May 17, 2025

Dear Senate President Warren Peterson, Honorable Senators and Honorable Representatives,

Escalated Lot Fees in Manufactured Home Parks have negatively impacted affordable housing, many of whom are Senior Citizens, US Veterans, and disabled persons living on a fixed income.   Based on this trajectory, lot fees will outpace income & Social Security to the point that residents will no longer be able to afford the lot fees where the home they own sits.  Residents may have no choice but to walk away and abandon their own home.  We see this happening already in our own communities.  Whereas Arizona protects the property owner through Prop 207, a turn of the tables is that Arizonans are experiencing diminished value in their Manufactured Home – As lot fees go up, the home values decrease significantly. 

Since 2019, five national real estate investment firms have bought up a majority of Arizona Manufactured Home Parks.  These firms invested in the communities not only for profit, but as part of a wealth extraction scheme that exceeds ethical business practices that Arizonans respect.  Immediately, they began escalating the lot fees at an accelerated rate.   Out-of-state Investors have made rental rates alarmingly unaffordable for our own Arizona citizens; these firms are taking advantage of our State.  We must find a way to keep the national investors from exacerbating the affordable housing crisis in this state and focus on protecting our own Arizona Small Businesses’ investments & profits instead.

Arizona’s Manufactured Housing (MH) Industry is a crucial solution to the affordable housing crisis, filling the gap in the middle housing market for many customer segments.  Seventy percent of residents cite affordability as the key driver for choosing manufactured housing.  

What does this mean for Arizona?

• Unchecked lot fee increases in MH Communities threaten the future of MH production & sales in our state, along with decreased tax revenue
• Increase in homelessness, resulting in economic drain to the state
• Upside down business model by out of state investors, creating a loss to Arizona businesses and residents, while the affordable housing crisis grows instead of mitigating the crisis. 

Stabilizing lot fee increases from these investment firms is the key to sustained growth in both the industry and residential occupancy.  MH Communities can be part of the solution to Arizona’s affordable housing crisis with smart legislative strategies.  More than 100 cities nationwide have laws in place for reasonable lot fee increases.  It is time for Arizona to work to develop its own plan.  Rely on us, the Senior Citizen population & largest voting bloc in Arizona, to be part of the solution to the growing affordable housing crisis that our state faces. 

Together, we can improve the lives of MH residents and support Arizona’s economic growth.

Thank you.

Terry McElroy, representing Change for Manufactured Home Residents Task Force

See attached Signature Pages  

2050 West State Route 89A Lot 371, Cottonwood AZ  86326

720.648.5260    Terry.McElroy4@live.com