California MHP News

Thu, Jan 28, 2016 - What you are seeing in the image below are thousands of documents titled "Investigative Report" which are from the California Department of Housing and Community Development (HCD) filed against Kort & Scott Financial Group DBAs. This information is available through a Public Information Request which we have filed for all of the KSFG parks that we are aware of in the State of California.

Complaint Types: Non Receipt of Title, Non Transfer of Title, Unlicensed Activity, Substandard Housing, Unlawful Use, Misrepresentation, Illegal Advertising, Breach of Contract, etc.

This is only a small portion of the requests and pertains mostly to one mobile home park, Royal Oak Manufactured Home Community in Davis, California which was sold by the KSFG DBA in 2015. It appears that KSFG were forced out of this park by the continual violations by the HCD, each one costing Kort & Scott Financial Group $2,000. In one set of these documents, Hart King, Attorneys at Law, acting on behalf of the KSFG DBA state this...

Dear OL Ombudsman Coordinator: We represent Davis Group, LP, the party subject to the above 11 citations. On April 22, 2015, we wrote to the Division of Codes and Standards Deputy Director requesting on behalf of our client, stating our objections to all of the Citations, and requesting an Informal Hearing. We have recently been advised that the Hearing Officer desires to hold 11 separate hearings as opposed to one single hearing even though the alleged violations are all similar. As a result, Davis Group LP has decided, for business and financial reasons only, that it is more sensible to pay the civil penalties. Among other reasons, the costs of preparing for and attending 11 separate hearings, which would include the hourly and travel expenses of counsel, expert witnesses and percipient witnesses, would far exceed the amount of the civil penalties, and it would take valuable personnel away from their jobs for an extended period of time.

We are therefore enclosing 11 checks from the Davis Group, LP, $2,000.00 each, covering each citation payable to the Department of Housing and Community Development, and requesting that the 11 Informal Hearings be taken off-calendar. Please confirm that this has been done at your earliest opportunity.

Please be advised that the payment of the civil penalties cannot and should not be considered an admission of any wrongdoing or liability on the part of the Davis Group for any of the violations appearing in the Citations or under any other law. The Davis Group is simply making the $22,000 in payments for business reasons, and continues to deny all liability under the Citations for, without limitation, the reasons stated in my April 22, 2015 letter to the Deputy Director.

We will have many questions for the HCD Division of Codes and Standards Deputy Director as we continue to "crunch the data" and provide summarized, filtered results for public consumption. Our first question for the Deputy Director of Codes and Standards would be:

Why haven't you taken this ‘Preponderance of the Evidence’ to the Office of the Attorney General for the State of California?

Wed, Jan 27, 2016 – Santa Clarita City Council members voted Tuesday to halt the conversion of senior-only mobile home parks to all-age parks citing the need to protect affordable housing options for older city residents.

Council members unanimously approved an “urgency ordinance” that creates a 45-day moratorium on converting senior mobile home parks in the city of Santa Clarita.

Councilman TimBen Boydston also had some choice words on the topic...

Seniors are a very special class of people that are on fixed incomes, don’t have the ability to run out and get a job to support their families,” he said. And, if the net result is that park owners take ownership of a park and then raise the rents at such a rapid rate that the seniors cannot afford to live in their homes in Santa Clarita, then I will tell you there is a special place in hell reserved for you.

To take a line from the MHET Memo below...

Councilman TimBen Boydston clearly is pro-resident, pro-ethical-business, and showed a clear understanding of what mobile home owners face. The MHPHOA firmly believes Councilman TimBen Boydston is the type of individual we would like to see on all city councils. The MHPHOA supports the Santa Clarita City Council.

Mon, Jan 25, 2016 – Here is a listing of real estate companies and/or real estate agents doing business in Kort & Scott Financial Group owned mobile home parks. We've listed the majority sellers first and have provided research notes for each. This page will be updated regularly as we obtain licensing information for each of the agents and the companies they represent.

