Mapleton Mobile-izers

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The Mapleton Mobile-izer is issued quarterly, following the MHA membership meetings. Special editions are issued as needed, for example before a quarterly meeting where MHA members will be voting for executives or making an important decision...


MHA BLOG Volume 5.4 Special Edition Newsletter of the Mapleton Home Association [MHA] October 2000

SPECIAL EDITION: MODELS FOR PURCHASING THE PARK
TO LEARN HOW RESIDENTS WILL BE ABLE TO BUY MAPLETON PARK, READ THIS NEWSLETTER, THEN COME TO THE MHA QUARTERLY MEETING, NOVEMBER 5, 2000, 5:30 AT UNITY CHURCH AND BE PREPARED TO ASK QUESTIONS

Inside This Issue



Buy the park now!
By the editors
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The Mapleton Home Association has been working hard with Thistle Community Housing and the City of Boulder's Division of Housing to make resident ownership of Mapleton Park a reality. The articles in this special edition of the Mapleton Mobile-izer were put together by the MHA Business Committee and Thistle Community Housing. They outline the various models that provide for resident ownership. Read them carefully. Then attend the November 5th Quarterly Meeting of the MHA and be prepared to ask questions. if residents don't become involved, resident ownership of Mapleton Park will never happen. That would mean that the Park would be purchased by some organization or corporation that is much less concerned with your welfare than you are.



Purchase issues
by the editors
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To understand better the models presented in this newsletter, the MHA has provided an overview of some of the purchase issues involved with a resident buy-out of Mapleton Park. This overview is based on information provided by City Staff (eds. note)
1. Timing The latest schedule for the completion of the Goose Creek Flood Project is between mid-2003 and mid2004. Upon completion, the City intends to sell the Park. The MHA's schedule to complete an acquisition of the park is:
A. January 2001: select acquisition model and begin development of the buyout process and work on infrastructure design.
B. January 2002: complete development of the acquisition model, infrastructure design and preparations to secure financing.
C. January 2003: finalize the financing, including grants and loans and due diligence.



Amount of purchase
by the editors
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 The Division of Housing's staff currently estimates that the park's purchase cost will be approximately $4,000,000, including infrastructure repair). This figure will likely change in the future, but is adequate as a starting point for planning purposes.

Terms of purchase
by the editors

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 Cash at closing. This means we must have a bank loan for the purchase price. The City will also stipulate that the park must be used for affordable housing, and thereby limit the potential for profit on any future sale of the land (either as one property or as individual lots) . How this restriction will work is undetermined at this time.

Planning and Zoning
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 At the advice of the City, we are planning on a minimum of 125 mobile home lots. City zoning and code enforcement issues will need to be resolved prior to acquisition. These issues include zoning of MMHP, setbacks, infrastructure repair, and mobile home code amendments.

Infrastructure
by the editors
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 The MHA has requested that water, sewer and electric utilities be replaced prior to closing on the sale of the Park (and hopefully while the Goose Creek flood project construction is under way). Lending institutions will likely require these improvements as a condition of any loans to acquire the park. The MHA has already begun the process by applying for a grant to conduct a utilities needs assessment by a qualified engineer. The consultant will help us define what needs to be done and the cost.

Housing affordability
by the editors

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There will be resale restrictions placed upon residents who are selling their homes; buyers must be in a low and moderate income bracket. City staff have indicated that if monthly lot fees are kept low, the City may assist financially with the acquisition of the park, through grants the MHA would write. It is possible that a percentage of lots may be partially exempted from these restrictions, allowing those residents to sell at free market prices. However, the residents at these exempted sites must pay market-rate monthly fees.



