First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0427.01 Bob Lackner SENATE BILL 15-095 SENATE SPONSORSHIP Kefalas, HOUSE SPONSORSHIP Tyler, Senate Committees House Committees Finance A BILL FOR AN ACT Concerning manufactured home communities, and, in connection therewith, changing terminology in the basic statute governing such communities, expanding the duties of the division of housing within the department of local affairs to promote manufactured home communities, and establishing a manufactured home community fund within the state treasury. 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://www.leg.state.co.us/billsummaries.) In connection with the existing "Mobile Home Park Act" (act), sections 1 through 6 of the bill change the name of the act to the "Manufactured Home Community Act". These sections of the bill also change the names of the terms "mobile home" and "mobile home park" in the act to "manufactured home" and "manufactured home community", respectively. Sections 7 and 8 of the bill add certain functions to the division of housing within the department of local affairs for the purpose of preserving and promoting manufactured home communities and the manufactured home industry. The bill specifies the powers and duties of the division in connection with manufactured home communities. The bill requires the division to create a dispute resolution program that will provide landlords, management, and home owners with a cost-effective and time-efficient process to resolve disputes concerning alleged violations of the"Manufactured Home Community Act". This section of the bill also creates in the state treasury the manufactured home community fund. The fund is administered by the division. The bill specifies, without being exclusive, certain permitted uses of moneys from the fund. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, amend part 2 of article 12 of title 38 as follows: PART 2 MANUFACTURED HOME COMMUNITY ACT 38-12-200.1. Short title. This part 2 shall be known and may be cited as the "Mobile Home Park Act" "Manufactured Home Community Act". 38-12-200.2. Legislative declaration. The general assembly hereby declares that the purpose of this part 2 is to establish the relationship between the owner of a mobile home park manufactured home community and the owner of a mobile manufactured home situated in such park community. 38-12-201. Application of part 2. (1) This part 2 shall apply only to manufactured homes as defined in section 42-1-102 (106) (b), C.R.S. (2) Repealed. 38-12-201.3. Legislative declaration - increased availability of manufactured home communities. (1) The general assembly hereby finds and declares that mobile manufactured homes manufactured housing and factory-built housing are important and effective ways to meet Colorado's affordable housing needs. The general assembly further finds and declares that, because of the unique aspects of mobile homes and mobile home park ownership manufactured homes and the ownership of manufactured home communities, there is a need to protect mobile home owners of manufactured homes from eviction with short notice so as to prevent mobile home such owners from losing their shelter as well as any equity in their mobile homes. The general assembly encourages local governments to allow and protect mobile home parks manufactured home communities in their jurisdictions and to enact plans to increase the number of mobile home parks such communities in their jurisdictions. The general assembly further encourages local governments to provide incentives to mobile home park the owners of manufactured home communities to attract additional mobile home parks manufactured home communities and to increase the viability of current parks communities. (2) The general assembly further finds and declares that it is the policy of the state to preserve affordable housing, enhance the quality and stability of manufactured home communities, and foster the commitment to society that comes through home ownership and self-governance by encouraging resident ownership of manufactured home communities, as appropriate, through resident owned communities, associations or cooperatives comprised of owners of manufactured homes, land trusts, nonprofit housing developers, and housing authorities, or similar organizations or entities. (3) This part 2 shall be liberally construed to accomplish the legislative intent expressed in subsections (1) and (2) of this section. 38-12-201.5. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Home owner" means any person or family of such person owning a mobile manufactured home that is subject to a tenancy in a mobile home park manufactured home community under a rental agreement. (1.5) "Management" or "landlord" means the owner or person responsible for operating and managing a mobile home park manufactured home community or an agent, employee, or representative authorized to act on said management's behalf in connection with matters relating to tenancy in the park community. (2) "Mobile home" means a single-family dwelling built on a permanent chassis designed for long-term residential occupancy and containing complete electrical, plumbing, and sanitary facilities and designed to be installed in a permanent or semipermanent manner with or without a permanent foundation, which is capable of being drawn over public highways as a unit, or in sections by special permit, or a manufactured home as defined in section 38-29-102 (6) if the manufactured home is situated in a mobile home park "Manufactured home" means any preconstructed building unit or combination of preconstructed building units, without motive power, where such unit or units are manufactured in a factory or at a location other than the residential site of the completed home, which is designed and commonly used for occupancy by persons for residential purposes, in either temporary or permanent locations, and which unit or units are not licensed as a vehicle. (3) "Mobile home park" or "park" means