Mobile Home Park News Briefing

You guessed it – another article about “evil” park owners destroying lives with $50 rent increases. Except this one is different: the “evil” park owner is the country itself.

And when they were questioned about the increase at a county meeting, they didn’t mince words:

Commissioner Kent Becker said “commissioners look only at what the dollars are”.

That pretty much sums it up without a lot of B.S. 

If a park owner had said that they would have been tarred and feathered by the media.

The bottom line is that mobile home parks are income properties, and they only survive when they are the most profitable use for the land. Even the bureaucrats have figured that out in Hillsboro, Kansas.

Have you heard this narrative before? 

Owners Joy and Eddie Hanks purchased the park in 2020 for $600,000 along with several adjacent properties, according to property records. They revealed in July this year plans to construct “Digs on the River,” a 23-acre project to include apartment buildings, commercial and restaurant spaces, a boutique hotel and potentially a boardwalk down on the bank – but no trailer park. Those within the park, encompassing over 30 trailers, will be forced to move sometime after July 31, 2024, with 90 days' notice. 

Yes, it’s the fourth such article this week regarding parks being torn down for a higher use of land. If you want to stem this tide the simple solution is to make mobile home parks a higher use of land. And you only get there with much, much higher lot rents. As I’ve said a thousand times, low rents = redevelopment.

But here’s also a narrative you’re seeing a whole lot of this week:

Many claim their requests to meet face-to-face with the Hankses have been met with resistance. Morse, a resident of five years with her fiance and two young children, said discussions with the couple were “making progress” until about a month ago when Joy Hanks requested any further questions be sent in writing and declined to meet in person.“I just want to have a conversation,” Morse said. “I just want to have a real, human conversation, and I’m a businesswoman too. I plan to be perfectly professional, and I don’t want any conflict that she thinks will happen.”

Mobile home park residents and bureaucrats think they can talk owners out of making smart financial decisions. The problem is that only money talks in the investment arena. The owner is not going to meet with the residents because it’s pointless and only opens the door to litigation in a screwed-up America. If the rents had been higher there would not have to be a meeting and the park would continue on as part of that mixed use development. With apartment rents at $2,000 per month on average – and you can stack them two of three high – mobile home park lot rents would have to be triple the U.S. average in many cases to even dent the rate of speed you are seeing parks close down.

Another park being torn down for a new and better use of the land. And, in this case, the residents are suing claiming that they want more relocation money and freebies. Maybe they should have been as aggressive about pushing the owner to charge higher rents so they would not be cut loose?

Here’s the Cliff Notes version of this article:

“As the housing crisis in New York continues unabated, one demographic is being unexpectedly targeted by developers. Pre-existing infrastructure for water and sewer and cleared acreage at trailer and mobile home parks makes them an attractive acquisition for any developer. Many New York manufactured homeowners have already lost their homes to developers, including a lot in Saratoga County and on Long Island. New York state elected officials say they’re seeing an increase in the development strategy, so they’re working to help give the homeowners some power through new legislation. Landowners cannot be prevented from selling. The new law means homeowners in the parks – most of them own their trailers and rent their spaces – now have the first right of refusal to purchase the land. So if the owner of the land wants to sell, residents can collaborate and match the purchase price."

Great fiction writing. Here’s the reality:

• Only about .0001% of the time are the tenants successful in matching the price and closing on the deal.
• The bureaucrats only added this meaningless law to appear like they have power, because they have none. Even though New York has rent control it has no power to block the sale of land.
• In fact, it’s exactly the new rent control laws of New York that are causing park owners – in bulk – to redevelop into uses that are not rent controlled.

So how could the bureaucrats really help park residents if they wanted to? Simple:

• Abolish rent control.
• Stop harassing park owners who raise rents to meet market levels.
• Offer tax incentives for those who sell and keep the park in operation as opposed to having it torn down.

Think this will ever happen? Are you kidding me – this is New York!

Another story about a mobile home park being torn down to make way for a more profitable use for the land, probably because the rents were ridiculously low. Predictably, the park owner is blamed for the demolition and the resulting “homelessness” – but also would have been equally blamed if they had raised the lot rents high enough to keep the park intact. There’s no winning with the American media today so why worry about it?

More government and non-profit stupidity in action. Cotati, California is going to stop a park from changing from senior designation to all-age because they are afraid that having freedom of competition will force rents higher:

Concerned that an all-ages conversion could drive up rents if dual-income families were to move into the retirement-aged community, Countryside residents called on the city council to act before a state mandated six month grace period on the all-ages conversion expired in February, 2024.

