PARK CLOSURES / COMMUNITY PRESERVATION
Risk of Manufactured Home Park Closures
Manufactured homes located in parks provide a vital source of affordable housing as well as an opportunity for low- and moderate-income home ownership. However, residents are in a vulnerable situation since they own the roof over their heads, but only rent the land under their feet. Around the country, thousands of families are losing their homes due to the closure of manufactured housing communities. Owners of land-lease communities are increasingly seeking to maximize their profits by converting the use of the land to something other than a manufactured home community. These closures, however, often mean that the residents of the communities lose their homes, because their home cannot be moved due to significant moving costs, the fragile condition of some homes, shortage of available lots in many areas, or park policies that bar older model homes from being moved in.
Here’s a good article on things to consider as a resident when a manufactured home park is closing. Read the article from The Western Planner here.
Park Closure Policies and Relocation Compensation
There are several important polices related to community closures that a number of states have currently have and other states should be encouraged to adopt (learn more), including:
Right of First Refusal and Opportunity to Purchase
When residents only rent the land, they face a number of risks; not just closure, but needed park improvements not being made, unfair or inconsistently applied rules, capricious rent increases, and an inability to accumulate equity. As of 2020, 20 states have laws that encourage or require park owners to sell their communities to the home owners (learn more), including: California, Colorado, Connecticut, Delaware, Florida, Idaho, Maine, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. State laws include:
Resident and Nonprofit Owned Communities
In commercially-owned communities, the park owner controls the lot rent, the park rules, and the condition of the community – including roads, water, sewer, and other infrastructure. If you don’t like how the park is being run, often your only option is to move, which is often not possible due to the age or condition of your home, the lack of available lots, or the cost of moving. In resident-owned communities, homeowners form a non-profit called a cooperative. Each household is a member. Members own their homes individually and own and manage the community collectively. Members elect a board of directors, which appoints committees to carry out various tasks and manage the day-to-day operations. If you don’t like how the park is being run, you can get elected to the board and push for change.
Resident Owned Communities USA (ROC USA)
ROC USA was launched in 2008 by a group of national and regional nonprofits, including the New Hampshire Community Loan Fund, Prosperity Now, Capital Impact Partners, and NeighborWorks America. The ROC USA Network includes 12 regional nonprofits who work in 20 states that are the Certified Technical Assistance Providers (CTAPs), including CaliROC, Casa of Oregon, Northcountry Cooperative Foundation, and Pathstone Corporation. Learn more.
ROC Association
Membership in the ROC Association is free and automatic to the 280+ communities connected to the ROC USA Network. The ROC Association Directors are elected by the ROCs in their region to two-year terms. The directors also serve on the ROC USA Board of Directors. The Association was started by two ROC leaders, Natividad Seefeld of Park Plaza Cooperative in Fridley, MN and Lois Parris of Lakes Region Cooperative in Belmont, NH. In 2013, the Association elected its first Association Directors. In 2020, the ROC Association launched two ROC Association Committees: the Outreach & Education Committee and the Policy & Advocacy Committee. Learn more.
Manufactured homes located in parks provide a vital source of affordable housing as well as an opportunity for low- and moderate-income home ownership. However, residents are in a vulnerable situation since they own the roof over their heads, but only rent the land under their feet. Around the country, thousands of families are losing their homes due to the closure of manufactured housing communities. Owners of land-lease communities are increasingly seeking to maximize their profits by converting the use of the land to something other than a manufactured home community. These closures, however, often mean that the residents of the communities lose their homes, because their home cannot be moved due to significant moving costs, the fragile condition of some homes, shortage of available lots in many areas, or park policies that bar older model homes from being moved in.
Here’s a good article on things to consider as a resident when a manufactured home park is closing. Read the article from The Western Planner here.
Park Closure Policies and Relocation Compensation
There are several important polices related to community closures that a number of states have currently have and other states should be encouraged to adopt (learn more), including:
- Notice and Public Review - Community owners must provide a closure statement to a local agency, state agency and each resident household from 6 months to 2 years before the planned closing. The closure statement must state when the park is closing, list replacement housing in the area, provide estimates for moving homes, and identify any rights residents have related to a park closure. The local government must also hold a public hearing to determine the impact on the residents.
- Relocation Compensation - Community owners must provide reasonable compensation for either relocating a manufactured home, or, if it cannot be moved, buying out the home and paying the cost to demolish and dispose of the home. There are at least 15 states with either guaranteed relocation compensation, or compensation provided under certain circumstances, including Alaska, Arizona, Connecticut, Delaware, Florida, Maine, Massachusetts, Minnesota, Nevada, New Jersey, Oregon, Rhode Island, Vermont, Washington, and West Virginia.
Right of First Refusal and Opportunity to Purchase
When residents only rent the land, they face a number of risks; not just closure, but needed park improvements not being made, unfair or inconsistently applied rules, capricious rent increases, and an inability to accumulate equity. As of 2020, 20 states have laws that encourage or require park owners to sell their communities to the home owners (learn more), including: California, Colorado, Connecticut, Delaware, Florida, Idaho, Maine, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. State laws include:
- Right of First Refusal - A right of first refusal means that, if the residents can match the existing offer, they have the right to purchase the community. These statutes typically require the residents to meet the price, terms and conditions of the offer.
- Opportunity to Purchase - It requires the community owner provide notice of an intended sale, consider any offer made by the residents and negotiate in good faith with them.
- Other Policies - Some policies require only notice of an intended sale, without imposing any other obligation on the community owner. There are also at least 5 states that provide tax incentives to community owners to sell to home owners, including Montana, Oregon, Rhode Island, Vermont, and Washington.
Resident and Nonprofit Owned Communities
In commercially-owned communities, the park owner controls the lot rent, the park rules, and the condition of the community – including roads, water, sewer, and other infrastructure. If you don’t like how the park is being run, often your only option is to move, which is often not possible due to the age or condition of your home, the lack of available lots, or the cost of moving. In resident-owned communities, homeowners form a non-profit called a cooperative. Each household is a member. Members own their homes individually and own and manage the community collectively. Members elect a board of directors, which appoints committees to carry out various tasks and manage the day-to-day operations. If you don’t like how the park is being run, you can get elected to the board and push for change.
Resident Owned Communities USA (ROC USA)
ROC USA was launched in 2008 by a group of national and regional nonprofits, including the New Hampshire Community Loan Fund, Prosperity Now, Capital Impact Partners, and NeighborWorks America. The ROC USA Network includes 12 regional nonprofits who work in 20 states that are the Certified Technical Assistance Providers (CTAPs), including CaliROC, Casa of Oregon, Northcountry Cooperative Foundation, and Pathstone Corporation. Learn more.
ROC Association
Membership in the ROC Association is free and automatic to the 280+ communities connected to the ROC USA Network. The ROC Association Directors are elected by the ROCs in their region to two-year terms. The directors also serve on the ROC USA Board of Directors. The Association was started by two ROC leaders, Natividad Seefeld of Park Plaza Cooperative in Fridley, MN and Lois Parris of Lakes Region Cooperative in Belmont, NH. In 2013, the Association elected its first Association Directors. In 2020, the ROC Association launched two ROC Association Committees: the Outreach & Education Committee and the Policy & Advocacy Committee. Learn more.
