HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/18/2021 - RESOLUTION 2021-061 EXPRESSING COUNCIL?S INTENT TO Agenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY May 18, 2021
City Council
STAFF
JC Ward, Senior Planner
Kyle Stannert, Deputy City Manager
Sue Beck-Ferkiss, Social Policy and Housing Programs Manager
Claire Havelda, Legal
SUBJECT
Resolution 2021-061 Expressing Council’s Intent to Provide Funding to Assist with the Resident Purchase of
Hickory Village Mobile Home Park and Directing Development of a Process for Evaluating and Potentially
Supporting Similar Future Opportunities.
EXECUTIVE SUMMARY
The purpose of this item is to demonstrate financial support towards a potential resident purchase of Hickory
Mobile Home Park. This Resolution expresses Council’s intent to commit $200,000 of City Funds to support
residents of Hickory Village Mobile Home Park (MHP) with assistance such as down payment assistance or
rent stabilization in support of a Hickory Village resident-owned community (ROC). If the ROC successfully
secures financing, makes an officer to purchase the park and an agreement addressing the use of th e funding
by the City is reached, staff will present for consideration at a future meeting a formal appropriation ordinance.
On March 3, 2021, the owner of Hickory Village MHP agreed to sell the park to a corporate operator.
According to state law, the potential sale triggered a 90-day window for residents to make an offer to purchase
the park and become a ROC. With the support of Thistle, a non-profit affordable housing organization which
provides technical assistance and helps arrange financing for ROC’s in Colorado, the Hickory Village
community has formed a co-op and elected a Leadership Board to pursue financing and resident purchase of
the MHP. Staff from Neighborhood Services and Planning Departments have been involved in neighborhood
engagement alongside Thistle. Even with the high purchase price ($23 million) and short timeline, Hickory
Village residents and Thistle staff have expressed a desire for local support for the formation of a ROC. At the
work session on April 13, 2021, Council directed staff to prepare this Resolution and consult with the Council
Finance Committee for their recommendation, which occurred on April 19, 2021 and aligned with the overall
Council feedback for the item.
The Resolution also directs the City Manager to develop and provide to Council for discussion at a July work
session a process for considering and responding to future opportunities to assist with resident purchases.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
City Financial Commitment
Thistle and the Hickory Village co-op Leadership Board are continuing their efforts to arrange financing and
submit an offer to purchase the Hickory Village MHP. At the Council work session held on April 13, 2021 and
Agenda Item 14
Item # 14 Page 2
Council Finance Committee held on April 19, 2021 meetings, there was interest in providing financial support
up to $200,000 to support the formation of a resident-owned community.
Staff has learned that a commitment of future funds during the 90 -day opportunity to purchase window is
sufficient to bolster Thistle’s efforts to prepare a financial package with its national funding partners to submit a
resident offer to purchase. At this time, staff is only bringing forward a resolution to indicate the City’s intent to
provide up to $200,000 in financial resources to support a Hickory Village resident -owned community, subject
to appropriation of funds by the City Council.
If the resident offer to purchase the Hickory Village MHP is accepted, a formal appropriation will be pr esented
to Council. Staff anticipates any City financial resources would be used for assistance such as to support down
payment assistance or rent stabilization in the formation of the new resident-owned community as previously
discussed with Council and the Council Finance Committee.
Hickory Village Sale Status and Timeline
Hickory Village is one of nine MHP’s in Fort Collins and contains approximately 200 manufactured housing
units, a majority of which are owned by their residents. In early March, resid ents and the City received
notification from the owner of the intent to sell the property to a buyer for a purchase price of $23 million.
Recently passed state legislation requires the owner to provide residents and the City a 90 -day advance notice
of the sale of an MHP and provides the opportunity for residents to submit their own offer to purchase the
property, potentially leading to a resident owned community.
The decision to pursue resident ownership requires the support of a large majority of Hicko ry Village residents
as well as the ability to organize a cooperative, arrange financing, and submit an offer to the current owner.
Timing is an especially critical aspect to any potential resident ownership decision, as residents and partners
have as few as 90 days from the original notice of the intent to sell (March 3, 2021) to complete these tasks.
Thistle, a ROC technical assistance provider, is meeting with Hickory Village residents and local partners to
provide information about resident ownership and to ascertain what level of interest residents at Hickory
Village may have in the idea of a resident ownership proposal. Key dates in the timeline thus far include:
▪ March 3: Notice of sale mailed/posted for residents; trigger date for state required 9 0-day notice and
opportunity to purchase period.