AN EXAMINATION OF TWO MODELS: COMMUNITY LAND TRUST & LIMITED EQUITY COOPERATIVE
by the editors

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Two of the models currently under consideration are the Community Land Trust (CLT) and the Limited Equity Coop (LEC). Under any acquisition model residents will have 1) monthly fees which include mortgage payments, maintenance, and building capital reserves; 2) a restricted resale of homes to low and moderate income families; and 3) limited equity in the land. (eds. note)

Who Owns the Land and Who is Responsible for the Loan?
by the editors

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Under the CLT, the land is held in trust by a third party such as Thistle Community Housing. Residents still own their own homes as they do now. The CLT is responsible for loan payments which are paid out of residents, monthly fees. With an LEC, residents own shares in the Cooperative which, in turn, owns the land. Residents continue to own their homes. The Cooperative pays the mortgage.

How does it work?
by the editors

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The CLT is run by an independent, non-profit organization (such as Thistle Community Housing). The Mapleton Home Association leases the park from the CLT and makes monthly payments to the CLT. Residents, in turn, lease their lots from the MHA and make monthly payments to MHA. Under an LEC the Mapleton Home Association is reorganized into a legally recognized Cooperative. Residents must purchase a share in the Co-op and sign a lease agreement with the Co-op for their homesite. Residents do not own their lots; they own a share in the Co-op that owns the entire park.

How Much and When Do I Pay?
by the editors

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Under both models residents would pay a regular monthly fee. The goal is for the fee amount to be similar to what we pay now. However, with an LEC residents must purchase a share of the Cooperative up front, plus pay a monthly fee. The size of the monthly fee depends, in part, upon what we decide the cost of a share will be.

What Are the Responsibilities of the Residents?
by the editors

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CLT: Residents pay their monthly fees and with this money the CLT pays the mortgage, maintenance and builds a capital reserve fund for future infrastructure repairs. The CLT and the MHA share responsibility for maintaining the land. Residents, through the MHA, are responsible for managing the park, most likely by employing a property management firm.
LEC: Residents pay a monthly fee and with this money the Co-op pays the mortgage, maintenance and builds a capital reserve fund for future infrastructure repairs. The Co-op maintains the land and administers the park most likely by means of a property management firm.

How Do Residents Participate in the Administration of the Park?
by the editors

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In the CLT, residents vote for the MHA Board and on official actions of the MHA as determined by the by-laws of he MHA.
with an LEC residents vote for the Co-op Board and on official actions of the Co-op as determined by the by-laws of the Co-op.
Who Manages the Resale of Homes in Order to Insure Affordability and to Find Qualified Buyers?
Under the CLT the CLT does this, although residents may be able to find their own buyers as long as the purchasers meet the requirements of low and moderate income and any other qualifications specified by the CLT.
Under the LEC the Co-op manages sales, with the City screening all purchasers to ensure that they qualify under the income guidelines.
What Equity (Value) Do I Retain in My Property?
With a CLT, residents retain (own) the value of their home, per the land lease formula. Some portion of the monthly fee that goes towards the capital reserve may be recoverable at the time of a sale, but this is likely to be a small amount.
With the LEC, residents retain the value of their home per the City of Boulder's covenants formula.. There is also value to their Co-op share which can be recovered at the time of sale, but this will be subject to affordability restrictions set by the City.
A chart summarizing the different models for resident purchase of the Mapleton Mobile Home Park appears on the last page of this edition of The Mapleton Mobile-izer. The chart shows the CLT, Co-op (LEC) and 501(c)3. This third option would entail MHA purchasing the park; however, there is limited support for this option.
Here are the options that the MHA Board has been looking at to make a resident buyout of our Mapleton community a reality. There will be a workshop about these options at the quarterly meeting - November 56 at 5:30pm. We will talk about the pros and cons of each option on November 5th. Resldents will be voting to choose one optlon In early 2001.
In each option the City of Boulder is requiring that:

MHA:
MHA owns land and infrastructure: MHA oversees the management and maintenance of the Park Residents pay MHA a monthly fee to maintain the Park and pay the loan on the land. MHA would work with the City of Boulder to qualify buyers for resales

More info

The Mapleton Mobile-izer is published quarterly by the Mapleton Home Association and is distributed free to all residents of Mapleton Mobile Home Park.