UMH Properties has entered into a revolving line credit facility with FirstBank, allowing for proceeds of $20 million and expandable to $30 million with an accordion feature. The financing agreement is secured by rental homes and rental home leases in a number of the REIT’s manufactured housing communities and has a three-year term.
Rental manufactured homes are a viable solution to the rural affordability housing crisis. According to Samuel Landy, president & CEO of UMH Properties, residents can live in 1,000-square-foot, three-bedroom homes on 5,000-square-foot lots with individual driveway and no common wall neighbors for as low as $750 per month. Landy added that the REIT managed to reach 95 percent rental occupancy and 98 percent rent collection since the COVID-19 outbreak.
UMH Properties’ portfolio totals 23,400 developed homesites in 124 manufactured housing communities located in Indiana, Michigan, Maryland, New Jersey, New York, Ohio, Pennsylvania and Tennessee. Recently, the company spent $4.5 million for Lake Erie Estates, a 163-sites property in Fredonia, N.Y.