Contact us for a FREE management proposal (619) 697-3191info@cbmgmt.com
Contact us for a FREE management proposal (619) 697-3191info@cbmgmt.com

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.

 

Related Posts