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HomeMy WebLinkAboutRes 308 Mobile Home Parks to Resident Ownership • a PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM DATE: JUNE 8, 1995 TO: EXECUTIVE DIRECTOR,HONORABLE CHAIRMAN AND MEMBERS OF REDEVELOPMENT AGENCY BOARD FROM: TERESA L. LA ROCCA,HOUSING PROGRAMS COORDINATOR SUBJECT: RESOLUTION ADOPTING POLICIES AND PROCEDURES REGARDING THE CONVERSION OF MOBILE HOME PARKS Recommendation: That the Agency approve Resolution No. 308 adopting policies and procedures regarding the conversion of mobile home parks to resident ownership. Background: As a result of the Agency's involvement in the conversion of Portola Palms Mobile Home Park and numerous outstanding requests from other mobile home park residents within the City for conversion to resident ownership of their respective parks, it has become necessary to establish policies and procedures outlining a mechanism which will be followed in evaluating the feasibility of a park conversion prior to the Agency making a firm commitment to become involved. Currently,three mobile home parks have requested consideration from the Agency for conversion. The policies will provide staff with guidelines to follow in evaluating conversion feasibility including resident support, financial feasibility without Agency assistance, resident demographics, including income, resident financial ability to acquire,resident safeguard guarantees,preparation of a conversion feasibility report to include management plan and budget, hazardous waste study and infrastructure engineering study. Agency assistance to low and moderate income residents shall be available if financial assistance is in proportion to the number of very low, low and moderate income residents,affordability covenants are recorded,two-thirds of the park residents are full-time occupants,and conversion does not require ownership by a public agency. 419adzize,„‘L_BY RDA `'\ VERIFIED BY. Original on file with City Clerk's Office • Since the intent of the Agency is to create affordable housing for low and moderate permanent residents, staff will begin working with our mobile home park consultants, PMW Associates,to conduct a survey of the three parks which have submitted requests for conversion consideration in order to determine resident makeup and establishing percentage of full-time vs. part-time occu . a Rocca Housing Programs Coordinator mh Attachment 2 S • POLICIES AND PROCEDURES REGARDING THE CONVERSION OF MOBILE HOME PARKS TO RESIDENT OWNERSHIP BACKGROUND Mobile home parks represent a significant source of affordable housing and community security for low and moderate income families and senior households, many of which subsist on limited or fixed incomes. Conversion of mobile home parks to resident ownership provides an effective means whereby residents can be assured greater financial stability with respect to housing costs, enhanced control over the management of their park, and security from the threat of park sale or closure. The Palm Desert Redevelopment Agency generally recognizes the benefits of resident- owned mobile home parks; However, in order to assure that mobile home park conversions work to the benefit of their residents, these policies and procedures have been developed. POLICY STATEMENT It is the policy of the Palm Desert Redevelopment Agency (Agency") to encourage the conversion of mobile home parks to resident ownership when the following conditions are met: (1) The individual or entity sponsoring the conversion provides documentation evidencing support by at least two-thirds of the mobile home park space occupants. (2) The conversion of the mobile home park includes safeguards which guarantee that no existing mobile home park resident will be displaced physically or economically by the conversion project or its implementation or operation. (3) The ownership entity which results from the conversion project agrees to place non- owned lots (e.g., those occupied by mobile home park residents who do not wish or cannot afford to purchase their space) under enforceable space rent restrictions in keeping with the existing City of Palm Desert rent control ordinance. • • • (4) A mobile home park conversion feasibility report has been submitted to and approved by the Agency, which includes the following components: (a) a financial feasibility analysis documenting: (I) a verified source of permanent financing to be used to purchase the mobile home park from the existing owner; (ii) a verified source of permanent financing to be used by individual residents in purchasing their spaces; (iii) a financial analysis which demonstrates that conversion of the park is financially feasible without financial assistance or participation by the City and/or the Agency. (b) documentation verifying the number of residents that have indicated interest in purchasing their space based on full disclosure as to estimated purchase cost inclusive of homeowners' association fees; © an analysis of demographics within the park relative to income and housing costs sufficient to verify that residents who have indicated interest in purchasing spaces will be qualified to do so; (d) a homeowner's association budget indicating the source and application of funds to be used to operate the park and assure adequate capital and debt service reserves on a long term basis; (e) a management plan for the operation of non-owner occupied spaces including projected space rents for residents who do not participate in a purchase program and, as an alternative, intend to remain tenants within the mobile home park; (F) a Phase I hazardous waste study reflecting the soils condition within the park proposed for conversion; (g) an engineering study indicating the condition of the park infrastructure including utility systems and common area improvements. The study should include estimated improvement costs for rectifying any substandard conditions and completing any appropriate rehabilitation and identify an appropriate capital reserve for replacement for purposes of establishing a homeowner's association budget. 2 • • It shall further be the policy of the Agency to consider providing financial assistance, directly or indirectly, for the conversion of mobile home parks to resident ownership only if(1) such assistance serves to preserve, create or improve low to moderate income housing resources, and (2) the following additional conditions are met: (1) The public participation provided by the Agency is in direct proportion to the number of low to moderate income residents and very low income residents within the park. (2) The mobile home park proposed to be converted represents the sole and full-time residence of at least two-thirds of the households occupying spaces within the park. (3) Housing costs within the park are restricted by long term affordability covenants in not less than direct proportion to the amount of financial participation provided by the Agency in accordance with California Community Redevelopment Law. (4) The proposed mobile home park resident conversion program does not require the long term ownership or management bythe City, Redevelopment Agency or 9 tY P 9 Y Housing Authority, or any subdivision of the City, Redevelopment Agency or Housing Authority. •