▪ March 9: The City receives mailed notice of intent to sell Hickory Village.
▪ March 15: Staff met with Mi Voz Leaders’ Council to discuss fears and outline potential paths forward.
Resident leaders had a strong interest in becoming a ROC.
▪ March 18: Staff met with Thistle to discuss the feasibility and process of Hickory Village becoming a ROC.
▪ March 25: Thistle hosted a neighborhood meeting with 45 Hickory Village residents to provide information
and resources on becoming a ROC.
▪ April 3: Thistle hosted a follow-up neighborhood meeting with 125 Hickory Village residents to provide
information and resources on becoming a ROC. The residents have formed an interim Leadership Board
and are continuing pursuit of ownership.
▪ April 13: City Council Work Session
▪ April 19: Council Finance Committee discussion and recommendation
▪ June 1: The end of the state-required 90-day notification period and the earliest a sale of the property to
another buyer could be completed.
Strategic Alignment
• Strategic Outcome - Neighborhood Livability & Social Health 1.1 Improve and increase availability and
choice of quality housing that is affordable to a broad range of income levels.
• Strategic Outcome - Neighborhood Livability & Social Health 1.4 Advance equity for all, leading with race,
so that a person’s identity or identities is not a predictor of outcomes.
Agenda Item 14
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• Strategic Outcome - Neighborhood Livability & Social Health 1.5 Enhance the quality of life in
neighborhoods, empower neighbors to solve problems, and foster respectful relations.
• Strategic Outcome - Neighborhood Livability & Social Health 1.8 Preserve and enhance manufactured
housing communities as a source of affordable housing and create a safe and equitable environ ment for
residents.
Resident Owned Communities (ROC) Overview
Resident owned communities are a growing trend that gives manufactured housing residents greater control
over the rules, operations, maintenance, and monthly lot rent within their neighborhood . ROC’s often form
when an existing MHP is for sale as residents form a cooperative to own and operate the overall community.
Residents still own their individual units, but they also have a share in the larger cooperative which sets park
rules and lot rent which can be better aligned with the needs and priorities of its resident owners.
While a growing trend, resident ownership can be difficult to achieve for a variety of reasons:
▪ An existing MHP owner must be a willing seller and a large percentage of residents must agree to
participate to form the cooperative and submit a competing offer.
▪ In Colorado, MHP residents and ROC partners often have a limited time window to organize and find the
necessary financing.
▪ MHP’s are increasingly viewed as investment properties and residents and ROC partners must often
compete against large corporations and private equity firms to purchase a community.
▪ Certain park characteristics may be needed to form a ROC, such as a minimum number of units, high
resident ownership rates, and acceptable infrastructure conditions.
▪ Although ROC’s typically stabilize rent long-term, at the time of conversion there may be a large one-time
increase in rental prices.
Colorado ROC Trends
ROC’s are in operation across the country, with larger concentrations in the Northeast and Pacific Northwest.
ROC’s are relatively new to Colorado with several formed in the past several years in Canon City and
Longmont. Based on media reports and information from Thistle, several aspects appear to be common to the
formation of Colorado ROC’s thus far:
▪ Subsidies, grants, and other financial partnerships are often involved as part of financing a ROC. In
Colorado, this amount has been close to 25% of the purchase price. These grants, no/low interest loans or
other subsidies are typically used to help keep rents lower upon the transition to resident ownership. Key
partners in previous deals have included the Colorado Division of Housing, Colorado Health Foundation,
and the support of other local partners or jurisdictions where the MHP is located.
▪ Residents have a buy-in amount to help form the cooperative. The maximum buy-in amount is typically
limited to a maximum of $1,000 per household.
▪ The overall process for resident ownership generally takes 90-150 days. While it can extend longer, recent
Colorado legislation only requires a minimum of a 90 -day sale notice and opportunity to purchase. As of
May 18, the Hickory Village sale is 76 days into this timeline.
Summary of Colorado Mobile Home Park Act Section 38-12-217
• MHP owners are required to provide notice of their intent to sell to all tenant homeowners and the
municipality or county where the park is located.
• Within 14 days of the MHP owner listing the park for sale, they must provide notice to each tenant
homeowner, any homeowners association, the municipality or county where the park is located, and the
Colorado Division of Housing.
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• Within 14 days of a MHP owner intending to make a final, unconditional acceptance of an offer for the sale
or transfer of the park, they must give notice to each tenant homeowner, any homeowners association, the
municipality or county where the park is located, and the Colorado Division of Housing.
