Senate committee advances bill to improve transparency and resident purchase rights for mobile home parks

Senators moved House Bill 12‑24 forward after extended testimony from residents, housing advocates, state officials and industry representatives.

Senator Cutter, a sponsor, told the committee the measure is designed to make the existing opportunity‑to‑purchase framework “real, not theoretical,” by requiring a more transparent sales process and clear disclosures so residents can evaluate offers and finance purchases. Senator Roberts, who co‑sponsored the measure, said the bill aims to preserve “naturally occurring affordable housing” and to make the window for residents to organize and seek financing practicable.

Megan Janke, deputy director at the Department of Local Affairs Division of Housing, said the bill builds on prior laws and cited state experience: “Enabling residents to purchase 2 dozen mobile home parks across 17 counties” and preserving “almost 1,700” affordable units while preventing displacement of roughly 3,300 residents. Janke also told the committee sales activity is rising — from an annual average of about 33 sales in 2020 to roughly 90 parks listed — and that aggregate proposed prices are outpacing appraised values, which makes resident purchases difficult without public grant support.

Lauren Rafter, managing attorney at the Colorado Poverty Law Project, said the bill ‘‘requires clear notice and disclosure when a park is being sold.’’ She told the committee that without those disclosures residents often get only a notice that their community is for sale and ‘‘have no idea how the price was set, who the buyer is, or what's driving the deal,’’ leaving them unable to mount a competitive offer.

Jason Peaslee, who described his work assisting rural communities and housing authorities, said a recurrent problem is insufficient disclosure about infrastructure and operations. He said recent transactions often hid major infrastructure needs that would have materially changed a buyer’s offer, and that additional disclosure would allow resident groups to evaluate costs and negotiate more realistically.

Opponents representing the manufactured‑housing industry said the bill raised practical and legal concerns. James Fukazawa, a real‑estate attorney representing the Rocky Mountain Home Association, said the bill could force parks to disclose ‘‘operating agreements and bylaws that are non‑public information’’ and argued the provisions may extend beyond material contracts needed for a sale. Christy Benge and Tawny Payton urged negotiation on fee caps and safety‑enforcement language, warning the industry is facing pressures that make some owners want to exit the state.

Resident advocates and practitioners described the financing realities. David Berry, vice president of a public‑benefit cooperative attempting to buy a 202‑unit park, said the asking price of $39 million would require tens of millions in grants or donations to make a resident purchase viable; he urged lawmakers to consider limits on rent escalation and other tools to preserve home values.

Supporters stressed that HB 12‑24 does not bar sales to private buyers or prevent owners from receiving fair market value; proponents said it simply levels the information available so residents can make good‑faith competitive offers or otherwise protect their homes. The Department of Law said it shares enforcement authority with the Department of Local Affairs and supports the bill’s protections relevant to evictions and rent increases.

The committee voted to send HB 12‑24 to the Committee of the Whole with a favorable recommendation. Vice Chair Snyder moved the bill; the roll call recorded a 5–2 vote in favor. Several members who voted yes said they planned to work with sponsors on amendments before further floor action.

The bill now goes to the Committee of the Whole for additional consideration on the Senate floor.