First Mobile Home Park and Now we are in trouble w/ city (Help)

First Mobile Home Park and Now we are in trouble w/ city (Help)

Real Estate Agent · Houston, TX · Member since 2018 · 6 posts · 2 votes

My partners and I bought back in Dec 2020 a 9 unit Mobile Home Park in Heflin AL. We are from Texas and this was our first time buying out of state. We called the city to ask questions about selling with financing and renting lots. All seemed fine. We bought the park unrepresented and the seller had a broker who draws the commercial purchase agreement. We contacted the city multiple times for help and got a business license and specified we were going to rent the lots. Fast forward to now, we have sold 7 MH as-is. Each owner has a note and pays a lot of rent. They all got permits to get power and turn on utilities and so forth. 

Now we were in the process of helping the owner of MH #7 and we found out from our electrician that the city is not going to provide us ANY MORE PERMITS because we are not in compliance.  

Nobody ever communicated with us, so we immediately call the city and after 5 days we get a call back from the Mayor. He said the land was R1 and that the homes were not grandfathered in. He gave us two options: Move the mobile homes out (which is practically impossible we have families living there) or comply with these requirements and do a petition to change the zoning in the area.  

I argued we spoke multiple times with staff members at the city, they knew I was selling/renting lots and that they provided me a business license. None of those employees were able to tell me that what we were doing was not in compliance. If they would have only mentioned it back in December when we called we wouldn't have bought the park in the first place. 

If we attempt to comply we can only fit a total of 5 mobile homes with (70ft frontage) and the list goes on. We are a little desperate and don't know even where to begin. So while my husband reads the compliance requirements I am posting for help. 

Thank you for reading

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San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
5y

@Macarena Korth Sorry to hear about what's happened with your mobile home park. You may want to contact the local manufactured housing association in the area. Usually, they have a referral network and may be able to give you a few names of some attorneys who may be able to help you who specialize in this niche. At this point, you may want to consult with an experienced attorney to go over your options. Best of luck with everything! 

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  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    5y

    @Macarena Korth Sorry to hear about what's happened with your mobile home park. You may want to contact the local manufactured housing association in the area. Usually, they have a referral network and may be able to give you a few names of some attorneys who may be able to help you who specialize in this niche. At this point, you may want to consult with an experienced attorney to go over your options. Best of luck with everything! 

  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    I would say ok great to the 5 Mr Mayor 

    explain it to buyer #6 and refund their money 

    Lesson learned always get it in writing.  Verbal ok from a county/city employee doesn’t cut it 

  • Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
    5y

    I am not sure how Alabama handles this but I would contact the state Real Estate Commission there. This should have been disclosed by the RE agent before the purchase was finalized. Do some research about what is required to be disclosed in that state, especially since this effects the value of the investment. Depending on what you find out from the Real Estate Commission, you may or may not need to contact a RE attorney. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Michael Plante:

    I would say ok great to the 5 Mr Mayor 

    explain it to buyer #6 and refund their money 

    Lesson learned always get it in writing.  Verbal ok from a county/city employee doesn’t cut it

    Agreed..  then you can go for a variance or non conforming use hearing and see how they react.

    but if the Major actually called you.. PRETTY RARE sounds like he / she runs the show..  

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Bonnie Griffin Kaake:

    I am not sure how Alabama handles this but I would contact the state Real Estate Commission there. This should have been disclosed by the RE agent before the purchase was finalized. Do some research about what is required to be disclosed in that state, especially since this effects the value of the investment. Depending on what you find out from the Real Estate Commission, you may or may not need to contact a RE attorney.

    In many states disclosures for commerical property are exempt and the disclosures normally only apply to 1 to 4 SFR. You know protect the general public.. End of the day this is up to the buyer to discover in due diligence the seller may not have known and the agents are not required to take a deep dive into the zoning codes.

  • Real Estate Agent · Houston, TX · Member since 2018 · 6 posts · 2 votes
    5y

    Thank you, everyone, for your advise! 

  • Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
    5y

    i would contact an attorney in this area, it never seizes to amaze me the links the cities will go to so they can cause problems and then tell you they all about affordable housing, all they really about is taxing the heck out of homeowners and they know they cant get lots of taxes out of mobile homes so they dont like them, i dont see you losing this battle cause the homes were already in the park and in lots of cases that grandfathers them in, mayors are not lawyers and it sounds like you are in an area where they dont like parks 
    good luck

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Mark Brogan:

    i would contact an attorney in this area, it never seizes to amaze me the links the cities will go to so they can cause problems and then tell you they all about affordable housing, all they really about is taxing the heck out of homeowners and they know they cant get lots of taxes out of mobile homes so they dont like them, i dont see you losing this battle cause the homes were already in the park and in lots of cases that grandfathers them in, mayors are not lawyers and it sounds like you are in an area where they dont like parks 
    good luck

    Cities don't like low end MHPs because of taxs they don't like them because they tend to be eye sores and mini ghettos and take up a bunch of police fire and EMT time with that tenant base  that's why they don't like them.. has nothing to do with property tax's.

  • Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
    5y

    @Jay Hinrichs, funny that you mention cities don’t like parks because of the ghettos and trash with the way people live, every city I hv ever visited people live like pigs not to mention living in tents on the streets, maybe they should consider embracing mobile home parks instead of hating on them, they are the last affordable housing in this country 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Mark Brogan:

    @Jay Hinrichs, funny that you mention cities don’t like parks because of the ghettos and trash with the way people live, every city I hv ever visited people live like pigs not to mention living in tents on the streets, maybe they should consider embracing mobile home parks instead of hating on them, they are the last affordable housing in this country 

    ON the west coast this is starting to happen i bought a park in Eugene Oregon and that is exactly what the planner told me.. they would not approve new ones but they considered existing affordable housing but they WANTED THEM CLEANED UP.. 

  • Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
    5y

    @Jay Hinrichs I have been a commercial broker and owned commercial property in Colorado and many things MUST be disclosed here. If not disclosed, the liability is high. 

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