Protections for Mobile Home Park Residents

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0771.01 Christopher McMichael x4775 HOUSE BILL 26-1224
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING FINANCIAL PROTECTIONS FOR MOBILE HOME PARK101
RESIDENTS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill establishes and clarifies financial protections for mobile
home park residents. A landlord of a mobile home park is required to
notify residents that the landlord is temporarily prohibited from increasing
rent. Under current law, a landlord is required to send notice to residents
when the landlord intends to sell the mobile home park. The bill clarifies
what information must be included in the notice that the landlord sends
HOUSE SPONSORSHIP
Velasco and Boesenecker,
SENATE SPONSORSHIP
Cutter and Roberts,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
to residents of the park. The notice must include financial and
maintenance information related to the rental and operation of the mobile
home park and information related to the buyer's offer to purchase the
mobile home park. The bill requires the landlord and any potential buyer
to conduct the sale of the mobile home park at arms-length and in good
faith. The bill establishes certain parameters related to the registration fee
that must be paid by a landlord of a mobile home park and limits the
amount that the landlord may charge each resident to cover the
registration fee at $17.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 38-12-203, amend2
(1)(a) as follows:3
38-12-203. Reasons for termination.4
(1) The management of a mobile home park may terminate a5
tenancy only for one or more of the following reasons:6
(a) Except in the case of a home owner who cures a7
noncompliance as described in section 38-12-202 (3), failure of the home8
owner to comply with local ordinances and state laws and rules relating9
to mobile homes and mobile home lots. A LANDLORD MAY PURSUE THE10
TERMINATION OF A TENANCY ON THESE GROUNDS ONLY IF A LOCAL11
GOVERNMENT, THE STATE , OR AN AGENCY OR DIVISION OF A LOCAL12
GOVERNMENT OR THE STATE HAS ISSUED A FINAL ORDER FINDING THAT A13
VIOLATION OF A LOCAL ORDINANCE OR A STATE LAW OR RULE RELATED TO14
MOBILE HOMES AND MOBILE HOME LOTS HAS OCCURRED.15
SECTION 2. In Colorado Revised Statutes, 38-12-204, add (4.5)16
as follows:17
38-12-204. Nonpayment of rent - notice required for rent18
increase - limitation on rent in creases - notice of rent increase19
prohibition - definition.20
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(4.5) A LANDLORD THAT IS TEMPORARILY PROHIBITED FROM1
INCREASING RENT OR ISSUING A NOTICE OF RENT INCREASE PURSUANT TO2
SUBSECTION (4) OF THIS SECTION SHALL NOTIFY ALL RESIDENTS THAT3
THEIR RENT SHALL NOT BE INCREASED WHILE THE PROHIBITION IS4
EFFECTIVE AND THE REASON FOR THE TEMPORARY PROHIBITION . THE5
LANDLORD SHALL PROVIDE THE NOTICE IN WRITING, IN ACCORDANCE WITH6
SECTION 38-12-212.9, AND WITHIN FOURTEEN DAYS AFTER THE DATE THE7
LANDLORD IS NOTIFIED THAT THEY ARE TEMPORARILY PROHIBITED FROM8
RAISING RENT.9
SECTION 3. In Colorado Revised Statutes, 38-12-217, amend10
(2)(a) introductory portion, (2)(a)(II), (3), (5)(a), (5)(b), (6)(b), and (13);11
and add (3.5) as follows:12
38-12-217. Notice of change of use - notice of sale or closure of13
