PECAN COMMUNITY ASSOCIATION REFINANCES MH PARK
The residents and Board of Pecan Community Association (PCA), El Cajon, Ca, are pleased to announce they have completed the refinancing of their resident-owned manufactured home park.
Pecan Park, a 128-site MH community, was purchased about 2001 by the resident group in a complex transaction involving a HUD first mortgage, a community development second mortgage, a third mortgage from the State of California (MPROP), and a fourth mortgage from San Diego County (MOAP). Both the MPROP and the MOAP loans were accrual loans, meaning that no payments were made for either principal or interest. However, the terms of both those loans required a ‘balloon’ payment of all the principal and interest in a few years.
The PCA team did an outstanding job, and included the PCA Board, lead by Danny Halligan (President), the management company (Debra Dailey, Castle Breckenridge Management), Dave Loop (transaction attorney), and advisor Dan Johnson, who was involved in the original purchase and financing.
The new loan, financed by a commercial lender and guaranteed by Fannie Mae, was for $6.055 million, with a fixed rate (a little over 4%), and 20-year full amortization. The loan paid off all the existing debt, funded a debt service escrow, paid all the costs and fees, and provided over $700,000 for PCA reserves for park upgrades and future infrastructure repairs. The new loan actually lowered PCA’s monthly debt service payments.
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.