Building on Terra FirmaOur Experience with Infill Development
Tuesday, October 3, 2017 | 10:45 am to 12 pm
Omni Hotel | Providence
Kevin Walker | Acting Executive Director
Northcountry Cooperative FoundationPhoto, Fargo Forum
August 29, 2009.
ZUMBRO RIDGE ESTATES
ROCHESTER, 90 UNITS, 2017
20
BENNETT PARK COOPERATIVE
MOORHEAD, 70 UNITS, 2007
SUNRISE VILLA COOPERATIVE
CANNON FALLS, 47 UNITS
PRAIRIE LAKE ESTATES HOMEOWNERS
COOPERATIVE
KENOSHA, WI, 70 UNITS, 2013PARK PLAZA COOPERATIVE
FRIDLEY, 88 UNITS, 2011
FIVE LAKES COOPERATIVE
FAIRMONT, 94 UNITS, 2014
MADELIA MOBILE VILLAGE COOPERATIVE
MADELIA, 57 UNITS, 2008
STONEGATE COOPERATIVE
LINDSTROM, 50 UNITS, 2012
HILLCREST COMMUNITY COOPERATIVE
CLARKS GROVE, 90 UNITS, 2015
Track record
PAMMEL CREEK ESTATES, INC.
LA CROSSE, WI 51 UNITS
750 households
Infill Program Timeline2007-2017
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Six homes
$90,000
cooperative reserves
$200,000
Permanent endowment
Family Housing
Fund
$1.5 millionROOF placement
resources
64 late-model manufactured
homes
Home seller financing contract
Contract for deed sales2012 to 2019
Six homes$14,200 average price
NCF Infill ProgramTwo models
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FEMA Surplus – 70 homes (2007 – 2019)
• 18-month mandatory stewardship period ($195 to $250 mtce fee)
• NCF provided credit toward purchase at end of 18 months
• Average sales price: $26,000
• Down payment: $1K to $2K;
• Monthly housing payments: $210 to $425 (5- to 7-year term)
FEMA Auction – 6 homes (2017)
• Median sales price: $37,000
• Down payment: $3,700
• Monthly housing payments: $370 (10-year term)
NCF Home Placement ProgramOutcomes
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1. Performance. Default rate: 7.1%. All defaults have resulted in buyer advancing title
and keys to NCF (“repossession by mutual consent”)
2. Populations served.
1. Race/ethnicity: 71%: white; 16% Latino; 11%: American Indian; 2% Asian.
2. Income: 28% at 50% AMI, 42% at 60% AMI, 56% at 80% AMI.
3. Credit score: over half without a credit score.
3. Increase in net revenue to host cooperatives.
1. Cooperatives served: six communities.
2. Average of 12% contributions to cooperatives’ net revenue.
3. Earned income strategy.
1. Home placement fee (two to three months’ lot rent) from co-op after co-op has
realized two to three months of occupancy.
2. Developer fee (charged to buyer)
ImpactResident-owned communities
25
Participating
Cooperatives (7 of 9)
NCF infill
Total lot
rent
Infill Revenue as
Share of Overall Revenue
NCF Home Placement ProgramLessons Learned - Benefits
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Broadened our vendor relationships
Helped us sharpen expectations and key project management milestones
Credibility with key stakeholders (co-ops, state housing finance agency,
lenders, funders)
Positioned us for additional program support
Renewal of $200,000 program line of credit
Strengthened underwriting on next resident ownership project
$250,000 program-related investment from local foundation
Source of additional earned income
NCF Home Placement ProgramLessons Learned – Challenges / Expectations
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1. Maintenance/repairs (during/after 18 months)
2. Management services
3. Homebuyer support
Background
• In 2008 CASA became a Certified Technical Assistance Provider under ROC USA.
• To date we have converted 12 parks to resident ownership
• We primarily serve very low income families
• Many of the homes are old and in poor condition
• Need to improve housing condition
What to Consider
• Program Development
• Financing Units
• Identifying Prospective Clients
• Coordination with Co-op’s
• Ordering and Placing Homes
• Counseling Buyers
• Marketing
Program Development
• Define the scope of the problem, create goals and objectives
• Analyze barriers
• Identify prospective clients
• Identify resources
• Close deals
• Collect data
• Determine how to fund ongoing operations of the program
Financing Units
• Identify potential resources for borrowers to purchase home
– For and Non Profit lenders with a single family loan product
– USDA RD 502 Program
– State Resources (AWHTC – lease program buys down cost by +/- $20K)
– IDA’s –DPA
– Energy Trust of Oregon - DPA
Identifying Prospective Clients
• Residents in Coop’s
– What is their appetite for a new home
– What aspects will improve that appetite (DPA, size, location, condition of existing home, etc)
– What is their ability to qualify for a loan
• Residents in NP Owned Parks
• Fee Simple
Working with the Co-op’s
• Identify which Coop’s have the most need and best opportunity
• Engage the Board for support of the program• Educate the Board on how the program works
– Meetings– Materials– FAQ’s– Contact info
• Have them spread the word to members of the Cooperative
• Coordinate on-site work with the Board building committee
Ordering and Placing Homes
• Working with either an intermediary or directly with the manufacturer
• Coordinating move
• Hiring a contractor to set the unit, to hook up utilities, and to install skirting, stairs and porches.
• Permits and inspections
Counseling Homebuyers
• Identify homebuyer barriers to buying a manufactured home (credit issues, limited income, size of family, etc.)
• Identify partners to counsel homebuyers
• Connecting homebuyer with partner
Pilots
• Bella Vista Estates Cooperative (Local and state resources)
• Umpqua Ranch Cooperative (USDA Rural Development 502 Program, Energy Trust of Oregon)
Contact Information
Lisa Rogers
(503) 687-3306
Sumiko Taylor-Hill
(503) 687-3319
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