Economic evidence that resident ownership is delivering results

  • 5 of 7 ROCs have site fees below market and 2 of 7 have site fees equal to market after 5 years of ownership;
  • ROC rents are at market and range up to as much as $86 per month (17%) below market; and,
  • The average annual increase in ROC site fees is $4 per year, or 1.26% per year.

The data and the performance of these ROCs says a lot. 

First, keep in mind, that most ROCs raised their lot rents to market in order to purchase their community in the first place.  The average increase for this group was $14 per month at the outset.  That was the starting point five years earlier because gaining ownership takes place in the market at fair market value.  It’s no surprise then that the result is generally market rents to start.

Second, that none of the seven had to charge more than market rent after five years means that the planning and development work done by the resident group and their ROC USA Network certified Technical Assistance provider was good.  It also means that each resident corporation’s management has been good.  For some, that means strong volunteer involvement of its Members; for others, it means the good use of contractors and good oversight by the volunteer Board and Membership. 

Third, this group of borrowers has also invested $2.15 million in community improvements in the first five years of ownership.  One ROC is responsible for $1.5 million of that and the other six have invested on average over $100,000 in health and safety improvements in their communities. 

Read the full article at ROC USA

 

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