1. An Enterprising Solution to Secure and Affordable Homeownership
NCSHA – Sept. 26, 2016
Resident Ownership:
An Enterprising Solution to Secure and Affordable Homeownership
Michael Sloss, Managing Director, ROC USA Capital
Miami Beach, Florida

2. Historical Context
80+/- year evolution from temporary/ recreational to permanent housing.

3. Historical Context

4. The Market Market Size: Ownership:
US: 50,000 Land Lease Communities in 49 states and 2.7MM home-sites
In Your State: We have a database of most, both suburban and rural.
Ownership:
3 REITs: ELS , SUN, UMH
500 Portfolio Owners with 5 or more Communities
1000s of traditional developer/owners
1,000 resident-owned communities (co-ops)

5. Resident Owned Communities (Co-ops)
Market-rate:
Predominantly in FLA
High co-op share values
Conventional commercial financing
Disaggregated local co-ops
Limited-equity (ROC USA Model):
14 states
Low share values
High LTV financing
Aggregation (scaled solutions) through Network and Association of ROCs

6. Cooperatives (co-ops)
1920s, bunch of small Chicago hardware stores got together because Big Boys were underpricing them
Formed a co-op for cheaper prices
Today, more than 4,000 stores independently owned, strengthened by national/regional
Training, Discount purchasing, Marketing
Everyone stand please

7. Make resident ownership viable and successful.
Opportunity
Expert Assistance
Network of local Technical Assistance Providers
Facilitate purchase process
Informed democratic choice by homeowners
Financing
Forgivable loan for legal, engineering and appraisal
Timely purchase and rehab financing
Goal: “Just like a sale to any 3rd party buyer.”

9. Results to date 2006 NH Study: Expert Assistance – ROC USA Network:
Comparable house prices +16%
Homes in ROCs sold faster
Rents lagged the market
2016 National ROC Study:
After 5 years of ownership, rents are at market to as much as 17% below market (7 ROCs)
>$2.1MM capital investment
Disciplined financial management with reserves and audits/reviews
Expert Assistance – ROC USA Network:
190 ROCs with 11,000+ homes in 14 states
8 affiliated nonprofit TA Providers
Financing:
ROC USA Capital: $130MM
HFA Co-lenders like MN, NY, VT, WA,WI: $32.3MM, 1,433 homes
Total financing in sector since mid-2008: $220MM

10. Make resident ownership viable and successful.
Support success:
Locally owned:
Empowered, engaged owners/members
Regionally & Nationally Strengthened:
Peer-to-peer connections in person and online
On-site and regional training and coaching
Regional & national leadership development
In state system development
National ROC marketing program
Online community center – myROCUSA.org
Home financing
“We succeed when our communities succeed.”

11. “Frankly, we can’t come up with any reason why a community owner would not want to sell to the residents over an outside party.”
Frank Rolfe
MH Journal
Jan. 2016

12. Our Work With HFAs to Date
New York- Subordinate Debt:
7 ROCs, 678 Homes Preserved
$25.8 MM Combined Financing
10 yr. term, 30 yr. amortization
2.0% yield to HFA
C. Minnesota - Sr. Participation:
3 ROCs, 227 Homes Preserved
$7.5 MM Combined Financing,
10,15 yr. term, 30 yr. amortization
5.0% yield to HFA
B. Wash.- Sr. & Pari Passu Participation
8 ROCs, 430 Homes Preserved
$15.8 MM Combined Financing
10-yr. term, 30 yr. amortization
2.0% yield to HFA
D. Wisc. & Vt. – Sr. Participation:
1 each, 98 Homes Preserved
$5.0 MM Combined Financing
4.25% - 5.0% yield to HFA

13. Partner with ROC USA Capital
Michael Sloss Managing Director ROC USA Capital 6 Loudon Road, Suite 501 Concord, NH Tel.: (603)