MARIN VALLEY

1. MARIN VALLEY

2. MARIN VALLEYResidents A resident’s evaluation of the Marin Valley Title Transfer

3. MARIN VALLEY A PLACE FOR ALL SENIORS TO AFFORD AND ENJOY An honest and inexpensive approach to the Marin Valley Title Transfer PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THIS PRESENTATION Submitted by James W Harais 63 Marin Valley Dr.

4. THREE REASONS FOR THISPRESENTATION FOR PARK PURCHASE Ownership- who would own and hold shares and who would hold title to Marin Valley. • Trust- of the governing bodies of the Park and Security- for the Residents of Marin Valley • Reduction of and equalization of rents- payoff of the current bonds, maintenance operating fees for the Park.

5. A BRIEF PARK HISTORY “Those who cannot remember and learn from the past are condemned to repeat it .” • poet and philosopher George Santayana

6. Residents & Joint Powers • 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 provide and maintain affordable housing for low-income seniors. • 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 monthly payments called rents. $28.00 month X 12 months = $336.00. • The primary mandate from the beginning of this purchase was to include all residents and keep home owner monthly payments as low as possible, while guaranteeing payment of the bonds and good maintenance of the Park.

7. PARK ACQUISITION CORPORATION • PAC was formed by the residents to voice and to facilitate the purchase of the Park for the residents. • PAC had been established for many years, waiting for the owner to sell. • PAC was incorporated to accommodate a first rite of refusal, should the Park be placed for sale by the owner, Mr. Paul Said. • 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 bond insurers, to guarantee the purchase of bonds for the purchase. • PAC did this to avoid the Park being purchased by another buyer, such as a REIT (Real Estate Investment Trust).

8. Novato Financing Authority • NFA was formed, as required by the bond insurers, to take and hold the title to the Marin Valley Mobile Home Park. • NFA was the governing body as a make up of City of Novato and the State Redevelopment Agency. • NFA was created to provide for the financing, refinancing, acquiring, planning, undertaking, advancing, constructing, improving, developing, maintaining, and operating land on which privately owned mobile homes are located.

9. PARK ACQUISITION CORPORATION • PAC was then assigned, by delegation agreement of the NFA, the responsibility of overseeing the Park . • Stability security and control of Park functions. • Hiring a Professional Park Manager • Creating Park budgets and making sure they are met. • Forming short and long term plans. • PAC’s primary function, under the delegation agreement, was not to insist on the transfer of the Park until such time as Marin Valley’s fiscal responsibilities were met. Marin Valley has not paid their primary bonds, yet.

10. SEVERAL RESIDENT TITLE TRANSFERS WERE TRIED • After the Park was acquired and placed with the Joint Powers NFA, several transfers were tried with little resident input. • The first, was to sell the Park asset and title to LINK, a public benefit park corporation 501c3. This was soundly defeated by the residents • Then, a 501c3 (MVSC) was established, at a cost of over $100,000.00 of Park funds, to transfer the title of Marin Valley. As the MVSC bylaws do not offer total resident control and no resident would own nor share in the ownership of the Park, it is not likely to be accepted by the residents or the City of Novato.

11. PARK TITLE TRANSFER TO THE CITY OF NOVATO • The State Redevelopment Agencies across the State are now required to transfer funds and sell assets. • To avoid the forced sale of the Park, the NFA transferred the title of Marin Valley to the City of Novato. • 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 studies and retrofit construction, which will ultimately increase costs. • The Marin Valley residents are becoming concerned with this new structure, which may now limit the full participation of PAC and the residents.

12. RESIDENT FEARS • The major fear of the residents is that the City of Novato will sell the Park. • The density of the Park would be increased by adding multi- dwelling low- income structures in the Park, decreasing the quality of life of the residents. • The rents, utilities and City required Park repairs would be increased to the point that the residents could no longer afford to live here. • The residents would loose their mobile home investment and an affordable low- income place to live.

13. FEARS • The residents would be subject to a dominating board and have no vote or means of recourse. • A major fear of the residents is that they will have no say or input in how the Park will be run. • Increase of the Park by adding additional costs to the Park decreasing their quality of life.

14. CURRENT PARK RENTS- LET’S LOOK AT NUMBERS • Rents in Marin Valley vary from$475.00 to $950.00. • Using the average rent, about $625.00 per month and about 45% of this rent goes to maintain the Park infra-structure. The balance is used to pay the bonds. • 45% of $625=$281.25 which is the Park maintenance costs. • $625-$281.25=$343.75 is bond payment. • $475-$281.25=$193.75 is bond payment. • $950-$281.25=$668.75 is bond payment • IS IT FAIR OR RIGHT THAT WE PAY UNEQUALLY ON A LOAN OR BOND? Marin Valley has not paid off their primary bonds yet.

15. TRANSFER FROM NOVATO • There are many ways the title could be transferred but the two most likely are as follows: • A transfer of title to a 501c3 (a public corporation) will result in residents not owning nor controlling Marin Valley. • All residents now have a share in (a mutual benefit corporation) which could hold title. This is PAC. • PAC (which we have already) or some MUTUAL BENEFIT CORPORATION, with proper safeguards and oversight, should receive the title to Marin Valley. • A mutual benefit corporation allows the residents to own the asset by shares and if done properly, would add value to each resident.

16. HOW COULD THE TRANSFER BE DONE? • A conventional loan may have to be applied and would, most likely, be at a rate on or near 5.25%. • The rents would, most likely, go up slightly, or at least stay the same, for a long time- 15 to 30 years. • 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. • Not all the money would come from MPROP. Other financing or grants may be required.

