They did it! The homeowners at the threatened Applewood Estates in Midvale, Utah, are acquiring their community – taking title, literally – as I write this!
I am so relieved. They called with no small challenge – making co-op acquisitions work in change of use cases is very difficult. This one worked because the community is beautiful and in great condition and it’s largely occupied, with only four of 56 sites vacant.
The valuation was a challenge because it has a “higher and better” use, but the state also has a resource to help resolve that: the Olene Walker Housing Loan Fund, which provided a $1 million second mortgage. That has allowed ROC USA Capital to make a 1st mortgage and the City of Midvale a small 3rd mortgage and raise in total the $5 million the homeowners needed. Olene Walker and the City were accommodating on interest rate and repayment terms that made it work.
Mary O’Hara of ROC USA Network was in Utah last weekend to co-facilitate with our local affiliate staff, Mark Lundgren of UROC the ROC 101 training for co-op members at Applewood. She shared a touching story of a couple who attended the training. They had moved into Applewood after having been displaced – home and all – from another community that was closed. When Mary asked why they supported the co-op’s purchase, the woman summed it up in one word, “Security.”
I know the members will join me in thanking the two gentlemen who agreed to “give them a chance to buy it.” My earlier blog described the circumstances of their purchase and their medium-term plans for the land if the homeowners and we were not successful. Thankfully, while it took longer than usual, it worked. Whew! We were all-in for good reason.
Congratulations! And whew! That was close!