standard for Phase I 

MDF is 0.21ppm. 

The “sell through period” for homes 

containing Phase I Thin Medium 

Density Fiberboard (TMDF) is scheduled 

to expire on June 30, 2013. 

Retailers can verify the status 

of inventory homes by reading 

the certification provided by the 

manufacturer on the home invoice. 

CMHI members should review 

Special Bulletin 2011-02: click here. 

Members will also be kept informed 

by CMHI Special Bulletins as to our 

progress on securing a Phase I “sell 

through period” extension for MDF. 

Meet CMHI 1 st Vice Chairman 

- David Durant, Macy Homes 

David Durant’s career in the 

manufactured housing industry began 

in 1974 when his father, Robert Durant 

became the General Manager of the 

Fleetwood Festival plant in Reform, 

Alabama. What a culture shock that 

experience was to a native California 

boy. One year after arriving in Alabama, 

Fleetwood closed the plant. Then the 

Durant family was sent to Waco, Texas 

where Robert ran the Terry travel trailer 

plant for four years. 

In 1980, David and his father took 

over a camper shell manufacturing 

business in Fillmore, California where 

they built and shipped truck camper 

shells all over California. During this 

time, they ventured out and opened 

truck camper shell accessory stores. 

One of the stores was located in 

Oxnard. Their landlord at the time 

was Harry Macy, Jr. who owned Macy 

Homes. 

Macy Homes was started in 1951 

by Harry’s father to provide housing 

for the region’s migrant sugar beet 

factory workers. Harry had been in 

the business for 43 years and was 

ready for retirement. He approached 

the Durant’s about purchasing the 

business. On January 1, 1994, the 

Durant’s took over Macy Homes and 

sold their truck camper shell accessory 

business. 

Seventeen days later on January 

18, 1994, the Northridge Earthquake 

rocked the area. David feels strongly 

that from all adversity comes 

opportunity. The mobile home and 

manufactured housing business had 

decreased significantly in the early 

90’s. “I believe that the Northridge 

Earthquake played a large part in our 

Page 9 

success the first few years,” said 

David. For their first couple of years as 

owners of Macy Homes the majority of 

the business was replacing earthquake 

damaged homes. 

Over the years Macy Homes 

expanded by opening a resale 

department and satellite sales offices. 

Today they operate sales centers in 

Ventura, Nipomo and Atascadero. 

Each sales center has model homes 

on display. “It is my goal to continue 

to provide quality housing and efficient 

service to our customers. Even in 

these tough economic times, Macy 

Homes is surviving on referrals from 

satisfied customers we have had over 

the years,” Durant stated. 

Macy Homes has been a supportive 

and active member of CMHI since 

August 1994. David Durant has served 

on CMHI Board of Directors since 2007 

and was elected 2nd Vice Chairman in 

2009 for which he served two terms. 

He was elected as 1st Vice Chairman in 

March 2011. In addition, Macy Homes, 

Inc. was awarded CMHI’s Retailer of 

the Year Award in 2005. 

Champion Home Builders 

Introduces Powerful Retailer 

Sales Tool 

On November 3, 2011, Champion 

Home Builders announced the launch 

of the company’s new Internet-based 

retailer sales tool, DiVE IN (Design 

Interactive Viewing Experience). 

The technology enables Champion 

retailers to present custom design 

options for the company’s modular 

and manufactured homes to match 

the lifestyle of their clientele. Retailers 

and customers can choose from a 

variety of floor plans such as alternate 

kitchen layouts, flexible spaces and 

master bath suite designs. Users can 

also manage exterior designs and 

colors, take a “virtual tour” of each 

home’s living space and see images of 

completed homes. This new resource 

is available on the company’s Web site, 

www.championhomes.com. 

Source: Enhanced Online News – November 3, 

2011 

continued on page 10

Around California continued... 

California BOE Warns 

Beware of Misleading 

Business Solicitations 

Recently, businesses in California 

have reported to the California’s 

State Board of Equalization (BOE) 

that they have received notices from 

the “California Labor Compliance 

Bureau,” requesting immediate 

payment of a “processing fee” of $275. 

The California Labor Compliance 

Bureau IS NOT a government 

agency. The notices use publicly 

available information such as BOE 

account numbers and industry codes 

to make them appear to be official 

correspondence. 

The “processing fee” is purportedly 

for labor-related notices that California 

employers are required to post at 

their business premises informing 

employees of their legal rights under 

the National Labor Relations Act. The 

notices in question are available free 

of charge from the National Labor 

Relations Board (NLRB) on their 

website here: https://www.nlrb.gov/ 

poster. 

The BOE is not affiliated in any way 

with the California Labor Compliance 

Bureau. Correspondence from the 

BOE will always feature the BOE’s 

title and/or logo and contain contact 

information. If you receive a notice 

and question whether it is official BOE 

correspondence, you should contact 

your local BOE office. A list of contact 

numbers of BOE field offices can be 

found here: http://www.boe.ca.gov/ 

info or call the BOE’s Information Call 

Center at (800)400-7115. 

