Tuesday, November 26, 2013

Taking One Question at a Time

The dunes in bloom.
On a pure numbers basis, the "for conversion" group lost last night at the South County Advisory Council meeting as a hand vote showed about 40 against, 8 for and 8 abstaining.  Of course, most of the park wasn't there to register their opinions one way or the other.

The public comments were passionate and, except for some opening remarks stating that "many people will lose their homes," and characterizing the law firm handling the conversion as "anything but honest," and "downright immoral," most of the comments seemed to be heart-felt statements displaying the spectrum of emotions around this issue … from fear and anxiety to anticipation about the conversion options. 

When it was all said and done the Council reiterated that the owners have the right to sell their property and voted to recommend approval to the Board of Supervisors … with three recommendations (detailed below). Unfortunately those recommendations don't follow state code which carefully prescribes the step-by-step process of conversion.

Metaphors are very powerful and one we've heard a lot was repeated last night: "I wouldn't buy a car if I didn't know the price."  It's a bad metaphor … for one thing a car is actually for sale, our lots aren't.  Right now, we're just going through a process that will turn them into legal real estate that can be purchased a couple of years from now.  The law, and simple fair dealings, require that we be fully informed about the process as soon as it officially begins so that we will have the time required to make our own decisions.

A better metaphor would be building a new house.  Imagine walking into an architect's office and saying, "I might want to build a house.  How much will it cost?"  A whole lot of questions would have to be answered first … how big? what style? when? where? and so on.

Conversion is like that … there are a whole lot of questions that have to be answered before the lots are legally mapped and appraised, the infrastructure evaluated and required reserves calculated, and budgets are drafted to establish homeowners' fees. It's going to take time and a lot of work to answer these questions.  

At this stage of the process, however, the County is tasked with answering two questions in order to deem the conversion application complete:

     Is this a real conversion rather than an attempt to break rent control?  In other words do at least some of the residents actually want to buy their lots? Mesa Dunes only has 36 rent-controlled spaces so we know this is not just a rent control ploy. 

     Is the conversion applicant following all the state and county codes, especially with regard to protection of lower income residents? The owners have filed a Tenant Impact Report with the County outlining the protection for all residents and the basics of how the conversion process will follow the steps determined by code.

The Council listened patiently to the presentations by Susy Forbath and John Wallace as well as the comments of lots of residents and then voted to recommend approval of the application with the following recommendations:

1.  That the planning committee develop and implement a new survey.
We already know some residents want to purchase their lots, assuming the lot prices are fair compared to similar properties.  The first survey demonstrated that and park meetings have confirmed it.  The park could do another survey … but what is the County going to do when only half the residents complete a new survey … just like only half of them completed the first one?  

The original survey had a 55% response rate … somewhere between adequate and good for a mail survey according to the University of Texas's Instructional Assessment Resources.

Are we going to just keep doing surveys until "they" are satisfied?

2.  That the infrastructure is evaluated.
This is a mandated aspect of conversion which was outlined in some detail by both Susy Forbath and John Wallace last night.  However, according to state code, this is done after County approval.  This is not a simple, quick look inspection, it is an in-depth evaluation done by professionals to determine the state of the infrastructure and the level of reserves needed. (See timeline below.)

3.  That the lot prices be made available to the residents.
How can lot prices be determined before there are lots to price?  We don't have legal lots right now … we have rental spaces with guideposts for placing mobile homes. Again, according to state law, lot valuation only happens after the following steps have been done:
  • Obtain Application Completeness letter from County (1-6 months);
  • Obtain Hearing date from County (1-3 months);
  • Provide Tenant Impact Report to all resident household (15 days prior to Hearing);
  • Obtain County approval of Tentative Map (1-12 months);
  • Prepare and file Final Map Application with County (2-6 months);
  • Obtain Completeness letter from County (1-4 months);
  • Obtain Hearing date from County (1-3 months);
  • Obtain County approval of Final Map (1-6 months);
  • Obtain park inspections report (2-4 months)
  • Obtain budget for future Homeowners Association and park operations (2-4 months)
  • Prepare formation and governing documents for future Homeowners Association;
  • Prepare purchase, financing; and transfer documents;
  • Obtain lot valuations; 

There are a lot of unknowns in the process of conversion and that uncertainty makes people anxious and fearful.   However, the state and county have spent a lot of time creating codes and processes that rationally and step-by-step answer these questions.

In the meantime, we need to remember that no one has to buy their lots and 263 out of 299 residents have the option of staying on their leases with its current terms and conditions … basically “no impact.”  

And, if you happen to be one of 36 residents not on a lease, talk to Joanne Mancarella about getting one before conversion happens.  You could be pleasantly surprised at how much protection you have available to you.