MHP stars?

How does this star system work?  That is, how does a park earn or acquire or qualify for stars?  Who sets the system levels?  Is there an agency behind them?  Do more stars mean more rent?  Are the requirements general or specific?
Thanks, Jim Allen

There is no official star rating.  There is no Michelin Guide for MHPs.  But basic dirt-road parks with well water and septic would be 1-star.  Nice California parks on the beach with paved roads, all-city utilities and a golf course would be 5-star.  It’s a bit of estimation for where most parks fall in-between.Best,-jl-

Most people who refer to the star system use it as a shorthand to generally describe the conditions in the park, much like apartments are described as Class A, B, and C (and now AA for the newest and best, I guess). They give you a vague idea of condition but ultimately tell you less than you think. Ray Alcorn wrote a nice summation of the history of ratings, why they were created and then dropped, and now woefully outdated:"The guidelines certainly show their age. I find it interesting that only in a five-star park is tenant quality and occupancy a consideration for the ongoing quality of the park. Paved streets aren’t seen until the three-star level, and even then are not mandatory. A three-star park may still have small lots, minimal landscaping, and no criteria for location. In my experience, an average park will often be described as a “three-star park.” As I look over the guidelines, I think a three-star rating by the actual Woodall criteria would be a below average property by today’s standards."http://www.creonline.com/mobile-home-park-star-ratings.htmlWill

The reason that a star system for parks will never work (although many lenders and buyers wish it would come back into play) is that nobody (since Woodall’s departure) is willing to devote the resources to assemble the data, monitor it and enforce it. I have put RV sections of mobile home parks in Woodall’s before, and they really do send an inspector and put harsh judgement on your park. It would actually be advantageous for the industry to have some type of rating system, as it would speed up the financing of parks since banks would be more comfortable that they had an “institutional grade” property up for consideration. But I cannot imagine anyone ever doing this again, so the star system is a permanent joke.

Thanks for the insights and background, folks.  I could not get the link above to work but I found the article anyway and read it, thanks Will!  If any of you have not read it, it is worth the few minutes required to do so.  Frank makes a good point, I think, that it would be advantageous to have some type of rating system which the banks, and my addition, the insurance companies could use to help set rates and make go-nogo decisions.  A rating system would also allow a prospective purchaser to look at a park and ‘see’ increased sale value in increasing that parks rating in addition to rent.  A profit opportunity for the folks who flip parks, a rent support point for current park owners, and a sales point for prospective tenants, those are the main benefits that I could see.  If I’m getting carried away feel free to say so.  How to get a system going would be the $64K question.
Jim Allen
 

Well I was involved in the VALLEY the Woodall’s system was in vogue. The real reason I believe it gave the RV people some ideal what the property was like since many would travel from the north to the south in the winter time to spent 4-6 months at a property they were not familiar with. It was very important 30 years ago to park owners also but today with the internet the horse and buggy idea is out of style. Today I believe the stars could be manipulated be large park owners to fit there desires–just a possibility…