The NLRB can assist businesses with 

questions regarding required notices at 

(202)273-0064. 

Source: SteelNews – October 31, 2011 

State Unemployment 

Insurance Fund Debt Leads 

to Higher Federal Taxes 

Absent an act of Congress, California 

employers will be paying higher taxes 

starting January 1, 2012 because 

the State of California has not repaid 

money it borrowed from the federal 

government to pay unemployment 

insurance (UI) benefits. 

California’s UI Trust Fund has 

been insolvent since January 2009, 

due in part to the large numbers 

of unemployed Californians. Also 

contributing to the UI fund’s insolvency 

has been legislation that imposed 

benefit increases in 2001 without 

including cost-saving reforms. 

The tax increase amounts to $21 

per year for any employee who makes 

$7,000 or more in 2012. California 

employers pay UI taxes on the first 

$7,000 of wages per employee. 

Therefore, the Federal Unemployment 

Tax Act (FUTA) credit for California 

employers will decrease from 5.4 

percent to 5.1 percent on January 1, 

2012, a 0.3 percent credit reduction. 

These additional taxes paid will offset 

California’s federal loan balance. 

Statewide, the tax increase amounts 

to an estimated $289.8 million in 2012 

and $615.7 million in 2013, according 

to the California Employment 

Development Department’s (EDD) 

Unemployment Insurance Forecast. 

EDD is advising any employers with 

questions on the FUTA credit reduction 

to contact the IRS at www.irs.gov. 

Home Buyer Assistance 

Available 

The City of Gilroy has resumed its 

Home Buyer Assistance Program. 

Originally intended to help city 

employees, teachers and firefighters 

become first time home owners, 

effective November 1, 2011, the 

program was modified to provide 

assistance to all middle and low 

income residents of the city. 

Page 10 

Supported by Gilroy’s Housing Trust 

Fund, the Home Buyer Assistance 

Program provides a pool of $200,000 

for specified loans to qualified buyers. 

Program Basics 

• 15 year loans 

• Manufactured homes eligible for 

$10,000 loan 

• Interest Rate: First 5 years – 0% 

Second 5 years – 5% 

Last 5 years – 8% 

Home buyer qualifications include 

household income limits and 

completion of a financial planning 

class. 

Application guidelines are available 

at: http://www.ci.gilroy.ca.us or call 

Regina Brisco at (408)846-0242. 

Source: Gilroy Dispatch – December 27, 2011 

CMHI Foundation Jerral 

Hancock Update - His 

Rugged Road to Recovery 

LANCASTER ~ Jerral Hancock wears 

a black T-shirt that tells a lot of his 

story: “When I die I’ll go to Heaven, 

because I surely have spent my time in 

Hell.” 

For Hancock, “Hell” began on May 

28, 2007 – his 21st birthday. He was 

piloting his M-1A Abrams Tank down a 

Baghdad street when it was caught in a 

fiery explosion. 

He woke up a month later in a 

hospital. His left arm was sheared off 

from his shoulder as an EFP blasted 

through the vehicle’s floor showering 

hot metal inside the tank. In addition, 

he suffered a spinal cord injury leaving 

his right arm nearly useless and 

causing paralysis from the chest down. 

During his aftercare odyssey, 

Hancock suffered through several 

complex surgeries and went for 

advanced therapies at Stanford 

University Medical Center under the 

care of the VA’s Palo Alto Polytrauma 


Page 11

Page 12 


Rehabilitation Center. With his mother 

and wife at his side, Jerral navigated in 

and out of many medication regimes 

and agonizing physical therapy. 

It was during this time (July 2007) 

that Jess Maxcy, CMHI members and 

the CMHI Foundation found out about 

Jerral’s traumatizing ordeal. Through 

a charitable campaign, the CMHI 

Foundation and CMHI membership 

raised significant funds to pay off the 

mortgage to Hancock’s manufactured 

home, which he was purchasing for 

his young family when his body was 

ruined in the explosion and, to the 

conversion of making it accessible for 

his wheelchair. “That Jess Maxcy did 

all right,” Hancock said. “He came to 

visit me up in Palo Alto.” 

life as possible. “I can’t sit around the 

house all day. I’ve got to be out and 

moving around,” Jerral states. 

Source: Blue Star Riders Newsletter – 

November 2011 

Bob Huff Elevated to Senate 

Republican Leader 

Business Properties Association, 

the American Council of Engineering 

Companies, California and the 

Inland Empire Caucus, which serves 

citizens with disabilities. He was also 

recognized as the 2011 Job Champion 

of Anaheim by the Anaheim Chamber 

of Commerce and received a perfect 

score in the 2011 California Chamber 

of Commerce Legislative Scorecard. 

One of Senator Huff’s proudest 

accomplishments is getting SB161 

signed into law in 2011, which places 

the health and welfare of California 

schoolchildren first, by allowing trained 

volunteers to administer emergency 

medication to students with epilepsy 

when they suffer a seizure at school. 

CMHI Foundation President Jess Maxcy visits 

with Army Spc. Jerral Hancock at the Palo Alto 

Polytrauma Rehabilitation Center. 

