Perspectus change

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Putts
Posts: 3
Joined: Sat Oct 27, 2012 7:52 pm

Perspectus change

Post by Putts » Sat Oct 27, 2012 8:04 pm

I live in a mobile home park in which there are 3 seperate parks.Each has it's own perspectus. Since 2010 the owners have tried to get us to combine all three parks under the guise of building a new clubhouse. FL statutes say they can buid the clubhouse without our permission but they are insiting they neeed to change the prospectus in order to legally have receprocity to use the amenities. Two lawyers told us not to sign the agreement.... So far many of us do not want our prospectus changed for we fear that will open the door for management.There has been so much pressure to get signatures to change the prospectus that we think there may be another motive for their wanting this so badly. Any ideas?

David Oxhandler
Posts: 1459
Joined: Tue Oct 02, 2007 8:37 am

Re: Perspectus change

Post by David Oxhandler » Sun Oct 28, 2012 9:13 am

Every park owner in Florida with over 25 spaces is required to publish, maintain and periodicity update a perspectus. Every qualifying park owner is also required to recognize a residents association. It sounds like it is time to have a combined meeting of the three resident associations to decide what is in the residents best interests and a course of action to follow.

There could be several very good business reasons why the owners want to combine their holdings into one property and operation. I can only imagine that triplicate efforts at licencing, annual state business registrations, accounting, perspicuous updates, plus state and federal tax returns etc etc etc.... must be getting expensive.


What reasons did those two lawyers give you to not to sign the agreement? Did anyone ask the lawyers if it possible that combining the properties could have the effect of streamlining the operations and lowering management costs?... and will those savings be passed back to the residents?


Keep us posted.
David Oxhandler
[email protected]

Putts
Posts: 3
Joined: Sat Oct 27, 2012 7:52 pm

Re: Perspectus change

Post by Putts » Sun Oct 28, 2012 6:18 pm

Thank you David for your reply.
I wish it were as easy as getting the 3 associations together but there are not 3 associations... The orignally HOA did not incororporate correctly and have been representing all three parks for years. This HOA signed the agreement to change our perspectus and to build the clubhouse... A resident team has gotten involved and challenged the validity of the HOA's actions... and their validity as well. As it stands now the agreement is null and void and the HOA is not valid. They are now Defacto until Jan when the HOA for park 1 will vote for a new HOA. Because of this and the need to get owners agreement for a new clubhouse.... 3 committees ( 1 for each park) will be formed and they will get the 50% +1 signatures needed to ok the clubhouse. After Jan there will be the HOA for park 1 and a committee for each of park 2 and park 3. A 90 day notice is due to go out very soon.
In 2010 the lawyer for the HOA the told them not to sign the agreement as it had nothing for the residents but everything for the owners... the language was vague and misleading and the real reason for the clubouse was to make 1 park and change the perspectus. There was the feeling that once the pespectus was changed the owner had an open field to make alot more unwanted changes.
This time one of the Board members took it to her personal attorney who advised her to not sign it... unfortunatley the HOA did not take it to their attorney but signed it.THe agreement also stated there would be no loss of amenities... which is not true but the owners said they were spendng 3 mil for the clubhouse so they wouldn't allow a reduction in rent..
Needless to say this has been a nightmare! The park is split,tempers have flared and it is not a very pleasant place in which to live.
NOw the push is on again... if you don,t OK this by Dec we will scrap the clubhouse... in 2010 it was if you don't agree we will take the money and invest in another park.
Now there are 3 attorneys... 1 for the park, 1 for the HOA and 1 for the residents group. Even the one attorney is questioning whey they want this so badly.
Sorry this is long but now you know why others are questioning this.
Thanks for your interest.

David Oxhandler
Posts: 1459
Joined: Tue Oct 02, 2007 8:37 am

Re: Perspectus change

Post by David Oxhandler » Sun Oct 28, 2012 10:17 pm

Community politics can strain the tranquility of any neighborhood. All of the residents have a common interest, maintaining or increasing the value of their homes. Adding any major amenity to a park benefits the home owners by making their home more desirable.

If rents will remain stable What is the objection?
David Oxhandler
[email protected]

Putts
Posts: 3
Joined: Sat Oct 27, 2012 7:52 pm

Re: Perspectus change

Post by Putts » Mon Oct 29, 2012 7:32 am

True, but our rents have just been increased.

I am wondering and I don't know the answer.. How long can a negotiating committee remain in power?

I guess some of the concerns are that the infrastructure of the park is poor and putting a 3 mil clubhouse is not going to help that.

Since the 3 parks are incorporated seperately residents from one park are afraid they will be assessed for another parks repairs once the three parks are made into one park. Park 1 has sewers... Park 2 and 3 do not and will need them put in.... Park 1 residents don't want to pay for them as they had to pay for their own. Do capitol improvements have to be made by the owner or can the residents be assessed?

So many questions.... and such vague answers. We don't want to have to move after the clubhouse is put in becasue we can't afford the repairs.. so many live on a fixed income.

Thanks you have been very helpful.

David Oxhandler
Posts: 1459
Joined: Tue Oct 02, 2007 8:37 am

Re: Perspectus change

Post by David Oxhandler » Mon Oct 29, 2012 10:33 am

In today's economic environment, many people are asking themselves not just how they will make their dollars go further but how they can control to spike in the living costs and just maintain what they have.

Park owners have no tax assessment powers and local government has no obligation to maintain private property. Improvements have to be made by the owner. The park, its roads and other infrastructure are private property. The owners have no way to recover expenses except to raise the lot rent.

Rent is controlled in Florida parks. If there has been a recent increase the landlord had to show increased costs for operating the park. Considering the incredible jump in the cost of everything from gas to canned soup over the past several years it would be unrealistic to expect lot rent to remain stable. Most Florida parks have been granted higher rates in recent years that did not add anything to profits.


This additional expense would be felt if you lived just about anyplace in America. Housing expenses — which include rent or mortgage payments as well as the cost of utilities, property taxes, insurance, and maintenance has grown at a pace that far outstripped growth in median income. Among homeowners, housing expenses increased by 66 percent over the 1996 to 2006 period, while incomes grew by about 36 percent. That was before the current recession, which has pushed home-ownership costs even higher..

Many essential components of the park have a lifespan. These major capital expenses can be deferred, but not indefinitely. When you live in a land lease community you only directly see the increased cost of your home unit. The park owners shoulder the additional expenses tied to the land.

In the six-year period from 1998 to 2004, many of the costs of owning and operating a multifamily property rose more than the consumer price index (CPI). Compared to a rise in the CPI of just under 16 percent, the average cost of insurance rose 97 percent, taxes rose 25 percent, marketing costs increased by more than 25 percent, and administration costs went up nearly 34 percent.
Utility costs have gone up and substantial increases are expected due to rising fuel costs.

You are not alone. You are experiencing what most Americans are today. Over the last decade, all the major categories of homeowner expenses increased faster than incomes.

The term of the negotiating committee is up to the HOA that appointed or elected them. Avoiding any rent increases is probably not possible without neglecting critical maintenance. Residents and management have broad areas of mutual interests in maintaining the community's desirably. The best hope for all is for genuine negotiations with an eye on maintaining the life style and minimizing additional costs.
David Oxhandler
[email protected]

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