park - opportunity for home owners to purchase - procedures -14
exemptions - enforcement - private right of action - definitions.15
(2) Notice - requirements.16
(a) To provide notice as required by subsection (1)(a) or (1)(b) of17
this section, the A landlord shall mail the notice in both English and18
Spanish by certified mail to:19
(II) The CLERK OF THE municipality or, if the park is in an20
unincorporated area, the COUNTY CLERK OF THE county within which the21
park is located;22
(3) Contents of notice.23
(a) EXCEPT AS PROVIDED IN SUBSECTION (3.5) OF THIS SECTION, the24
notice given pursuant to subsection (1)(a) of this section must include25
notice of home owners' rights and remedies under this section.26
(b) If the triggering event involves a potential sale, the notice must27
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also include:1
(I) A description of the property to be purchased;2
(II) The price, terms, and cond itions of an acceptable offer the3
landlord has received to sell the mobile home park or the price or terms4
and conditions for which the landlord intends to sell the park; and5
(III) AN EXPLANATION OF THE BASIS FOR THE PURCHASE PRICE AND6
ANY DOCUMENTATION SUPPORTING THE PURCHASE PRICE, INCLUDING:7
(A) AGGREGATE RENTAL DATA;8
(B) RENT PROJECTIONS;9
(C) RECENT APPRAISALS OF THE PROPERTY;10
(D) FORMULAS THAT USE NONPUBLIC MARKET DATA;11
(E) DISCLOSURE OF THE AGE OF MAJOR INFRASTRUCTURE IN THE12
MOBILE HOME PARK, INCLUDING THE PARK'S WATER LINES, SEWER LINES,13
WASTEWATER TREATMENT EQUIPMENT , DRINKING WATER TREATMENT14
EQUIPMENT, PLUMBING , AND ANY ELECTRICAL EQUIPMENT AND15
ELECTRICAL INFRASTRUCTURE; AND16
(F) D OCUMENTATION OF INFRASTRUCTURE INSPECTIONS ,17
MAINTENANCE, AND REPAIR SERVICES THAT HAVE OCCURRED IN THE18
MOBILE HOME PARK IN THE PREVIOUS THREE YEARS; AND19
(IV) Any other terms or conditions which, if not met, would be20
sufficient grounds, in the landlord's discretion, to reject an offer from a21
group of home owners or their assignees.22
(c) The price, terms, and conditions stated in the notice must be23
universal and applicable to all potential buyers and must not be specific24
to and prohibitive of a group or association of home owners or their25
assignees making a successful offer to purchase the park.26
(d) (I) I F THE POTENTIAL SALE IS A PORTFOLIO SALE THAT27
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INCLUDES REAL OR PERSONAL PROPERTY IN ADDITION TO THE MOBILE1
HOME PARK, THE NOTICE MUST INCLUDE ANY CHANGE OR DISCOUNT IN THE2
PRICE, TERMS, OR CONDITIONS OF A PROPOSED SALE THAT INCLUDES MORE3
THAN ONE PIECE OF REAL OR PERSONAL PROPERTY.4
(II) A NY CHANGE OR DISCOUNT DISCLOSED PURSUANT TO5
SUBSECTION (3)(d)(I) OF THIS SECTION MUST ALSO BE MADE AVAILABLE6
TO HOME OWNERS OF THE MOBILE HOME PARK ON THE SAME TERMS AND7
WITH THE SAME PROPORTIONATE DISCOUNT, EVEN IF THE HOME OWNERS8
SUBMIT AN OFFER TO PURCHASE ONLY THE MOBILE HOME PARK.9
(III) F OR THE PURPOSE OF DETERMINING THE PROPORTIONATE10
DISCOUNT REQUIRED BY SUBSECTION (3)(d)(II) OF THIS SECTION , THE11
TOTAL DISCOUNT THAT APPLIES TO THE PORTFOLIO SALE REPRESENTED AS12
A PERCENTAGE MUST BE APPLIED TO THE PRICE OF ANY INDIVI DUAL13
MOBILE HOME PARK INVOLVED IN THE PORTFOLIO SALE.14
(e) The information regarding the proposed sale and the price,15
terms, and conditions of an acceptable offer may be shared for the16
