Great News for the Delaware Manufactured Homeowners Community

I remember skeptics claiming that manufactured homeowners would never be able to procure the financing to buy their parks. That isn't true for one manufactured homeowners' community:

In a first for Delaware, a group of manufactured-home owners is poised to buy their park and operate it as a resident-owned community.

The Minquadale Village Homeowners Association has struck a deal to buy their roughly 90-lot community south of Wilmington for $1.9 million. No longer will residents own their homes and pay rent to the landowner. Instead, their monthly payments will go to pay the mortgage and maintain their community, and new residents will be given the opportunity to buy into the community….

On Friday, the Minquadale Village group cleared a legal hurdle, winning a ruling from Chancery Court Master Sam Glasscock III that they had satisfied the requirements of the new law. The deal is expected to close within 120 days.

I remember naysayers arguing that if manufactured homeowners bought their own parks, they wouldn't be able to afford the "fees"--that their rents under their landlords are more affordable:

Ken Shaw, president of the Minquadale Village association, said monthly rents at the park range from $380 to perhaps as high as $600 for double lots.

Under community ownership, the fees will be about $450, Shaw said. However, that figure could come down as new residents move in, because only 62 of about 90 lots are occupied.

I remember doubters stating that park owners would never want to sell their lots to their tenants, that they wouldn't find it profitable to do so:

Residents of manufactured-home communities, particularly in Sussex County, have long complained about soaring lot rents. Yet they have been able to do little about it, because their homes aren't easily moved and finding a new lot can be difficult.

The community ownership model not only solves that problem, but it can work to the landowner's advantage, said Keith Timko, vice president of real estate and innovative programs at Real Estate Advisory & Development Services.

That firm, known as READS, is a New Jersey-based nonprofit that helped the Minquadale Village homeowners through the process.

"We worked with the residents to formally create a homeowners association. We had to approve bylaws, draw up articles of incorporation," Timko said.

"Hopefully now we'll have a track record and be able to tell other investor-owners, 'Look, this is doable. You'll still make a healthy return on your investment,' " Timko said.

And what will the manufactured homeowners enjoy from owning their own park cooperatively?

Although the park is well-maintained, Shaw said, the new system will give residents a pride of ownership they never had before.

"It's a co-op," he said.

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