This week, Regional Housing Legal Services (RHLS) celebrates the efforts of the Hardwood Estates Resident Association to save their community.
Hardwood Estates (also known as Dor-al Estates) is a 91-lot mobile home park located outside of Conneaut Lake, Pennsylvania. The park was abandoned by its owner in December of 2012 as a result of enforcement activity by the Department of Environmental Protection concerning operation of the community water system and illegal dumping.
In January of 2013, the community came together, formed a residents association, and began operating the water system. With the help of PathStone Housing Corporation, the Hardwood Estates Resident Association (HERA) was able to obtain a $25,000 forgivable loan from the Pennsylvania Housing Finance Agency (PHFA) to explore the possibility of purchasing the community, as well as to address the backlog of water testing and health and safety issues. Crawford County Judge John Spataro then appointed HERA as receiver to operate the water system and maintain the park.
With the funds provided by PHFA, the community was able to bring the water system to compliance with state environmental laws. Residents now understand the long-term repair needs of the system as they move forward.
Throughout the process of forming the resident association and buying the property, RHLS Staff Attorney, Bob Damewood, has assisted the Hardwood Estates residents in reaching their goals. RHLS was able to secure a court order awarding the Resident Association with compensation for their volunteer time, the PHFA funds invested into the water system, and the legal services that RHLS provided. This compensation was applied as a priority lien against the Hardwood Estates properties, which enabled the residents to apply the lien toward the purchase price of the park.
The park was sold at a judicial tax sale on April 24 to the Hardwood Estates Resident Association.
Though the residents have overcome a large hurdle with the acquisition, managing the park may pose a challenge, as half of the 91 lots are now privately owned. The private ownership could create difficulty in enforcing community rules and sharing maintenance costs. HANDS of Erie, a nonprofit housing developer, has offered to help the resident association develop strategies to further enhance their living conditions and engage the other owners. Pepper Hamilton LLP has also agreed to provide pro bono legal assistance to help the association draft enforceable rules.
Congratulations to the Hardwood Estates Resident Association for their hard work and perseverance!