All mankind... being all equal and independent, no one ought to harm another in his life, health, liberty or possessions.
- John Locke
Park Model Owners Rights When Selling! SB1146 is now law. Leff Makes Right.
On April 20, 2010, SB1146 was signed into law by Arizona’s Governor Jan Brewer. This bill amends ARS 31-2102 of the Long Term Space Rental Act AKA RV Act (LTSRA). The RV Act pertains to leases of land to park models owners (RV Resort residents who rent annual spaces containing permanent homes) which exceed 180 days. This new law change addresses the discrimination that many RV/park model owner residents have faced over the last decade in regard to their private property rights. When the RV Act was passed by state legislature in 1999 certain provisions were left out that could have protected thousands of residents from losing their homes over the last 10 years.
A few land owners who own RV/Park Model communities (mostly out of state corporations) have taken advantage of these loop holes in the law and implemented rules and regulations in their communities slanted to the financial benefit of the land owner. This has contributed to the diminishment of value of a certain type of housing which is called a park model. Park models are considered personal property and like manufactured homes which are placed on leased land lots, this type of chattel are titled like cars and ownership transfers are currently facilitated through the Department of Transportation Motor Vehicle Division (MVD). A resident of an RV/Park Model community and who holds title to this type of home also maintains a home owner’s insurance policy, pays property taxes and an annual space rent to the land/community owner.
SB1146 helps to “level the playing field” between the interest of the land owner and the park model (chattel) owner. This law prevents a community from prohibiting individual for sale signs and the common practice of forcing a resident who owns a park model to list their home with the internal community owned sales agency as their only alternative for professional representation. Park model owners will now have more options when attempting to sell their homes than having to compete with their own community for buyers, paying costly tear down, transport and relocation fees and turning over their titles to the land owner or paying on-going annual space rent while they wait for their home to sell.
During this 49th Legislature Second Regular Session hearing and floor voting process, it was clear that many of our state legislators had never heard of a park model or understood the difference between the laws that govern them versus manufactured homes and why this bill was necessary. Since their inception in the mid 80’s park models have been categorized and legally defined as a “Recreational Vehicle” (RV). In order to maintain this definition these types of dwellings must leave their factories with a total interior square footage of 400 or less. Park models can mostly be found in RV Resorts which are not covered by the Arizona Manufactured Home Landlord Tenant Act which came into existence in the late 80’s. They do not enjoy the same protection under law as a similar factory built housing product (over 400sq’) which is legally defined as a “manufactured home”.
Perhaps park of all the confusion in understanding the difference between the two types of manufactured housing products is that to the naked eye park models look just like manufactured homes so why would they be treated differently to begin with? That’s a good questions and one that upon research can be answered by two words; lobby power. In the minutes of the committee meetings during the original legislation which created the Long Term Space Rental Act, language in the bills originally provided for the same types of protection though certain special interest associations and government lobbyist opposed their categorization as a manufactured home. A bill was introduced in the late 90’s that would have included park models under the manufactured housing laws but was defeated because their was no advocacy for the park model owners with a big enough stick to fight off their being grouped in under other laws pertaining to travel trailers and motor homes.
These typically 1BR/1BA homes are set up in communities on an annual basis with attached carports, workshops and room additions. Similar to manufactured homes, they are most often anchored to the ground, have cement driveways, and are connected to utilities, set up permanently on a lot with a necessity for on-site utilities including sewer /septic lines, water and electric. Unlike other types of recreational vehicles, park models do not contain components typical to RV’s such as holding tanks, electric jacks, hydraulic brakes, roof air conditioning, generators, etc. and are not designed to be towed behind a truck to multiple locations. Other types of RV’s such as fifth wheel trailers, motor homes and travel trailers are built to be road worthy and are self contained with no need for on-site utilities to function.
Most Park Models are manufactured in the same manufactured housing plants as manufactured homes, with similar construction specifications such as 2’ X 4” centers, drywall interior walls, cathedral ceilings, shingle roofs and built-in appliances which must be connected to on-site utilities for their operation. Since their inception, however, park models have legally been defined as a “Recreational Vehicle” (RV) and therefore are not mandated by law to be constructed according to “HUD code” as defined by the US Department of Housing and Urban Development. Rather the standards for construction must only meet ANSII standards which pertain to recreational vehicles and other non-habitable structures.
Manufactured homes are required to have HUD insignia’s and their production, installation, broker/dealer licensing and Manufactured Housing Landlord Tenant Act is administered through the Department of Administration and is maintained and enforced through the Department of Building Fire and Life Safety through the Office of Manufactured Housing. These agencies fall under the Executive branch of the Arizona government responsible for the administrative and enforcement functions required by the Department of Housing and Urban Development (HUD) through the Executive Branch of the Federal government.
During its journey though our state legislature SB1146 became an interesting hearing to witness as it brought forth questions from committee members and others which helped to clarify this type of hybrid home indigenous to certain regions of the US and owned in great part by our winter visitor population known as snowbirds. Park models became an answer to those demanding the RV park lifestyle but were unwilling to deal with the work it takes to own an actual RV. Snowbirds could still escape the cold winter months, come and play with their friends, keep a low maintenance relatively inexpensive winter home without the ongoing stress of hauling tons of steel behind their vehicles or having to face the hazards associated with winter road travel. Many have purchased second vehicles they would keep covered under their carports rather than drive on icy roads at all.
Beginning in the early 80’s park trailers became the first popular alternative to travel trailers and could be kept in the same location on an annual basis. The demand arose from many snowbirds staying for longer periods of time and wanted more space than just an 8’ portable road vehicle. The industry demand created this first type of park model that contained extra living space in the living room and bedroom areas. Once these got approved by legislature, the home owner would have an extra 80’ of living space. Many snowbirds began trading in their travel trailers, fifth wheels and motor homes for these more attractive park trailers, which were a precursor to our new modern day park models.
Once again, trailer park owners lobbied legislature to allow the larger park models in their communities while still allowing the RV parks their status and self rule under existing hotel/motel laws. This encouraged guaranteed annual income for the community owners since these types of RV’s would not be removed from the community like other RV’s winter visitors would unhook from sewer and take home with them when they would leave in the spring. Soon the demand for Park Models abound as land owners relished in their massive guaranteed annual incomes while park model manufacturers revved up production and park model “street dealer” retailers began lining their pockets.
