Each method requires a project manager (either an Assistance Provider technical or Land Trust staff) to coordinate the transaction. Such organizations may not be available locally, do not have the skills specific, or may not be interested in getting involved with community projects of manufactured homes. Make a visit to https://meridianidhouses.com/ for the best results now.
- Limitations on the resale of houses (either or both with reference to the price of the resale of the house, that is, on eligible low-income buyers)they can worry residents and discourage them from making improvements to houses.
- Sufficient sources of community development funds may not be available.
- Very few (less than 20) cooperatives exist throughout the western states united, then there is much to learn about how to acquire the skills to use this method in a successful way.
Purchase Method
A Mutual Benefit Corporation is an entity established under state law as a nonprofit corporation (NFP) for the benefit of its members/shareholders. In the case of a community of manufactured homes, residents in the community form a corporation and those residents who choose to participate buy shares/memberships in the corporation. Residents who choose not to participate in remainas tenants with the same legal status as they had before the purchase by the residents.
With this purchase method, the NFP Corporation owns the community, and residentsParticipants, in turn, are the owners of the corporation. It is similar but not the same as a cooperative, which is also referred to as a Limited Heritage Cooperative (LEC).
This method is considered “Market Rate” due to the fact that most when not all of the funds for the purchase are obtained from conventional loans instead of subsidized loans (low-interest level) from sources such as state, local government, Affordable housing providers or technical assistance providers. This method is considered a reasonable purchase option because Market Rate funds can beget easily. Typical types of funds include a first mortgage loan made to the resident’s corporation, stock loans made to individual residents who need help for their action in the corporation, and capital of the residents who they can pay for their action in cash.
Characteristics
Community residents remain the owners of their homes, which are not affected by the purchase process. Normally 60% -80% of residents participate as members, the rest of the residents continue to rent the house lot from the corporation
The residents who participate are buying their share (share) in the corporation and its right to occupy your lot, according to a membership lease agreement to long term Members elect a Board of Directors of the corporation who oversee the community management
- The Board hires a management company to handle the activities of the day today
- The members together with the Council establish the rules of the community and how works
- The purchase process is relatively fast (the process can take less than 6months to complete it)
The funds that are provided have relatively few restrictions. The corporation is subject to state business law and any statehouse regulations manufactured apply to communities that are owned by investors.
In situations where state or local income control applies, members are no longer subject to rent control, while non-participating tenants are subject torent control. It is relatively easy to transfer a homeowner/shareholder to a resident.
