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MANUFACTURED
HOME PARK RESIDENT GROUP RESTRUCTURES PARK OWNERSHIP
The Thunderbird Village Residents Association (TVRA), Tumwater, WA, have
completed the restructuring and refinancing of their resident-owed corporation,
which owns Thunderbird Village MHC, a 115-site, 5-star, "55 &
older" manufactured home park located at 706 East Dennis Street, Tumwater,
Washington. The park includes a
3100 sq. ft. clubhouse, gazebo and two RV storage areas.
A greenbelt surrounds the park perimeter, maintaining the privacy and
residential character of the community. The
park contains primarily doublewide homes with detached, two-car garages.
TVRA was formed in 1999 to purchase the property.
The purchase was completed in early 2000, when 43 residents each
purchased a membership in the corporation for $47,300.
This equity, combined with local bank short-term debt and a seller carry
note, enabled the group to purchase the property for $5.2 million (about $45,000
per site).
After two years of successful operations, TVRA contacted PMC Financial
Services to develop a restructuring and refinancing plan, with five (5) goals: ·
Replace the existing short term financing, which included first, second
and third mortgages, and stabilize the park debt, ·
Lower the membership price, ·
Increase the membership in TVRA, ·
Stabilize the members monthly payment, and, ·
Lower the monthly payment in the future. The TVRA Board approved the plan in April 2003 and
120 days later the PMC Financial plan was completed, with the closing of a new
$4.3 million (80% Loan To Value) first mortgage and the addition of new members
bringing the total association ownership to 62. The loan was originated with an interest rate of 5.93%, with
a 25-year amortization and 10-year term. PMC and TVRA originally approached HUD for financing
under the FHA 207m program. However,
HUD took the position that they will not finance "55 & Older"
parks, despite the fact that the "55 & Older" requirements were
created by the HUD Fair Housing office and implemented by the Housing For Older
Persons (HOPA) Act. Concurrent with the completion of the new financing,
the Association was restructured, resulting in a membership price reduction to
$35,000 and a return of capital to the original members of $12,300.
Monthly member payments have been stabilized at $215, in an area where
market rents in land lease manufactured home parks are in excess of $480 per
month.
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Contact PMC Financial Services2365 Skyfarm Drive, Hillsborough, California 94010-6341---Phone: 650-375-8043---Fax: 650-375-8132---Email: Dsarg7344@aol.com
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