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| Just another day in paradise. |
These elements of the Mesa Dunes owners' offer to residents have been taken from documents received and document numbers in parentheses refer back to documents listed on Documents page.
These points are intended as a guide only, you should review the documents and get legal advice prior to making your decision about conversion.
Many of these bullet points prompt even more questions. Check the Q&A page to see if they have been answered. Everything on this page comes from a specific document provided by the Owner's legal representative. The only exceptions will be noted in italics and by the heading (Author Conclusion:) ... these conclusions do NOT represent legal opinion.
This list was prepared by Joyce Wycoff and reviewed by Susy Forbath. If you find any errors, please leave a comment.
General:
- Purpose: Resident-Owned Community (1)
- Purchase is an option. (1) (4)
- No one will be evicted. (1) (4)
- All residents will be notified at least 15 days in advance of all legal hearings. (6) (12)
- Purchasers receive a grant deed. (1)
- Purchasers buy land under their unit which includes 1/304th interest in park common area. (2)
- Park Owners ("Owner") will have lots appraised by MAI-licensed appraiser and will set price in accordance with appraisal and loan standards. (2)
- Residents will know lot prices at least six months prior to purchase availability. Tentative prices must be publicized at the time of application to State Bureau of Real Estate (BRE). (2)
- * Owner has agreed to hold the original price for 6 months after date of conversion. (2) (3)
- * Open escrow in first 90 days after conversion, 10% discount on lot price. (3)
- * Open escrow in second 90 days after conversion, 5% discount on lot price. (3)
- * NEW: Starting the month after County approval, 50% of all space rent paid until the date of conversion, up to $5,000, may be appllied as a credit toward purchase of a resident’s lot, if escrow is opened within the first 90 days of conversion. (Conditional on timely approval by County and no appeals.) Will be documented as an amendment to the Tenant Impact Report submitted to the County.
Update: 10/31/2013 Opening Escrow
The owner has offered some purchase incentives for residents who OPEN escrow within the first 90 or 60 days. In a conversation with Mary Jane Ponder of Fidelity National Title Insurance Company in Arroyo Grande, there is no specific limits to how long escrow can be held open. There's probably a reasonableness factor here ... however, residents who are at all interested in purchasing their lots should probably open escrow soon after the date of conversion in order to lock in the incentives.
Loans:
- Owner/representatives will assist with loan availability. (1)
- Lower income, 30-year loans at 3% simple interest available through MPROP. Can be combined with other financing. (2)
- Rent will be protected for lower-income residents for as long as they are in the park. (1) (4)
- Residents can choose to stay on lease or change to State "market rent" limits. (2) "Everyone in the park who is not in a rent-controlled unit is on a lease. All residents who are on a lease have the option of staying on their leases." - Joanne Mancarella, park manager.
- Lower-income rent control: the lesser of average increase over the last 4 years or the CPI. (2) (4)
- * Renters not in lower-income will have rent increased to market rent over 5 years. (2) (Estimated to affect fewer than a dozen residents.)
- Renters will NOT pay HOA Dues. (2)
- Under state rent control, lower-income renters will experience smaller rent increases for as long as they live in the park. (3)
- * NEW: Space rent for residents 80 years old and over will be limited to a 1% annual increase, not to exceed $100 above current rate. (Conditional on timely approval by County and no appeals.) Will be documented as an amendment to the Tenant Impact Report submitted to the County.
Selling after Conversion:
- Residents selling after the date of conversion will be selling to buyers who can purchase both the unit and the land. (2)
- * Owner has agreed to hold the original price for 6 months after date of conversion. (2) (3) (Author Conclusion: After that time, the land price will be subject to market fluctuation.)
- All of the park will be controlled by the lot owners through an HOA. (2) (Note: since the Owner will continue to own lots until they are sold to residents, the Owner will maintain control until no longer the majority owner. The transfer schedule will be in the CC&Rs and will comply with the Davis-Stirling and the Bureau of Real Estate requirements.)
- HOA dues determined by California Bureau of Real Estate (BRE). (2)
- Current park owner required to fund a reserve account to pay for already-used portion of park improvements useful life. (2)
- * Owner has offered up to $1,000 in prepaid HOA dues during the first year for residents who open escrow in first year after conversion. (2) (3)
- Current park management has a contract and the Bureau of Real Estate requires current management to stay in place for 5 years. After that, the HOA will determine park management. (2)
- Current park owner pays HOA dues for all unsold units. (10)
* Owner is offering a standard above that required by code.
Author Affiliation: This blog does not represent legal opinion, park management, park ownership, the Homeowners' Association or any other person or entity other than the author (See About). However, information, ideas, or opinions from all of the above are welcome.
NOTE: Please help make sure this information is timely and correct by adding your comments, questions and suggestions. Feel free to email me ... jwycoff@me.com.