Since the early 90’s over 150,000 park models have been sold in Arizona. Park models can range in price from $10,000 to $200,000 depending on the bells and whistles, room addition and community location. Park model communities are concentrated in the Mesa, Apache Junction, Sun City, Yuma, Show Low and Casa Grande, Arizona. They are also popular in other winter destinations such as Texas, Palm Springs, CA, Florida and certain parts of Colorado. Annual space rentals for park models range from $3000 to $10,000 per year. These homes have been manufactured by such big names as Cavco, Palm Harbor, Fleetwood, Skyline, Hallmark and others. They are produced in the same factories as “manufactured homes” by the same assembly line workers with the same materials.
Expert testimony was submitted during the Senate and House Commerce and Economic Development Hearings from professionals representing various segments of Arizona’s industries which are affected by park models including banking, transport, lending and appraisal organizations. They all substantiated that a park model is considered a manufactured home by most segments of these industries. Park model owners also testified of the many instances they or their friends where their efforts to dispose of their property were impeded by the park owned sales office. In an original testimony by Earl Lundin from South Dakota, one of his friends lost not only his home but over $30,000 from his farming operation when he had to fly back to Arizona to tear down his park model and Arizona Room to move it out of the community where he lives because he was evicted for letting one of his friends use his home without going through the park owned rental and sales office. These communities can currently evict without a cause.
One of the original provisions of the RV Act was that a landlord could non-renew a long term annual lease “without cause”. What this essentially meant was that for any reason they wanted, a landlord could request that a resident who paid annual rent on a park model could evict that resident without cause. As a result of this power, many landowners have implemented rules and regulations at their discretion and without input from the resident that if the resident doesn’t like or weren’t in place when the park model was moved into the community, the resident could be forced to leave. Tearing down and moving a park model, similar to the moving and set up fees associated with manufactured home relocation, can be a very costly and arduous process.
Once unique to winter visitors these types of homes have also become an affordable housing option for many seniors who now live in these on a year round basis and who survive solely on their social security checks and Medicare. Recreational vehicle/park model communities now report that up to 30-40% of their annual park model spaces are resided in by annual residents. Many of these annual residents offer summer care and other services for those who are gone “back home” during the hotter months and derive extra income from offering their services to those with more disposable income.
Since most park model owners are senior citizens on fixed incomes, they would rather turn over their titles to the land owner than face the stress of standing up for themselves or face the prospect of constructing their homes on another location in a different community where they could face the same dilemma. Others suffer silently not wanting to give up their friends and are forced to endure emotional, mental, physical and psychological abuse by tyrannical management than move away from their support system.
During one of the committee hearings on a related bill (HB2255), one of the Senators asked why someone would even want to live in a community where this kind of thing was happening; “Why wouldn’t a they just go get an apartment instead rather than deal with these horrible management practices”? For those unfamiliar with the type of fellowship and the active lifestyle the people in these communities experience because of their unique supportive relationships and active lifestyle, apartment living might seem like a reasonable solution. But for those who have experienced the joy of an active 55+ community, there is no doubt; this lifestyle is worth fighting for.
I once interviewed a widow who was being required to give her manager over $3000 to bring her home “up to code” for a supposed City setback violation. She and her husband had originally purchased the home from the park sales office run by the community manager. The fire code violation had not been disclosed to her when they had originally purchased the home. In fact she had a letter from the management when she and her husband bought the home that stated specifically that the home met all of the City of Mesa set back requirements and had been approved for resale in the community, signed by the manager.
This elderly woman was told that either she would pay the fee to the manager for the “upgrade” or she would not be allowed to sell her home. Her plan was to sell her smaller park trailer and upgrade to a larger full size park model with a room addition she had her eye on in the same community so she would have room for her kids to come visit. I offered to help her challenge the discrepancy in the parks disclosure of the violation and she hesitated. She said that since her husband died she didn’t know what she would do if she couldn’t escape the horrid Minnesota winter and come here to be with her friends. She would just give in to the unethical demands of the manager and “just be done with it”. She didn’t want to stand up for herself in fear of the possible retaliation.
In a recent survey of Maricopa County tax records of 6 communities, over 75% of the homes featured for sale on the communities’ website were actually owned by the community or others related to the management/ownership interest. These park owned homes are often advertised with “rent specials” and other special incentives on selected new and pre-owned “units”. The specials of course are not extended to the listings of existing residents who struggle to compete with their own community for buyers. The land owner’s main goal in most cases is to fill the community so it may generate as much income as possible. If a space is filled by an existing resident and park model, the sense of urgency is less since that resident has to pay their space rent regardless of whether they sell the home or not. Of course all home sales must be approved by management prior to the consummation of any transaction, even if the home owner is selling his own home.
Some communities have restricted free trade within their properties by requiring residents to utilize services such as carpet installation, roofing companies and other services that are “approved by management” often owned by management themselves. This has hurt dozens of local mom and pop businesses who once having a strong business presence in certain communities have been denied entrance to communities and threatened with trespassing violations they should continue to service their clients once the park has determined they are no longer authorized. Communities have taken the position of judge and jury claiming the right to void business contracts to which they have no interest.
Kara Holt, the President of Active Resort Properties Management Group, LLC a firm which specializes in manufactured home and park model sales to retirees in Arizona, formed a grassroots lobby organization called the Moms and Pops of America to address legislative issues affecting seniors and small business. She and others were the proponents of this legislation which became sponsored by Senator John Huppenthal and amended in the CED Committee by Senator Barbara Leff. Senator Leff also amended HB2255 which would limit the administrative fees imposed by communities for utility charges and remove the ability of these types of communities to evict “without cause”.
If HB225 passes it would empower park model residents to not live in fear of being evicted or losing their homes. If this legislation is passed some of the misused power could be taken away from unscrupulous management teams currently fueled by existing statute which allows the “without cause clause” to be used as an imminent threat to the elderly. This threat is often used (like a switching stick shown once in a while to a disobedient child yet kept in the closet) just to remind residents of what could happen to them if they are not compliant to whatever demands the manager deems appropriate; disclosed, written or not. Even though there are many well run, ethical communities which do not allow these practices in their communities, these problems remain with the ones that do. I guess what I heard once is true; “Laws aren’t made for the good apples”.