Jerral Hancock continues to trudge 

forward. For a man who survived 

a blast of the type that has killed 

thousands of American troops, he 

operates outside the bounds of selfpity. 

His humor is tough-minded and 

ironic. These days he can manage 

movement in his specialized wheelchair 

that looks about the size of a riding 

lawnmower. He has an advanced 

prosthetic arm custom made for him. 

The micro-processor driven appendage 

is state-of-the-art. Because Hancock 

was so severely burned it makes it 

difficult for the sensors to interface 

with his muscle movements. But, with 

lots of work and help from prosthetic 

experts, it will hopefully be useful to 

him. 

And that is how life is proceeding 

now for this American soldier brave 

enough to go to the world’s most 

dangerous combat zone. Hancock 

remains hopeful for as near a normal 

Senator Bob Huff (R-Diamond Bar) 

has been elected Senate Republican 

Leader following a vote of the Senate 

Republican Caucus. The 29 th District 

Senator, who previously served as 

Republican Caucus Leader and Vice 

Chair of the Senate Budget Committee, 

was a unanimous selection to succeed 

Senator Bob Dutton. 

“I’d like to thank my Senate 

Republican colleagues for their 

unwavering support and look forward 

to working with Majority Leader Darrell 

Steinberg and the Governor on the 

state budget and other issues facing 

California,” said Senator Huff. “The 

Governor had indicated that he will 

work with Republicans when possible, 

and Senate Republicans are open 

to compromise and crafting true, 

bipartisan solutions.” 

Senator Huff was first elected to the 

State Assembly in 2004 after serving 

nine years on the Diamond Bar City 

Council, including two stints as Mayor. 

He was later elected to serve the 29 th 

Senate District in 2008. 

Senator Huff was recognized as 

Legislator of the Year in 2011 by the 

League of California Cities, Citizens 

Against Lawsuit Abuse, the California 

Rebates for Energy Star 

Homes 

2012 is the 

last year to 

claim the 

$500 incentive 

from Pacific 

Gas & Electric 

Company 

Since January 2010, Pacific Gas & 

Electric Company (PG&E) has provided 

a $500 per home rebate to retailers and 

communities for new ENERGY STAR 

manufactured homes connected to 

PG&E service. For more information, 

contact Gwynne Koch, Program 

Manager, Systems Building Research 

Alliance, at (212)496-0900x120 or 

gkoch@research-alliance.org, or visit 

the SBRA website www.researchalliance.org/pages/es_PGE.htm. 


Page 13 

BUILDERS RISK 

Protection From Loan Closing to Occupancy – 

COURSE OF CONSTRUCTION 

INSURANCE 

With Just One Policy! 

When you add Builders Risk Endorsement to one of our manufactured/modular homeowners 

policies, we provide certain protections that continues from delivery 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 

Manufactured Housing Insurance Services at 

1-866-644-7111 

http://www.MHIS.info 

Why have more than one policy 

when you don't need to? 

A MERICAN MODERN INSURANCE G ROUP


In Memoriam – Michael 

‘Mike’ Spence 

Former CMHI 

Member Michael 

Spence passed 

away on June 29, 

2011 in Sun City, 

California at the 

age of 56. Mike 

was a successful 

businessman 

in owning and 

operating his 

manufactured home sales company, 

Integrity Mobile/Manufactured Homes 

in Oceanside. He had retired 3½ years 

ago and since then he was enjoying 

experiencing life in Arkansas, Arizona 

and back to California in his RV. 

Mike was a beloved husband, father, 

grandfather, brother and son to all 

his family. He was also a wonderful 

friend. He possessed a special gift of 

making those in need feel better and 

had a sense of humor that made those 

around him laugh and smile even in the 

worst of times. 

Mike’s biggest loves in life were 

his precious daughters whom he 

adored: Delilah Spence of Hollywood, 

FL; Carrie Gavin of Carson City, NV; 

Johnna Ali of Sacramento, CA and 

Sara Bennett of Bonsall, CA. In 

addition, he is survived by his wife, 

Karen Spence of Sun City, CA; father, 

Dean Spence of Bullhead City, AZ; 

mother, Shirley Shelgren of Roswell, 

NM; two sisters, two brothers and nine 

grandchildren. 

Mike will be truly missed. A private 

family memorial was held in Wichita, 

Kansas and internment was at Fort 

Rosecrans National Cemetery in San 

Diego. 

Source: San Diego Union Tribune – July 9, 2011 

Retired Industry Members – 

Where Are They Now? 

Marty Lagin, Former Fleetwood 

Dealer 

U.S. Army veteran Marty Lagin, a 

radio operator with the 304th Infantry 

Regiment, landed with the troops in 

Le Havre, France in December 1944 

during the Battle of the Bulge. “I used 

to carry a 30-pound radio on my back, 

along with my rifle,” Lagin said of his 

cumbersome trip up to the front lines. 

It was late January 1945, and by 

then, the Allies had the upper hand 

and were pushing into Germany. 

