Best Practices in Public Policy Anju Chopra, CFED (moderator) Peter Hainley, CASA Oregon Wendy Sullivan, Grounded Solutions Greg Sparks, Rural LISC

CFED – Manufactured Housing Best Practices In Public Policy www.lisc.org/rural

Mission Statement Rural LISC believes in rural America. We are committed to providing support for our communities, making them good places to live, work, do business and raise children. We believe that nonprofit community organizations play an essential role in achieving this mission. Rural LISC is dedicated to building the capacity of these groups and increasing their production, by generating resources and investing in their work. www.lisc.org/rural

Why Rural? Rural America is the primary source of the nation’s food, water, fuel and recreation. Almost 75 percent of America’s land mass is rural. Over 46 million people live in rural America. Veterans make up 25 percent of the rural population. Three out of five “boomers” say their idea of a perfect retirement location is a small town or rural area. USDA Economic Research Service – 2013 www.lisc.org/rural

Rural Challenges Lack of quality and affordable housing options Shrinking access to health care and medical facilities Struggling economies with limited job opportunities and limited quality education for all ages Lack of access to technology www.lisc.org/rural

About Us / What We Do Established in 1995 Program of LISC Equip rural areas with capital, strategy and know-how Help preserve and strengthen rural life Provide a supportive network that connects community-based groups to each other www.lisc.org/rural

Building Sustainable Communities Unique Model Building Sustainable Communities Expands investment in housing and real estate Stimulates economic development Improves access to quality education Supports healthy environments and lifestyles Increases family income and wealth www.lisc.org/rural

Service Area Portland, ME Davis, CA Washington, DC Fowler, CO Greenville, MS www.lisc.org/rural

By the Numbers What We've Invested What We've Accomplished (Since 1995) What We've Invested $2.45 billion which has leveraged nearly $3.5 billion in total development. What We've Accomplished 29,825 affordable homes 3.3 million square feet of commercial, industrial and community facilities 580 businesses assisted www.lisc.org/rural

California Mobile Home Park Rehab & Resident Ownership Program (MHPRROP) Purchase Acquisition Relocation Infrastructure upgrade Rehab of homes www.lisc.org/rural

Ownership Entity Resident Controlled Qualified Nonprofit Sponsor Two-thirds residents of mobile homes Local Public Entity City/ County/ Housing Authority www.lisc.org/rural

Loans Maximum Loan $3.5m 50% Cost Attributable to Low Income   Maximum Loan $3.5m 50% Cost Attributable to Low Income (Purchase Price) $5m X 50% (max. loan) X 45% (low income) = $1.125m) = $1.125m www.lisc.org/rural

Loans, Cont. Park Acquisition Rehab of Homes Bridge 3% 3 years Perm 3% 40 years Rehab of Homes 3% 40 years www.lisc.org/rural

Nonprofits Hesitant to Step In or Step Up Due diligence costs money Few groups have technical expertise to take predevelopment risk Need to Modify MHPRROP to finance TA for preservation Need to Modify MHPRROP to grant finance predevelopment Need to increase $3.5 funding cap per development www.lisc.org/rural

Good Practice, But Not the Best Practice – A Work in Progress No Demand for over-the-counter NOFA of $11m Problems Purchase price of parks based on revenue (Cash Cows for Investors) Need for incentives – Carrots or Sticks Legal Proceedings and Receiverships Tax incentive to sell to residents Finding the unique sellers www.lisc.org/rural

Problems, Cont. Nonprofits hesitant to step in or step up Due Diligence cost money Few groups have technical expertise to take predevelopment risk Need to Modify MHPRROP to finance TA for preservation Need to Modify MHPRROP to grant finance predevelopment Need to increase $3.5 funding cap per development www.lisc.org/rural

Envision the Possibilities Learn More www.lisc.org/rural Rural LISC 402 US Hwy 50 W, Fowler, CO 81039 719-263-4505 1825 K St NW, Suite 1100, Washington, DC 20006 202-785-2908 Follow us on Facebook + Twitter www.lisc.org/rural