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Posts Tagged ‘Lowry Grove’

“Undesirable” – Community Owner Sues City for Fraud

August 22nd, 2018 Comments off

 

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I am haunted on a daily basis that I have blood on my hands because of the fact that I was drawn into this unwittingly and duped by the city,” said Brad Hoyt, developer of Lowry Grove, in St. Anthony, MN.

 

Hoyt’s company, the Village, bought and closed Lowry Grove and is now suing the city of St. Anthony for fraud and civil conspiracy.” The Star Tribune’s Hannah Covington said, the suit “alleges that city officials induced the company “to close the mobile home park in order to rid the City of low-income, multicultural citizens that the City deemed undesirable.””

Hoyt says he was led to believe that he would get tax-increment financing (TIF) support to turn the mobile and manufactured home community into higher density multi-family housing.

The video below provides some context from last year, but explains some of the issues being raised in this new suit.

 

Lowry Grove drew regional and national attention. A bill was floated by Minnesota Democratic Congressman Keith Ellison that proposed a path to save some communities like Lowry Grove.  The bill called for incentives to owners who sell their communities to residents, instead of to developers or other investors.

Kinzler, Gallagher on Congressman Keith Ellison, the MH Industry, and Manufactured Home Communities

 

A prior report on this same case has been tracked for years by the Daily Business News, with one of those prior reports linked below.

Federal HUD Fair Housing Discrimination Complaint Case Update 

 

City Fights Back

City Manager Mark Casey statement said the city plans to fight the “ridiculous lawsuit.”

The city sees this lawsuit as completely without merit,” said Casey. “Mr. Hoyt apparently made a horrible real estate transaction that displaced hundreds of honorable people and now wants to shift his losses onto the city, which is wrong and irresponsible.”

Hoyt’s federal lawsuit was filed Monday. It alleges the city of leading the Village to purchase Lowry Grove for $6 million in 2016 without intending approval of the high-density multifamily housing project which Hoyt planned to replace the community.

Enough is enough,” Hoyt said Tuesday. “This is about a city … acting together in a conspiracy to commit fraud, the goal being to use us to rid them of the nonwhites and low-income people and make sure they don’t come back.”

A 712 unit proposal for multi-family housing was turned down last October. Hoyt redid the proposal, apparently based upon city feedback, for 430 units instead. When The Village submitted the lower-density plan, that was approved in March, based on “promised TIF” assistance, according to the lawsuit.

During a May working session, a financial consultant’s memo advised city leaders that “the projects could be developed without any TIF assistance from the City,” per city records.

Hoyt said “They double-crossed us again.” He has sued other metro area cities over development projects, said that prompted the lawsuit.

 

The Lost Fight

Residents tried to keep Lowry Grove open, including a complaint that the plan broke state law. That action was dismissed.

As industry professionals know, when an older community is closed, pre-HUD Code mobile homes and some older HUD Code manufactured homes may be hard to move for a practical or economic reasons.

Some residents lost their homes. Covington said “Some, like Jason Mitchell, ended up homeless.”

I wandered around downtown not knowing what I was going to do,” said Mitchell, 40, who now lives with his mother in a mobile home two hours from the Twin Cities. “I think they are quite literally trying to eradicate poor people and Hispanics from this neighborhood.”

It was mostly lower-income people. I think the city just didn’t want us there anymore,” said Bob Wargin, 67, who was a 26 year record. “It was probably in their eyes a blight on their beautiful little St. Anthony community.”

Frank Adelmann took his own life days before the eviction deadline.

Hoyt and others feel duped and manipulated. “I am haunted on a daily basis that I have blood on my hands because of the fact that I was drawn into this unwittingly and duped by the city,” he said Tuesday.

The case is a reminder of other troubling ones in various parts of the nation. Some of those are reflected in the related reports, linked below. ## (News, analysis and commentary.)

