Promoting Homeownership
in Underserved Markets
David Clifton
Washington State
Housing Finance Commission
Manufactured Home
Community Investment Fund
Manufactured Home
Community Investment Fund
Helping manufactured-home
communities to buy the land
under their homes
Manufactured Home
Community Investment Fund
Homeowners are Vulnerable
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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
Manufactured Home
Community Investment Fund
Cooperative Ownership = Empowerment
From:
• Rising rents
• Poor maintenance
• Landlord’s rules
• $$ insecurity
To:
• Affordability
• Collective
investment in
improvement &
maintenance
• Rules set by owners
• Long-term security
Manufactured Home
Community Investment Fund
How to Help?
• 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
Manufactured Home
Community Investment Fund
Our Strengths
• 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...
Manufactured Home
Community Investment Fund
The Solution: Partners!
• 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
Manufactured Home
Community Investment Fund
The Loans
• 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.
Manufactured Home
Community Investment Fund
The Cooperatives
• 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
Manufactured Home
Community Investment Fund
Power of Partnership
Six communities in Washington
now self-owned or pending
BEFORE (1997-2008):
WSFHC helped 5 communities in 11 years
AFTER (2012-2014):
With new partnership, we’ve helped six in just 2 years
Manufactured Home
Community Investment Fund
The Communities
Whidbey Island
Duvall
Rochester
(pending)
Moses Lake
(3 communities)
Manufactured Home
Community Investment Fund
Duvall
Village
TheRiverside
Communities
• Historic rural town east of Seattle
• Land prices climbing
• Manufactured-home
community
Whidbey Island
on prime real estate between
Main Street & river Duvall
• Homeowners’
first 2 attempts
to Lake
Rochester
Moses
(3 communities)
purchase failed—but partners
overcame barriers
• 26 affordable homes preserved
Manufactured Home
Community Investment Fund
The
Communities
Thundering
Pines
• Near Naval Air Station Whidbey
Island (NW of Seattle)
• Neglected by landlord;
Whidbeyrundown
Island
• Neighbors determinedDuvall
to save park
from development
• 59 affordableRochester
homes preserved—and
Moses Lakefund created for
(3 communities)
• critically
59 homesneeded
preserved
improvements
“I see more and more of our community catch co-op fever! The sense of
community and pride is awe-inspiring!” --Thundering Pines owner
Manufactured Home
Community Investment Fund
Moses
Lake Communities
The Communities
• Three “mobile home parks” in
Eastern Wash. town of 20,000
• Portfolio sale to three separate
Whidbey Island
co-ops – 113 homes total
Duvall
• Included Mercy Loan Fund
financing
Rochester
Moses Lake
(3 communities)
• Many Spanish-speaking residents
• Neighbors feel safer, are taking
more pride in homes
Downpayment Assistance
Partnership Programs
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
More Information
• Visit us at wshfc.org!
• Contact:
David Clifton
Assistant Director,
Multifamily Housing & Community Services
david.clifton@wshfc.org
(206) 287-4407