This article is a collaboration by The Shoestring and the Montague Reporter, and was featured in the latter’s September 19, 2024 edition.
SPRINGFIELD – In Massachusetts, it is illegal for a city or town to regulate how much a private property owner can charge for rent – except at mobile home parks.
In 1994, state legislators narrowly passed the Rent Control Prohibition Act, which dissolved municipal rent control boards and made local regulation of rental rates, or the price of services provided to tenants, illegal. Mobile home parks and publicly-subsidized housing were excluded from the ban because they tend to house some of society’s most vulnerable: the elderly, disabled, or poor. Residents at mobile home parks typically rent the land, which comes with water, electricity, and sewer hookups, and own the homes they park on it.
In Ludlow, Orange, and elsewhere across the state, rent control boards are arbitrating bitter struggles between landowners seeking rent increases, and residents who say they fear being priced out and losing their homes. The housing advocacy organization Springfield No One Leaves (SNOL) is helping tenants at several parks in western Massachusetts organize to fight rent hikes.
“Manufactured home parks are really one of our last truly affordable homeownership opportunities,” SNOL director Rose Webster-Smith told the Reporter. “People who built these communities should be allowed to stay in these communities – they shouldn’t be priced out.”
Last week, residents of the West Street Village Mobile Home Community in Ludlow rallied with SNOL members outside the Springfield housing court ahead of a hearing to appeal their city’s approval of a 142% rent increase.
Veteran Springfield housing rights attorney Joel Feldman is representing the residents. “We don’t take these cases unless we believe they are wrongly decided,” Feldman told the Reporter. “This was another situation where the landlord had a lawyer, and the tenants didn’t.”
The West Street Village tenants allege that owner Tom Lennon provided the rent control board with inflated business expenses and appraisals to justify the increase. The decision to approve the hike was “arbitrary and capricious” and should be reversed, according to Feldman’s court filing, because the board failed to follow proper procedures, and lacked the proper evidence needed to justify the increase.
Members of the board must file a deposition, Feldman said, and a decision on the appeal is expected soon.
“It’s not my job as a legislator to legislate the morality of people, but my goodness, I’ve never seen this type of greed,” said state representative Aaron Saunders, whose district includes Ludlow. “I can’t get past that type of thing happening to folks in our community.”
Saunders grew up in Ludlow, not far from West Street Village, and when he heard Lennon planned to raise the lot rent from $207 per month to $500.06, he and state senator Jacob Oliveira visited the park to hear from residents. They learned that many people in the development have been dealing with significant electrical, sewer, and heating issues that they say Lennon has failed to address.
“Setting aside the greed, the obscene greed, that’s in play here,” Saunders said, “I’m hopeful that the housing court sends a clear message – not only to Tom Lennon, but to anybody else who would try to fudge numbers to try to extract more money from folks who can afford it the least.”
Ripple Effect
Two years ago, motivated by conditions at the park and the prospect of rent hikes, West Street Village residents formed a tenants’ association with help from SNOL. Ethan Field, a longtime resident who started talking with his neighbors about the issues, became a leader of the group.
“I said, ‘You have problems, and so do the rest of us, and it’s in all of our best interests to come together to fight this thing,’” Field told the Reporter. “This is an aging park in need of repair, with zero amenities, but it is the highest-priced all-ages community of its kind in the greater Springfield area… This has a potential ripple effect, across the board, for [setting] the new bar for so-called affordable living.”
Lennon did not respond to repeated requests for comment. The sole listed manager of the southeastern Massachusetts-based real estate investment firm Gold Rush Properties 1, LLC, Lennon purchased the Ludlow park in 2021. He also owns the Hillside Valley Mobile Home Community in the same city, and the Residences on Mill Pond in West Stockbridge.
“He just seems money-hungry,” said Russ Lemon, a resident at Hillside Valley, where the monthly lot rent increased from $288 to $386 after Lennon’s arrival. “There is just no consideration for the people here, many like myself who are disabled or of retirement age.”
Unlike in Ludlow, the West Stockbridge rent control board closely scrutinized Lennon’s application for a 230% rent increase at the Residences on Mill Pond, and in May denied his request. Lennon is now appealing that decision, Webster-Smith said.
In Chicopee, tenants at Bluebird Acres Mobile Home Park are currently appealing an approved increase, while at the same time some are trying to purchase the park and establish it as a cooperative. Feldman and SNOL organizers, who are helping with both efforts, said they believe Lennon is also trying to purchase Bluebird Acres, and possibly two additional parks in the region.
“We’re seeing a lot of these Boston investors coming out and buying property in the area, and it’s going to gentrify it,” Webster-Smith said. “A lot of our seniors are living in these parks, a lot of our differently-abled people… People are desperate right now. We have a huge housing crisis, and a huge shortage of affordable housing.”
Dead on the Hill
Today, about two dozen of Massachusetts’s 351 municipalities have mobile home park rent control boards. The laws establishing the entities are typically decades old, and many towns struggle to fill them with volunteers willing and able to follow complicated – and high-stakes – decision-making procedures.
“Unfortunately, many rent control boards don’t do this correctly,” Feldman said. “It’s really a shame, because it’s very important to the lives of the people living there.”
In recent years advocates have had a hard time getting housing protection legislation through the Joint Committee on Housing. Six bills filed in the most recent legislative session would have implemented some form of rent control in the Commonwealth, according to Webster-Smith, and each of them ended in a study committee.