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Related Reports:

Hundreds of New Manufactured Home Communities Opened, But How Many Have Closed? Industry Research Result$

Federal HUD Fair Housing Discrimination Complaint Case Update 

 

Suicide, Sadness and Questions on How the Manufactured Home Industry Should Address Community Closures

Different Kind of Community Closure, Continues Grabbing Headlines in Mainstream News

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

Manufactured Home Communities, Retailers, Developers Face Disruptive, Troubling Trend

Federal HUD Fair Housing Discrimination Complaint Case Update 

August 22nd, 2017 Comments off
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Scales, gavel, law image credit, WikiCommons.

According to a report to MHProNews by the Minnesota Manufactured Housing Association (MMHA), the Department of Housing and Urban Development (HUD) just finished an investigation that set out to determine whether or not community residents were denied the first right of refusal to buy the now-closed, Lowry Grove.

Under Minnesota law, homeowners in a manufactured housing community automatically get the first right of refusal if the community owner wants to sell the property.

That law provides a path for the community to stay together as a cooperative.  In the case of a possible redevelopment, it may mean the difference between keeping your manufactured home, or being forced to move homes to a new location…

…if that alternative locale is available.

The Daily Business News has previously reported on the impact the closure had on residents.

Credits are as shown, to see the latest story on the Lowry Grove saga, click the image above. Note: the Manufactured Housing Institute (MHI) and their National Communities Council were contacted for comments, and provided none.

Here’s the ruling, per MMHA.

Regarding its dismissal of the disparate impact claim, HUD stated;

To establish a prima facie case of discrimination in violation of Sections 804(a) and 804(b) of the Act based on disparate impact, the following elements must be met:

  1. The policy or practice in question negatively affects a particular protected class to a much greater extent than it affects others; and
  2. The disparity is actually caused by the policy or practice in question.

The first element has not been met because Complainants have not identified a facially neutral, generally applicable policy or practice; rather, they have identified a single act or decision of Respondent Lowry Grove to sell the Park to Respondent Village. Secondly, most of the residents of the Park are non-Hispanic and presumably, low income, thus, in all likelihood, the decision does not have a greater impact on Hispanic residents.

The second element is also not met because there is no policy or practice identified by Complainants. Rather, there is a single occurrence of the sale of the Park.

  1. CONCLUSION

For the reasons set forth above, there is no reasonable cause to believe that the Act was violated, as alleged. This Determination only addresses the violations of the Act alleged in the complaint and does not address any potential violations of any other provision of law. A determination is limited to the facts developed in a specific investigation and is not a determination of compliance with all requirements of the Act.”

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Collage of MMHA images, provided under fair use guidelines.

Interestingly, the investigation closed about the same time as some sort of additional relocation compensation for residents was agreed on by the city and the developer.

If you would like to read the full report from the Minnesota Manufactured Housing Association, click here.

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Offical photo, Keith Ellison, (D-MN). TExt and collage credit, MHProNews.

To see a recent and related article on Rep. Keith Ellison’s proposal for avoiding community closures, click here. ##

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for MHProNews.

 

 

 

Owner Alert, DNC Vice Chair, Rep Keith Ellison Introduces National Manufactured Home Community Bill

July 27th, 2017 Comments off
RepKeithEllisonSponsorsBillImpactingManufacturedHomeCommunitySalesDailyBusinessNewsMHProNews

Official photo, DNC Vice-Chair, Rep. Keith Ellison, (D-MN). Text and collage credit, MHProNews.

A new bill introduced to the U.S. House of Representatives by Rep. Keith Ellison (D-Minn.), would provide a federal tax incentive for manufactured home community owners who are looking to sell the community, with a catch.

That incentive will occur only if they sell their community to residents or to a non-profit developer, which in turn uses the property for manufactured home residents for at least the next 50 years.

I’m … heartbroken for the thousands of families who were evicted from their communities when the land under their homes was sold,” U.S. Rep. Keith Ellison, D-Minn. said in a statement. “My bill gives residents a fighting chance to compete with developers and save their homes and communities.”

