Genesis Lending Helps Make Purchase Possible

Brunswick, Maine, October 10, 2024—The residents of Linnhaven Mobile Home Park organized together to purchase their 278-home community for $26.3 million, marking the first deal of its kind since a new Maine law went into effect last year requiring park owners to notify residents when their properties are put up for sale.

At a time when an increasing number of out-of-state investors are purchasing mobile home parks in Maine, threatening the affordability of homes, the State of Maine, the Town of Brunswick, lenders including Genesis, and cooperative developers all came to the aid of the families, seniors, and veterans that call the park home. Together they financed $27.86 million, which covers the cost of the purchase and upgrades to the community’s septic and water infrastructure.

When the residents learned in March that their park was going up for sale, they sought the help of the Cooperative Development Institute (CDI) to organize and form a cooperative that would allow them to purchase and manage the community together. They formed the Blueberry Fields Cooperative and negotiated a purchase price with the private owners of the park. The owners accepted their offer in June.

Under the new law (L.D. 1931/H.P. 1239), residents have 90 days after an owner’s notice to secure the funds to purchase the community.

MaineHousing created a financing package that includes a $20.6 million loan and a $3.2 million grant from the newly created Mobile Home Community Preservation Fund that Governor Mills and the Maine Legislature approved in the state budget. Support from Genesis, M&T Bank, and the Town of Brunswick also enabled the residents’ purchase. The co-op worked with attorneys from Drummond & Drummond through the transaction.

The purchase makes the Blueberry Fields Cooperative the largest manufactured home cooperative in Maine and models a hopeful path forward for other manufactured home communities in the state.

“The day that we voted to become a resident-owned community, the members all gathered at the local high school cafeteria to cast their votes. As the votes were being counted, the members began banging on the tables in support,” said Janet Fournier, Board President and member of the Blueberry Fields Cooperative. “When I shouted that the vote was unanimous with 187 voting yes, the roar was deafening. WE DID IT!!”

Fournier added, “CDI has guided us through every step of this challenging process, always with competence, clear direction, diplomacy, and kindness. We couldn’t have done this without the support of our residents, the Scarponi family, the Town of Brunswick, our State Rep. Poppy Arford, Carol O’Donnell, the folks at Maine Housing and Genesis, and Governor Janet Mills. Our purchase of this property provides a long-term benefit for the lives of more than 275 residents who currently are tenants, but equally important, those who will live in the cooperative long after we’re gone.”

“Today is a great day for the residents of Linnhaven. The success of this project is a testament to them and to the importance of the Opportunity to Purchase law I proudly signed last year and the Mobile Home Park Preservation Fund we created,” said Governor Janet Mills. “I want every person in Maine, at every stage of their life, to be confident that they can rent a safe apartment or buy a home that is the right size for their family and be able to afford to stay there as long as they want, unafraid that a surprise rent increase will break their budget or that someone will buy the land they live on out from under them. With this acquisition, the residents of Linnhaven have preserved their independence and secured their housing as permanently affordable – creating much-needed long-term stability for their community. This is exactly the type of project that we envisioned when we created the Mobile Home Park Preservation Fund and the Opportunity to Purchase law, and I am so glad to see it work.”

MaineHousing Director Dan Brennan highlighted the importance of the state’s housing agency committing funds to the purchase.

“Because of the foresight of the Maine Legislature and Governor Mills and the work of our partners at Genesis and CDI, we were able to bring together the financial resources needed to help preserve a large number of affordable homes for a relatively low cost,” Brennan said. “But this deal is about way more than that. This deal is helping to preserve a wonderful community of people who care and look out for one another, as is so apparent in the hard work they put into making this new cooperative a reality. This is an enormous accomplishment and one that all of Maine should be proud of.”

Liza Fleming-Ives, executive director of Genesis Community Loan Fund, praised the partnership that made this cooperative possible.

“This is a powerful example of how community lenders can assist residents across rural Maine in overcoming barriers to affordable homeownership and affordable rental options,” Fleming-Ives said. “Genesis is delighted that we could guide determined residents and work alongside fellow lenders and community partners to preserve this critical type of affordable housing and empower a resident community.”

The Cooperative Development Institute, which has spent the last year helping Linnhaven residents navigate the co-op development and property purchase process, will continue to support residents as they manage their cooperative and run their community.

