:: ROP COMMUNITIES
Wharf Road Manor
2155 Wharf Road
Capitola, California
In January 2005, the residents of Wharf Road Manor, located at 2155 Wharf Road in Capitola, California became the owners of their mobilehome park. Residents were represented in all aspects of the transaction by Resident Owned Parks, Inc. (ROP), which served as their conversion consultant throughout the process.
In 2004, homeowners living at Wharf Road Manor, an all age park comprised of families with children, as well as seniors, became interested in gaining ownership of the mobilehome park where they had been renting spaces. There were many threats to local mobilehome rent control and horrendous rental increases had resulted in the neighboring City of Santa Cruz. The Wharf Road Manor Homeowners' Association, Inc. chose ROP to represent its interest in a possible purchase of the park. ROP was requested by the homeowners to pursue a nonprofit purchase of the park by ROP so that there would be fewer direct financial obligations on park residents. ROP successfully negotiated a purchase contract with the park owner a few weeks later.
ROP informed the Wharf Road Manor homeowners that it would pursue all available low interest loans and grants from state and local governments so that acquisition of the park would not be completely dependent upon bank commercial loans. During ROP's contacts with the City of Capitola, ROP determined that the city had up to $400,000 available as a grant toward purchase of the park, but that the grant could be made only if the residents were purchasing the park directly. Maurice Priest, President of ROP, immediately called a meeting with the Homeowners' Board and with homeowners and advised them of the availability of grant money from the city. ROP volunteered to assign its rights in the park purchase contract to the Wharf Road Manor Homeowners' Association so that the homeowners could take full advantage of the grant funds available from the City of Capitola.
ROP continued to represent the interests of homeowners as conversion consultant, arranging for due diligence inspections of the park common areas and preparing applications and gaining approval from the State Department of Housing and Community Development's MPROP loan program for a $1,000,000 loan at 3% for 30 years. The escrow for purchase of the park closed on January 31, 2005. Title to the park is held by the Wharf Road Manor Homeowners' Association, Inc., and each homeowner holds a share in the limited equity cooperative which holds title to the park.
