OK gang, we last left our discussion where the City Fathers were waiting expectantly for the resident group to present them with an ACQUISITION PLAN that, as far as the City Fathers are concerned, is NOT political suicide.
In order for the City Fathers to leap into the great eminent domain unknown, the City Fathers must know that there is a viable ACQUISITION PLAN, and an EXIT STRATEGY to get the City out of the deal, and get the resident group into the deal. Your group has the present them with the PLAN.
The usual next step in the political process of eminent domain is convincing the City Fathers that it is in their interest to exercise their powers, and that the likely outcome will be positive and beneficial.
The basic political problem for your resident group is that you have to convince the City Fathers that they should take a huge political risk for your benefit, with lots of unknown factors and only vague future benefit to the City Fathers.
There has been a lot of discussion recently among MH park residents about the use of eminent domain to force the park owner to sell the park to the resident group.
Fannie Mae is probably the largest lender for manufactured home parks in American
today. You might think this is good, since Fannie Mae was created by Congress to facilitate the affordable housing loan market, and, you probably think, foolishly, that as a resident group seeking to refinance your resident owned park, Fannie Mae would be a great source.
Recently I visited with the resident refinancing committee for a park on the central California coast. The committee is planning for the refinance of the first mortgage debt they used to purchase the park about seven years ago, as a Mutual Benefit Corporation (MBC). They have about three years before they need to pay off … Read more
I am occasionally asked, “Why can’t my resident group get tax-exempt bond financing to purchase our park?” Resident groups leaders are referring to the fact that commercial funding for resident groups trying to buy their park is hard to come by. But so-called Non-Profit Corporations (NPC) can get local government sponsored tax-exempt bond money to … Read more
I often get asked by resident groups how much their park is worth, i.e., what are they going to have to pay to buy it. I don’t think there is ‘one’ value for a piece of real estate, such as a mobile home park. Rather there are several values: Value #1 – Owner Value, which … Read more
There is a small (50 or so homesites) low-income park in suburban San Diego, California. The resident group purchased the park about 10 years ago using a commercial real estate loan, a second mortgage loan from the local municipal government and some resident equity. The resident group operated the park, more or less successfully, for … Read more