Showing posts with label mobile home conversion. Show all posts
Showing posts with label mobile home conversion. Show all posts

Friday, October 4, 2013

Fantasy Thinking Could Take Away Our Options

More pumpkins show up in Mesa Dunes
The HOA Board in their current newsletter has a front page headline that says "Great News!" because SB 510 was signed into law.  The law is one of those that sounds great on the surface but on closer reflection, might be significantly flawed.

SB 510 gives approving authorities the right to reject a conversion of a mobile-home park when it is not supported by a majority of the homeowners.  What could be wrong with that?  

For one thing, it could significantly reduce our choices as homeowners.  It could wind up taking away the option of full homeownership (coach and land) that could be beneficial to many of us.  Because the language uses the "majority of residents" as its key point, it ignores the fact that elections seldom … if ever … have *all* residents voting.  

When the requirement is for a "majority of all," every person who does NOT vote, effectively casts a NO vote.

SB 510 will make it much harder for people who want the benefits of full home ownership to exercise that option … while doing nothing to improve the conditions for people who want to continue renting … at least in a park such as Mesa Dunes where almost all the residents are already paying high space rents.

What's the alternative to conversion?

What I'm not sure people think about is what happens when a conversion is denied.  

Does the owner just say, "Oh, well, that was a nice try that didn't work?"   Hardly.

Usually, he appeals and the conversion winds up in court … a process that can drag on for years, keeping the park in limbo and discouraging sales and ultimately depressing the value of our homes.

Other options include selling the park to a different park owner … one who might or might not keep the park at the same level of maintenance as what we have today. Or to a real estate investment trust … an entity designed to maximize profits for the trust which consists of stockholders who never see or even know about the park.  They don't care what the maintenance level is … just their return on investment.

Rumors … Rumors … Rumors

The rumor mill has it that the current HOA Board … or at least a subset of it … has visions of stopping THIS conversion and starting their own membership conversion like Sunrise Terrace where share ownership is $200,000.  The rumor mill also has it that the board wanted to buy Mesa Dunes several years ago but were afraid of the infrastructure issues so they didn't buy it.  

The current owner bought it, took the risks the Board wouldn't, and now wants to sell it.

So, let me see if I've got this right … the HOA Board, who have vigorously maintained that they are not against conversion are actually against THIS conversion and want to start their own. 

So, they are gathering letters and signatures so that they can oppose the conversion when it goes to the county … and presumably they will show up in force to oppose THIS conversion.  

If they succeed in getting THIS conversion denied, the owner will be forced to pour even more money and energy into the pockets of lawyers.  And, after years of litigation, let's presume that the owner loses (something that rarely happens).

Then, the HOA Board, is going to go to the owner and say politely, "We'd like to do a conversion OUR way." (This is sort of like going to a Mexican restaurant and saying I want prime rib, please.)

And, after opposing him for years and costing him a bundle of legal fees, they think he's going to say, "Oh, goody … I wish we'd thought about that ten years ago … let's make a deal … and, oh by the way, I'd be happy to give you a really good price."

I don't think so.  To me, this is just fantasy thinking.

I wrote a letter to Governor Brown … obviously one that did not sway his thinking, but it does spell out my thoughts about SB 510.  I use my own specifics just to help illustrate the issue and have included it below even though SB 510 is already signed.  

If we want the choices that this bill could take away from us, we're going to have to make ourselves smarter and be willing to make our needs and concerns known to the county.  We need to understand ALL of the facts about our choices.

Simple Road Map to Help You Make Your Choice

I am putting together a road map of simple questions each of us can ask ourselves to help us think through our individual situations in order to make a better, more informed choice.  We will present this road map at the meeting October 14th, 5:30 pm in the LOWER clubhouse.  

To help us think about conversion in a rational, deliberate manner, we will also have two outside experts … Thomas DeRosa and Rick Milanesa from Hybrid Homes.  They have a lot of experience with mobile homes, conversions and values in the surrounding area.  

Please put this meeting on your calendar ... we have the power to make this conversion beneficial for all of us ... but only if we act together in a way that protects our options.

Thursday, October 3, 2013

Town Hall Forum #1

Pumpkins are showing up in Mesa Dunes!
All Residents of Mesa Dunes Invited!


Town Hall Forum #1
FOCUS: CONVERSION AND THE VALUE OF MY HOME
     "Together we know more than any one of us."
     
Monday, October 14th 5:30 pm 
in the LOWER Clubhouse 

This is a new kind of meeting about the conversion process ...

1,  There will be CHOCOLATE!

2.  For residents only … no owners or lawyers …  just us sharing our information, thoughts and concerns.

3.  No petitions, no hostility, no personal attacks.

4.  Focus will be on the specific facts affecting each of us individually.

5.  Time to talk, ask questions and get to know each other better.

Guest Speakers: To help deepen our understanding of the conversion process and how it affects each of us, we have invited two informed outsiders who have generously agreed to share their time and experience.  Thomas DeRosa and Rick Milanesa are partners in Hybrid Homes.  They have installed a lot of mobile homes in Mesa Dunes as well as other area parks.  They know the mobile home environment in the local area and the conversion process.

Announcement: Some additional protections for residents who decide to 
continue renting and incentives for residents who decide to purchase
their lots have been approved by the owner and will be explained.

Specific Examples:  Three brave souls will be invited to present the basics of their individual situations so that we can work through specifics in relationship to the facts of the conversion that have been presented by the owner.  Our guest speakers will help guide us through this process and we will use a worksheet that will be available to each of you. 

Town Hall Forum Schedule: (Please mark your calendar.)

October 19th, Saturday, 3 pm.  Focus:  What Happens If I Don't Buy My Lot? - Guest Speaker: Stephen Iverson, Realtor, Keller Williams, Long Beach, actively involved with after conversion sales in Windward Village. Stephen has a unique outsider's perspective on "life after conversion."

October 30th, Wednesday, 7 pm. Focus:  Will I Be Able to Get Financing? - Guest Speaker: Michael Fitzgibbons, Murphy Bank, who will help us understand the financing aspect of buying our lots.

NOTE:  To keep this meeting productive and BRIEF, the following topics will NOT be discussed:
-- the survey, since it's already done
-- the "residual" method of appraisal, since it won't be used.

PLEASE JOIN US … WE NEED YOU!  
We're all in this together …
 let’s inform ourselves
and work to protect everyone in our community.

Organized and funded by the Mesa Dunes Residents for a Collaborative Conversion, 
for more information, please contact Joyce Wycoff, jwycoff@me.com, 870-656-4141.