FB Live Summary : Mobile Home Ownership Structure & Laws with Sue Loftin - Castle Breckenridge Management

FB Live Summary : Mobile Home Ownership Structure & Laws with Sue Loftin

Takeaways from our Facebook Live conversation regarding Mobile Home Management & Ownership Structures and Applicable Laws with Sue Loftin of The Loftin Firm, P.C.

3 Types of Mobile Home Ownership Structure:

  1. Rental Mobile Home Parks/Investor-Owned
    • Investors own mobile home park and they rent the space to individuals who own the mobile home
  2. Third-Party Non-Profit
    • Misunderstanding: Non-profit buys the park and communicated that it will benefit everyone, but this is not always the case
    • They can and do raise the rent
    • The non-profit may say that mobile home renters can rent-to-own but again, this is not always true
    • The Takeaway: Work with an experienced management company, make sure the non-profit is transparent about their plan for the park. This model can be very beneficial to low-income mobile home parks if the structure is executed properly with an expert mobile home management company. 
  3. Resident-owned
    • Common interest subdivision
    • Standard Co-Op: membership, no stock ownership
    • Limited Housing Equity Co-op: residents set up 501c3 and can take tax-deductible donations and grants
    • Corporate Ownership: residents form a corporation and buy the park
There are a variety of laws that mobile home property managers and mobile home residents/owners should be aware of, especially when changing ownership structures.

Davis-Stirling Act

  • Applies to: Common interest subdivision, Standard co-op, Limited housing equity

Non-profit mutual benefit corporate law

  • This is the law under which mobile home communities form HOAs. This is important because it augments the Davis-Stirling Act with what you can/can’t do with your park.

Coastal Act

Title 25

  • Always applies- no matter what the ownership structure is. 


Highlighted questions from FB Live:

“How should a mobile home community prepare for financing or refinancing?”

  • Collect a history of defaults on loans by residents
  • Organize relevant documents
  • Hire an experienced mobile home management company before applying for a loan

*Corporate owned parks are more challenging to refinance


“How do you decide which ownership is best for your park?”

  • Hire someone to do a feasibility study
  • Consider Location
  • Survey residents 
  • Consider the age of homes 


Main takeaway: hire an experience mobile home management company that is updated on new and amended legislation, and can help your community make the best, informed decisions regarding your HOA and management.