a parcel of land used for the continuous accommodation of five or more occupied mobile homes and operated for the pecuniary benefit of the owner of the parcel of land, his agents, lessees, or assignees. Mobile home park does not include mobile home subdivisions or property zoned for manufactured home subdivisions "Manufactured home community" or "community" means any individual site, area, tract, or parcel of land upon which five or more manufactured homes used or occupied for dwelling purposes are located, and shall include any roadway, building, structure, installation, enclosure, fixtures, equipment, or vehicle used or intended for use as a part of the facilities of the community. (4) "Mobile home space", "space", "mobile home lot" or "lot" means a parcel of land within a mobile home park designated by the management to accommodate one mobile home and its accessory buildings and to which the required sewer and utility connections are provided by the mobile home park. (5) "Premises" means a mobile home park manufactured home community and existing facilities and appurtenances therein, including furniture and utilities where applicable, and grounds, areas, and existing facilities held out for the use of home owners generally or the use of which is promised to the home owner. (6) "Rent" means any money or other consideration to be paid to the management for the right of use, possession, and occupation of the premises. (7) "Rental agreement" means an agreement, written or implied by law, between the management and the home owner establishing the terms and conditions of a tenancy, including reasonable rules and regulations promulgated by the park manufactured home community management. A lease is a rental agreement. (8) Repealed. (9) "Tenancy" means the rights of a home owner to use a space or lot within a park manufactured home community on which to locate, maintain, and occupy a mobile manufactured home, lot improvements, and accessory structures for human habitation, including the use of services and facilities of the park community. 38-12-202. Tenancy - notice to quit. (1) (a) No tenancy or other lease or rental occupancy of space in a mobile home park manufactured home community shall commence without a written lease or rental agreement, and no tenancy in a mobile home park manufactured home community shall be terminated until a notice to quit has been served. Said notice to quit shall be in writing and in the form specified in section 13-40-107 (2), C.R.S. The property description required in section 13-40-107 (2), C.R.S., shall be deemed legally sufficient if it states: (I) The name of the landlord or the mobile home park manufactured home community; (II) The mailing address of the property; (III) The location or space number upon which the mobile manufactured home is situate; and (IV) The county in which the mobile manufactured home is situate. (b) Service of the notice to quit shall must be as specified in section 13-40-108, C.R.S. Service by posting shall be deemed legally sufficient within the meaning of section 13-40-108, C.R.S., if the notice is affixed to the main entrance of the mobile manufactured home. (c) (I) Except as otherwise provided in subparagraph (II) of this paragraph (c), the home owner shall be given a period of not less than sixty days to remove any mobile manufactured home from the premises from the date the notice is served or posted. In those situations where a mobile manufactured home is being leased to, or occupied by, persons other than its owner and in a manner contrary to the rules and regulations of the landlord, then in that event, the tenancy may be terminated by the landlord upon giving a thirty-day notice rather than said sixty-day notice. (II) If the tenancy is terminated on grounds specified in section 38-12-203 (1) (f), the home owner shall be given a period of not less than ten days to remove any mobile manufactured home from the premises from the date the notice is served or posted. (2) No lease shall contain any provision by which the home owner waives his or her rights under this part 2, and any such waiver shall be deemed contrary to public policy and shall be unenforceable and void. In those situations where a mobile manufactured home is being leased to, or occupied by, persons other than its owner and in a manner contrary to the rules and regulations of the landlord or management, then, in that event, the tenancy may be terminated by the landlord upon giving a thirty-day notice rather than said sixty-day notice. (3) The landlord or management of a mobile home park manufactured home community shall specify, in the notice required by this section, the reason for the termination, as described in section 38-12-203, of any tenancy in such mobile home park manufactured home community. If the tenancy is being terminated based on the mobile home or mobile home manufactured home or manufactured home lot being out of compliance with the rules and regulations adopted pursuant to section 38-12-203 (1) (c), the notice required by this section shall include a statement advising the home owner that the home owner has a right to cure the noncompliance within thirty days of the date of service or posting of the notice to quit. The thirty-day period to cure any noncompliance set forth in this subsection (3) shall run concurrently with the sixty-day period to remove a mobile manufactured home from the premises as set forth in paragraph (c) of subsection (1) and subsection (2) of this section. Acceptance of rent by the landlord or management of a mobile home park manufactured home community during the thirty-day right to cure period set forth in section 38-12-203 (1) (c) shall not constitute a waiver of the landlord's right to terminate the tenancy for any noncompliance set forth in section 38-12-203 (1) (c). 