Mobile home owners are feeling trapped as firms invest billions - Business Insider

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Investors are pouring billions into US mobile home communities — but residents are feeling trapped by rising rents

Gaping holes spread out across her kitchen floor, and her living room wall, each large enough for a person to fit inside. Cabinets and wall fixtures sat detached in a bathroom where water jugs were lined next to the toilet in case the water went out. That's because although she owns the broken floor and torn-up bathroom, the land beneath her house belongs to the owners of her mobile home park, Colony Cove, on Florida's Gulf Coast.

So if the land rent rises, owners are faced with paying the higher rent or potentially abandoning their homes. Others complained about their water being shut off too frequently and drainage problems that caused areas to flood. And some said they had problems with sewage coming up through the drains in their homes.

"There are a lot of rules in the prospectus that aren't enforced all the time," resident David Burnham said. "And if you become quite vocal … you may be a target of starting to enforce some really petty rules that would get you evicted." Billionaire private equity heavyweight Sam Zell started ELS in the 1990s, becoming one of the first big private equity investors to invest substantially in manufactured housing.in an interview with Bloomberg TV

ELS has made clear in past financial statements that financing from Fannie Mae is important to its business. In a 2011 filing, the company says it received financing proceeds from Fannie Mae with terms that were relatively attractive compared to those available from other potential lenders, and if that changed, it might adversely affect cash flow.

"I mean, this is taxpayer money essentially that's standing behind this whole enterprise, and we want the benefits to be direct — not some notional possible trickle-down scenario," Rucker said.

 

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Actually these tenants have more control over this GREED than they know, especially today.

The GREED is INCREDIBLY out of control.

Very similar to homeowners association fees. You know it will increase without warning, but the prospect of home ownership clouds your judgment.

Cities are getting too congested. Can’t wait to move back to the country.

Are you using a photograph of Dharavi in Mumbai for effect? Because, if that’s America, it’s then a tourist spot.

Slum lords

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