With affordability at the forefront of issues in the housing market, a Democratic senator looks to crack down on owners of manufactured housing communities.
Sen. Maggie Hassan from New Hampshire sent letters to six corporate owners of these communities Tuesday, looking for clarity on affordability and living conditions for their residents.
Hassan, a ranking member of the Joint Economic Committee, sent the letters to Alden Global Capital (regarding its subsidiary Homes of America), Patriot Holdings, Philips International, Legacy Communities, the BoaVida Group and Sun Communities, all of which operate in New England.
"An estimated 22 million Americans live in manufactured homes, and in recent years, investment firms have increasingly purchased manufactured housing communities," Hassan wrote in the letters. "Given this impact on our economy, public reports of concerns with the management of some manufactured housing communities, and the pressing need to increase access to safe, reliable housing that people can afford, I seek more information on your business practices."
Reports of exploitative rent and neglected living conditions have risen with the increase in corporate ownership of these communities in recent years, the letters said.
Manufactured housing has been turned to as an
"Residents of manufactured housing communities include significant numbers of seniors, people with disabilities, low-income families, and people who live in rural areas," Hassan wrote. "In addition, residents often have limited ability to move; homes can be difficult to resell, and homeowners rarely relocate them because of the costs and risk of structural damage. Therefore, residents may have few if any options when faced with egregious rent increases, changes in lease terms, or other business decisions by community owners."
Residents of Yes! Communities, one of the largest owners of manufactured housing in the United States, signed a similar note sent to Brookfield Asset Management regarding its possible acquisition of Yes! Communities.
The note cited multiple issues related to rent hikes, maintenance and management within the communities across the Midwest. It asked Brookfield to commit to a set of standards if it purchases Yes! Communities, including: Capping home and lot rent increases at 3% per year, pledging not to impose any new fees or increase any existing fees and allowing residents to have window air conditioning units.
Rents in manufactured housing communities increased more than five times the pace of traditional apartment buildings, with some communities raising rent as much as 50%, Hassan wrote.
