MARIN VALLEYMARIN VALLEY

MARIN VALLEYMARIN VALLEYResidentsResidents

A resident’s evaluation of the A resident’s evaluation of the

Marin Valley Title TransferMarin Valley Title Transfer

MARIN VALLEY MARIN VALLEY A PLACE FOR ALL SENIORS A PLACE FOR ALL SENIORS

TO AFFORD AND ENJOY TO AFFORD AND ENJOY

An honest and An honest and inexpensive approach to inexpensive approach to

the the

Marin Valley Title Marin Valley Title TransferTransfer

PLEASE HOLD YOUR QUESTIONS UNTIL THE PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THIS PRESENTATIONEND OF THIS PRESENTATION

Submitted by James W Harais 63 Marin Submitted by James W Harais 63 Marin Valley Dr.Valley Dr.

THREE REASONS FOR THISTHREE REASONS FOR THISPRESENTATION FOR PRESENTATION FOR

PARK PURCHASEPARK PURCHASEOwnership-Ownership- who would own and hold shares and who would own and hold shares and who would hold title to Marin Valley.who would hold title to Marin Valley.

Trust-Trust- of the governing bodies of the Park and of the governing bodies of the Park and Security-Security- for the Residents of Marin Valley for the Residents of Marin Valley

Reduction of and equalization of rents-Reduction of and equalization of rents- payoff of payoff of the current bonds, maintenance operating fees for the current bonds, maintenance operating fees for the Park. the Park.

A BRIEF PARK HISTORYA BRIEF PARK HISTORY

““Those who cannot Those who cannot remember and learn from remember and learn from

the past are condemned to the past are condemned to repeat it .”repeat it .”

poet and philosopher poet and philosopher

George SantayanaGeorge Santayana

Residents & Joint PowersResidents & Joint Powers

The purchase of Marin Valley from the former owner, Mr. Said, and the The purchase of Marin Valley from the former owner, Mr. Said, and the formation of the NFA to oversee the Park’s financial stability was to formation of the NFA to oversee the Park’s financial stability was to provide and maintain affordable housing for low-income seniors.provide and maintain affordable housing for low-income seniors.

To offer seniors a place where they can feel secure and live in peace. To offer seniors a place where they can feel secure and live in peace.

To achieve this goal, the residents voted a $336.00 a year increase in To achieve this goal, the residents voted a $336.00 a year increase in monthly payments called rents.monthly payments called rents.$28.00 month X 12 months = $336.00.$28.00 month X 12 months = $336.00.

The primary mandate from the beginning of this purchase was to The primary mandate from the beginning of this purchase was to include all residents and keep home owner monthly payments as low include all residents and keep home owner monthly payments as low as possible, while guaranteeing payment of the bonds and good as possible, while guaranteeing payment of the bonds and good maintenance of the Park. maintenance of the Park.

PARK ACQUISITION PARK ACQUISITION CORPORATIONCORPORATION

PAC was formed by the residents to voice and to facilitate the PAC was formed by the residents to voice and to facilitate the purchase of the Park for the residents.purchase of the Park for the residents.

PAC had been established for many years, waiting for the owner to PAC had been established for many years, waiting for the owner to sell. sell.

PAC was incorporated to accommodate a first rite of refusal, should the PAC was incorporated to accommodate a first rite of refusal, should the Park be placed for sale by the owner, Mr. Paul Said. Park be placed for sale by the owner, Mr. Paul Said.

PAC, after the first offer and much negotiation, could not arrange the PAC, after the first offer and much negotiation, could not arrange the resident purchase so PAC asked the City of Novato, as required by the resident purchase so PAC asked the City of Novato, as required by the bond insurers, to guarantee the purchase of bonds for the purchase. bond insurers, to guarantee the purchase of bonds for the purchase.

PAC did this to avoid the Park being purchased by another buyer, such PAC did this to avoid the Park being purchased by another buyer, such as a REIT (Real Estate Investment Trust).as a REIT (Real Estate Investment Trust).

