Celeste Yakawonis once imagined a lifetime spent in her spacious riverfront house in Turner, nestled on six acres of land. That dream shifted drastically following the passing of her husband, which left her feeling both alone and encumbered by the large farmhouse. “Can you see how big that was, for me, one person rattling around?” she remarked, gesturing to a snow-dusted photograph of the home. “I just couldn’t take care of it.” Advisers cautioned her against making hasty decisions in the wake of her loss, so she stayed for a year before selling the property and venturing into the real estate market in 2023.
Finding a new home within her financial means was challenging at first. Yakawonis eventually settled on a cozy mobile home at the Linnhaven Mobile Home Park in Brunswick, purchasing it for $92,000 and agreeing to a $480 monthly fee for the lot. The structure, though typical on the outside with its gray panels and porch, was transformed into a personal haven by her and her daughter, who added festive decorations to the white cupboards.
More than the home, it was the surrounding community that revitalized her life. In 2024, when the park’s owner planned to sell the property, residents collaborated with the Cooperative Development Institute to explore buying the park themselves. A resident board of directors was formed, funds were pooled, and a $27 million bid was submitted and accepted, turning the residents into the park’s owners.
The cooperative stands as the largest resident-owned community in the state, comprising 278 homes. Over the past fifteen years, a dozen such communities have acquired their properties, from Arundel to Veazie, aided by the Cooperative Development Institute’s expertise. Amidst Maine’s housing affordability issue, cooperative models are touted as providing stability for lower-income residents. Lawmakers are considering a bill to incentivize selling to cooperatives through tax deductions, aiming to preserve affordable housing.
The proposed bill would offer a tax deduction of up to $750,000 on capital gains for cooperative sales, as described by Sen. Cameron Reny (D-Lincoln). These endeavors are framed within broader efforts to address Maine’s housing deficit, highlighted by a 2023 law mandating mobile home park owners to alert residents about potential sales and allow them to bid.
Mobile home parks consist of owners who possess the units but rent the land, exposing them to rent spikes under new ownership. These parks often house seniors living on fixed incomes. The interest in mobile home parks has surged nationally, with private equity and investments accounting for a significant portion of recent purchases, often leading to substantial rent hikes and maintenance challenges.
While the 2023 legislation aided cooperatives like Blueberry Fields to negotiate purchases, these newly formed groups often face skepticism during negotiations compared to established investors, said Nora Gosselin of the Cooperative Development Institute. Proposed tax incentives may help level the playing field for co-ops during negotiations.
The Genesis Fund, a community lender, has played a pivotal role in financing these purchases. Executive Director Liza Fleming-Ives stated that their efforts, alongside other lenders, provide a financial framework essential to advancing these cooperative housing projects.
A Maine Housing Authority report in 2023 indicated a need for 84,000 new homes by 2030 to match population growth and historical housing shortages. Manufactured homes are integral to solving the housing crisis by offering permanent, affordable options, explained Erik Jorgensen of MaineHousing.
However, the proposed push towards more resident-owned communities sees its share of opposition. The CEO of the Manufactured Housing Institute, Lesli Gooch, expressed concern about potential downsides, suggesting an experienced property manager might better manage infrastructure needs. Yet, for Yakawonis, now immersed in her cooperative-run community, the benefits are evident: consistent lot rent, leadership roles, and a thriving community spirit.
This new cooperative ownership model not only stabilizes her costs but also empowers residents, putting destiny firmly in their own hands, unlike traditional parks where rent hikes are inevitable and uncontrollable. “We wanted to be in control of our destiny,” Yakawonis emphasized.