A 30 Question Test . . .

"Manufactured Housing Community development is not just about constructing home sites.  It's about understanding market conditions, adapting the project to the market, and creating a viable marketing plan to fill/sell home sites to target home buyers, using the developer's management and financial resources." . . .  Edward Hicks, President, Consultants Resource Group, Inc., a national community development consulting firm.

He adds: "If you are thinking about building a manufactured housing community, answer the following 30 basic questions first, and state the reasons!  If you can't, call me and I will give you my answers or tell you the best way to get them"

1.     Should I build a sub-division or land lease community (rental park)?      

2.    Should it be an age restricted community or should it be open to families with children?

 3.     Is it feasible to have separate adult sections and a family sections?

 4.     How many home sites should be built?

 5.     What size and orientation to the street should the home sites be?

 6.     Should homes be limited to multi-section homes?

 7.     What minimum home standards should be required, siding, roof materials, roof pitch, parking structure, foundation/siting system, etc.

8.      What kind of required parking? Driveway only, covered carports, garages, etc.

9.      Should there be a separate RV storage area

10.    Are additional off home-site parking for visitors and extra vehicles needed?

11.    What amenities should be built?  Community center, pool, exercise facilities, PAR track, shuffleboard, tennis, golf, putting green, walking trail, lake, pottery kiln, lapidary, music room, Internet Lab, WI-FI Service, Internet security systems, controlled access gate, etc.

12.   Should there be two community centers, one for the adults, the other for families?

13.  What should my marketing budget be?

14.   What residents services such as: lawn maintenance, snow plowing, and other services be? 

15.   Should there be an exclusive in-community sales center, or should local retailers be allowed to sell and install homes also?

16.    How much profit can I expect to make from sales of homes in an exclusive in-community sales center?

17.  Does the retailer or developer provide the electrical pedestal and home utility connections, driveways, etc. to homes as they are installed?

18.   What kind of insurance/financial requirements should be required for retailer/installers?

19.   For how much should the sites be leased for in a land lease community

20.  What utilities or services should be included with the lease payment?

21.  How much should the home sites sell for in a sub-division?

22.  If a sub-division, what utilities should be provided with the home site?

23.  What should the lease term(s)  be in a land lease community?

24.    What should the guidelines for living (rules & regulations) be in a land lease community?

25.  Should a home owners association be formed in a sub-division?

26.    How much should the home owners association dues be in a sub-division, and how can it be assured that fees will continue to be collected, and the association operated, once the developer has pulled out?

27.   What should the deed restrictions be in a sub-division?

28.    How much equity capital (cash investment) will be needed?

29.    How much debt capital (development financing) will be needed, and how can I estimate the pre-tax cash flows, and IRR (Internal Rate of Return)?

30.    Which manufacturer's homes should be used in the in-community sales center.

Mr. Hicks adds: these questions may be only accurately answered once: you have clearly understood your financial expectations and resources,  taken an objective look at the market place, then devised a (mini) business plan, evaluated the plan using an economic model , then compared the results with your expectations."