Novato Financing AuthorityNovato Financing Authority

NFA was formed, as required by the bond insurers, to take NFA was formed, as required by the bond insurers, to take and hold the title to the Marin Valley Mobile Home Park.and hold the title to the Marin Valley Mobile Home Park.

NFA was the governing body as a make up of City of NFA was the governing body as a make up of City of Novato and the State Redevelopment Agency.Novato and the State Redevelopment Agency.

NFA was created to provide for the financing, refinancing, NFA was created to provide for the financing, refinancing, acquiring, planning, undertaking, advancing, constructing, acquiring, planning, undertaking, advancing, constructing, improving, developing, maintaining, and operating land on improving, developing, maintaining, and operating land on

which privately owned mobile homes are located.which privately owned mobile homes are located.

PARK ACQUISITION PARK ACQUISITION CORPORATIONCORPORATION

PAC was then assigned, by delegation agreement of the PAC was then assigned, by delegation agreement of the NFA, the responsibility of overseeing the Park .NFA, the responsibility of overseeing the Park .

Stability security and control of Park functions.Stability security and control of Park functions.– Hiring a Professional Park ManagerHiring a Professional Park Manager– Creating Park budgets and making sure they are met.Creating Park budgets and making sure they are met.– Forming short and long term plans.Forming short and long term plans.

PAC’s primary function, under the delegation agreement, PAC’s primary function, under the delegation agreement, was not was not to insist on the transfer of the Park until such to insist on the transfer of the Park until such time as Marin Valley’s fiscal responsibilities were met. time as Marin Valley’s fiscal responsibilities were met. Marin Valley has not paid their primary bonds, yet.Marin Valley has not paid their primary bonds, yet.

SEVERAL RESIDENT TITLE SEVERAL RESIDENT TITLE TRANSFERS WERE TRIEDTRANSFERS WERE TRIED

After the Park was acquired and placed with the Joint After the Park was acquired and placed with the Joint Powers NFA, several transfers were tried with little Powers NFA, several transfers were tried with little resident input.resident input.

The first, was to sell the Park asset and title to LINK, a The first, was to sell the Park asset and title to LINK, a public benefit park corporation 501c3. This was soundly public benefit park corporation 501c3. This was soundly defeated by the residents defeated by the residents

Then, a 501c3 (MVSC) was established, at a cost of over Then, a 501c3 (MVSC) was established, at a cost of over $100,000.00 of Park funds, to transfer the title of Marin $100,000.00 of Park funds, to transfer the title of Marin Valley. As the MVSC bylaws do not offer total resident Valley. As the MVSC bylaws do not offer total resident control and no resident would own nor share in the control and no resident would own nor share in the ownership of the Park, it is not likely to be accepted by ownership of the Park, it is not likely to be accepted by the residents or the City of Novato.the residents or the City of Novato.

PARK TITLE TRANSFER TO PARK TITLE TRANSFER TO THE CITY OF NOVATOTHE CITY OF NOVATO

The State Redevelopment Agencies across the State are now The State Redevelopment Agencies across the State are now required to transfer funds and sell assets.required to transfer funds and sell assets.

To avoid the forced sale of the Park, the NFA transferred the title of To avoid the forced sale of the Park, the NFA transferred the title of Marin Valley to the City of Novato.Marin Valley to the City of Novato.

Novato is now dealing with a new bond insurer and many new costs Novato is now dealing with a new bond insurer and many new costs are being incurred. The City is now requiring Marin Valley to do are being incurred. The City is now requiring Marin Valley to do studies and retrofit construction, which will ultimately increase costs.studies and retrofit construction, which will ultimately increase costs.

The Marin Valley residents are becoming concerned with this new The Marin Valley residents are becoming concerned with this new structure, which may now limit the full participation of PAC and the structure, which may now limit the full participation of PAC and the residents.residents.

RESIDENT FEARSRESIDENT FEARS

The The major fearmajor fear of the residents is that the City of Novato of the residents is that the City of Novato will sell the Park.will sell the Park.

