(C) Virginia Mercury
This story was originally published by Virginia Mercury and is unaltered.
. . . . . . . . . .



General Assembly offers new hope for aging mobile home parks [1]

['More From Author', 'February', 'Lee Householder']

Date: 2024-02-21

While many of the costs that have contributed to inflation over the past three years have begun to moderate, there is one that hasn’t: housing. Over the past year, housing and related costs account for two-thirds of the increase in the core Consumer Price Index. Pick up any newspaper or follow news feeds online and you are certain to see reporting on the housing crisis that we are facing in most of our communities.

A report issued last month by the Joint Center for Housing Studies at Harvard University found that the extended period of rising rents during the pandemic has put unaffordability at all-time highs for renters. For the first time, the percentage of renters paying more than 30% of their income for housing reached 50%. Virginia trails close behind the national trend, with over 48% of renters facing a moderate or severe housing cost burden. The impacts are being felt across the board: homelessness is rising; seniors have few affordable choices as they downsize and need more services; and young households face high rents in new “luxury” apartment communities. Moreover, the repercussions extend to mental health and educational outcomes for children residing in unstable housing.

Homebuyers are encountering similar challenges. Reports to the Virginia Housing Commission last year pointed to limited home inventory and rising interest rates as major contributors to rising homebuyer barriers. Twenty years ago, 60,000 homes per year were being built in the state. Today that number is closer to 40,000 –and the homes that are being built are more expensive with very few new “starter” homes coming onto the market.

At a time when affordable housing is in the spotlight, there are often overlooked and frequently misunderstood resources that are also seeing rapid rent increases: manufactured home parks.

Manufactured homes, including those located in parks, represent one of the largest components of unassisted affordable housing in the nation. In Virginia, mobile home parks provide some of the most deeply affordable housing in many of our communities. But these parks are increasingly at risk as many long-time, traditional park owners are aging and looking to sell as they retire. At the same time, large, national real estate investors are increasingly interested in purchasing these previously ignored assets. When parks are purchased, rents rise and frequently tenants also become responsible for water and sewer payments as well as other fees.

Since 2020, Virginia’s Department of Housing and Community Development has received 146 notices of Intent to Sell or Purchase Offer from park owners, indicating how active this market has become.

Park residents face challenges that typical apartment renters do not. If they own their mobile home, as many do, they have little choice but to pay higher lot rentals and absorb utility bill transfers since they are unable to move their homes. The term “mobile” is a misnomer; these homes are mobile only to the extent that they are transported to their initial location. After that, the cost and impracticality of moving them means that they stay put.

Legislation is pending in the General Assembly that offers some relief. Del. Paul Krizek’s House Bill 1397 offers local governments, tenants and nonprofit organizations the opportunity to purchase parks when sales are pending to preserve affordability and improve living conditions. There is evidence that this approach can work.

Three years ago, the Richmond nonprofit project:HOMES acquired a 50-lot manufactured home community in Chesterfield County. With support from the county, Virginia Housing and other foundations, project:HOMES improved the park’s infrastructure, including roads, drainage, sewage and lighting. To date, they’ve replaced eight old, deteriorated homes with new, energy-efficient ones while keeping costs affordable. They plan to raise more funds to provide new replacement units for each household on the waiting list. In the meantime, they’ve repaired existing units for residents. Additionally, project:HOMES constructed a new community center, which hosts offices, a multipurpose space, and a playground. The center serves as a hub for community events, meetings and resource coordination programs, such as bilingual classes on financial literacy, health, and ESL. They’ve also built a cul-de-sac turnaround, improving safety for children by allowing the school bus to pick them up within the community.

In Charlottesville, the local Habitat for Humanity affiliate purchased a 351-lot mobile home community and is making good on its commitment to provide permanent, affordable homes to those residents – the largest Habitat sponsored project in the nation. In Manassas, Catholics for Housing purchased a 58-home park with failing infrastructure. It has corrected the unsafe conditions that threatened to close the community and preserved this affordable community in a high-cost region.

Delegate Krizek’s bill, paired with its associated budget amendment, deserves immediate support and action. These measures are crucial for enabling more success stories like the ones described above. We can bolster our determination to address Virginia’s housing crisis through active engagement with local organizations who are directly addressing housing issues or advocating for affordable housing initiatives.

[END]
---
[1] Url: https://virginiamercury.com/2024/02/21/general-assembly-offers-new-hope-for-aging-mobile-home-parks/

Published and (C) by Virginia Mercury
Content appears here under this condition or license: Creative Commons BY-NC-ND 4.0.

via Magical.Fish Gopher News Feeds:
gopher://magical.fish/1/feeds/news/virginiamercury/