For over 65,000 people across British Columbia, manufactured home parks (commonly called mobile home parks or trailer parks) represent one of the last paths to affordable homeownership.
In smaller and more rural communities, these home parks can account for as much as one-tenth of the local housing supply. But, despite their importance in the housing mix, a little-known contractual issue between park managers and lenders has seen this vital housing option caught up in a bureaucratic stalemate that is currently unique to British Columbia.
Lenders in conflict with park managers
At the heart of the problem is a critical banking form called the “Landlord Consent Model Assignment of Consent for Manufactured Home Tenancy Agreements,” or more commonly known as the “1097.” It defines the relationship between lenders, park managers, and residents when financing is involved, outlining obligations in cases of tenant default, and allowing for a previous lease to be assigned to a new tenant when the home park is sold. First introduced by the Canadian Bankers Association in 2002, over time, the 1097 has evolved into at least nine different versions of the form, with each major bank creating its own in-house variation.
For years now, park managers in B.C. have had concerns about certain clauses in the lenders’ versions of the 1097, most notably about a lack of park manager protections and an abundance of lender protections in the agreement. This culminated in the Manufactured Home Park Owners Alliance of B.C. releasing their own version of the 1097 in October 2024. However, lenders in turn are refusing to sign it, citing federal regulations blocking them from making some of the requested changes.
Residents and Realtors left hanging as deals collapse
After more than a year, the stalemate between lenders and park managers has left residents and the Realtors serving them facing the consequences. Buyers of manufactured homes, even those who have bank-approved financing and a willing seller, are unable to transact on their home because the 1097 is left unsigned. Under these current rules, the sale is essentially vetoed, creating a significant barrier to transacting manufactured park housing.
In one case in late 2024, a Coquitlam couple had multiple offers fall through because the required paperwork was left unsigned, leaving them feeling like they’re being “held hostage” by a process out of their control. Across the province, Realtors and their clients have felt this newly created uncertainty firsthand, consistently having deals collapse at the last minute because they cannot get a signature on this mandatory form.
The lack of a standardized and widely accepted 1097 form is disproportionately harming residents and sellers. Those who feel its impacts most are the elderly, low-income families, and those living in rural areas with no other viable housing options. As it currently stands, buyers cannot buy, and sellers cannot sell; This issue demands intervention from the federal government.
Bottom line
This impasse cannot be solved through private negotiations. The federal government must step in and establish clear guidance around the 1097 form and its use. As one of the last bastions of affordability in an increasingly expensive housing market, manufactured home parks are too vital a part of the housing landscape to be ignored.
This is not about lenders versus park managers, but about a vital process that right now is fundamentally broken. Housing Minister Robertson must step in and regulate the use of the 1097 form to restore consistency and basic consumer protections to one of Canada’s most overlooked housing options.
Daniel Kreines is the Government Relations and Policy Associate at the Association of Interior REALTORS® since 2024. Representing REALTORS® across the interior of British Columbia from the Kootenays to Kamloops and up to South Peace River. Daniel advocates on behalf of the profession and to add value for consumers.