Castle Mobile Estates – Another ICFA Success Story

In the beautiful seaside town of Capitola, California, affordable housing can be challenging to come by. Until recently, the city’s Rent Stabilization Ordinance kept prices affordable in mobile home communities, but after years of litigation, Capitola was forced to repeal its rent protection policies.

The jump in housing prices was devastating to many of the city’s residents. In one community, space rents ballooned from $340 to $2,200 overnight.  In another community, however, the various stakeholders were able to work together to protect a much-needed source of affordable housing.

Castle Mobile Estates joined forces with Millennium Housing, a non-profit organization committed to providing affordable housing through the acquisition and rehabilitation of mobile home communities. Together they negotiated a solution that would allow resident to stay in their homes. The City of Capitola contributed $2,000,000 for rental assistance and capital needs, the park owner accepted tax-exempt bonds as part of the sale price, ICFA issued the bonds and residents agreed to a reasonable rent increase to support the bonds.

As a direct result of ICFA’s involvement, Castle Mobile Estates residents continue to receive the protections of Capitola’s Rent Control Ordinance, even though it was repealed. Over one million dollars were set aside to correct years of deferred maintenance, and surplus funds are being held in trust for future activities such as maintenance, homeowner activities and other enhancements to park.

Perhaps most importantly, Castle Mobile Estates residents enjoy peace of mind, knowing that they can afford to remain in their homes, in the city they love.

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