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Multifamily Market Commentary – May 2019

A Need for Non-Traditional Ownership of Manufactured Housing Communities 

Manufactured housing is gaining recognition as an important source of affordable housing and many of these homes are

located in Manufactured Housing Communities (MHC). While ownership of MHC can take many forms, under Duty to 

Serve, Fannie Mae and Freddie Mac are working to help increase liquidity for non-traditional owners. Non-traditional 

owners include governmental entities, non-profit organizations, and resident-owned communities. Preliminary estimates 

show that there are currently 800 non-traditionally owned MHC. According to DataComp/JLT, a third-party data vendor 

specializing in MHC, the vast majority of these are resident-owned communities. These communities can be found in almost 

every state and are located in rural, suburban, and even metropolitan areas. In some cases, MHC can consist of more than 

300 homes.

Resident-Owned Communities Provide Stability 

Part of what makes MHC more affordable is residents only have to purchase their home; they do not have to purchase the 

land on which their home sits. Instead they rent lots – known as pads – as well as any utility hookups from the MHC. 

However, when the pad rents rise too quickly or the MHC is sold and the new owner raises pad rents significantly, this 

affordable housing can quickly become less affordable. While a homeowner could theoretically move their mobile home to 

a community with lower pad rents, in reality, it can be quite costly – as much as $5,000 – to move the home, and moving 

can potentially damage the home. As a result, resident-owned communities are quickly gaining popularity, and often give 

residents an opportunity to better manage and control MHC costs. 

A Large Network of Resident-Owned Communities 

The leading group of resident-owned communities is ROC USA. Created in 2008, ROC USA is a non-profit that helps 

residents purchase their manufactured housing communities through a network of nine affiliated entities, including Casa 

of Oregon in the western region of the U.S.; the Cooperative Development Institute in the eastern region; and North Country 

Cooperative Foundation in the upper Midwest. 

In the ROC USA model, homeowners form a non-profit cooperative. Each household is a member of the cooperative, which 

owns the land and manages the business of the MHC. Members continue to own their own homes individually in addition 

to an equal share of the land beneath the entire community. The benefits of living in a resident-owned community include

greater tenant control of monthly pad rent, community repairs, and improvements. As a result, many resident-owned MHCs 

have a strong sense of community, are well maintained, and have inherent protections regarding eviction.

Location of MHCs in ROC USA Network

Source: ROC USA https://rocusa.org/meet-the-communities/
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ROC USA MHC in 15 States

As the map demonstrates, ROC USA has a vast group of resident-owned MHCs. Its affiliates work with more than 200 

resident-owned MHCs in 15 states coast to coast. In fact, residents in more than 25 MHCs have purchased their parks and 

converted them into resident-owned communities in past 18 months alone.

Many MHC in Northeast

While MHCs are frequently associated with warmer southern states like Florida and Arizona, about half of the MHCs in the 

ROC USA network are located in the Northeast, where housing costs tend to be among the most expensive. Some of the 

largest ROC USA MHCs are also located in the Northeast. For example, Halifax Estates, located about an hour south of 

Boston, is the largest ROC USA MHC, with an estimated 430 homes. It is restricted to residents aged 55 and older. There 

are another 35 ROC USA MHCs in the northeast that consist of 100 or more homes.

Resident-owned Parks, Inc. Also Helps Convert MHCs

Information is more limited about resident-owned MHCs outside of the ROC USA network. However, there appear to be a 

significant number in California. For instance, Resident-owned Parks, Inc., a non-profit housing corporation and consulting 

firm, has converted eight MHCs in California into resident-owned communities, preserving 617 homes. Even smaller MHCs 

are going the resident-owned community route. One interesting example was the recent conversion of the Blue Spruce 

Mobile Home Lodge MHC located in the wine country of Sonoma County. Surrounded by vineyards, Blue Spruce has 54 

homes located outside Santa Rosa.

