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Residents of the Hidden Circle Mobile Home Park in Jay purchased its manufactured home community last week for $1 million, ensuring the land beneath 31 homes in Jay can remain locally owned and affordable for years to come.
“It hasn’t been an easy process, but we never gave up,” said Travis, a resident of Hidden Circle Mobile Home Park and president of the cooperative’s volunteer board. “We had to purchase the park because the alternative could be worse. Someone could come in here and hike up the rents and eventually push people out of their homes. Now, people can feel financially safe and safe in their homes.”
The Hidden Circle residents...
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I hope the celebration is fun because the reality the next day – for any tenant-owned park – is that the rent has to go up by a huge amount to cover the new debt service and then, in a few years when the cobbled-together note comes due, the park will go back on the market and sold to a conventional buyer. The late Charlie Munger would call these deals “rat poison” and he’d be 100% correct. They never work out for the long term.