FOR IMMEDIATE RELEASE
AUGUST 31, 2011
RESIDENT GROUP USES FAILURE TO MAINTAIN LAWSUIT (FTM) IN NEGOTIATIONS TO PURCHASE MOBILEHOME PARK
The resident group at Blue Pacific Mobilehome Park, 220 Mar Vista Drive, Aptos, CA, is pleased to announce they have completed the purchase of their mobilehome park.
The 100-site mobilehome park was purchased for about $5.6 million through negotiations with the park owner, which resulted from a Failure To Maintain (FTM) lawsuit filed by approximately 50% of the residents.
The residents were concerned that deteriorating conditions in the park would enable the park owner to seek closure of Blue Pacific in order to construct high-end apartments and townhomes on the property. The Park is about ¼ mile from Seacliff State Beach on Monterey Bay.
After filing the FTM lawsuit, the owner and the resident group (Blue Pacific Mobile Home Owners’ Association – HOA) agreed to negotiate the purchase of the park in settlement of the lawsuit. The parties agreed to have Deane Sargent (PMC Financial Services), who had been working with the HOA for some years, act a middleman to negotiate the agreement and structure the purchase financing.
The HOA was set up as a California Mutual Benefit Corporation and anticipated funding the park purchase through sales of memberships to individual residents and a first mortgage loan from a commercial lender.
The first mortgage loan from the commercial lender was guaranteed by the US Department of Housing & Development (HUD). The individual plaintiffs in the FTM lawsuit (about 50% of the residents) received their memberships as settlement for their interest in the lawsuit. An additional 30% of the park (non-plaintiffs) purchased their memberships, some using loans from a private investor.
Funding at closing included payment of all costs, fees & third party reports, escrows for critical repairs, and deposits to the Replacement Reserve, Debt Service Reserve & Operating Reserve.
The attorneys for the FTM lawsuit were compensated outside of the purchase closing escrow.
For additional information, contact:
Will Juncosa, HOA President (firstname.lastname@example.org)
David Loop, resident group attorney (email@example.com)
Deane Sargent, organizational and financial consultant (firstname.lastname@example.org)
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.