DEMHRA Report from August 28, 2023 Meeting

Chair's Report:

No report.

Executive Director's Report:

- Department of Justice (DOJ) update of options for Paradise Cove residents.

• The first was to sign a year-round lease at a higher rental rate.
• The second was to sign a seasonal lease.
• The third was to apply for relocation assistance. As of today, no one has applied for relocation assistance.

- DEMHRA staff were given their annual evaluations.

Legal Counsel Report:

· Hecker Properties and Bon Ayre have paid and are dismissed.

· The previous owner of Sussex Manor (Kamm Properties), has moved out of state and the entity is now under CMH Capital, Inc. Legal council will make an attempt to contact them.

· The Crossings at Oak Orchard has responded, indicating the person responsible for payment the assessments was out of the country and we are waiting for their response.

· Blue Beach Bungalows, the new owner of Pine Haven, has established an account with the Division of Revenue.

· Oakway now has more than two tenants year-round and are responsible for paying assessments. Nicole Faries, Oakway’s legal representative, needs more time to investigate this.

· Paradise Cove completed the change in use at the beginning of August. Their legal counsel reported that there are 41 total lots, and of those, 7 are vacant. Seasonal leases will be issued to any new tenant who would take on any of those 7 lots, and they will always remain seasonal. Of the remaining tenants, 15 signed seasonal leases that will always remain seasonal. The remaining 19 tenants who took year-round leases at the higher rent rate are responsible for paying assessments as of June 1, 2023. No one requested relocation assistance. This was all worked out with the landowner and tenants and there are records of those taking year-round leases

Reports

A. Compliance Matters (Executive Director):

· Compliance Investigator Report:

Per Mr. Strine’s request at the last meeting, Mr. Sutton will be assigning compliance investigator audits of Pine Haven to assure homes are moved off lots and moved to the new location.

· Delinquent Parks Report:

Those parks that have not paid Quarter 2 are now two quarters late and will be referred for legal action. Those parks are:

o Countryside Mobile Estates

o Dackerg MHP

o Dove Estates

o Driftwood Village

o Noll’s MHP

o The Crossings at Oak Orchard Village

o THP MHP

o Woodland MHP.

B. Arbitration (Update on Status of Open Dockets):

There is no change in the status of the open arbitrations with the exception of Docket 04-2020 (Wild Meadows) whose arguments will be heard in Superior Court on 9/22/23.

C. Rent Increase Certification Requests:

There were 42 rent certifications done in July.

D. Update on Parks for Sale:

· Country Acres: As of 8/10/23 – No update per Attorney Faries

· Daltons MHP: As of 8/10/23 – No update per Attorney Faries

· Silver Oaks: ROFO Letter sent 11/12/20. Still for sale as of 7/11/23 per Mr. Turner.

E. Update on Parks Going Through Change in Use:

· Timberlane – 104 affected tenants, 15 relocatable, 64 non-relocatable, 7 abandoned, 86 applications received, 18 remaining.

· Lynch’s MHP – 8 affected tenants, 2 relocatable, 0 non-relocatable, 0 abandoned, 2 applications received, 6 remaining.

· Pine Haven – 37 affected tenants, 0 relocatable, 6 non-relocatable, 0 abandoned, 7 applications received, 30 remaining.

· Paradise Cove – 34 homes. Per settlement agreement, change in use is complete.

Financial matters:

• Since inception on April 1, 2004 the Authority collected $18,084,291.00 and paid out $3,296,916.00

• Trust Fund as of July 30th is $12,808,542.00

• The 2023 Legal Fund Year-to-Date is $86,328.00

• The June CPI/U is 5.935%, effective July 14th. This would equate to a yearly lease increase of 6.47%. 

Our next meeting is scheduled for September 28, 2023 at 1:30 in Dover.