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Three manufactured home parks that house 1,500 families are for sale, and legislation that would give homeowners a first shot at buying their parks might have come too late.
According to a July 14 letter sent to homeowners of Rehoboth Bay Community, Angola Beach and Angola Estates, the three parks have been sold.
CJH Ventures, which owns the parks, said a sale took place June 27 – a day after the House passed House Bill 504, which requires park owners to notify homeowners of any decision to sell their parks or acceptance of any offer. H.B. 504 was signed by Gov. Ruth Ann Minner on Wednesday, July 9. The letter states, “We are writing to inform you that on June 27, we accepted an offer to sell the community, and we entered into a definitive purchase-and-sale agreement with the buyer on that date.”
It further states, “We want to thank all of our residents for the many years we have had together, and will do everything within our ability to ensure that this will be a smooth and orderly transition.”
The letter does not say who bought the parks. Sussex County Recorder of Deeds has recorded no deed from CJH Ventures at press time. Messages seeking comment from Chris Hudson were not returned. Anita Ossman from Rehoboth Bay Community’s office said, “When the deal is finalized a press release will be issued.” She declined to comment further.
Ed Speraw, president of the Delaware Manufactured Home Owners Association, told Rehoboth Bay Community homeowners at a Saturday, July 19 meeting that he questions the legality of the sale. “I don’t know what you know about this deal, but it did not happen on June 26 or 27. Everybody thought they were comfortable. They thought, ‘We don’t have to worry.’ Well, today is a different day,” Speraw told the homeowners.
Trying to buy parks
Dixie Boucher, president of Angola Community Homeowners Association, which oversees Angola Beach and Angola Estates, said about 600 homes are located in the two parks. She said in December, her homeowner association made an offer to buy the Long Neck parks for $35 million. After meeting with Craig and Jamon Hudson, she said park owners told her the sale would not include the marina or the park in its entirety.
After consulting with a real-estate lawyer on behalf of the association, she decided to withdraw the offer.
“When we submitted a letter of rejection, we said we would continue to be interested in buying the parks as a whole,” Boucher said. She said the association’s letter said homeowners would like to be advised of any potential sale. “The point is, we did leave it open,” she said.
Boucher said she received a letter informing her of her park’s sale July 16. She said she plans to meet with fellow homeowners Saturday, Aug. 2.
Rep. Pete Schwartzkopf, D-Rehoboth Beach, said he’s received dozens of calls from worried homeowners. “If they have a contract date prior to July 9, then they do not have to abide by the new law. If it’s a contract for sale – that’s one thing. If it’s an offer, I don’t know,” he said. “In my mind you have to question the timing of the whole thing. I have to question their commitment to the tenants, their sincerity,” he said.
Schwartzkopf said he attended a July 2 homeowner meeting that was also attended by Craig Hudson. “They don’t have to tell us anything about the negotiations prior to this law, but I question his motive and sincerity and his character when he attends a meeting and doesn’t say anything.”
Speraw said attorneys are trying to determine whether the sale is legal in light of the new law. Chris White, an attorney with Community Legal Aid, an organization representing the homeowners, said, “What it does is give ammunition to homeowners to say that some park owners were not committed to the negotiation process,” said White.
“Here we are negotiating in good faith to put a process in place that both sides feel is very important. But then you have some players that are short-circuiting the process in selling the communities before the law can take effect,” said White. “Why not give the homeowners a chance. What in the world do they have to lose?”
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