As one source told MHProNews, for Ellison – this is in part a ‘home town issue’ that relates directly to his constituents.

A companion bill has also been introduced in the Senate.

The bill proposed by Ellison was introduced following the closure of Lowry Grove, a manufactured home community which was sold for $6 million to a for-profit developer.

SuicideSadnessQuestionsHowManufacturedHomeIndustryShouldAddressClosures.

Credits are as shown, to see the latest story on the Lowry Grove saga, click the image above. Note: the Manufactured Housing Institute (MHI) and their National Communities Council (NCC) were contacted for comments, and they provided none. 

Ellison’s bill is being called the Frank Adelmann Manufactured Community Sustainability Act, to honor the resident who took his life days before the Lowry Grove closed.

Proposed Highlights

The bill would give MH community owners a 75 percent federal tax credit for selling to residents or non-profit developers. According to Star Tribune, that could be the difference between paying $150,000 in capital tax gains  if selling to a for-profit developer or investor, or paying $37,500 for selling to residents or non-profits.

That example provided is based on a sale of $1 million.  

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Award winning, Paul Bradley, President, ROC USA.

If I had a dollar for every operator who has complained about the tax implications of a sale, I could offer a tax incentive personally!” So said Paul Bradley, President of ROC USA, which has an affiliate in the state, Northcountry Cooperative Foundation (NCF). NCF is one of eight Certified Technical Assistance Providers (CTAPs) for ROC USA.

Some States have already Responded to MH Community Closures

There are some states – including Washington, Oregon and Montana – that reportedly offer similar tax incentives for community owners who choose to sell to residents or a non-profit developer.

Offering tax breaks to community owners who sell to their residents is a win/win response from Rep. Ellison,” Bradley said.

Some industry professionals contacted by MHProNews for reaction said they had too little information to comment, or had mixed feelings about the proposal.  Those opposed would not go ‘on the record’ at this time.

However, Jay Hamilton, Executive Director of the Georgia Manufactured Housing Association (GMHA) pointed out some of the pros and cons of the proposed bill.

Intentions Can Change When the Federal Government Gets Involved, Pros and Cons

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Jay Hamilton, Executive Director, Georgia Manufactured Housing Association (GMHA).

I think it’s an excellent idea to give community owners a first right of refusal when an owner sells a community. It’s only fair.  A federal tax exemption could possibly encourage this alternative,” said Hamilton.

However, I also believe in the economic freedom to sell your property whenever you want at the highest possible bid,” he said. 

Hamilton elaborated, saying in an email to MHProNews that “If the owners right to make a Capital Gain can be accomplished at the same time while giving the residents ownership opportunity that’s great. Both parties achieve their economic freedom, so to speak.”

Minnesota Manufactured Home Association (MMHA) Statement

MMHAMinnestorManufacturedHousingAssociationDailyBusinessNewsMHProNews

MMHA Logo and tag line.

Manufactured homes are Minnesota’s largest source of non-subsidized, affordable housing, accounting for nearly 15 percent of all new single-family homes sold. For many Minnesotans, manufactured homes represent the difference between joining the ranks of those realizing the dream of homeownership, versus remaining perpetual renters,” the state’s industry association told MHProNews in an official statement related to the proposal.

With respect to the Lowry Grove issue, “Unlike most states, Minnesota has a dedicated Manufactured Home Relocation Trust Fund, established in 2007, with the support of the industry and advocate groups, to provide reimbursements for relocation costs to displaced homeowners or buyout older homes that may be structurally unable to be relocated, if there is a closure.”

Minnesota Manufactured Home Association puts this into perspective, pointing out that nearly 25 percent of all owner occupied homes considered affordable for families making under the median income in their state are manufactured homes.

Manufactured homes are Minnesota’s largest source of non-subsidized, affordable housing, accounting for nearly 15 percent of all new single-family homes sold. For many Minnesotans, manufactured homes represent the difference between joining the ranks of those realizing the dream of homeownership, versus remaining perpetual renters.”

