Mobile Home Park News Briefing

PLEASE GIVE IT UP, BARBARA! Nobody is buying any of this nonsense. Look, obviously there are cash-flow reasons for moving into the Malibu mobile home park vs. the stick-built homes that cost ten times more (Pam Anderson and Hillary Duff have done the same thing when their careers headed south) but it’s not because it was a financially genius investment opportunity. 

Residents in a mobile home park are still concerned that the water they use in their daily lives is not safe despite promising results from the Ohio Environmental Protection Agency. Just 13 days ago, the Ohio EPA inspected the water at the Arrowhead Lake Mobile Home Park in Swanton. Results of the inspection show that there was no bacteria in the water but a residents tells 13 Action News the water is still questionable.

Another case of residents knowing more than the experts. Sure, I’d take the word of a trailer park resident over the Ohio Environmental Protection Agency – wouldn’t you? What kind of idiot news station would run this stuff?

How do they find people to own businesses in California? I would go nuts if I had to deal with B.S. like this. They can’t charge enough in lot rents to make this compelling.

This is one of the dumbest news stories floating around out there. This rent increase was formally approved by the Boad of Rent Control. Now the residents are claiming they know better than the Rent Control Board on what rents should be. That’s not how the law works. There is a legal methodology to life and you can’t later try to relitigate them. It’s like a 49ers fan trying to reopen the Super Bowl days later because the refs made a bad call. The Rent Control Board approved the increase and now you move on. Period.

There are two sides to every story, but the modern media only provides one. Personally, this story sounds pretty fishy (“the owner told them to go to the bathroom and pour it in the yard”) but it would not be the first time a television crew failed to fact-check in their rush to fill dead time on the news.

I’m not sure why the residents thought this park was a future development site – just look at the map for evidence – but if they want to conspire with non-profits to buy something then why not? I hope they have a plan on that 2-year debt, however, as it will be coming due right at the peak of the “commercial real estate apocalypse” when $2 trillion of worthless office building and shopping mall loans comes due (they probably should have used an advisor from the real world when structuring the deal and not an academic). If they ultimately default on the loan two years from now, then they would have been much better off with a professional investor that would never have agreed to those loan terms.

I’m sorry but I do not believe for one second that any park owner would block residents from having air conditioning. In fact, the article cites not one actual example of this, only the theoretical concept that the reason that around 140 people per year die of heat stroke in mobile homes in Arizona must be because evil park owners won’t let them install A/C. The truth is more likely that the tenant does not want to spend the money, or their home does not have big enough wiring to handle the load of the A/C and they then seal their own fate.  But that simple reasoning is not part of the new U.S. “victim mentality” that declares that nobody is actually accountable for anything they do and, instead, it’s always the landlord’s fault.

“The puzzle is why there’s so little (manufactured housing) being shipped when it’s a much better product than it used to be,” said Laurie Goodman, an Urban Institute fellow.

Here’s the reason they’re not selling more new mobile homes:

1. The prices are too high.
2. Nobody has put together financing programs that consumers can qualify for without park owners having to participate in the default process.
3. The outside of the homes are not appealing to the eye.
4. The HUD installation guidelines add $10,000 to $20,000 to the already too high pricing.

Solve those issues and you might sell more homes. Until then, forget it.

20% is simply not enough discount for a consumer to choose a modular home over a stick-built home. It would have to be more like 50% off to get any traction. Every time I go to the annual mobile home show and walk these $150,000 modular homes I think how crazy it is for manufacturers to think that those are going to sell when you can buy a stick-built – without the stigma – for nearly the same price. I must be correct because all of this misplaced “CrossMod” excitement has amounted to nearly nothing in actual sales.

I would think the first order of business to stop the negative stigma is to quit calling them “manufactured homes”. NOBODY wants to live in a “manufactured” home. Everyone wants to live in a “custom” home that does not come out of a factory like a widget. Ferrari became famous by building each car by hand, one at a time. Why brand your product as something that is mass produced by using the name “manufactured”? That has always seemed idiotic to me.

Throughout the book’s chapters, Hormel shows how rural working-class people are immiserated by the structures of capitalism, particularly global “campaigns of privatization and deregulation”.

Thank goodness the “free rent movement” gang has shown up again in the news this week with their endless allegations that capitalism is inherently evil. Of course, the problem is that the only way that housing gets built is capitalists in search of profit. I haven’t seen too many woke socialists building much of anything in America – just criticizing those who actually invest and construct things that they then live in and complain about.

