The Reporter

March - April 2024

“Our greatest weakness lies in giving up.

The most certain way to succeed is always to try just one more time”

-- Thomas Edison --

THA staff, Board of Directors, lobbyists and legal, monitored legislation from the opening day in January, until closing yesterday (April 25th). While THA did not introduce legislation this year, and no severe predatory legislation was introduced against the industry, several key pieces of legislation did affect various divisions of our members and comments were submitted on their behalf. Favorable amendments resulted from those comments or the legislative items stalled in committee and never made it further for discussion by lawmakers. A full report of session will be submitted to members at the Annual Member's Meeting in June.

The 114th General Assembly will convene at noon (CST) on Tuesday, January 14, 2025.

It is important to note this is an election year. All 99 House seats will be up for election.

• In the Senate: 
• 9 of 13 Republicans up for re-election this year face primary contests.
• 1 Democrat has a primary opponent.

• In the House:
• 16 incumbents drew no opposition in either the primary or general election.
• 6 members have decided to retire or not run for their seat again. 
• 17 Republicans have a primary opponent. 
• 10 Democrats have a primary opponent.   

Do your due diligence when researching your candidate of choice. Please select candidates who are industry-friendly and take the opportunity to attend town hall meetings or local meet-n-greets with your area candidates. Ask their opinions and knowledge of the factory-built industry. Ask if they would support affordable housing in their districts and ask if they would support zoning laws that are more friendly to the factory-built industry.

Housing is a bi-partisan issue!

On April 24th, the Federal District Court for the Western District of Texas heard oral argument on the Department of Energy’s (DOE) motion to dismiss the complaint filed by MHI and the Texas Association's (TMHA) challenging the DOE’s May 2022 energy efficiency standards.

After both sides presented argument, the District Court judge indicated that he would likely deny in substantial part the DOE’s motion to dismiss, thereby allowing MHI and THMA’s challenge to the energy standards to move forward. The District Court judge also stated that he would likely grant the DOE’s motion to the extent MHI and THMA are currently challenging the Enforcement Notice of Proposed Rulemaking.

However, the Court stated that MHI and THMA could amend their Complaint to address enforcement rulemaking once it becomes final. The District Court stated that a formal order on the DOE’s motion would be forthcoming shortly. This likely ruling is a positive step forward in MHI and THMA’s challenge to the DOE’s energy standards. The next step will involve the DOE’s compiling of the administrative record as we advance toward a decision on the merits of the challenge.

On December 18, 2023, the Department of Energy (DOE) issued its final rule on non-weatherized gas furnaces and gas furnaces used in manufactured homes. The final rule requires both non-weatherized gas furnaces and gas furnaces used in manufactured homes to meet 95 AFUE with an effective date of February 16, 2024, and compliance with the amended standards required on and after December 18, 2028.

The rule threatens to increase the cost of new housing and the costs to current homeowners because existing furnaces that do not meet the final rule standard cannot be repaired if they have a problem. Instead, these furnaces must be replaced with a new furnace that meets the higher standard. Thus, this legislation increases costs by limiting homeowners to a more expensive type of furnace and by failing to recognize the added home construction costs associated with homeowners installing a new type of furnace in their homes.

In response to the final rule, the American Gas Association and American Public Gas Association have issued a legal challenge to this rule. MHI, along with other members of a housing coalition, have filed an amicus brief highlighting the problems mentioned above to support homeowners and future homeowners. 

The Department of Housing and Urban Development’s (HUD) Office of Environment and Energy (OEE) published a final rule revising HUD’s regulations governing floodplain management. The rule also revises HUD’s Minimum Property Standards for one-to-four-unit housing under HUD's mortgage insurance and low-rent public housing programs to require that the lowest floor in newly constructed structures located within the 1-percent-annual-chance (100-year) floodplain be built at least 2 feet above the base flood elevation (BFE) as determined by best available information. HUD will host two webinars on the final rule in the coming weeks.

The industry had previously urged HUD to reconsider the BFE requirements so that the standards aligned with standards for site-built homes. But HUD did not adopt this recommendation and instead upheld the requirement that manufactured homes be measured from the bottom of the I-beam as opposed to the bottom of the lowest floor like that in site-built homes. 

This week, the Department of Labor (DOL) issued its final rule altering the overtime regulations under the Fair Labor Standards Act (FLSA). The rule includes increases in the minimum threshold salaries, which employers use to assess an employee’s exemption under existing FLSA overtime pay requirements. The rule includes two-tiered increases to the minimum salary threshold and the highly compensated employees (HCE) threshold. The final rule also allows for automatic updates to both thresholds every three years.

The minimum salary threshold will be increased to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025.  This represents over a 60% increase over the current threshold of $35,568.  The Department clarified that the first increase updates the minimum salary threshold using the DOL’s current methodology, which was used in the 2019 Trump-era overtime rulemaking to set the current standard. The second increase then implements the DOL’s new preferred methodology, which sets the minimum salary threshold to the 35th percentile of weekly earnings of full-time salaried workers in the lowest wage Census region.  The HCE threshold will be raised to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025 — a 41% increase from the current threshold of $107,432. The first threshold is based on the current methodology, while the second threshold is set to the 85th percentile for full time salaried workers nationally.

