Under Massachusetts law, MHC residents have the opportunity to match an offer by a third party to buy their community once it is offered for sale. Wheel Estates’ owner Morgan Management has a signed purchase agreement from Real Estate Seekers LLC for $2.73 million for the North Adams, MA community that the Wheel Estates Tenants Association is trying to match, utilizing a low-interest loan through ROC (resident-owned communities) USA. Iberkshires informs MHProNews the North Adams Rent Control Board is wrestling with ROC USA’s need for a guarantee that the rents will be sufficient to pay the interest on the note. The city ordinance does not allow for rent increases to cover “debt service.” While Mass. law encourages resident ownership, the ordinance basically opposes loans that make this possible. Of the 185 occupied homes, 101 have each paid a $100 membership share to be part of the cooperative. While members of the board generally support the residents desire for community ownership, they are reluctant to commit to a hypothetical rent increase, but have agreed to meet again March 13 to further explore the issue. Meanwhile, the residents group has until March 27 to line up financing.
