1. Department of Housing and Community Development Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP).

2. Legal Authority MPRROP was formerly known as Mobilehome Park Resident Ownership Program. (MPROP). Assembly Bill 225, approved in September 2014, changed the name to the Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP). Mobilehome Rehabilitation was added to the program at that time.

3. Background MPRROP was authorized by the California Health and Safety Code Section 50780, Chapter 11 of Part 2, Division 31.

4. Purpose To protect low-income mobilehome park residents from both physical and economic displacement. To obtain a high level of private and other public financing for mobilehome park purchases. To encourage and facilitate the conversion of mobilehome parks to resident ownership or ownership by qualified nonprofit housing sponsors or by local public entities.

5. MPRROP Program Scope Provides financing for purchase of a mobilehome park by a resident organization, nonprofit housing sponsor, or local public agency. Provides financing for purchase by a low income resident of a share or space in a converted park.

6. MPRROP Program Scope MPRROP funds may be used by low income homeowners in need of repairs or accessibility upgrades in the form of low cost loans. These loans will be provided to a resident organization or qualified nonprofit sponsor when there has been a previously-funded MPROP loan, or there is a concurrent MPPROP application..

7. MPRROP Program Scope Loan terms up to 40 years for resident organizations and nonprofit housing sponsors. Regulatory Agreement is required for the term of the loan, no less than 30 years. Loan terms up to 40 years for individual homeowners. Loan to Value (LTV) ratio for resident organizations and nonprofit organizations is 115%.

8. January 2016 MPRROP NOFA Approximately $15 million available; a minimum of $3 million will be set aside for rural projects. Applications will be accepted on an over-the-counter basis starting March 2, 2016 through March 1, 2017. Maximum amount available to each eligible project is $3,500,000.

9. Eligible Applicants 1.An eligible applicant can be a: Resident Organization; Qualified Nonprofit Housing Sponsor; Local Public Entity. 2.An eligible applicant must be a legally recognized entity: Be able to enter into a contract; and Be capable of suing or being sued.

10. Applicant Eligibility Requirements: Resident Organizations 1.Be organized as a legally recognized entity. 2.Be able to submit Articles of Incorporation, Bylaws, and authorizing resolution to borrow MPRROP funds.

11. Applicant Eligibility Requirements: Nonprofit Housing Sponsor 1.Be able to submit Articles of Incorporation, Bylaws, and authorizing resolution to borrow MPRROP funds. 2.Has received tax exempt nonprofit status under Section 501(c)(3) or (4) of the Internal Revenue Code. 3.Demonstrate experience with development and operation of affordable housing.

12. Project Eligibility Requirements: Resident Organization 1.Site Control Site control means that you have obtained an enforceable right to use a parcel of land for the purpose of the project facility for the life of the project facility. This right must be given formally in writing Evidence of applicant’s site control is demonstrated by submission of one of the following: Executed purchase agreement; Fee title evidenced by a current Preliminary Title Report; Leasehold interest evidenced by copy of executed lease; An enforceable option to purchase or lease; An agreement with public agency.

13. Project Eligibility Requirements: Resident Organization (cont’d) 2.Two-thirds of park residents at application time must support the purchase by the resident organization, demonstrated by a Support Survey (survey provided in application). 3.If park is a subdivision or co-op and individual interests are being purchased, two-thirds of the residents must be buyers of their subdivided space or the co-op share. 4.Applicants for MPRROP funding in a subdivided mobile home park must submit a Bureau of Real Estate Final Subdivision Public Report with the HCD application.

14. Project Eligibility Requirements: Nonprofit Housing Sponsor 1.Site Control 2.At time of application, the Park must have a minimum occupancy of 30% low income households. This occupancy level must be maintained through the term of the MPPROP regulatory agreement. 3.Has formal arrangements for ensuring resident participation or input in the management of the park: Must ensure resident representation at formal ownership meetings by including a permanent resident(s) on the advisory board.

15. Non-Eligible Projects Parks currently owned by a local public entity are not eligible. Refinancing of existing long-term debt. Long-term debt is a loan term greater than three years. Purchase of mobilehomes.

