READS awarded affordable housing grant by state of Delaware

Nonprofit given $68,000 to aid work with manufactured home communities

METUCHEN (July 31, 2009) — Real Estate Advisory and Development Services Inc. has received a grant for its work to preserve affordable housing in Delaware.

The grant, part of Community Services Block Grant American Recovery and Reinvestment Act funds, was awarded earlier this month. It provides $100,000 to READS and its two Delaware-based partners Community Legal Aid Society Inc. and the Delaware Mobile Home Owners Association. The nonprofit agencies have been working in partnership to advance resident ownership of manufactured home communities in Delaware. The portion of the grant designated for the work of READS in Delaware is $68,000.

“Manufactured home communities are an important source of affordable homeownership for thousands of families,” said Brian Keenan, president and founder of READS. “In Delaware alone, there are nearly 300 such communities that are home to 72,000 families. Empowering the families who live there to also be the owners of their communities means that the state will be able to enjoy the benefits of having manufactured home communities well into the future.”

The viability of manufactured housing in Delaware as a form of affordable homeownership is at risk due to escalating rents, changes in land use, deterioration of communities, and lack of consumer protections for owners of manufactured home. The traditional arrangement, where homeowners own their homes but rent the land beneath them, leaves homeowners vulnerable to these threats.

These threats vanish when the residents own the communities themselves.

The three organizations recently celebrated the completion of their first partnership, when they marked the successful conversion of Minquadale Village in New Castle, Del., from a privately owned community to one owned by the families who live there.

In initiatives supported by the grant, the three partners are following the pattern set by their success with Minquadale, by educating homeowners about the benefits of resident ownership and their rights under Delaware's Right of First Offer law, which gives homeowner associations in manufactured home communities priority in buying their community when it comes up for sale; by helping them through the process of buying their communities, from incorporating into a homeowners association and finding financing for the purchase; and by making them see to any repairs or upgrades to the infrastructure of the community, when needed.

“By helping to form resident-owned communities, READS and our partners will help to revitalize those communities through a grassroots effort,” said Keenan. “We hope to help two more communities make the transition to resident ownership in the next year, giving some 200 families a new measure of long-term security as they build equity and preserve the long-term value of their homes.”

An innovative nonprofit real estate development company, READS is committed to building strong organizations and communities through innovative real estate development. Since its inception in 2003 READS has assisted dozens of nonprofits in developing their facilities to meet their social service needs. READS provides all phases of real estate development and technical assistance including financial structuring and project management.

For more information, call Keenan at (732) 635-1000.

On the web:
www.readsusa.com

Lt. Governor Denn, legislators to be honored at Minquadale Village

FOR IMMEDIATE RELEASE

NEW CASTLE, Del. (July 16, 2009) -- Lt. Governor Matt Denn will appear at a ribbon cutting ceremony at Minquadale Village, 600 Wildel Ave., New Castle. The ceremony will run from 10:30 a.m. to noon.

Also being honored at the event are Representative Valerie Longhurst, D-Bear, former Representative Robert Valihura,R, Talleyville, and state Representative. Pete Schwartzkopf, D-Rehoboth; and state Senator. George Bunting, D-Bethany Beach.

The lawmakers have all been noted supporters of manufactured home communities and the homeowners who live there.

The ceremony will celebrate Minquadale Village as the first manufactured home community in Delaware to be owned by its residents under the state's Right of First Offer law, which was approved by the state Legislature last year.

The law, which give manufactured-home owners the opportunity to purchase their communities and allows them to take control over their communities if for sale. It is an important milestone in preserving affordable housing in Delaware.

Also present will be representatives of Real Estate Advisory and Development Services Inc. of Metuchen, N.J., the Delaware Mobile Home Owners Association, and Community Legal Aide Society Inc. The three organizations provided instrumental guidance and assistance to the Minquadale Village Homeowners Association in their efforts to buy the Minquadale property.

For more information, call Real Estate Advisory and Development Services at (732) 635-1000, ext. 152, or DMHOA, at (302) 678-3288.

Work begins on Marion P. Thomas Charter School elementary expansion

READS prepares Central Ward school site for addition of 12 classrooms, more

FOR IMMEDIATE RELEASE

NEWARK (July 9, 2009) — With construction now under way, Marion P. Thomas Charter School has begun the second stage of an expansion project that ultimately will more than double its enrollment.

Real Estate Advisory and Development Services Inc., a nonprofit from Metuchen, led the school in breaking ground on a project that will add 12 new classrooms and an all-purpose room to its elementary school on South Seventh Street. This past September, READS arranged financing for the school to buy 14 vacant properties around its elementary facility, as well as 14 modular units to place on the site.