The density of the Park would be increased by adding The density of the Park would be increased by adding multi- dwelling low- income structures in the Park, multi- dwelling low- income structures in the Park, decreasing the quality of life of the residents.decreasing the quality of life of the residents.

The rents, utilities and City required Park repairs would be The rents, utilities and City required Park repairs would be increased to the point that the residents could no longer increased to the point that the residents could no longer afford to live here.afford to live here.

The residents would loose their mobile home investment The residents would loose their mobile home investment and an affordable low- income place to live.and an affordable low- income place to live.

FEARSFEARS

The residents would be subject to a dominating board and The residents would be subject to a dominating board and have no vote or means of recourse.have no vote or means of recourse.

A major fear of the residents is that they will have no say or A major fear of the residents is that they will have no say or input in how the Park will be run.input in how the Park will be run.

Increase of the Park by adding additional costs to the Park Increase of the Park by adding additional costs to the Park decreasing their quality of life.decreasing their quality of life.

CURRENT PARK RENTS- CURRENT PARK RENTS- LET’S LOOK AT NUMBERSLET’S LOOK AT NUMBERS

Rents in Marin Valley vary fromRents in Marin Valley vary from $475.00 to $950.00.$475.00 to $950.00. Using the average rent, about $625.00 per month and Using the average rent, about $625.00 per month and

about 45% of this rent goes to maintain the Park infra-about 45% of this rent goes to maintain the Park infra-structure. The balance is used to pay the bonds.structure. The balance is used to pay the bonds.

45% of $625=$281.25 which is the Park maintenance 45% of $625=$281.25 which is the Park maintenance costs.costs.

$625-$281.25=$343.75 is bond payment.$625-$281.25=$343.75 is bond payment. $475-$281.25$475-$281.25=$193.75=$193.75 is bond payment. is bond payment. $950-$281.25$950-$281.25=$668.75=$668.75 is bond payment is bond payment IS IT FAIR OR RIGHT THAT WE PAY UNEQUALLY ON IS IT FAIR OR RIGHT THAT WE PAY UNEQUALLY ON

A LOAN OR BOND?A LOAN OR BOND?Marin Valley has not paid off their primary bonds yet.Marin Valley has not paid off their primary bonds yet.

TRANSFER FROM NOVATOTRANSFER FROM NOVATO There are many ways the title could be transferred but the two most There are many ways the title could be transferred but the two most

likely are as follows:likely are as follows:

A transfer of title to a 501c3 (a public corporation) will result in A transfer of title to a 501c3 (a public corporation) will result in residents not owning nor controlling Marin Valley.residents not owning nor controlling Marin Valley.

All residents now have a share in (a mutual benefit corporation) which All residents now have a share in (a mutual benefit corporation) which could hold title. This is PAC.could hold title. This is PAC.

PAC (which we have already) or some MUTUAL BENEFIT PAC (which we have already) or some MUTUAL BENEFIT CORPORATION, with proper safeguards and oversight, should receive CORPORATION, with proper safeguards and oversight, should receive the title to Marin Valley.the title to Marin Valley.

A mutual benefit corporation allows the residents to own the asset by A mutual benefit corporation allows the residents to own the asset by shares and if done properly, would add value to each resident.shares and if done properly, would add value to each resident.

HOW COULD THE HOW COULD THE TRANSFER BE DONE?TRANSFER BE DONE?

A conventional loan may have to be applied and would, A conventional loan may have to be applied and would, most likely, be at a rate on or near 5.25%.most likely, be at a rate on or near 5.25%.

The rents would, most likely, go up slightly, or at least stay The rents would, most likely, go up slightly, or at least stay the same, for a long time- 15 to 30 years.the same, for a long time- 15 to 30 years.

Another way, is to pay off the existing bonds at 3% from Another way, is to pay off the existing bonds at 3% from State funded MPROP (Mobile Home Park Resident Ownership Program) and transfer title to PAC. and transfer title to PAC.

