Resident curated mobile home owners news and information for residents of Mobile Home Parks owned by Kort & Scott (KS) companies. The MHPHOA also provides news coverage for Mobile Home Parks not owned by KS companies.
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RE: Kort & Scott Financial Group
Sun, Feb 24, 2019 – The MHPHOA regularly monitor online resources for mentions of Sierra Corporate Management. Over the past 30 days we have received notifications for a multitude of job postings by Sierra Corporate Management on Indeed.com.
Sierra Corporate Management is on an unusual hiring spree. Most of these jobs have been posted in the past 30+ days, some within the past 7 days. This gives you a good idea of which 7 parks may be without Park Managers and/or which Park Managers may soon be replaced.
There are 7 job postings for Community Manager, 6 job postings for Assistant Park Manager and 9 job postings for Maintenance Technician.
It has also been discovered during the review of these job postings that KSFG/SCM may own and/or operate properties in the State of Nevada, the MHPHOA are researching further.
We are a growing organization with multiple sites throughout California, Nevada, New Mexico and Colorado.
Mon, Feb 18, 2019 –
The Florence Commons community consists of about 300 mobile homes of varying vintages, mostly single-wide, many valued at less than $30,000 apiece, set 20 feet apart from one another. The occupants of some will tell you: The floors buckle. The ceilings crack. The doors don't shut right. Their homes are sinking.
Yet Florence Commons, along with more than 200 other mobile home parks around the U.S., has produced hefty returns for Stockbridge Capital, a $13-billion San Francisco-based private equity firm, and its major investors.
Their mobile home park company has produced tens of millions for investors in recent years and saw a return on investment of more than 30% between late 2016 and the end of 2017, according to documents.
It has received $1.3 billion in financing through government-sponsored lender Fannie Mae, which says mobile homes are “inherently affordable.” The money helped them buy existing mobile home parks.
Related Note: Kort & Scott Financial Group DBAs have received in excess of $600 million in government sponsored Fannie Mae financing. Follow the Money
Fri, Feb 15, 2019 – From the 2019 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))
2019 California MRL FAQs
Submit your request for a security deposit refund in writing to Sierra Corporate Management today (or KSFG DBA). The MRL specifically states that SCM (or KSFG DBA) must refund your deposit after one full year of satisfactory residency if requested in writing.
Do not wait until you vacate the park and/or sell your mobile home.
RE: Kort & Scott Financial Group
Thu, Feb 14, 2019 – On Fri, Feb 1, 2019, a new DBA named Apex Residential Management Inc was registered by Registered Agents Inc with an Entity Address of 320 North Park Vista Street, Anaheim, California 92806 which is the Corporate Headquarters for Kort & Scott Financial Group aka Sierra Corporate Management.
In addition to the DBA registration, the domain Apex-RM.com was registered on Fri, Dec 7, 2018 and appears to be the website (Wix Inactive) for this new DBA. The Apex-RM.com domain is already being used for mobile home park email communications.
On Wed, Oct 9, 2016, Ricky R. Flandez, then Controller for Kort & Scott Financial Group, registered a new DBA named Platinum Acquisitions LLC. Not long thereafter, the Platinum Acquisitions LLC website, registered on Tue, Oct 18, 2016, launched with these statements...
Platinum Acquisitions owns almost 10,000 mobile home spaces and apartment units spread throughout the West Coast, valued at well over $1 billion. We very rarely sell any of our assets and are always in a position to buy, regardless of if we are in an exchange or not.
The company specializes in the acquisition and management of multi-family properties, specifically mobile home parks, which offer affordable housing alternatives in desirable markets. We are arguably the most aggressive buyers in the industry and will pay aggressively for desirable assets. We have the financial strength and flexibility to make virtually any sensical deal work.
The Kort & Scott Financial Group corporate website has been offline since Dec 2018. If our suspicions are correct, it appears that these changes may be an attempt to disassociate themselves with the Kort & Scott and Sierra Corporate Management brands, both of which have been the subject of past and ongoing major litigation.
In Nov 2018, both KSFG and SCM were found guilty by a Los Angeles, California jury of negligence, unfair business practices, retaliatory eviction and financial elder abuse. The jury awarded 55 of 235 residents $5.5 million in Actual Damages and $34 million in Punitive Damages. The Phase II Jury Trial for the remaining 180 of 235 residents is scheduled for Mon, Aug 19, 2019. See: Friendly Village Mobile Home Park
Wed, Feb 13, 2019 – Introduced by Assembly Member Voepel, Assembly Bill 519, an act to repeal and add Section 798.80 of the Civil Code, relating to mobilehome parks.