38-12-202.5. Action for termination. (1) The action for termination shall be commenced in the manner described in section 13-40-110, C.R.S. The property description shall be deemed legally sufficient and within the meaning of section 13-40-110, C.R.S., if it states: (a) The name of the landlord or the mobile home park manufactured home community; (b) The mailing address of the property; (c) The location or space number upon which the mobile manufactured home is situate; and (d) The county in which the mobile manufactured home is situate. (2) Service of summons shall be as specified in section 13-40-112, C.R.S. Service by posting shall be deemed legally sufficient within the meaning of section 13-40-112, C.R.S., if the summons is affixed to the main entrance of the mobile manufactured home. (3) Jurisdiction of courts in cases of forcible entry, forcible detainer, or unlawful detainer shall be as specified in section 13-40-109, C.R.S. Trial on the issue of possession shall be timely as specified in section 13-40-114, C.R.S., with no delay allowed for the determination of other issues or claims which may be severed at the discretion of the trial court. (4) After commencement of the action and before judgment, any person not already a party to the action who is discovered to have a property interest in the mobile manufactured home shall be allowed to enter into a stipulation with the landlord and be bound thereby. 38-12-203. Reasons for termination. (1) A tenancy shall be terminated pursuant to this part 2 only for one or more of the following reasons: (a) Failure of the home owner to comply with local ordinances and state laws and regulations relating to mobile manufactured homes and mobile manufactured home lots; (b) Conduct of the home owner, on the mobile home park manufactured home community premises, which constitutes an annoyance to other home owners or interference with park management; (c) Failure of the home owner to comply with written rules and regulations of the mobile home park manufactured home community either established by the management in the rental agreement at the inception of the tenancy, amended subsequently thereto with the consent of the home owner, or amended subsequently thereto without the consent of the home owner on sixty days' written notice if the amended rules and regulations are reasonable; except that the home owner shall have thirty days from the date of service or posting of the notice to quit set forth in section 38-12-202 (3) to cure any noncompliance on the mobile home or mobile home manufactured home or manufactured home lot before an action for termination may be commenced, except if local ordinances, state laws and regulations, park community rules and regulations, or emergency, health, or safety situations require immediate compliance. If a home owner was in violation or noncompliance pursuant to this paragraph (c) and was given notice and a right to cure such noncompliance and within a twelve-month period from the date of service of the notice is in noncompliance of the same rule or regulation and is given notice of the second noncompliance, there shall be no right to cure the second noncompliance. Regulations applicable to recreational facilities may be amended at the reasonable discretion of the management. For purposes of this paragraph (c), when the mobile manufactured home is owned by a person other than the owner of the mobile home park manufactured home community, the mobile manufactured home is a separate unit of ownership, and regulations that are adopted subsequent to the unit location in the park community without the consent of the home owner and that place restrictions or requirements on that separate unit are prima facie unreasonable. Nothing in this paragraph (c) shall prohibit a mobile home park manufactured home community owner from requiring compliance with current park community unit regulations at the time of sale or transfer of the mobile manufactured home to a new owner. Transfer under this paragraph (c) shall not include transfer to a co-owner pursuant to death or divorce or to a new co-owner pursuant to marriage. (d) (I) Condemnation or change of use of the mobile home park manufactured home community. When the owner of a mobile home park manufactured home community is formally notified by a notice of intent to acquire pursuant to section 38-1-121 (1) or other similar provision of law, or a complaint in a condemnation action from an appropriate governmental agency that the mobile home park manufactured home community, or any portion thereof, is to be acquired by the governmental agency or may be the subject of a condemnation proceeding, the landlord shall, within seventeen days, notify the home owners in writing of the terms of the notice of intent to acquire or complaint received by the landlord. (II) In those cases where the landlord desires to change the use of the mobile home park manufactured home community and where such change of use would result in eviction of inhabited mobile manufactured homes, the landlord shall first give the owner of each mobile manufactured home subject to such eviction a written notice of the landlord's intent to evict not less than six months prior to such change of use of the land, notice to be mailed to each home owner. (e) The making or causing to be made, with knowledge, of false or misleading statements on an application for tenancy; (f) Conduct of the home owner or any lessee of the home owner or any guest, agent, invitee, or associate of the home owner or lessee of the home owner, that: (I) Occurs on the mobile home park manufactured home community premises and unreasonably endangers the life of the landlord, any home owner or lessee of the mobile home park manufactured home community, any person living in the park community, or any guest, agent, invitee, or associate of the home owner or lessee of the home owner; (II) Occurs on the mobile home park manufactured home community premises and constitutes willful, wanton, or malicious damage to or destruction of property of the landlord, any home owner or lessee of the mobile home park manufactured home community, any person living in the park community, or any guest, agent, invitee, or associate of the home owner or lessee of the home owner; (III) Occurs on the mobile home park manufactured home community premises and constitutes a felony prohibited under article 3, 4, 6, 7, 9, 10, 12, or 18 of title 18, C.R.S.; or (IV) Is the basis for a pending action to declare the mobile manufactured home or any of its contents a class 1 public nuisance under section 16-13-303, C.R.S. (2) In an action pursuant to this part 2, the landlord shall have has the burden of proving that the landlord complied with the relevant notice requirements and that the landlord provided the home owner with a statement of reasons for the termination. In addition to any other defenses a home owner may have, it shall be is a defense that the landlord's allegations are false or that the reasons for termination are invalid. 