One bill sent to study, co-sponsored by Springfield senator Adam Gomez and supported by the Homes For All Coalition, would have repealed the ban on rent control statewide. The city councils of Boston and Somerville have requested permission to enact rent control on a local level, but were not approved. Another bill would have created a “rental arbiter” position within the attorney general’s office, while another would have capped the rent increases that can be imposed on senior citizens.
“What the hell is our state legislature doing?” Webster-Smith said. “If you look at the amount of bills that were filed versus what is passed, what are we doing?”
Legislative pressure is also being applied from the industry side.
“[W]hile rent control is often initially viewed as a safeguard to protect residents, it ultimately undermines the stability it seeks to create,” Lesli Gooch, CEO of the Manufactured Housing Institute, told the Reporter. “In reality, rent control policies result in decreased investments for necessary community repairs and upgrades, and negatively impact residents.”
Hometown America, an Illinois-based corporation that owns 80 manufactured home communities in 12 states, has spent $300,000 since 2021 lobbying to change the Massachusetts law requiring that all residents of a mobile home park be charged the same rent, WBUR’s Simón Rios reported this summer.
Residents of Miller’s Woods and River Bend, a manufactured-home park for seniors in Athol, have partnered with tenants of another Hometown park in Middleborough to sue the company for not complying with the uniformity law. Hometown, which has lost once in court, is now trying to overturn the law.
This year, for the second session in a row, a bill to create a mobile home park rent control board in Athol was sent to study. Attleboro and Plainville have also passed home-rule petitions in recent years to establish rent control boards, with little success.
“It’s a difficult policy to pass but a little frustrating as there is a rent control board in Orange for a similar property which lies a mile or so away as the crow flies from the River Bend,” state representative Susannah Whipps wrote in an email to the Reporter.
Rates of Return
Orange’s rent control board has been meeting since June to decide on a proposed 43% rent increase at that park, Leisure Woods Estates. It would be the second significant hike in two years, and Leisure Woods management is requesting that it be applied retroactive to the date of their initial request last fall.
In justifying the request, the company’s lawyer has suggested that due to the depressed economic condition of Orange, “a higher rate of return is warranted as such conditions pose more of a risk.”
“There’s going to be a lot of homeless people with no housing to go to,” Orange Council on Aging director Tracey Gaudet testified at a June hearing. “I just can’t imagine where the money is going to come from, or how these people are going to survive.”
At the Orange hearings, several residents expressed frustration with the park owner, particularly concerning paving, tree removal, and stormwater management. After being asked for more information to justify the increase from $410 to $588, including vendor invoices, Leisure Wood’s management is threatening to sue the town.
Glenn Gidley, who co-owns Leisure Woods and six other parks in New Hampshire and Massachusetts, also owns Salem Manufactured Homes, which builds, transports, and sells homes to park residents. The company’s website describes it as a “thriving, vertically integrated family business,” though Gidley has testified that the companies are entirely separate.
Years ago, Feldman helped Leisure Woods residents win a suit forcing the owners to address flooding, neglected road maintenance, and other infrastructure concerns. Longtime resident Alfred Henderson was one of the plaintiffs. Today Henderson, a widower in his 90s, says that if the rent increase is approved in full, he plans to pay the difference into an escrow account until the matter is appealed in court, and he hopes others will do the same.
An Uneven Game
Eviction from a mobile home park is a much faster and less forgiving process than a foreclosure. Residents are frequently left with no way to relocate the structures they own, which once arrived on trailers but are now immobile.
“The [park] owners have tremendously more leverage in that situation than they do in any other landlord-tenant relationship,” Saunders argued. “And then, not only are these folks without a place to live, but the value they did have in their property is sold for a fraction of what it’s worth.”
Since Tom Lennon’s purchase of Ludlow’s West Street Village park, a number of residents have moved out and sold their homes to him. According to Ethan Field, new arrivals then bought the homes from Lennon for a much higher price.
“Many who purchased from him also financed through him,” Field added. “It’s not only lot rent – they also pay a mortgage directly to him.”
Field said many of his neighbors feel “trapped,” paying too much in rent but unable to move or sell their homes. “The astronomically high lot rent, for what you’re getting, is preventing you from selling it at a reasonable fair market rate,” he said. “You may be stuck having to take some incredibly low offer.”
Webster-Smith also accused Lennon of trying to intimidate and discourage residents at his parks from organizing. Tenants, she said, have been told to call Lennon – or the police – if anyone knocks on their door to discuss issues with management.
“These are all human beings that live in these parks, and they deserve to be treated as such,” she said. “Every tenant has the right to organize.”
Saunders lauded the West Street Village residents for their ongoing efforts. “They have done incredible work, and they have done it in the face of veiled threats and pushback, and every type of divisive tactic you can imagine,” he said. “They stuck with it, and getting that far is an inspiration. It should be a model to folks in other parks to see how to do it right.”
The rent control cases in Orange and Ludlow are ongoing, and decisions could be made in the coming weeks. The Orange board will continue to deliberate on Leisure Woods’s proposal at its next meeting on September 24, and a decision on the Ludlow appeal is expected at the end of the month.
“The case is going to be instrumental in directing us in what changes need to be made to this statute in Ludlow,” Saunders said. “If they say, ‘Yes, this thing is unfair, and it’s greedy, but it’s not illegal,’ then we need to have a conversation about what needs to change.”
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