BARNSTABLE — A Superior Court judge found on Wednesday that Crown Communities LLC is the rightful buyer of a Pocasset mobile home park.
The 15-page decision comes after a years-long legal battle between the Wyoming investment firm and the Pocasset Park Association, with both sides seeking ownership of the Bourne park, which is home to about 170 people at its prime location off Barlow’s Landing Road.
“The Association lacked sufficient support (and authority) to exercise lawfully its right of first refusal and to purchase the park,” wrote Judge Michael Callan, who decided the jury-waived trial.
In a statement to the Times, Walter B. Sullivan, an attorney who represented Crown, said the company welcomed the decision.
“Crown is grateful to the Court for upholding its contractual right to acquire The Park at Pocasset,” said Sullivan. “Further, Judge Callan’s ruling that Crown’s conduct was above reproach during this entire process was expected.”
Christopher Veara, who represented the park owner, said his client’s only comment is “the Charles W. Austin Trust will abide by the judge’s decision.”
Thomas Aylesworth, the attorney representing the association, and Justine Shorey, the Pocasset Park Association president, could not be reached for comment.
What happened with the mobile home park case?
Crown, which owns and operates mobile home parks nationwide, entered a purchase-and-sale agreement with owner Phil Austin, as trustee of the Charles W. Austin Trust, on Nov. 15, 2019 for $3.8 million in an all-cash sale.Notice was sent to residents five days later. Due to the state’s right of first refusal statute, park residents had the chance to submit a matching bid.
Some residents worked with New England Resident Owned Communities that’s partnering with the Cooperative Development Institute.
The organizations assist residents to secure ownership of their mobile home parks and help them get loans to match private bidders and cover any capital projects needed on the site.
They formed an association and began to gather signatures from at least 51% of residents, as required.
The association submitted its own matching offer in December 2019. Their offer contained a mortgage contingency clause in contrast to the all-cash purchase in Crown’s purchase-and-sale agreement, noted Callan.
More:Residents of Pocasset Mobile Home Park look to own the property
Austin executed the purchase-and-sale agreement with the Pocasset Park Association on Jan. 7, 2020, with Crown then filing a complaint in February 2020 against both the association and Austin, bringing the matter to court.
While residents at mobile home communities own their homes, they do not own the land beneath them. Often, the homes are no longer mobile. Before the decision was issued, Shorey told the Times that resident ownership would mean assurance the park would not be sold out from under them.
There were not enough valid signatures, according to court decision
Callan wrote that the petition did not “contain valid signatures of at leat 51% of the resident owners of the park.” With 81 units in the park at the time, each unit gets one vote, meaning the association needed at least 41 signatures.
Forty-nine signatures were collected, with four being duplicates. Another five signatures were of subtenants who were residents but not owners, and five more were of owners but not residents, wrote Callan.
More:Do you live in a mobile home park that needs money? This bill in Congress could help
Then, four resident-owners rescinded their support, bringing the total number of resident owners favoring the association’s purchase to 31, said Callan.
“Under any view of the credible evidence, the Association did not successfully exercise its right of first refusal,” wrote Callan, saying its purchase and sale agreement with Austin is then not valid.
No credible evidence of threats
During the trial, the association claimed that Crown used “scare tactics” to persuade residents to rescind their support. For instance, one letter to residents warned about an estimated $1 million in improvements and implied that residents would be personally liable, according to the association.
But Callan rejected that position.
“Crown’s agents were advocating for their position and attempting, with varying success, to convince residents that Crown was a better option for them than a cooperative ownership arrangement,” wrote Callan.
More:Confused about ‘affordable’ housing on Cape Cod? Here’s a primer.
Sullivan, Crown’s attorney, said the company is looking ahead to next steps with the Pocasset park.
“Crown Communities prides itself in owning and operating first class manufactured housing communities and it is hopeful that it can now move forward with the residents and create a vibrant and upstanding community that will be one of the finest manufactured home parks on Cape Cod,” said Sullivan.
Zane Razzaq writes about housing and real estate. Reach her at zrazzaq@capecodonline.com. Follow her on Twitter @zanerazz.
Keep connected with the Cape. Download our free app.
Discussion about this post