Yuma County Supervisors say the park has multiple code violations they have not remedied. “They need to get them out, they need to collect rent from people who have contracted to pay rent in order to fix the park," stated Jeremy Claridge, representing Bann Mobile Home Park. Lawyer Jeremy Claridge representing Bann Mobile Home Park has started the eviction process for nine tenants, including Sean who has been living in the park for about two years.

Welcome to the new America. A property owner is simply trying to evict tenants who have not paid rent (some for years now) and the city inspectors are colluding to derail that because “gosh darn it, it’s so much fun to stick it to the evil landlord”. What has happened to our country?

It's been an ongoing legal battle, as they fought to stay. But the plan according to property owner and non-profit Western Reserve Land Conservancy is to ultimately expand it into the Cleveland Metroparks in the near future.

I’ve been following this story for a while now, and it’s interesting how private owners can’t close a park to develop it into something else without the media getting out flaming torches and pitchforks while a non-profit can seemingly do anything they want as long as they attach some B.S. reasoning to it. In this case the Cleveland park system suddenly needs this lousy chunk of grass to promote the healthy outdoor experiences of nearby residents (as opposed to wanting to get the eyesore out of the city). You know, private owners could make up similar nonsense but they don’t because they think it’s so stupid that nobody would believe it. I guess that to shut a park down today the key is to say that you are “working to reduce America’s carbon footprint and restore the natural habitat for birds and small animals”.

Becoming a resident-owned community gives owners more control over their future, advocates said. “This allows them to have some decision making power to secure their housing in the future,” said county grants administrator Heidi West. “It's exciting they'll have control over where they live.”

This non-profit paid $90,000 per lot to “give the residents greater control over where they live”. Well, they certainly have more control now I guess, and they will pay for it with giant rent increases as loading that much debt on the property – coupled with the reduced collections and lack of cost containment that resident-owned communities provide – will make those rents skyrocket. I can’t wait to see what the articles say about this deal a couple years from now. Given that these non-profits never do correct due diligence I am willing to bet that this owner is laughing all the way to the bank.

So the non-profit is buying a 19 space park for $1.5 million? That’s around $80,000 per space. The seller had no known intention of shutting the park down, but the non-profit was adamant that they had to buy the park to save it from the wrecking ball. Here’s a quick fact-check for these non-profits: nobody is going to pay $80,000 a space for a park in Belgrade, Montana to shut it down. Basically the seller is a lucky guy because the non-profit probably overpaid and did zero due diligence, as they were simply obsessed with a public relations opportunity for more fundraising. They bought this park with a two-year interim note. I can’t wait to see how this thing appraises two years from now and how much more money they have to dump in just to get it into permanent financing.

What goofball judge would not agree with this common sense?

Harmony and their attorneys have said they are closing down the park and going out of business. They say they are not trying to repurpose the property, which would require government approval. They say that distinction is crucial and would mean the city and court have no authority to prevent a park closure, the company argued in a written filing submitted on Friday. “The government cannot stop someone from going out of business,” the argument reads. “The government may impose conditions and require a permit when the owner wishes to redevelop the park into something else.” 

But the same state that brought you the O.J. verdict may hold the judge just goofy enough to rule that the government can force a business to stay open indefinitely when it wants to close.  I doubt it will withstand an appeal to a higher court. However, if they rule that no business can close without government approval then I hope the government will force all Steak & Shakes to remain open as they are a great late-night stop when you’re out driving parks.

Price said this bill doesn’t require landowners to sell their property to mobile home park associations or stop any sales, it only gives residents a chance to make their own offer to preserve low-cost housing options in Idaho. She said this is helpful because often mobile home park owners sell these properties privately, so there is no notification to residents when it is posted on the MLS. “The whole idea behind this is to prompt the land owner to take into consideration the association and their wishes,” Price said. “It’s just adding language to try to get the land owner to participate in the association’s wish to purchase the land.”

We have sold several parks to the residents over the years. However, let’s get serious on how that works. The residents have to organize into an association with formal officers, then vote to buy the park, then conduct due diligence, then find a non-profit group to work on the project, then find another non-profit that will personally guaranty the loan, then have a final vote by all residents to more forward and, if successful, then put the whole thing together with attorneys and get it closed. The total elapsed time for all of the above is six to twelve months. Those type of deals only get done with the endless tolerance and patience of the seller. There’s no way that any resident group will ever be able to match the speed of a normal buyer, who typically closes in around 90 days.

The owner gave the residents 15 days notice to try to buy the property. Over a month later they still had never made a formal offer for the park. So the owner sold to a regular buyer. Now the residents are enraged he never gave them a shot at buying it. This is the fallacy of these “resident first option” concepts, in which there is this false pretense that park residents can somehow magically pony up millions of dollars. In the entire United States there is something like ten to twenty of these “tenant buying the park” deals consummated – that’s it. To pretend that this concept has any real chance of success is statistically absurd. Why not also extend the first option to extraterrestrials by beaming the offer into outer space – because that’s about as likely to occur.