Sat, Jan 23, 2016 – Campaign Contribution Request – There will be a City Council election in 2016. Dick Haley, who is now the Vice-Mayor, will be up for reelection. As mentioned above, we have met with all the City Council members and had an excellent meeting with Vice-Mayor Haley. He clearly is pro-business, pro-property rights and showed a clear understanding of what parkowners face. He made it very clear he does not support rent control and has been very helpful to us in working with the city.

MHET firmly believes Vice-Mayor Haley is the type of individual we would like to see on all city councils. The MHET PAC will be contributing to his campaign and we encourage you to do the same. Attached is a contribution form with all the details.

Once we receive the checks from the parkowners, we will be meeting again with Vice-Mayor Haley, and you are certainly invited to attend. No date is set as yet. Thank you.

Question for Vice-Mayor Dick Haley

Campaign Contribution – If the MHPHOA AAI schedules a meeting with you, and brings you a 2016 campaign contribution check for a minimum of $25,000.00, can we get the Corona Mobile Home Park Rent Stabilization Ordinance (RSO) back on the agenda and approved?

Sat, Jan 16, 2016 Updates – What is an Unlawful Detainer Lawsuit? It is a legal way for a Kort & Scott Financial Group (KSFG) named business entity to evict you from your mobile home. This usually happens when a mobile home owner hasn't paid all of the monies due on their Sierra Corporate Management (SCM) "Statement".

These monies due on the "Statement" are legally classified (MRL §798.56(e)(1)) as "Rent" and therefore allow KSFG to evict you from your mobile home, that you probably own.

If you don't take your mobile home with you when you're being evicted, e.g. just hitch it up to your vehicle and simply drive away with it, KSFG may obtain possession of it through a Warehouse Lien.

Mobile Home Park Evictions

Over the next 30-60 days, we will be releasing samplings of data regarding evictions in mobile homes parks owned by a KSFG named business entity and managed by Sierra Corporate Management.

Based on our initial review of the data presented, there are potentially thousands of these Unlawful Detainer Lawsuits that have been filed over the past two decades by KSFG named business entities.

Fri, Jan 15, 2016 – We had our meeting with state representatives and counsel on Thursday, January 14, 2016. Three hours of information presentation, discussion, proposals, solutions, etc. It was a positive meeting and we've gleaned a wealth of knowledge for the residents. We will be posting multiples articles over the next few months with solutions for what you may be faced with when living in a Kort & Scott Financial Group owned mobile home park that is managed by Sierra Corporate Management.

DO NOT Buy a Mobile Home in a KSFG Mobile Home Park

What was the most important thing we learned in the meeting? Never buy a mobile home in a KSFG mobile home park, avoid the risk at all costs. If you live in a KSFG mobile home park now, you are being groomed for economic eviction. We have the proof – it is now just a matter of time before we put a stop to it.

Wed, Jan 13, 2016 – Senior Democratic lawmakers want federal regulators to investigate Warren Buffett’s mobile home company after a Seattle Times/BuzzFeed News report that found the company’s predatory practices have harmed minority communities.

U.S. Rep. Maxine Waters of California, the top Democrat on the House committee that oversees financial companies, called on the Justice Department and the Consumer Financial Protection Bureau (CFPB) to “investigate and pursue appropriate corrective action” about “potentially discriminatory lending and collection practices” at Clayton Homes and its lenders, Vanderbilt Mortgage and 21st Mortgage.

Mon, Jan 11, 2016 – It has come to our attention that residents in two mobile home parks in the City of Santa Clarita are facing the loss of their mobile homes through an aggressive predatory business model that leads to evictions and potential homelessness.

Residents from both Granada Villa Mobile Home Park and Sierra Mobile Home Park have been actively pursuing the Santa Clarita City Council to initiate immediate changes to protect the health and safety, along with the financial stability of its mobile home park residents from a Kort & Scott Financial Group (KSFG) DBA and Sierra Corporate Management (SCM), the mobile home park managing division of the KSFG DBA.

