Resident Ownership.
As Co-op members, residents will own and control the Franciscan Park.
Cooneratives are Democratic. In a cooperative, one member has one vote. Equally owned and
controlled.
Community control.
As mutual owners, member-residents participate at various levels in the
decision-making process, unlike a typical landlord-tenant relationship. Members own the
cooperative, and are in charge of the decision-making process that affects its members.
Examples of such decisions could be participation in PG&E pilot programs for direct utility
billing of mobile home park residents.
Elimination of outside landlord.
Cooperatives offer control of one’s living environment and
security not available in a rental relationship.
Affordability.
Cooperatives are not profit-driven. Members have no reason to substantially
increase monthly rents or utility billing unless taxes or operating costs increase. Typically,
monthly payments remain reasonable and stable.
Tax deductions.
For income tax purposes, the cooperative members are homeowners and, as
such, can deduct their share of the real estate taxes and mortgage interest paid by the cooperative.
Equity.
Limited equity housing cooperatives provide for accumulation of individual member
equity as determined by statute and set by the board of directors.
Limited liability.
Members have no personal liability on the cooperative mortgage. The
cooperative is responsible for paying the mortgage loans.
Flexibility.
There is no one right way to do a cooperative. They can be flexible to fit different
community and individual needs. There are big coops with thousands of members, and there are
small ones with only three members. Many other mobile home parks in California are owned
and operated as limited equity housing cooperatives under California law. The Franciscan Park’s
Cooperative Bylaws have already been approved by a park-wide vote, and are ready and waiting
to be implemented.