Casualties had thinned the ranks of 

Lagin’s company. On their way into 

Alsdorf, Germany, Private First Class 

Lagin filled the leadership vacuum. 

His captain had been shot up and 

the lieutenant was nowhere around. 

“I couldn’t find him. I couldn’t find 

anybody. I said, ‘Come on guys! We’re 

going up that hill’”. He and his men 

crossed the Nims River and took the 

high ground. They were discovered the 

next day by the Germans. 

February 27, 1945, was Lagin’s last 

day on the battlefield. His company 

took many mortar rounds and one of 

the explosions knocked Lagin down. 

Lagin spent three hours on the ground 

before being carried away to safety. 

After spending the night in a stone 

house in a nearby village, he was taken 

by litter jeep to Luxembourg the next 

day. 

“I knew I couldn’t move my legs. 

It didn’t bother me that much. I 

thought ‘I’m out of it now’”. Two 

young surgeons removed a fragment 

of shrapnel that had wounded Lagin’s 

spine. “When they took the metal out 

of my back, my right leg jumped; my 

left leg remained partially paralyzed,” 

Lagin states. He spent two months 

in a hospital in England and then was 

transported back to New York where 

he spent five months rehabilitating and 

retraining his weakened leg. Marty 

was awarded the Bronze Star and 

the Purple Heart for his bravery and 

service. 

Page 14 

In 1955, he moved to Los Angeles’ 

west side and began a long, successful 

career in the manufactured housing 

industry. When he started out in the 

business, the average home was about 

600 square feet. By the time he retired, 

manufactured homes were being built 

out to over 2,000 square feet. “The 

houses kept getting bigger and more 

livable for families,” he said. 

In 1999, he appeared in a national TV 

commercial for Boston-based Fidelity 

Investments. The commercial was 

filmed at the cemetery in Normandy, 

France and in the fields of Alsdorf, 

Germany, near the site where Lagin 

had been wounded 54 years earlier. 

Now at age 86, Marty is enjoying his 

retirement with his wife, Rhoda in La 

Quinta. 

NOTE: This news feature will appear 

regularly. If you have stories of retired 

industry/CMHI members, please 

submit them to Kim Lear at - 

kim@cmhi.org.

Page 15 


Thank 

You 

California Manufactured Housing Institute 

Expresses Gratitude to 

2011 Holiday Open House Sponsors 

Alpert, Barr & Grant APLC 

California MH Education 

CMH Family of Brands 

DanKat Industries 

J & H Asset Property Mgmt. 

Skyline Homes 

Wells Fargo Home Mortgage 

Bessire & Casenhiser, Inc. 

California Southwestern Insurance 

C U Factory Built Lending 

Express Escrow Company 

Manufactured Housing Insurance Services 

Southern California Edison

Across the Nation 

First GSE Reform Bill 

Unveiled in Senate 

On November 9, 2011, Sen. Bob 

Corker (R-TN) introduced legislation 

(currently unnumbered) to eliminate 

Fannie Mae and Freddie Mac, as well 

as spur the development of a private 

mortgage-backed securities market. 

The bill, known as the Mortgage 

Market Privatization and 

Standardization Act, would gradually 

reduce the portfolio of mortgagerelated 

assets guaranteed by Fannie 

Mae and Freddie Mac and take steps 

to bring uniformity and transparency to 

the housing market. This includes: 

Winding Down of Fannie Mae 

and Freddie Mac: Reduces each 

year the percentage of newly issued 

mortgage-backed securities’ (MBS) 

principal that is guaranteed by Fannie 

Mae and Freddie Mac. The percentage 

guaranteed must be reduced to zero 

within 10 years, at which point MBS 

will be wholly privatized. 

Mortgage Market Transparency: 

Creates an industry-financed database 

that makes uniform performance and 

origination data on mortgages available 

to the public through the Federal 

Housing Finance Agency (FHFA). 

Creation of a new TBA Market: 

Initiates a process for creating 

deliverability rules and technology 

necessary for the “to-be announced” 

(TBA) futures market with no 

government guarantee. 

Monetization of Business Assets: 

Directs the sale of any technology, 

home price indices, and systems 

currently owned by the GSEs to private 

investors. 

Uniform Underwriting Standards: 

Replaces the Qualified Residential 

Mortgage and risk retention with a five 

percent minimum down payment and 

full documentation requirement. 

Residential Mortgage Market 

Uniformity: Creates a uniform 

pooling and servicing agreement 

(PSA) and a new electronic registration 

system (MERS 2) where all loans are 

transferred under one system regulated 

by the FHFA and instructs federal 

regulators to develop uniform practices 

and streamline mortgage regulations. 

For more information CMHI members 

can contact Jason Boehlert at MHI 

(703)558-0660 or jboehlert@mfghome. 

org. 

Source: MHI News Wire – November 15, 2011 

Congress Reauthorizes 

Program for Preferential 

Tax Treatment of Imported 

Lumber 

After months of delay, manufactured 

home builders will now be able 

to purchase imported lumber 

duty free. On October 21, 2011, 

President Obama signed legislation 

to reauthorize the U.S. Generalized 

System of Preferences (GSP) program 

through July 31, 2013. The GSP is 

a program that provides preferential 

duty-free entry for up to 4,800 products 

including lumber, from 129 designated 

beneficiary countries and territories. 

