Preserving Mobile Home Parks

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2 Preserving Mobile Home Parks 2

3 What is Manufactured Housing? 3

4 Who lives in MH? 4

5 Dispelling myths 5

6 Ongoing challenges 6

7 Opportunities for action 7

8 Additional Resources CFED- Innovations in Manufactured Homes ROC USA Landlines Article: From Stigma to Housing Fix Moving Beyond the Mobile Myth 8

9 Promoting affordable home ownership through the creation of resident-owned, manufactured housing cooperatives September 29, 2016 Chelsea Catto (503) ext. 300

10 285,451 residents live in 139,379 manufactured homes in Oregon There are 1,078 manufactured housing parks with 62,554 spaces

11 CASA s Vision Manufactured housing park residents in Oregon achieve long-term security and build assets through the creation of resident-owned communities (ROCs). It feels great to be able to walk on this ground and say this is mine, it s mine for the rest of my life. - Elias Montemajor, Horizon Homeowners Coop

12 How Does it Work? Membership is limited to park residents - one membership per household Members must own, not rent, their homes Members control the monthly rent Members share equally in the decision-making The park is owned collectively by the cooperative The cooperative holds the mortgage and is responsible for paying debt service and operating expenses The elected Board of Directors manages the day-to-day operations of the cooperative

13 Resident Ownership Model RESIDENT ORGANIZING Formation of a non-profit cooperative corporation Election of an interim board of directors Development of corporate documents (interim bylaws, membership agreement, articles of incorporation, community rules) Board training and capacity building DEVELOPMENT/PARK PURCHASE Financial analysis Preparation and negotiation of Purchase and Sale Agreement Creation of preliminary budget Due diligence activities Identification of pre-development financing and permanent financing Application for funding Members vote on purchase site rent max amount Park purchase/closing Provision of ongoing technical assistance and trainings to the cooperative

14 Benefits to Homeowners Long-term security & stabilized lot rents Wealth-building through homeownership and asset appreciation Democratic control of park operations, community rules and park maintenance Health and safety improvements to park infrastructure Civic engagement Leadership skills development As the only resident-owned community in the area, we re proud of what we ve created. We believe that our park offers seniors who are looking for available mobile home spaces a unique opportunity to not only become a part of a community, but also have a voice in how it s operated and maintained. Dick Martin, Green Pastures Senior Coop

15 Criteria for a Successful Resident Purchase REQUIRED Willing seller & willing residents Available financing Purchase is affordable, as reflected in the required rent increase PREFERRED Ability to complete the deal in a reasonable amount of time (under 6 months) Mid-size to larger size park Low vacancy rate Few to no RVs Seller is able to benefit from the state capital gains tax exemption Few infrastructure improvement necessary (or significant grants available for capital improvements)

16 Critical MH Preservation Tools in Oregon Key legislation: Establishment of limited equity manufactured housing cooperatives Use of Oregon Affordable Housing Tax Credits Opportunity to purchase State Capital Gains Tax Exemption Payments to MH homeowners in case of park closures Financing partners and subsidy for resident purchases Operational support Grant funds for start-up ROC USA Network and Corporation for Enterprise Development

17 Financing Resources Needed for Manufactured Housing Cooperatives in Oregon Pre-development loans Permanent loans with and without tax credit subsidies First and second position financing Covers infrastructure improvements State, city or county subsidy Park income for ongoing operations (may require a rent increase).

