ARLINGTON, VA - National Cooperative Bank (NCB), as part of its commitment to serving low- and moderate-income communities and promoting cooperative development, arranged a $6 million loan for Marineland Community Association, Inc. to form a new limited-equity cooperative in Hermosa Beach, California. The existing 60-pad mobile home park secured the financing, along with a $2.2 million loan from the State of California Mobilehome Park Resident Ownership Program (MPROP) to acquire the 4.19 acres of land and convert it to an income-restricted cooperative.
As a leading lender to cooperatives throughout the country, NCB continues to be a main source of financing for the creation of cooperative housing and businesses in the United States. “We are proud to provide Marineland Community Association with a tailored loan package that addresses the specific financial needs related to its acquisition and conversion plans,” said Larry Mathe, a Senior Vice President at NCB. “The commitment by its current residents to form a limited-equity community will ensure an affordable housing option in this prime beach front location for years to come.”
Currently operated as rentals, the majority of Marineland residents have committed to purchasing the pads their mobile/modular homes occupy. In addition, the new shareholders will acquire a one-story office/laundry facility, three small storage buildings and all site improvements including asphalt pavement, utility access and retaining walls. The handful of residents, who have chosen not to purchase their sites, will pay rent to the cooperative.
Marineland is located immediately north of Pier Avenue, and is in the center of this popular Hermosa Beach community. Just five blocks from the Pacific Ocean and the Hermosa Beach Pier Plaza, the newly-formed cooperative is just steps from the community center, library, public parks, and shopping district.
Marineland is another example of NCB’s commitment to being a socially responsible financial institution, and providing funding to a variety of market rate and affordable housing communities. With another new cooperative created, the Bank is furthering its mission of promoting the creation and success of cooperatives, while also providing programs to meet the financial needs of these underserved communities. In 2012 alone, National Cooperative Bank committed and deployed $232 million to initiatives serving low- and moderate-income communities throughout the country, and is set to surpass this level of financing in 2013.