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Thursday, July 24, 2014

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Cascade: No. 74, Spring/Summer 2010

Minquadale Village: Delaware’s First Resident-Owned Community under New State Law

In July 2009, the Minquadale Village Homeowners Association in New Castle, DE bought its 82-home community for $1.9 million under a new state law that gives homeowner groups an opportunity to purchase their community when it is for sale. Minquadale Village was the first community purchased under the new law.

“Closing on this property sale was a dream come true not just for me but for all my neighbors at Minquadale,” said Ken Shaw, founding president of the association. “We have a lot to showcase. Everyone who 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.”

This manufactured home is part of an 82-unit community in New Castle, DE that became resident owned in July 2009.This manufactured home is part of an 82-unit community in New Castle, DE that became resident owned in July 2009.

According to Keith Timko, director and CEO of Real Estate and Development Services (READS), “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.” Based in Metuchen, NJ and Smyrna, DE and founded in 2003, READS is an innovative nonprofit real estate development company committed to building strong organizations and communities.

Project financing was arranged by READS and the association’s board of directors. Deposit financing was provided by New Jersey Community Capital. Two community development financial institutions, Resident Ownership Capital, LLC and NCALL, provided permanent financing. Resident Ownership Capital closed the project loan with Bank of America warehouse funding and secured participation capital through Community Housing Capital, a nonprofit in Decatur, GA.