Sun, Jan 10, 2016 – From the 2016 California Mobilehome Residency Law Frequently Asked Questions: Rents, Fees and Taxes, 6. Security Deposit

Resident Question: Can the park charge first and last months’ rent plus a 2-month security deposit?

MRL Answer: Normally, when a mobilehome owner is accepted for residency in a mobilehome park and signs a rental agreement, charging first month’s rent and a 2-month security deposit are permitted. (Civil Code §798.39) After one full year of satisfactory residency (meaning all rent and fees have been paid during that time), the resident is entitled to request a refund of the 2-month security deposit, or may request a refund at the time he or she vacates the park and sells the home. (Civil Code §798.39(b))
2016 California MRL FAQs

Submit your request for a security deposit refund in writing to Sierra Corporate Management today! The MRL specifically states that SCM must refund your deposit after one full year of satisfactory residency. Do not wait until you vacate the park and/or sell your mobile home.

Sat, Jan 9, 2016 – Residents of Corona La Linda Mobile Home Park achieved a victory after bringing their concerns to the attention of the Corona City Council five (5) times in six months. The mobile home residents organized, and were able to prevent a proposed space rent increase from $650 to $1,300 for new buyers.

On Tuesday, December 29, 2015, Corona La Linda residents received their first rent increase notification from Sierra Corporate Management with the rent increase going into effect on Sunday, May 1, 2016. Space rents will increase approximately 20% from $650 to $780 per month, a $130 per month increase. The reason provided to residents for a majority of the increase is as follows...

Thu, Jan 7, 2016 – Have you ever wondered where the money is coming from to fund the Kort & Scott Financial Group (KSFG) empire? Based on our research, Mr. Chad Thomas Hagwood, Senior Vice President of Originations at Capital One Multifamily Finance, has been responsible for arranging over $165M in KSFG funding since 2005.

KSFG MHP Financing Arranged by Chad Thomas Hagwood

1. Continental Manufactured Home Community

   2804 West First Street, Santa Ana, California 92703

   • Purchased: Jun 2005
   • Amount: $94,700,000 1/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate
2. Cottonwood Village Mobile Home Park

   6441 Cypress, Santa Fe, New Mexico 87507

   • Purchased: Jun 2005
   • Amount: $94,700,000 2/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate Loan
   • Refinanced: 2013
   • Amount: $30,000,000
   • Loan Type: Capital One Fannie Mae DUS
3. Hollydale Mobile Home Park

   5700 Carbon Canyon Road, Brea, California 92823

   • Refinanced: Jun 2005
   • Amount: $94,700,000 3/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate
4. Knolls Lodge Mobile Home Park

   23701 South Western Avenue, Torrance, California 90501

   • Refinanced: Jun 2005
   • Amount: $94,700,000 4/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate
5. Knolls Manor

   24200 Walnut Street, Torrance, California 90501

   • Refinanced: Jun 2005
   • Amount: $94,700,000 5/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate
6. Rancho Huntington Mobile Home Park

   19361 Brookhurst Street, Huntington Beach, California 92646

   • Purchased: 2012
   • Amount: $25,400,000
   • Loan Type: Capital One Fannie Mae Adjustable Rate
7. Riverside De Santa Fe

   7460 Riverside Loop, Santa Fe, New Mexico 87507

   • Purchased: Jun 2005
   • Amount: $94,700,000 6/6 Mobile Home Parks Package
   • Loan Type: GMAC Fannie Mae Fixed Rate
8. Sierra Mobile Home Park

   18204 Soledad Canyon Road, Santa Clarita, California 91387

   • Purchased: Oct 2015
   • Amount: $3,270,000
   • Loan Type: Capital One Fannie Mae Adjustable Rate
9. Starlight Mobile Home Park

   351 East Bradley Avenue, El Cajon, California 92021

   • Purchased: May 2015
   • Amount: $17,981,000 Cash
   • Refinanced: Dec 2015
   • Amount: $11,719,000
   • Loan Type: Capital One Freddie Mac Adjustable Rate

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