CHFA Invests in Preservation and Resident Ownership of Longmont Mobile Home Community
(DENVER) – Colorado Housing and Finance Authority (CHFA) is pleased to announce it has partnered with ROC USA® Capital and Impact Development Fund on a unique transaction to support the preservation of The Longmont Mobile Home Community (Longmont MHC) by converting its structure to a resident-owned cooperative. This cooperative (LMP Co-op) eliminates the homeowners' risk of displacement, gives them more control over lot rent fluctuations, and preserves affordable homeownership in Longmont. The Longmont MHC has 36 individually owned manufactured homes.
"When the opportunity came up for us to buy the community, it was pretty exciting" said Mike King, resident and LMP Co-op's board president. "We own it and are able to set the lot rent based upon an actual budget. We did it!"
CHFA made a $1.19 million purchase for participation in an existing acquisition loan made by ROC USA Capital. Impact Development Fund (IDF) purchased a $1.34 million participation interest in the loan. ROC USA Capital remains the loan servicer. The loan was used by the Longmont MHC's homeowner cooperative to purchase the community's land. The City of Longmont also supported the transaction with a no-interest, deferred-payment $300,000 loan from its Affordable Housing Fund.
"We congratulate the Longmont MHC homeowners on their tremendous accomplishment. They've worked hard to ensure their long-term housing stability. Manufactured home communities are an important naturally occurring affordable housing option for Coloradans and CHFA is proud to play a role in this preservation effort," said Cris White, CHFA executive director and CEO.
"IDF is very pleased to participate with our fellow market leaders in addressing the incredible economic and redevelopment pressures faced by residents of manufactured home communities. Following the great example of these Longmont MHC residents, we are committed to expanding opportunities for residents and communities across the state in securing their housing needs through self-determination," according to Sean Doherty, IDF executive director.
While this type of affordable housing finance may be emerging in Colorado, it's a proven model in multiple states across the U.S., with ROC USA and its nine other affiliates having helped nearly 250 manufactured home communities become successfully resident-owned and managed, preserving nearly 17,000 homes in the process.
"ROC USA Capital is pleased to partner with Colorado Housing and Finance Authority, Impact Development Fund and the City of Longmont, key affordable housing financial institutions in Colorado, to jointly finance the acquisition of the 36-site LMP Co-op in Longmont on behalf of the homeowners," said Michael Sloss, Managing Director of ROC USA Capital, a U.S. Department of Treasury-certified Community Development Financial Institution and wholly-owned subsidiary of ROC USA, LLC. "Such financing partnerships with state and local community development lenders are fundamental to both financing the first ROCs in a new state and building a long-term financing system to serve homeowners in ROCs over time. We look forward to helping many more homeowners in Colorado in the years to come."
Thistle Communities, ROC USA Network's affiliate in Colorado, provides technical assistance for board training, loan compliance, and community development. Longmont MHC worked with Thistle through the purchase process and will continue to do so for at least the next decade. This integrated model of financing and technical assistance is at the heart of the success of the resident-ownership movement.
"Thistle had "boots on the ground" for four months with LMP Co-op and the successful transaction is the result of the residents' willingness to engage and work collectively," said Mary Duvall, Thistle CEO. "Thistle is excited to make an impact here in Boulder County," said Duvall.
Pictured left to right: Bill Gore, Longmont MHC resident and LMP Co-op board vice president; Mary Duvall, Thistle Communities CEO; and Mike King, Longmont MHC resident and LMP Co-op board president. Photo courtesy of Thistle Communities.