MANUFACTURED HOME PARK RESIDENT GROUP PURCHASES OREGON PARK




The residents of Springlake Park, Scappoose, OR, have completed the purchase of their park through their newly created resident cooperative corporation, Springlake Community, Inc. (SCI). This is the first resident coop park purchase in Oregon.

Springlake is a 147-site, 5-star, "55 & Older" manufactured home park located about 20 miles northwest of Portland at 51359 SE Springlake Loop, Scappoose, OR. The park includes a 3500 sq. ft. clubhouse, two small lakes, and RV storage with electrical outlets. The park was built in several phases from 1986 to 1998 and contains primarily doublewide homes with attached, two-car garages. The property has 23 sites that had never been occupied.

SCI was formed in 2003 to purchase the property. The purchase was completed in September 2003, when 83 residents each purchased a membership in the corporation for $15,000. 36 residents funded their membership out of personal funds. PMC Financial Services made loans to the other 47 participants through PMC's membership purchase program. This program provided 95% loans of $14,250 and was available to all residents. SCI also provided down payment assistance loans, if needed.

This equity, combined with a $5.83 million conduit first mortgage loan, enabled the group to purchase the property for $6.6 million (about $44,900 per site or $53,200 per occupied site). The Oregon Department of Housing and Community Services (HCS) provided critical initial pre-development funding through a $100,000 loan to the resident group.

The residents and PMC developed an organizational and financing plan. There were three (3) goals: 1) have a membership group of at least 60% of the occupied sites, 2) have a total average monthly payment (including loan payments) after acquisition of not more than 120% of the prior site rent payment, and, 3) have a down payment, for those residents borrowing the membership price, of less than two months site rent.

The goals were achieved with 67% participation, member payments 19% over the average site rent of $395, and a downpayment of 95% of the target amount. Member payments are expected to decline in the future as the vacant sites are leased.

The SCI Board approved the plan in April 2003 and signed a Purchase & Sale Agreement with the owner in late April. About 4 & 1/2 months later, the transaction closed. The first mortgage loan was originated with an interest rate of 5.83%, with a 25-year amortization and 10-year term.

Both HUD and Fannie Mae declined to finance the park. HUD took the position that they will not finance "55 & Older" parks, despite the fact that the "55 & Older" requirements were created by the HUD Fair Housing office and implemented by the Housing For Older Persons (HOPA) Act. Fannie Mae took the position that they will not finance resident-owned parks.

Park Purchasing Is A Reality In Oregon!


_{Donna Talarski}

This article may have already appeared on this page, but I thought it might me worth printing again.


From small seeds grow great trees. From seeds of hope comes great promise! !
Springlake Mobile Home Park is now owned by its residents. During the Annual Conference, held in Eugene, a complete summary of the park purchase was given by the residents, and Dean Sargent and Tony Woller, both from PMC Financial Services. PMC was instrumental in providing both financial and legal guidance during the negotiations and finalization of the purchase.

For those of you who have attended the annual seminars you will remember Dean Sargent, who has previously given a presentation on park purchasing. He, and the organization that he is associated with, PMC Financial Services, were instrumental in bringing about this development. While the paper work of such an endeavor can be almost overwhelming the residents of Springlake worked diligently with PMC Financial Services to achieve their goal.

Dean also credited OSTA for their participation in the purchase. He pointed out that OSTA, through the efforts of Pat Schwoch, were instrumental in obtaining "bridge financing" from Housing and Community Services.

A number of preliminary steps are essential to residents, who reside in a manufactured home park and want to be considered as potential buyers for the park.

First and foremost the Oregon State Statutes specifies, in ORS Title 10, Chapter 90, 90.815, that "A facility purchase association shall comply with the provisions of ORS chapters 60, 62 and 65 before making the offer provided under ORS 90.820." Very simply put this means that residents, in a manufactured home park, must form a non-profit corporation in order to be eligible for participation in a park purchase plan. There are also other requirements that must be met, by the residents, to be eligibile to purchase their park.

PMC Financial Services offers the necessary expertise and guidance for those interested in pursuing a park purchase and Dean Sargent is more than glad to discuss the program with residents.Click here for additional information

Different Strokes



_{Donna Talarski}

Ron, thank you for the kind words, my intention when I made the statement “Trust me people in LVH have Comments” was not for accolades but to show that we have varying viewpoints. I am excited when I hear folks talking at the clubhouse about what is going on, even if they don’t agree with it. In their own way they are involved. In every group it appears that a few people do most of the work. But when you look closer, you will find the “Silent Majority” of which I choose to believe are the folks working in the background doing the jobs that no one else wants and not asking or requiring any praise or accolades. It is the good neighbor that helps another yet never joins a group or the person that cares for a pet when someone is in the hospital, these are the true heroes.

People in LVH move here for a variety of reasons. Some choose to get involved but other don’t, that is their right. Our agenda is oftentimes not theirs. That does not make us right or them wrong. All I want is to offer the opportunity to everyone to attend the meetings, become involved in groups, and to build bonds with their neighbors if they choose too. If they choose not, then that is their decision and I respect it.

Someone once told me there is something in my personality that requires me being in the forefront. Was she right, maybe? As Lee Icocca once said, “Lead, Follow or get out of the Way.” I would put it more gingerly: “Live, let Live but Be Happy”.

IZZY’S COUPON BOOKS




The Izzy’s coupon books are here and available for sale. The sign up sheet is posted at the clubhouse. There is an opportunity to sell these books outside of Longview if we can get the woman/man power. Some ideas are as follows:

1.Table in front of Wal-Mart or Fred Meyer on Saturday – 4 people could work 2-hour shifts

2.Setup an appointment to be at Pacific Shores Community Clubhouse – 2 people could work 2 hours during the week for one day.

3.Contact Senior Center in Newport – 2 people could be there around lunch any day during the week.

4. Newport police and fire departments.

These are just a few of the possibilities. Remember we are Not for Profit Organization and an over 55 community this allows us a special status. Plus the fact that $4.00 out of every $5.00 goes to charity.

Bottom Line: we need people to be involved a few folks cannot cover all the options. If you have ever used the clubhouse or intend to use it in the future then you have the responsibility to help maintain it for our current and future needs. If you choose to help sell give me a call at 265-5530.