Option 11—Establish a limited buyback and site rent reduction scheme

This option creates a limited opt-in framework for manufactured homes to be bought back by the park owner if they have not sold after 18 months, with site rent reduced by 25% in the final 6 months. This option provides financial and other benefits for home owners, and improves incentives to encourage the timely sale of homes. The administrative cost to park owners of this option is estimated at approximately $4,522,000^[1], with reduced profitability from site rent equal to approximately $1,227,000 over a 10-year period. This is offset by an estimated benefit of $957,000 from additional revenue from commission on the sale of homes. Under this option, home owners experience a benefit of $3,887,000 from reduced site rent, improved sale times and less time spent paying site rent for unsold homes. This option scored 7/9 on its contribution to policy objectives and was selected as a component of the preferred package of reform options.

This is a summary of the impacts of option 11 only. For the full impact analysis, read chapter 7 of the C-RIS (PDF, 3.3 MB).