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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
SEPTEMBER 8, 2003
(Date of Report)
MANUFACTURED HOME COMMUNITIES, INC.
(Exact name of registrant as specified in its Charter)
1-11718
(Commission File No.)
MARYLAND 36-3857664
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
TWO NORTH RIVERSIDE PLAZA, CHICAGO, ILLINOIS 60606
(Address of principal executive offices) (Zip Code)
(312) 279-1400
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On September 4, 2003, Manufactured Home Communities, Inc.
("the Company" or "MHC") announced that it has entered into a
settlement agreement with the City of Santa Cruz, California ("the
City"). In June 2000, the Company initiated litigation against the City
of Santa Cruz. The settlement agreement settles MHC's constitutional
claims against the City relating to its rent control and water resale
ordinances. The settlement agreement provides that the City will
consider amending these ordinances at a public hearing which
amendments, if adopted, would exempt MHC's property from rent control
and recognize its affiliate's utility status. To achieve the exemption
from rent control, MHC must offer a long term lease which gives MHC the
ability to increase rents to market upon turnover and bases annual rent
increases on CPI. If the City does not adopt the ordinance amendments,
the settlement agreement provides a mechanism for expedited resolution
of MHC's claims on the merits.
The federal court for the Northern District of California has
entered a consent decree enforcing the settlement agreement.
The Company believes the settlement agreement benefits MHC's
shareholders by allowing them to receive the value of their investment
in this community through vacancy decontrol while preserving annual CPI
based rent increases in this age restricted property. While the Company
is confident the City will adopt the amendments after receiving public
input, the Company is prepared to have its claims resolved
expeditiously on the merits.
The preceding discussion may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, which reflect management's current views with
respect to future events and financial performance. Such
forward-looking statements are subject to certain risks and
uncertainties, including, but not limited to, the effects of future
events on the Company's financial performance, the adverse impact of
external factors such as inflation and consumer confidence, and the
risks associated with real estate ownership.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
MANUFACTURED HOME COMMUNITIES, INC.
BY: /s/ John M. Zoeller
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John M. Zoeller
Vice President, Treasurer and
Chief Financial Officer
BY: /s/ Mark Howell
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Mark Howell
Principal Accounting Officer and
Assistant Treasurer
DATE: September 8, 2003