“This has been an unbelievable journey and result for the residents of Linnhaven,” said Nora Gosselin, Market Development and Acquisitions Specialist of CDI’s New England Resident-Owned Communities (NEROC) Program. “It would not have happened without the legislative champions and the resident leaders across the ten manufactured home cooperatives in Maine who came together with CDI to get the Opportunity to Purchase law passed last year. It would not have happened without the Linnhaven community owner, who decided to give the residents a chance to come to the table as buyers. It would not have happened without the Governor’s Office, the Town of Brunswick, Maine Housing, and the Genesis Fund, who put together an incredible financial package. And most importantly, it would not have happened without the residents who formed the Blueberry Fields Cooperative. We met multiple times a week for months to go through this enormous undertaking. Through their hard work, on top of already busy lives, they are setting an important precedent for affordable housing in Maine. It was an honor to work with them.”

M&T Bank worked with Genesis to provide considerable capital that ensures a stable financial foundation for the cooperative’s future.

“We are proud to have participated in financing this important project, without which the homes of 277 families would have been greatly jeopardized,” said Phil Cohen, Maine Regional President for M&T Bank. “Affordable housing is a critical issue across the state that will only be fully addressed through innovative projects like this one. We are excited about the future of Linnhaven under the new Blueberry Fields Cooperative and are grateful to Governor Mills for her leadership, and to MaineHousing and the Genesis Community Loan Fund for the wonderful collaboration and partnership.”

The Town of Brunswick contributed $800,000 in grants, ensuring that the transaction could move forward smoothly.

“The Town’s investment in the Blueberry Fields Cooperative will help preserve affordable housing in the Linnhaven Mobile Home Park for decades to come,” said Brunswick Town Council Chair Abby King. “We are grateful for the public-private partnership with the State, Genesis, M&T, and CDI who have demonstrated a deep commitment to addressing the affordable housing crisis in Brunswick by supporting one of our most vulnerable residential communities in their time of need.”

About MaineHousing

MaineHousing is a mission-driven, independent, quasi-state agency created in 1969 by the Maine State Legislature to address the problems of unsafe, unsuitable, overcrowded, and unaffordable housing. A $2.5 billion financial institution with a staff of over 190 people, MaineHousing is governed by a 10-member Board of Commissioners appointed by the Governor. Each year MaineHousing assists more than 90,000 Maine households to buy, heat, rent, and repair their homes while also investing more than $750 million in the Maine economy.

About Genesis Community Loan Fund

Genesis Community Loan Fund is a certified nonprofit Community Development Financial Institution (CDFI) working throughout Maine and northern New England to connect communities creating affordable housing and other essential community resources with the capital and expertise they need to overcome barriers to opportunity and prosperity.

About Cooperative Development Institute (CDI)

The Cooperative Development Institute (CDI) is a nationally recognized nonprofit and cooperative development leader, serving communities in the Northeast including New England and New York. We develop and strengthen cooperatives to grow a more prosperous and equitable economy. With 30 years of experience in cooperative development and our deep understanding of the unique needs of the communities in our region, CDI develops and supports a wide range of cooperative enterprises including housing, small businesses and start-ups, and worker ownership transitions.

About M&T Bank

M&T Bank is one of the largest banks in the U.S., offering a wide range of financial services to individuals, businesses, and nonprofit organizations. M&T Bank is dedicated to supporting community development initiatives and providing capital to ensure the success of affordable housing projects.

About the Town of Brunswick

Brunswick is a coastal town in southern Maine known for its rich history and commitment to sustainable community development. The town has been a dedicated partner in supporting affordable housing initiatives and preserving the character and affordability of local neighborhoods.

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Blueberry Fields Coop loan closing participants, from left to right: Pat Schwebler, CDI; Greg Payne, Governor Mills’ senior advisor, Housing Policy; Bonnie Zacharias, Blueberry Fields Cooperative resident; Maranda Chung, resident; Zack Walker, resident; Janet Fournier, resident and Blueberry Fields board president; Tom Benoit, resident; Celeste Yakawonis, resident; Liza Fleming-Ives, Genesis executive director; Nora Gosselin, CDI; Don Guild, MaineHousing; Matt Simone, Drummond & Drummond