Residents Reject Community Owner’s Offer, Go Back to Court

mhc thinkstock.com  creditFollowing up on a story MHProNews last covered Sept. 22, 2014 regarding a 16-year battle between residents of Naples Estates MHC and the owner, Norton Karno, over residents’ attempt to buy the community in Florida, a settlement, if approved, would leave the community in Karno’s hands but he would add amenities—shuffleboard, a pool, new community center, resurfaced roads, new homes– and set the rent for three years. After three years the rents would be market rate. The residents of the 55-and-older, 484-homesite community overwhelmingly voted to reject the offer, 241 to 117 and continue pursuing the opportunity to buy the MHC.

The battle began in 1998 when Karno sold the community without giving the residents first right of refusal, and has been in and out of the courts since then. There are currently seven lawsuits pending, some between the residents, and others between the residents and the owner. Karno raised rents 67 percent in 2007, reducing it to 46 percent after legal wrangling, and then in Nov. 2013 began suing to evict residents who could not afford the increase, according to naplesnews.com. One of the issues before the court currently is the value of the property should the residents earn the right to make it a co-op. While Karno contends the residents’ attorney, A.J. Stanton, did not show up for the closing in July, Stanton replied the price of the community was still in dispute, claiming Karno does not have clear title to the property because he stopped paying the mortgage. ##

(Photo credit: thinkstock.com-manufactured housing community)

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