Support can be shown for this bill to our Arizona State Legislators by visiting the www.momsandpopsofamerica.com website and clicking on SUPPORT HB2255.
To support the volunteer lobbyist, please visit www.azActiveResorts.com to buy or sell your pre-owned park model or manufactured home.
Acknowledgements:
Thanks to my son for being so patient, helpful and for filming the initial hearing of this bill. Thanks to Earl Lundin for being the one testimony in the beginning that made all of the difference. Thanks to Senator John Huppenthal, the bill sponsor and Senator Barbara Leff for allowing her committee to hear this bill. Thank you to all of the Senators who voted unanimously for this bill and those Representatives who voted to pass this bill. Thanks to Governor Brewer for signing this into law. Thanks to my office staff that put up with the endless deadlines and extra workloads; Peter Avery, Linda Luna and others. Thanks to the Phillip Austin Law Firm, Gerry Adcock, Jean Creagan, all the local businesses which let me put up posters and announcements including the Wild Berry Café, Weiss Guys Car Wash and the Bavarian Point Restaurant. Thanks to the experts who provided their testimony and the dozens of others who were willing to trust me enough to share their stories despite their fears. Thank you to Margaret Webb, the owner of the Raindance and Sundance Mobile Home parks for your testimony, speaking your mind and standing up for what is right and for being an ethical park owner. Thank you to Margaret Michelin for your encouragement and support. Most of all I thank God for his grace and promise to make a way for his people.
Senator Huppenthal is running for Superintendent for Public Instruction and Senator Leff is running for State Treasurer; please visit their websites: www.johnhuppenthal.com and www.barbaraleff.com and vote for them.
Showing posts with label Property Rights. Show all posts
Showing posts with label Property Rights. Show all posts
Saturday, April 24, 2010
Monday, February 22, 2010
Moms and Pops of America-Standing Up and Silent No More!
This is an excerpt from my blog post from www.azactiveresorts.blogspot.com a few months ago. It was a letter of thanks I wrote to a professor of law in Tucson whose research study on the effects of this mortgage crisis on seniors was given press by a Los Angeles journalist. Seniors in dead end mortgages need not continue paying their mortgage payments if it means losing their lives or life savings.
The data contained in this entry is very informative and provides great insight as to the socio-economic aspects of this very special group and their affects on Arizona's economy.
Moms and Pops of America is a not-for profit organization I founded and for which I am the registered lobbyist. We represent a voice to state legislature for the benefit of seniors and small business in Arizona. Please click this link to hear the testimony given which helped to gain unanimous support for SB1146-Park Models Right to Sell. I drafted SB1146 which is a private property rights bill related to the "park model" retirement land lease housing industry in Arizona.
This legislation, if passed will give snowbirds and other seniors in Arizona the support in statute they desperately need in order to have a right to sell (dispose) their properties when rather that being forced often by necessity to turn their titles and Constitutional rights to the land owner. Currently many seniors suffer silently because of the abuse the lack of this legislation has allowed to happen.
This bill was passed (unanimously) through the Arizona State Senate Commerce Committee on 2/16/2010.
How this is important to tea party members is that the underlying concept behind this bill relates to the 14th Principle as presented in the 5000 Year Leap, p.169; "Life and Liberty are Secure Only so Long as the Right to Property is Secure". Up to this point a lack of consumer representation in legislature has allowed for despotism in senior communities which has resulted in the loss of our rights in property and the loss of the properties themselves. In addition, first Amendments rights are violated because residents may lose their homes if they resist unconscionable rules created by the land owner.
We need support NOW from voters in Arizona who are willing to let legislatures know that they will be held accountable to support our Constitutional rights in Arizona even if those whose rights are being violated are not registered voters in Arizona.
Here it is:
Over twenty years ago, I became involved with the winter visitor industry through a part time job when I came to Arizona to go to college. In 1994 I founded a unique organization that specifically catered to the needs of the 55+ retirement and vacation housing market in Arizona. I became involved with many of the entry point organizations in Arizona such as the Chambers of Commerce, Office of Tourism, BBB and my company has served as a resource for centralized information about these types of communities. Although, I cringe at our declining home values (and do everything in my power to sell homes), I am so grateful for our senior market or I wouldn't be in this business.
I believe in Arizona and love it here and want to see our economy thrive but , as God fearing United States citizens, there are lines we must learn not to cross. Over the years I have struggled to survive as a small business owner; up against the corporate giants in our industry who abuse seniors, monopolize the marketplace and blatantly violate federal anti-trust laws with no consequence. (See my blog article; Consumer Rights by Community Type).
Even though there are several well managed communities in this industry whose owners still have a "heart toward seniors", they are becoming more obsolete due to the bottom line tactics of money changer, depreciation seeking, safe harbor investors and other out of state corporations that control the lobby power and laws in Arizona.Since the beginning of this last year, I have personally come in contact with dozens of retirees who are struggling with the very issues you presented in your article.The evolution and expansion of the senior housing market in Arizona has stemmed widely from the influx of out of state retirees over the last few decades.
A large percentage of our states residents and registered voters initially began their adventures to Arizona as seasonal guests (Snowbirds), but ended up here on a permanent basis even if though many still take their RV's to Minnesota in the summertime. These "visitors" have brought billions of dollars to our state in sales tax and property taxes for homes they own even if it's not affixed to the land. Even though the vacation and retirement housing industry is appealing to those with an ability to have a second home, it also can serve as an affordable housing option for those on fixed incomes.
One gentleman bought a park model with his wife when they first retired but when she died he came here permanently to have the fellowship he found in the 55+ community.Retirees who relocate here may start off with a "park model/RV" or manufactured home in a "leased land" community and then invest in various types of real estate for permanent residences. Since I have worked with retirees from these various segments of the retirement industry, my entire adult life over the last two decades, I would like to share a deeper perspective supporting the issues you touched upon in the article.
