Promoting Homeownership in Underserved Markets David Clifton Washington State Housing Finance...

Promoting Homeownershipin Underserved Markets

David CliftonWashington State

Housing Finance Commission

Manufactured HomeCommunity Investment Fund

Helping manufactured-home communities to buy the land

under their homes


Homeowners are Vulnerable


• People own homes, but lease space• Many are low-income and elderly• Often live in rural areas• Rent can be raised or the land sold• Landlords may not fix problems or

maintain common areas• When land is sold, often developed into commercial

space or market-rate housing—a net loss

Cooperative Ownership = Empowerment


From:•Rising rents•Poor maintenance•Landlord’s rules•$$ insecurity

To:•Affordability•Collective investment in improvement & maintenance•Rules set by owners•Long-term security

How to Help?


• Cooperatives are complicated—owners need advice & education to organize themselves

• Also need financing—new organizations don’t meet conventional lending standards

• Ongoing technical assistance also needed

Our Strengths


• Resources for financing

• By state law, WSHFC is notified when landlord intends to sell a man. home community

• Fits our mission to preserve affordable housing & assist homeowners

But we lacked staffing and expertise to work with homeowners...

The Solution: Partners!


• ROC USA:Financing, underwriting & TA for

resident-owned communities(67 in 13 states so far)

• Northwest Coop Development Center: Experts in developing and advising cooperatives

The Loans


• Manufactured Home Community Investment Fund—rotating loan fund using WSFHC revenues

• MHCI Fund covers up to 40% of total borrowed—remaining 60% from ROC USA & others

• Usually 1.05 loan-to-value, for 10 years

• 20-year amortization & reserves for debt service, capital improvements etc.

The Cooperatives


• Each co-op member buys a share (typically just $10 monthly increase over previous rent)

• Elect a board of directors

• Set budget, by-laws, community rules

• Remaining rental units kept at minimum; plan to convert to homeownership

• Northwest CDC provides ongoing support

Power of Partnership


Six communities in Washingtonnow self-owned or pending

BEFORE (1997-2008):

WSFHC helped 5 communities in 11 years

AFTER (2012-2014):

With new partnership, we’ve helped six in just 2 years

The Communities


Moses Lake(3 communities)

Duvall

Rochester (pending)

Whidbey Island

• Historic rural town east of Seattle• Land prices climbing• Manufactured-home community

on prime real estate between Main Street & river• Homeowners’ first 2 attempts to

purchase failed—but partners overcame barriers• 26 affordable homes preserved

The Communities



Duvall

Rochester

Whidbey Island

Duvall Riverside Village

• 59 affordable homes preserved—and fund created for critically needed improvements

The Communities



Duvall

Rochester

Whidbey Island

Thundering Pines

“I see more and more of our community catch co-op fever! The sense of community and pride is awe-inspiring!” --Thundering Pines owner

• Near Naval Air Station Whidbey Island (NW of Seattle)

• Neglected by landlord; rundown

• Neighbors determined to save park from development

• 59 homes preserved

• Three “mobile home parks” in Eastern Wash. town of 20,000• Portfolio sale to three separate

co-ops – 113 homes total• Included Mercy Loan Fund

financing • Many Spanish-speaking residents• Neighbors feel safer, are taking

more pride in homes

The Communities



Duvall

Rochester

Whidbey Island

Moses Lake Communities

Long-Term Value

• Land is preserved for affordable housing in perpetuity

• Partners share the mission—all committed to preservation

• Security for homeowners and their communities

Downpayment AssistancePartnership Programs

More Information

• Visit us at wshfc.org!• Contact:

Downpayment AssistancePartnership Programs

David CliftonAssistant Director,Multifamily Housing & Community [email protected](206) 287-4407

Promoting Homeownership in Underserved Markets David Clifton Washington State Housing Finance...

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