Not all the money would come from MPROP. Other Not all the money would come from MPROP. Other financing or grants may be required. financing or grants may be required.

Mobilehome Park Resident Ownership Program (MPROP)Links to program publications are shown following the program description.

PURPOSEFinance the preservation of affordable mobilehome parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies.

ASSISTANCE TYPELoans

TERMSShort-term conversion loans at three percent simple annual interest for up to 3 years to enable a resident organization, nonprofit sponsor or local public agency to purchase a mobilehome park.Long-term blanket loans at three percent simple annual interest for up to 30 years for long-term financing of a park purchase, or for a resident organization, nonprofit or local public agency that has purchased a park to help low-income residents finance the purchase of shares or spaces in the park. Payments of conversion and blanket loans can be deferred or adjusted if necessary to make the purchase feasible.Long-term individual loans at three percent simple annual interest, to low-income residents of a mobilehome park that has been converted, to ensure housing affordability when the resident buys a cooperative interest, a share, a planned unit development space, or a condominium space in the park.

ELIGIBLE ACTIVITIESPurchase (conversion) of a mobilehome park by a resident organization, nonprofit entity or local public agency; rehabilitation or relocation of a purchased park; purchase by a low income resident of a share or space in a converted park.

ELIGIBLE APPLICANTSMobilehome park resident organizations, nonprofit entities, and local public agencies. Low income residents of converted parks apply for individual loans to the entity that has purchased the park.

NOTICES OF FUNDING AVAILABILITY (NOFAS)Applications are invited through issuance of Notices of Funding Availability (NOFAs). Projects are evaluated, ranked and funded according to criteria in the NOFAs.

REMEMBER OUR RENTS REMEMBER OUR RENTS

We all, as residents who pay rent, now pay We all, as residents who pay rent, now pay for the bonds- $10,000,000.for the bonds- $10,000,000.

$625-$281.25=$343.75 is bond payment.$625-$281.25=$343.75 is bond payment.

$475-$281.25$475-$281.25=$193.75=$193.75 is bond payment. is bond payment.

$950-$281.25$950-$281.25=$668.75=$668.75 is bond payment is bond payment

THE WAY IT SHOULD BE DONE?THE WAY IT SHOULD BE DONE? Another way, is to individually finance, by loan, 315 shares Another way, is to individually finance, by loan, 315 shares

at a rate of 3% from MPROP (Department of Housing and at a rate of 3% from MPROP (Department of Housing and Community Development).Community Development).

We currently pay 5.25% on the bonds. We currently pay 5.25% on the bonds. Assume $10,000,000.00 in bond pay off plus Assume $10,000,000.00 in bond pay off plus

$1,000,000.00 closing, transfer and legal fees, etc., $1,000,000.00 closing, transfer and legal fees, etc., divided by 315 spaces. divided by 315 spaces.

$$11,000,000.00 / 315 = $34,920.00 11,000,000.00 / 315 = $34,920.00 required required from each space to fund the transfer. $1,000,000.00 could from each space to fund the transfer. $1,000,000.00 could come from existing (already required) hold back funds come from existing (already required) hold back funds (buckets).(buckets).

Many low income residentsMany low income residents would immediately say they would immediately say they can not afford the $34,920.00 but if you look at it closely, it can not afford the $34,920.00 but if you look at it closely, it may even lower their rent with no out of pocket money.may even lower their rent with no out of pocket money.

HOW COULD MY RENT GO DOWN HOW COULD MY RENT GO DOWN AND STILL BUY THE PARK?AND STILL BUY THE PARK?

The average rent is about $625.00 per month and about The average rent is about $625.00 per month and about 45% of this rent goes to maintain the Park infra-structure. 45% of this rent goes to maintain the Park infra-structure. The balance is used to pay the bonds. The balance is used to pay the bonds.

