Like all business decisions these days, business owners must make informed decisions. Reinvesting in your manufactured home community is no different. MHCs are considered one of the best forms of affordable housing, which are in short supply. Today building a new MHC is usually economically unfeasible in areas due to the restrictions being placed on them by local and state government. Therefore, it's ever more important to not let your MHC deteriorate. Being proactive by putting together a Capital Improvement budget and developing a reserve account is a good idea. Depending on the age of your community the capital improvements will vary from sewer lines, water lines, resurfacing the roads, replacing cracked sidewalks, and club house remodeling.

Question: There is a public restroom in the middle of our mobile home park's RV section that is used primarily by RV tenants. Some use it and some don't. The problem is that it is vandalized on a regular basis and has become more trouble than it is worth. Can we close it? What about the adjacent laundry room? It's not as much of a problem, but we'd still like to just get rid of the whole facility.

(Editors Note: MHCO is fortunate to have over 25 association members who provide a variety of services to manufactured home communities. MHCO strives to maximize associate member's exposure to the broader community membership. All MHCO associate members are invited to provide articles for the MHCO web site. We welcome your involvement - just contact the MHCO office.)

By Todd Montgomery Simmons & Associates Insurance

There are many considerations taken into account by Insurance companies when looking into insuring a Mobile Home Park. The following are just some of the factors:

- Type of Park:
Are you family friendly, 55 & older, Seasonal, or possibly a combination?

- Management:
Is your park managed by a management company? Do you have an onsite manager? Does the owner visit the park often?

- Rental Units:
Does your park have rental units? Do you require renters to carry renters insurance? Are the rental units inspected inside and out at least annually?

- Utilities:
Is your park on city sewer and water? If on a well, how often is the water tested? Is it tested by an outside independent company? How often is trash disposed of?

- Recreational Facilities:
Playground? Horseshoe pits? Tennis courts? Basketball courts? Weight room or exercise equipment?

- Exposure to water:
Do you have a pool? Does it have a slide or diving board? Is the pool area completely fenced? Are the rules and regulations clearly posted? Are depths marked? Is there safety equipment available? Is there a Jacuzzi or hot tub?

Is there any other exposure to water? (lake, pond, river, etc.)

- Security
Is there a gate at the entrance to your park? Are there security patrols from an outside agency? Are any park activities open to the public?

- Streets:
Are the streets paved? Are there any pot holes, depressions, or major cracks? Do you have speed humps? Are they painted? Is a speed limit posted? Do you have street lights?

- Tree exposure:
Does your park have an exposure to large trees? Are they pruned regularly?

Finally, the two most important factors Insurance companies consider when insuring a Mobile Home Park...

How many spaces?
Gross annual revenue?

Feel free to contact me if anything you have read in this article creates a question for you.

Todd Montgomery
511 Center Street
Oregon City, OR 97045
(503) 768 - 9706
todd@simmons-ins.com
www.simmons-ins.com

Question: When I am asked to fill out a credit application for my park, whether it be for services or garbage, electricity, etc., or if I fill out an application for financing for equipment at my park, is it necessary that I include my Social Security Number as part of that information?

Question: We have various screening criteria, but they change from time to time -- usually after we run up against a problem we haven't seen before. Is it OK to change our criteria, and if so, how do we do it?