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Gov. Brown Signs AB 225 Changing Mobilehome Park Resident Ownership Program

On September 20, 2014, Governor Brown signed Assembly Bill 225 (Chau and Nestande) into California law. The Mobilehome Park Resident Ownership Program (“MPROP”) operates with the purpose of “[financing] the preservation of affordable mobilehome parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies.”

Specifically, AB 225 will now require the Department of Housing and Community Development (the administrator of MPROP) to extend the MPROP loan terms to 40 years (previously 30 years) and will increase the maximum loan-to-value ratio. By passing AB 225, the California legislature intended to encourage the acquisition and rehabilitation of manufactured communities that have otherwise fallen into disrepair. By improving MPROP, funding will likely be more accessible to help preserve these communities as a source of affordable housing in the State of California.

In general, an individual MPROP loan in a subdivision conversion will be for a term of no more than 40 years with 3% or less simple interest. The loan will cover 50% to 100% of the acquisition costs for purchased spaces depending on a variety of different factors. If you would like a more detailed analysis of these factors or have questions about the Mobilehome Park Resident Ownership Program generally, please call the experienced mobilehome conversion attorneys at The Loftin Firm, P.C. today.