I stand in reverence toward our seniors and am so grateful I have had the honor and unique experience of hearing the life stories of thousands of retirees, veterans and others who frequent our state from all over the United States and Canada. In 1994 I started the first property management company which specializes in locating and managing this specific type of housing in the 55+ Active Retirement Communities. I later became a park model and manufactured housing broker specializing in resales of existing "winter homes". I am also now a licensed Arizona Realtor®, and am now able to facilitate the entire spectrum within this specific market.
In 2004 I was contracted as a research specialist and consultant for a very large Chicago based corporation with land lease community holdings throughout the United States. The research project resulted in a special meeting and presentation for their investors and corporate officers. This corporation wanted to position itself to capture the up and coming "baby boomer' market which would "phase out" the older generation in the years to come. This engagement resulted in my being flown to Florida to present an independent low budget film I produced and an article later published and featured in a national senior housing magazine in 2006 entitled: "What the bleep do boomers want'?
In my efforts to determine the buying trends of boomers compared to the prior generations for this commission, I embarked on an amazing adventure into the psyches of seniors and interviewed dozens of retirees and included the perspectives from a few of those directly involved with this specialized market including Jay Butler, Director of Realty Studies at Arizona State University (please see his most recent findings). The experience of this project gave me an even more intimate understanding of the social dynamic and motivations of retirees which could be understood a little better and I was able to cross reference predictable market behavior by understanding the various generations and demographics.
As I studied and researched the historic socio-economic-cultural mindset dynamic and market triggers it was also made clear to me many of the core issues our seniors must now face to survive and exalt themselves from the mucky water. Specifically these include overcoming shame, fear of shame, religious belief systems, attitudes of entitlement, feelings of helplessness and learning the difference between personal responsibility and co-dependent relationships with authority figures. They must now pray for the willingness to stand up for themselves and find power in numbers, instead of bowing out of the responsibility they must take for their own lives.
One of my clients lives in a small manufactured home on a "little piece of heaven" in Apache Junction, she and her husband purchased before he passed away. She couldn't live in a 55+ community because she has chosen to raise her grandson whose mother died of a drug overdose. She said she couldn't understand why two of her children were so successful while the other one became another statistic of the disease of addiction. I explained to her during our first meeting that I was working on a amateur documentary about our nations snowbirds and asked her if she would be willing to share her perspective on where our country stood.
Her thoughtful reply was; "I feel like where our generation went wrong was trying to provide too much to our children (the boomers-italics mine) so they wouldn't have to do without like we did". As we continued in our conversation she wistfully recollected and shared what she remembered as a little girl around the time of the Great Depression. Her family became farmers to survive and provide for themselves. She explained how staples were rationed and stamps were traded for shoes. She said she feels like their generation "helped to create the current problems by giving their children what it took lifetimes for them accumulate". Further she admitted; "We made it too easy for them, and now they feel entitled to it'". I will most likely be forced to work with a cash buyer or investor for her property because land home financing is now almost non-existent.
My "Baby Boomer Research Project" of 2004 resulted in the identification of three specific "generational "groups/sets which the latter I was able to further identify by subsets. The three groups include; the Bob Hope Generation (Depression Era), SED Generation (Sinatra, Elvis, James Dean) and Baby Boomers. You might be interested in some of the findings outlined in this article. Currently, I am a personal witness to massive amounts of evidence that support many of the points you made in the article that could pose an even more serious threat to our seniors that we realize.Certain sects of retirees, depending on their upbringing, social norms, family values, memory and internalization levels of shame associated with their parents struggles during the Great Depression, are the ones who seem to be suffering the most.
They struggle with so much shame and guilt it is horrifying to watch. I find myself wearing many hats these days including that of a life coach/housing-grief counselor for so many seeking "permission" to move on as they struggle with their image of themselves as "bad stewards", taking on the responsibility of the current housing crisis.As I speak with them, it appears that even if they realize that they are not the ones who caused it, they still believe that they should "weather out the storm" and "take care of their business" all the while their retirement savings accounts dwindle away.
Many buy into the bullshit that it would be morally wrong to take care of themselves and instead believe that doing so would be contributing to the demise of their neighbors home values.Specifically, many of this group are retired farmers or other "lay people" that spent their time planting and harvesting, spending time with their families, working so hard to save up to pay for college and retirement that they had always hired "professionals" to take care of their financial affairs. It seems they haven't been able to process through the harsh reality that in many cases they are trading their financial futures for no chance of recouping their lost equity while they are still alive.Not only are they stressed out, they are also completely disoriented because they never dreamed they would be losing their retirement nest eggs, pensions, 401K's and homes!
These retired veterans, farmers, postal workers, teachers and so many others in this generation remain silent because they were taught not to burden others with their problems. By not sharing their pain, the shame and isolation they experience results in so much stress and constant worry that many now take anti-depressants or anti-anxiety medication. For example, last year, I came in contact with a retired GM worker that while GM was deciding whether or not to file bankruptcy, he could not even get out of bed for weeks as he suffered from depression that bordered suicidal tendencies.Others have taken their own lives.We have a moral and ethical responsibility to do something about this atrocity. We have an obligation to provide to them what they have given to America their whole lives. We must be good shepherd with our seniors. They need us more than ever.. What I am witnessing angers and saddens me beyond words because there is such an evil criminal element to what is happening.
These are the ones who fought our wars, modeled family and fellowship values, volunteered and continue to be used as the scape goat to shoulder the brunt of greed and corruption. These are the ones who only paid cash for what they bought, never over extended on credit or bought things they "couldn't afford". In fact, one couple paid cash for the house they purchased in Arizona but then later refinanced to extract enough money to hand over to medical providers to cover the the discrepancy in cost between what was "covered" by their health insurance for an open heart surgery and what was billed by the various providers and institutions involved. Fortunately for them, they had a wise attorney adviser who encouraged them to file bankruptcy before they lost their livelihood completely.The responsible retirees in our country may not be the reason we are in this economic mess but they are still the ones being used by government powers to manipulate the marketplace.
