City making new rules

I am in the process of contracting for a MHP that the city has changed the rules saying any homes brought in going forward are to be doublewide.The park is 90% occupied with 10 empty spaces and has good cash flow.29 are park owned soon to be sold to tenants on credit program and are being rehabed.Is this a deal breaker?

Not necessarily. But to find out, you’ve got to take it to the next level. Any rules regarding the park are grandfathered if they are put in place after the park was built. I’m assuming this doublewide rule is recent and the park is older than that rule. If that’s the case, you need to hire a municipal lawyer to call the city attorney and get the true facts on what is going on. If necessary, the seller needs to file suit to get this resolved. We run into this issue periodically, and the city always backs down when challenged.

Good info.I just found this out today price checking lot rents. City Hall was the first place on my list when I got to the park to start my DD. This is a Distressed sell and the bank is only giving me 21 days to complete it ( they were only going to let me have 7).It’s a 3 1/2 hour drive away so I’m going to call and find out the specifics tomorrow and ask for a copy of that ordinance. Hopefully I can find an attorney before the 21 days are up. Looks like another city trying to eliminate affordable housing!-thanks Frank

What happens frequently is that the inspector is using the typical single-family grandfathering rules and trying to apply them to a park. It doesn’t work. On a single-family lot, if the lot is vacant, you can’t build on it unless it meets the latest codes. But mobile home park lots are a grandfathered “use” and are all immune to current ordinances. That’s why a call from an attorney to the city attorney can frequently fix such misconceptions in one call – and then the city attorney educates the inspector.Let’s see how it goes.