99-year lease

Hi everyone,

I'm a member and volunteer "information gatherer" for our HOA in Rhode Island. Our HOA was loosely formed back in late 2006 and legally establised in late 2007. I was also the first HOA Manager when it was established.

Most of us own our properties, but on leased land. We pay the taxes, utilities (the park owners supply water April through October), insurances and take care of the grounds near our homes. We receive 1-year leases and have to pay a yearly lease fee.

Generally, the park is "open" during these months, with a number of "snow birds" making this park their primary residences during these months. Many others come down for weekends, short vacations, etc.

The park owners do maintain a certain number of rental properties in this park, and even rent to University Of RI students during the winter months.

All this aside however, the landowners refuse to give us private homeowners 99-year leases because -- in their own words -- it's not to *THEIR* benefit for us to have 99-year leases.

We've spoken to a number of real estate lawyers (and realtors) and they all have differing opinions on this subject. We've also gone to the state, and they too are a bit wishy-washy on how to deal with this.

So, I'm wondering if anyone was in a similiar situation and yet finally got their landowners to accept/provide 99-year leases? And, if so, would there be some willingness to provide me a copy of that lease -- sans any private and financial information of course -- that I could use as a template?

I'd reformat it a bit to fit our particular situation and submit it to our HOA Board. I'd leave it up to them to formally present it to the landowners for consideration.

Yes, it's *possible* for us to have a lawyer create a lease for us. But, our HOA is still in its infancy and all HOA fees collected are currently allocated to a petition we have going with the RI Department of Business Regulation on a similiar Mobile/Manufactured Home Park issue. (If you're from RI, you probably understand what I mean!)

I have done some web searching for lease templates. But, they appear (at least to me) to be too broad in scope and definition to fit our needs.

There is a great deal going on between the landowners and private homeowners. (Some of these issues quite contentious.) The lease is one of them. But, it's a also a good place to start, too!

Thanks!

Joe,

What type of an association do you have? Is this mobile homes or manufactured homes? It sounds like you have an owner of the land or is it land that your County or State owns? When you say that "they" have said that it isn't in their best interest to have a 99 year lease, that sounds like a private owner.

By the way, I would NEVER talk to a real estate agent about something like this.

If you want a 99 year old lease agreement, then you will have to move to Italy or Germany where that is common practice but I have never heard of this here in America.

Well it sounds to me like you are in a mobile home park and you are leasing spaces I don't think you can make the owners give you a lease if they don't want to no matter how much you spend on an attorney That would be like renting an apartment and trying to get the landlord to give you a 99 yr lease. I imagine the reason that you could possibly want one (rent control) would be the same reason they don't want to give you one. 99 years is a long time, The only time I have heard of a land lease that long was on federal land. Perhaps you could negotiate a shorter lease 5-10 years. Or have the hoa buy the property and use dues to make the payments Of course if you can't get everyone to pay their dues then the ones who do pay will have to make up the differrence or you will lose the property. You may end up spending a lot of money on attorney fees trying to make them pay. Read the threads concerning those issues and what headaches they can be. You might be better off just keeping things the way they are or trying for a shorter lease

It sounds like the building restriction came in after the existing structures were put there. You are most likely grandfathered in Check with the local codes and state codes concerning your area It may be that if a mobile home leaves then another one cannot replace it. If so, that may be your bargaining point because if you leave then the land they rent you becomes worthless to them. If conditions at the park are so bad, I don't understand why you would want to commit yourself to a longterm lease. Rent control or not you would be committed to put up with the conditions. As far as the water and septic Have you threatened to call the health dept.

Unfortunately, it's an *extremely* complicated situation!!!

Septic and water upgrades were actually mandated back in 1999 by both the town and state. But, the landowners – for some strange reason – opted NOT to do anything serious until they received letters from the town and state, threatening legal action if the upgrades were not performed.

According to the town planner, the town *might* shut down the park completely if the septic/water upgrades are not completed by 1/1/2013.

Since 1999, rentals have been sold. Property owned in CT and RI by the realty company has been sold. Money has been made on rentals and leases. And, yet (in my humble opinion!) the owners didn’t have the foresight/insight/intelligence -- whatever you want to call it! -- to properly plan for these upgrades.

In my view, money was just frittered away! Who knows? Maybe they thought the mandates wouldn’t affect them if they closed their eyes hard enough!

But now it’s all coming to a head!

Yes, if a property is removed (even though the current lease says a “private property” can’t be removed) nothing can go in its place. Exceptions are made for mobile homes. A mobile home may be replaced.

As for wanting to stay, well, there are a number of personal reasons why – one of which being that my spouse and I poured a great deal of blood/sweat/tears/money into our place. Granted, some may look at it and say, “Well, it’s just a cottage.” To us, it’s a home! And, we’d love to pass it down to our child!

Now, when it comes to selling, the current lease and lease fee structure makes it extremely unattractive. A number of private properties are for sale – and have been for quite some time – but aren’t moving. Sales have been lost when the prospective buyer not only reads the lease, but is also informed of the yearly lease fee.

And, if you just “want out,” the landowner will purchase your property…for $1!

Yes…one dollar, regardless of how much you invested into your place! I kid you not!

Needless to say, many of us are stuck!

These issues have been mounting for the past few years. This is one of the reasons why an Association was formed.

So this is where I and many others stand. I guess all we can do is just keep plugging along!

Thanks.