Prosecutors in Michigan are pointing to a case at a mobile home park as an uncommon example of an investor-backed landlord being criminally held accountable after residents endured sewage problems and brown tap water.
Here's what to know
According to The Flint Courier News, Homes of America — a subsidiary of a hedge fund — pleaded guilty to running the North Morris Estates, a mobile home property, without a license and was ordered to pay a $25,000 criminal fine.
Genesee County Prosecutor David Leyton said, as the outlet reported, his office views the outcome as a possible state first: a mobile home park owner being criminally charged and convicted under the Mobile Home Commission Act.
Leyton announced the charges in 2024, after a Michigan State Police investigation found that the former owner had been operating the park without a license since at least November of 2023.
Under the previous ownership, The Courier reported, residents reported raw sewage spills, brown drinking water, and rent increases of about 12%. A resident representative said the discolored water destroyed his washing machine and hot water heater.
Leyton said, as the outlet quoted, "Following those charges, an authorized agent of the corporation entered a guilty plea to a one-year misdemeanor and paid a criminal fine of $25,000. We believe that conviction marked the first time in Michigan history that the owner of a mobile home park had been criminally charged and convicted under the Mobile Home Commission Act."
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More background
Mobile home parks are often among the most affordable housing options available, yet residents can be especially vulnerable when owners neglect basic infrastructure.
Unlike apartment renters, many mobile home residents own their homes but rent the land beneath them, making it difficult and expensive to leave when conditions deteriorate.
Families can end up dealing with contaminated water, sewage leaks, and repeated rent hikes in situations that are both unhealthy and costly. Unsafe water can also destroy water heaters, washing machines, and other appliances, adding even more costs for households already trying to keep housing affordable.
Leyton also said, as The Courier reported, the issues seen at North Morris Estates were not unique to Genesee County.
What's being done?
Homes of America's plea agreement included a requirement that the park be sold.
The new owners have replaced 73 water lines and are pursuing a connection to municipal water. They have also repaired roads, renovated the main office and community space, and reopened the community pool, The Courier reported.
The new management has also shifted weed control to an organic herbicide and supported vaccination and neutering efforts for outdoor and stray cats in the park.
Pointing to the changes, Leyton said, as The Courier reported, the park's recovery shows what stronger oversight can accomplish: "Most importantly, they have made North Morris Estates a safe and habitable place for individuals and families to call home once again."
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