As housing prices continue to soar nationwide, state policymakers are increasingly looking to resident-owned mobile home parks to offer affordable and stable housing options. Over the years, manufactured homes, commonly called mobile homes, have become an important component of affordable housing. With new federal and state initiatives, residents are finding support to purchase their communities collectively.

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A Growing Community of Resident-Owned Parks

The resident-owned model has positively impacted numerous mobile home parks, where residents come together to collectively buy their communities together. Programs promoting this model allow residents to avoid frequent rent hikes and potential displacement by private investors, which can often destabilize traditional mobile home parks. With over 250,000 lots currently owned by private equity funds across more than 1,300 mobile home communities, the vulnerability of mobile home residents is more apparent than ever. Due to the high cost of relocating a mobile home, these residents often need more options in the event of increased rental fees or park redevelopment.

New Laws for Stability and Protection

To address these challenges, 22 states have enacted or strengthened laws allowing manufactured home residents to purchase the land beneath their homes collectively. Some of these laws provide residents with the “right of first refusal,” ensuring they can buy their parks if they are put up for sale. Other laws require park owners to notify residents of their intent to sell so that residents can take action if they choose.

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Federal Support in Strengthening Resident-Owned Communities

Federal support has also been critical in promoting the resident-owned model. Earlier this year, the government allocated $225 million in grants to support improvements in mobile home communities, including those owned by residents. The government further announced plans to make federally insured financing available for resident-owned parks, providing options to maintain affordability or make necessary improvements without substantial rent hikes.

A Complex Perspective from the Industry

Despite resident-owned mobile home parks’ growing success and popularity, only some view this model as a perfect solution. Park owners and the Manufactured Housing Institute (MHI), a leading trade organization for manufactured homes and park owners, have expressed reservations. MHI argues that while some residents may benefit from ownership, others may find managing a community burdensome. The Institute’s CEO, Lesli Gooch, highlighted that cooperatively owned parks might lack the financial resources available to private owners for long-term infrastructure and maintenance needs. Gooch emphasizes that residents should understand the implications of ownership before entering into such agreements.

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The Future of Resident-Owned Communities

In light of rising housing costs, the appeal of resident-owned mobile home parks continues to grow. Organizations like ROC USA, which has helped establish hundreds of resident-owned parks, work to ensure communities have access to financial resources for long-term stability. This structure allows co-ops to build equity over time and refinance as necessary to fund infrastructure improvements, ensuring that large debt payments do not burden residents.