Photo / Courtesy, Genesis
Liza Fleming-Ives, Genesis
Updated: October 31, 2024
Deal for Brunswick mobile home park is first of its kind under new Maine law
Photo / Courtesy, Genesis
Members of of the Blueberry Fields Cooperative in the offices of Drummond & Drummond the morning the co-op residents closed on purchase. From left: Bonnie Zacharias, Maranda Chung, Zach Walker, Janet Fournier, Tom Benoit, Celeste Yakawonis.
It's said to be the first real estate deal of its kind under a new Maine law.
The residents of Linnhaven Mobile Home Park rallied to buy their 278-home community for $26.3 million, taking advantage of a state law that went into effect in 2023. The statute requires park owners to notify residents when their properties are put up for sale.
As an increasing number of out-of-state investors purchase mobile home parks in Maine and threaten the affordability of many residences, the state, the town of Brunswick, cooperative developers and lenders including Brunswick-based Genesis all came to the aid of the families, seniors and veterans that call the park home.
“This is a powerful example of how community lenders can assist residents across rural Maine in overcoming barriers to affordable homeownership and affordable rental options," said Liza Fleming-Ives, executive director of the nonprofit Genesis.
"Genesis is delighted that we could guide determined residents and work alongside fellow lenders and community partners to preserve this critical type of affordable housing and empower a resident community.”
The total financed was $27.86 million, which covered the cost of the purchase and upgrades to the community’s septic and water infrastructure.
Photo / Courtesy, M&T Bank
Phil Cohen is M&T Bank's regional president for Maine.
“We are proud to have participated in financing this important project, without which the homes of 277 families would have been greatly jeopardized," said Phil Cohen, Maine market president for M&T Bank.
"Affordable housing is a critical issue across the state that will only be fully addressed through innovative projects like this one. We are excited about the future of Linnhaven under the new Blueberry Fields Cooperative and are grateful to Gov. [Janet] Mills for her leadership, and to MaineHousing and the Genesis Community Loan Fund for the wonderful collaboration and partnership.”
How the deal came together
When the residents learned in March that their park was going up for sale, they sought the help of the Cooperative Development Institute to organize and form a cooperative that would allow them to purchase and manage the community together. They formed the Blueberry Fields Cooperative and negotiated a purchase price with the private owners of the park. The owners accepted their offer in June.
Under the law passed in 2023, LD 1931/HP 1239, residents have 90 days after an owner’s notice to secure the funds to purchase the community.
MaineHousing created a financing package that includes a $20.6 million loan and a $3.2 million grant from the newly created Mobile Home Community Preservation Fund that Gov. Janet Mills and the Maine Legislature approved in the state budget.
Support from Genesis, M&T Bank and the town of Brunswick helped solidify the deal. The co-op worked with attorneys from Portland-based Drummond & Drummond through the transaction.
The purchase makes the Blueberry Fields Cooperative the largest manufactured home cooperative in Maine and models a hopeful path forward for other manufactured home communities in the state.
“The day that we voted to become a resident-owned community, the members all gathered at the local high school cafeteria to cast their votes. As the votes were being counted, the members began banging on the tables in support,” said Janet Fournier, board president and member of the Blueberry Fields Cooperative.
“When I shouted that the vote was unanimous with 187 voting yes, the roar was deafening. We did it!”
Photo / Courtesy, Genesis
Residents and board members at the newly formed Blueberry Fields Cooperative celebrated with cake.
Fournier added: “CDI has guided us through every step of this challenging process, always with competence, clear direction, diplomacy, and kindness. We couldn’t have done this without the support of our residents, the Scarponi family, the town of Brunswick, our state Rep. Poppy Arford, Carol O’Donnell, the folks at Maine Housing and Genesis and Gov. Janet Mills. Our purchase of this property provides a long-term benefit for the lives of more than 275 residents who currently are tenants, but equally important, those who will live in the cooperative long after we’re gone.”
Mills added: “This is exactly the type of project that we envisioned when we created the Mobile Home Park Preservation Fund and the Opportunity to Purchase law, and I am so glad to see it work.”
“Because of the foresight of the Maine Legislature and Gov. Mills and the work of our partners at Genesis and CDI, we were able to bring together the financial resources needed to help preserve a large number of affordable homes for a relatively low cost,” said MaineHousing Director Dan Brennan.
The Cooperative Development Institute, which has spent the last year helping Linnhaven residents navigate the co-op development and property purchase process, will continue to support residents as they manage their cooperative and run their community.
Nora Gosselin, market development and acquisitions specialist of CDI’s New England Resident-Owned Communities Program, said the deal was the result of months of meetings.
"We met multiple times a week for months to go through this enormous undertaking. Through their hard work, on top of already busy lives, they are setting an important precedent for affordable housing in Maine. It was an honor to work with them," she said.
The town of Brunswick contributed $800,000 in grants, ensuring that the transaction could move forward smoothly.
Most Recent
Most Recent
0 Comments