Since 1984, ROC-NH™ has worked with owners – people and corporations – interested in selling their manufactured housing (or mobile home) parks to residents.
Many park owners who desire to sell contact us and their homeowners. They give residents the time to learn about the operational, organizational, legal and financial issues associated with park ownership and to decide whether to submit a purchase offer.
Other park owners offer to sell their park to residents after receiving another offer – solicited or not – from a potential buyer. Such offers trigger New Hampshire’s “Opportunity to Purchase Law,” which requires a 60-day notice to residents of the intent to sell and good-faith negotiations with the tenants regarding their potential purchase.
In either case, ROC-NH’s expert trainers and conversion specialists can facilitate the conversation, negotiation and transaction between park owners and residents.
Typically, our team will meet with a group of homeowners interested in learning about converting the park to resident-ownership. The residents will vote on whether to incorporate a consumer cooperative and allow homeowners to become members for a nominal fee.
The co-op’s members then elect an interim board of directors charged with collecting all the information needed to make an informed recommendation to the members about whether or not to submit an purchase offer.
If their offer is accepted, the New Hampshire Community Loan Fund’s Loan Review Committee studies the opportunity and votes to provide “predevelopment financing” to enable the co-op to hire legal counsel, engineers, environmental specialists and others. These professionals will perform and present all of the due diligence necessary required to complete this transaction.
The price the homeowners will pay is determined by negotiation between the homeowners and the park owner, just the park owner would negotiate with any private party. A key difference is that co-op members will look very carefully at the lot rent that will be required to cover the community’s operations and debt service. Typically, if purchasing the community requires large increases in lot rents, the members will choose not to purchase.
Park conversions typically are financed both by banks and by the Community Loan Fund. As with any commercial transaction, both lenders require an appraisal.