FACTS - A RECENT, LOCAL & SUCCESSFUL MOBILE HOME PARK CONVERSION
By Ann Silver, Mesa Dunes Resident
On September 26, 2013, I visited Knollwood Village Mobile Home Park, 4012 S. Bradley Road, Santa Maria, CA 93455 to meet Jackie Scolari, with the rental management company managing the leased lots, and Richard Whippo, the broker who sells the converted lots. The Towbes Group (a trust company for the park owner) manages lots after they are sold. Knollwood became a condominium style subdivision for resident owners in May, 2012. To date 77 of the 195 lots (39%) have closed. There are no vacant lots.
A tenant survey taken before specifics were known had 130 responses. They were: 60 Yes - 64 No - 6 No Response. When prices and terms became known, there were no objections.
Knollwood is restricted to residents older than 55 years. It is a quiet, attractive park with a clubhouse, trees, billiards, ping pong, library, card area, pool, jacuzzi, putting green, BBQ pit & shuffleboard. Each home was built in 1981 or later and has a two-car garage. There are no single wide homes. All are double or triple wide. All homes are at ground level. Each has pier and post foundations below ground level with under-the-home accessibility space for repairs.
Knollwood is outside the Santa Maria City limits, in Santa Barbara County. The sewer is Laguna County Sanitation District. The well water is Golden State Water Supply. Residents pay their own utilities.
There are no low-income leases. Leases run between the high $600’s and the low $700’s monthly. The market rate was and is determined solely by the Los Angeles Consumer Price Index (CPI.) If a resident chose to not buy their lot they could sign a new long term lease, expiring in 2021. If that resident then sold the mobile home, under the terms of the lease the new owner can assume the lease, or buy the lot. If a resident sells their mobile home without having a long term lease, the new buyer must also buy the lot.
OWNER INCENTIVES FOR BUYERS WERE:
During the first six months, the appraised lot price reduced $10,000. Plus, an additional 10% reduction on the remaining lot price balance.
During the second six months, 5% off the lot price.
All lots were appraised between $120K and $140K. I found four homes presently for sale. The first three were $54,000, $68,950 and $79,500. The fourth was $225,000 including the lot.
To obtain a mortgage, the mobile home must be attached to the lot by a certified engineer who installs an approved foundation system. The California Department of Housing and Community Development (HCD) issues a titling document on Form 433A aka “Installation of a Manufactured Home on a Foundation System” per California Code of Regulations, Title 25, Division1, Chapter 2, Section 18551. The company who installs all foundation systems in Knollwood charges between $2700 and $3400. Knollwood pays 90% of the cost. No mortgages have been issued without Form 433A.
Two banks presently issue mortgages in Knollwood. They are California Bank & Trust and Land Home Financial Services. MPROP has not approved an application because 51% of the lots have not sold. After 51% are sold, MPROP may provide mortgage assistance to lower income buyers.
Estimated escrow fees (in addition to mortgage fees) are approximately $1500. Each buyer owns 1/195th of Knollwood Village Common Areas and cannot own more than one lot.
The HOA Board of Directors has five members. Monthly dues are presently $149.89, including common area maintenance. When 100% of the lots are sold, the HOA Board will consist of resident owners only.
There is no street parking. Two cars are allowed per home. Resident’s cars may be parked in the driveway during daylight hours, if the driveway is long enough. All cars must be in the garage, with the garage door closed, at night.
Two pets are allowed. Dogs must be leashed, stay off anyone’s lawn and be cleaned up after.
The “Final Buyer Package for Knollwood Village Homeowners Association, Inc.” has 17 chapters.
1. Articles of Incorporation
2. Declaration of Establishment of Covenants, Conditions and Restrictions (CC&R’s)
3. Bylaws
4. Rules and Regulations
5. Policies and Procedures
6. Policies for Older Persons Housing Designation
7. Architectural and Landscaping Rules
8. Election Policy
9. Delinquent Assessment Collection Policy
10. Condominium Plan
11. Association Budget
12. Reserve Study
13. Purchase and Sale Agreement and Joint Escrow Instructions
14. Natural Hazard Disclosure Report
15. Lot Appraisal
16. Sample Proforma Title Report
17. Sample Grant Deed