Minnesota has also found a way to help residents who might find themselves displaced due to the closure of a manufactured home community, by allocating funds that are specifically used to help residents of these homes relocate or obtain new housing if there is a closure.

MinnesotaManufacturedHousingAssocMMHALogoCommunityHomeInteriorDailyBusinessNewsResearchReportsMHProNewsUnlike most states, Minnesota has a dedicated Manufactured Home Relocation Trust Fund, established in 2007, with the support of the industry and advocate groups, to provide reimbursements for relocation costs to displaced homeowners or buyout older homes that may be structurally unable to be relocated, if there is a closure,the MMHA said.

The MMHA appreciates the efforts of Congressman Ellison in addressing the preservation of workforce housing with the introduction of his bill, (H.R. 3296).”

Their statement to the Daily Business News added, “At the state level, in 2017, the Minnesota GOP controlled Legislature and DFL Governor agreed to a bill establishing a Workforce Housing Development program that specifically includes statutory language qualifying new manufactured homes, located on private lots, on leased land, or in manufactured home communities to participate in Minnesota’s new workforce housing program for Greater Minnesota.”

The bill introduced by Rep. Keith Ellison is intended to reduce the likelihood of the circumstances at Lowry Grove from being repeated.

I also see why homeowner associations are asking for this.  They get that the community owner, like everyone in real estate, is looking at the bottom line.  It’s an option that will help sellers and buyers alike accomplish their goals,” Bradley said. # #

Related topic: the Daily Business News recent article on economic freedom, here.

Editor’s Note: the full length statements of those who responded will be published soon on the Industry Voices guest blog.  Once published, they will be linked up as part of an update on this specific article.  Other inputs from industry professionals and investors on this developing issue are welcome.

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for MHProNews.

 

 

 

 

 

Challenges Loom for Ohio MHC Residents

June 2nd, 2017 Comments off
ChallengesLoomforOhioMHCResidentscreditWDTN-postedtothedailybusinessnewsmhpronewsmhlivingnews2

Homes in the Glen Acres community. Residents have 180 days to vacate. Credit: WDTN.

As the Ohio Manufactured Homes Association (OMHA) wages a battle in the state capital for manufactured home owners, residents of a community in Fairborn face an uncertain future.

According to WDTN, residents of the Glen Acres Mobile Home Park have been notified that they need to find a new place to call home.

Earlier this week, residents were served notices to vacate the property pending the sale of the land to the city of Fairborn “for a use other than as a manufactured mobile home park.”

The notice told residents that they have 180 days to vacate the property, and was sent by current owners McNamee & McNamee, PLL.

Obviously relocating your manufactured home and belongings will entail significant expense,” the notice read.

In order to ease that transition the City of Fairborn has agreed to provide you with $2,500 in financial assistance upon the condition that your relocation is accomplished no later than 180 days after you receive this notice.”

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Credit: WDTN.

When questioned, the city provided their view regarding responsibility.

The city has been engaged in negotiations to purchase the park [sic] however, no deal has been finalized,” said Fairborn Assistant City Manager Michael Gebhart.

It will probably likely be September or October before we would close if everything goes through. If it does, we would make available $2,500 to each property owner to help with their move.”

While city officials and the community owners work on the details, some residents are making their feelings known.

This is not a time that I need to be worrying about where I’m going to live,” said resident Patricia Ann Collins, who says she’s dealing with being handicapped and having heart issues.

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Resident Patricia Collins. Credit: WDTN.

At this point, it looks like I’m going to have to move into a tent.”

Having been a resident since 1986, Collins says she feels like an afterthought.

It makes me feel like anyone that lives in a mobile home [sic] is always looked down on to begin with and him not calling back makes me feel like I’m a piece of trash,” said Collins.

Another resident, who chose to remain anonymous, also pointed out an issue with some of the older homes.

You can’t relocate a 25-year-old trailer [sic]. The axle and everything underneath is too old. None of the companies around here are willing to do it.”

