The Manufactured Housing Institute’s (MHI’s) legislative report for August 12, 2014 says legislation in the California Senate Appropriations Committee would allow loans to be made from the Mobile Home Park Rehabilitation and Purchase Fund to a non-profit entity to purchase a manufactured home community as long as 30 percent or more of the residents are low income. Further, the purchaser must bring the community into compliance with all applicable health and safety standards, and continue to maintain the community as an affordable place to live for low income residents.

The loan may also be granted to a local public entity that plans to convert the community to a resident-owned community within three years, with the possibility of a three-year extension if good faith has been shown by the borrower. If after the three-year extension no progress has been made in converting the community to a co-op, the full amount of the loan must be repaid. Loans must be for a term of 40 years or less and carry an interest rate of three percent unless that will jeopardize the purchase, in which case a lower percent loan can be extended. MHProNews understands the two major concerns are that the loan is used to bring the community into safety and health compliance, and that the community continues to be affordable for low income residents. ##

(Photo credit: santeepatch.com–manufactured housing community, Santee, Calif.)