45% of $625.00=$281.25 Park Maintenance fee.45% of $625.00=$281.25 Park Maintenance fee. $625.00-$281.25=$343.75 monthly bond payment$625.00-$281.25=$343.75 monthly bond payment

Monthly payment on new loan is $140. 23. Monthly payment on new loan is $140. 23. $281.25 + $140.23= $421.48 monthly rent. $281.25 + $140.23= $421.48 monthly rent. Rent saved is $625.00-$421.48Rent saved is $625.00-$421.48=$203.52=$203.52

WHAT IF I DON’T WANT WHAT IF I DON’T WANT TO PARTICIPATE?TO PARTICIPATE?

A resident would not be required to participate.A resident would not be required to participate. Their rent would continue at the current rate until the Their rent would continue at the current rate until the

mobile home is sold.mobile home is sold. The Corporation would fund the difference by conventional The Corporation would fund the difference by conventional

loan or group MPROP loan.loan or group MPROP loan. This would not be very long as the Park turns over about This would not be very long as the Park turns over about

20% of its homes a year.20% of its homes a year. The new purchaser would be required to pay their share up The new purchaser would be required to pay their share up

front as part of the sale or purchase of their mobile home. front as part of the sale or purchase of their mobile home.

HOW LONG WOULD IT TAKE?HOW LONG WOULD IT TAKE?

An escrow account would be set up.An escrow account would be set up. Those residents who wished to participate would enter Those residents who wished to participate would enter

funds into this account.funds into this account. The Corporation would fund the difference by conventional The Corporation would fund the difference by conventional

loan or group MPROP loan and deposit funds to the loan or group MPROP loan and deposit funds to the escrow account for those who don’t wish to participate.escrow account for those who don’t wish to participate.

Any new purchaser would be required to pay their share up Any new purchaser would be required to pay their share up front into the escrow account. front into the escrow account.

This escrow would hold until enough monies are acquired This escrow would hold until enough monies are acquired to pay off the bonds and the transfer would be made.to pay off the bonds and the transfer would be made.

This has been done in other California locations (Santa This has been done in other California locations (Santa Cruz) with great success.Cruz) with great success.

BACK TO TRUSTBACK TO TRUST

““Democracy Is Messy. It is so much easier to just limit Democracy Is Messy. It is so much easier to just limit input and legislate what others may perceive is in our best input and legislate what others may perceive is in our best interest.”interest.” Nicholas D. Kristof New York TimesNicholas D. Kristof New York Times

The following is a way of protecting the integrity and trust in The following is a way of protecting the integrity and trust in the Park and its new resident governments. the Park and its new resident governments.

It gives the residents recourse for grievance and no one It gives the residents recourse for grievance and no one board dominance over the Park.board dominance over the Park.

All boards would have equal votes, term limits for each All boards would have equal votes, term limits for each board and board votes would also be subject to resident board and board votes would also be subject to resident vote.vote.

HOW WOULD THE PARK BE HOW WOULD THE PARK BE GOVERNED?GOVERNED?

PAC

HOL

Outside Park Management

501c3 non profit MARVEL

PAC OR THE MUTUAL CORP.PAC OR THE MUTUAL CORP.

The Mutual Benefit Corporation (PAC) would hold title and The Mutual Benefit Corporation (PAC) would hold title and each each residenceresidence would have an equal share of the would have an equal share of the corporation and an equal vote.corporation and an equal vote.

PAC would only have a single vote in the mutual PAC would only have a single vote in the mutual governmental bodies. governmental bodies.

PAC would vote on budgets, oversee the operations and PAC would vote on budgets, oversee the operations and Park finances.Park finances.

A 501c3 NON PROFITA 501c3 NON PROFIT The 501c3 would not hold title to the Park. PAC and the The 501c3 would not hold title to the Park. PAC and the

residents would. The 501c3 would only operate the Park.residents would. The 501c3 would only operate the Park. A 501c3 Non Profit would operate the Park. It would A 501c3 Non Profit would operate the Park. It would

gather information and budget requests from the other gather information and budget requests from the other organizations, obtain bids for repairs and oversee the organizations, obtain bids for repairs and oversee the outside Park manager.outside Park manager.