ChallengesLoomforOhioMHCResidentscreditGoogle-postedtothedailybusinessnewsmhpronewsmhlivingnews

Fairborn, shaded in red. Credit: Google.

Gebhart says that it will be taxpayer money that is used to relocate resident’s homes, and that the city will not purchase the land unless residents are gone.

It’s called a mobile home [sic] for a reason. Not to be insensitive, but for us to put up $2,500 to help with that move, that’s the most we can do,” said Gebhart.

 

Terminology Matters

As Daily Business News readers are already aware, terminology matters, and the comment by Gebhart provides another example of how long standing stereotypes and misconceptions are simply regurgitated.

For example, in a recent story on the differences between mobile and manufactured homes, MHProNews asked Urbana, Ohio Fire Chief Mark Keller to clarify details on a recent home fire reported in his town.

This fire involved a true mobile home and was not a manufactured home. I do not have the age of the mobile home available right now,” Urbana Fire Chief Mark Keller told MHProNews.

Mobile homes are inherently bad with fire conditions. They’re not really designed to withhold any kind of fire.”

Chief Keller was specific, because MHProNews directly inquired about the facts of the case, which allowed MHLivingNews to properly represent the facts of that sad incident.

But how can doing that correct-the-record once or occasionally be enough in the face of the thousands of such stories being reported a year?

For more on other communities throughout the U.S. in similar circumstances, including the case of the Lowry Grove community just outside of Minneapolis, click here. ##

(Editor’s Note: An in depth report on this topic of terminology and its impact on manufactured housing was posted by RC Williams this week, and published yesterday, at this link here. Publisher’s note, don’t miss this RC Williams report and analysis, take the time to digest the link below yourself, and then share it with others.)

Schooling Public Officials, Media on Trailers, Mobile Homes, Tiny Homes, and Manufactured Homes

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RC Williams, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

 

(Copyright Notice: This and all content on MHProNews and MHLivingNews always have been and are Copyrighted, © 2017 by MHProNews.com a dba of LifeStyle Factory Homes, LLC – All Rights Reserved. No duplication is permitted without specific written permission. Headlines with link-backs are of course ok. A short-quoted clip, with proper attribution and link back to the specific article are also ok – but you must send a notice to iReportMHNewsTips@mhmsm.com of the exact page you’ve placed/posted such a use, once posted.)

Battle Over Community Owner’s Rights vs. Resident’s Rights highlighted in St. Anthony case

September 28th, 2016 Comments off

lowrygrovecreditstartribunestanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnewsResidents of the Lowry Grove community in the Minneapolis, MN suburb of St. Anthony lost their bid to block the sale of the property, according to a ruling by a Hennepin County Judge.

We continue working together to save Lowry Grove. We will organize more action,” said Antonia Alvarez, president of the Lowry Grove Resident Association, per the Star Tribune’s report. I understand they are very rich, but we have community support.”

The ruling is a blow to the residents who sued to keep the park open. A state law drafted in 1991 was designed to give manufactured home owners the right of first refusal to buy land in the event it was put up for sale.

paulbradleycredtimhpronewsstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnewsPaul Bradley, president of ROC USA posed the following question to MHProNews. “How can we promote homeownership and sell new homes on leased land and at the same time close communities?”

Judge Joseph R. Klein wrote, in part, that the statute “…does not grant them an unfettered ability to purchase the park. They were not deprived on that right because it was never, in fact, granted to them.judgejosephkleincreditmncourtsgovstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnews1

 

This is believed to be the first major legal test of the law.

The owners of Lowry Grove, LLC notified residents in April that they intended to sell the property to The Village LLC, a subsidiary of Wayzata, MN based Continental Property Group, for $6 million. The Village announced that they would close the park in a year and redevelop the 15 acres of land.

Fearing the loss of access to good schools and safe streets, the residents prepared to respond.

Under state law, residents had 45 days to match the offer. Homeowners partnered with Aeon Management, a Minneapolis based non-profit management company, to make a matching $6 million offer on June 10, the day of the deadline.