Smart move. So now it’s pretty much guaranteed that the park will be torn down to make way for more profitable uses.

Yes, the same tired narrative as the above article. And, yes, the goal here is for the media to brainwash you that all rent increases are “evil” and all park owners are “evil” if they regurgitate the same article 100 times in a row.

So here’s the deal. A park owner is raising the rents in a park in Olympia, Washington – just down the street from the Walmart Supercenter – from around $500 per month to around $750 per month. Olympia has an average single-family home price of $472,500 and an average apartment rent of over $2,000 per month. That new lot rent seems ridiculously low, right? Well, not apparently to the residents of Tumwater Mobile Home Park.

“I never thought it would happen here – with the history,” said John Stockman, a resident of 10 years. “We’re talking 50-60 years of [local] ownership.” Translation: “We like the old owner because he never raised the rent – even though he obviously should have”

With a record of monthly rent increases averaging just $10 to $15 a year, Western Plaza had presented itself as a forever home. Translation: “We thought we were going to get away with robbing the old mom and pop blind forever”.

Thurston County Assessor’s Office records show Legacy Communities paid $9 million for the park — more than double the amount it was priced at in 2008. Translation: “rents are going to have to go up a lot to justify the value of the land and the cost of running a business in a modern world”.

“It feels to me like society is just kicking Grandma to the curb,” Lucas said. “That’s how it feels – kicking Grandma out on the street. And I think that we’ve reached the point now where all of these elders are threatened with homelessness. This is elder abuse, and we as a society need to address it as we need to make some changes.” Translation: “We can’t really justify how this new rent is not still ridiculously low so instead we’re going to try and distract you with veiled threats of litigation and this false narrative that a $250 per month escalation in rents is going to make all seniors homeless so that maybe a politician will try to pass rent control really fast”.

The bottom line is that nobody likes higher rents but, in this case, they are more than justified.

And I urge you to look at where this park is located in Olympia vs. where the Walmart Supercenter is located at. I would imagine that the rent will have to be $1,000 per month shortly to have any hope of staving off the wrecking ball for a new retail center or $2,000 per month apartments. Translation: “you better hope for more increases because the alternative is redevelopment”.

No, wait, not another misguided non-profit in action? This story pins the “stupid meter” in two key ways:

1. The city thought that spending $3.5 million to save 11 mobile homes from being torn down was a great investment. I mean, that’s only around $300,000 per household to save a $3,000 dilapidated mobile home from demolition, right? In non-profit world that must be a great use of taxpayer money (assuming you’re a complete idiot) but do you really think that those 11 families would not prefer receiving $300,000 in cash each so they can go buy a brick home in a subdivision and get out of that old, high-density park?
2. The genius at the city that offered the $3.5 million to mom and pop just found out that the park was only worth $1.5 million and they have been “had” to the tune of $2 million. Boy, I never saw that coming.

So now what do the virtue signalers at the city do? I’m sure the only solution is to go ahead and pay the $3.5 million and spend another $2 million to build a solar array to make it more environmentally sustainable.

Watch the news story video – look at the condition of this property -- and tell me if anyone with an IQ higher than a lima bean would even remotely believe that this land is worth $25 million as a mobile home park use. Clearly, it’s going to be redeveloped into a better use, right? I am forever blown away that people have zero understanding of basic economics.

I hate to throw cold water on this stuff, but tiny homes are never going to be a permanent solution to housing issues. They are too small and depressing to live in on a full-time basis. At 400 sq. ft. or smaller they are about the size of a hotel room. I know few people who could live their lives in a hotel room happily. On top of that, they are way too expensive for their size. If you hate mobile homes due to the stigma, at least consider a 5th wheel with pop-outs which are still far cheaper than a tiny home to buy but have the same sq. ft. You can get a used 5th wheel for as little as $3,500 (look at RV Trader’s website) and then when you can’t stand “living small” anymore you can sell it for $1,000 and walk away from it. With a tiny home you are stuck with tens of thousands of debt and a tiny market of interested buyers.

It’s a good thing that non-profits don’t rule the world as it would be a pretty sorry place to live. Take note of just two key factors in this article:

1. The mobile homes that this non-profit is providing cost $100,000 to $130,000. Any idiot with a dealer’s license can buy essentially these same mobile homes for $80,000 or so turn-key. Not exactly a good value.
2. Look at the photo of the park and then zoom in on each home and lot. It looks totally junky like the “before” photo of many turn-around parks. Not exactly a sign of good management.

