New report delves into impact of Alden Global Capital’s investments in manufactured housing communities

A new report from Manufactured Housing Action (MHAction) and the Private Equity Stakeholder Project (PESP) analyzes the incursion of Alden Global Capital – a hedge fund infamous for slashing newsroom jobs at hundreds of U.S. newspapers it acquired –  into the manufactured housing market via its affiliate, Homes of America. “Vulture Wars: Alden Global Capital’s Assault on Manufactured Home Community Residents” sheds light for the first time on Homes of America’s $275 million buying spree to acquire more than 10,000 manufactured housing lots in 138 parks.

Since 2020, Homes of America has bought up manufactured housing communities across 17 states, with concentrations in Florida, Michigan, and Illinois. Notably, Florida and Michigan lead the nation in the number of manufactured housing communities owned by corporate landlords such as Alden. 

While Alden appears to have made cash purchases of the manufactured home parks, Alden has saddled the parks with debt, taking out mortgages for hundreds of millions of dollars on the parks. This private equity-style tactic of loading portfolio companies with debt has contributed to higher rates of bankruptcy in other companies, raising concerns about the continued viability of these communities as a source of affordable housing. Residents at Alden-owned parks have reported lot rent hikes of as much as 98% after Homes of America took control of their community, as well as the addition of new fees for services that had once been free.

The report also reveals Alden’s aggressive eviction practices in a number of states across the U.S. 68% of eviction filings at Alden-owned parks in Florida have resulted in orders to vacate, a much higher rate than the national average of 43%. Additionally, over two thirds of Alden’s eviction filings occurred at just nine parks in Florida, with one park reaching an eviction filing rate of 26%.

“Vulture Wars” features the stories and experiences of several residents of Alden-owned manufactured housing parks, including Theo Gantos, a resident of North Morris Estates in Thetford Township, MI. “I tell my neighbors, ‘Do everything in writing, never trust anything they say verbally. Always pay in a way that’s provable. If you go in person and pay, make them give you a receipt,’” said Gantos. “Lots of our neighbors are older or disabled, and they’re not in a position to defend themselves. No matter how much money you have tied up in your home, this company has no moral restraint and will find any reason to try to take your home and life savings away from you. That’s why we need change now!” Other resident stories note that since Homes of America took over, homes in their communities have been neglected and abandoned and common area maintenance has decreased. 

In Michigan, new protections for residents of manufactured housing are currently being considered by the state legislature. Bills SB486-492 and HB5157-5163, which have been endorsed by MHAction and PESP, would require rent increases above inflation to be justified, require leases for residents, update licensing standards, and close a loophole in drinking water oversight. 

The report concludes with demands of Homes of America to improve its treatment of residents at its parks and policy recommendations to protect tenants. Demands to Homes of America include instituting lot rent caps of 3%, the immediate repair of major infrastructural issues at its parks, and financial reimbursement for residents forced to move. Policy recommendations include banning fees not reasonably associated with cost of occupancy, the creation of a public database for resident complaints to improve transparency, and requiring licensing for all operators of manufactured housing parks. 

“Alden Global Capital and Homes of America are putting profits ahead of the housing stability of thousands of vulnerable Americans. It’s absolutely galling,” said Paul Terranova, Midwest Community Organizer at MHAction. “Residents of Alden-owned manufactured housing communities have been left quite literally high and dry by Homes of America, from dirty water at parks to outrageous rent hikes. Michigan lawmakers have the ability to swiftly curb Alden’s bad behavior by passing SB486-492 and HB5157-5163. We urge them to pass these bills now and protect Michiganders in the midst of an ever-worsening housing crisis.”