Where We All Agree

Sticker on a car in SLO seen this morning.

My momma always told me that you would catch more flies with honey than vinegar.  I was never sure why we wanted to catch flies … but you get the idea.

Last night the HOA Board held a meeting about the conversion.  Each board member repeatedly said he or she was not against the conversion, however, their actions seemed pretty vinegary.

It seems like we're all in agreement that the conversion MIGHT be a good thing … IF …

     IF … the lot prices are right. 

     IF … there is financing available. (See News Flash!!! for update on financing. - Right Column-)

     IF … rents for those who don't buy are protected.

The HOA Board seems to be taking the position that they want to "slow things down" … or stop the conversion until the owner can guarantee answers to the above. 

Rent Protections:  Susy Forbath has repeatedly explained the rent protections that will cover all but about 20 residents in the rent-controlled section of the park who do not qualify as lower income.  These residents are currently paying about $300 a month in space rent and could see their rents increase to market rate (about $800 a month) over five years.  The rest of us are on space leases that will continue as before the conversion.  If you're in doubt about whether or not you're on a lease, contact Joanne Mancarella in the office.

This is hissing!
Baby possum on my deck a few nights ago

Financing:  Murphy Bank has said they will offer "normal" mortgages … 20 year, current interest rate (currently about 5%), 80% of total value including your lot and your unit, no mortgage insurance.  Existing equity in your unit will count as your down payment.  The question came up at the meeting as to whether or not Murphy Bank is big enough to handle this conversion so I have an email into Richard Laxton asking him to respond to that question.  Remember though, not everyone will want to buy their lots and not everyone who wants to buy will do so on day one.

Murphy Bank has said they will be happy to come out and talk to all of us about the financing process.  For more about financing see the post Financing Highlights.

(UPDATE:  When asked if they could handle 50 sales in the first three months, Richard Laxton at Murphy Bank said: "50 lots is fine." After that, Community West Bank and others will probably be comfortable with lending in this park.)

Lot Prices: In spite of the fact that Susy Forbath spent two days in small group meetings explaining that the "residual" method of appraisal will NOT be used, Jeff McAlister still continued to regale us with the horrors of this method last night.  The official appraisal will not be available for months … slowing the process down or stopping it will not make this appraisal available any sooner.

Two Approaches:  Obstruction and Negotiation

We all seem to want the same thing … reliable information and enough understanding to make a smart decision based on our own specific situations.

There are two ways to get there … doing whatever possible to obstruct the process … demanding information that doesn't currently exist, claiming a lack of information when we each have a growing stack of questions, answers, legal citations and what ifs, describing information as misleading or deceitful, gearing up for a strong oppositional showing at public meetings through letters, petitions and so on.

Or … negotiation.  The owner has offered incentives over and above the legal requirements. If we get smart enough to thoroughly understand the process and how to get what we need … lot prices that are fair and affordable … rent protection for all non-buyers … financing for those who want and need it … then maybe we can negotiate a deal that works for everyone.

However, the more vinegar we pour on the owner, the less he's likely to be willing to negotiate.  I'd like to start a new conversation focused on negotiation. How could we structure this conversion to be a win-win for everyone?

I've had some people say that the lawyers … or the owner … or someone would "never do that."  But, until we ask, we'll never know.  

IF you think you'd like to buy your lot if all those above "ifs" can fall into the right places, and if you'd like to be part of the process of negotiating a win-win, please email me at jwycoff@me.com