Magazine article Rural Cooperatives

Partnership to Finance Resident-Owned Communities

Magazine article Rural Cooperatives

Partnership to Finance Resident-Owned Communities

Article excerpt

ROC USA Capital, National Cooperative Bank (NCB) and MetLife insurance company have forged a $40 million financing partnership to structure a groundbreaking first mortgage acquisition/permanent loan product to finance resident-owned manufactured home communities (ROCs) at scale. NCB and MetLife will each invest $15 million, and ROC USA Capital $10 million, over two years to finance ROCs in 20 states.

"We launched ROC USA Capital to build a robust national market to finance the acquisition, long-term ownership, operation and improvement of manufactured home communities by the lower income homeowners who call these neighborhoods home," says ROC USA Capital Managing Director Michael Sloss.

Since its inception in 2008, ROC USA Capital has built a $100 million portfolio of first mortgage community acquisition/permanent loans to 42 ROCs in 11 states, enabling more than 3,400 low- and moderate-income homeowners to buy, preserve and improve their neighborhoods. ROC USA Capital has carried out this work on a retail basis, partnering with 20 statewide and regional financial institutions to deliver this critical community acquisition/improvement financing.

The partnership with NCB and MetLife opens the door for other national banks, insurance companies and pension funds to finance resident-owned communities.

This is a key development in ROC USA LLC's national strategy to implement its resident-ownership model at scale. National institutional investors have financed manufactured home community (MHC) acquisitions by commercial owners for years, committing close to $1 billion annually in the MHC sector. …

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