The GSP program expired December 

31, 2010 and while the program has 

enjoyed widespread bipartisan support 

in Congress, reauthorization was 

delayed because of a controversy over 

its impact on one U.S. producer of 

one product imported from one GSP 

beneficiary. 

The lapse in the program resulted in 

substantial increases (as much as 10 

percent) in the cost of plywood and 

other lumber material used to build 

manufactured and modular homes. 

Thanks to Sherry Norris, Executive 

Director of the Alabama Manufactured 

Housing Association for initiating 

a grassroots lobbying effort to 

reauthorize the GSP program. 

CMHI members can contact Lois 

Starkey at MHI (703)558-0654 or 

lstarkey@mfghome.org. 

Source: MHI Weekly Review – November 4, 

2011 

NFPA Report Affirms 

Manufactured Homes Do 

Not Pose Significant Fire 

Risk 

Page 16 

(Arlington, VA – October 27, 2011) – 

Last week, the National Fire Protection 

Association (NFPA) testified before 

a federal advisory committee that 

occupants of manufactured homes are 

no more likely to die from a fire in their 

home than occupants of other single 

family homes. 

During the Manufactured Housing 

Consensus Committee (MHCC) 

meeting, the NFPA testified on its 

report, Manufactured Home Fires 

which concludes that the fire death 

rate for homes built to the federal 

Manufactured Home Construction 

Standards is “comparable” to other 

single family homes. NFPA announced 

that it published a correction to its 

July 2011 report, saying that the 

number of deaths from fires per 1,000 

manufactured homes is 2.4 percent 

not 13.3 percent and is within the 

range (2.3 – 2.6 percent) estimated for 

other single family homes. In addition, 

the report concludes that the rate of 

fire injury and the incidents of fires 

for manufactured home occupants is 

less than for occupants of other single 

family homes. 

“This report concludes what the 

industry and our customers have 

known all along. Manufactured 

homes are built with consumer safety 

considerations first and foremost, and 

manufactured homes are built to high 

quality, stringent standards to keep 

customers safe,” said MHI President 

Thayer Long. 

MHCC members also heard from 

industry representatives, including 

a third party inspection agency and 

several state regulators that the current 

fire safety standards for manufactured 

homes are more stringent than for 

site built homes constructed to the 

International Residential Code (IRC). 

Flame spread, egress, and smoke 

detector requirements are three 

examples. 


Page 17 

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Across the Nation continued... 

The MHCC is authorized by 

the U.S. Congress to provide the 

federal Department of Housing 

and Urban Development (HUD) 

with recommendations regarding 

manufactured housing construction 

standards and related regulations, and 

is composed of 21 voting members 

representing manufacturers and 

retailers, consumers, organizations 

with general interests in manufactured 

housing, and public officials. 

Source: Manufactured Housing Institute (MHI) 

Energy Efficiency Home Tax 

Credit Expired on December 

31, 2011 

Urge Congress to Act 

The federal tax credit for 

manufacturers who build energy 

efficient homes (Section 45L) expired 

on December 31, 2011. After 

extending the Social Security payroll 

tax cut, unemployment benefits and 

Medicare payments to physicians, 

Congress adjourned for the holiday 

recess. A host of temporary tax 

incentives, frequently called “tax 

extenders”-including the New Energy 

Efficient Tax Credit for manufactured 

and modular homes was not included 

in the year-end tax deal. Specifically, 

manufacturers who build ENERGY 

STAR homes are eligible to receive 

a $1,000 tax credit while modular 

home builders are eligible to receive 

a $2,000 tax credit by exceeding the 

International Energy Conservation 

Code (IECC) by 50 percent. 

MHI, along with its broad-based 

coalition of energy efficiency and 

environmental organizations, housing 

associations, public interest groups and 

corporations sent letters to Members 

of Congress urging them to extend 

the New Home Energy Efficient Tax 

Credit. Stimulating the economy will 

be high on the priority list for Congress. 

Senate Finance Committee Chairman 

Max Baucus (D-MT) vowed to continue 

working in January to extend tax cuts 

for individuals and small businesses. 

Baucus has been quietly working 

with his colleagues and fighting to 

find a bipartisan path forward for the 

tax extenders, including the research 

and development tax credit and jobcreating 

clean energy tax incentives. 

The House of Representatives 

returns to Washington, D.C. on 

Tuesday, January 17 th while the Senate 

reconvenes on Monday, January 23 rd . 

Upon the return of our elected officials, 

MHI would like to be well-positioned 

to advocate for the passage of the 

extension of the ENERGY STAR tax 

credit for manufactured and modular 

homes. 

CMHI members are encouraged 

to call or write their district 

representatives. Contact information 

for congressional offices is available at: 

http://www.manufacturedhousing.org/ 

government_affairs/find_congress.asp. 