• After each notice above, a MHP owner must give tenant homeowners a 90-day opportunity to make an
offer to purchase the park. MHP owners must negotiate in good faith with any group or association of
homeowners or their assignees who submits an offer to buy the park.
Violations of state law for Mobile Home Park Act Oversight or Residents’ Right to Purchase are enforced by
the Department of Local Affairs Mobile Home Park Oversight Program, which began in May 2020. Under
Colorado Revised Statutes Section 38-12-217(15), neither the Colorado Department of Local Affairs (DOLA)
nor the Administration Courts are authorized to stop or delay the sale of a park due to Residents’ Right to
Purchase, even in cases of violations of the notice requirements or lack of good faith negotiation from the MHP
owner with residents.
ROC Benefits
ROC’s stabilize rent for residents (after initial increases at the time of purchase) and maintain rent at or below
the rents of nearby commercially owned communities, due to the absence of a profit margin in community
costs. Additionally, ROC members sign perpetual leases, meaning they can live in the ROC as long as they
choose so long as they pay rent and follow the rules. Therefore, ROC’s serve as one method of securing
affordable housing options, while providing residents with collective decision -making power regarding park
rules and community initiatives. These attributes align ROC's with City policy goals for affordable housing,
residents’ rights, and manufactured housing preservation. Increased housing stability is part of the vision of the
City’s Housing Strategic Plan that everyone has healthy stable housing they can afford.
A ROC also helps meet Council and City priorities for the preservation of manufactured housing and stabilizing
residents’ housing. As owners of the land underneath their homes, residents have the direct input and control
over the future of the property they traditionally lack when living within a non -resident owned community. A
sale and potential closure of the property in a ROC could only occur through the consent of its resident
owners. The direct resident decision-making authority of a ROC provides an enhanced layer of protections and
preservation support beyond the City’s recent adoption of a manufactured housing zone district.
CITY FINANCIAL IMPACTS
The current Resolution expresses the Council’s intent to commit $200,000 in City funding through an
appropriation, contingent on the offer to purchase by Hickory Village Mobile Home Park residents to become a
resident-owned community and acceptance by the current property owner prior to the statutory deadline.
Should conditions be met, staff will return to Council with an appropriation ordinance and details about
available funding sources.
BOARD / COMMISSION RECOMMENDATION
On April 19, 2021, Council Finance Committee recommended bringing this resolution forward to Council.
(Attachment 2)
PUBLIC OUTREACH
This Resolution comes after significant community engagement work conducted by both community partner,
La Familia, in organizing the Mi Voz mobile home park residents’ gro up, and the City’s Mobile Home Park
Residents’ Rights Team in outreach, relationship-building, and training sessions ongoing since 2019.
Agenda Item 14
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ATTACHMENTS
1. Work Session Summary (PDF)
2. Council Finance Committee Minutes (draft) (PDF)
3. Powerpoint Presentation (PDF)
City Manager’s Office
PO Box 580
300 LaPorte Ave.
Fort Collins, CO 80522
970.221.6505
970.224.6107 – fax
fcgov.com
MEMORANDUM
DATE: April 16, 2021
TO: Mayor Troxell and City Councilmembers
THRU: Darin Atteberry, City Manager
FROM: Kyle Stannert, Deputy City Manager
RE: April 13, 2021 Work Session Summary – Hickory Village Mobile Home Park Sale
At the April 13th City Council Work Session, staff provided an update on the proposed sale of the
Hickory Village Mobile Home Park and efforts by park residents and Thistle to submit an offer to
purchase the park and become a Resident Owned Community (ROC). The session focused on
the city’s role as a convener in the process of forming ROCs in the short term and reviewed
opportunities to support affordable housing efforts in mobile home communities in the long term.
All councilmembers were present for the virtual discussion as well as Andy Kadlec, a program
director from Thistle, who provided information on Thistle’s involvement in the process.
DISCUSSION SUMMARY:
Council's discussion ranged across several questions, ideas, and concerns. Specific items
included:
Inquiries about the level of interest and participation of Hickory Village residents towards
making an offer to purchase the park, and what types of role Thistle, a non-profit technical
assistance provider, is providing in the process.
Questions about the how financing a ROC is typically arranged and what types of
resources other jurisdictions and partners have provided in support of ROCs (e.g., grants,
loans, or other federal/state funding resources).