I feel an obligation to assist these folks by using my creative thinking skills to develop emotional support networks and opportunities to understand the larger "ugly" picture of things and not feel responsible for it.Even though seniors are a fast growing group utilizing the Internet as an information source, there are still countless people in the older generation who are not computer or Internet savvy and don't really want to be. They may lack digital exposure to free speech and freedom of the press as so much is automated these days. They may not have access to personal Blogs or other research findings that are not yet completely under control by government and wall street. They need face to face contact!Now, as we witness the speedy money printing press at work, the eventual interest rate hikes, additional job losses, transfers and nearing 5 and 7 Year Adjustable Rate Mortgage (ARM) expiration's will surely spur even more defaults in higher risk "sub-prime" neighborhoods where risky loans were sold between 2002 and 2006.
Rental property supply is on the increase and transient residency will follow. Investment companies are so eager to fill their new found short sale and REO acquisitions with warm bodies, they often market specifically to felons and those with bad credit willing to pay a higher rental rate and who probably do not share the older generations value system and pride of ownership. (At least in most manufactured housing communities, there is a criminal background check requirement).
As a Realtor and ex-loan officer wading my way through the short sale and REO swampy landscape, I find myself interviewing every agent and broker with whom I come in contact to gauge the marketplace from their point of view. One of the investment brokerage firms I spoke with yesterday told me that cash investors are beating out legitimate FHA qualified buyers with LS R's and proof of funds for short sales and foreclosures due to their "30% greater chance for closing" even if the cash buyer is offering 20K less for the same property! There is no doubt, this will further increase the supply of available rentals, lessen the supply of lower income properties available for primary residency we need to build relationship longevity in our communties to help them feel safe and build confidence in the market.
I am currently assisting in the formation of a private housing industry organization through a grass roots effort. The group of people that will make up this organization will consists of members that represent small business, retirement community residents, community owners, health and wellness professionals, educators, and professionals from within the estate planning, finance and real estate industries with solid and verifiable levels of integrity.We are combining efforts with the non-Partison Tea Party groups to begin the process of education and empowerment for our seniors as well as other Arizona residents. We do not need to wait for authorized non-profit groups or government endorsed entities/agencies to do this for us..
We need to take responsibility for our own communities NOW! My opinion is that the real estate and investment markets are being manipulated and controlled by greedy criminal bankers involved with the Bilderburg Group, Council on Foreign Relations (CFR) and Federal Reserve. Many people don't even realize that the Federal Reserve is a private entity controlling the market with their finger on the interest rate button and that they are not accountable to anyone. A couple of months ago, President Obama announced that he was putting the Federal Reserve in charge of the oversight of Wall Street. What a joke!Consumers are being controlled because they have been conditioned to believe what they read and see in media. Many seniors are dependent on Social Security and Medicare to survive so they want to believe in the ones giving them their handout. They have been taught to think the best in people and to be trustworthy. Fascism and oligarchy have taken over in the guise of "Free Market" and Capitalism. Limited education and awareness about the whole intricate dynamic of corruption that currently exists is tragic.
They believe and want to pass on the message that says; things are getting better, just hold on. Since I work in the 55+ land lease industry and offer affordable housing options to Arizona residents and out of state retirees, I am seeing a buying trend of exactly what you have indicated as presented in this article. I have made special provisions within the residency and qualification process required by most of the communities where relationships with decision makers serve to maintain a personal override mechanism to qualify seniors seeking residency "approval" in a 55+ land lease community on a case by case basis. By maintaining a more personal approach, managers can decide to make allowances for those with lower credit scores taking into consideration their historical payment history rather than declining their application because a mindless software program "kicked them" out and disqualified them due to internal red flag mechanisms built into the programming triggered by certain items being detected in various field of their credit reports.
So much of the waste and bureaucracy happens because we count on machines to do for us what we should be doing for ourselves and each other. We need to override the robotic systems now in place that are being given the control to steer destinies of thousands of hard working or retired responsible Americans.
I am a citizen of Gilbert, AZ and a member of the Gilbert Tea Party movement. We are working together to find creative means by which to educate and empower our communities in Arizona through "privatized" community based programs, lectures and workshops. Our next speaker meeting will be held on January 26, 2010. Stay tuned to my blog for updates on location as the Tea Party group has gotten too big for it's previous venue so efforts are being made for a assembly hall with greater capacity. The upcoming speakers include other Arizona residents and pioneers who care about preserving life, liberty and the pursuit of happiness. One of our feature speakers is State Senator John Huppenthal who has helped to pass the most massive legislation protecting Second Amendment Rights and Choice in Education. I will be supporting Senator John Huppenthal for Superintendent of Public Instruction in the next election. I am currently collecting "Clean Election Forms" and $5 contributions and a petition to get his name on the ballot. Our January topic will include; Choice, Safety and Responsibility in Education.
We will also be presenting another guest speaker that same night; Holly Craw who is a leader in the home school movement and is beginning a monthly homeschooling orientation workshop for those interested in exploring that option. Kim Grady, the State Coordinator for the Second Amendment Sisters will also be presenting information about an initiative to improve gun safety and education in schools. A cooperative effort has been formed between the Second Amendment Sisters, the Arizona Civil Defence League http://www.azcdl.gov/ , Rob Potter, certified instructor by NRA and founder of Shoot Right to draft and get sponsorship to amend existing legislation to improve standards, access and experiential learning at it relates to safety and education.
By combining and coordinating our efforts within various segments of industry, neighborhood by neighborhood, we can create a support network for our communities, utilizing our local schools and churches as meeting halls. Outreach committes can be formed to locate higher risk individuals and neighborhoods, which often include seniors and/or single parents who are getting lost in the shuffle. By utilizing a precinct model (Thanks GOP), subdivision captains will serve to direct and coordinate efforts within a 1-3 mile radius of where these workshops will be held.
We must act quickly to facilitate these resources to at risk neighborhoods designed to empower the general public by encouraging personal responsibility in it's truest sense. The seminars will be offered free of charge and will include a critical support group element for sharing and emotional nurturing. Initial outreach will be to the senior age groups but available to all. I know the time has come to help the "silent generation" and those in the "age of conformity" stand up and speak up. It is my personal opinion that they are the ones at greatest risk for mental and physical disorders associated with this obscure covert form of domestic violence and elder abuse. I would be so grateful to collaborate with you on any ideas you might have to facilitate this project and/or present you as a guest speaker at one of our meetings.