"It's good to see this day arrive," said Jeff Crum, vice president of real estate development at READS. "Just like other charter schools around the state, Marion P. Thomas Charter School needs space for enough students to sustain itself. Once we finish this project, Marion P. Thomas Charter will have room to grow."

The modular units, with spacious classrooms and a large multipurpose room, will be permanent additions to the site, creating a campus for the growing school. The project will include landscaping and a finished facade that will match the existing school building. The project will allow the school to increase its enrollment from 360 students to 480.

This stage of the expansion project is costing the charter school $3.42 million, all financed by New Jersey Community Capital. READS arranged the financing, helped the charter school buy 14 vacant properties around its South Seventh Street property, and managed the design and purchase of the 14 modular units. READS also has been overseeing other details of the project for the school, including environmental site remediation that has involved removing used oil tanks and contaminated soil.

"There can be a lot of unpleasant discoveries and surprises when you redevelop a site in a city. Schools are primarily concerned with providing a first-class education to their students. They shouldn't have to worry about site cleanup and soil remediation," said Crum. "READS has the professional knowledge and experience so that they don't have to."

The work is the second phase of an ongoing $30 million expansion project READS is overseeing for the school. The first phase was the purchase of the school's current building, for $2.5 million. When the third phase is complete, the school also will have a new 70,000-square foot newly constructed facility on a 3½-acre site on Sussex Avenue. Between the new facility and the extant buildings, the school plans to grow its enrollment to 900 students.

Founded by Vision of Hope Community Development Corp., Marion P. Thomas Charter School is a free public school serving students in kindergarten through eighth grade. Since it first opened, in September 1999, the charter school rented two separate facilities before it located its current home.

READS is a nonprofit real estate development company committed to building strong organizations and communities. Since its inception in 2003 READS has helped more than a dozen charter schools to obtain and build facilities that meet their needs.

READS provides all phases of real estate development and technical assistance, including financial structuring and project management. READS has been recognized by the New Jersey Department of Education with the Corporate Partnership Award for its work with charter schools and by the U.S. Department of Education as a promising practice in real estate development.

For more information, call Crum at (732) 635-1000, or call the charter school at (973) 621-0060.


On the web:
www.readsusa.com
www.myccsp.org

READS founder named one of state's top forty businessmen under 40

NJ Biz honors Keenan for professional excellence, commitment to community

FOR IMMEDIATE RELEASE

METUCHEN (July 9, 2009) -- Brian Keenan, a Metuchen resident and businessman, has been named a recipient of the 2009 Forty Under 40 award by NJ Biz.

Keenan, who lives on Lee Court, founded Real Estate Advisory and Development Services six years ago. A not-for-profit real estate firm, READS has been an advocate and supporter of charter schools across New Jersey since its inception, and in the past 12 months has been expanding its efforts to include affordable housing throughout New Jersey and in Delaware as well.

“I am at once humbled and deeply honored to receive this award,” said Keenan. “With all the worthy causes and dedicated people in the business world and in the nonprofit sector, I never expected that I would be singled out for an honor like this. This award has really moved me.”

Run by NJBiz, the Forty Under 40 program recognizes businessmen and businesswomen with a commitment to business growth, professional excellence and to the community. Keenan and the other designees will be honored in a ceremony at 6 p.m. Sept. 10 at The Palace at Somerset Park in Somerset.

READS is a nonprofit real estate development company, based in Metuchen and committed to building strong organizations and communities through innovative real estate development. Since its inception in 2003, READS has helped dozens of charter schools to obtain and build facilities that meet their needs.

It most recently made headlines in Delaware for its work with the Minquadale Village Homeowners Association, which it helped to become the first association of its kind in Delaware to buy the property where the community was located.

For more information, call Christina Oztan at READS, at (732) 635-1000, ext. 155.

On the web:
www.readsusa.org

Minquadale Village homeowners make state history

Association buys community property, making it resident-owned

FOR IMMEDIATE RELEASE

NEW CASTLE, Del. (July 2, 2009) – With the stroke of a pen Thursday, Minquadale Village became not only a great place to live, but a piece of history as well.

Ken Shaw, president of Minquadale Village Homeowners Association, on Thursday afternoon signed off on a $2.1 million deal that made the association the legal owner of the community where its members live. It is the first manufactured home community homeowners association in Delaware to take this groundbreaking step, under "The Right of First Offer" law passed last summer.

