Dec. 31, 2024 – Today marks my final day as CEO of ROC USA, a position I’ve been honored to serve in for 16-and-a-half years, and tomorrow marks the start of my full-time focus on Integrity Community Solutions, a new ROC USA subsidiary.
I am full of gratitude for everyone – co-op members and leaders, TA providers, ROC USA staff and Board, and myriad donors, lenders, partners and supporters – who has worked so hard over these years to produce true lasting change and impact. We’ve produced substantial growth from 2008 to 2024, in those 16 years going from:
- 89 co-ops to 338 co-ops
- 2 states (NH and MN) to 21 states
- 5,000 homesites to 23,000 homesites
- $0 delivered by ROC USA Capital to more than $450 million delivered
And along the way, seeing everyday cooperative leaders and Members demonstrating that co-op MHCs can be successful in all parts of the country, and producing site fees for Members that lag the market by $50 after just five years of ownership. That’s real savings that’s generating wealth through homeownership.
I was reminded again of the talent and dedication of co-op leaders from a Colorado co-op leader event that Thistle-ROC, a ROC USA Certified Technical Assistance Provider, held a few weeks ago. The last question, from Brendan Fennessy, Treasurer of the Sans Souci Cooperative in Boulder, was a perfect sunset question, “With your transition date nearing, what would you say you’re most proud of and what is your biggest disappointment?”
Most proud: The ROC Association’s 2013 incorporation and Membership in ROC USA, LLC. Their three seats on the Board are there by legal right and they are filled through elections among co-op Boards across three regions. That’s inclusive community development and there is nothing anyone can do to change it.
I am also proud of the growth of resident ownership. Demand for our services continues to outstrip our capacity, proving that homeowners in all parts of the U.S. want and are willing to work for the basic economic security at the core of resident ownership.
My biggest disappointment: The 2021 purchase of a nearly 100 MHC portfolio – about half of the “Frank and Dave” portfolio – that sold to a medium-size private equity firm in Maryland. The founder of that group has been in the MHC sector half as long as I, and he bought in one day – nearly 10,000 homesites – what took us a decade!
ROC USA was not big enough, well-resourced enough, or ready with sufficient strategies to address that opportunity. We do great work, but we need to be bigger, faster and deliver the resources that are priced right to meet motivated homeowners.
That portfolio was a kick in the pants. You’re seeing our response. A national ROC USA Direct team to fill out states where we had not had TA coverage before. A robust public policy and public resource push – starting with a new leader in Emily Thaden, my successor – to bring more affordable financing resources to the table for co-ops. And Integrity Community Solutions, the new subsidiary that I will be leading. ICS will buy and manage MHCs with high vacancy, expansion potential, and/or those being sold in portfolios. Our aim is to make them 100% owner-occupied and ready for co-op ownership. That’s my new charge!
Starting ICS is an aggressive move to accelerate the growth of resident ownership. If we are successful, within five years, ICS will:
- Secure 5,000 homesites
- Place 300 to 500 new factory-built homes
And within 10 years will have:
- Sold two dozen or so fully occupied communities to co-ops
- Followed our first Impact Equity Fund with a second Fund
In the parlance of NeighborWorks America’s Achieving Excellence in Community Development program, of which I am a graduate, I just “went public” on my goals for myself and for ICS. I am accountable to thousands of homeowners, hundreds of colleagues, and dozens of impact investors.
While ROC USA and regional TA Affiliates continue to build out the development services and public private partnerships we’ve become well-known for, ICS will also build future resident ownership opportunities, Engine A and Engine B, each stepping up to meet the market where it is and serve our shared mission.
I step over to ICS with so much gratitude in my heart, confidence in my head, and with the same beliefs I started with 36 years ago, when I first began working with homeowners in MHCs.
I have gratitude for the:
- Tens of thousands of past and present co-op Members who participate and/or lead and who have built this record of success in their communities. You are inspiring people across the country, me included!
- Hundreds of past and present staff and affiliate staff who have dedicated themselves to advancing this mission. This would not have been achieved without you!
- Donors, lenders and co-lenders who have empowered this mission with capital – actual dollars – on a belief in communities’ ability to manage themselves and their collective endeavor. You help low- and moderate-income communities compete with deep-pocketed investors, and win!
- Dozens of Board and committee volunteers who helped this nonprofit social venture achieve so much while faced with some wild economic and market conditions over the last 16 years. We launched ROC USA in 2008, just four months before the Great Recession after all. (At least my timing got better with age.)
I am confident that:
ROC USA is in solid hands. I mean it. The Board and its new CEO, Emily Thaden, along with a strong national team and nine strong affiliate teams will continue to evolve and meet the needs with their commitment and professionalism.
Here are my beliefs, which run deeper, but can succinctly be summed up as:
- Homeowners in communities are fully capable of owning and operating as co-ops. Their aligned interests as homeowners and shareholders (on the 1 Member / 1 Share / 1 Vote rule of co-ops) are the basis for coming together to solve even the most challenging elements of resident ownership. I have seen it repeatedly.
- Homeowners ought to own the land beneath their homes. For most people, homeownership goes hand in hand with land ownership, except in MHCs. Thank goodness for community owners who don’t take advantage of the power imbalance. Unfortunately, it’s on a case-by-case basis and it is a risk for homeowners. Resident ownership solves the insecurity permanently.
- There are professionals with deep and broad knowledge willing to dedicate all or some of their careers to purposes beyond making money. I love working with community-minded people!
- There are private and public lenders and grantors who will invest in communities as long as there is a responsible intermediary – a lender who acts like a lender – who will manage the lending. Your confidence is appreciated and never taken for granted.
Please don’t just stick around, please join me in stepping up! Consider increasing your commitment to resident ownership with a donation because together – ROC USA, ROC USA Capital, Affiliated TA Providers, ROC Association, and ICS – are all stepping it up!
Let’s accelerate the growth and impact of resident ownership together. ROC on! Paul