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Lowry Grove residents protesting.

The offer was rejected.

On June 13, the sale to The Village became final. Aeon Management and Lowry Grove residents sued, arguing that the law, and their civil rights, had been violated.

 

lowrygrovervparkcreditgoogleStAnthonyCaseHighlightsBattleOverCommunityOwnersRightsvsResidentsRights-DailyBusinessNews

The Lowry Grove RV park and manufactured home community is on a prime parcel of real estate, as this Google earth image reflects.

When the statue was passed, said Judge Klein, the intent was clear.

Should a park be sold contrary to [the law] the only remedy the residents in the park have is to sue under a violation of this law for something besides ownership of the land, said Judge Klein.

Explaining further, Klein wrote that lawmakers were balancing competing priorities when passing the statute, giving manufactured homeowners a tool to protect their homes while not overtly interfering with park owner’s ability to sell their property.”

tomastracicreditiremmnstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnews1We are pleased with, but not surprised by, Judge Klein’s ruling,” said The Village Vice President Traci Tomas in a written statement. “From the beginning, we’ve realized that this is a difficult situation for the residents. That has never been something we’ve taken lightly.”

Tomas has also denied violating the state statute, countering that residents didn’t meet all the criteria. She also shared where the Village’s focus is.

Right now, we are focused on those who have expressed a desire to complete their move before winter sets in,” Tomas said. “We are working with the City of St. Anthony so residents can submit applications to the Minnesota Manufactured Home Relocation Trust Fund for financial assistance that will help with their relocation.”

jimayottecreditmhpronewsusersrcdesktoppaulbradleycredtimhpronewsstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnewsJim Ayotte, Executive Director of the Florida Manufactured Housing Association (FMHA), provided commentary on a similar situation with the Denver Meadows community in Aurora, CO in his column on MHProNews. “It costs money to create affordable housing, which local governments don’t have, and it is more politically expedient to put the screws to a business owner and get favorable press for protecting a group of economically challenged homeowners.

This is unfair to the private sector and, quite frankly, should be unconstitutional,” says Ayotte. “What that said, it is the responsibility of all parties to do the right thing.”alanarthuraeoncreditmprnewsstanthonycasehighlightsbattleovercommunityownersrightsvsresidentsrights-dailybusinessnews1

Aeon Management CEO Alan Arthur commented, “I am sad that our world seems to value bottom line financial returns more than it does people.” Aeon is also exploring other legal options for Lowry Grove residents.

The struggle over community owner’s property rights vs. land-lease community resident rights continues, and the Daily Business News plans to track this story to its conclusion. ##

(Editor’s Note: Equity LifeStyle Communities Chairman Sam Zell’s view on property owners rights is published exclusively in a report on MHProNews, linked here.

(Image credits are as shown above.)

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RC WIlliams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News, MHProNews.

First Time First Right of Refusal Law in Minn. Will be Tested

August 11th, 2016 Comments off

Minn_mhc_Lowry_Park_closing__theuptake_credit postedDailyBusinessNewsMHProNewsFollowing the ongoing saga of the Lowry Grove manufactured home community (MHC) in Minneapolis that has filed suit to reverse the sale of their community for not being offered first right of refusal, as MHProNews reported Aug. 8, 2016, an amicus brief from the state attorney general’s office in support of the residents may tip the balance, according to lillienews. The state’s interest stems from the failure of the seller to offer it first to the residents as required by state law.

The community found a backer for the $6 million to match the buyers price, a nonprofit called Aeon that provided funding at the last minute, just as owner Phil Johnson inked the deal with Continental Property Group (CPG), led by President Traci Thomas. The new owner intends to develop the 15 acres, and has said she will discuss possible future plans regarding the property with city officials, including affordable housing.

