If you live in a commercially owned community, your home – probably your largest asset – sits on someone else’s land. We think of that as half the American Dream. Without land ownership or at least a long-term lease, you rely on an outside landlord to:
- Maintain the roads, water, wastewater, drainage and electrical systems that serve your home;
- Keep your lot rent stable;
- Screen potential neighbors when they want to move in; and
- Operate your neighborhood as a manufactured home community and not sell or redevelop the land.
In a resident-owned community (ROC), those responsibilities lie with the Members and their democratically elected Board of Directors. Lot rents are generally stable in ROCs. Typically the rent increases at the time of purchase, but within three years, it is at or below the rents of nearby commercially owned communities. Without a profit margin in your rent, the ROC is able to fund the community’s mortgage, pay taxes, handle operating and costs, and save for future projects while still keeping rents stable.
In a ROC, a Membership Committee screens new applicants according to fair housing practices. Members sign perpetual leases, meaning they can live in the ROC as long as they choose so long as they pay rent and follow the rules.