15 ATTACHMENTS - Laserfiche WebLink

Once approved by the DRE, each resident has ;3n opportunity to purchase an undivided interest in the park and all common areas along with the condominium unit on which their home is placed. This interest is offered to each resident as a condominium interest, comprised of the condominium unit, and exclusive use easement to the common area [and under the condominium unit], a percentage tenant in common ownership to common areas and membership in a Horne Owner's Association ("HOA"). FINANCING FOR LOWER INCOME RESIDENTS A State funded program exists through the Dept. of Housing and Community Development Division of Financial Assistance called the: Mobilehome Park Resident Ownership Program ("MPROP"). MPROP was established to finance the preservation of affordable homes by conversion to resident ownership and is controlled. by the CA Health & Safety Code sections 50780-50786.5. This program is available to park residents who wish to purchase their unit and qualify as aLow-Income Household as defined by the lower income limits provided by the HCD each year. The MPROP program offers long-term loans at 3% simple annual interest, to low- income residents of a mobilehome park that ha:; been converted, to ensure housing affordability when the resident buys a condo unit in the; park. The loan does not cover the entire purchase price, but is often paired wii:h a conventional loan and provides, on a sliding scale, an amount sufficient to secure a monthly payment that is suitable for the individual resident based on their income, down payment, etc. The total monthly payment should generally not exceed 30-40% of the resident's monthly income. The program exists solely to provide low-income residents the opportunity to own an interest in the park in which they live and to secure anti maintain affordable housing through the conversion of existing rental mobilehome parks to resident owned parks. FINANCING FOR NON-LOW INCOME RESIDENTS After subdividing the land, homeowners and residents will have more realistic options to finance their homes than ever before. Lending institutions consider mobilehomes on leased land to be personal property or "chattel". Chattel financing is shorter term with higher interest rates. Once subdivided, the home and the subdivided property can be financed with a conventional real estate/home loan. Home loan rates are historically lower than chattel financing and institutions offer many decades to pay because of the value and security of the land. BENEFITS TO RESIDENTS TO PURCHASE Owning real property helps individuals and families accumulate wealth for the future while enjoying the benefits of a shelter that they have tlhe right to use, improve and sell. The purchase becomes along-term investment. Home sites in a subdivided mobilehome park are typically much less costly than single-family homes in the [sfsf/16879R_LDOC/012009/4640.001 ]