If you have any questions, contact Rae 

Ann Bevington at MHI (703)558-0675 or 

Rbevington@mfghome.org. 

Source: MHI Housing Alert – January 3, 2012 

House Committee 

Set to Evaluate HUD’s 

Implementation of the 2000 

Improvement Act 

On February 1st, the House Financial 

Services Subcommittee on Insurance, 

Housing and Community Opportunity 

will hold a hearing examining the 

Department of Housing and Urban 

Development’s (HUD’s) record in 

fully implementing the Manufactured 

Housing Improvement Act of 2000. 

MHI has been working closely 

with the committee staff to provide 

substantive background information 

on a variety of areas regarding HUD’s 

activities in updating codes and 

standards for the industry. MHI will 

also have a representative testifying 

before the panel. 

CMHI members can contact Jason 

Boehlert at (703)558-0600 or jboehlert@ 

mfghome.org. 

Source: MHI Week in Review – January 20, 2012 

Page 18 

DOE Rule for New Energy 

Efficiency Standards for 

Manufactured Housing Now 

at OMB for Review 

The U.S. Department of Energy 

(DOE) has completed its draft rule to 

establish energy efficiency standards 

for manufactured housing and has 

sent it to the White House Office of 

Management and Budget (OMB) for 

review. OMB and other interested 

federal agencies will have a chance to 

comment on the draft rule before it is 

published in the Federal Register as a 

proposed rule. It could take up to three 

months or more for comments to be 

received by OMB. 

Although the draft rule is not available 

to the public, MHI believes it will 

call for energy efficiency standards 

based on the 2012 edition of the 

International Energy Conservation 

Code, and establish a system of DOE 

enforcement, including civil penalties, 

to address violations of the standards. 

MHI believes that the draft rule will give 

DOE wide discretion to enforce energy 

efficiency standards for manufactured 

homes. After the rule is proposed, 

DOE will host a public meeting in 

Washington, D.C. to accept comments 

and information regarding the proposal. 

There will likely be a 60-day comment 

period for written comments. 

MHI continues to prepare a technical 

response to the proposed rule, and 

is working with the Systems Building 

Research Alliance (SBRA) on alternate 

technologies, construction designs and 

methods for meeting the new energy 

standards. MHI continues to lobby key 

members of Congress for a change 

in the law to reassert HUD’s authority 

to implement and enforce energy 

standards for manufactured housing. 

CMHI members can contact Lois 

Starkey at (703)558-0654 or lstarkey@ 

mfghome.org or Rae Ann Bevington 

at (703)558-0675 or rbevington@ 

mfghome.org 

Source: MHI Week in Review – January 20, 2012

Page 19 

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Page 20 

Lawrence O. 

McDermott 

California—RCE 23107—LS 3905 

www.mobilehomeparkdesignexpert.com 

Mobile Home Park Design 

Entitlements—Planning—Title 25 Expert 

Civil Engineering—Utility Engineering 

ACSM/ALTA SURVEYS 

7 ~ 10 DAY SERVICE 

40 YEARS EXPERIENCE 

MOBILE HOME PARKS 

COMMERCIAL 

Project Overview Reports 

General Property Information 

Physical Characteristics 

Utility Systems Information 

Facility Conditions—Cost Estimates 

18075 LaVentana, Murrieta, CA, 92562 

(951)304-0111 (951)696-5218 Fax 

E-mail:larry0007@verizon.net 

RETAILER TOOL KIT NOW 

ON CMHI.ORG 

CMHI is committed to your business’ 

success. We’ve added the ability to 

post your manufactured homes for sale 

on the CMHI website. 

CMHI.org sees a tremendous amount 

of traffic from consumers looking for 

information on manufactured homes. 

These potential customers can now 

see your homes for sale while browsing 

for other industry related information. 

The Retailer Tool Kit (RTK) is a 

service based product that allows 

you to upload homes for sale to your 

website without the need of costly 

webmasters or in a manner that lacks 

the professional edge provided from a 

trained designer. 

The RTK resizes your images, creates 

slideshows and updates inventory in an 

easy to use manner. 

The RTK is a product of SGDesign 

which has 16 years industry experience 

helping businesses succeed on the 

ManuFacts is a bi-monthly newsletter 

published by the California 

Manufactured Housing Institute (CMHI) 

exclusively for member companies. 

CMHI is a nonprofit trade association 

representing companies that build, sell 

and finance factory constructed homes 

and manage factory constructed home 

communities; and supply goods and 

services to the industry. 

The Institute was founded to advance 

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 consumer relations programs are 

directed toward these goals. 

CMHI Chairman - Gary L. Barr, 

Alpert, Barr & Grant APLC 

CMHI President - Jess Maxcy 

CMHI Foundation President - Jess 

Maxcy 

Published at - 10630 Town Center 

Drive, Suite 120, Rancho 

Cucamonga, CA 91730 

Telephone (909) 987-2599 

Fax (909) 989-0434 

www.cmhi.org 

Internet. The RTK is being offered to all 

CMHI Retailers free of charge. 