This rule has many unintended consequences. The overtime rule would have a dramatic negative impact on businesses, nonprofits, colleges and universities, states, cities, towns, and public schools as well as the workers they employ and the consumers they serve. The rule reclassifies millions of employees from salaried to hourly, meaning employees may lose access to critical benefits, their hard-fought status in the workplace, opportunities for career advancement, flexible work arrangements, and, potentially, their jobs entirely.  Entry level workers will disproportionally bear these consequences, particularly those from rural and economically struggling areas or those graduating with degrees that do not traditionally command high salaries.

There is currently legislation which has been introduced in the House of Representatives by Rep. Burlison (MO-7) (H.R. 7367), which seeks to prevent the DOL from implementing their new overtime rule. In addition to the house bill, employer organizations are considering litigation to challenge the rule.

The Federal Communications Commission (FCC) recently proposed to eliminate or severely restrict bulk billing arrangements in multi-dwelling units (MDUs). With the ever-increasing importance of internet connectivity in people’s lives, the industry joined a coalition letter to the FCC to explain the dangers and drawbacks of the proposal that may ultimately result in a larger gap in digital literacy and access for the most vulnerable populations.

The elimination or restriction of bulk billing agreements for internet service would limit housing providers’ ability to negotiate favorable terms with internet service providers (ISPs) and managed service providers (MSPs), leading to higher internet costs for residents. Bulk billing agreements for internet service have played a crucial role in ensuring that residents in communities can affordably connect to the online world.

2024 THA Annual Member’s Meeting

"Make Every Connection Matter"

June 9 - 11, 2024

Dollywood's HeartSong Lodge & Resort

1210 Dollywood Resorts Blvd

Pigeon Forge, TN 37863

Manufactured Housing will take center stage in Washington, D.C. during Homeownership Month in June.

Manufactured homes will be on the National Mall June 7th-9th as part of the U.S. Department of Housing and Urban Development (HUD)'s Innovative Housing Showcase.

The Manufactured Housing Institute (MHI) will support the event as a sponsor, and UMH Properties, Inc., is coordinating with CAVCO and Champion Homes to display homes on the National Mall as a part of this event. All three of these companies are THA Members and have representatives who currently sit on the THA Board of Directors.

On March 28th, THA distributed an important message to both THA members and non-members, relative to a new and improved Installation Verification Report (Inspection Set-Up Report), as well as a new required form for Certified Employees/Individuals to complete when obtaining credentials for the first time and when renewing credentials on an annual basis.

Also, a guidance memorandum was issued to Retailers and Installers on reporting homes in a timely manner on the State's Weekly Report Form, as is required by state law. If you missed the details of that notice, please click below for the details.

The April 2024 Housing and Mortgage Outlook released last week by Freddie Mac discusses market conditions impacting the housing and mortgage industry. The findings reinforce the important role and potential of manufactured homes. Consumers are looking for more housing options and cannot find existing homes that fit their budget. Financial strain is increasing, as seen in credit card and auto loan defaults, which will make it more difficult for potential homebuyers to achieve homeownership. 

Following the release of HUD’s FY 24 Low-Income Housing Tax Credit (LIHTC) Income Limits determinations on April 1, the industry joined a coalition of housing trade associations objecting to the updates. The changes can decrease the number of tenants who qualify for LIHTC-funded and other federally-supported housing. While the change in the income limit calculation is not rent regulation in the traditional sense, it limits the ability of LIHTC housing providers to recover costs through rent in a high-cost environment – which many see as a distinction without a difference.

Research has shown that rent caps create economic and racial inequality in communities, limit the supply of affordable housing and exacerbate the very problem it purports to solve by causing rents to increase. At a time when affordable housing is a pressing need across the country, limiting the effectiveness of LIHTC could damage the nation’s most successful program to create affordable housing. 

THA Association Website:      https://tnmha.org/

Go to THA’s main website for the latest industry news, show dates, legislative action items, licensing educational news, scholarship information, member listings, PAC updates and so much more! There is no log in or password needed for this site!

THA Educational Website: https://education.tnmha.org/

This is the direct link to the educational platform where courses are available for initial licensing/certification and continuing education! Please check the Association website (tnmha.org) throughout the year for special announcements, field updates, and yearend deadlines. You must have a log in and password for your educational account, but not the Association website.

THA Consumer Website: https://www.tennesseemanufacturedhomes.com/

This is a consumer-facing website which allows consumers to tour homes and send messages directly to THA members for home quotes, community inquiries, inquire about financing or reach one of our service/suppliers. You must be a THA member to have your business listed on this site.

Follow us on social media!

https://www.facebook.com/tnmha.org

https://www.instagram.com/tennesseemha/

https://www.linkedin.com/company/tennessee-housing-association/

https://www.youtube.com/@tennesseemha

Download the graphics and videos from from your e-mails!

If you missed them, go back and search the dates or the subject lines with these titles...

March dated 3/7/2024 -

"Bring The Beauty of Spring Indoors"

April dated 4/10/2024 -

"Grow Your Family in a Factory Built Home"

Use these links to make changes or additions to your TennesseeManufacturedHomes.com listing.

Pick your course. Pay online. Access Online.

Print your certificate of completion right from your dashboard!

The educational portal opened on January 5th and will close on December 6th, 2024.

Discounts are available for THA member companies ONLY!

(Email Office@tnmha.org for your member discount coupon, prior to purchase!)

Regions #3 and #5 will soon have full time inspectors. While training has already begun, the State is onboarding the inspectors now through the process of assigning vehicles, laptops, and cellphones. As soon as THA has all of the contact information for each of the new inspectors we will pass that along.