Concern about any potential risks to the City if financial assistance is provided, as well as
the limited timeline to consider and develop a deal.
Questions about the history and funding provided by the City’s prior down payment
assistance program.
Ideas and questions about other types of long-term solutions to support ROCs, such as
proactive communication to residents about the process, application of city programs such
as broadband equity and Epic Home programs, what role Housing Catalyst could provide,
or if the City itself should consider owning and operating a park.
ATTACHMENT 1
April 13, 2021 Council Work Session Summary Page 2
Hickory Village Mobile Home Park Sale
COUNCIL DIRECTION:
Need to be clear about how any financial involvement from the City contributes towards
policy goals for affordable housing and preservation.
In the short term, the Hickory Village sale and the opportunity for a ROC is a learning
experience and staff should continue to provide information, education, and convene
stakeholders and partners during the process.
The City could consider financial assistance options in both the Hickory Village example
in the short term, and opportunities for programs that align with the Housing Strategic
Plan.
Staff will meet with Thistle to determine potential resource amounts and how assistance
is best applied. Examples include deferred rent funds to help limit immediate increases in
lot rents, a subordinate financing position, providing closing/legal costs, or grants.
Long term strategies should be developed to operationalize partnerships and financial
efforts for future mobile home park sales and closures. Given the limited timeline to provide
assistance, the City needs to have more proactive measures and guidance in place.
Efforts should continue for capacity building in parks and to enhance local enforcement of
state laws.
NEXT STEPS:
Staff is planning to provide an update and additional information on potential financial
assistance options at the next Council Finance Meeting on April 19, 2021.
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
April 19, 2021
10 am - noon
Zoom Meeting
Council Attendees: Mayor Wade Troxell, Ken Summers, Ross Cunniff, Susan Gutowsky
Staff: Darin Atteberry, Kelly DiMartino, Kyle Stannert, Travis Storin, Carrie Daggett,
John Duval, Tyler Marr, Lance Smith, Caryn Champine, JC Ward, Noelle Currell,
Ryan Mounce, Tim Dailey, Meaghan Overton, Jackie Kozak-Thiel, Victoria Shaw,
Sue Beck-Ferkiss, Leo Escalante, Blaine Dunn, Dave Lenz, Jo Cech, Zack Mozer,
Jordan Granath, Carolyn Koontz
Others: Joe Rowan
Joshua Stallings
Patricia Miller - Thistle
____________________________________________________________________________________
Meeting called to order at 10:04 am
Mayor Troxell; I would like to note for the record that I have conferred with the City Manager and the City
Attorney and have determined that the Committee should conduct this meeting remotely because meeting in
person would not be prudent for some or all persons due to a current public health agency recommendation.
Approval of Minutes from the March 15, 2021 Council Finance Committee Meeting. Ross Cunniff moved for
approval of the minutes as presented. Ken Summers seconded the motion. Minutes were approved unanimously
via roll call by Ken Summers, Ross Cunniff and Mayor Troxell.
Hickory Village Mobile Home Park Resident Owned Community (ROC) Funding
Kyle Stannert, Deputy City Manager
Sue Beck-Ferkiss, Social Policy and Housing Program Manager, Social Sustainability
JC Ward, Sr. City Planner, CDNS
Ryan Mounce, City Planner, CDNS
EXECUTIVE SUMMARY
The purpose of this item is to provide an update on the potential for Hickory Village Mobile Home Park (MHP) to
become a resident owned community (ROC) and to seek feedback from the Council Finance
Committee members on the desired level of City engagement in that process.
ATTACHMENT 2
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On March 3, 2021, the owner of Hickory Village MHP agreed to sell the park to a corporate operator. According
to state law the potential sale triggered a 90-day window for residents to make an offer to purchase the park
and become a ROC. Neighborhood meetings with the Hickory Village community have revealed that there is
strong support to pursue this. Staff from CMO, Community Development and Neighborhood Services, and Social
Sustainability Departments met with representatives from Thistle, a non-profit affordable housing organization,
which provides technical assistance and helps arrange financing for ROC’s in Colorado. With the high purchase
price ($23 million) and short timeline, Thistle staff have expressed a desire for local support for the formation of
a ROC.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does financial support of resident owned communities of mobile home parks align with the City’s strategic goals
for affordable housing?
Should the City engage in discussions to be a financial partner in support of a potential purchase of Hickory
Village in the event residents move forward with an offer to purchase the mobile home park?
