EDITORIAL: Weak Michigan Mobile Home Laws Need To Be Fixed
The following editorial by the Traverse City Record-Eagle posted by the Daily Press examines the unsettling of mobile home residents as private equity firms and REITS gobble up mobile home parks, followed by escalating rents in the state of Michigan, although this same story is being played out across the country.
Michigan has more than 1,200 mobile home parks, with at least a dozen of them in the Traverse City area.
Some locations in the Traverse City area advertise rates starting at $300 a month for senior citizens.
Given the high demand for housing in desirable locations, these communities are the ideal choice for many residents. But that might not be the case for much longer if the state Legislature doesn’t do something to ensure it.
Simply put, the residents who own manufactured homes and rent the land where their homes sit are literally sitting ducks.
On July 19, Bridge Michigan reported accounts on the eastern side of the state where private equity firms have purchased mobile home parks and jacked up the rents. The mobile homeowners had three choices: find the money to pay the higher rent, move their mobile homes to other locations (which would cost thousands of dollars they don’t have), or abandon their homes altogether.
Grand Traverse County Equalization Director James Baker said he is aware of situations where this has occurred in the Grand Rapids area, where the mobile home would have to be abandoned by the owner.
The firm would then take possession of the home and rent it to someone else.
These situations may not be happening on a large scale here – at least not yet. But given the weak laws in Michigan regarding mobile home parks – laws that haven’t been updated since 1987 – we believe it’s only a matter of time.
And without state legislation to remove the economic incentives for private equity firms to come in and snap up mobile home parks and jack up the rates, these residents will continue to be vulnerable.
Last year, state Rep. John Cherry, D-Flint, co-sponsored legislation that proposed altering leasing and licensing requirements for property owners and addressed issues regarding titles to abandoned homes in mobile home parks, requiring compensation to the mobile homeowners for the value of their property.
The proposed legislation would require year-long leases or rental agreements, so landlords couldn’t suddenly make changes and the creation of a database of mobile home park owners with their licensing and contract information.
And the prognosis for this proposed legislation is not good since the Michigan Manufactured Housing Association, which represents industry leaders in the state, pulled its support.
Perhaps, in the short term, the best solution would be this: Approve a straightforward bill to simply protect existing homeowners from sudden increases in rent and fees after their mobile home park is sold to a new owner.
That sounds like a sensible approach. So keep the solution simple, senators, and get it done without further delay.