The TEA party meetings are currently being held every Tuesday. The group e-mailing list is now over 700 and attendance nears 150 per meeting, mostly seniors. (Go figure)! Please take a minute to read the additional issues seniors face in Arizona in the blog entry titled: Consumer Rights by Community Type. I am advocating for equal rights for seniors who own "personal property" homes in "private property" retirement communities in Arizona.I need help to help to draft and pass an amendment to a bill which flew through our legislature in 1998 (with lobby help-SB1261) now an Arizona Revised Statutes; Title 33 Ch. 19 which enables discrimination against retirees constitutional rights in many of the 55+ land lease communities in Arizona. In the meantime, we'll teach them fire arm safety and marksmanship!
Update on February 22, 2010: SB1146 did pass through committee on 2/16/2010. It will be heard by the Rules Committee on 2/22/2010. Please join us to support this bill and our Constitutional freedom in Arizona. The first meeting of Moms and Pops of America will be on 2/22/2010 at 10am at 215 N. Robson Mesa, AZ 85201.
The data contained in this entry is very informative and provides great insight as to the socio-economic aspects of this very special group and their affects on Arizona's economy.
Moms and Pops of America is a not-for profit organization I founded and for which I am the registered lobbyist. We represent a voice to state legislature for the benefit of seniors and small business in Arizona. Please click this link to hear the testimony given which helped to gain unanimous support for SB1146-Park Models Right to Sell. I drafted SB1146 which is a private property rights bill related to the "park model" retirement land lease housing industry in Arizona.
This legislation, if passed will give snowbirds and other seniors in Arizona the support in statute they desperately need in order to have a right to sell (dispose) their properties when rather that being forced often by necessity to turn their titles and Constitutional rights to the land owner. Currently many seniors suffer silently because of the abuse the lack of this legislation has allowed to happen.
This bill was passed (unanimously) through the Arizona State Senate Commerce Committee on 2/16/2010.
How this is important to tea party members is that the underlying concept behind this bill relates to the 14th Principle as presented in the 5000 Year Leap, p.169; "Life and Liberty are Secure Only so Long as the Right to Property is Secure". Up to this point a lack of consumer representation in legislature has allowed for despotism in senior communities which has resulted in the loss of our rights in property and the loss of the properties themselves. In addition, first Amendments rights are violated because residents may lose their homes if they resist unconscionable rules created by the land owner.
We need support NOW from voters in Arizona who are willing to let legislatures know that they will be held accountable to support our Constitutional rights in Arizona even if those whose rights are being violated are not registered voters in Arizona.
Here it is:
Over twenty years ago, I became involved with the winter visitor industry through a part time job when I came to Arizona to go to college. In 1994 I founded a unique organization that specifically catered to the needs of the 55+ retirement and vacation housing market in Arizona. I became involved with many of the entry point organizations in Arizona such as the Chambers of Commerce, Office of Tourism, BBB and my company has served as a resource for centralized information about these types of communities. Although, I cringe at our declining home values (and do everything in my power to sell homes), I am so grateful for our senior market or I wouldn't be in this business.
I believe in Arizona and love it here and want to see our economy thrive but , as God fearing United States citizens, there are lines we must learn not to cross. Over the years I have struggled to survive as a small business owner; up against the corporate giants in our industry who abuse seniors, monopolize the marketplace and blatantly violate federal anti-trust laws with no consequence. (See my blog article; Consumer Rights by Community Type).
Even though there are several well managed communities in this industry whose owners still have a "heart toward seniors", they are becoming more obsolete due to the bottom line tactics of money changer, depreciation seeking, safe harbor investors and other out of state corporations that control the lobby power and laws in Arizona.Since the beginning of this last year, I have personally come in contact with dozens of retirees who are struggling with the very issues you presented in your article.The evolution and expansion of the senior housing market in Arizona has stemmed widely from the influx of out of state retirees over the last few decades.
A large percentage of our states residents and registered voters initially began their adventures to Arizona as seasonal guests (Snowbirds), but ended up here on a permanent basis even if though many still take their RV's to Minnesota in the summertime. These "visitors" have brought billions of dollars to our state in sales tax and property taxes for homes they own even if it's not affixed to the land. Even though the vacation and retirement housing industry is appealing to those with an ability to have a second home, it also can serve as an affordable housing option for those on fixed incomes.
One gentleman bought a park model with his wife when they first retired but when she died he came here permanently to have the fellowship he found in the 55+ community.Retirees who relocate here may start off with a "park model/RV" or manufactured home in a "leased land" community and then invest in various types of real estate for permanent residences. Since I have worked with retirees from these various segments of the retirement industry, my entire adult life over the last two decades, I would like to share a deeper perspective supporting the issues you touched upon in the article.
I stand in reverence toward our seniors and am so grateful I have had the honor and unique experience of hearing the life stories of thousands of retirees, veterans and others who frequent our state from all over the United States and Canada. In 1994 I started the first property management company which specializes in locating and managing this specific type of housing in the 55+ Active Retirement Communities. I later became a park model and manufactured housing broker specializing in resales of existing "winter homes". I am also now a licensed Arizona Realtor®, and am now able to facilitate the entire spectrum within this specific market.
In 2004 I was contracted as a research specialist and consultant for a very large Chicago based corporation with land lease community holdings throughout the United States. The research project resulted in a special meeting and presentation for their investors and corporate officers. This corporation wanted to position itself to capture the up and coming "baby boomer' market which would "phase out" the older generation in the years to come. This engagement resulted in my being flown to Florida to present an independent low budget film I produced and an article later published and featured in a national senior housing magazine in 2006 entitled: "What the bleep do boomers want'?
In my efforts to determine the buying trends of boomers compared to the prior generations for this commission, I embarked on an amazing adventure into the psyches of seniors and interviewed dozens of retirees and included the perspectives from a few of those directly involved with this specialized market including Jay Butler, Director of Realty Studies at Arizona State University (please see his most recent findings). The experience of this project gave me an even more intimate understanding of the social dynamic and motivations of retirees which could be understood a little better and I was able to cross reference predictable market behavior by understanding the various generations and demographics.