BACKGROUND/DISCUSSION
Hickory Village Sale Status & Timeline
Hickory Village is one of nine MHP’s in Fort Collins and contains approximately 200 manufactured housing units,
a majority of which are owned by their residents. In early March, residents and the City received notification
from the owner of the intent to sell the property to a buyer for a purchase price of $23 million.
Recently passed state legislation requires a 90-day advance notice of the sale of an MHP and provides the
opportunity for residents to submit their own offer to purchase the property, potentially leading to a resident
owned community. The City’s Housing Strategic Plan also contains a transformational strategy to allow tenant
right of first refusal/offer for cooperative ownership of multifamily or manufactured housing community.
The decision to pursue resident ownership requires the support of a large majority of Hickory Village residents
as well as the ability to organize a cooperative, arrange financing, and submit an offer to the current owner.
Timing is an especially critical aspect to any potential resident ownership decision, as residents and partners
have as few as 90 days from the original notice of the intent to sell (March 3, 2021) to complete these tasks.
Thistle, a ROC technical assistance provider, is meeting with Hickory Village residents and local partners to
provide information about resident ownership and to ascertain what level of interest residents at Hickory Village
may have in the idea of a resident ownership proposal. Key dates in the timeline thus far include:
▪ March 3: Notice of sale mailed/posted for residents; trigger date for state required 90-day notice and
opportunity to purchase period.
▪ March 9: The City receives mailed notice of intent to sell Hickory Village.
▪ March 15: Staff met with Mi Voz Leaders’ Council to discuss fears and outline potential paths forward.
Resident leaders had a strong interest in becoming a ROC.
▪ March 18: Staff met with Thistle to discuss the feasibility and process of Hickory Village becoming a
ROC.
▪ March 25: Thistle hosted a neighborhood meeting with 45 Hickory Village residents to provide
information and resources on becoming a ROC.
▪ April 3: Thistle hosted a follow-up neighborhood meeting with 125 Hickory Village residents to provide
information and resources on becoming a ROC. The residents have formed an interim leadership board and are
continuing pursuit of ownership.
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▪ June 1: The end of the state-required 90-day notification period and the earliest a sale of the property to
another buyer could be completed.
Considerations for the City
Potential short-term City roles for Hickory Village MHP Sale
• Take no action: City staff would not actively participate in this process other than to direct inquiries
regarding this process to agencies involved.
• Be a convener: The City’s Neighborhood Services and CPIO departments can provide engagement
support; connecting residents, community partners such as Housing Catalyst, The Family Center-La Familia and
Thistle, and park owners (if/when appropriate).
• Be a convener and financial partner: The City can provide engagement as described above, as well as
financial support.
o Financial support would be used to avoid steep increases in rent due to the purchase.
o Significant investment would be necessary to keep park lot rents affordable. Without subsidy,
rent increases would likely be several hundred dollars a month.
Potential long-term City roles
City staff could create a program to assist in future conversions to ROC’s. This may include supporting residents
in the formation of residents’ associations and the creation of a plan for becoming resident-owned should the
opportunity arise. City staff can also continue their engagement with property owners, ensuring they fully
understand state laws regarding MHP sales and are aware of all selling options. Other financial support
considerations could be explored to include creation of a grant, loan, or other funding program to prepare for
future MHP sales.
Discussion / Next Steps:
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does financial support of resident owned communities of mobile home parks align with the City’s strategic goals
for affordable housing?
Should the City engage in discussions to be a financial partner in support of a potential purchase of Hickory
Village in the event residents move forward with an offer to purchase the mobile home park?
Mayor Troxell; I am fully supportive of helping and encouraging resident owned communities. Housing Catalyst
affordable housing - adding this to an expectation portfolio
Kyle Stannert; Housing Catalyst’s role in this would be to come in and purchase as opposed to supporting
someone else’s purchase – there is already a party moving forward with an offer in – the ROC is a potential party
–there is a legal restriction that would keep Housing Catalyst from coming in and joining
Mayor Troxell; if we roll it back one year and say we recognize that manufactured housing and mobile home
parks are a form of affordable housing that we want to support as a community - asking Housing Catalyst to add
this to their portfolio
Sue Beck-Ferkiss; we have reached out to Housing Catalyst specific on this project and they said it would not be
appropriate for them to interfere with a sale that the residents were trying to accomplish -
we did not talk with them about their general feelings about managing manufactured housing communities. I
am happy to circle back with them. In the past, for example in Boulder, the housing authority held it as an
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interim play, the city purchased it and had the housing authority manage the project while it was becoming
something else – so more in a transition role than a permanent role.
