Mobile Home Parks in AZ Where You Own the Land

Mobile home parks where residents own their land offer a blend of traditional homeownership and community living. Unlike typical mobile home parks where individuals lease a lot, these communities provide residents with direct ownership of the land beneath their manufactured home. This arrangement shapes financial commitments, property rights, and lifestyle.

Understanding Land-Owned Mobile Home Communities

A land-owned mobile home community means residents own both their manufactured home and the land it occupies, unlike land-lease communities where residents own the home but rent the lot. The owner receives a deed for the parcel, establishing real property ownership.

While residents own their lots, communities feature common areas and shared infrastructure like roads, clubhouses, recreational facilities, and utility systems, managed collectively. Residents become members of a homeowner association (HOA) or similar governing body for upkeep.

Ownership structures vary; some communities operate as condominiums with individually deeded lots. Others are cooperatives where residents own a share in a corporation that collectively owns the park. Cooperatives allow members to decide on park operations, fostering shared responsibility and community.

Arizona Specific Property Considerations

In Arizona, owning a mobile home within a land-owned community involves specific property considerations, particularly regarding taxation and title transfers. All mobile homes in Arizona are subject to property taxes. If a mobile home is permanently affixed to land owned by the same individual, an Affidavit of Affixture can be filed with the county recorder.

This legal document changes the home’s status from personal property to real property, meaning it is taxed along with the land. Once recorded, ownership of the manufactured home becomes tied to the land, transferring automatically with any deeded action on the property. If not affixed, a mobile home remains personal property and is titled through the Arizona Motor Vehicle Department (MVD).

When moving a manufactured home, a 504 Tax Clearance from the Assessor’s office is legally required to ensure all applicable taxes are paid. Property taxes in Arizona are levied based on the limited property value and are paid in two installments, due October 1st and March 1st.

Transferring the land title follows standard real estate procedures, requiring a deed such as a General Warranty Deed or a Quitclaim Deed to convey ownership. Ensure the property is free of liens or encumbrances before transferring the deed.

For the mobile home’s MVD title, if it hasn’t been affixed, the seller’s signature must be notarized, and the buyer must present identification and prior title. Transfer is completed within 15 to 30 days of purchase. Arizona’s Mobile Home Parks Residential Landlord and Tenant Act does not apply when the owner owns both the home and land.

Financial Aspects of Ownership

Purchasing a mobile home within a land-owned community involves financial considerations beyond the initial sale price. The acquisition cost includes the price of the mobile home and the land lot, which can range from $35,000 to $75,000 for the land. Buyers should also account for standard real estate closing costs, similar to those for a traditional site-built home.

Ongoing expenses include annual property taxes, which combine the valuation of both the home and the land once affixed. Financing options for these properties resemble those for conventional real estate. If the manufactured home is permanently affixed to the owned land, buyers can secure a traditional mortgage loan that covers both the home and the land.

Government-backed options, such as FHA Title II loans, are available for homes on owned land and may require a credit score of 580 or higher for a 3.5% down payment. Fannie Mae and Freddie Mac also offer programs like MH Advantage, which cater to manufactured homes on owned land with specific credit score and down payment requirements.

Beyond the purchase and mortgage, residents incur recurring fees, primarily homeowner association (HOA) fees or community maintenance charges. These fees range from $100 to $300 per month, varying by amenities and services. HOA fees cover upkeep of shared amenities like clubhouses and pools, common area maintenance, and sometimes utilities like trash removal.

These fees do not cover individual property taxes, home insurance, or personal lawn care, which remain the homeowner’s responsibility.

Community Structure and Rules

Land-owned mobile home communities are governed by homeowner associations (HOAs) or similar resident-controlled entities. These associations are structured as non-profit corporations, with a board of directors elected by residents to manage the community’s shared aspects.

In resident-owned communities (ROCs), homeowners collectively own a share in the entity that holds title to the park, giving them a direct voice in its management and major decisions through democratic voting. This collective ownership provides residents with greater stability and control over their living environment.

The HOA establishes and enforces rules and regulations designed to maintain property values, ensure a consistent aesthetic, and promote harmonious community living. These rules address aspects such as exterior home maintenance, landscaping standards, pet policies, vehicle parking guidelines, and noise restrictions.

The purpose of these regulations is to uphold community standards and protect the collective investment of all homeowners. HOAs manage shared resources and uphold community guidelines, providing a framework for residents to participate in the governance and future direction of their community.