As I studied and researched the historic socio-economic-cultural mindset dynamic and market triggers it was also made clear to me many of the core issues our seniors must now face to survive and exalt themselves from the mucky water. Specifically these include overcoming shame, fear of shame, religious belief systems, attitudes of entitlement, feelings of helplessness and learning the difference between personal responsibility and co-dependent relationships with authority figures. They must now pray for the willingness to stand up for themselves and find power in numbers, instead of bowing out of the responsibility they must take for their own lives.
One of my clients lives in a small manufactured home on a "little piece of heaven" in Apache Junction, she and her husband purchased before he passed away. She couldn't live in a 55+ community because she has chosen to raise her grandson whose mother died of a drug overdose. She said she couldn't understand why two of her children were so successful while the other one became another statistic of the disease of addiction. I explained to her during our first meeting that I was working on a amateur documentary about our nations snowbirds and asked her if she would be willing to share her perspective on where our country stood.
Her thoughtful reply was; "I feel like where our generation went wrong was trying to provide too much to our children (the boomers-italics mine) so they wouldn't have to do without like we did". As we continued in our conversation she wistfully recollected and shared what she remembered as a little girl around the time of the Great Depression. Her family became farmers to survive and provide for themselves. She explained how staples were rationed and stamps were traded for shoes. She said she feels like their generation "helped to create the current problems by giving their children what it took lifetimes for them accumulate". Further she admitted; "We made it too easy for them, and now they feel entitled to it'". I will most likely be forced to work with a cash buyer or investor for her property because land home financing is now almost non-existent.
My "Baby Boomer Research Project" of 2004 resulted in the identification of three specific "generational "groups/sets which the latter I was able to further identify by subsets. The three groups include; the Bob Hope Generation (Depression Era), SED Generation (Sinatra, Elvis, James Dean) and Baby Boomers. You might be interested in some of the findings outlined in this article. Currently, I am a personal witness to massive amounts of evidence that support many of the points you made in the article that could pose an even more serious threat to our seniors that we realize.Certain sects of retirees, depending on their upbringing, social norms, family values, memory and internalization levels of shame associated with their parents struggles during the Great Depression, are the ones who seem to be suffering the most.
They struggle with so much shame and guilt it is horrifying to watch. I find myself wearing many hats these days including that of a life coach/housing-grief counselor for so many seeking "permission" to move on as they struggle with their image of themselves as "bad stewards", taking on the responsibility of the current housing crisis.As I speak with them, it appears that even if they realize that they are not the ones who caused it, they still believe that they should "weather out the storm" and "take care of their business" all the while their retirement savings accounts dwindle away.
Many buy into the bullshit that it would be morally wrong to take care of themselves and instead believe that doing so would be contributing to the demise of their neighbors home values.Specifically, many of this group are retired farmers or other "lay people" that spent their time planting and harvesting, spending time with their families, working so hard to save up to pay for college and retirement that they had always hired "professionals" to take care of their financial affairs. It seems they haven't been able to process through the harsh reality that in many cases they are trading their financial futures for no chance of recouping their lost equity while they are still alive.Not only are they stressed out, they are also completely disoriented because they never dreamed they would be losing their retirement nest eggs, pensions, 401K's and homes!
These retired veterans, farmers, postal workers, teachers and so many others in this generation remain silent because they were taught not to burden others with their problems. By not sharing their pain, the shame and isolation they experience results in so much stress and constant worry that many now take anti-depressants or anti-anxiety medication. For example, last year, I came in contact with a retired GM worker that while GM was deciding whether or not to file bankruptcy, he could not even get out of bed for weeks as he suffered from depression that bordered suicidal tendencies.Others have taken their own lives.We have a moral and ethical responsibility to do something about this atrocity. We have an obligation to provide to them what they have given to America their whole lives. We must be good shepherd with our seniors. They need us more than ever.. What I am witnessing angers and saddens me beyond words because there is such an evil criminal element to what is happening.
These are the ones who fought our wars, modeled family and fellowship values, volunteered and continue to be used as the scape goat to shoulder the brunt of greed and corruption. These are the ones who only paid cash for what they bought, never over extended on credit or bought things they "couldn't afford". In fact, one couple paid cash for the house they purchased in Arizona but then later refinanced to extract enough money to hand over to medical providers to cover the the discrepancy in cost between what was "covered" by their health insurance for an open heart surgery and what was billed by the various providers and institutions involved. Fortunately for them, they had a wise attorney adviser who encouraged them to file bankruptcy before they lost their livelihood completely.The responsible retirees in our country may not be the reason we are in this economic mess but they are still the ones being used by government powers to manipulate the marketplace.
I feel an obligation to assist these folks by using my creative thinking skills to develop emotional support networks and opportunities to understand the larger "ugly" picture of things and not feel responsible for it.Even though seniors are a fast growing group utilizing the Internet as an information source, there are still countless people in the older generation who are not computer or Internet savvy and don't really want to be. They may lack digital exposure to free speech and freedom of the press as so much is automated these days. They may not have access to personal Blogs or other research findings that are not yet completely under control by government and wall street. They need face to face contact!Now, as we witness the speedy money printing press at work, the eventual interest rate hikes, additional job losses, transfers and nearing 5 and 7 Year Adjustable Rate Mortgage (ARM) expiration's will surely spur even more defaults in higher risk "sub-prime" neighborhoods where risky loans were sold between 2002 and 2006.
Rental property supply is on the increase and transient residency will follow. Investment companies are so eager to fill their new found short sale and REO acquisitions with warm bodies, they often market specifically to felons and those with bad credit willing to pay a higher rental rate and who probably do not share the older generations value system and pride of ownership. (At least in most manufactured housing communities, there is a criminal background check requirement).