There will, for sure, be an affordable housing component, I’ve said that all along, but how much, how many units, all of that stuff is yet to be decided,” Tomas said in an interview. She had originally offered more money than the state requires to help residents with relocation costs. When asked if the affordable units will be comparable to the $400 monthly site rent at Lowry Grove, she said no.

The residents of Lowry Grove would prefer to retain their tight-knit community as it stands. The case is scheduled is to be heard in court later this month. ##

(Photo credit: theuptake–Lowry Grove manufactured housing community)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Sunday Morning Recap-Manufactured Housing Industry News Aug 1-Aug. 7, 2016

August 7th, 2016 Comments off

Sunday Morning Recap Manufctured Housing Industry News Aug 1-Aug 8 2016 postedDailyBusinessNewsMHProNewsWhat’s New in public focused Manufactured HomeLivingNews.com

Loans – Financing – Mortgages for Manufactured, Modular and Mobile Homes

What’s New in Manufactured Housing Industry Professional News

Sale of Minn. MHC challenged by Attorney General. Section 8 vouchers can now but MH. Hall of Fame inducts Class of 2016. NC MH community being redeveloped. Two Conn. MHCs sold. Drew net sales rise 22%. HUD Code sales up 20%. Ritz-Craft expanding. Assisted Living modular homes on the rise. Maine MH community expanding. Muncie, IN gets Tiny Homes for homeless. Texas home sales set record. Patrick acquires electronics firm. Tenn. city bans Tiny Homes. FEMA providing homes for Calif. fire survivors. Texas home sales set record. Plus news and views about affordable housing you can peruse for decision-making as an MH Pro.

Saturday, Aug. 6 , 2016

Modular Container Homes Rising in Edmonton, Alberta

Friday, Aug. 5

Minn. Attorney General Files Brief to Halt Sale of Community to Developer

Class of 2016 Inducted into RV/MH Hall of Fame

Dow Comes Back Strong; MHCV Outgained the Dow, +1.79 percent

Bill to Use Section 8 Vouchers to Buy Manufactured Home Signed by President Obama

Redevelopment of MH Community in North Carolina Approved

RHP Acquires two MHCs in Connecticut

Thursday, Aug. 4

Drew Reports Net Sales 22% Above Last Year’s Comparable Quarter

Modular, Manufactured Homes Coming to Ute Mountain Indians

Skyline Advances +5.02%; Drew Industries Close behind at +4.88%

Production of HUD Code Homes up 20 Percent

Modular Homes Rising above the Ocean outside San Diego

Modular Home Builder Opening Third Plant in Mifflinburg

Wednesday, Aug, 3

Clayton Moving in where Champion Homes Moved Out

Sun Communities Beats Analysts EPS Estimate by $0.03

Dow Reverses Seven-Day Drop; Northstar Realty Finance Tops MH-related Gainers

Housing Affordability Data Suggestive rather than Definitive

Cavco Industries Set to Release Quarterly Financials

MH Community Owner Slapped with Lawsuit, Slaps back at Former Resident

Tuesday, Aug 2

Home Prices in Northwest Nearly Double National Average

Equity LifeStyle Properties, Inc. Yields ROI of 8.40 percent

Manufactured Housing-related Stocks Fall Except Nobility Homes

Assisted Living Modular Homes expected to Rise with Aging Population

Texas Home Sales Set a Record in Second Quarter

Affordable Housing Included in $500k HUD Grant to Oklahoma City

Mon. Aug 1

Tenn. City Bans Tiny Homes

Oil Falls Below $40/bbl again; Deer Valley Shoots Up 15+ Percent

Smart” Blocks Will Transform Our Lives-a/k/a Redefining ‘Blockhead’

Patrick Completes Acquisition of BHE, another Thermoformed Producer

An American August in MHVille – New Feature Articles Alert

FEMA Providing Manufactured Homes for CA Wildfire Victims

Sunday Morning Recap-Manufactured Housing Industry News July 24-July 31, 2016 ##

(Photo credit: MHProNews)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Minn. Attorney General Files Brief to Halt Sale of Community to Developer

August 5th, 2016 Comments off

Minneapolis__Lowry_Grove__MHVillage__credit postedDailyBusinessNewsMHProNewsUpdating a story MHProNews last posted July 5, 2016 regarding attempts by residents of the Lowry Grove manufactured home community (MHC) in north Minneapolis to forestall the sale of their community because the owner did not offer them first right of refusal before selling it to a developer, the Minnesota attorney general filed a friend-of-the-court brief arguing that the owner violated the law.

