Most of the park residents I talk with simply want to pay a reasonable site rent and be left alone. They have adapted to their community (and it is a REAL community of neighbors, no matter whether the park is a high-end retirement community or, at the other extreme, really basic affordable housing.) They would like the utilities to work and reasonable maintenance, but, the bottom line, the residents in the park have chosen that park for whatever reason and are moving on with their daily lives.
However, as cities and towns expand, sometimes park owners decide that ‘their’ dirt is more valuable for some other use – an apartment complex, residential development, commercial building, whatever.
[Much of this Blog is from information taken from attorneys who advise their park owner clients about how to do a closure. I normally mention the sources of my material, but, in this case, I will not do so.]
So the owners decide to close the park.
No matter that park closures send a terrible message to the very consumer group the Manufactured Housing Industry is trying to convince that mobilehome living is great.
The industry is very (VERY) fractured. The manufacturers want to sell new homes. The vendors want to sell services and equipment. The consultants want to sell their advice on how wonderful things could be in a manufactured home, or in a mobilehome park.
But many park owners simply want to make a buck and don’t view the residents as anything except an impediment to this goal.
In California (and many other states), there are laws which apply to park closures. But in California, local government does NOT have the power to deny the closure. Only to impose ‘reasonable’ relocation mitigation measures.
The attorneys have provided ten (10) tips about park closures. [I provide editorial comments.]
1. The closer the space rents are to market, the easier to close the park. [I think they mean that if site rents are low (below the market), the more valuable the park as ‘affordable housing’ and the more difficult and expensive the mitigation requirements. The higher (above the market) the site rents, the more likely the resident group is ‘upscale’ and likely to have the resources and life experience to fight the closure.]
2. When home are selling for more [meaning, I think, higher than the owner thinks are ‘market’], the harder it is to close the park. [I think this means that the cost of relocation is more and the greater is the perceived loss of value to the homeowners.]
3. Do not rely on the fact that “your tenants like you” to count for much in the closure. [‘nough said]
4. Start early cultivating political connections in your city. [Meaning if you think you park is a candidate for closure, you and your neighbors better get your butts down to City Hall and keep tabs on everything, both with the elected officials AND the city staff. You have to make sure the city knows you are real people and a real community with value to the city.]
5. The longer your closure timeline is from the decision that you may close, to the point when you issue notices, the cheaper the process will be. [Meaning, I think, that the longer the timeline, the more everyone will get used to the closure idea.]
6. Solid residency documents save many thousands of dollars in the closure process. [I am not really sure what this means. It may be an attorney suggestion that the attorneys create lots of work produce (and fees) to smooth the process.]
7. Load up on ‘General Liability’ insurance before announcing a park closure. [I think they are anticipating lawsuits to fight the closure, and would like to have a ‘deep pocketed’ insurance company committed to pay the costs. Insurance companies have more money that park residents and owners, when they are not spending their own money, can be more zealous and tenacious about the closure.]
8. Be prepared to meet city staff half way in their demands. [This means, obviously, that you and your neighbors better be talking to city staff about the real costs of closure mitigation to counter the owners proposals.]
9. Review, and if necessary, change the mode of ownership of the mobilehome park. [I think this means that some forms of park ownership are more attractive for a closure.]
10. Disclose early – disclose often – be blunt and direct in disclosing the potential for future closure. [I think they are trying to get everyone used to the idea. Some residents will take the hint and move on their own, thereby saving the owner relocation funds.]
Bottom Line: You probably can’t prevent it but you can make it harder and perhaps get yourselves a better deal. To quote Betty Davis in “All about Eve” (1950), “Fasten your seat belts, it’s going to be a bumpy night.”
Good luck,
I will be in touch.
Deane
Deane Sargent and PMC Financial Services have been helping mobile home park resident groups and cooperatives to organize and find financing to buy their parks for over 20 years.