About Housing Cooperatives

A manufactured housing park cooperative is a group of people organized for the purpose of owning and operating a park for the benefit of its members on a not for profit basis. Each member owns one share or membership interest in the corporation. Like other types of cooperatives, manufactured housing park co-ops are democratically managed: one home, one vote. Members elect a Board of Directors who manage the co-op. The corporation holds one mortgage on the land for the entire co-op, collects the "rents," makes the mortgage payments, pays the property taxes on the land, pays the bills, does the bookkeeping and maintains the property. The corporation is responsible for major repairs and upkeep, insurance, replacement of worn out septic systems, etc.

There are many benefits to living in a cooperative, which include control of monthly charges ("rents"), lifetime security against unfair evictions, repairs and improvements done as soon as they are needed, liability protection (members are not personally liable for co-op loans), extended services (such as day care, crime watches, laundry facilities, whatever residents agree to), and a strong sense of community. Everyone has a say in the way their park is run, and major decisions are made democratically–the members decide by voting.

Manufactured housing park cooperatives are most successful when a few specific procedures are followed:

1. the Board of Directors keeps members informed of all its actions (through meetings, newsletters, etc.);
2. the co-op maintains adequate cash reserves for emergencies, replacements, and repairs;
3. the Board or Membership has the right to approve new members and can run credit checks and interview prospective members to see if they are willing to participate in the co-op;
4. sub-leasing is restricted to cases of hardship as specified in the by-laws;
5. membership equity is limited; and
6. members participate actively in the co-op.

The conversion of manufactured housing parks into cooperatives is becoming more commonplace in New Hampshire, and has been utilized for years in Florida, Arizona, California, and other areas where the escalation of land values has caused large rent increases and mass evictions of manufactured housing owners and tenants.