Key Takeaways
- • Homes of America, a hedge fund subsidiary, pleaded guilty to operating North Morris Communities manufactured housing park without a license and was fined $25,000 in a rare criminal conviction of a private equity-backed housing operator.
- • Residents experienced significant quality-of-life failures under hedge fund ownership, including brown drinking water that damaged appliances, raw sewage spills, and rent increases of 12%, before new ownership initiated remedial measures.
- • New ownership has replaced 73 water lines and is connecting the park to municipal water infrastructure, demonstrating the operational deficiencies under the previous hedge fund-backed management.
- • Related criminal proceedings also ensnared Douglas Environmental and its president Brian Powell, who pleaded no contest to conducting a criminal enterprise and six counts of forgery for falsifying water safety tests at multiple mobile home parks; Powell received two years probation and the company faced a $50,000 fine.
- • Private equity firms own over one-quarter of Michigan's manufactured housing lots, highlighting systemic exposure in the sector as state legislators consider protective measures including resident purchase rights and mandatory annual inspections.
Summary
Homes of America, an affiliate of a hedge fund, pleaded guilty to operating North Morris Communities, a manufactured housing park north of Flint, without the required license. The conviction resulted in a $25,000 fine and represents a rare criminal prosecution of a hedge fund-backed housing operator. An agent for the company pleaded guilty, receiving a one-year misdemeanor charge as part of the resolution.
Residents endured documented infrastructure and service failures under the hedge fund's ownership. The park experienced brown drinking water that destroyed household appliances, raw sewage spills, and a 12% rent increase, according to resident representatives and public officials. These conditions persisted until the criminal investigation and subsequent change in ownership occurred. Under new ownership, the park has initiated significant remediation efforts, including replacement of 73 water lines and connection to municipal water systems.
The case extends beyond Homes of America to implicate service providers as well. Douglas Environmental and its president Brian Powell pleaded no contest to one count of conducting a criminal enterprise and six counts of forgery. The charges stemmed from systematic falsification of water safety tests and discharge tests at multiple mobile home parks, including Moon Lake Mobile Home Park and Thornapple Lake Estates. Powell was sentenced to two years probation, and Douglas Environmental was ordered to pay a $50,000 fine.
The prosecutions underscore broader structural concerns in the manufactured housing sector. According to the watchdog group Private Equity Stakeholder Project, private equity firms own over one-quarter of Michigan's manufactured housing lots. This concentration has enabled rent increases and service reductions across portfolios. In response, Michigan legislators have advanced Senate-passed bills (SB 934-939) that would grant residents first purchase rights, mandate annual inspections, limit fees, and establish closure notice requirements. As of August 2026, these provisions remain pending in the Michigan House without scheduled action.
Residents endured documented infrastructure and service failures under the hedge fund's ownership. The park experienced brown drinking water that destroyed household appliances, raw sewage spills, and a 12% rent increase, according to resident representatives and public officials. These conditions persisted until the criminal investigation and subsequent change in ownership occurred. Under new ownership, the park has initiated significant remediation efforts, including replacement of 73 water lines and connection to municipal water systems.
The case extends beyond Homes of America to implicate service providers as well. Douglas Environmental and its president Brian Powell pleaded no contest to one count of conducting a criminal enterprise and six counts of forgery. The charges stemmed from systematic falsification of water safety tests and discharge tests at multiple mobile home parks, including Moon Lake Mobile Home Park and Thornapple Lake Estates. Powell was sentenced to two years probation, and Douglas Environmental was ordered to pay a $50,000 fine.
The prosecutions underscore broader structural concerns in the manufactured housing sector. According to the watchdog group Private Equity Stakeholder Project, private equity firms own over one-quarter of Michigan's manufactured housing lots. This concentration has enabled rent increases and service reductions across portfolios. In response, Michigan legislators have advanced Senate-passed bills (SB 934-939) that would grant residents first purchase rights, mandate annual inspections, limit fees, and establish closure notice requirements. As of August 2026, these provisions remain pending in the Michigan House without scheduled action.
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