A Significant Number of Resident-owned MHCs in 

California

Based on self-reported data, there appear to be an estimated 

200 resident-owned MHCs in California, representing more 

than 30,000 homes. There appear be a higher concentration 

in Southern California, particularly in and around Los 

Angeles. Over half of these resident-owned MHCs are agerestricted.

Four out of the top five largest resident-owned MHCs are

located in Riverside County and are age restricted to 55 years 

and older. The largest resident-owned MHC, with more than 

1,900 homes, is Palm Desert Greens, followed by Tri-Palms 

Estates with more than 1,600 homes. Sierra Dawn Estates 

rounds out the top three resident-owned MHCs with more 

than 1,500 units. 

A Few California Counties Have A High Concentration of MHCs

Several counties in California appear to have an especially high number of resident-owned MHCs. Both San Diego and 

Riverside counties appear to have over 30 each. Santa Cruz has more than 20 and Orange and San Luis Obispo each have 

over 10 resident-owned MHCs. The counties with a higher concentration of non-age-restricted resident-owned MHCs –

more than 10 each – are San Diego, Los Angeles, and Santa Cruz. 

Resident-Owned MHCs in California 

Source: https://mhphoa.com/ca/roc/map
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Florida Has its Own Resident-owned MHC Association 

Florida Resident-owned Communities, Inc., a not-for-profit 

corporation with nearly 120 resident-owned MHCs, supports and 

assists resident-owned MHCs throughout Florida. As shown in the 

map to the left, most of these resident-owned MHCs are primarily 

located in central and south Florida.

A Few Florida Counties Have A High Concentration of 

MHCs

While many Florida cities have just one resident-owned MHC, a 

few have several. St. Petersburg and Largo have over 10 each. Fort 

Myers, Bradenton, and Naples each have more than five. Among 

others, Clearwater and Punta Gorda have four each, and Sarasota 

and Pinellas Park each have three resident-owned MHCs.

Ownership Can Take Many Forms

Resident-owned MHCs in Florida are not limited to just a 

cooperative structure – many are condos. Under this model

residents own both their home and land, giving them more 

independence. However, associated costs tend to be higher.

Most States Have At Least One ROC

According to Datacomp/JLT, three states contain 

over 2/3 of all resident-owned communities: 

California, Florida, and New Hampshire. 

Massachusetts also has a significant number of 

communities with 35. Eight more states have 

between 10 and 20 communities. In all, 37 states 

have at least one resident-owned community

according to Datacomp.

Southwest Contains a Few ROC

There are ROC scattered throughout the 

Southwest. Arizona and Texas have the highest 

concentration with 14 and 11 resident-owned

communities respectively, according to Datacomp. 

In Texas, Hidalgo County appears to have the 

highest concentration. For instance, the Adobe

Wells retirement community in McAllen has about 

300 homes. The rest of the communities are 

scattered throughout the Texas. 

State Number of ROC

California 213

Florida 177

New Hampshire 129

Massachusetts 35

Oregon 18

Washington 16

New York 15

Arizona 14

Minnesota 12

Vermont 12

Texas 11

Montana 10

Select Resident-Owned MHCs by State

Resident Owned MHCs in Florida 

Source: 

https://www.flaroc.com/member-communities

Source: Datacomp/JLT
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Non-Profits Taking Another Look at MHCs

While non-profits have generally bypassed MHCs in favor of traditional apartment buildings in the past, many are giving 

MHCs a second look. Non-profit ownership can be useful where residents have no experience or desire to run an MHC, 

leaving the non-profit responsible for managing the community.

Several non-profits target MHCs specifically. As shown in the table below, one of the non-profits with the largest portfolio 

of MHCs is the Millennium Housing Corporation. According to Millennium, it currently has 19 MHCs located in California 

which serve 4,500 households with more than 10,000 residents in total. Augusta Communities is another non-profit that 

has six MHCs in California, serving 925 households with about 2,500 residents.

Oregon Addressing MHCs Built Prior to 1976

While St. Vincent DePaul of Lane County in Oregon has a portfolio of primarily affordable multifamily properties, it has also 

been targeting MHCs through its Mobile Home Park Reclamation initiative. According to St. Vincent DePaul, there are 

currently about 40,000 units of manufactured housing in Oregon that were built prior to 1976. That year, the U.S. 

