Download Resident Survey of Support and Income Verification
(you must fill this out to participiate)
Download Buy the Park FAQ's
(explains affordability options and how the proccess works)
Thursday March 19th@7pm
Friday March 20th@7pm
Saturday March 21st@11am and 5pm
Sunday March 22nd@5pm
Alimur Park Homeowners Association
Frequently Asked Questions
Resident Purchase of Alimur MHP
Q: What’s Happening?
A: The Paul Goldstone Trust (“the Trust” is selling Alimur MHP to the residents' nonprofit corporation (“APHA”). When this happens, Alimur will become a “resident owned park.” We believe this will be a very good thing.
Q: What is our goal?
A: The goal set 16 months ago by the APHA Board was for a group (but not necessarily all) of the residents to purchase the Park with an individual membership price of between $10,000 and $15,000, and a monthly rent increase of approximately $200. We believe we can meet this goal.
Q: How will this work?
A: We have already formed our California nonprofit corporation, APHA. This corporation is also our homeowners association (“HOA”). Each participating household in the park will purchase one membership in the corporation. APHA will become the owner of the Park at completion of the Park purchase escrow.
Q: Is resident park ownership an unusual arrangement?
A: Resident-owned parks are relatively rare in California. About 5% of California’s MH parks are resident owned. 22 of Santa Cruz County’s 70 mobile home parks are resident-owned (about 30%).
Of all the resident-owned parks in the County, about half were purchased using “seller-financing,” i.e., the park owner loaned all or part of the purchase price to the resident group to facilitate its purchase of the park.
Q: How will APHA finance the purchase of Alimur?
A: APHA will get a mortgage loan from the Goldstone Trust to finance the purchase of Alimur Park. This is sometimes called “seller carry-back” mortgage financing. We will not use a bank or commercial lender to buy the park. The Trust's willingness to give APHA mortgage financing on good terms is a tremendous benefit to us; it allows APHA to actually buy the Park. APHA will own the Park, and the Trust (like any lender) will have a security interest in the Park's real estate.
We had originally planned to combine two sources of financing to buy the Park: a first mortgage guaranteed by HUD/FHA, and a second mortgage from MPROP (the State agency in Sacramento). We learned that HUD/FHA has new lending policies (inclined toward limiting membership share appreciation, requiring a large portion of the Park to become permanent low-income housing, excessive reserve requirements, etc.) that made today's HUD/FHA-guaranteed first mortgage a poor choice. MPROP only makes loans when they have a current Notice of Funding Availability (“NOFA”). Unfortunately, MPROP does not have a current NOFA. There may be one later this year, but too late to help us. MPROP was also interested in placing its own set of restrictions on APHA.
The Goldstone Trust is offering to finance approximately 85% of APHA’s purchase of Alimur with no extraordinary restrictions. The interest rate is comparable to the HUD/FHA interest rate. This is a great opportunity that no bank or commercial lender could ever be able to match.
Q: Why is the Trust interested in selling Alimur MHP to us?
A: Mr. Goldstone is interested in selling Alimur to APHA because the proceeds will help him acquire other properties while mortgage interest rates are low. By selling to us, instead of a private investor, he also gains unique tax advantages not available otherwise. Basically, the Trust is offering to finance APHA's purchase of the Park because it works well for Mr. Goldstone's financial plan. It also works well for us, because we can buy the park with relatively little money down, and without needing to get a mortgage loan with unacceptable restrictions.
Q: How much will it cost to participate?
A: To participate, a homeowner must agree to:
(1) Purchase a membership share in APHA, and
(2) Pay a monthly HOA assessment rather than rent.
One membership share will be available for each household in Alimur. The price of the share will be $12,000. This is a one-time expense. Share financing from a third-party lender will be available. Your membership can be purchased with as little as $500 down. There are no income or credit requirements to get a loan. We have approximately $500,000 available for membership share loans.
APHA members will no longer be under County rent control, and will no longer pay “rent.” Instead, they will pay a monthly member assessment of approximately $555.
Q: What about the park infrastructure?
A: APHA will have the park infrastructure (water, electric, gas, sewer and roads) professionally inspected before APHA takes ownership of Alimur. Any significant issues discovered by these inspections will need to be addressed by the Trust before we agree to buy the Park.
Q: What if I don’t participate?
A: Those homeowners who don’t participate can continue to live in Alimur MHP as “renters.” APHA will be their new landlord. They will remain under county rent control. When they sell their homes, their home-buyers will be required to become APHA members and to purchase a membership from APHA at its current book value. It is estimated that shortly after the Park purchase is complete, unsold APHA memberships will have their value set by the APHA Board of Directors at approximately $30,000.
Q: How will our HOA be governed?
A: A five-person board of directors with govern our Association. Only APHA members can serve on the board. The directors will be elected by the shareholders (one vote per household) in a secret ballot election. The board will meet at least once each month in open session, where park residents can provide input.
APHA will follow bylaws that will come into effect when the Park purchase is complete. As is now the case, the controlling state law for APHA will be the Mobilehome Residency Law (Civil Code §798).
Q: What about day-to-day management of Alimur MHP?
A: Day-to-day management will be handled by a professional property management company. The APHA Board will hire the management company after considering input from the members. The Board will not handle day-to-day management of the Park.
Q: What will happen if we don’t buy Alimur MHP?
A: If APHA doesn't buy Alimur, some “outside” real estate investor will. We will not have control of the park. We don’t know how the individual or corporation that buys the park would maintain it, or how well the new owner would treat us.
Q: Is rent stabilization going away in Santa Cruz County?
A: No one can say for sure. But here’s what we know (“the facts”):
- The rent stabilization ordinance in the City of Santa Cruz was repealed in 2003.
- The rent stabilization ordinance in the City of Capitola was repealed in 2011.
- RSO's are constantly challenged by park owners at the state and local levels.
- Some cities and counties have abandoned rent stabilization because it’s so expensive to defend in the courts.
- If Santa Cruz County’s rent control is compromised, our home values will plummet unless we own Alimur MHP.
- Homeowners in resident-owned parks set their own monthly payments, and want to keep them as low as possible. If rent stabilization is lost or compromised in Santa Cruz County, resident-owned parks in the County will not be affected.
Q: Why buy Alimur MHP?
- To stabilize our monthly housing expenses over the long term.
- To avoid the consequences if County rent control is ever lost or compromised.
- To secure the value of our homes.
- To make our homes more valuable and easier to sell.
- To build Alimur MHP into a community and improve its quality of life.
- To take control of our futures.