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Promoting Homeownership in Underserved Markets David Clifton Washington State Housing Finance Commission Manufactured Home Community Investment Fund.

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Presentation on theme: "Promoting Homeownership in Underserved Markets David Clifton Washington State Housing Finance Commission Manufactured Home Community Investment Fund."— Presentation transcript:

1 Promoting Homeownership in Underserved Markets David Clifton Washington State Housing Finance Commission Manufactured Home Community Investment Fund

2 Helping manufactured-home communities to buy the land under their homes Manufactured Home Community Investment Fund

3 Homeowners are Vulnerable Manufactured Home Community Investment Fund People own homes, but lease space Many are low-income and elderly Often live in rural areas Rent can be raised or the land sold Landlords may not fix problems or maintain common areas When land is sold, often developed into commercial space or market-rate housing—a net loss

4 Cooperative Ownership = Empowerment Manufactured Home Community Investment Fund From: Rising rents Poor maintenance Landlord’s rules $$ insecurity To: Affordability Collective investment in improvement & maintenance Rules set by owners Long-term security

5 How to Help? Manufactured Home Community Investment Fund Cooperatives are complicated— owners need advice & education to organize themselves Also need financing—new organizations don’t meet conventional lending standards Ongoing technical assistance also needed

6 Our Strengths Manufactured Home Community Investment Fund Resources for financing By state law, WSHFC is notified when landlord intends to sell a man. home community Fits our mission to preserve affordable housing & assist homeowners But we lacked staffing and expertise to work with homeowners...

7 The Solution: Partners! Manufactured Home Community Investment Fund ROC USA: Financing, underwriting & TA for resident-owned communities (67 in 13 states so far) Northwest Coop Development Center: Experts in developing and advising cooperatives

8 The Loans Manufactured Home Community Investment Fund Manufactured Home Community Investment Fund—rotating loan fund using WSFHC revenues MHCI Fund covers up to 40% of total borrowed—remaining 60% from ROC USA & others Usually 1.05 loan-to-value, for 10 years 20-year amortization & reserves for debt service, capital improvements etc.

9 The Cooperatives Manufactured Home Community Investment Fund Each co-op member buys a share (typically just $10 monthly increase over previous rent) Elect a board of directors Set budget, by-laws, community rules Remaining rental units kept at minimum; plan to convert to homeownership Northwest CDC provides ongoing support

10 Power of Partnership Manufactured Home Community Investment Fund Six communities in Washington now self-owned or pending BEFORE ( ): WSFHC helped 5 communities in 11 years AFTER ( ): With new partnership, we’ve helped six in just 2 years

11 The Communities Manufactured Home Community Investment Fund Moses Lake (3 communities) Duvall Rochester (pending) Whidbey Island

12 Historic rural town east of Seattle Land prices climbing Manufactured-home community on prime real estate between Main Street & river Homeowners’ first 2 attempts to purchase failed—but partners overcame barriers 26 affordable homes preserved The Communities Manufactured Home Community Investment Fund Moses Lake (3 communities) Duvall Rochester Whidbey Island Duvall Riverside Village

13 59 affordable homes preserved—and fund created for critically needed improvements The Communities Manufactured Home Community Investment Fund Moses Lake (3 communities) Duvall Rochester Whidbey Island Thundering Pines “I see more and more of our community catch co-op fever! The sense of community and pride is awe-inspiring!” --Thundering Pines owner Near Naval Air Station Whidbey Island (NW of Seattle) Neglected by landlord; rundown Neighbors determined to save park from development 59 homes preserved

14 Three “mobile home parks” in Eastern Wash. town of 20,000 Portfolio sale to three separate co-ops – 113 homes total Included Mercy Loan Fund financing Many Spanish-speaking residents Neighbors feel safer, are taking more pride in homes The Communities Manufactured Home Community Investment Fund Moses Lake (3 communities) Duvall Rochester Whidbey Island Moses Lake Communities

15 Long-Term Value Land is preserved for affordable housing in perpetuity Partners share the mission—all committed to preservation Security for homeowners and their communities Downpayment Assistance Partnership Programs

16 More Information Visit us at wshfc.org! Contact: Downpayment Assistance Partnership Programs David Clifton Assistant Director, Multifamily Housing & Community Services (206)


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