Mayor Troxell; I think Housing Catalyst should also have a goal of housing ownership in their portfolio and I think
this plays to that - one thing that concerns me is needed improvements – a lot of the properties need
improvements; safety issues / tree trimmings / water distribution systems / not having sub metering
/connectivity broadband issues / energy. How do we accomplish those outcomes in the zone district going
forward? Is it always the owner of the property and not the tenants – like we have seen with our EPIC program
– cracking the nut between the landlord and the rent payer - if it is not owned by the residents themselves -
how do you get property improvements? I am assuming they have appropriate wastewater systems as well as
water supply - Zooming out and thinking of this more broadly – I am a supporter of ownership and moving in
that direction – how can we support that through mechanisms we have set up to provide for affordable housing
- Housing Catalyst. How do we ensure property improvements over time whether they be resident owned or
landlord owned? Health, safety efficiency – city stated policies
Kyle Stannert; there are a number of things in the works – committed to Council around some are zoning related
– local enforcement - what makes the communities more livable for residents – that is in the pipeline - staff will
continue to work on that. The Hickory Village situation is a great opportunity to inform what does it look like
when a sale comes up
Mayor Troxell; I do not want it to be lost - I am thinking about an overall approach to resident owned
communities for affordable housing - all of these things play a role into that - how do you get to that?
As Ken mentioned – why don’t we just purchase the property? How do we ensure that we meet livability
standards – keep it affordable - we have pieces, but it needs to be executed in a way that achieves a 10–20-year
outcome -not just bits and pieces
Ken Summers; this is a challenging situation - if the city were to be involved financially - Ross had mentioned in
our Work Session – a down payment then an allocation of a grant for energy efficiency.
If the city were to make a commitment – I am in favor of the idea of saying if the residents are able to
successfully purchase the property, then the city ‘s contribution would be initially toward some energy
efficiency, property health and safety issues. It would be a contribution to our environmental goals and help
provide some targeted funding to address those improvements that need to be made.
How a potential lender might look at this - for example, I am a member of a 20-year-old established HOA and
thinking about talking to a lender - the response would be ‘not interested’. To think of lending to a yet to be
organized group of mobile homeowners $23M to purchase the property. I do not know how they go about that
– no assets other than the land. I am in a quandary on how this gets worked out - Did Boulder step in and
provide a bridge loan? Then the city is on the hook for ability to pay and meet the costs. I am not sure the
residents are fully on board yet – that they fully understand and comprehend what is at stake for them. I ask
the question during the work session - they will actually pay higher rent for 5 years and then maybe the rental
will be lower than the market rate at the end of 5 years. How long is it going to take to make up for the 5 years
at higher than market rate?
Kyle Stannert; you are touching on a lot of the points that make these very complicated transactions –
The HOA analogy can personalize this for a lot of us and also shows that this is a very different process - the
lenders that are involved in this are a targeted very specific group and having partners that can help the
residents - we are fortunate to have these independent 3rd party non-profits who are navigating these waters
because they are complicated but this has been accomplished hundreds of times across the country - so it can
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be done but it requires a very special set of circumstances. In terms of educating the homeowners - there is
understanding but there is also wanting to know exactly what is that commitment -
with us not being the purchaser and we are not financing the big picture - what is the breakeven point going to
be for residents - because we are not a party at that level of detail but this is the type of thing that in the
community meetings Thistle is bringing this type of information forward to the residents – goal of lot rent
stabilization -if resident owned this is where the HOA analogy helps in terms of what do we need to do to make
the books work in the future years versus if an outside entity comes in and purchases we can only speculate
about increases as we are not in the conversations but you can assume and the staff has looked at other
examples that a private party purchase will most likely lead to lot increases - this is where Thistle is working with
residents to put that in a framework and to see what makes the most sense to move forward
Ken Summers; there is a special niche of people who work with that obviously has happened
I find it interesting on a side note basis – to understand and know the situations where it worked well and not so
well, and the lessons learned - this is where Thistle is contributing
Ross Cunniff; I think it does make sense for the future Council to pass this contingent resolution that we talked
about – I think down payment assistance is within the scope of what Council could do to participate here - I do
not know what the right level is but future Council can work that out – my recommendation would be to support
an amount that could be sustainable -
To answer the second question – if the city is going to engage in this – should engage in program and policy so
that we are not having to make it up on the fly in the future - What are the portfolio of options that are available
- which ones should be engaged by which trigger mechanisms make a lot of sense
I would not make the down payment assistance contingent on coming up with an energy improvement plan or a
water supply improvement plan - I view those as add-ons – the energy improvement plan is beneficial to
manufactured / mobile homeowners regardless of whether they own the land or not and very beneficial to our
city climate goals. Tend to be less energy efficient – more expensive
Very expensive to be poor - If the city can help with that and educate
Contemplate this May promissory note – not really an appropriation - By law and by practice
And develop a program with ROCs and the other improvements to the property both the home itself as well as
the land it sits on.