Department of Housing and Urban Development (HUD) instituted industry standards for manufactured housing. To date, 

St. Vincent DePaul has been focused on these MHCs, thereby helping preserve housing affordability in seven MHCs, 

representing a total of 251 households. The non-profit has also recently purchased an additional MHC with 130 households, 

with the goal of replacing the pre-1976 homes with new homes while preserving the community’s affordability.

Non-Profit and Government-Owned MHCs

Source: CoStar, Inc. Note: May include some resident-owned communities incorporated as non-profit entities
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NeighborWorks Affiliates Also Assist MHCs

NeighborWorks America is a nationwide non-profit promoting affordable housing through a network of affiliates that either 

help owners or own MHCs outright. NeighborWorks has focused on the MHC sector to help preserve affordable housing in 

many rural areas, and is focusing particularly on MHCs built prior to 1976.

Government Entities Also Involved

In some jurisdictions, state and local public housing authorities own and operate MHCs. Local government can also acquire 

MHCs through a relationship with a support organization. In some cases, non-profits and government agencies intervene 

when closure or substandard conditions threaten the ongoing viability of an MHC. In that way, these entities can end up 

becoming owners. 

Currently, there is a backlog of deferred maintenance for many public housing properties, and MHCs are unfortunately no 

exception. While HUD’s Rental Assistance Demonstration program can help refinance some of these properties, the 

program is limited by a finite amount of funds and must also assist apartment properties that are owned by state and local 

public housing authorities. As a result, additional sources of financing are needed to keep MHCs owned by public housing 

authorities affordable and in good repair.

Non-Profit Entities with Multiple MHCs

Source: CoStar, Inc. and websites of nonprofits above N/A: not available
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Some Entities Own Multiple MHCs

While many government entities own a single MHC, some own several. As shown in the table below, two of the government 

entities with multiple MHCs are located in Washington state. The King County Housing Authority owns five such MHCs 

that can house up to a total of 651 households. The Housing Authority of Snohomish County owns five MHCs that can house 

up to 183 households. In addition to providing affordable rental housing, both counties offer programs for affordable 

homeownership at their MHCs. 

An Ongoing Trend in the Need for Non-Traditional MHC Ownership

MHCs are a solid and reliable source of affordable housing for both homeowners and renters in many places across the 

country, in both suburban and rural locations. Unfortunately, the number of MHCs is declining. In suburban areas, MHCs 

are in danger of being replaced by either traditional apartment buildings or other commercial properties. In some rural 

areas, many MHCs are older and in need of upgrades and renovations. In these cases, a non-traditional or non-profit 

ownership structure can be particularly useful. 

The trend of non-traditional ownership has been expanding. For example, ROC USA saw an estimated 15 percent increase 

in conversions to resident-owned MHCs in just 18 months. Other non-profits and grassroots movements are forming to 

protect MHCs in various parts of the country. As a result, while still a small number, we believe the trend towards nontraditional ownership of MHCs is likely to continue over the next several years, especially as housing affordability remains 

a concern for many households.

Tanya Zahalak

Senior Multifamily Economist

Multifamily Economics and Market Research

May 2019

Opinions, analyses, estimates, forecasts and other views of Fannie Mae's Multifamily Economics and Market Research 

Group (MRG) included in these materials should not be construed as indicating Fannie Mae's business prospects or 

expected results, are based on a number of assumptions, and are subject to change without notice. How this information 

affects Fannie Mae will depend on many factors. Although the MRG bases its opinions, analyses, estimates, forecasts and 

other views on information it considers reliable, it does not guarantee that the information provided in these materials is 

accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these 

views could produce materially different results. The analyses, opinions, estimates, forecasts and other views published 

by the MRG represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie 

Mae or its management.

Government Entities with Multiple MHCs

Source: CoStar, Inc. and non-profits listed above.