Missoula mobile park residents: ‘We’re an ATM for a soulless investment firm’
Martin Kidston
(Missoula Current) For the second time this month, Missoula County is asking an out-of-state investment firm to meet and discuss the future of two mobile home parks and the impact that recent rent hikes have had on residents.
The letter, sent to Axia Realty Partners based in Dallas, again urges the firm to meet with residents and establish an open line of communication. This time, however, it also asks Axia to consider selling the properties so that residents may establish a resident-owned community.
“Residents in these communities own these homes but rent the land underneath it,” said John Wilke, the county's housing policy specialist. “It means changes to community rules and lot-rent increases make significant differences in terms of their livelihood and quality of life.”
Katoonah Lodges includes 103 manufactured homes while Mobile City includes 62, resulting in a combined 165 households. Monthly lot rent at Mobile City increased in August from $525 to $675 while residents at Katoonah are now being charged $1000 per month. It's the second increase under Axia and marks a 35% increase since the firm took over.
“The residents aren't asking to be insulated from every change under Axia. They're asking to be heard and understand what's coming,” said Wilke. “The purpose of this letter is to encourage more constructive dialog and a more collaborative relationship between Axia and its residents.”
Aside from rent increases, residents have also raised concerns about Axia's lack of communication, or “radio silence,” as the county stated earlier this month. Concerns over deferred maintenance, leases and park rules, and the lack of a reliable local emergency contact have also surfaced.
New residents to Katoonah also pay roughly $250 more than current residents. That has brought few newcomers and made homes hard to sell for those looking to leave.
“This has made homes impossible to sell. We have six properties that sit unsold at this point, one of them for over a year,” said Katoonah resident and retired schoolteacher Linda Osmanson. “Our total loss of equity has spread widespread fear and powerlessness. We've worked all our adult lives. We don't deserve to be an ATM for a soulless investment firm.”
Katoonah Lodges was established in 1992 as an affordable and non-subsidized community for those over the age of 55. With today's cost of housing and land values, residents face few options and are unable to move to another location.
For the property's residents, even a modest, unannounced increase in rent or expenses force difficult decisions.
“It has always been well-maintained by its residents who take pride in their homes and their small community,” said resident Becky Beamer. “Most of us live on retirement incomes, as well as our Social Security benefits. Others live on extremely tight budgets with no wiggle room for unexpected high rent increases.”
The county sent its initial letter to Axia in early August but officials said they have received no response. In its new letter, the county notes that increases affect whether “residents can afford food, prescriptions and other necessities.”
County officials said they are hoping Axia considers establishing a “productive relationship.” Others have suggested that changes need to be made during the upcoming Legislature to protect residents of Montana's vulnerable mobile home communities from outside investment firms.
“We're an investment opportunity for them,” said Mobile City resident Heather Powers.
Axia didn't reply to a media request in early August. Its website is now unavailable.