Kyle Stannert; part of Thistle’s involvement one of their practices is to bring in financing to get to 110% -
tying into some city programs – good alignment
Note - to bring forward a commitment in the form of a resolution - I hear you and agree -not just a will to do so
but how we would do it - being able to follow up with the allocation through the process if conditionally
everything lined up.
Emily Gorgol; if this is being pushed to the next Council - Kyle, in your conversations with Andy is that an
appropriate timeline knowing how long a Council process can take?
Kyle Stannert: that is one of the things that Thistle reinforced - discussing in the guise a resolution or an
expression of commitment - that being in place would be sufficient for what they are looking for as they do not
need the actual allocation or cash in hand to move it forward. Regardless of the 90-day window Council could
come forward with the intent to allocate a certain number of funds and then if approved we could go through
the allocation process.
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Emily Gorgol; thank you for that - Is there an end date for the resolution they need it passed by?
Kyle Stannert; we have not gotten to that level of specifics yet - because it is a resolution it gives us more
flexibility -
Ross Cunniff; the 18th of May is in that time range - by being a resolution we do not need to make room for 2nd
reading within 10 days effective date is the other advantage which will give the next Council a chance to fully get
their hands on it and guide the direction that they want it to go.
Susan Gutowsky; looking at this situation with Hickory as a test case - when we did the zoning we anticipated
that something like this would happen and it has – looking at this as an opportunity to establish a process as we
have 6-9 mobile home parks that might be in the same position - making it part of the budget process makes
sense as it will come up again in the future and if we have a process in place it will be good for Council and for
city as a whole to know how to proceed.
May 18, 2021
Hickory Village Mobile Home Park Sale
ATTACHMENT 3
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Purpose
•To bring forward a resolution to provide residents of Hickory Village Mobile Home
Park (MHP)with financial assistance, to be used towards a down payment or rent
stabilization in support of a Hickory Village resident-owned community (ROC).
•This resolution would indicate a commitment of $200,000 of City Funds.
•If the ROC can successfully purchase the park, staff will return at a future
meeting for appropriation of funds
Overview: Hickory Village Sale
§Hickory Village Mobile Home Park
§Located along Hickory Street, west of
N. College Ave
§Approximately 204 units
§Notice of sale published on March 3, 2021
§Recent state legislation requires a 90-
day notice before sale occurs
§Sale price: $23 million
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Resident Ownership Opportunity
§90-day sale notice also provides opportunity for
residents to submit an offer to purchase.
§If accepted, offer would create a resident
owned community (ROC).
§Thistle, a ROC technical assistance provider, is
meeting with Hickory Village residents and local
partners.
§Education & training
§Determining interest & feasibility
§Prior involvement in other Colorado ROC's
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ROC Overview
§Resident Owned Communities (ROC):
§Resident cooperative is formed to purchase and operate their mobile
home community
§Cooperative owns the land and operates the community; better
alignment with resident priorities
§Lot rent, park rules, maintenance & amenities
§ROC's promote City policy goals:
§Preservation / stabilization of existing manufactured housing
§Alignment and accountability to resident priorities
§Residents’rights and livability improvements
§Housing Strategic Plan
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ROC Challenges
§Difficult to organize and arrange financing within 90 days
§Hickory Village 76 days into process (as of 5/18/21)
§Need a willing seller and must compete against private buyers
§Seller is not required to sell to residents, only to consider the
residents' offer in good faith
§Ty pically requires a large majority of resident support / participation
§One-time buy-in required to form cooperative
§A r ent increase upon transition to a ROC is likely
§Few local examples
§First ROC's in Colorado began several years ago
§Financial assistance by state and local entities have been required
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Sale / Opportunity to Purchase Ti meline
§MAR 3:Notice of sale. Tr iggers 90-day notice & opportunity to purchase period
§MAR 9:City receives mailed Hickory Village sale notice
§MAR 15: Staff meet with Mi Voz Leaders’ Council to discuss Hickory Village sale and
outline potential paths
§MAR 18: Staff meet with Thistle to discuss sale and feasibility/history of other ROCs in
Colorado
§MAR 25: Thistle meets with Hickory Village residents to discuss ROC process
§APR 3:Follow-up meeting between Thistle and Hickory Village residents.The majority
of participating residents want to pursue a ROC.
