California MHP News

Sun, May 27, 2018 – On Thu, May 10, 2018 and Wed, May 16, 2018, Alexander Segal, the Acquisitions Director for Kort & Scott Financial Group (KSFG) registered three (3) new DBAs; Rainbow MHP Associates LP, Rainbow Uppertier Associates LLC and 722 Rainbow Associates LLC.

1. 2018-05-16 – 722 Rainbow Associates LLC
2. 2018-05-10 – Rainbow MHP Associates LP
3. 2018-05-10 – Rainbow Uppertier Associates LLC

Attention Rainbow Mobile Home Park: Do Not Sign Long-Term Lease Agreements

Suspicion: We are aware of seven (7) mobile home parks in California that contain the name Rainbow. Five (5) of those are in cities outside of the typical KSFG target areas and have 40 or less spaces. There is one (1) park that appears to qualify as a potential purchase and that is Rainbow Mobile Home Park (52 Spaces, All Ages) located at 715 West 220th Street, Torrance, California 90502. KSFG currently own two (2) mobile home parks in Torrance; Knolls Lodge Mobile Home Park and Knolls Manor which are 3.0 miles from Rainbow Mobile Home Park.

List of Kort & Scott Mobile Home Parks

Sat, May 26, 2018 – From the 2018 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))
2018 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.

Sun, May 20, 2018 – The MHPHOA have received multiple reports that the law firm of Hart, King may no longer be representing Kort & Scott Financial Group (KSFG) companies. Letters received by residents in Southern California involved in litigation indicate that Thomas Darren Barker (SBN 176492) of Michelman & Robinson LLP in Orange County is now representing the KSFG companies that own/manage the mobile home park they live in.

Michelman & Robinson LLP has offices in Los Angeles, Orange County, San Francisco, Chicago and New York. The MRLLP.com website indicates that they do Pro Bono work for low-income individuals in Los Angeles. They also state that they are an active supporter of the New York Legal Aid Society, having frequently fought on behalf of its clients against unscrupulous landlords.
Michelman & Robinson LLP – Pro Bono

Timeline of KSFG Attorney Representation

The MHPHOA have reviewed a large number of civil court lawsuits (1989-2018) involving KSFG companies and its officers. Here is a timeline of attorney representation from 1996 to 2018. This is not an exhaustive list. There are other attorneys not listed as their names may have only appeared once, or we did not have access to full documentation to determine who the "Attorney for Defendant(s)" were when multiple defendants were involved.

1. 2015-2018 – Michelman & Robinson LLP
2. 2015-2018 – Kimball, Tirey & St. John LLP
3. 2013-2018 – Hart, King & Coldren
4. 2006-2018 – Cooksey, Toolen, Gage, Duffy & Woog
5. 2003-2013 – Dowdall Law Offices, A.P.C.
6. 1998-2003 – Law Offices of Michael J. Rubino
7. 1996-1997 – Stuart M. Price & Associates

Fri, May 18, 2018 – Federal officials are investigating the lending practices of Clayton Homes, the mobile-home company under the umbrella of Warren Buffett’s business empire, following an investigation by The Seattle Times and BuzzFeed News that raised questions about how the company targeted and treated minority borrowers.

After the story on Clayton’s business in minority communities was published, U.S. Rep. Maxine Waters of California called on the Justice Department and the Consumer Financial Protection Bureau to investigate Clayton’s practices. Her letter was signed by three other lawmakers.

An initial Seattle Times story, done with the Center for Public Integrity, a nonprofit investigative news outlet, had explored reports from Clayton customers about deceptive sales tactics and how Clayton’s interest rates that can exceed 15 percent leave many buyers in loans they can’t afford and in depreciating homes that are difficult to sell or refinance. In the stories, customers also reported being led to believe that Clayton’s in-house lender, Vanderbilt, was the only option to finance the homes they were buying despite laws prohibiting sales reps from doing double duty as loan officers unless they have obtained a separate license.

The Mobile Home Trap: How a Warren Buffett Empire Preys on the Poor

Thu, Apr 2, 2015 – Billionaire philanthropist Warren Buffett controls a mobile-home empire that promises low-income borrowers affordable houses. But all too often, it traps those owners in high-interest loans and rapidly depreciating homes.

Thu, May 10, 2018 – The owners of mobile home parks were not able to immediately claim compensatory damages after they alleged a nearby facility dumped toxic waste on its property.

