Home Lifestyle Residents of mobile home community acquire property to maintain affordable living options

Residents of mobile home community acquire property to maintain affordable living options

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MISSOULA, Mont. — Lynda Hartless found her ideal retirement haven at Old Hellgate Village manufactured home park when she moved there in 2006. With a stunning mountain view and a rent she could manage on a single income, Hartless enjoyed the tranquility of her surroundings. She noted, “It’s so peaceful to sit out there and listen to the birds.” However, growing concerns arose when nearby trailer parks began closing, prompting her to worry, “Oh my gosh, what am I going to do? Where would I move this? It was a scary thought.”

This situation motivated Hartless and her neighbors to take action by organizing a cooperative to purchase the park located near Mullan Road and Reserve Street. “The security of having someplace that can’t be taken away from you is vital for someone who is older and retired,” Hartless said. As a resident-owned community (ROC), Old Hellgate Village is collectively owned and democratically managed by its residents. Rather than paying rent to an outside landlord, they contribute to their cooperative.

NeighborWorks Montana played a key role in facilitating the purchase, guiding the community through negotiations, setting up the cooperative structure, electing its first board, and establishing bylaws and policies, according to Adam Poeschl, the organization’s ROC acquisition specialist. On October 16, after a protracted two-year process that included an initial failed deal, residents of the 34-home park officially took ownership.

Jessica Adams, the interim president of the board, reflected that while the first attempt to create a cooperative was challenging, the second effort was much quicker and successful. “What brought everybody together was the sense of community and the desire to do this for ourselves,” she remarked. “Not just for me or someone else, but for everybody.”

To finance their purchase, Old Hellgate Village secured a $2.8 million loan from the Coal Trust Multifamily Home Loan Program and an additional $300,000 from NeighborWorks Montana to cover the $2.5 million acquisition and various related costs. While the ROC USA financing arm typically serves as the lender for such initiatives, the park and two other ROCs in Missoula County chose loans through the Montana Board of Housing program, which significantly improved affordability and helped maintain lower lot rents for residents, according to Poeschl.

“This initiative offers a fantastic opportunity for residents, particularly those from working-class backgrounds, allowing them a say in their living conditions by choosing the kind of community they wish to be part of,” Poeschl stated. “They’re no longer reliant on a private park owner for maintenance and other necessities. They set their own lot rent and cover expenses, ensuring that any surplus revenue goes back into the community.”

Although the cooperative did increase rent slightly to manage loan repayments and improve the property, Hartless, who also serves as board treasurer, mentioned that the rate remains on par with similar manufactured home parks. Looking ahead, one major project on their agenda is connecting to the city’s sewer system, which Hartless believes will resolve issues related to the aging septic and plumbing systems in the park, originally built in 1968.

The board is also addressing other significant concerns, such as enhancing the road infrastructure and improving water pumps for better water quality. These upgrades, along with general beautification efforts in the park, are expected to foster a stronger sense of pride and ownership among residents. Hartless expressed a wish to see the addition of a pickleball court, while others in the community have proposed a playground and picnic area.

Both Adams and Hartless noted that serving on the board has been a valuable learning process and an opportunity to contribute back to their community. Hartless explained, “I just wanted to get it up and running and be part of the whole experience. I have learned so much by going through property conditions reports and understanding this park’s needs.” Adams echoed her sentiments, stating that, despite the extensive paperwork involved, the process of achieving ownership was positive, and she felt fulfilled to be part of the team that achieved their goal. “I’m proud of everyone in the park and their contributions to this effort. We couldn’t have done it without each other,” she added.

Hartless also cherished the opportunity to connect more closely with her neighbors: “It’s wonderful to see people step up and help one another. I’m optimistic for the future, envisioning a community united.”

The partnership with NeighborWorks Montana will continue for another decade to assist the cooperative in maintaining its operations and adhering to loan conditions. Poeschl emphasized his enthusiasm for the residents taking control of their community after an already lengthy process. “They have maintained a strong community spirit throughout this journey, and I’m eager to see how they harness it as they implement the changes they desire in their neighborhood,” he remarked.

Old Hellgate Village marks the 22nd resident-owned community in Montana, joining four others situated within Missoula County. NeighborWorks Montana has been proactive in creating new resident-owned communities in the state, seeing a steady demand for these initiatives.

Interest in such communities has surged among mobile home park residents and local governments keen on maintaining affordable housing options. Poeschl indicated plans to explore the conversion of two additional communities in the Missoula region within the coming year. Adams and Hartless urged residents from other mobile home parks to reach out to NeighborWorks Montana to learn more about transitioning to cooperatives. Hartless reassured them that the benefits of protecting against potential sales and developments outweigh any rent increases incurred during the cooperative’s formation.

“I encourage fellow residents to navigate the process and engage with other ROCs for guidance, sharing their knowledge and experiences,” she advised. “Above all, remain persistent.”