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Hammock Estates Residents Assume Ownership

Bill Rettew Jr./Highlands Today

Ron VanHouten prepares to post signs at Hammock Estates, a 112 house mobile home park, which state, “Resident Owned Community.” Homeowners bought the land their homes sit on, rather than continue to rent, and inturn, earned some peace of mind.

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By Bill Rettew Jr. | Highlands Today

Published: February 21, 2008

Updated: 02/21/2008 07:00 pm

SEBRING — Those beaming smiles made by a group of new land owners on Thursday were contagious, just a day prior to the group's land purchase at mobile home park Hammock Estates.

Until today's property settlement, 112 mobile home owners rented the land their homes sit on. A non-profit cooperative was formed, and for $3.1 million, the ground each home sits on is now collectively owned by residents.

Ron VanHouten spearheaded a two-month drive to organize, after the park's property owner since 1973 made an offhand remark about selling the whole park during rent negotiations.

"We bought the whole kit-and-caboodle," said VanHouten. "The only voice we had before was to complain."

Joyce Chapman was on hand, with about two dozen of Highlands County's newest land owners on Thursday, to post new signs at the park entrance which read, "Resident Owned Community."

"We are in charge of our own destiny," said Chapman. "We will make the decisions."

Rent costs home owners $226 a month. Fifty-four new property owners – of 112 home owners overall – will now instead pay an $85 per maintenance fee and each seize control of an individual 99-year lease.

The co-op will charge those who continue to rent a $276 monthly fee starting next year. As a group, the co-op borrowed about $2 million. VanHouten is excited to cut his tax bill and anticipates earning an $800 homestead tax exemption.

Jack Fitzgerald said he made a sound business decision to buy in at $28,500 for a share.

"I had the money in a CD, making 5 percent interest, and had the chance to make 5 percent profit on my land value," said Fitzgerald.

Local banker Mark Martin, vice president of business services of MIDFLORIDA Federal Credit Union, with corporate offices in Sebring, was pleased to work with some of the new land owners.

"Established parks that historically provide good, steady cash flow usually make for good loans," said Martin. "But the greatest advantage is the owners have a say and control the destiny for the direction of the park – it gives them a greater comfort zone."

About 500 manufactured home communities in Florida are resident owned. There are about 85 similar communities in Highlands County.

Most parks share more than common street addresses. Most parks serve as community social centers with regular activities ranging from pot luck suppers to bingo and shuffle board tournaments, and Hammock Estates is no exception.

New property owner Jerry Epson was pleased that he'll continue to see his friends and neighbors in the park.

"It's like a big family, said Epson. "And it's a lot better than it is with your relatives."

Janet Feldt was smiling when she agreed with Epson concerning the park's family atmosphere. "We all look out for each other."

Rick Ingler is president of District 6 of the Federation of Manufactured Homeowners.
A group of homeowners needs to prepare in advance of a sale and buy-out, said Ingler.

"Typically you only get one shot,'' said Ingler. "Don't believe it if you've got a park owner who says he will never sell. He could get run over by semi tomorrow and his heirs will say they want to sell."

Ingler cautioned residents about prospective owners who buy and then resell whole parks at a profit who are known as "park flippers."

Most park flippers purchase parks rather than convert the land to golf course fairways or shopping malls to collect rents, but often raise those rents.

"Park flippers are the worst people in the world to people on a fixed income," said Ingler.

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