Preview:
This story is the first in a series on manufactured housing and solutions to help mitigate threats facing mobile home residents, from private equity ownership to climate change.
Four years ago, Valeria Steele’s West Virginia mobile home park was purchased by Homes of America, a subsidiary of well-known “vulture fund” Alden Global Capital. The private equity giant has become infamous for buying distressed newspapers, cutting staff, offloading assets and loading them with debt.
“They don’t make any attempt to sell them,” Steele says. “They don’t make any attempt to repair them. And that’s the norm among a lot of their properties.”
Sure...
Our thoughts on this story:
So clearly the folks at MHAction (the radical “free rent” non-profit) has turned their attention to West Virginia and are hoping that an article in NextCity.org (a wokester on-line paper with only 45,000 subscribers) will entice other publications to pump up their fictional narrative that “private equity groups” are now creating “health hazards” by buying up dilapidated trailer parks and bringing them back to life. The only problem is that none of this tale makes any sense. Private equity groups spend big money in the attempt to hit a 20% IRR, which necessitates retention of existing customers, attraction of new customers, enhancement of the property condition to meet lender requirements, and running what was formerly a disorganized mess under mom-and-pop in a business-like manner. I have never seen – in 30 years – a single property that was worse off under a new private equity group owner than it was under mom-and-pop. The narrative that this writer advances that a private equity group would deliberately buy a property to run it into the ground and go bankrupt is absolutely absurd. All this is about, given the players involved, is an attempt to manipulate the West Virginia government into enacting rent control and tenant first-option on sale provisions. Unfortunately for MHAction and NextCity.org, West Virginia currently has a Republican trifecta, meaning the Republican party controls the governorship, the state senate, and the state house – so these wokesters are completely wasting their time.

