Legally can a resident be restricted from purchasing a share in a soon to be a resident owned mobile home park?

Asked by crimsonredrhonda, Santa Cruz, CA Sat Oct 27, 2012

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John Arendsen, Agent, Leucadia, CA
Sun Oct 28, 2012
Is this a condo conversion, a sub-division or a Coop? In a condo conversion you purchase the airspace in and around your home but share in all the common areas. In a subdivision you actually own your own lot as delineated by the APN number and plot plan.

In a coop as a rule or hypothetically you own a share/s of the corporation or coop. Example: Your in a park that has 200 spaces and they convert to a coop. In a perfect world all the residents have the right to purchase a share for their lot giving them 1/200 of the stock in the coop plus any/all related HOA fees, expense and taxes, etc.

That stated, every park has an HOA and and that governing body of resident/homeowners can and does establish it's own rule, regulations and qualification for eligibility to participate in the coop. Regardless, however, be it a condo, conversion, sub-division or coop participation of ownership is based on ones ability to pay for their lot.

For this you will no doubt have to qualify with your credit and income and prove to any lender that you have the means to pay for the lot. If not provisions have to be made for you to continue on in a rent/lease capacity. I'm not aware of any charters sanctioned by any governing power that would allow an HOA to force someone to leave their home should they not be able to purchase their lot.

We've been involved with park/community conversions for over 20 years and have never heard of an incident whereby a resident/owner was forced to move it they couldn't purchase their lot.

We are acutely aware of all the MH park/communities in the Palm Desert/Palm Springs/Indio/Desert Hot Springs area that are going through some form of conversion as we are the company that provides the required foundation improvements, upgrades, engineered certification and California Housing and Community Development (HCD) required 433a documentation for FHA guaranteed forward or reverse mortgages.

Please feel free to log on to any of our very user friendly websites for further information or you can call us anytime at 760 815-6977 or email me at
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Don Tepper, Agent, Burke, VA
Sat Oct 27, 2012
Legally? Check with a lawyer.

My non-legal opinion is: Probably, yes.

OK: It's going to be resident-owned. That's the description of the mobile home park after the process is completed.

It's an entirely different question than asking: Who will be entitled to be a resident?

Just because you're a resident now doesn't mean that you meet whatever qualifications the developers have for ownership.

Now, obviously, you can't be discriminated against for things like race and religion. But the developers could establish a minimum income requirement. They might be able to say something like: "If you're employed, your employment must be within 50 miles of the park." The reason: If you live farther away, then likely you're not really going to be a resident; you're probably planning on renting your mobile home out, in violation of the regulations.

So: Check with a lawyer. But don't be surprised if the developers can restrict current residents from purchasing a share.

Hope that helps.
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