Cooperatives Put Residents in Charge
Learn how the cooperatives that own and manage resident-owned communities (ROCs) work.
How Co-ops Work
In New Hampshire, manufactured-home cooperatives (co-ops) are corporations whose members, the homeowners, own and operate their community as a nonprofit. Each home is individually owned, but the land under the homes is owned by the cooperative.
Living in a resident cooperative is different than living in an investor-owned park because the homeowners aren’t simply tenants. The homeowners are members of a cooperative, co-owners of a community, and co-managers of a business.
These co-ops, which we call resident-owned communities (ROCs), are democratically managed. Each member household gets one vote, and members elect a board of directors to conduct the day-to-day business.
Rights & Responsibilities
Cooperative members have rights and responsibilities outlined in their bylaws, in standard parliamentary procedure, and in local, state, and federal laws. Members’ participation in the co-op can be as simple as handing out meeting flyers, or as involved as serving on the board of directors. All ROC residents have the right to be treated fairly, respectfully, and without discrimination; and to have equal access to services.
ROC residents must be members in good standing to be eligible to run for board office.
• Pay lot rents in full and on time
• Ask good and thoughtful questions at annual meeting
• Stay informed about issues in the community by observing board meetings and reading all co-op correspondence
• Adhere to board-approved policies and procedures, including the meeting code of conduct
• Disclose any conflict of interest with the co-op to the board of directors by completing a conflict-of-interest form
• Vote on matters brought to the membership
• Deliver valid complaints in writing to the board of directors
• Pay the membership fee in full (or per the subscription/membership agreement),
• Abide by community rules
• Treat community members with respect and be a good neighbor
• Hold the board accountable for its actions, including obeying all bylaws and applicable local, state, and federal laws
• Most importantly, be active in the community, as each member’s time and talent allow
• Be heard at a membership meeting
• Run for office at co-op elections, in accordance with the member-approved bylaws
• Inspect co-op records, in accordance with the member-approved bylaws, except those containing personal information about members
• Be given proper notice for all board and member meetings
• Deliver a valid petition to the board of directors when/if there is a serious issue to bring to the members for deliberation
• A fair hearing before expulsion
Why Live in an Affordable Housing Co-op
Living in a ROC has multiple benefits beyond affordability. They are communities in the truest sense, where homeowners have the ability to directly influence many aspects of their neighborhood.
Benefits of Living in a Co-op
Residents who cooperatively own the land beneath their homes control the future of their homes and their community. No one can close the park and force residents to move. “That security is priceless,” says Richard Walker of L.R.M.H.V. in Gilford.
Many members of resident-owned communities (ROCs) feel a great sense of accomplishment that encourages them to make major improvements to things like streets and water lines or rewriting their community rules.
The common goal of buying, owning, and managing a community also creates a greater sense of community. Neighbors who work with one another get to know one another.
Residents also take pride in belonging to a community much larger than their co-op. They are connected to other ROCs in New Hampshire through ROC-NH and across the country through ROC USA®, which is spreading the Community Loan Fund's park conversion strategy nationwide.
Co-op members have access to first-rate training and education sponsored by ROC-NH and ROC USA. Graduates of the state-level Community Leadership class earn college credit they can use toward a degree at Granite State College.
Homeowners in ROCs have control over their lot rent and enjoy higher home values. The co-op may be able to minimize rent increases by getting public funding for major repairs, like water and wastewater lines.
Homeowners in N.H. ROCs also may be able to get fixed-rate mortgage loans with relaxed credit terms and low down-payments. The Community Loan Fund offers Welcome Home Loans (link) for purchase, refinance, cash-out refinance and home equity.
- Individual homeowners do not own the land underneath their homes; the co-op does.
- Co-op members own equal shares of the corporation.
- Homes remain individually owned.
- Each co-op develops its own rules and policies.
- Co-op members control all major decisions, such as how money is spent, electing leaders, and setting and changing the bylaws or rules.
- All decisions are made by majority vote, and each member household has one vote.
Members elect a board of directors to make the co-op’s day-to-day decisions. The board may appoint committees to take on tasks.
The board and committee members must adhere to the co-op’s bylaws and rules, as well as to local, state and federal laws. They also are accountable to their fellow members and must run the co-op in a fair, consistent, democratic, and businesslike manner.
A co-op’s bylaws are the first place to look for answers on how the ROC should be managed. Some bylaws are regulated by the state, especially the Consumers’ Cooperative Association laws RSA 301-A.
- Residents can join the co-op at any time by paying the membership fee.
- Each homeowner has a lifetime right to occupy their lot, as long as they pay their rent and follow the ROC’s rules.
- Residents who do not join the co-op pay a non-member rent, which is typically higher than a member’s rate, and set in the ROC’s rules. They do not have the right to vote on co-op matters.
- Members can be expelled from membership in the cooperative (which does not mean being evicted from the ROC). Members who are expelled typically lose voting privileges and pay a higher lot rent.
- Members pay a fixed, one-time, fee that is refunded when they move out of the ROC.
- Membership fees earn no interest.
- A ROC’s success is directly related to its members’ volunteer participation and commitment.
- By participating in the co-op, members can help reduce costs, build a vibrant neighborhood, and grow as leaders.
- Participation can include everything from baking brownies for a community barbecue or holiday party, to operating the well system, to a term on the board of directors or a committee.
Co-op communities are owned and run by the homeowners. Residents have greater control over rules and bylaws, access to better mortgage financing (which increases the value of their homes), and more financial security because they have a say in lot fees and park improvements.
Be sure to let your local Realtor know you’re interested in buying or placing a home in a resident-owned community.
The Financial Benefits of Buying or Selling in a ROC
Manufactured-home owners who live in N.H. ROCs and borrowers who want to purchase a home in those communities can apply for a Welcome Home Loan from the Community Loan Fund. Fixed-rate loans for purchase, home equity and refinancing for debt consolidation or home improvement are available.
Before purchasing a home in a ROC, you must be approved by the cooperative’s membership committee.
Like any landlord, the co-op must abide by the Fair Housing Act and not discriminate against any race, color, religion, sex, handicap, familial status, or national origin. However, a co-op can reject applicants with criminal backgrounds or whose credit or income is insufficient.
Once you have a purchase and sales agreement on a home, you should immediately apply for membership through the co-op office by filling out a short form and agreeing to both a credit and criminal background check. The co-op is required to approve or deny membership within 14 days of accepting your complete application. Prior to closing on the sale of your home, the board of co-op will execute a “Consent” that is attached to the deed if you are approved for membership.
Co-op members who are active and engaged members of their communities have the best results selling their homes. Attractive, well-organized, and well-managed communities with happy members generally attract more enthusiastic buyers. So the best thing you can do to help to sell your home is ensure that your community is a great place to live. Buyers sense and appreciate the enthusiasm people have for their communities.
A reputable local Realtor can be a great resource when you are selling your home. Ask your neighbors for referrals and try to find one who is familiar with your ROC and who has experience selling manufactured homes. A Realtor can help you determine the value of your home, advise you on market conditions, and make suggestions for what you should or should not do to your home prior to listing it for sale.
Before hiring a Realtor, be sure you understand their relationship with you, their commission schedule, and specific plans to expose your home to as many potential buyers as possible. Real estate commissions are always negotiable, so interviewing more than one Realtor may serve you well.
Also, be sure your Realtor understands all of the financing options for your home, has membership application materials for your ROC in her or his office, and understands your ROC’s membership process.
Remember, people buy a lifestyle as much as they buy a home, so making sure your community has a reputation for being a great place to live will pay off when you sell your house.
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