16. Reasons for MPRROP Blanket 40- year Loans When a Resident Organization or Nonprofit Housing Sponsor owner needs to repay a short-term (bridge) conversion loan that does not exceed a three-year term. When a Resident Organization or Nonprofit Housing Sponsor will acquire a park. When a Resident Organization or Nonprofit Housing Sponsor will rehabilitate a park in conjunction with an acquisition.

17. Blanket Loan Terms 115% LTV based on an appraised value of the park submitted prior to award. MPRROP will take a junior position to a senior lender. Appraisal should include an “as-is” and “subject to completion” valuation when the acquisition includes rehabilitation. MPRROP financing and senior debt cannot exceed 115% Loan amount is determined by: Purchase price x 50% Costs x % of Low income residents. Repayment terms: maximum 40 year loan term with maximum 3% interest rate.

18. Blanket Loans Terms (cont’d) Minimum 30 year Regulatory Agreement. Principal and interest can be graduated or deferred in early years of loan if needed for project feasibility

19. Rehab Assistance Loans Rehab Assistance Loans: A loan made by the Department to resident organizations or qualified nonprofit housing sponsors that have previously received or been approved for a loan or loans for the purpose of acquisition or conversion of the mobile home park. Resident organization or nonprofit housing sponsor will then make a loan to the eligible individual homeowner.

20. Conversion – Predevelopment Loans Terms Provide short term financing for resident organizations, nonprofit housing sponsors, and public entities for conversion to another ownership structure. Eligible Costs Include: Park acquisition; Loan origination, appraisal, inspection fees, and other related financial costs; Title and escrow fees; Legal and other professional fees; Relocation costs; Park rehabilitation costs (infrastructure only).

21. Conversion Loan – Predevelopment Loan Terms (cont’d) 3 year maximum term at 3% simple interest per annum. Loans can have a flexible interest. Maximum loan amount is 50% of the conversion costs. Maximum loan-to-value ratio is 100%. Conversion financing and Senior debt cannot exceed 115%.

22. Individual Loans Terms Individual loans are made from the MPRROP award to low income residents for the purchase of their individual space. Both the mobilehome and the subdivided interest will be the Department’s collateral, and a lien will be placed on both as security for the loan. Typically, an award is applied for by resident organizations after the issuance of a Bureau of Real Estate Final Subdivision Report.

23. Individual Loan Terms (cont’d) Loan maximum is up to 50% of acquisition cost of the subdivided space (not including mobilehomes) Loan terms up to 40 years for individual homeowners.

24. Eligibility: Individual Loans Buyers can be one individual, more than one person, or a revocable living trust. Buyers must reside in the park at time of application and be a permanent resident. Buyer’s gross income cannot income cannot exceed the lower-income limits for the county where the park is located. Buyers must have title to the mobilehome. All names on the mobilehome title will be included for income qualification purposes. Irrevocable trust ownership is not a eligible for an individual MPRROP loan.

25. Financial Feasibility and Loan Security The application must demonstrate a financially feasible plan for park conversion. Carefully review the MPRROP Program Requirements in the NOFA, Regulations, and the Application.

26. Application Procedures One original copy and one copy of the completed MPRROP application can be submitted to the MPRROP Program between March 2, 2016 and March 1, 2017. Applications can be submitted in person or by mail to: Department of Housing and Community Development Division of Financial Assistance Mobilehome Park Rehabilitation and Resident Ownership Program P.O. Box 952054, Rm 650 Sacramento, CA 94252-2054 No applications will be accepted after 5:00p.m. on March 1, 2017 Application and authorizing resolutions must have original signatures

27. Application Review Applications will be reviewed in the order they are received. Initial HCD review will occur within 25 working days after receipt of the application. HCD will review application for completeness, and eligibility. Qualifying projects move forward to a feasibility review. Department will strive to schedule all recommended applications before an internal loan committee within 90 days after receiving the last review item.

28. Application Materials Application materials are available on the Department’s web site at http://www.hcd.ca.gov/fa/MPRROP http://www.hcd.ca.gov/fa/MPRROP For questions or assistance contact Conant Radcliffe conant.radcliffe@hcd.ca.gov (916) 263-1463

29. Questions?