purposes of evaluating or obtaining financing for the prospective17
transaction, but all persons who THAT receive the information shall18
otherwise keep it confidential if the landlord or the landlord's agent so19
requests.20
(3.5) Contents of notice when landlord accepts offer for sale21
or transfer of mobile home park.22
(a) I F A TRIGGERING EVENT DESCRIBED IN SUBSECTION23
(1)(a)(II)(H) OF THIS SECTION OCCURS , THE NOTICE PROVIDED BY THE24
LANDLORD PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION MUST25
INCLUDE THE FOLLOWING INFORMATION:26
(I) THE INFORMATION REQUIRED PURSUANT TO SUBSECTIONS (3)(a)27
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AND (3)(b) OF THIS SECTION;1
(II) THE DISCLOSURE OF ANY SHARED DIRECTORS, MEMBERS, OR2
MANAGERS BETWEEN THE LANDLORD AND THE POTENTIAL BUYER OR ANY3
OF THE BUYER'S INVESTORS OR AFFILIATES;4
(III) T HE DISCLOSURE OF ANY LEGAL ENTITIES FORMED OR5
AMENDED FOR THE PURPOSE OF THE TRANSACTION AND THE OPERATING6
AGREEMENT, ARTICLES OF INCORPORATION , OR BYLAWS OF ANY SUCH7
LEGAL ENTITY;8
(IV) T HE DISCLOSURE OF ANY AGREEMENT OTHER THAN THE9
CONDITIONAL PURCHASE AND SALE AGREEMENT BETWEEN THE LANDLORD10
AND THE POTENTIAL BUYER OR THE BUYER 'S INVESTORS OR AFFILIATES,11
INCLUDING ANY AGREEMENT THAT RELATES TO THE DISTRIBUTION OF12
PROCEEDS FROM THE SALE OF THE MOBILE HOME PARK OR OTHER ASSETS13
OR EQUITY INTERESTS;14
(V) I NFORMATION REGARDING THE BUYER 'S SOURCE OF15
FINANCING, INCLUDING SPECIFIC LENDERS, IF APPLICABLE, AND WHETHER16
THE LANDLORD IS PROVIDING ANY FINANCING DIRECTLY OR THROUGH A17
PARTNERSHIP AGREEMENT WITH THE BUYER; AND18
(VI) WHETHER THE SALE IS PART OF AN ASSET, STOCK, OR OTHER19
EQUITY PURCHASE AND, IF SO, AN EXPLANATION OF HOW THE PURCHASE20
PRICE OF THE MOBILE HOME PARK WAS CALCULATED BASED ON THE PRICE21
OF THE EQUITIES INVOLVED AND ANY DOCUMENTATION TO SUPPORT THE22
CALCULATION OF THE PURCHASE PRICE.23
(b) THE PRICE, TERMS, AND CONDITIONS STATED IN THE NOTICE24
REQUIRED PURSUANT TO SUBSECTION (3.5)(a) OF THIS SECTION MUST BE25
UNIVERSAL AND APPLICABLE TO ALL POTENTIAL BUYERS AND MUST NOT26
BE SPECIFIC TO AND PROHIBITIVE OF A GROUP OR ASSOCIATION OF HOME27
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OWNERS OR THEIR ASSIGNEES MAKING A SUCCESSFUL OFFER TO PURCHASE1
THE PARK.2
(c) THE INFORMATION AND DOCUMENTS PROVIDED PURSUANT TO3
SUBSECTION (3.5)(a) OF THIS SECTION THAT ARE RELATED TO THE PRICE,4
TERMS, AND CONDITIONS OF AN ACCEPTABLE OFFER MAY BE SHARED FOR5
THE PURPOSE OF EVALUATING OR OBTAINING FINANCING FOR THE6
PROSPECTIVE PURCHASE, BUT A PERSON THAT RECEIVES THE INFORMATION7
AND DOCUMENTS SHALL KEEP THE INFORMATION AND DOCUMENTS8
CONFIDENTIAL AS REQUESTED BY THE LANDLORD OR LANDLORD'S AGENT.9
(5) Landlord's duty to consider offer. A landlord that has given10
notice as required by subsection (1)(a) of this section shall:11
(a) (I) Provide documents, data, and other information in response12
to reasonable requests for information from a group or association of13
home owners or their assignees participating in the opportunity to14
purchase that would enable them to prepare an offer, WHICH DOCUMENTS,15
DATA, OR INFORMATION MUST INCLUDE:16
(A) DUE DILIGENCE INFORMATION;17
(B) ANY RECENT APPRAISALS OF THE PROPERTY;18
(C) ANY AGGREGATE RENTAL DATA AND RENTAL PROJECTIONS;19
(D) THE MOST UP-TO-DATE RENT ROLL AND ANY DOCUMENTATION,20
