Park Place Communities is making their next effort in providing affordable housing a reality for more American citizens. Park Place Communities, PPC for short, has become nationally recognized for its specialization in affordable housing. The organization has set a goal of becoming one of the top 50 owners of mobile home communities in the next two years. Their plan involves taking existing trailer homes (often called mobile homes) and then renovate them using the latest housing industry know-how and technology. They nearly brand-new mobile homes will then be put on the market with amortized mortgages in the range of five years. Payments will last for five years only, and a maximum of twelve percent.
PPC CEO Andrew Lanoie says that this new and innovative program will help buyers of modest means purchase a mobile home for nearly the same amount as monthly rental costs. Their goal is to purchase between fifteen and twenty thousand mobile homes by 2020. Lanoie says that the demand for affordable housing is gigantic today, and is only growing to grow more urgent in the coming years. He said that as of 2018, there are only about fifty thousand mobile home parks in the United States that have reasonably affordable houses on them.
The prestigious CoreLogic Home Price Index indicates that projected housing costs have risen over five percent for the past 2 years, which makes the mobile home market an even better prospect as a viable alternative to traditional housing. Lanoie adds that with the continuing and widening wage gap in America the shift towards less skilled and lower paying jobs, as well as part-time work, means workers need the kind of housing that most builders and home contractors are unwilling to commit to. Lanoie says that the Social Security Administration now pegs nearly forty percent of American workers at salaries below twenty thousand dollar per year; the percentage that earn under thirty thousand is at fifty percent.
PPC has invested heavily in affordable mobile home parks across the country during the past several years. Right now they are managing over a thousand homepads in eight states, which represents a sum total of thirteen mobile home parks. Their goal, as stated above, is to locate a one million dollar pool of mortgage funds so they can help buyers obtain a fixed rate mortgage at a reasonable price. They offer debt investment opportunities that will be guaranteed by first lien security. It is also planned that they will offer a corporate guarantee at around ten percent return on interest for investors. Lanoie says that the first step is already underway, with the renovation of over a hundred mobile units in several different states.
Lanoie insists that even though these types of dwelling are labeled as mobile homes they very rarely are taken from one spot to another. The cost to do so, he says, is around three thousand dollars. Which means that ninety-eight percent of all mobile home will remain in the same spot and never be moved. This, claims Lanoie, is why mobile home property is such a good investment during times of financial uncertainty.