An old line FHA mobilehome park financing program, newly revived by the Bush Administration to help provide affordable housing, has provided credit enhancement for $7,830,000 of Multifamily Housing Revenue Bonds issued by the Kern County Housing Authority which have been used by The Associates Group for Affordable Housing (TAG), a San Clemente non-profit housing developer, for the purchase and renovation of the Pioneer Pines Mobilehome Park in East Bakersfield in Central California.
The 350 space park built originally in 1970 by Bakersfield under the original FHA 207M new construction program, was sold for $5,750,000 to the 501c3 non-profit public benefit corporation headed by long time mobilehome park attorney Gerry Gibbs. At the time of the sale the park had more than 35% vacancy.
The program provides funding for acquisition and substantial rehab and remarketing of mobilehome parks. The Los Angeles Office of HUD handled the transaction. “Pioneer Pines will receive major renovation including security and sound walls and gates, new recreational facilities, and childcare facilities” Gibbs said. When completed the park will provide a completely secure and long-term affordable environment for existing residents.
“TAG will also be providing house and lot long term lease packages for first time home buyers” Gibbs said. “We hope to work with the local manufactured housing industry to provide a secure, family environment where home buyers can get very long term leases and have the security of knowing their housing costs will be protected from the drastic escalation that can take place in typical rental parks.”
Gibbs said that the group hopes to work with a variety of housing suppliers to fill the vacant spaces in the park. And he will seek special first-time home buyer financing for his clientele from a number of state, local and federal sources.
“We hope to create a gated, secure community for moderate income families and first-time home buysers,” Gibbs said. “This will be a first in Bakersfield.”
The Associates Group for Affordable Housing has been in business for more than a decade, and has participated or assited the residents in more than 50 parks to purchase their parks.
In 1999 TAG made a major corporate change and made its initial individual park purchase; a 281 space condominium conversion park was purchased for $19,000,000 in Fullerton, California. More than 172 residents bought their spaces from TAG initially. And TAG has held and sold off the remainder of the lots over the past few years. TAG is the landlord for those residents who continue to rent.
TAG is now committed to acquiring as many additional parks as it can finance, according to Gibbs. “TAG can act as an accomodator, as in the Fullerton transaction, where we enabled the park seller to take capital gains on a park condo conversion transaction. Or we can purchase to hold permanently.”
“The revived FHA 207M program gives the non-profit the ability to secure up to 40 year fixed rate financing, with rehab funding built in at below interest market rates” Gibbs said.
Gerry Gibbs, president and CEO of TAG, is a California real estate attorney specializing in mobilehome park law. The Gibbs Law Firm has specialized in assisting park owners and residents in park sales transactios. The office has acted as counsel for more than twenty mobilehome park sales, including sales to municipalities and to non-profit corporations.
Jerry Stirnkorb of The Stirnkorb Company Inc. acted as the real estate consultant to both parties in the purchase transactio. The Stirnkorb Company specializes in park acquisition for non-profit corporations and will be handling all future park acquisitions for The Associates Group. Jerry Stirnkorb, president of the firm, has been active in the mobile home park industry in acquisition, permitting, sales and development since 1980.
Learn more about the construction/rehabilitation of Pioneer Pines on this page.