Manufactured housing offers many people the only realistic opportunity to become a homeowner,” the brief said. It added that the June sale to the developer “shows subterfuge and a design to circumvent residents’ rights.”

Lowry Grove was sold to a developer in June who intended to close the community and develop the 15 acres, uprooting the 95 families who lived there. Aeon, a nonprofit that focuses on affordable housing, agreed to match the $6 million selling price on a Friday, but by Monday the community’s owner had finalized the deal with the developer. The residents filed suit, arguing their right to buy the community had been denied, as mprnews  reports.

While the new owner had offered financial assistance beyond what the law requires, Attorney General Lori Swanson nevertheless said the new owner should be prevented from closing the community. “Any other conclusion would allow developers to circumvent residents’ rights and continue the eradication of manufacturing housing in Minnesota,” said the amicus curiae brief.

Swanson’s decision was also influenced by the consequences of decimating the supply of affordable housing in the area. “We know that in the Twin Cities we have a real lack of adequate supply of affordable housing, and mobile home parks can be a good form of affordable housing,” she said.

Further, Swanson said to her knowledge this law of first right of refusal has never been tested before in the state.

Traci Thomas, vice president of The Village, the company that purchased the community, said she has already worked with four homeowners to leave Lowry Grove, and that plans for another eight to move are pending.

The case is set to go before a judge at the end of August. ##

(Photo credit: MHVillage–Lowry Grove manufactured home community)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Twin Cities Trying to Preserve MH Communities as Affordable Housing

June 27th, 2016 Comments off

Minneanpolis__startribune__Jeff_Wheeler_credit__Lowry_Grove_MHCIn the wake of the sale of Lowry Grove manufactured home community (MHC) in the Minneapolis suburbs despite vigorous protests from the residents, and an attempted purchase by a nonprofit, as MHProNews reported June 17, 2016, the Metropolitan Council report says the easiest way to preserve affordable housing is to protect the remaining communities.

With 39,000 people living in 83 MHCs in the Twin Cities suburbs, the council has launched the Manufactured Home Park Preservation Project to save some of the communities at risk of closing and promote investment in aging communities. To that end, it is offering up to $250,000 in a matching grant to one MHC to help pay for connecting to the wastewater treatment system. As part of the deal, the community owner would likely have to keep rents affordable and the community open.

Almost 40 percent of the MHC residents are people of color, as opposed to 25 percent in the general population, according to startribune. Freya Thamman, a planning analyst with the Metro Council, said preserving the MHCs is much less expensive than building affordable housing, noting the 1,868 empty homesites in the area could provide housing for another 5,200 people.

Another Met analyst, Jonathan Stanley, noting it provides a homeownership opportunity that is often overlooked, said, “You can call this private unsubsidized affordable housing.”

However, the challenge of land underneath the homes becoming more valuable and the aging infrastructure have led to the closing of ten MHCs in the past 20 years. That, combined with the regulations Congress passed in the wake of the housing downturn has reduced the number of MH sales since 2001 by ten percent, even though the cost of living in an MH at $701 a month is much less expensive than the $1,262 a month average for traditional homeowners.

In the case of Lowry Grove, the sale to a developer has been completed; but with the help of the nonprofit Aeon, which made an offer comparable to the selling price, a lawsuit against the seller for failure to adhere to the state’s first-right-of-refusal measure may yet preserve the MHC as affordable housing for the residents. ##

(Photo credit: startribune/Jeff Wheeler–one of the older homes at Lowry Grove)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.