Exhibit 99.1

[COMPANY LOGO]


                                                   September 17, 1996

Dear Stockholders:

        After careful consideration and extensive consultation with its
independent financial and legal advisors, Chateau's Board of Directors has
unanimously voted to approve a revised merger agreement with ROC
Communities, Inc. under an improved exchange ratio and to reject the
unsolicited tender offer by MHC Operating Limited Partnership.

        The effect of the revised merger agreement is that each outstanding
share of Chateau common stock will represent 1.0316 shares of the combined
entity, rather than one share as contemplated under the original agreement.
This improvement in the exchange ratio results from a payment by Chateau of a
stock and OP Unit dividend equal to 3.16% of the outstanding Chateau common
stock and units prior to the effective date of the merger, but contingent upon
the merger having been approved by a majority of Chateau stockholders. A
further economic benefit may be realized if OP Unitholders elect to exchange 
into common stock. Assuming that 70% of the OP Units were exchanged, for 
example, the effective exchange ratio for Chateau stockholders would be 
approximately 1.06. The exchange ratio for ROC stockholders remains unchanged 
at 1.042.

        In connection with the ROC merger, the Board also unanimously approved
a number of new initiatives designed to provide a balanced package of
long-term and short-term value that responds to stockholders with different
investment objectives and more accurately reflects the Company's worth.

        These initiatives include:

o       A program to repurchase, either through open market purchases,
        negotiated purchases, or a tender offer, up to 1.45 million of the
        approximately 6.1 million shares of the Company's common stock
        currently outstanding.

o       In addition, ROC has indicated its intent to purchase, from time to
        time, up to 350,000 shares of Chateau common stock prior to the
        merger and Chateau has waived the restrictions of its standstill
        agreement with ROC with respect to these purchases.

o       An opportunity for each holder of limited partnership interests
        (OP Units) in the Company's operating partnership, CP Limited
        Partnership, to exercise their existing right to exchange, on a tax-
        efficient basis, their OP Units for one share of the Company's
        common stock to be effected prior to the merger. In recognition of
        this opportunity to exchange on a tax-efficient basis, each OP 
        Unitholder will be required to waive its right to the OP Unit 
        dividend, thus reallocating such dividend to the existing Chateau 
        common stockholders. Certain holders have indicated their intention 
        to exchange up to approximately 6 million OP Units into Chateau 
        common stock, which as described above will have the effect of 
        transferring the benefit of their OP Unit dividend to Chateau 
        common stockholders. If 70% of the approximately 8.8 million 
        outstanding OP Units were exchanged, the effective exchange ratio 
        to Chateau common stockholders would be increased to approximately 
        1.06. In connection with the exchange, exchanging OP Unitholders 
        will be given the opportunity to purchase common stock from Chateau 
        and/or ROC at fair market value.

        Importantly, the share repurchase program will provide immediate
liquidity to those holders who wish to sell some or all of their shares, while
enabling continuing holders to benefit from the ongoing growth of the Company
after the ROC merger.





        In reaching its decision, the Board determined that the revised
merger agreement with ROC offers attractive financial and operational benefits
and represents the best alternative for Chateau stockholders.

        We believe that the merger with ROC Communities will significantly
increase the geographic diversity of the properties owned by the Company and
reduce exposure to fluctuation in local economic cycles.

        In connection with its decision to proceed with the revised ROC
merger, the Company's Board of Directors, after consultation with its
financial advisors, Goldman Sachs and Merrill Lynch, rejected the MHC offer as
inadequate and reaffirmed its intent to pursue a strategic merger that enables
stockholders to continue to benefit from an equity participation in the
combined enterprise.

        The Company's directors and officers do not intend to sell any shares
in connection with the repurchase program or to tender into the MHC offer.
YOUR BOARD OF DIRECTORS STRONGLY RECOMMENDS THAT STOCKHOLDERS NOT TENDER THEIR
SHARES INTO THE MHC TENDER OFFER.

        Additionally, in reaching its determination to proceed with the ROC
merger, the Board of Directors also carefully considered, with the assistance
of its legal and financial advisors, the offer of Sun Communities, Inc. The
Board determined that the long-term benefits of a combination with ROC were
superior to a combination with Sun. This conclusion was based on several
factors, including a judgment concerning Sun's property portfolio, the nature
and compatibility of the combined management teams and the acquisition
practices of the two companies.


        We believe the steps we are announcing today, combined with the
continued implementation of our long-term strategic plan, will best protect
and enhance value for our stockholders and serve the interests of all of our
constituencies.

        The enclosed Schedule 14D-9 describes your Board's decision to reject
the MHC offer and contains other important information relating to its
decision. We urge you to read it carefully.

        Your Board of Directors and I greatly appreciate your continued
support and encouragement.

                                    Sincerely,



                                    John A. Boll
                                    Chairman of the Board