WITH PERSONAL IDENTIFYING INFORMATION REDACTED , THAT SHOWS21
CURRENT RENTS, CHARGES, OUTSTANDING BALANCES, HOME OWNERSHIP22
INFORMATION, AND THE CURRENT VACANCY RATE OF THE MOBILE HOME23
PARK; AND24
(E) O PERATING EXPENSES AND INCOME FOR THE MOBILE HOME25
PARK FOR THE PREVIOUS THREE YEARS , INCLUDING COPIES OF ANY26
ELECTRIC, GAS , WATER , SEWER , AND SOLID WASTE DISPOSAL UTILITY27
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BILLS.1
(II) The documents, data, and other information provided2
PURSUANT TO SUBSECTION (5)(a)(I) OF THIS SECTION may be shared for3
the purposes of evaluating or obtaining financing for the prospective4
transaction, but all persons who receive A PERSON THAT RECEIVES the5
information shall otherwise keep it confidential if the landlord or the6
landlord's agent so requests.7
(III) A LANDLORD SHALL PROVIDE THE DOCUMENTS, DATA, AND8
OTHER INFORMATION DESCRIBED IN SUBSECTION (5)(a)(I) OF THIS SECTION9
WITHIN SEVEN CALENDAR DAYS AFTER THE LANDLORD RECEIVES THE10
REQUEST FOR INFORMATION.11
(b) (I) Negotiate in good faith with a group or association of home12
owners or their assignees.13
(II) For purposes of this subsection (5)(b), negotiating in good14
faith includes, but is not limited to:15
(A) Evaluating an offer to purchase from a group of home owners16
or their assignees without consideration of the time period for closing; the17
type of financing or payment method; whether or not the offer is18
contingent on financing or payment method; or whether or not the offer19
is contingent on INSPECTIONS, financing, an appraisal, or title work, OR20
THE DUE DILIGENCE PERIOD REQUIRED BY THE HOME OWNERS OR THEIR21
LENDERS OR DONORS; and22
(B) Providing a written response within seven calendar days of23
AFTER receiving an offer from a group of home owners or their assignees.24
(II.5) The written response DESCRIBED IN SUBSECTION (5)(b)(II)25
OF THIS SECTION must accept or reject the offer and, if the offer is26
rejected, must state:27
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(A) The current price, terms, or conditions of an acceptable offer1
that the landlord has received to sell the mobile home park if the price,2
terms, or conditions have changed since the landlord gave notice to the3
home owners pursuant to subsection (3) of this section; and4
(B) Why the landlord is rejecting the offer from a group of home5
owners and what terms and conditions must be included in a subsequent6
offer for the landlord to potentially accept it.7
(III) The price, terms, and conditions of an acceptable offer stated8
in the response must be universal and applicable to all potential buyers9
and must not be specific to and prohibitive of a group or association of10
home owners or their assignees making a successful offer to purchase the11
park.12
(6) Expiration of opportunity to purchase.13
(b) A landlord shall give a group or association of home owners14
or their assignees an additional one hundred twenty days after the15
one-hundred-twenty-day period provided by subsection (4)(a) of this16
section to close on the purchase of the mobile home park. T HE17
ONE-HUNDRED-TWENTY-DAY PERIOD TO CLOSE MUST INCLUDE AT LEAST18
A NINETY-DAY DUE DILIGENCE PERIOD.19
(13) (a) To qualify for an exemption under subsection (12) of this20
