Permanently Affordable Home Ownership The Mapleton Mobile Home Park Model Boulder, Colorado. Changes in the Wind- Manufactured Housing

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1 Permanently Affordable Home Ownership The Mapleton Mobile Home Park Model Boulder, Colorado Changes in the Wind- Manufactured Housing ATLANTA, GA February 21, 2007 Presenter: Aaron Miripol of Thistle Community Housing 1845 Folsom Street, Boulder, CO Objectives - Overview of the Mapleton community/acquisition - Relationship b/w Mapleton & Thistle s CLT - Financing: Bank Qualified Tax Exempt Bonds - Keeping the park perm. affordable - Digression on Modular - Trailer home Wrap Thistle

2 Mapleton Mobile Home Park Existing community with very desirable location in central Boulder, Colorado 14 acres on 2 parcels (market land value = $7 million) 135 homesites, with 130 homesites currently occupied with the vast majority (80%) pre HUD code homes. Purchased by the City of Boulder in 1997 to remove it from 100-year floodplain and maintain affordable housing. Resident group, Mapleton Home Association (MHA), very active since the mid 1990s. In 2000, MHA asked Thistle to work with them re: residents options to buy the park and voted to join Thistle CLT in January Thistle purchased Mapleton from the City in December 2004, after four years of negotiations.ouch! Thistle

3 MAPLETON & THISTLE GOALS Create permanently affordable housing Serve families earning very low incomes; the majority of homeowners make less than 30% AMI Complete infrastructure work for health & safety Resident oversight of management with long term goal to purchase park Nature of Relationship Mapleton Home Assoc. (Lessee) Signed 99-year renewable master land lease Assigned responsibility for debt payments & oversight of Park Management company, which acts as MHA s agent, handles daily operations Agent signs individual leases & affordability addendum w/ qualified buyers Approves individual improvements & home replacements (site plan) Will manage future infrastructure projects Thistle created an LLC (Lessor) LLC purchased Park from City of Boulder & secured bond financing LLC signed 99-year renewable land lease Board approves annual Park budget & significant variances Manages resales of homes on the affordable home sites (along with regular management co. process) Managing initial infrastructure rehab with resident input Manages funder compliance Thistle

4 BQ Financing Bank Qualified Tax Exempt Bonds Need to show that you as the Nonprofit are offsetting a government burden, per IRS Government BQ Bond Issuer: Boulder Housing Authority $3.74 million. US Bank: purchaser of the Bonds at a Rate of 4.55% for 17 years (first two years interest only). $7.8 million acquisition and renovation = $57,000 per home site. Goal is that lower, fixed interest rate maintains deeper affordability (i.e. lower space rents) and allows more rehab work to be done. First time BQ financing has been used to purchase and renovate a mobile home park. AFFORDABILITY Rent tiers 120 of the 135 home sites are permanently affordable Initial structure: 30% AMI 70 spaces 40% AMI 28 spaces 50% AMI 14 spaces 60% AMI 8 spaces Market up to 15 spaces. Rents: affordable rents range from $275 - $425/month; market is $480/month; Average rent is $340/month. Thistle

5 Mapleton community life on the streets Mapleton homes within the trees Thistle

6 LONG TERM AFFORDABILITY Resales When a home is sold: Affordability is passed on because the home is affordable to a buyer at a specified income and asset level* There is no explicit price cap Management company does initial screening, then CLT leads income and asset qualification of buyers* Thistle and MHA have options to purchase the homes if there are issues with resell. Create a local loan product for purchase and renovation of homes ($30K/$5K respectively) *excluding market rate spaces Infrastructure/Rehab Mapleton has a poorly installed private infrastructure that is over 50 years old and needs immediate replacement Two Phased infrastructure rehabs with the initial $2.8 million addressing health & safety issues including the replacement of water and sewer lines. The electrical system is insufficient for newer homes important for home replacement and filling vacant homesites Estimated total costs: $4.2 million All work is coordinated with the Mapleton Home Association Thistle

7 The Chester Street Story Turning 1 home into 2, an urban infill solar redevelopment Modular Duplex replaces 100 year old home Thistle took a home that was no longer structurally sound and deconstructed it and recycled the building materials. The empty lot was then redeveloped for two new modular solar homes. Thistle

8 Energy efficient upgrades to the 1,300 sq/ft modular homes include: solar panels on the roofs that power the water heater, energy saving appliances, and radiant heating, where the home is gradually warmed from beneath the floor. Over $10,000 in energy savings in 15+ years. These two new modular CLT homes (3 bdr. & 1.5 bath) sold for $145,000 each the homes appraised on market for $195,000! University of Colorado partners with MHA & Thistle CU Architecture students get real world experience taking an old single wide and creating a new 450 sq/ft home Mapleton Park gets a greenenergy efficient home & the community gets a model for future home replacement Thistle

9 Thistle