Thursday, November 3, 2011

What is in the BEST INTEREST of California Manufactured Home Owners?

"What are the problems -- what are the best answers for manufactured home owners, in California's (or any other state) so-called Mobile Home Parks, aka Manufactured Home Communities?

[What are the most important threats to our housing?]
(1) Monthly out-of-pocket housing cost.
(2) Financing options to us and the next buyer.
(3) Estate planning.....Reverse Mortgage capability.

[What solves #1-3 above?]
(1) Eliminate ground rent and the increase due to cost of living -- an absolute must!!
(2) Own something that is financable. Note: Unless you own the land under your home, it is considered the same as a 'used car'!!...and is financed as such, if at all, in today's times.

[What solves the above?]
(1) Own the land under your home.
[How to own the land under your home]
(1) Buy the entire facility.

[Ok -- let's stop for a moment!!]
Resident advocacy organizations, large and small, local and statewide, have agendas that range from 'harassment' to 'rent control'/'de-control'.

[Ok -- Be honest!!]
(a) Would any of those agendas do away with Cost of Living? Answer: No, No, No.
(b) Would any one of those agendas put the ownership of your lot in your name? Answer: No, No, No.
(c) Would 'harassment', 'rent control'/'de-control become a non-issue if you owned your lot? Answer: YES, YES, YES.

Ok -- Please understand, those of you in an agenda group that may feel challenged, this information is to educate everyone so that we are all on the same transparent page as to where each of us may want to go.

If one wishes to pursue other issues, whatever they may be, you are certainly free to do so with organized groups.
Sooo- let's move on to: "What are the Resident's tools with which to purchase?? A Very Good Question.

[Tools to Purchase]
(1) We're California voters.
(2) Federal and State decisions (law) supporting "Affordable Housing".
(3) Quick method, i.e., 90-120 days.
(4) Cost to each Homeowner = about same or maybe less than existing rent - but no more increases.

[Explanation of Tools]
(1) As California voters, collectively, Residents/Mobile Home Owners number about 450,000+.
(2) The U.S. Supreme Court down to our State Legislative Counsel provide long time support of Cities and Counties absolute right to move land from the Investor to the Homeowner.
(3) Read the material provided by the State for Mobile Home Owners on "How to Purchase your Park". Note: The exemption under the Business and Profession Code allows a 'fast track'. It is known as the
"Mitchell Method:, named after the author and supporting firm that brought it into use.
(4) Costs, looked into and approved by the State Dept. of Corporations, are compared to existing housing
costs before the permit is issued to proceed with the purchase.

[Use of Tools to Purchase]
(1) (a) As a voter group, the Mayor and Council must listen if they want to stay in office.
(b) The State and Federal Agencies - i.e., Auditor's Office, Attorney General, IRS, etc. - do not respond to individuals. They want the most 'bang' for their time and effort; thus, a group presentation is far more
(2) The "Law" is very clear. As "Affordable Housing", the Law of the U.S., down to the State and Local levels- --we are supported.
(3) Our research found a 'Team' that:
(a) can create a Planned Unit Development (a form of Subdivision) so that you have a Deed to your home and land in 90-120 days+.
(b) From that, normal single family financing is available -- for example, today in the 4%+ area.
(c) Cost of Living of ground rent is eliminated!!
(d) If necessary, through another "Mitchell Method" law change, a third party can step into the escrow, and close ---- all cash --- in the necessary time period.
(4) [Costs]: Using the home and lot as security for a loan to cover the purchase of the land, the total cost is composed of (i) loan payment, (ii) HOA Fee. This is the measuring device the "Mitchell Method" uses --- and the State supports. The total cost of (i) and (ii) is probably less than your current rent.

Sitting on your duff waiting for the harassment and de-control efforts to solve the purchase effort is like the self-denial group who was the last one off the Titanic and into the water.

If your park is already owned by a City or a 501-c-3, stay tuned and we will get something started right away.

We've just heard that the IRS would look favorably on a sale transaction that would be equal to nothing more than paying off the Principal of the Bond. In other words, since the Resident Home Owners were the ones paying, the increased value or equity belongs to them -- not the City, not the 501-c-3.

In closing --- some other interesting information ---the State is investigating the workings of a Redevelopment/City Mobile Home Park purchase using Bonds!

No comments:

Post a Comment