California MHP News

Mon, Apr 23, 2018 – On April 23, 2018 the United States Court of Appeals for the Ninth Circuit issued an important Opinion overturning a lower District Court decision which had awarded a large monetary judgment in favor of notorious park owner James Goldstein. Entitled Colony Cove Properties, LLC v. City of Carson, the case involved the City of Carson’s “Mobile Home Space Rent Control Ordinance” (“RSO”), and a 2008 application by Goldstein’s LLC which sought a $342.00 rent increase from each homeowner.

GSMOL Memo: Important Federal Court Victory Announced
File Type: PDF, Pages: 2, Size: 120KB

RE: BoaVida Communities, Abraham Arrigotti, Drita Bronkey

Thu, Apr 12, 2018 – Despite rain and wind, residents from the former Wagon Wheel mobile home park and Valley Oaks staged a protest across Willits City Hall Wednesday, April 11 at Bud Snyder Memorial Park to bring awareness to their problems with an out of the area property management. BoaVida Communities took over ownership and management of the parks last year and the residents want the Willits City Council to pass a rent stabilization ordinance similar to Ukiah’s and other nearby cities in the area.

Tenants said they will protest every other Wednesday to coincide with City Council meetings until the issue has been resolved.

Representatives from BoaVida Communities did not return emails seeking questions posed by residents regarding issues relating to park management at Wagon Wheel and Valley Oaks.

Previous News Coverage

Sat, Apr 07, 2018 Updates – Thu, Jan 11, 2018 – Kort & Scott Financial Group has landed a $30 mil Fannie Mae adjustable-rate loan for the acquisition of a leasehold interest in Crestmont Mobile Estates, a 289-space manufactured housing community (MHC) located 33 miles southeast of Los Angeles in Brea.

Crestmont Estates is fully occupied and was originally developed in 1970 as a 263-space community. Subsequent construction in 2007 added 26 spaces. The community has a pool, clubhouse with recreation room, and central laundry.

Kort & Scott Financial Group is the 13th largest owner and operator of MHCs in the country. Based in Southern California, Kort & Scott has acquired over 9,500 MHC properties to date and currently manages a portfolio spanning California, Colorado, Arizona, and New Mexico.

Capital One’s Chad Thomas Hagwood originated the loan and Brandon Pate, also with Capital One, managed the transaction. The 10-year, adjustable-rate loan has six years of interest-only payments followed by amortization on a 30-year schedule.

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Sat, Mar 24, 2018 – On Wed, Dec 6, 2017, Alexander Segal, the Acquisitions Director for Kort & Scott Financial Group registered two (2) new DBAs; Crestmont Lowertier Associates LP and Crestmont Uppertier Associates LP. We are not sure of the date of sale but if we use historical data and time frames, Kort & Scott purchased Crestmont Mobile Estates in Jan 2018.

Crestmont Mobile Estates

• Address: 1051 Site Drive, Brea, California 92821
• County: Orange
• Phone: 714-529-4131
• Spaces: 289
• Type: All Ages
• 2018 Space Rent: $1,300
• Leasehold Purchased: Jan 2018, Amount: $30,000,000
  Loan Type: Fannie Mae ARM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Crestmont Lowertier Associates LP, Crestmont Uppertier Associates LP
• DBA Filing: Dec 2017

Tue, Apr 3, 2018 – Capital One has provided the Kort and Scott Financial Group with a $48.8 million Fannie Mae structured adjustable-rate loan for Lincoln Center Mobile Home Park, a 305-unit manufactured housing community in Cypress, California.

‘Thanks to our close working relationship with Kort & Scott and Fannie Mae, we were able to structure and close an exact fit for the borrower’s needs’, Chad Thomas Hagwood, Capital One Multifamily Finance’s senior vice president of its Southeast region, said. ‘The sponsor is using the proceeds to pay off their existing loan and secure funds to further enhance this already great community.’

The development was 92 percent occupied at the time of the loan.

The Kort and Scott Financial Group is currently the 13th-largest owner/operators of MHCs in the U.S., with 38 communities in its portfolio, representing 8,600 MHC sites in California, Colorado and Arizona.

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Note: According to the Orange County Tax Assessor, the property (land including common areas) was assessed at $23,308,579 as of Jan 1, 2017.

Resident Question: So how did they borrow double what it was worth?

Answer: The signing of the long-term leases aids in the refinancing of a parks debt, as a major component of an appraisal of the parks value is based on its rental income potential over time. These long-term leases lock in guaranteed annual rental increases at a minimum of 6-8% for the leased spaces.

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Mobile Home Park Refinanced

• Lincoln Center Mobile Home Park
  9080 Bloomfield Avenue, Cypress, California 90630

Sun, Apr 1, 2018 – As a landlord of a mobilehome park or tenant who resides in a mobilehome, you are part of a unique housing community that is covered by both the Rent Stabilization Ordinance (RSO) and State Law (Mobile Home Residency Law).

The RSO applies to mobile homes in mobile home parks and they are included in the definition of rental units that are subject to the RSO (LAMC Section 151.02 Definitions – Rental Units), whether rent is paid for the mobile home and the land, or for the land alone.

The City has 57 Mobile Home Parks with approximately 6,500 spaces. The majority of Los Angeles mobile home parks are concentrated in the San Fernando Valley and San Pedro areas.
Los Angeles RSO Overview for Mobile Home Parks

Map of 57 Mobile Home Parks in Los Angeles, CA Protected by RSO