San Jose has the most manufactured-home communities in the state, 58 communities with nearly 11,000 home sites. Of the 150 residents of Winchester who occupy the 111 MH, 106 are above 60 years of age, some in their 80s and 90s, who pay $833 to $1,000 a month, including Barbara Cali, who co-found the community with her husband in 1976.
Home builder PulteGroup has agreed to purchase the community, and intends to erect market rate and affordable apartments as well as a hotel, but as bloomberg reports, the deal has not closed. One of the sticking points: the San Jose City Council is set to vote on a six-month moratorium, as MHProNews reported Aug. 13, 2015, that would prevent the closing of Winchester and all the other MHCs in the city until lawmakers can determine a path to walk between senior affordable housing and accelerating growth.
To compensate residents, Pulte is considering offering $140,000 to over $200,000 each, adding about $15 million to development costs, which it would offset by an outside group buying a portion of the 16 acres for the hotel.
In the 1980s the state tried to discourage MHC owners from booting residents, but the force of economics has been very tempting in this area where the median listing price of a single-family home in August reached $878,000, the country’s second-highest, according to the National Association of Realtors (NAR).
If Pulte’s deal goes through, residents may be pressed to find affordable housing, as a one-bedroom apartment requires an annual income of $109,000, and income-restricted housing developments have long waiting lists. Santa Clara county—which includes San Jose—has 19,000 manufactured housing home sites, but only 78 listings, with an average price of $197,000.
Many municipalities up and down the coast trying to protect MHCs from redevelopment have become embroiled in expensive legal battles. While housing-rights advocates have tried to prevent conversions, many believe there are more efficient methods to provide affordable housing.
Another option would be for local governments to assist MHC residents in obtaining financing for them to become resident-owned communities. ##
(Photo credit: Bay Area News Group/Lipo Ching–Winchester Ranch manufactured home community in San Jose, CA)
