In the quest for affordable housing, many Americans turn to mobile home communities. However, a growing trend of corporate takeovers is transforming these parks, often leaving residents in dire straits. The influx of large corporations and investment firms into the mobile home market has led to significant changes, raising rents and fees while reducing maintenance and services.
This shift is particularly challenging for the most economically vulnerable Americans, who often have limited housing options. The situation is exacerbated by the fact that many mobile home residents are seniors on fixed incomes, people with disabilities, and families with limited means. As these communities become less affordable, residents are forced to make difficult decisions about their living situations.
Corporate Takeovers and Rising Rents
In recent years, mobile home properties have become less affordable as an influx of large corporations and investment firms have bought up the parks. This trend has led to higher rents and fees, further endangering some of the most economically vulnerable Americans. Residents of manufactured home communities in Florida, Illinois, Mississippi, and New Hampshire have described significant changes and challenges in their communities after they were purchased by investment firms or large corporations.
John Calabrese, president of the Florida Federation of Manufactured Home Owners, noted that “Some of the new owners seem to deal with their residents in a fairer way and some are just ruthless. They have no concern whatsoever for the people that live there. The main focus is generating revenues.” This sentiment is echoed by many residents who have experienced the impact of corporate takeovers firsthand.
The Impact on Residents
Aliea Brown and Mason Obradovich, residents of the Buck Island Manufactured Home Community in northern Mississippi, faced numerous issues after their park was acquired by Homes of America, an affiliate of Alden Global Capital. Brown described the front door being hung upside down, black mold growing throughout the unit, and termites and ladybugs invading. When a sewer pipe burst, it increased her water bill and caused putrid wastewater to collect under the unit for months.
“The rancid sewage smell came up through the cracks in the edge of the floor in the bathroom,” said Brown. “Unfortunately, the closest scent that it could be compared to would be a dead body.” Despite repeated requests for repairs, the couple was eventually told that the costs associated with repairing the mobile home “exceed the current value of the unit” and it was no longer available as a rental. They were offered the option to purchase the dilapidated unit for $1,000 but declined, leaving them with nowhere to go.
The Legal and Policy Landscape
There are currently no federal prohibitions on the purchase of mobile home parks by institutional investors. However, some states are taking up the issue. Maine recently passed four laws protecting mobile home residents, including giving them the right of first refusal when the park is sold. This move aims to empower residents and provide them with more control over their living situations.
The 21st Century Road to Housing Act, which is moving through Congress, includes a ban on institutional investors purchasing single-family homes. However, it does not address the issue of mobile home park takeovers. This gap in policy leaves many residents vulnerable to the whims of corporate investors.
Mold and Insurance: A Tenant’s Dilemma
For many residents, the discovery of mold in their rental units is a tenant’s nightmare. Mold is not just an aesthetic issue; it’s a potential health hazard and a threat to personal belongings. One of the most common questions renters ask when they spot mold is: “Will my renters insurance pay for this?”
The answer to whether renters insurance covers mold is nuanced. Unlike fire, which is almost always covered, mold is treated with significant caution by insurance carriers. Coverage for mold depends entirely on the source of the moisture that allowed the mold to grow in the first place. For mold remediation to be covered, the mold must be the direct result of an accident that is already covered by your policy.
If your mold claim is approved, the insurance company will typically pay for the remediation of personal property, loss of use (additional living expenses), and mold endorsements (add-ons). However, it’s important to remember that renters insurance never pays to fix the walls, floors, or ceilings. That responsibility falls on the landlord.
Preventing mold in your rental unit is crucial. Keeping humidity low, reporting leaks instantly, and improving airflow can help mitigate the risk of mold growth. Being proactive is your best defense against the potential health hazards and financial burdens associated with mold.
