Joining the Co-op
The answer is that a resident owned Park is the only way for residents to control their destiny as a mobile home park. An all-resident Board of Directors, voted in by the resident members, will make the best decisions to control costs, keep rent level stable, and keep the park open as a mobile home park for decades. Any other alternatives provide an uncertain outcome with the risk of large rent increases or even park closure.
McGovern Escrow Services, Inc. (Escrow Number 101213) will hold your funds until the National Cooperative Bank loan closes.
Your $2,500 is deposited in your name in a licensed independent escrow company.
That disclosure and that specific language is required by statute, the Map Act, (Gov Code Section 66428.1) and it actually contemplates a different situation than what is going on here.
The “protections” under the Map Act that the disclosure is aimed at are certain procedures that are intended to help avoid economic displacement of residents in the event that the park converts and, for example, where spaces are sold to get around any rent control restrictions or where the property converts to condos and become unaffordable.
Here, that’s not an issue because no one is being displaced and all residents can become members. All cooperative members have a say in the subsequent operation of the park.
The Map Act is designed to protect local control, design, and improvement of property and to protect the public, residents, and purchasers from prevent fraud and exploitation.
Here, the process is necessarily inclusive and open to all residents who choose to participate and, if the park converts and a resident decides not to join the cooperative, that resident remains in their space as a tenant paying rent to the cooperative; no one will have to move.
In short, the disclosure is problematic and isn’t really helpful or applicable here. But it’s required by statute. The residents are actually gaining protections rather than losing them.
No. Becoming a member is voluntary. It is not mandatory for current residents to become cooperative members. However, if a nonmember household leaves the park in the future, and sells or moves their home, the new occupant must become a member.
A portion will fund the transaction costs and will be used to close the NCB loan.
A professional escrow company holds the funds according to the terms of the Membership Agreement until the National Cooperative Bank is ready to close.
No, all that is required is a deposit of $500 or $250 for low income residents who wish to join the co-op. Any balance of payment would be required at closing of escrow.
Managing the Co-op
A professional property management company under the direction and control of the FRAC Board of Directors, with fully bonded employees.
No, you will not own your own lot, but you will be able to hold a membership interest in the cooperative corporation that owns the park.
Franciscan Resident Advisory Committee, A California Non-Profit public benefit corporation, established August 6, 2010. (FRAC)
Monthly carrying charges will go towards paying the park mortgage, property taxes, utilities, insurance, and other services. The cost of monthly carrying charges will depend on several factors, including the annual cost of maintaining the park and the mortgage. The Occupancy Agreement replaces the member’s previous lease agreement with the prior owner. Non-members continue to pay rent to the Cooperative per the terms of their existing lease agreements.
Monthly carrying charges are collected by the cooperative from members, similar to the monthly rents collected by the current park owner, according to the terms of the Occupancy Agreement for the member’s space.
An appraisal and physical needs assessment will be done to asses what repairs are needed in the park. A reserve structure fund will be put in place to address the repairs and infrastructure needs of the park after the co-op is formed.
The by-laws state that only a resident or residents of a single household of the park can purchase membership interest. A partnership, corporation or any third party is NOT permitted to trade in membership interests. This safeguard in the by-laws is designed to prevent an outside party from attempting to acquire the park.
The answer is “Yes.” They will need to update their paperwork with the membership committee. The co-op difference is that the membership committee is committed to the needs of the residents. Every effort will be made to ensure the designated heirs will remain in your home according to your designation and wishes, without any penalties. The co-op difference is everyone must be treated fairly, equally, and respectfully without regard to whether outside interests could make money on the space by demolishing the home and reselling it at market rate.
Yes, your total membership fee plus earned interest, as well as your home, may be willed to your heir.