How it Works

The Cooperative Conversion Process

Every community presents a different set of circumstances, but in general, this is how the process works:

Feasibility and Purchase Negotiation

CoNorth confirms preliminary feasibility of converting the community to a cooperative by obtaining sales price expectation and operating information from the owner. CoNorth negotiates the terms of a purchase agreement.

Formation of Resident Corporation and Due Diligence

CoNorth assists residents with formation of the resident organization and organizing members. Members elect an Interim Board of Directors. CoNorth helps the Interim Board complete due diligence, organize their newly-incorporated business, and finance the purchase of the property.

Resident Purchase and Ongoing Support

The resident corporation buys the property from the owner. After the purchase, CoNorth provides on-going technical assistance and support to the resident organization.

Negotiations & Applications

The Interim Cooperative Board, with assistance from their attorney, negotiates the terms of the purchase agreement including due diligence period, property exchanging hands in the transaction, final purchase price, and closing date. During the due diligence period provided in the purchase agreement, the Interim Cooperative Board makes application for financing, oversees the contracting of a physical capital needs assessment, a Phase I environmental review, an appraisal, and site survey to confirm that the purchase will be viable and meets the requirements of the lender.

Ongoing Training & Support

CoNorth assists the Interim Cooperative Board throughout its due diligence activities and provides ongoing organizational development training and support to residents in preparation for conversion to a cooperative.

Property Purchase

The Cooperative buys the property from the owner. When appropriate, CoNorth can leverage funds from the Cooperative Loan Fund to assist with the transaction.

Technical Assistance & Project Management Services

After the purchase, CoNorth provides on-going technical assistance and support to the Cooperative. CoNorth is a ROC USA® Certified Technical Assistance Provider (CTAP), one of ten nonprofit organizations performing this kind of community development activity around the country. Since ROC USA’s inception in May 2008, CTAPs like CoNorth have facilitated 343 resident purchases in 21 states, representing over $1 billion in financing.

Meet Our Communities

Is your community for sale?

One of the most common questions we hear is: "Can my community become resident-owned?"

The short answer: It depends on whether your community owner is willing to sell. Unlike a few other states, Minnesota and Wisconsin do not have laws that require community owners to notify residents or provide a right to purchase before selling. That means CoNorth and the communities we work with depend on voluntary sellers who are open to exploring a resident purchase.

Minnesota

In 2023, Minnesota passed the Unsolicited Notice of Sale law. According to the law, community owners must provide prior notice to the state’s housing finance agency and the residents when they receive an unsolicited offer of which they are considering. The key requirements of the law are:

The community owner must notify Minnesota Housing when they receive an unsolicited offer to purchase the community.
The notification must include the price range and material terms of the offer.
The owner must also notify each manufactured home community resident in the affected community via regular mail.
Read the law here.

CoNorth is subscribed to receive notifications when new unsolicited offer notices are posted.

Wisconsin

At this time, Wisconsin has no legislation requiring any form of notice or right of first refusal for manufactured home community residents. Resident purchases in Wisconsin rely entirely on open and willing sellers.

Don’t Know if Your Community is for Sale?

If you're unsure whether your community is on the market—or you're interested in exploring a resident purchase—reach out to us. Email acquisitions@conorth.coop.

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