Every week these type of articles beg the question “is this the best way to spend money?” and every week the answer is clearly “no”. Most all private-sector park owners can provide a better product than this at a lower price point. But, of course, that never gets mentioned because all park owners are “evil”, right?

This is a 31-space park in poor condition. At $5.5 million that works out to around $200,000 per space. So, yes, this park is going to be torn down as far as I can tell. Everyone has to remember that there are many different options for every tract of land and mobile home parks are only one of those. It’s perfectly natural for a piece of land to go through a progression of uses over time – just as many mobile home parks started off as producing farms and then RV parks with gas stations and then on to mobile home parks. When a mobile home park gets turned into a nice apartment complex or retail center it’s simply called “progress”. There’s no deeper meaning.

The same tired story of how resident-owned communities saved a 13-space trailer park from demolition and can do the same for all the other 44,000 parks in the U.S. There’s only one problem with this story: resident-owned cooperatives have only done around 300 parks total in decades of existence. That works out to a .0068% success ratio. At the current speed it will take them roughly 3,666 years to tackle the rest of the parks! That seems like a reasonable use of this much attention and discussion, right?

Ditto. Same story as all the earlier ones. Fighting higher rents = certain closure of the park.

Looks like construction companies will have plenty of work redeveloping former mobile home parks in 2024.

Wow, same story as above and will probably have the same ending unless these city leaders have more common sense.

I love the way that – only on mobile home parks – raising rents becomes a part of a social agenda. Here’s what the quote in the article said from one resident:

"I don’t understand why they think they need so much money to live on when we have so little to live on”.

I had the same question once from a woke reporter at PBS who said “why do you have to raise rents – why can’t you lower them instead?”. My answer was simply that I was a business person and not a non-profit but if she or PBS would like to cover the difference in rent – as a charitable act – then I could work out a deal. I’ve still never heard from the reporter or PBS to take me up on that offer. Charity sounds great as long as you don’t have to pay for it, right?

Looks like the same flight path as the earlier articles. When you fight lot rents going up even with CPI increases you are just asking for closure. Either these bureaucrats are completely incompetent or maybe their plan all along is just to get the parks torn down.

I know nothing about the facts of this case, but let’s face it, if you live in California or Florida and your rent is too low the odds are 99% your property will be redeveloped. If I was a resident in a CA or FL mobile home park my question to the owners would be “how high does the rent need to be so the park won’t be torn down?” Isn’t that just basic common sense?

First of all, I love the lack of bias from the woke reporter:

Fresno mobile home park under the threat of closure by an unscrupulous owner with a cash register heart.

Second of all, this is an article that is the perfect illustration of why Ronald Reagan once said “the nine scariest words in the English language are “I’m from the government and I’m here to help”. This owner offered to keep the park free from redevelopment at a $650 per month lot rent, which was more than reasonable. The city blocked him and told him it could not be more than $350. He warned them, the park would be demolished if they refused to listen to reason but they wouldn’t budge. And now it will be demolished and everyone in the park will be homeless.

Here's a quick look at Fresno housing prices looks like: $359,700 on the single-family home average and $1,330 per month apartment rent on the two-bedroom unit and $1,800 per month on the three-bedroom.

So, $650 looked like too much, huh? Interesting logic.

But don’t worry, residents of the park, those same bureaucrats are ensuring you’re going to get at least 12 months’ notice to move out.

Think the residents would have voted to raise the rent to $650 per month as opposed to their new position as being homeless in a market with $1,300 2-bedroom and $1,800 3-bedroom rents?

The article fails to mention how many people live in this park (no doubt so you could not easily whip out your calculator and see what a monumental waste of money this non-profit inspired project was) so I did the research for you. Here’s the information on Mountain View Mobile Home Park. As you can see, it houses 34 trailers. When you see how many non-profits contributed to this deal you begin to realize why nobody wanted to identify the number of beneficiaries. Assuming they procured 80% LTV – and only counting the county’s contribution of $1 million as the total down payment -- then the park must have been purchased for around $5 million. At 34 total sites, that works out to $147,000 per household, and you know the actual number is probably closer to $200,000 when you add in all the extras from all the other non-profits. This then begs the question “is this really the best way to spend that money”? For example, they could have simply passed on buying the park and given each family $200,000 in cash and told them to go buy a nice brick house with no mortgage, a newer car free-and-clear, and have a happy life. But instead, they are going to force these folks to live in a highly dense 1960’s trailer park for the rest of their lives.

I promise you that not one single resident would have elected to stay if given the option of the money or their trailer. Shouldn’t they be given that choice in these transactions?

