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RFI: Standardized Community Agreement among Personal Property Lenders

Request for Information

Project: Standardized Community Agreement among Personal Property Lenders

Date Issued: November 25, 2024

Overview

ROC USA is seeking information from qualified third-party vendors or consultants (hereafter referred to as ‘consultant’) to support our efforts in building and improving access to sustainable home financing for homebuyers and homeowners in shared equity resident owned manufactured home communities (ROCs). The selected consultant will contribute to expanding access to personal property loan options for manufactured homes and RVs in ROCs.

Background

ROC USA supports a network of 337 ROCs, representing over 23,000 homeowners, across 21 states.  It is a national organization with eight state-wide affiliates with expertise in all aspects of manufactured housing, resident owned community finance and operation, and cooperative development.

ROC USA’s initial scan of home financing in ROCs indicates 63% of homes purchased are purchased with cash. With the exception of one-off local CU or bank personal property loans, home financing is unavailable in most markets.  Homebuyers cannot access financing and homeowners cannot sell homes for what they are worth in an ever-appreciating housing market.

ROCs offer a significant advantage to Personal Property Lender (PPLs) in that homeowner borrowers have a proprietary, perpetual lease for the lot they occupy and lot rents are stable, only increasing as necessary to cover community operating expenses. Rents in ROCs increase on average .09% per year compared to 7.9% per year in commercially-owned MHCs. The risk of lending on homes on leased land is greatly reduced.

ROC USA has determined that the keys to addressing the lack of a competitive home financing market in MHCs, and particularly in ROCs, is the lack a standardized  Community Agreement that addresses the needs of both Personal Property Lenders (PPLs) and community owners and the need for education and promotion of the “home-in-ROC” advantage.

Scope of Services

The consultant will work closely with ROC USA to achieve the following objectives across the target states:

  1. Research and Analysis. Conduct a landscape analysis of PPLs in the target states (Maine, Massachusetts, Vermont, Conn., RI, NY, Del., Penn., NC, Texas, Wisc., Minn., Montana, Utah, Colo., Idaho, Calif., Ore., and Washington State), including their lending criteria, policies, and current engagement with manufactured home communities. Review existing community agreements and lending frameworks to identify best practices and gaps.
  2. Stakeholder Engagement. Facilitate discussions with key stakeholders. Gather feedback on essential components of a standardized ROC Community Agreement that meets the needs of lenders and communities.
  3. Development of Standardized Community Agreement. Draft a standardized ROC Community Agreement that addresses lender concerns and places the fewest burdens on ROC Boards and budgets. Ensure the CA incorporates protections for homeowners, aligns with ROC USA’s mission, and mechanisms for conflict resolution and compliance. Include a framework for implementation.
  4. Pilot Implementation Strategy. Design a phased rollout plan for introducing the standardized Community Agreement in select communities within one or more of the target states. Develop guidelines for training and capacity-building among PPLs, ROC Board and community members, and ROC USA staff to ensure adoption.
  5. Feedback and Iteration. Conduct testing in collaboration with select communities and lenders. Collect data and feedback from stakeholders on the effectiveness and feasibility of the Community Agreement. Refine the agreement based on pilot outcomes and stakeholder input.
  6. PPL Market Development. Develop a roadmap for scaling the standardized Community Agreement among local and regional PPLs, including promotional materials on the strength of the ‘home-in-ROC’ PPL market, to expand the number lenders lending in ROCs.
  7. Performance Data. Incorporate the reporting of loan performance data to support scaling efforts and PPL demand for secondary market readiness.

Deliverables. As part of this effort, deliverables include the following:

  • Comprehensive landscape analysis report
  • Draft and final versions of the standardized Community Agreement
  • Pilot implementation strategy and training materials
  • Final roadmap outlining next steps for secondary market readiness
  • Final report detailing findings and feedback from stakeholders and pilot implementation, inventory of PPLs utilizing the standardized CA, inventory of products available to ROC homebuyers, and performance data reporting system for on-going development of data to support scaling.

Timeline

The consultant is expected to deliver services over the next 12 months, with an opportunity to extend the contract.

Submission Requirements

Interested consultants should provide the following information:

  1. Organizational Overview: Summary of relevant experience, particularly with home finance in the manufactured housing sector, particularly in resident owned communities. 
  2. Proposed Approach and Methodology: Outline your approach based on the scope of work listed above.
  3. Team Composition: Include the qualifications and roles of key personnel.
  4. Budget Estimate: Preliminary cost structure to achieve each milestone, or hourly rates pertaining to each classification or level of position.

Submission Deadline

Please submit your response by December 6, 2024.

Contact Information

Nicholas Salerno, Chief Operating Officer

ROC USA

6 Loudon Road, Suite 306, Concord, NH 03301

Phone. 603-513-2791

Email: nsalerno@rocusa.org