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Vermont Park May Avoid Foreclosure Through Non-Profit Intervention

Adam R.'s picture

Posted August 29, 2007

A mobile home park in Vermont stands to remain open now that Vermont's leading mobile home non-profit owner appears ready to buy the park.

The Bennington Banner is reporting that the Green Mountain Mobile Home Park can avoid foreclosure by LaSalle National Bank.  LaSalle wants to settle debts held by the park owner, US 7 Highway Holdings, LLC. 

The Housing Foundation, Incorporated is proceeding with plans to buy the park.  On Tuesday, HFI negotiated a purchase agreement with US 7.

Due diligence work remains to be done.  At a city council meeting on Tuesday, Vermont State Housing Authority executive director Richard Williams indicated that the non-profit has hired engineers to inspect the park.

HFI gets its funding through a relationship with VSHA.  Vermont provides financing to nonprofits to acquire mobile home parks as part of a strategy of retaining the supply of affordable housing.

The state also has a 45 day window where residents of a park have the right of first refusal to buy a park.  Parks in foreclosure proceedings, as LaSalle began in January, qualify for that protection.

The article goes on to state that a majority of residents at the park have decided to pursue the sale.

HFI executive director Michael Momaney left open the possibility that residents at Green Mountain might eventually own the park themselves.

"I think nonprofit ownership is better than nearly every other type of ownership, but I believe co-ops are even better," said Momaney at that meeting.

HFI will also be able to apply for grants from the Vermont Community Development Program, the Vermont Housing and Conservation Board and the Vermont Community Foundation.