MT. WASHINGTON, Ky. — When Jim moved his family to Mt. Washington in the Spring of 2021, he was excited to see his to kids grow up in the same community where he was raised. Their new home inside Live Oaks mobile home park made his dream of becoming a homeowner seem attainable, at least for a short time.
Jim spoke to Spectrum News 1 on the condition of anonymity. His name has been changed for the purpose of this story.
Jim said his dreams of affordable home ownership were quickly shattered at Live Oaks. The park has changed hands at least three times since he and his family moved there. Each change of ownership led to an increase in his monthly payment, causing his monthly rent to go from $1,000 to $1,450 in less than a year and a half’s time — a 45% increase.
Things could soon get worse for Jim, who said in February he received an email from the mobile home park telling him his monthly lot rent would soon be increasing by another $100. So far, that increase has not happened.
“They said the notice would be stapled to our doors,” Jim said. “So I’ll be paying close to $1,600 for a home that’s not even mine.”
Jim rents his mobile home and the lot. He said he signed a rent-to-own agreement with one of the previous owners, Tennessee-based The Firm, Inc., and claims he even paid one of their employees, Allen Franks, $5,000 as a down payment. But he said the current ownership, Lasso Capital of New York, told him he is just a renter. He said one of the park managers contacted him after Spectrum News 1’s first investigative report on Live Oaks aired.
“It wasn’t very nice. She says some people just need to mind their own business,” said Jim. “I think it was an admission of guilt and then they basically just turned around and decided they wasn’t gonna do anything.”
Jim said the park manager initially told him they were going to see if there was anything they could do about the down payment he made under previous ownership, but later changed course.
“They turned around and said that we had just lost that $5,000 to The Firm,” Jim said. “They was thinking about switching us to where we would be buying our home. But now they said they cannot do that because nothing can be proved that I put a $5,000 payment down. Not even the papers I have — she said they’re not good enough.”
Spectrum News 1 asked for copies of Jim’s original lease and any paperwork he may have showing the money he put down, but we are still waiting to receive it.
In the meantime, we had an attorney review another tenant’s lease that was signed the same year Jim moved to Live Oaks. Dianalyne Mills said she also believed she was signing a rent-to-own contract with The Firm and said she paid Franks a $5,000 cash down payment.
“It was just a lot of promises that didn’t happen,” said Mills.
The attorney reviewing Mills’ lease said there is no language detailing a purchase agreement or option to buy.
Spectrum News 1 reached out to Franks, the man who Jim and Mills say told them about the rent-to-own agreement and took their down payments, but we have not heard back. The Firm, which identifies Franks as a District Manager on their website, does not have contact information on their webpage and a call made to the number on their public Google business listing was not returned.
A representative for the current owners of Live Oaks has never returned Spectrum News 1’s calls requesting comment.
Jim said the email he received from the park last month telling him about a forthcoming increase to his lot rent also said the park was up for sale. It’s unclear if any increase in lot rent will be implemented at Jim’s property or at any of his neighbor’s lots. Other Live Oaks residents had not received a notification of any upcoming increases or notice of the park being for sale at the time this article was published.
“I’m getting ready to take on a second job just so we can make bills meet anymore,” Jim said, adding that his family was looking for other places to live, “to buy a home off the market from a real estate agent is cheaper than living in Live Oaks now.”
Kentucky law does not restrict how much landlords can increase rent on a year-over-year basis and prevents municipalities from implementing any kind of rent control.
Mt. Washington Mayor Stuart Owen said while the city cannot do anything to prevent or control rent increases at Live Oaks, he is looking into other ways they can help keep people in their homes with things like utility assistance.
“We don’t want to see any member of our community struggle,” said Owen. “The market is so tight right now. There’s nowhere else for them to go. And that’s one of the things that I’m hearing is that these investors are coming in and buying these parks up and they’re raising the rates. And they know that these people–there’s nowhere else for them to go. There aren’t enough apartments.”
Despite the limited housing options, Jim said his family hopes to stay in Bullitt County. But he regrets moving his family to Mt. Washington, a decision that once made him so proud.