The court stated that Ametek pointed out the plaintiff Greenfield MHP Associates LP, et al. are not allowed to be rewarded compensatory damages grounded on any potential remediation costs for the future. The district court decided the case will proceed under the notion that if the plaintiffs do win at trial when it comes to Ametek’s alleged liability, the district court will move forward with the new information in mind.

The legal issues between the parties began after the mobile home parks' owners filed a lawsuit against Ametek and Senior Operations LLC after a manufacturing facility allegedly contaminated the ground after it released toxic chemicals, including more than 500,000 gallons of liquid waste into the soil and water by 2003. The plaintiffs allege a plume extended beyond the facility's boundaries and contaminated soil and groundwater under the mobile home parks. An expert pointed out that if the plume was not remediated, it could impact the plaintiffs' properties for 185 years, the court's decision states.

Greenfield Mobile Home Estates

• Address: 400 Greenfield Drive, El Cajon, California 92021
• County: San Diego
• Phone: 619-444-7752
• Spaces: 187
• Type: All Ages
• 2018 Space Rent: $1,399
• Management: Sierra Corporate Management
• DBA: Greenfield MHP Associates LP, Mobilehome Equities Inc, Tustin Ranch Partners Inc
• DBA Filing: Aug 1993

Starlight Mobile Home Park

• Address: 351 East Bradley Avenue, El Cajon, California 92021
• County: San Diego
• Phone: 619-562-5755
• Spaces: 162
• Type: All Ages
• 2018 Space Rent: $1,371
• Purchased: May 2015, Amount: $17,981,000 (Cash)
• Refinanced: Dec 2015, Amount: $11,719,000
  Loan Type: Freddie Mac ARM, Chad Thomas Hagwood
• Refinanced: Jun 2018, Amount: $19,100,000
  Loan Type: Fannie Mae SARM, Chad Thomas Hagwood
• Management: Sierra Corporate Management
• DBA: Davis Group Exchange LLC, Starlight Exchange LLC, Starlight MHP LLC
• DBA Filing: Apr 2015, Jul 2015

Fri, May 4, 2018 Updates – On Tue, Mar 27, 2018, Alexander Segal, the Acquisitions Director for Kort & Scott Financial Group registered one (1) new DBA; Tahitian Partners LLC. This brings the total to three (3) DBAs for the Tahitian name.

1. 2018-03-27 – Tahitian Partners LLC
2. 2018-03-20 – Tahitian MHP Associates LP
3. 2018-03-19 – Tahitian Uppertier Associates LLC

Sun, Mar 25, 2018 – On Mon-Tue, Mar 19-20, 2018, Alexander Segal, the Acquisitions Director for Kort & Scott Financial Group registered two (2) new DBAs; Tahitian MHP Associates LP and Tahitian Uppertier Associates LLC. These types of DBA filings usually precede a mobile home park purchase. We cannot locate any publicly available information regarding a Tahitian Mobile Home Park sale. This is normal, these are referred to as Pocket Listings or Off-Market NNN Properties. If anyone is aware of a Tahitian Mobile Home Park that is for sale or, it may have sold already, please contact the MHPHOA with more information.

Attention Tahitian Mobile Home Park: Do Not Sign Long-Term Lease Agreements

Suspicion: We are aware of two (2) mobile home parks with the name Tahitian; Tahitian Mobile Home Park (236 Spaces, All Ages) located at 15445 Cobalt Street in Sylmar, California 91342 and Tahitian Terrace (158 Spaces, All Ages) located at 16001 Pacific Coast Highway in Pacific Palisades, California 90272. Kort & Scott currently own one (1) mobile home park in Sylmar that we are aware of; Blue Star Mobile Home Park (186 Spaces, All Ages) located at 12401 Filmore Street, Sylmar, California 91342. It would make sense for Kort & Scott to purchase a park within a reasonable radius of the one park they currently own in Sylmar.

List of Kort & Scott Mobile Home Parks

RE: BoaVida Communities, Abraham Arrigotti, Drita Bronkey

Wed, May 2, 2018 – Affiliates of Sacramento-based BoaVida Communities LLC and Cascade Corporate Management recently purchased upscale recreational vehicle and mobile home parks in San Diego County for $27 million.

The Roadrunner Club at Borrego LP, a private equity pooled investment fund, raised $6.7 million for part of the purchase of the Roadrunner Club, which is a 403-site mobile home park and adjoining 18-hole golf course in Borrego Springs, according to disclosures filed last month with the Securities and Exchange Commission.

Springs RV & Golf Resort LP raised $1 million for a private equity pooled investment fund to buy the neighboring Springs at Borrego recreational vehicle park with 163 spaces and a nine-hole golf course, according to another SEC filing.