 |
| View from the top. This is NOT Long Beach. |
At the September 10, 2013, HOA meeting, Jeff McCallister read a letter from attorney David E. Loop. It was a very disturbing letter that painted a picture of a conversion gone wrong … a park where lot prices were too high for most residents, where resale values plummeted, where rents were escalating and almost a third of the park was "abandoned," empty, or for sale, where the conversion "has been an unmitigated economic disaster."
It scared me and probably everyone else sitting there that night. The research I've done had been leading me to think that conversion will be a very good thing for a lot of people and will actually protect the park investment in the long run while leaving residents who want to rent basically unaffected (with the exception of about 20 non-lower-income residents currently on rent control and paying around $300 per month … their rents will escalate to market rent (current about $800 a month) over the next five years.)
I was happy with the details of what I was finding, however, Loop's letter created doubt and fear. So, I set out on a journey to find the "rest of the story."
What now scares me more than anything is the willingness of people to spread misinformation, distort the truth, lie by omission and, sometimes, just plain lie. Mark Twain probably said it best when he said there are lies, damned lies and statistics.
My Pledge to you: I will tell you what I think but I will always provide the sources and research that got me there so that you can check out the rest of the story for yourself. RIP Paul Harvey.
The rest of the Windward Village story:
 |
| Current listing of a 1977 Home in Windward Village MHP, Long Beach |
Windward Village Mobile Home Park in Long Beach is a 303-unit, gated, 24-hour guarded park similar in amenities to ours. The park conversion began in 2008 and many of its residents were caught in the financial crisis of that time, losing jobs as well as investments in the stock market and retirement plans. While the residents supported the conversion, sales were slow because of the financial crisis and the general age of the units (pre-1977 models could not qualify for financing.)
There are now 53 residents who have purchased their lots and the assistant manager states that they have sold 19 this month. This park has a high percentage of older homes and it is gradually being upgraded. Today's current listings on the website shown below shows 10 units for sale, most in the $230-240K range with a year built of 1977-1978 for all but one of them. Lot prices run about $152K … so the value for these older units is still holding in the range of $70-80K. HOA fee is $188 per month.
Loop's letter implies that, because of conversion, residents are now forced to pay high space rents and that Long Beach has "lost the park as an affordable housing resource." The assistant manager stated that before conversion, rents were averaging "$880 - $980" a month.
Steve Iverson, a realtor who is actively marketing properties within Windward Village, states that one of the issues with after-conversion sales is that agents, appraisers and lenders often do not understand how to market the property as a "single family home within a planned development." His take is that it takes a team approach to make a conversion successful. He has also offered to come up and talk with us. As soon as the temperature within the park cools down here, we will take him up on this generous offer.
Sources: Kathy Jones, Assistant Park Manager, Windward Village
Steve Iverson, Realtor, Keller-Williams
Gerald R. Gibbs, President, The Associates Group for Affordable Housing, Inc.
a California Nonprofit Public Benefit Corporation*
Windward Village website: http://windwardvillage.com/current-listings/
Details:
Interview with Kathy Jones: "Conversion is awesome!" "Come see my park." "We have 19 closings this month." "Space rent PRIOR to conversion was $880-980 per month on average."
Email from Gerald R. Gibbs …
Dear Ms. Wycoff:
Your message to our assistant park manager has once again proven the persistence of incorrect information. I am enclosing a copy of our response to the original request to purchase the park, please note this is an e file and does not have the formal letter head upon which it was printed. Since that letter was written the park total sales have increased to 53 and we have 7 more in escrow and I just received a demand to close three more of those escrows.
Unfortunately this conversion was completed at a time when our nation was going through a financial crisis not seen since the great depression. We are now able to sell lots to both the present residents as well as outside buyers and people are installing new homes. The number of empty homes was primarily due to the total loss of income in this working persons park. The Associates group has in fact a number of those homes which have been saved and converted to lower income rentals pending those persons being able to purchase and stop paying rent. Unfortunately a number of the homes that banks foreclosed upon are in such poor shape that they are a total loss. We have continued to maintain those exteriors and lots to ensure that the park is an excellent place to live and not downgraded by the economic pressures that led to the former home owners downfall.
If someone is attempting to use this as leverage to defeat future conversions the action is misplaced. The residents of this park fully supported the conversion, but in spite of the support lots were very slow in selling initially due to the poor economy. Our non-profit has continued to maintain the park and it Is now moving forward after a tremendously bad economy which fell at the start of the sales activity. Thank you for listening
Gerald R. Gibbs, President
The Associates Group for Affordable Housing, Inc.
a California Nonprofit Public Benefit Corporation*
110 E Avenida Palizada, Suite 201A
San Clemente, California 92672-3956
(949) 492-3825 | (949) 492-3697 fax
The Associates Group for Affordable Housing, Inc. is the supported public benefit nonprofit corporation for the following entities. Email sent from this account may be sent on behalf of the following entities:
The Associates Group-Windward Village
The Associates Group-Cedar Hill
Homes for sale in Windward Village as of 9/19/2013: http://windwardvillage.com/current-listings/ Each of these units were built in 1977 or 1978 except #291 which was built in 1999.
|
| Long Beach | $199,000 | 3 | 2 | 1,440 | Active (New) | ||||||||
| Listing Courtesy Of: Keller Williams Coastal Prop. | ||||||||||||||
|
| Long Beach | $223,900 | 2 | 3 | 1,524 | Active | ||||||||
| Listing Courtesy Of: R & B Communities | ||||||||||||||
|
| Long Beach | $229,000 | 2 | 2 | 1,300 | Active | ||||||||
| Listing Courtesy Of: CENTURY 21 Action ! | ||||||||||||||
|
| Long Beach | $229,900 | 3 | 2 | 1,600 | Active | ||||||||
| Listing Courtesy Of: CENTURY 21 Action ! | ||||||||||||||
|
| Long Beach | $232,500 | 2 | 2 | 1,800 | Active | ||||||||
| Listing Courtesy Of: Keller Williams Coastal Prop. | ||||||||||||||
|
| Long Beach | $237,000 | 2 | 2 | 1,440 | Active | ||||||||
| Listing Courtesy Of: CENTURY 21 Action ! | ||||||||||||||
|
| Long Beach | $239,000 | 2 | 2 | 1,200 | Active | ||||||||
| Listing Courtesy Of: Keller Williams Coastal Prop. | ||||||||||||||
|
| Long Beach | $239,900 | 3 | 2 | 1,325 | Backup Offer | ||||||||
| Listing Courtesy Of: R & B Communities | ||||||||||||||
|
| Long Beach | $239,900 | 3 | 2 | 1,440 | Active | ||||||||
| Listing Courtesy Of: Century 21 Allstars | ||||||||||||||
|
| Long Beach | $249,900 | 3 | 2 | 1,600 | Active | ||||||||
| Listing Courtesy Of: CENTURY 21 Action ! | ||||||||||||||