Simply login at : 

http://RetailerToolKit.com 

and use your current CMHI Member 

user and password. 

There is a limitation of 3 homes when 

used with CMHI.org. The full RTK 

Subscription provides unlimited homes 

as well as many other special features 

to make your website successful. 

Please see the RTK website for more 

details or contact Steve Guluk at 

(949) 661-9333.

Page 21 

Make Money by Helping 

Customers Save Money 

Southern California Edison is now offering home retailers and communities 

a $500 incentive for selling new ENERGY STAR® manufactured homes 

The ENERGY STAR® Manufactured Housing Program is a win-win for home buyers and sellers 

alike, with customers purchasing a more comfortable and efficient home that will help lower 

their monthly energy bills, and now the rebate for home retailers and communities to help offset 

some of the costs associated with upgrading to ENERGY STAR. 

Participation Benefits 

• Market differentiation 

• Marketing and outreach support 

• Potential for local and national 

recognition 

Sign Up Today 

Receive free marketing materials 

• Brochures 

• Sales video DVD 

• Window decals 

• Flags 

For More Information 

Southern California Edison Company 

Monica Leong 

1-626-622-9182 

Email scenewhomes@sce.com 

FOR OVER 100 YEARS…LIFE. POWERED BY EDISON.

Special Feature 

Page 22 

Mobilehome Update: It 

has been lawful for Dealers 

to cooperate with Brokers 

since 1998. But is that 

working out? 

By: J.C. Strutzel 

Chairman of the Board - Express 

Escrow & CMHI Legislative Committee 

Chairman 

Going back three decades, this 

is my fourth article on the subject 

of a Department of Housing and 

Community Development licensee 

(Dealer) and Department of Real Estate 

licensee (Broker) co-operating to split 

commissions on the sale of a used 

manufactured home/mobilehome (MH 

unit) that has been registered with 

HCD. It certainly has not been a boring 

topic. 

Some misleading material has been 

published by industry that confused 

Brokers, Dealers and escrow agents 

alike. Seeking clarity on the issue of 

Dealer/Broker cooperation, our very 

own Executive Director, Jess Maxcy, 

met with HCD staff in Sacramento 

last August. The definitive answer 

sought by Jess on behalf of CMHI 

was: “When may a Dealer co-op with 

a Broker without being subject to the 

requirements of Section 18035 of the 

Health and Safety Code?” The answer 

was - Never! A Dealer is always 

in the chain of title. The Dealer 

is identified as the ‘Seller’ in the 

§18035 H&S escrow instructions and 

related purchase documents. 

The following are some questions 

and answers to help you understand 

the significance of this answer: 

Q #1: Can a Broker and a Dealer 

cooperate on the sale of a MH unit? 

A: Yes. It became lawful for a 

Dealer to cooperate with a Broker in 

1998 when Senate Bill 259 by Senator 

Haynes took effect. The subject MH 

unit must be registered with HCD. 

‘Registration’ means recordation by 

HCD of the title information contained 

in an application for registration, which 

means Dealers and Brokers cannot 

cooperate on the sale of a new MH 

unit. 

Q #2: Does that mean a Dealer/ 

Broker cooperative sale would conform 

to both DRE and HCD law? 

A: No. The respective legal 

processes governing Dealers and 

Brokers are vastly different. The 

transactional differences between the 

two make it impossible to comply with 

both sets of laws at the same time. 

The law governing cooperative sales 

between a Dealer and Broker is Dealer 

law such as found in Division 13, Part 

2, of the Health and Safety Code. 

Within that body of law is Section 

18035 H&S, which contains a code 

specified escrow law. 

Q #3: So how do Dealers and 

Brokers cooperate? 

A: If someone licensed only as 

a Dealer cooperates with a Broker, 

the sale is subject to §18035 H&S 

and the Dealer must control the 

sale. The Dealer is charged with 

the responsibility of controlling the 

transaction and making sure the sale 

conforms to HCD law. The Dealer is 

identified as the ‘Seller’ in the escrow 

and purchase documents. The Dealer 

is allowed to pay, and the Broker is 

allowed to receive, a ‘referral fee’ even 

though the Broker has performed a 

function that required a DRE license. 

{NOTE: For more information, read 

Senator Haynes’ Letter to the Senate 

Journal included at the end of this 

article.} 

Q #4: Why was HCD law chosen over 

DRE law as the regulatory process of 

choice? 

A: Both the California Association 

of Realtors (CAR) and HCD expressed 

opinions on this issue. Both parties 

agreed that such transactions should 

only be covered by one body of law. 

CAR recommended DRE law because 

it annually protected hundreds of 

thousands of real property homes. 

HCD said the rights of the consumer 

were far greater under HCD law. HCD 

prevailed. 

Q #5: If the buyer, seller, Dealer and 

Broker all agreed, could a Dealer and 

Broker each process their end of the 

deal according to HCD and DRE law 

respectively? 

A: No. As already stated, it is 

impossible to comply with both 

regulatory schemes at the same time. 

There are unavoidable conflicts that 

cannot be waived. 

Q #6: What are some of those 

conflicts? 