Existing law, the Mobilehome Residence Law, requires the owner of a mobilehome park who lists for sale or offers to sell the mobilehome park to any party to provide written notice of the owner’s intention to sell the mobilehome park to a resident organization formed by homeowners for purposes of converting the mobilehome park to condominium or stock cooperative ownership interests and for purchasing the mobilehome park, subject to specified conditions.
This bill would repeal those provisions and would instead provide that a resident organization of a mobilehome park has a right of first refusal to purchase a mobilehome park if the mobilehome park owner decides to sell or receives a formal offer from a 3rd party to purchase the park, subject to specified conditions. The bill would prohibit a mobilehome park owner from selling the mobilehome park to a 3rd party if, within 15 days of receiving notification that the owner plans to sell, the resident organization notifies the owner that the resident organization plans to make an offer to purchase the mobilehome park.
AB-519 Mobilehome Parks: Sale (2019-2020)
RE: Kort & Scott Financial Group
Tue, Feb 12, 2019 – On Sun, May 27, 2018, the MHPHOA reported that Kort & Scott Financial Group registered three (3) new DBAs.
It has now been confirmed that the purchase of Rainbow Mobile Home Park by Kort & Scott Financial Group DBAs occurred in Jun 2018. Residents have informed the MHPHOA that they received a letter indicating their mobile home park had been sold in Jun 2018, they were unaware that the park was for sale or that it had been sold until after the fact.
Rainbow Mobile Home Park is in the Unincorporated area of Los Angeles County and is now protected by a Rent Stabilization Ordinance (RSO) that caps space rent increases at 3.0% annually.
Residents have recently received letters from park management with an offer of a $100.00 gift card if they sign a 15 (7.0%), 20 (6.5%) or 25 (6.0%) year long-term lease. These residents know they are now protected by the Los Angeles County RSO.
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.
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.
RE: Kort & Scott Financial Group
Mon, Feb 11, 2019 – On Tue, Apr 3, 2018, Capital One (Chad Thomas Hagwood) provided Kort & 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.
According to the Orange County Tax Assessor, the property (land including common areas) was assessed at $23,308,579 as of Jan 1, 2017. Residents questioned how KSFG were able to obtain refinancing for more than double the value of the land. This is due to the Lease Receivables.
The signing of these 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.
Using basic calculations, we can roughly estimate what a long-term lease may be worth (average) in Lincoln Center Mobile Home Park. We'll use a 90% occupancy rate and divide the numbers by 275 spaces.
|(+) Loan Amount:||$48,800,000.00|
|(-) Assessed Value:||$23,308,579.00|
|(÷) Occupied Spaces:||275|
|(=) Per Lease:||$92,696.00|
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.
RE: Kort & Scott Financial Group
Fri, Feb 8, 2019 – Online records indicate that the Phase II Jury Trial (180 of 235 Plaintiffs) for Friendly Village Mobile Home Park is scheduled for Mon, Aug 19, 2019. Phase I Jury Trial (55 of 235 Plaintiffs) information is listed in the below chronological timeline of events.
There is a Final Status Conference scheduled on Tue, Jul 23, 2019 in addition to other hearings that may change as this case continues to progress.
Sun, Jan 6, 2019 – A chronological timeline of events for the Civil Lawsuit filed against Kort & Scott Financial Group and its business entities. Friendly Village Mobile Home Park was purchased by KSFG in Feb 2014 for $23,000,000 – it is now in a Bankruptcy Distress Sale for $27,400,000.
Fri, Nov 22, 2019 –
Kabateck LLP attorneys representing hundreds of low-income mobile home residents in Long Beach, California secured a nearly $57 million settlement, which is the largest settlement ever involving a mobile home park.
Beginning July 1, 2021, any mobilehome or manufactured homeowner living in a mobilehome park under a rental agreement may submit a complaint for an alleged violation of the Mobilehome Residency Law. Any mobilehome or manufactured homeowner residing in a permitted mobilehome park is eligible to submit a complaint. Complaints must be submitted to HCD. HCD provides assistance to help resolve and coordinate resolution of the most severe alleged violations of the Mobilehome Residency Law.
Any mobilehome / manufactured homeowner who lives in a mobilehome park.
Any complaints for issues within mobilehome parks related to Mobilehome Residency Law violations (California Civil Code).
Common violations include illegal grounds for eviction, failure to provide proper notice of rent increases, or no written rental agreement between the park and mobilehome owner.
Complaints must be submitted to HCD. HCD provides help to resolve and coordinate resolution of the most-severe alleged violations of the Mobilehome Residency Law. Visit the Submit a Complaint webpage for details.