OK, it’s pocket watch time again. Start swinging it side to side while you read this pile of nonsense:

“Diamond Field LLC (also referenced as defendant) purchased Maple Acres Estates in August 2022. In March Diamond Field issued notice to Maple Acres tenants of its intent to increase their lot rent from $170 to $299 … Diamond Field’s tactics coincide with a nationwide trend, in whcih predatory corporations hiding behind layers of shell companies purchase manufactured housing communities, then raise the lot rent and force mass evictions”

So let me get this straight. Park owners raise rents because they want to do mass evictions? That’s their business model? Where’s the money in that? And, of course, there isn’t. A good rent increase is one in which you lose not a single tenant. And you get there by offering a good value, which at $299 I’m sure it is.

OK, so now let’s get to the down-and-dirty truth. Diamond Field LLC appears to have taken a crazy, stupid ridiculously low rent of $170 per month and raised it to $299 which is still crazy, stupid and ridiculously low but a little less so. And I’m sure they did major improvements and started to enforce the park rules as part of the increase. And if we went to the park right now and knocked on any random door we would find that the residents are absolutely ecstatic with the improvements and have no problem paying the ridiculously low rent of $299 now that the park is nicer. But, as usual, one or two people who were living marginally in the park and having trouble paying $170 per month ran out and found a cheap attorney who filed a frivolous case since there is no rent control in West Virginia. In fact, if you read the preamble to the article, you’ll see that all the attorney accomplished was to file an appeal wanting to get the eviction case moved to a different court in order to buy the marginal folks a little more time before they pack up their pickup trucks and drive off. Big deal.

Was anyone hypnotized by this article and its repetitive mantra? If you have an IQ higher than a lima bean then probably not.

Get out the pocket watch as it’s hypnosis time again:

Nationwide, ROC-USA works with over 300 resident-owned communities. Now, federal legislation, sponsored by U.S. Sen. Jeanne Shaheen, has been introduced to help preserve these communities. The bill, which was introduced by Nevada Sen. Catherine Cortez Masto, would establish a permanent grant program to help revitalize manufactured housing communities with a specific emphasis on those that are resident-owned. With it would come funding for infrastructure improvements like water and sanitation.

Apparently some bureaucrats have been successfully turned into zombies and now believe that you should only fund infrastructure repair on resident-owned communities. Since there’s only 300 or so of them, that’s not a very big commitment. And maybe that’s why they put that restriction on there?

This park manager – facing rent control – had a not too veiled opinion of the end result:

Vance Verderame, operating manager of Canada Cove mobile home park, spoke against the idea, explaining that Canada Cove maintains all infrastructure and amenities in the park and government regulation could upset this balance.

Here’s the translation: “If you pass this rent control we’re going to demolish this thing”.

Can you blame them?

Only in California …

I’ve been in this movie myself, back on a park in Texas in about 1999. The city tried to add an “administrative fee” to the park owners of about $2,000 per year just to get their annual permit renewal. So we all banded together, hired a municipal lawyer, and sued the city. The city lost big time. It turned out that the law in Texas clearly states that the amount of such fees cannot be greater than the actual cost to inspect the property, which was more like $100 and not $2,000. And what this city is proposing is even worse than that Texas city tried:

As of now, what is proposed to take effect on Jan. 1, 2024, “and for each year forward,” is that the “township shall charge and collect for the license an annual fee of $200 and the sum of $7 per calendar week for each mobile home occupying any space in the mobile home park during the calendar week or part thereof.”

These park owners probably need to get together, pool their legal fees, hire the nastiest municipal lawyer they can find, sue the city and stop this nonsense. I hope at least one of them is reading this and can look into these facts.

Great quote from the park owner:

“While our aim is to preserve mobile home parks, Hurst and Son is not a low-income housing provider. At the same time, we want our communities to be mixed income, and we don’t want improvements to displace anyone. Many mobile home parks are at a crossroads, but that doesn’t have to be the future. If we looked at this as a private-public partnership, the state could allocate income assistance for those who are low-income while the private sector makes the required infrastructure improvements to sustain the communities as an attainable housing option."

The bottom line is that bringing old parks back to life is expensive and rents are going to go up and marginal residents are going to be displaced – and 99.9% of residents are going to be delighted by the improvements and happy to pay the higher rent. It’s either that or just tear the parks down and put up apartments which never seem to get any pushback on anything they do. It is NOT the park owner’s responsibility to provide for the marginal group that can’t afford to live in a modern world. That falls on the back of Section 8 which does a poor job of addressing the needs of the American public and has massive waiting lists. The government should not use private property owners as the backstop for their failure to do their job of offering housing assistance.