17. Mobilehome Park Resident Ownership Program (MPROP) Links to program publications are shown following the program description. PURPOSE Finance the preservation of affordable mobilehome parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies. ASSISTANCE TYPE Loans TERMS Short-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.

18. ELIGIBLE ACTIVITIES Purchase (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 APPLICANTS Mobilehome 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.

19. REMEMBER OUR RENTS • We all, as residents who pay rent, now pay for the bonds- $10,000,000. • $625-$281.25=$343.75 is bond payment. • $475-$281.25=$193.75 is bond payment. • $950-$281.25=$668.75 is bond payment

20. THE WAY IT SHOULD BE DONE? • Another way, is to individually finance, by loan, 315 shares at a rate of 3% from MPROP (Department of Housing and Community Development). • We currently pay 5.25% on the bonds. • Assume $10,000,000.00 in bond pay off plus $1,000,000.00 closing, transfer and legal fees, etc., divided by 315 spaces. $11,000,000.00 / 315 = $34,920.00 required from each space to fund the transfer. $1,000,000.00 could come from existing (already required) hold back funds (buckets). • Many low income residentswould immediately say they 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.

21. HOW COULD MY RENT GO DOWN AND STILL BUY THE PARK? • The average rent is about $625.00 per month and about 45% of this rent goes to maintain the Park infra-structure. The balance is used to pay the bonds. • 45% of $625.00=$281.25 Park Maintenance fee. • $625.00-$281.25=$343.75 monthly bond payment • Monthly payment on new loan is $140. 23. • $281.25 + $140.23= $421.48 monthly rent. • Rent saved is $625.00-$421.48=$203.52

22. WHAT IF I DON’T WANT TO PARTICIPATE? • A resident would not be required to participate. • Their rent would continue at the current rate until the mobile home is sold. • The Corporation would fund the difference by conventional loan or group MPROP loan. • This would not be very long as the Park turns over about 20% of its homes a year. • The new purchaser would be required to pay their share up front as part of the sale or purchase of their mobile home.

23. HOW LONG WOULD IT TAKE? • An escrow account would be set up. • Those residents who wished to participate would enter funds into this account. • The Corporation would fund the difference by conventional loan or group MPROP loan and deposit funds to the escrow account for those who don’t wish to participate. • Any new purchaser would be required to pay their share up front into the escrow account. • This escrow would hold until enough monies are acquired to pay off the bonds and the transfer would be made. • This has been done in other California locations (Santa Cruz) with great success.

24. BACK TO TRUST • “Democracy Is Messy. It is so much easier to just limit input and legislate what others may perceive is in our best interest.” Nicholas D. Kristof New York Times • The following is a way of protecting the integrity and trust in the Park and its new resident governments. • It gives the residents recourse for grievance and no one board dominance over the Park. • All boards would have equal votes, term limits for each board and board votes would also be subject to resident vote.

25. HOW WOULD THE PARK BE GOVERNED? PAC HOL 501c3 non profit MARVEL Outside Park Management

26. PAC OR THE MUTUAL CORP. • The Mutual Benefit Corporation (PAC) would hold title and each residence would have an equal share of the corporation and an equal vote. • PAC would only have a single vote in the mutual governmental bodies. • PAC would vote on budgets, oversee the operations and Park finances.

27. A 501c3 NON PROFIT • The 501c3 would not hold title to the Park. PAC and the residents would. The 501c3 would only operate the Park. • A 501c3 Non Profit would operate the Park. It would gather information and budget requests from the other organizations, obtain bids for repairs and oversee the outside Park manager. • There are definite tax advantages of the Park being run by a 501c3 public corporation. • The 501c3 would have PAC, HOL, Marvel as auditors, as well as outside auditors, of its operations. It would consist of residents and outside business to consult on its board. • The 501c3 could not do anything outside its budget unless approved by all the other boards’ votes.

28. HOME OWNERS LEAGUE HOL • The HOL would be the resident’s input organization and would have an equal vote. • HOL would protect the resident’s rights and opinions in the Park. • HOL would submit its own budget, vote on all budgets, and have input to the operations and Park finances. • HOL would make resident suggestions for Park improvements and Park maintenance and repairs.

29. MARVEL • MARVEL would be the entertainment arm of the Park. • It would create its own budget and submit it for vote with the other Park budgets. • MARVEL would also have an equal vote with all the other boards. • MARVEL would control the rental use and operation of the club house, and secure insurance for all uses by the residents and outside organizations, such as: Lyons, Sirs, and other service clubs, resident parties and hobby clubs. • All rules and regulations would be voted on by the other boards and residents.

30. OUTSIDE MANAGEMENT COMPANY • The outside management company would be overseen by the 501c3 non profit and the other boards, but would only answer to the 501c3. • It would run the day to day operations in the Park, make repairs and answer resident questions. • It would bring all Park and resident problems to the 501c3 oversight board. • The Management company would not have a vote.

31. MARIN VALLEY A PLACE FOR ALL SENIORS TO AFFORD AND ENJOY I will entertain questions at this time Submitted by James W Harais 63 Marin Valley Dr.

32. MARIN VALLEYNOW WE ASK YOU ON THE COMMITTEE - WHERE DO WE GO FROM HERE AND WHAT HAPPENS NEXT? Submitted by James W Harais 63 Marin Valley Dr.

33. MARIN VALLEY A PLACE FOR ALL SENIORS TO AFFORD AND ENJOY An honest and inexpensive approach to the Marin Valley Title Transfer Submitted by James W Harais 63 Marin Valley Dr.