Bermuda Estates: Innovation in Affordable Housing

May 24

Project Impact: Innovation in Affordable Housing

Manufactured homes are an important source of affordable housing across the country, yet the benefits offered by these communities are often obscured by low-quality homes, deteriorating infrastructure, and the stigma surrounding mobile homes and trailer parks. However, a refreshing new take on these communities is being embraced by the affordable housing industry nationally.

Over 20 million Americans live in manufactured housing or mobile homes—a number that continues to grow as rents rise across the country. Homeowners value their manufactured homes because they’re affordable, detached, and include some private yard space. A one-story floorplan accommodates mobility challenges and enables aging in place. Average monthly costs for these households are hundreds of dollars lower than regional averages.

While programs like LIHTC and Section 8 have been successful at increasing affordable housing options and defraying rising rents, they only extend so far. Affordable housing providers seeking to meet the immense immediate needs of communities across the country are exploring manufactured housing as a market-provided option that is affordable and efficient.

However, there are also significant challenges associated with preserving manufactured housing communities, primarily the issue of land ownership. Mobile homes are expensive to move; while residents may own their home they often do not own the land underneath and lack the security of owning a piece of real estate. This means that residents are subject to outside management hired by owners whose interest in the park is increasingly for its real estate value rather than for the residential community. Many mobile home parks are commercially owned, meaning that when the owner decides to sell the land for development residents are forced to come up with funds to relocate or abandon their home.

In response to these problems VCDC affiliates are partnering with project:HOMES on an innovative project to integrate manufactured housing into the affordable housing stock for families in the Richmond region.

In September 2020 VCDC affiliates and project:HOMES teamed up to purchase and preserve the Bermuda Estates Community, a 7.8 acre mobile home park in Chesterfield County. With additional funding from Chesterfield County, the Bob & Anna Lou Schaberg Foundation, Virginia Housing, Virginia LISC, and the Robins Foundation, project:HOMES will redesign the community, improving its 50 units of various ages and states of repair, and replacing many with a new type of manufactured housing that is significantly more durable, safe, and efficient.

Improving the infrastructure of the community by upgrading drainage, increasing park lighting, repaving the roads, and updating the water and sewage systems is a focus of the project. Plans are also in place to create a community meeting space as well as outdoor space for relaxation, gatherings, and play.

In conversation with Richmond Magazine in October 2020, project:HOMES VP of Affordable Housing Development, Marion Cake, discussed the problems with the current business model for manufactured homes, where units are built like cars, depreciate like cars, are difficult to maintain, and do not hold their value beyond about 15 years. project:HOMES plans to change this by working directly with a manufacturer. “The goal is to design a mobile home with a focus on long-term durability and ease of maintenance,” Cake said.

The new model for Bermuda Estates provides hope that better homes, improved park infrastructure, amenities, and resources and new ownership will create more opportunities for the current residents to be part of their community management and eliminate the stigma surrounding manufactured home communities.

You can stay updated on progress and updates about Bermuda Estates here.