OCTOBER 26, 2009: THE SILVER LINING FOUNDATION IS SET TO DONATE AROUND 200 MANUFACTURED HOMES TO HURRICANE DISASTER VICTIMS ACROSS THE STATE OF LOUISIANA. CLICK HERE TO LEARN MORE.
BACKGROUND:
The existing FEMA Manufactured Home Donation Program allows for non-profits to receive donated manufactured housing units for the purpose of providing continued housing for disaster victims. The Silver Lining Foundation is a participant in this program. The foundation's initial goal is to provide continued housing followed by permanent home ownership for disaster victims.
THE SILVER LINING FOUNDATION DONATION PROGRAM DETAILS:
The terms and conditions of the agreement between the disaster victim and The Silver Lining Foundation are as follows:
- The disaster victim shall sign a one year lease with the commercial manufactured home community where the unit is located and occupy that unit during the lease period.
- During the one year lease period the disaster victim shall be responsible for the payment of lot rent plus a $75/mo program administrative charge, utilities, insurance, applicable taxes and maintenance and upkeep of the unit.
- Upon successful completion of the one year lease agreement, The Silver Lining Foundation shall transfer the title to the unit to the disaster victim with no strings attached.
PROGRAM FUNDING:
The Silver Lining Foundation donation program provides the private sector with a viable business opportunity to fund the process of placing home ownership in the hands of individuals and families that desperately need it in return for the expectation of a reasonable return on their investment through the receipt of lot rent over time. Here’s how it works:
The estimated average cost of $3,000 for the delivery and setup of each donated unit shall be born by the commercial manufactured home community where the unit is located. (The owner may choose to pass this expense on to the disaster victim.) While there is no guarantee that the unit will remain in the commercial community after the initial one year lease period, the reality is that most manufactured homes remain in their original set up location for many years. Therefore, the community owner can realistically expect to recoup its investment and then reasonably profit from the arrangement over time through the collection of lot rent.
To the extent that a unit becomes vacant during the term of the initial lease, the commercial property owner shall agree to allow another eligible disaster victim to occupy that unit under the same terms and conditions as outlined above. To the extent that no eligible disaster victim applies to occupy the vacated unit, the commercial property owner shall agree make that unit available to low income persons (per HUD standards) under the same terms and conditions as outlined above. All units provided under this program are to end up in the ownership of those in need. The commercial property owner will have no opportunity to acquire the unit or profit from the relationship other than through the collection of lot rents.
WHY DONATE INSTEAD OF DEACTIVATE?
FEMA has placed tens of thousands of manufactured homes in disaster areas for temporary housing of disaster victims. The cost of purchasing and installing these units has already been allocated and spent. FEMA is now actively deactivating these disaster housing units and transporting them to FEMA staging areas at an estimated cost of $8,000 per unit, plus another $2,000 per unit to store and process each for resale. With a historical average resale price of $8,000 for similar units sold via the GSA website (http://gsaauctions.gov), the best course of action is to donate these units to disaster victims at no additional cost whatsoever to the taxpayer.