Posts Tagged ‘rate increases’

High Demand for Manufactured Homes in Manitoba, but limited spaces in MH Communities

August 23rd, 2013 Comments off

credit-cbc-news-Demand for Canada’s version of manufactured housing is rising rapidly in Manitoba, at the very time spaces in provincial land lease communities are scarce. With single family home sales in the region averaging $285,000, a new manufactured home in Manitoba for $115,000 looks very reasonable. So it is no surprise that sales rose 11% in 2012 over 2012, and sales are up some 20% in 2013 over 2012. However, the sad reality of the impact of rent control measures are playing out here in a dramatic fashion. Manufactured home community (MHC) owners are limited in their options for development due to laws that place a 1% annual caps on rate increases. Choking off return on investment options for MHC owners causes some to sell their property for other uses, which then displaces residents who are unable to find a space in another land lease MH Community. One such community is Kingsway Kort in Brandon, where resident Colleen Weisbrodt is one of 140 households forced to move due to the park’s closure. Weisbrodt can’t find a vacancy in another community, which Glendale MHC owner Kenny Choy, explains to CBC News is common. Choy’s community has 230 home sites on 30 acres of land and has been full for 10 years. Current law creates disincentives to develop, in spite of the market demand for affordable manufactured homes. ##

(Video credit: CBC news)

DE Senate Passes “Rent Control”

May 11th, 2012 Comments off

As follow-up to a story we posted May 3, 2012, after a very long debate, the Delaware Senate finally passed Senate Bill 205 that limits rent increases in MHCs to changes in the consumer price index (CPI). Higher increases would need to be approved by an advisory board to the governor, and justified by planned capital improvements and operational expense. Opponents say it is a form of rent control which will decrease investment in MHCs, and lead to less affordable housing. Supporters of the measure say the measure will force the owners to justify rate increases. As Delawareonline tells, similar measures have failed to pass over the years, and this one narrowly passed the Senate. It now goes to the Democratically-controlled House of Representatives.

(Image credit: Wikipedia Commons—Delaware state flag)