"Closing on this property sale was a dream come true not just for me but for all my neighbors at Minquadale," said Shaw. "We owe a debt of thanks to everyone who has made this possible. From the Delaware Manufactured Home Owners Association and Community Legal Aid Society Inc., who helped to pass the law that gave us the opportunity to buy our community; to READS, whose guidance and help got us to this point; we've had a great deal of support, and we’re grateful."

The homeowners association will celebrate the successful conversion of the community to resident ownership, on July 18. The event will include representatives from READS and some of the other organizations that assisted in the conversion effort, including ROC USA, New Jersey Community Capital, Community Legal Aid Society Inc. and Delaware Manufactured Home Owners Association.

"We have a lot to celebrate," said Shaw, "but we have a lot to showcase also. Everyone who already lives at Minquadale already knows how wonderful it is, but we have room to grow. There are homes for sale, and there are vacant lots for other people who want to buy into what we have here."

With manufactured homes making up about 15 percent of the housing stock in Delaware, the purchase of Minquadale Village by its residents is significant to more than just the proud new community owners.

"Manufactured housing is the largest block of affordable housing in the state that does not require a government subsidy,” said Ed Speraw, president of the Delaware Manufactured Home Owners Association. “Unlimited yearly rent increases creates financial evictions and increases the burden on the Delaware State Housing Authority. Minquadale homes will now remain affordable.”

The Minquadale association's right to purchase the property comes as a result of legislation approved only last year. Under the law, a manufactured-home owners association has the right of first offer when the community's owner decides to sell the property. The law also bars the owner from selling the property to a third party unless they outbid the homeowners association.

Passage of the law came after a concerted effort. The Delaware Manufactured Homeowners Association long advocated for the bill; state Representative Valerie Longhurst gave it the 11th-hour support it needed to pass through the Legislature; and the Community Legal Aid Society gave legal assistance that Speraw called invaluable.

“It's not exaggeration to say that without the support of Chris White, the executive director of Community Legal Aid Service, this law would not have passed and the Minquadale purchase would never have happened,” said Speraw of the Delaware association. “White prevailed on Wilmington Attorney Steve Goldberg for assistance in preparing the documents needed for the sale, and when the sale faced a serious court challenge, White was able to obtain pro bono legal help to uphold the law and guarantee the right of the homeowners to buy their community.”

READS, a not-for-profit real estate firm in New Jersey, became involved with the Minquadale purchase last summer. Since those initial meetings, representatives of READS have provided a host of services to the residents. In addition to helping the homeowners incorporate so they could buy the community, READS also arranged for pro bono legal representation; found financing for the mortgage, through ROC USA Capital; and managed the entire purchase process.

Keith Timko, vice president of real estate and innovative programs at READS, predicted that the successful conversion of Minquadale to resident ownership would serve as a role model to homeowners in other manufactured home communities when their communities go up for sale.

"By taking ownership of the property themselves, the Minquadale homeowners not only have guaranteed the future of their community, they've begun to build equity in their property, and they've gained control over what happens there in the future," said Timko.

READS will continue to assist the homeowners association by providing board governance and technical assistance, including matching the association with engineering firms that can provide professional assistance.

Based in Metuchen, N.J., READS was founded in 2003 as an innovative nonprofit real estate development company committed to building strong organizations and communities through innovative real estate development.

ROC USA already has helped more than 100 homeowner groups nationwide to incorporate and buy the property where they are based.

Community Legal Aid Service is a private, nonprofit law firm that provides free civil legal services to assist low-income and other qualified clients in becoming self-sufficient. Based in Wilmington, the firm serves clients 60 or older, and clients with low incomes or with disabilities.

The Delaware Mobile Home Owners Association is the only statewide organization representing manufactured home owners on leased land. Starting out in Sussex County, the association has been successfully advocating in changing laws to protect manufactured-home owners. This year another milestone was reached when the governor signed a bill banning mandatory once-a-year rent payments.

For more information, call:

Keith Timko of READS at (732) 635-1000, ext. 152.

Ed Speraw, at (302) 245-5200, or Fred Neil at (302) 678-3288, of Delaware Manufactured Home Owners Association

Chris White of Community Legal Aid Society at (302) 575-0660, ext. 221

Paul Bradley of ROC USA at (603) 856-0709

Ken Shaw of the Minquadale Village Homeowners Association Inc. at (302) 463-0239.


On the web:
Community Legal Aid Society Inc.
www.declasi.org

Delaware Manufactured Home Owners Association
www.dmhoa.org

Real Estate Advisory and Development Services
www.readsusa.com

ROC USA LLC
www.rocusa.org