Resident-Owned Communities (ROCs)
Description and History
Resident-owned communities (ROCs) are manufactured housing neighborhoods where the land is collectively owned and managed by the residents. This model provides a unique form of affordable housing, particularly for low-income families. Approximately 22,000 families live in ROCs across more than 300 mobile home parks in the U.S., which serves as a response to the growing affordability crisis in manufactured housing, where rents continue to rise due to increasing corporate ownership (Rosenberg, 2023; Nonprofit Quarterly, 2023). Manufactured housing, also known as mobile homes or trailer parks, is critical to the affordable housing market in the United States, with about 18 million people living in these homes, earning less than $28,000 a year (Nonprofit Quarterly, 2023). Many of these communities are supported by ROC USA, a nonprofit organization that helps scale resident ownership of manufactured homes and currently supports a network of 10,000 manufactured homes nationwide (ROC USA, 2023).
Resident-Owned Communities, Just Use of Land and Property, and the Community Wealth Building Wedge
By converting manufactured housing communities into ROCs, residents gain ownership and control, leading to increased stability and reduced displacement risk. This model empowers residents, allowing them to manage their community according to their needs and priorities, fostering a sense of ownership and collective responsibility. As landowners, residents can invest in and maintain their neighborhoods, ensuring that improvements and benefits are equitably distributed. ROCs operate under a cooperative model, with the land owned collectively by residents through an elected community board, allowing for democratic decision-making (Nonprofit Quarterly, 2023; Rosenberg, 2023).
Furthermore, ROCs serve as a direct counter to the predatory practices of private mobile home park owners, including private equity firms, that often increase rents and fees without improving community infrastructure. This empowerment is crucial for protecting residents from exploitative behaviors and promoting long-term affordability.
Examples
Pasadena Trails, Houston, Texas: Established in 2009, this ROC allowed residents to purchase their community from an Arizona-based company. They invested in infrastructure improvements, such as a redesigned drainage system, which protected the community during Hurricane Harvey in 2017 (ROC USA, 2023).
Takesa Village, Mead, Washington: Formed in 2016, this ROC addressed issues like crime and neglect prevalent under private management. With support from Capital Impact Partners and the Washington Housing Finance Commission, residents saw significant improvements in community conditions and quality of life.
Challenges and Limitations
Resident-Owned Communities (ROCs) encounter several challenges and limitations that can impact their success and sustainability. Building an engaged and cohesive community within a ROC setting can be particularly challenging, requiring concerted efforts to foster trust, communication, and active participation among residents. Securing financing for both the initial purchase and ongoing maintenance of the community poses significant hurdles, especially for low- to moderate-income residents who may face financial constraints. Overcoming negative perceptions and unfamiliarity with the ROC model among stakeholders necessitates continuous education and outreach efforts to highlight the benefits and viability of resident ownership (Nonprofit Quarterly, 2023).
The absence of supportive policies, such as "right of first refusal" rules that enable residents to purchase their communities when they are up for sale, can impede the establishment and expansion of ROCs. Addressing these challenges requires a multifaceted approach that includes community-building initiatives, financial assistance programs, advocacy for supportive policies, and ongoing education to promote the long-term success and sustainability of ROCs as models of resident empowerment and affordable housing (ROC USA, 2023; Rosenberg, 2023).
Taking it Forward
The expansion and empowerment of Resident-Owned Communities (ROCs) offers significant opportunities to build community wealth. One crucial avenue for progress lies in strengthening community engagement within ROCs, fostering a sense of ownership, collaboration, and collective decision-making among residents. This can be achieved through initiatives that promote resident leadership, build social capital, and facilitate open communication channels within ROCs.
Addressing the financing challenges faced by ROCs is paramount for their sustainability and growth. This entails exploring innovative financing mechanisms, such as community land trusts or cooperative loan funds, to provide residents with access to affordable capital for purchasing and maintaining their communities. Collaborating with local democratic financial institutions, philanthropic organizations, and government agencies can help expand financing options tailored to the unique needs of ROCs (Nonprofit Quarterly, 2023).
Furthermore, advocating for supportive policies at the local, state, and federal levels is crucial for creating an enabling environment for ROCs to thrive. This includes advocating for policies that protect residents' rights, facilitate resident ownership transitions, and provide financial incentives or technical assistance to support the formation and expansion of ROCs.
By advancing community wealth building through ROCs, stakeholders can contribute to creating more equitable, inclusive, and resilient communities where residents have a meaningful stake in their homes and neighborhoods. This entails a collaborative effort involving residents, community organizations, policymakers, and other stakeholders committed to promoting resident empowerment, economic justice, and community well-being through ROCs (ROC USA, 2023; Nonprofit Quarterly, 2023).
Additional Resources