There are definite tax advantages of the Park being run by There are definite tax advantages of the Park being run by a 501c3 public corporation.a 501c3 public corporation.

The 501c3 would have PAC, HOL, Marvel as auditors, as The 501c3 would have PAC, HOL, Marvel as auditors, as well as outside auditors, of its operations. It would consist well as outside auditors, of its operations. It would consist of residents and outside business to consult on its board. of residents and outside business to consult on its board.

The 501c3 could not do anything outside its budget unless The 501c3 could not do anything outside its budget unless approved by all the other boards’ votes.approved by all the other boards’ votes.

HOME OWNERS LEAGUE HOLHOME OWNERS LEAGUE HOL

The HOL would be the resident’s input organization and The HOL would be the resident’s input organization and would have an equal vote.would have an equal vote.

HOL would protect the resident’s rights and opinions in the HOL would protect the resident’s rights and opinions in the Park. Park.

HOL would submit its own budget, vote on all budgets, and HOL would submit its own budget, vote on all budgets, and have input to the operations and Park finances.have input to the operations and Park finances.

HOL would make resident suggestions for Park HOL would make resident suggestions for Park improvements and Park maintenance and repairs. improvements and Park maintenance and repairs.

MARVELMARVEL

MARVEL would be the entertainment arm of the Park.MARVEL would be the entertainment arm of the Park. It would create its own budget and submit it for vote with It would create its own budget and submit it for vote with

the other Park budgets.the other Park budgets. MARVEL would also have an equal vote with all the other MARVEL would also have an equal vote with all the other

boards. boards. MARVEL would control the rental use and operation of the MARVEL would control the rental use and operation of the

club house, and secure insurance for all uses by the club house, and secure insurance for all uses by the residents and outside organizations, such as: Lyons, Sirs, residents and outside organizations, such as: Lyons, Sirs, and other service clubs, resident parties and hobby clubs. and other service clubs, resident parties and hobby clubs.

All rules and regulations would be voted on by the other All rules and regulations would be voted on by the other boards and residents.boards and residents.

OUTSIDE MANAGEMENT OUTSIDE MANAGEMENT COMPANYCOMPANY

The outside management company would be overseen by The outside management company would be overseen by the 501c3 non profit and the other boards, but would only the 501c3 non profit and the other boards, but would only answer to the 501c3.answer to the 501c3.

It would run the day to day operations in the Park, make It would run the day to day operations in the Park, make repairs and answer resident questions.repairs and answer resident questions.

It would bring all Park and resident problems to the 501c3 It would bring all Park and resident problems to the 501c3 oversight board.oversight board.

The Management company would not have a vote.The Management company would not have a vote.

MARIN VALLEY MARIN VALLEY A PLACE FOR ALL SENIORS A PLACE FOR ALL SENIORS

TO AFFORD AND ENJOY TO AFFORD AND ENJOY

I will entertain questions I will entertain questions at this timeat this time

Submitted by James W Harais 63 Marin Submitted by James W Harais 63 Marin Valley Dr.Valley Dr.

MARIN VALLEYMARIN VALLEY

NOW WE ASK YOU ON THE NOW WE ASK YOU ON THE COMMITTEE -COMMITTEE -

WHERE DO WE GO FROM WHERE DO WE GO FROM HERE AND WHAT HAPPENS HERE AND WHAT HAPPENS

NEXT?NEXT?Submitted by James W Harais 63 Marin Valley Dr.Submitted by James W Harais 63 Marin Valley Dr.

MARIN VALLEY MARIN VALLEY A PLACE FOR ALL SENIORS A PLACE FOR ALL SENIORS

TO AFFORD AND ENJOY TO AFFORD AND ENJOY

An honest and An honest and inexpensive approach to inexpensive approach to

the the

Marin Valley Title Marin Valley Title TransferTransfer

Submitted by James W Harais 63 Marin Submitted by James W Harais 63 Marin Valley Dr.Valley Dr.