| September Letter to the Residents | |||
| A resident--at least he said he was a resident--called the Independent Cities Financing Authority---they're the Issuer of the Marineland bonds--a few weeks ago to ask what his rent would be after a potential sale to the HOA. The reply, of course, is that there's no way we can answer that question.
We know what our costs are. The Operating Budget for Fiscal 2011 assumes about $228/space/month for routine operating expenses, net of utility and trash reimbursements. Add in the existing debt payment--about $703/space/month (net of reserve fund earnings)--plus $44/space/month for bond costs, such as the Issuer Fee, Trustee, etc. and you're pushing $1,000/month. On top of that, there has to be a cushion for unexpected events, future capital needs (assuming we continue to be the owners), funds for the required subsidy for six very-low-income households and a few other odds and ends. But all that does is let the gentleman know what our expenses are. The single largest Marineland expense is, of course, the debt payment. What we pay isn't relevant, as the existing bonds would have to be paid off for a resident purchase to occur. The HOA hasn't shared its projections for its financing plan so we weren't able to be very helpful. The Authority also told him that we haven't been contacted about opening an escrow, completing a Purchase Agreement or any of the other things that indicate a sale is imminent. It's already August (as I type this) so I assume we aren't looking at a sale during calendar 2010. In any event, we suggested he contact the HOA for answers to his questions. One Small Step for Trees... Every year, owners of manufactured home communities are required to distribute complete copies of the Mobilehome Residency Law ("MRL") to each of their residents. We have to do this even if you still have your copy from last year. The MRL takes 20 pages to print--and that's using small type. Assuming about 365,000 manufactured home spaces in California...20 pages x 365,000 homes = 7,300,000 pages, most of which no one ever reads. Think of all the trees that gave their lives to produce unwanted copies of the MRL--not to mention the landfill space, the toxic ink, energy costs... That's about to change. As of January 1, 2011, we only have to let you know that you can get a free copy of the MRL at the Park Office, which we will gladly provide you. The State Legislature finally did something intelligent! There's Still a Homebuyer Credit--Sort of... Yes, the Federal $8,000 credit has expired but the State of California offers a credit of 5% of the sale price, up to $10,000, spread over three years. The credit applies to (1) for used homes--first-time homebuyers (usually, this means someone who hasn't owned a home in the past 3 years) and (2) any buyer of a new home. With prices so low on new manufactured homes, this might be a great time to upgrade. Check with your tax advisor to be sure I got this right...and Have a happy Labor Day! |
|||
~ George Turk |
|||
20 Pacifica, Suite 1470
Irvine, CA 92618
(949) 515-5100
(949) 515-5101 fax
© 2006 Millennium Housing