§APR 13:Council directs staff to draft resolution and consult with Council Finance
Committee (CFC)
§APR 19: CFC recommends providing $200k to Hickory Village
§JUN 1: End of 90-day opportunity to purchase period
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City Funding and Next Steps
•A c ommitment of future funds is sufficient to bolster Thistle’s efforts to
prepare a financial package with its national funding partners to
submit a resident offer to purchase.
•If the resident offer to purchase the Hickory Village MHP is accepted,
a formal appropriation will be presented to City Council.
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RESOLUTION 2021-061
OF THE COUNCIL OF THE CITY OF FORT COLLINS
EXPRESSING COUNCIL’S INTENT TO PROVIDE FUNDING TO ASSIST WITH
THE RESIDENT PURCHASE OF HICKORY VILLAGE MOBILE HOME PARK
AND DIRECTING DEVELOPMENT OF A PROCESS FOR EVALUATING
AND POTENTIALLY SUPPORTING SIMILAR FUTURE OPPORTUNITIES
WHEREAS, Hickory Village Mobile Home Park (“Hickory Park”) is one of nine mobile
home parks in Fort Collins and contains approximately 200 manufactured housing units, a
majority of which are owned by the residents of the park; and
WHEREAS, in early March 2021, residents of Hickory Park received notification from
the owner of his intent to sell Hickory Park; and
WHEREAS, City Council recognizes manufactured housing communities as some of the
most affordable housing in Fort Collins; and
WHEREAS, City Council supports the residents of Hickory Park in their efforts to
purchase Hickory Park and maintain this affordable housing; and
WHEREAS, the residents of Hickory Park are working with Thistle, a non-profit
affordable housing organization which provides technical assistance and helps arrange financing
for residents of mobile home parks who wish to purchase their parks; and
WHEREAS, affordable housing financing is complex and lenders often require a show of
support from the community in which the property is located to approve financing; and
WHEREAS, City Council intends this Resolution to be a show of support for the Hickory
Village residents’ bid to secure private financing; and
WHEREAS, City Council intends to commit $200,000 of City funds to assist with down
payment or rent stabilization should the Hickory Park residents’ offer to purchase the property be
accepted by the current owner; and
WHEREAS, City Council finds this expenditure will align with the public purpose of
supporting the City’s Neighborhood Livability and Social Health goals; and
WHEREAS, state law provides home owners in mobile home parks the opportunity to
purchase their park under circumstances such as these: and
WHEREAS, the City Council has adopted a Housing Strategic Plan supporting tenant
right of first offer/ refusal for cooperative ownership of multifamily or manufactured housing
communities to address the challenge of housing stability; and
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WHEREAS, an Ordinance for appropriation of funding will be brought forward if and
once the final terms of the Hickory Park purchase have been successfully negotiated and as set
forth below; and
WHEREAS, considering the short timeframe and need for prompt action in connection
with opportunities such as this one for the purchase of mobile home parks and other rental
properties by residents, and the City’s interest in supporting resident-owned communities, it will
be beneficial for the City to develop a process to systematically review and evaluate potential
City support in response to future opportunities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. That the City Council hereby supports the efforts of the Hickory Park
residents to purchase Hickory Park.
Section 3. That the City Council hereby expresses its intent to provide City funds in
the amount of $200,000 to assist residents of Hickory Park with down payment assistance or rent
stabilization in the event the proposed purchase of Hickory Park proceeds.
Section 4. That City Council will consider a future ordinance appropriating $200,000
at a future date if this Resolution is adopted, Hickory Park residents secure financing and
successfully negotiate an agreement to purchase the property, and an agreement addressing the
use of the funding to be provided by the City is reached; all of which is subject to the approval of
the City Council in its sole discretion.
Section 5. That the City Manager is hereby directed to develop an implementation
roadmap for the Housing Strategic Plan strategies by which the City may systematically review
and evaluate opportunities to advance the priorities and vision of the HSP, to be discussed with
the City Council at a work session no later than July 31, 2021.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
18th day of May, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk