Southway Villa is listed as a Legacy Communities owned property in Brooksville, Florida where Stephen Fucheck’s and his manufactured home’s front screen room gives him a pleasant view of a lake. “I’ve got plenty of nature here. I love the house and I’m going to stay here until the day I die.” But when Fucheck’s logged into his Legacy Communities account for Spectrum Bay News 9 account, a screen capture reveals his site fees are just under $400 for the month. So, a $100 monthly hike – the biggest so far, Fucheck said – is apparently forcing some of his fellow residents to sell. It sounds eerily similar to what Judy Annin told Oregon Live. “People living in manufactured home parks are soon to join the next wave of homelessness,” Annin said. Beyond the headline paraphrase, Tim Rose posted in remarks shown further below that: “If you want to live in a ghost town and pay $700 indefinite fees, this is the place to live. If you want meth heads burning down houses and walking across your lawn at 3 am – look no further. There’s a reason houses are so cheap. The senior and veteran residents are being priced out of their homes due to CORPORATE GREED.”
This fact-packed news-analysis on the latest chapter about Manufactured Housing Institute (MHI) member Legacy Communities starts now.
Part I
1) Legacy Communities reportedly provided Bay News 9 a statement that claimed the following.
2) But there are several indicators that seem to contradict some, much, or all of those claims by Legacy. Fucheck said: “I don’t mind a little bit of an increase each year, but $100 is a lot of money,” he said. If that roughly $400 current site fee increased by $100, that would be about a 25 percent hike during a period when inflation has supposedly slowed in its rate of increase.
3) There are also apparent concerns about accuracy and veracity of Legacy Communities claim: “Our business model is reliant on keeping our existing residents in-place…” Their business model clearly appears to allow for those who decide to leave their communities for whatever reason. If someone is forced out by escalating costs that a given resident can no longer afford, they can obviously put that home up for sale. It is entirely possible that when some residents are forced out be economic considerations that Legacy Communities may pick up whatever profit margin on the vacated home, plus the opportunity to escalate the site fees (a.k.a. “lot rent”) on that space even faster than if that resident had stayed. If that remark by Legacy Communities was transmitted via “the wires” it arguably may involve a variety of possible legally questionable practices.
4) Molly Boyle is Legacy Communities designated contact. Boyle also happens to be the media contact for the Manufactured Housing Institute (MHI). Legacy Communities is an MHI member. MHI’s CEO is Lesli Gooch, Ph.D.
| from: | L. A. Tony Kovach for MHProNews. | ||
| to: | legacy@fpmgi.com, molly.boyle@fpmgi.com |
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| cc: | info@mfghome.org, Lesli Gooch <lgooch@mfghome.org> |
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| date: | Jul 22, 2024, 5:57 AM | ||
| subject: | Molly and Lesli, media outreach |
Molly and/or Lesli,
You may be aware of this report.
Legacy asserted about their business model: “Legacy works diligently to mitigate costs to keep rent increases reasonable and to keep residents in our communities. Our business model is reliant on keeping our existing residents in-place and we are willing to work with residents who may have temporary challenges paying rent due to job loss, illness, and unforeseen medical bills.”
But that seems to be contradicted by remarks made by resident Stephen Fucheck. It also seems to be contradicted by listings like this one, which appears to confirm what Fucheck asserted.
https://www.zillow.com/homedetails/7168-Twin-Brook-St-7168-Brooksville-FL-34601/350377118_zpid/
Listed by:
Colette Veilleux 352-651-4684,
Southway Villa
Colette Veilleux appears to be working for Legacy Communities, correct? So, when a resident moves out for whatever reason, isn’t listing and selling that unit just another potential profit center for Legacy Communities, and thus part of their business model?
Please correct, clarify, or confirm the concerns raised by Fucheck and Spectrum Bay News 9 in that report, plus the evidence from Zillow. In your reply, also explain why you think the Manufactured Housing Institute (MHI) and their National Communities Council (NCC) “code of ethical conduct” isn’t being violated?
I think you both know the drill, but email your response for our mutual accuracy. We plan to report and would value your remarks on this and/or prior topics of MHProNews/MHLivingNews reporting.
Thanks,
L. A. “Tony”
L. A. “Tony” Kovach
For MHProNews.com/MHLivingNews.com …##
5) The listing on Zillow on this date (7.22.2024) reflects the following.
To see this image below in a larger size, depending on your device,
click the image and follow the prompts.
6) From a posted online review about Southway Villa is the following posted ‘one star’ review.
As long as rent keeps going up, you will continue to see houses for sale. Multiple lots inside the park are not owned by the park and have heavy unfamiliar vehicle traffic all hours of the night. When rent was Affordable, this was tolerable but now rent has tripled and this is unacceptable.
Email your Governor about this @GovRonDeSantis. Speak up before your homeless while the corporate execs can build giga mansions in Los Angeles.
(Search Michael Hume Scott mansion trailer park entrepreneur) …”
7) MHPHOA, a resident advocacy website, states the following on this date.
