:: ROP COMMUNITIES
Sunny Oaks Mobile Park
1701 Los Osos Valley Road
Los Osos, California
ROP is also the nonprofit owner of Sunny Oaks Mobile Home Park, located at 1701 Los Osos Valley Road in Los Osos, California. The park is located midway between San Luis Obispo and Morro Bay. The entire eastern border of Sunny Oaks adjoins the Los Osos Oaks Preserve, a state park. ROP was contacted by the Sunny Oaks Mobile Home Park Residents' Association (SOMPRA) in 2004 for assistance in gaining ownership of the mobile home park. Property values in the Central Coast area have skyrocketed in recent years, and residents feared what might become of their space rents if the park were sold to a private investor. Within a few weeks following the initial meeting with residents, ROP had negotiated a purchase contact with the park owner whose family had originally developed Sunny Oaks Mobile Home Park in the mid-1960s. In gaining ownership of Sunny Oaks Mobile Home Park, ROP conferred with the San Luis Obispo County Housing Trust, the Housing Authority for the City of San Luis Obispo, and also with the San Luis Obispo County Board of Supervisors.
ROP was able to preserve Sunny Oaks as affordable housing by successfully obtaining resolutions from the San Luis Obispo County Board of Supervisors confirming that ROP's nonprofit acquisition of Sunny Oaks was, in fact, for the benefit of low income residents. The SLO county findings enabled ROP to obtain tax credits used by the financial institutions to reduce the interest rate available for purchase of the park. ROP was able to secure tax credits for the lenders, which enabled the loan for purchase of the park to be reduced from a commercial rate of approximately 8% down to 5.75% fully amortized for 25 years.
ROP was also able to secure tax benefits for the selling park owner, who was willing to carry back a portion of the purchase price in order to assist residents of the park. Escrow for purchase of the park closed on September 15, 2005. The adjusted space rents necessary for the nonprofit purchase of this park were $582 per month per space. The mobilehome park immediately adjacent to Sunny Oaks, is a park called Sea Oaks owned by Equity Lifestyle Properties, Inc. (ELS), operated by Sam Zell of Chicago, the largest mobilehome park owner in the United States. This “for profit” park owner has taken space rents in the park next door to $1,200 per month, and those homeowners have little chance of ever gaining ownership of their park and stabilizing rents and housing costs.