A: Examples of some conflicts are: 

1. Dealers are in the chain of 

title; they guarantee title like an 

automobile dealer (DMV dealer law 

was the genesis for HCD dealer law). 

Brokers act only as agents. 

2. The rights of consumers differ 

significantly depending upon 

whether HCD law or DRE law is 

applied. A few examples are: under 

DRE law a buyer and seller can 

agree to liquidated damage clauses; 

early releases of funds from escrow; 

or waive the creation of an escrow. 

All three of these actions violate HCD 

law. 

3. Remedies for the consumers differ 

depending upon which body of law 

governs the transaction. 

4. A ‘secured party’ (i.e. a ‘legal 

owner or junior lienholder) is required 

to deliver their original title document 

and a HCD ‘Conditional Release of 

Interest’ form prior to the payoff of 

their liens if the escrow is governed 

by HCD law (§18035(d) H&S). In all 

other instances a secured party is 

not required to deliver their original 

title to escrow until after receiving 

payment in full of the unpaid balance 


Page 23 

Special Feature continued... 

due on their loan. 

5. HCD law prohibits any provision 

in an agreement that waives the 

buyer’s rights. Any waiver is deemed 

contrary to public policy and is 

deemed void and unenforceable. 

Q #7: Why is a Dealer regarded as 

the seller when the MH unit is still 

owned by the registered owner and 

what is the significance of that fact? 

A: HCD has said that simultaneously 

to when the buyer has paid the 

purchase price and accepted delivery 

of the home, and the conditions of 

escrow have been met, title to the 

home automatically passes to the 

dealer for a brief instant in time, 

thereby enabling the dealer to have 

the ability to close the escrow, report 

the sale and guarantee title. At close 

of escrow the Dealer was the seller. 

The Dealer and purchaser mutually 

executed a code specified receipt 

for deposit (see §18035.1 H&S), a 

purchase order, conditional sales 

contract, or other document evidencing 

the purchase contemporaneous with, 

or prior to, the receipt of any cash from 

the purchaser. All payments toward 

the purchase shall only be made 

payable to the escrow agent. 

Q #8: A common school of thought 

is that an escrow agent only accepts 

instructions. Assuming that is true, do 

escrow agents have to be concerned 

with making sure the escrow 

instructions they prepare comply with 

MH unit escrow law? 

A: Yes. Several years ago Deputy 

Attorney General Michael Botwin 

answered this question when he 

caused an article to be published in 

“CEA News.” The subject of the article 

concerned a popular escrow agent that 

complied with the instructions of her 

principals on the sale of a new MH unit. 

Those instructions did not comply with 

the mobilehome escrow law (§18035 

H&S). Instead funds were released 

early and the buyer suffered damages. 

The Dealer fled. The AG filed suit 

against the escrow agent. The escrow 

agent paid the buyer’s damages and 

went out of business. That said, 

probably the greatest exposure 

to litigation for an escrow agent 

derives from civil litigation initiated by 

consumers or lenders, not government 

enforcement agencies. Therefore, 

it may be wise to have a discussion 

with your attorney prior to ‘accepting’ 

instructions that do not conform to the 

law. 

Q #9: For the protection of a Broker’s 

client, wouldn’t it be better if the Broker 

continued their involvement with the 

transaction until the close of escrow? 

A: At first blush this sounds good. 

But the fact is that Brokers probably 

know no more about HCD law than 

Dealers know about DRE law. This 

supports the notion that the only fair 

thing to do is to excuse the Broker 

from any further duty once an offer is 

accepted. The Broker gets a referral 

fee, which seems to imply the Broker 

has minimal exposure to a valid 

complaint. 

Q #10: What procedure should a 

Broker follow when an offer is to about 

to be made involving a Dealer co-op? 

A: You have a duty to disclose to 

your client that the pending offer 

involves a Dealer and if the offer 

is accepted, you will be required 

to excuse yourself from further 

participation in the progression of the 

transaction since the sale must be 

handled by the Dealer pursuant to HCD 

law. You may add that you will receive 

a referral fee. 

Q #11: Can someone who is duallicensed 

as a Dealer and a Broker 

cooperate with another Broker 

pursuant to DRE law instead of HCD 

law? 

A: Yes. Someone who is duallicensed 

is not required to use one 

license or the other. The forms and 

actions used by the dual-licensee 

dictate which license is in play. Hence 

it is possible that someone who is 

licensed as a Broker can cooperate 

pursuant to DRE law with someone 

who is dual-licensed.

Housing Statistics 

Page 24 

Caveat: 

During the first three months of this year 119 homes, the oldest of which was manufactured in 1997, were registered as new sales by an out-of-state 

retailer (park owner). It is highly probable that at least 101 of these homes were not sold in 2011. Consequently, December 2011 year-to-date registrations 

would be 1,598, down 13.6%.

Page 25 

Housing Statistics continued... 

Caveat: Not adjusted for prior period sales recorded by out-of-state retailer. 

Caveat: Not adjusted for prior period sales recorded by out-of-state retailer.

Page 26 

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