section, a transaction must not be made in bad faith, must be made for a21
legitimate business purpose or a legitimate familial purpose consistent22
with the exemptions listed in subsection (12) of this section, and must not23
be made for the primary purpose of avoiding the opportunity-to-purchase24
provisions set forth in this section.25
(b) (I) E XCEPT FOR A SALE OR TRANSFER DESCRIBED IN26
SUBSECTION (12) OF THIS SECTION AND A SALE CONDUCTED AS A FEDERAL27
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INTERNAL REVENUE SERVICE SECTION 1031 EXCHANGE, A PROPOSED SALE1
OF A MOBILE HOME PARK MUST BE CONDUCTED AS AN ARMS -LENGTH2
TRANSACTION WITH THE LANDLORD AND BUYER ACTING INDEPENDENTLY3
AND IN GOOD FAITH.4
(II) THE LANDLORD OF A MOBILE HOME PARK SHALL NOT COLLUDE5
WITH A POTENTIAL BUYER , OR ENGAGE IN OTHER ANTICOMPETITIVE6
PRACTICES, FOR THE PRIMARY PURPOSE OF INFLATING THE LISTING OR7
PURCHASE PRICE OF THE MOBILE HOME PARK ABOVE THE PARK 'S FAIR8
MARKET VALUE OR OTHERWISE ENGAGING IN PRACTICES TO PROHIBIT THE9
PURCHASE OF THE MOBILE HOME PARK BY A GROUP OR ASSOCIATION OF10
HOME OWNERS.11
SECTION 4. In Colorado Revised Statutes, 38-12-1106, amend12
(8) as follows:13
38-12-1106. Registration of mobile home parks - process - fees.14
(8) (a) The division shall establish by rule a fee that each landlord15
shall pay to the division as an annual registration fee for each mobile16
home independently owned on rented land within the landlord's mobile17
home park.18
(b) On and after July 1, 2024, The division may adjust the19
REGISTRATION fee ESTABLISHED PURSUANT TO THIS SUBSECTION (8) to20
cover the costs associated with complaints filed pursuant to section21
38-12-1103 (2)(b), and may by rule authorize landlords to charge a22
resident, as defined in section 38-12-201.5 (11), a portion of the fee, SO23
LONG AS THE FEE ADJUSTMENT COMPLIES WITH SUBSECTION (8)(c) OF THIS24
SECTION.25
(c) A landlord must not charge a home owner or resident more26
than SEVENTEEN DOLLARS OR half of the fee, WHICHEVER AMOUNT IS27
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LESS.1
(d) The registration fee for each mobile home must be deposited2
into the fund.3
(e) The division shall review the annual registration fee and, if4
necessary, adjust the annual registration fee through rule-making to5
ensure it continues to reasonably relate to the cost of administering the6
program, SO LONG AS THE FEE ADJUSTMENT COMPLIES WITH SUBSECTION7
(8)(c) OF THIS SECTION.8
SECTION 5. Act subject to petition - effective date -9
applicability. (1) This act takes effect at 12:01 a.m. on the day following10
the expiration of the ninety-day period after final adjournment of the11
general assembly (August 12, 2026, if adjournment sine die is on May 13,12
2026); except that, if a referendum petition is filed pursuant to section 113
(3) of article V of the state constitution against this act or an item, section,14
or part of this act within such period, then the act, item, section, or part15
will not take effect unless approved by the people at the general election16
to be held in November 2026 and, in such case, will take effect on the17
date of the official declaration of the vote thereon by the governor.18
(2) This act applies to conduct occurring on or after the applicable19
effective date of this act.20
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