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per year over the next four years such that at the end of the four year period, the person would be paying $1500 /month in rent. Q What financing options are available for lower income residents? A A State funded program currently exists through the Dept. of Housing and Community Development (HCD) called the Mobilehome Park Resident Ownership Program "MPROP MPROP was established to allow lower income residents to finance the acquisition of their lots. Currently, MPROP offers long -term (30 -year) loans at 3% simple annual interest to lower- income residents of a mobilehome park that has been converted to provide the opportunity to make the purchase of the lot affordable to many residents. The loan does not cover the entire purchase price, but is often paired with a conventional loan and provides, on a sliding scale, an amount sufficient to secure a monthly payment that is affordable for the individual resident based on the amount of the down payment, the individual's income, etc. The total monthly payment (from the MPROP loan and the conventional loan) generally will not exceed 30-40% of the resident's monthly income. Whether the MPROP will exist in its current form (or at all) ten years from now is unknown. However, as MPROP is not funded through the normal State budget, but rather is funded through the taxes paid to the State by residents for their mobilehomes, and by existing MPROP loans as they are paid back, there is a likelihood that it will exist 10 years from now. Q If I am a 75 year old resident on a fixed income, would I qualify for one of these MPROP loans? A As with any loan program, the program administrator will consider a number of factors in making that determination. MPROP requires 5% of the loan down, but this amount is typically financed by the Park Owner. The monthly payments are determined by your income, regardless of your age. You must be able to show evidence (typically a tax return) that you qualify as lower income. The purpose of the program is to provide lower income residents with an opportunity to own an interest in the Park in which they live. Q What financing options are available for residents who do not qualify as lower income households? A After conversion, residents will have more options to finance both their land and home. Lending institutions consider mobilehomes on leased land to be personal property or "chattel Chattel financing is usually for a shorter term and with higher interest rates than financing real property. After conversion, the home and the lot can be financed with a conventional home loan. Funding is also available through the Cal Vets program regardless of income level. 4