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Manufactured home park residents team up to buy land

When Anchor Mobile Home Park residents in Gold Beach, Oregon heard that their community was up for sale, they were understandably concerned about the future of their homes. A new owner could have raised rents or even close the park. Older homes that could no longer be moved would have had to be abandoned and the homeowner would have lost years of investment.

"The land at the park was up for sale, and residents started to worry about someone coming in and jacking up our rent. So the idea for homeowners in the park to purchase the land to be in control of the park started to circulate," commented resident Vivian Downs.

With assistance from Rural Community Assistance Corporation (RCAC) and Community and Shelter Assistance Corporation of Oregon (CASA of Oregon) the residents formed Saunders Creek Home Owners’ Cooperative (SCHC). The resident-owned cooperative obtained financing to purchase and make improvements to the park. On April 26, the community officially became a resident-owned cooperative and the sale was complete.

“We actually did it!” said David Hanna, president of the resident-controlled board. “With help from RCAC and CASA the dream of owning our community became a reality.”

Residents now have control over rents and park rules. In addition, they have peace of mind and assurance that the park will not be converted to other uses and will remain an affordable housing option.

In early 2010, RCAC learned that the park owner was looking to sell. At that time, RCAC and CASA approached the residents with a plan to help them purchase their community. At first residents were skeptical about their ability to obtain financing to accomplish such a task. RCAC explained that by forming a resident-owned cooperative the residents could apply for financing from RCAC’s Loan Fund and other financial institutions. After the initial meeting, residents enthusiastically voted to proceed with organizing the cooperative and elected an interim board of directors.

RCAC worked with the new board and CASA of Oregon to negotiate a purchase price with the park owner, and to work through all the pre-purchase due diligence such as surveys, engineering studies and financing arrangements. The purchase price and additional funds to make park improvements totaled approximately $1.3 million. Oregon Housing and Community Services department through its Manufactured Dwelling Park Preservation Program provided a $600,000 grant, the largest of its kind ever awarded in the state. CASA provided a $500,000 first position loan and RCAC provided a $175,096 second position loan. CASA of Oregon will provide on-going post purchase technical assistance and oversight of the cooperative’s operations, and deliver regular capacity building training to the board of directors.

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