Senate Committee Passes Pair of Bills to Strengthen Protections for Mobile Home Park and HOA Residents

DENVER, CO – The Senate Local Government and Housing today approved two bills to keep Coloradans housed and strengthen protections for residents of mobile home parks and HOAs.

HB24-1294, sponsored by Senator Lisa Cutter, D-Jefferson County, would close gaps in the Mobile Home Park Act that have left mobile home park residents vulnerable to displacement and financial harm. Specifically, this bill would update owner and landlord responsibilities, strengthen tenant protections, ensure important park notices and meetings are accessible to Spanish speakers, and clarify the conditions of the sale of mobile homes and parks.

“Homeowners in mobile parks face unique challenges since they own their home but rent the lot it sits on,” said Cutter. “This bill addresses many gaps in our current protections, including increasing transparency in ‘rent to own’ agreements, speeding up dispute resolution, and ensuring that a resident’s housing is not at risk due to a language access issue. These provisions will help keep more Coloradans housed in their communities.” 

The bill increases transparency in “rent to own” contracts by ensuring that both parties are informed of their rights and responsibilities, such as the refundability of payments in the event a tenancy terminates prematurely. Additionally, HB24-1294 would require that parkwide meetings, as well as written notices of potential evictions or rent increases, are communicated and accessible in both English and Spanish. It would also clarify the circumstances when park residents are protected against rent increases.

HB24-1337, sponsored by Senate President Pro Tem James Coleman, D-Denver, and Senator Tony Exum, D-Colorado Springs, would limit the reimbursement amount for attorney fees to 50 percent of the underlying payment owed or $5,000, whichever is less. Currently, homeowners associations (HOAs) can require a homeowner to reimburse the HOAs for collection costs and attorney fees without starting a legal proceeding. 

“No one should be at risk of losing their home for being in violation of minor HOA rules,” Coleman said. “In addition to ensuring Coloradans won’t have to pay sky–high attorney fees, this bill would give homeowners the right to purchase their property back before its transferred, which increases housing stability.”

“Home ownership is supposed to create generational wealth, but right now the housing crisis is creating generational debt,” said Exum. “This bill would help ensure HOA foreclosure is a last resort while lowering legal costs and providing Coloradans with the opportunity to buy back their property and stay in their communities. It’s a great step to improving financial and housing stability in Colorado.”

The legislation would prohibit foreclosing on a lien if the homeowner is in a bankruptcy civil action or if the homeowner is in compliance with a payment plan for the owed amount. It also requires the HOA to take specific steps before foreclosing on a home, ensuring foreclosure is the last resort.

The bill would also create a right of redemption for properties in an HOA that have been foreclosed on, which would allow unit owners, tenants, nonprofits, community land trusts, and other entities the opportunity to purchase the property before it’s transferred.

HB24-1294 now heads to the Senate Appropriations Committee and HB24-1337 now heads to the Senate floor. Follow their progress HERE and HERE, respectively.