As a Realtor and ex-loan officer wading my way through the short sale and REO swampy landscape, I find myself interviewing every agent and broker with whom I come in contact to gauge the marketplace from their point of view. One of the investment brokerage firms I spoke with yesterday told me that cash investors are beating out legitimate FHA qualified buyers with LS R's and proof of funds for short sales and foreclosures due to their "30% greater chance for closing" even if the cash buyer is offering 20K less for the same property! There is no doubt, this will further increase the supply of available rentals, lessen the supply of lower income properties available for primary residency we need to build relationship longevity in our communties to help them feel safe and build confidence in the market.
I am currently assisting in the formation of a private housing industry organization through a grass roots effort. The group of people that will make up this organization will consists of members that represent small business, retirement community residents, community owners, health and wellness professionals, educators, and professionals from within the estate planning, finance and real estate industries with solid and verifiable levels of integrity.We are combining efforts with the non-Partison Tea Party groups to begin the process of education and empowerment for our seniors as well as other Arizona residents. We do not need to wait for authorized non-profit groups or government endorsed entities/agencies to do this for us..
We need to take responsibility for our own communities NOW! My opinion is that the real estate and investment markets are being manipulated and controlled by greedy criminal bankers involved with the Bilderburg Group, Council on Foreign Relations (CFR) and Federal Reserve. Many people don't even realize that the Federal Reserve is a private entity controlling the market with their finger on the interest rate button and that they are not accountable to anyone. A couple of months ago, President Obama announced that he was putting the Federal Reserve in charge of the oversight of Wall Street. What a joke!Consumers are being controlled because they have been conditioned to believe what they read and see in media. Many seniors are dependent on Social Security and Medicare to survive so they want to believe in the ones giving them their handout. They have been taught to think the best in people and to be trustworthy. Fascism and oligarchy have taken over in the guise of "Free Market" and Capitalism. Limited education and awareness about the whole intricate dynamic of corruption that currently exists is tragic.
They believe and want to pass on the message that says; things are getting better, just hold on. Since I work in the 55+ land lease industry and offer affordable housing options to Arizona residents and out of state retirees, I am seeing a buying trend of exactly what you have indicated as presented in this article. I have made special provisions within the residency and qualification process required by most of the communities where relationships with decision makers serve to maintain a personal override mechanism to qualify seniors seeking residency "approval" in a 55+ land lease community on a case by case basis. By maintaining a more personal approach, managers can decide to make allowances for those with lower credit scores taking into consideration their historical payment history rather than declining their application because a mindless software program "kicked them" out and disqualified them due to internal red flag mechanisms built into the programming triggered by certain items being detected in various field of their credit reports.
So much of the waste and bureaucracy happens because we count on machines to do for us what we should be doing for ourselves and each other. We need to override the robotic systems now in place that are being given the control to steer destinies of thousands of hard working or retired responsible Americans.
I am a citizen of Gilbert, AZ and a member of the Gilbert Tea Party movement. We are working together to find creative means by which to educate and empower our communities in Arizona through "privatized" community based programs, lectures and workshops. Our next speaker meeting will be held on January 26, 2010. Stay tuned to my blog for updates on location as the Tea Party group has gotten too big for it's previous venue so efforts are being made for a assembly hall with greater capacity. The upcoming speakers include other Arizona residents and pioneers who care about preserving life, liberty and the pursuit of happiness. One of our feature speakers is State Senator John Huppenthal who has helped to pass the most massive legislation protecting Second Amendment Rights and Choice in Education. I will be supporting Senator John Huppenthal for Superintendent of Public Instruction in the next election. I am currently collecting "Clean Election Forms" and $5 contributions and a petition to get his name on the ballot. Our January topic will include; Choice, Safety and Responsibility in Education.
We will also be presenting another guest speaker that same night; Holly Craw who is a leader in the home school movement and is beginning a monthly homeschooling orientation workshop for those interested in exploring that option. Kim Grady, the State Coordinator for the Second Amendment Sisters will also be presenting information about an initiative to improve gun safety and education in schools. A cooperative effort has been formed between the Second Amendment Sisters, the Arizona Civil Defence League http://www.azcdl.gov/ , Rob Potter, certified instructor by NRA and founder of Shoot Right to draft and get sponsorship to amend existing legislation to improve standards, access and experiential learning at it relates to safety and education.
By combining and coordinating our efforts within various segments of industry, neighborhood by neighborhood, we can create a support network for our communities, utilizing our local schools and churches as meeting halls. Outreach committes can be formed to locate higher risk individuals and neighborhoods, which often include seniors and/or single parents who are getting lost in the shuffle. By utilizing a precinct model (Thanks GOP), subdivision captains will serve to direct and coordinate efforts within a 1-3 mile radius of where these workshops will be held.
We must act quickly to facilitate these resources to at risk neighborhoods designed to empower the general public by encouraging personal responsibility in it's truest sense. The seminars will be offered free of charge and will include a critical support group element for sharing and emotional nurturing. Initial outreach will be to the senior age groups but available to all. I know the time has come to help the "silent generation" and those in the "age of conformity" stand up and speak up. It is my personal opinion that they are the ones at greatest risk for mental and physical disorders associated with this obscure covert form of domestic violence and elder abuse. I would be so grateful to collaborate with you on any ideas you might have to facilitate this project and/or present you as a guest speaker at one of our meetings.
The TEA party meetings are currently being held every Tuesday. The group e-mailing list is now over 700 and attendance nears 150 per meeting, mostly seniors. (Go figure)! Please take a minute to read the additional issues seniors face in Arizona in the blog entry titled: Consumer Rights by Community Type. I am advocating for equal rights for seniors who own "personal property" homes in "private property" retirement communities in Arizona.I need help to help to draft and pass an amendment to a bill which flew through our legislature in 1998 (with lobby help-SB1261) now an Arizona Revised Statutes; Title 33 Ch. 19 which enables discrimination against retirees constitutional rights in many of the 55+ land lease communities in Arizona. In the meantime, we'll teach them fire arm safety and marksmanship!
Update on February 22, 2010: SB1146 did pass through committee on 2/16/2010. It will be heard by the Rules Committee on 2/22/2010. Please join us to support this bill and our Constitutional freedom in Arizona. The first meeting of Moms and Pops of America will be on 2/22/2010 at 10am at 215 N. Robson Mesa, AZ 85201.
Subscribe to:
Posts (Atom)