When you don’t raise rents to market levels you can’t inject capital back into the property and instead tear it down and convert it into apartments at rents five times higher.

And, of course, here’s the ever-predictable “residents owning their own parks is the solution to evil landlords pricing them out of buying food” articles, which is timed to come out exactly in tandem with the three articles above. Of course, what’s left out of these articles is that lot rent goes up just as fast – or faster – when the tenants own the parks. But nobody ever mentions that.

OK, now we have three “free rent movement” articles in a row. All you need is the first sentence to get the picture:

People living in a community tailored to seniors say they moved there because it was affordable. Now, they’re staring down a 40% rent hike.

In this case, it’s revealed later in the article that the rent has gone up only $200 per month. That’s less than these residents’ grocery bill increases and gas increases. But apparently only the rent increase matters and is making their life untenable NOT each and every other elevated cost they face every day.

Do you think there’s a possibility that all these publications have decided to fire off these nearly identical articles at the same time? You bet they did. It’s certainly not a coincidence. It’s a “free rent movement” brainwashing blitzkrieg. Aren’t you impressed?

Great, another “free rent movement” article – imagine that. And look, it’s the exact same format:

#1: Ham it up that higher lot rent will lead to famine, pestilence and nuclear war – take it completely out of perspective.

For some of her neighbors in the 55+ mobile home community, she said, “That is exactly what it has been. To have them spend their last few years fighting to keep a roof over their heads at 70, 80, 90 years old, is not right.” 

#2: Only talk about percentage increase and never the actual numbers.

Smith’s lot rental rate increased by nearly 25% since the new owners took over. Holy cow, Dollar Tree did the same increase recently from $1 to $1.25 – that’s 25%, too.

#3: Hide the important information.

“We don’t really have very robust laws to protect people from that type of pinch, in New Mexico,” University of New Mexico property law professor Elizabeth Elia said. So basically there’s absolutely nothing wrong with raising rents in New Mexico to market levels.

The problem with this “free rent movement” stuff is that you probably aren’t going to buy into the concept unless you’re an out-of-work Millennial. Articles like these are not going to actually persuade people. You either believe in “free rent” already or you don’t.

I’m glad to see the “free rent movement” gang is back in town. Here’s how to create a “free rent movement” article:

#1: Pretend that residents can’t afford both food and rent – really ham it up. Turn on the gas light.

One resident we spoke with told us now her rent has nearly tripled, she’s left with only about $47 each month after paying rent, her cable bill and heating her home.“Personally I’m on social security I’m very low income for me it’s the difference between going to get groceries a week or paying a bill or hearing my home,” said Sturtevant.

#2: Focus on the percentage of increase and not the numerical amount.

This is a story Western Mass News has been looking into and in our research we spoke with the Ludlow town administrator and he told us rent at the West street village mobile home park has increased by well over 100%. Adding that the Mobile Home Rent Control Board authorized an increase from just over $195 a month all the way up to $549.33 a month. 

#3: When the facts don’t support your theory, hide them.

Did you notice that little item from above that says the “the Mobile Home Rent Control Board authorized these increases”? Gosh darn it, that kind of really changes the narrative here. How is the park owner evil when everything he did was approved by a “rent control board”?

Bad news for the “free rent movement” folks: it’s NEVER going to happen. Even in Massachusetts you have this problem called property law. And if you don’t let property owners charge fair market rents then they just bulldoze the mobile home park and find another use that’s more profitable. The property owner always wins.

What protects tenants against “gouging” are other park owners who will relocate customers from parks that no longer offer a good value by offering free moves of the mobile homes to their properties. That’s always been the way the industry has regulated itself and it’s extremely effective and efficient. They are called “organic” moves and all park owners engage in them when the situation arises.

“Is this humane? What about humanity or is this all about the dollar?” Carpenter asked.

Kerr Properties is offering relocation packages to both owners and renters.

“As part of our re-zoning application, we have prepared and implemented a comprehensive relocation program which provides transparency and greater notification to residents,”  development manager Travis Tournier stated at the public hearing.

So where do the obligations of a parking lot owner end? Is the owner of a mobile home park required to take care of the residents even after the property is redeveloped? Is it some type of lifetime commitment? The park and the residents had a contractual agreement that allowed them to park their mobile homes on the land for a specified period of time. It was a mobile home park lease that was signed – NOT adoption papers.