Legacy Communities LLC
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32313 Broadway Street, Suite 101 | Sebring | Florida | 33870 | 75 | 2024-06-19 | LegacyMHC.com |
8) Regular and longer-term readers of MHProNews will be recalled that it the following was previously reported based on a Legacy Communities corporate press release.
“Andrew [Fells] will report to CEO Patrick O’Malley and will continue to office within Legacy’s Sebring, Florida corporate office.”
9) This is an apparent part of what MHI award winner Marty Lavin, J.D., himself a longtime community owner who sold a property to residents, called ‘the industry’s other image campaign.’
10) According to left-leaning Bing’s AI powered Copilot are the following insights.
- Patrick O’Malley:
- Patrick O’Malley is the Legacy Founder & CEO of a leading manufactured housing real estate investment and property management company.
- He recently announced significant changes in Legacy’s leadership team, signaling a new era of growth1.
- Andrew J. Fells:
- Andrew J. Fells was the Chief Operating Officer (COO) at Legacy Communities.
- He has played a pivotal role in Legacy Communities’ success, demonstrating exceptional vision and action.
- Andrew has decades of experience in the industry, managing over $2.5 billion in assets across 75 communities nationwide.
- He has now moved from COO to President, continuing to lead the company with dedication and innovation.
- Andrew’s goal is to raise the lifestyle experience for Legacy’s residents throughout its nationwide portfolio of manufactured housing and recreational vehicle communities1.
- Brad Valka:
- Brad Valka is the new Chief Operating Officer at Legacy Communities.
- He brings over 18 years of experience, notably contributing to RHP Properties’ growth from 55 to over 370 communities during his tenure with RHP.
- Brad is known for assembling high-performing teams and driving strategic initiatives.
- His expertise includes human capital management, operating policy and procedure, systems, home sales, capital improvements, acquisitions/dispositions, and financial analysis.
- Brad’s role is crucial in delivering on-time execution of business plans, exceptional returns to investors, and optimal resident experiences1.
These leadership changes represent a strategic move to position Legacy Communities for sustained success and operational excellence within the manufactured home community industry1. …”
11) That response from Copilot sounds glowing, but the follow up from MHProNews to Copilot created a more sober reply.
Has Legacy Communities used either Fannie Mae or Freddie Mac financing?
- Freddie Mac Financing:
- Legacy Communities, LLC, a manufactured housing community owner, has used financing from Freddie Mac for acquisitions.
- Freddie Mac is a government-sponsored enterprise mandated to support housing for low-income Americans.
- Unfortunately, there have been instances where Freddie Mac’s financing has led to issues in manufactured housing communities1.
- For example, residents of Navarre Village, a senior community in Ohio, reported that after Legacy Communities acquired their community, lot rents were doubled for new tenants, and existing residents faced significant rent increases1.
- Affordability Concerns:
- While manufactured housing is a critical source of affordable housing for millions of families, some actions by community owners can undermine affordability.
- Sudden and drastic rent increases can make housing unaffordable for residents, especially seniors on fixed incomes1.
- The goal should be to balance investment and affordability to ensure residents’ well-being.
- Fannie Mae and Freddie Mac’s Role:
- Both Fannie Mae and Freddie Mac play a role in financing manufactured housing.
- Low-interest loans supported by these entities have fueled acquisitions of mobile home parks, but sometimes new owners drive up costs for longtime residents2.
In summary, while Freddie Mac financing has been used by Legacy Communities, it’s essential to consider the impact on affordability and residents’ well-being. …”
12) Some more posts by residents, noting that there are cases when so-called ‘5 star reviews‘ in MHVille have been posted by those acting on behalf of management. So, while there are positive reviews, the ‘fake review’ concern must be kept in mind. That said, the following in a 1 start review.
The park is very poor , they never put anything back into the park, watch out for the manager , he tries to take advantage of the women , and drinks on the job, they will pick and choose who they help , I’ve been trying to get a shed but they will not let me have one , he lies and let’s the person behind me get one , so be careful and very poor drainage and they do not care…”
Response from the ownerThe manager you spoke about was no longer there when Legacy Communities purchased the community.
The lot rent is being raised again this time 27% increase. Last year was a 17% increase. This is a retirement community and there are many low-income people on a fixed income. This is truly unfair to have such a high rent increase every year.”
Response from the ownerThank you for your review and feedback. We have forwarded your review on over to Corporate as well.
Was a Low income , but decent mobile home park until New Owners purchased property and jacked up the lot rent with very few amenities to offer. Apparently its All about the Money and Dont care that this was for those Seniors with limited incomes…
Response from the ownerDelores, Thank you for your review and for bringing these issues to us. I will forward your comments to corporate.
13) Legacy Communities has been addressed by Senator Sherrod Brown (OH-D) for concerns over predatory behavior. It will be recalled that Senator Brown’s personal phone is reportedly on high-profile MHI member Nathan Smith’s cell phone.
Some recent articles on the evolving story of Legacy Communities are linked below.
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Related References:
The text/image boxes below are linked to other reports, which can be accessed by clicking on them.’