18 Policy Tools for Preserving Manufactured Housing Establishing MH as an approved use in consolidated plans Adopting local tax or other financial incentives Designating set aside funds for park preservation Inclusion of MH in comprehensive plans Zoning for manufactured housing parks

19 Horizon Homeowners Cooperative McMinnville, OR $1.2 million purchase price + $550,000 in infrastructure improvements 30 spaces $58,333/space

20 Green Pastures Senior Cooperative Redmond, OR $1.4 million purchase price + $50,000 in infrastructure improvements 51 spaces $28,431/space

21 Saunders Creek Homeowners Cooperative Gold Beach, OR $900,000 purchase price + $380,000 in infrastructure improvements 43 spaces $29,767/space

22 Vida Lea Community Cooperative Leaburg, OR $1.275 million purchase price + $350,000 in infrastructure improvements 33 spaces $49,242/space

23 Clackamas River Community Cooperative Clackamas, OR $5 million purchase price + $117,000 in infrastructure improvements 76 spaces $67,328/space

24 West-Side Pines Cooperative Bend, OR $3.65 million purchase price + $63,000 in infrastructure improvements 71 spaces $52,295/space

25 Bella Vista Estates Cooperative Boardman, OR $3.15 purchase price + $118,000 in infrastructure improvements 127 spaces $25,732/space

26 Dexter Oaks Cooperative Dexter, OR $1.3 million purchase price + 16,000 in infrastructure improvements 39 spaces $33,743/space

27 Umpqua Ranch Cooperative Roseburg, OR $2.9 million purchase price + $2,000,000 in infrastructure improvements 110 spaces $44,545/space

28 Mobile Home Park Preservation Policy Boulder, Colorado Vista Village Mobile Home Park

29 Boulder, Colorado

30 Orienting to Boulder, Colorado Size: 25.8 square miles Population: 104,810 Housing Units: 44,725 Affordable Housing Goal: 10% Affordable Units: 3,319 (7.3%) Mobile Homes in Parks: 1,191 (2.6%) Median Home Value: $626,850

31 Mobile Home Parks MHPs: 4 parks, 1,191 homes Area II (nearby): 4 parks, 358 homes Established: 1950s to 1970s Pre-1976 Homes: 65%

32 Cooper Center Race Dot Map: Pockets of Diversity

33 Preservation Policy 7.08 Preservation and Development of Manufactured Housing Recognizing the importance of manufactured housing as an option for many households, the city and county will encourage the preservation of existing mobile home parks and the development of new manufactured home parks, including increasing opportunities for resident-owned parks. Whenever an existing mobile home park is found in a hazardous area, every reasonable effort will be made to reduce or eliminate the hazard, when feasible, or to help mitigate for the loss of housing through relocation of affected households.

34 Preservation Policy Mobile Home Park Land Use & Zoning Mobile Home Park Ordinance Park Purchase & Deed Restriction Key Affordable Housing Tool Vista Village Mobile Home Park

35 Preservation Practice: General 1991: Grants, weatherization & energy efficiency 1993: Mediation services 1996: Mobilizing for a Change; community organizing + park ownership+ legal issues 1998: Homeownership program for park purchase landlord tenant guide + home repair workshops 2015: Legal defense funding

36 Case Study: Mapleton MHP 1996: City purchased Mapleton Mobile Home Park ($3.5M) Goal: Flood improvements & Resident- Owned (still), Affordable Park Issues: financing purchase, financing infrastructure upgrades, park management Outcomes: Flood improvements completed, 120/135 lots deed restricted, resident ownership is a work-in-progress Ownership/management structure: nonprofit owned, resident owners association leases and governs park, contracts with management company

37 Case Study: Boulder Mobile Manor 1985: City tried to purchase; lacked financing 1997: Housing authority purchased Original Intent: Operate as rental, phase in homeownership Housing authority discovered homes were deteriorating, infrastructure failing 2011: Reopens as Read Oak Park, award winning LIHTC funded rental community

38 Preservation Practice: What s happening Now Ponderosa MHP: Disaster Resiliency Planning Grant (2015) Mobile Home Park Resiliency Design Workshop (upcoming Mobile Home Park Infrastructure Study (Summer 2016) State-level Advocacy (Fall 2016)

39 A Final Thought (from 2015 City Council Mtg) Boulder (5 homes for sale/recently sold) Home Price (range): $29,900 to $87,000 Lot Rents: Low $600s Malibu (6 homes for sale/recently sold) Home Price (range): $1.5 million to $3.0 million Lot Rents: $1,500s