ORANGE COUNTY, Fla. – Leading federal mortgage entities are assisting corporate investors in purchasing mobile home communities throughout Florida, resulting in steep increases in lot rent, as uncovered by a News 6 investigation.
Florida is at the forefront nationwide, with 235 mobile home parks owned by private equity, comprising nearly 56,000 lots, according to the Private Equity Stakeholder Project, an organization that conducts nonprofit research.
News 6 is examining the rise in lot rents across Florida’s mobile home parks. Many residents report that once corporations purchase their communities, they significantly raise the lot rent. In numerous cases, the residents own their homes but rent the land underneath.
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“When a private equity company buys a park, they buy it not because of the money that the park is making currently. They buy because they see an opportunity to make even more money.” Jordan Ash, housing director at the Private Equity Stakeholder Project, explained. “So they raise the rents, they add on fees and then they reduce their expenses. Residents report a very stark contrast in the upkeep of the park.”
According to the organization, corporate investors have dramatically expanded their presence in manufactured housing communities. Institutional investors accounted for 23% of all manufactured home purchases in 2020-2021, up from 13% between 2017-2019.
Nearly half of mobile home parks purchased by private equity companies received financing through Fannie Mae and Freddie Mac, the government-sponsored mortgage buyers, Ash told News 6.
[News 6 spoke with mobile home residents in Central Florida who are getting priced out. Hear what they had to say]
Ash said there should be standards attached to the financing these companies get. He suggested the standards have some protection for residents, including restrictions on rent increases.
“The biggest thing is right now, there are no restrictions in terms of how much the new owners can increase the rents and so, if the private equity companies are benefiting from lower interest financing through Fannie Mae or Freddie Mac, there should be something in return for that. Fannie May and Freddie Mac’s missions are to support affordable housing and to preserve affordable housing and the private equity companies that are using Fannie Mae and Freddie Mac financing to buy these properties are basically getting rid of affordable housing,” Ash told News 6.
News 6 contacted Fannie Mae and Freddie Mac regarding potential lending standards for corporate and private equity borrowers. We have not yet heard back.
Ash said Congress can also create these standards because both mortgage buyers are backed by the federal government.
In Florida, there is no cap on lot rents or how often they can be raised. A 2023 Florida law, House Bill 1417, further reduced resident protections by prohibiting local governments from implementing rent control measures.
If you live in a mobile home and are experiencing a similar situation, email investigator Louis Bolden.
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