History of TAG

The Associates Group for Affordable Housing, Inc. (TAG) was formed in 1988 as an adjunct to the California Golden State Mobile Owners League (GSMOL). The initial purpose of the corporation was to educate mobilehome park residents as to how they might purchase the parks in which they reside. The founder was Marie Malone who, as president of GSMOL, was dedicated to relieving the tension between park owners and tenants.

When GSMOL changed its leadership and its direction to a more adversarial posture, TAG was spun off and continued to operate as an educational advocate for residents seeking to purchase their parks. TAG actively participated with many hundreds of resident groups, providing training and advice as to the potential for a park purchase.

As a result of TAG’s efforts, at least 50 parks were purchased with the advice of TAG’s staff. Unfortunately, the volunteer nature of TAG’s services tended to result in less and less contributions from residents as the process grew more popular. Conversion consulting groups developed and TAG’s donations diminished. In some instances the consultants contracted with TAG, but the payments were insufficient to carry on educational efforts. It became obvious that although residents needed the education, TAG needed to expand its horizons in order to sustain itself and provide its intended goal of affordable housing for citizens of this country. The board of directors then amended the corporation’s bylaws and received IRS approval to buy, sell, own and operate housing for the benefit of low to moderate income persons, as well as to assist city and county governments to ensure that housing remained affordable.

Manufactured housing presents a significant advantage over conventional structures as it pertains to affordable housing. Additionally, the nature of manufactured housing communities is such that there is also a unique social environment available for all ages. Certainly, in age-restricted situations the seniors are better able to maintain their independence longer without the burden of conventional housing. As a starter home for young families, the park environment adds to the safety and security all parents wish for their children.

The cities and counties that have addressed the issues of manufactured housing have at times struggled with the concept of rent control. That concept became a requirement in some instances due to the rather unfortunate attitudes of a very limited group of park owners. At other times, it was imposed because of the political strength of the residents.

Whatever its derivation, rent control has placed burdens on government which do not always have to continue.

The TAG board of directors has chosen to address these issues by the additional tool of park purchase, either as a conduit to the residents, or for long term hold for the benefit of the involved parties and entities.

TAG’s initial purchase was finalized in 1999 when it purchased a 281 space park in Fullerton, California. The purchase was conditioned upon the prior subdivision of the park and resulting sale of individual lots to residents. TAG worked closely with the residents, the conversion consultants and the park owners. In December 1999, the option was exercised by TAG and the $19,000,000 park was purchased. Upon the initial purchase, 172 of the residents bought their lots from TAG and TAG held the remaining 109 for subsequent sale. One home was included in the purchase by TAG which then transferred the lot and home to the resident homeowners association for the resident manager. Within one year, over 80% of the total lots had been sold to residents or to people buying homes from residents who have chosen to leave the park. Unfortunately, most of those who left the park were elderly people who passed on or who had to leave for assisted living situations. TAG has continued as landlord for those residents who did not wish to buy. Those people do not have to purchase their lots and can continue to rent at affordable rates.

TAG has developed a long term plan which will allow either a direct purchase of parks through bond issues or FHA insured loans, or a combination thereof. TAG also has available other sources for financing, which can assist in its’ purchase of manufactured housing communities.

As a further accommodation for the potential rescue of low income housing, TAG has developed relationships with some investment capital groups which will assist in the acquisition of parks with a subsequent refinance to pay for the acquisition capital.

TAG has surrounded itself with a number of very competent people, both on its board of directors as well as on its advisory board. Public minded citizens have volunteered to spend their time to promote the cause of housing opportunities for all.