38-12-204. Nonpayment of rent - notice required for rent increase. (1) Any tenancy or other estate at will or lease in a mobile home park manufactured home community may be terminated upon the landlord's written notice to the home owner requiring, in the alternative, payment of rent or the removal of the home owner's unit from the premises, within a period of not less than five days after the date notice is served or posted, for failure to pay rent when due. (2) Rent shall not be increased without sixty days' written notice to the home owner. In addition to the amount and the effective date of the rent increase, such written notice shall must include the name, address, and telephone number of the mobile home park manufactured home community management, if such management is a principal owner, or owner of the mobile home park community and, if the owner is other than a natural person, the name, address, and telephone number of the owner's chief executive officer or managing partner; except that such ownership information need not be given if it was disclosed in the rental agreement made pursuant to section 38-12-213. 38-12-204.3. Notice required for termination. (1) Where the tenancy of a mobile manufactured home owner is being terminated under section 38-12-202 or section 38-12-204, the landlord or mobile home park manufactured home community owner shall provide such mobile manufactured home owner with written notice as provided for in subsection (2) of this section. Service of such notice shall must occur at the same time and in the same manner as service of: (a) The notice to quit as provided in section 38-12-202 (1); or (b) The notice of nonpayment of rent as provided in section 38-12-204 (1). (2) The notice required under this section shall must be in at least ten-point type and shall must read as follows: IMPORTANT NOTICE TO THE HOME OWNER: This notice and the accompanying notice to quit/notice of nonpayment of rent are the first steps in the eviction process. Any dispute you may have regarding the grounds for eviction should be addressed with your landlord or the management of the mobile home park manufactured home community or in the courts if an eviction action is filed. Please be advised that the "Mobile Home Park Act" "Manufactured Home Community Act", part 2 of article 12 of title 38, Colorado Revised Statutes, may provide you with legal protection: NOTICE TO QUIT: The landlord or management of a mobile home park manufactured home community must serve to a home owner a notice to quit in order to terminate a home owner's tenancy. The notice must be in writing and must contain certain information, including: The grounds for the termination of the tenancy; Whether or not the home owner has a right to cure under the "Mobile Home Park Act" "Manufactured Home Community Act"; and That the home owner has a right to mediation pursuant to section 38-12-216, Colorado Revised Statutes, of the "Mobile Home Park Act" "Manufactured Home Community Act". NOTICE OF NONPAYMENT OF RENT: The landlord or management of a mobile home park manufactured home community must serve to a home owner a notice of nonpayment of rent in order to terminate a home owner's tenancy. The notice must be in writing and must require that the home owner either make payment of rent and any applicable fees due and owing or remove the owner's unit from the premises, within a period of not less than five days after the date the notice is served or posted, for failure to pay rent when due. CURE PERIODS: If the home owner has a right to cure under the "Mobile Home Park Act" "Manufactured Home Community Act", the landlord or management of a mobile home park manufactured home community cannot terminate a home owner's tenancy without first providing the home owner with a time period of 30 days to cure the noncompliance. "Cure" refers to a home owner remedying, fixing, or otherwise correcting the situation or problem that caused the tenancy to be terminated pursuant to sections 38-12-202, 38-12-203, or 38-12-204, Colorado Revised Statutes. COMMENCEMENT OF LEGAL ACTION TO TERMINATE THE TENANCY: After the last day of the notice period, a legal action may be commenced to take possession of the space leased by the home owner. In order to evict a home owner, the landlord or management of the mobile home park manufactured home community must prove: The landlord or management complied with the notice requirements of the "Mobile Home Park Act" "Manufactured Home Community Act"; The landlord or management provided the home owner with a statement of reasons for termination of the tenancy; and The reasons for termination of the tenancy are true and valid under the "Mobile Home Park Act" "Manufactured Home Community Act". A home owner must appear in court to defend against an eviction action. If the court rules in favor of the landlord or management of the mobile home park manufactured home community, the home owner will have not less than 48 hours from the time of the ruling to remove the mobile manufactured home and to vacate the premises. If a tenancy is being terminated pursuant to section 38-12-203 (1) (f), Colorado Revised Statutes, the home owner shall have not less than 48 hours from the time of the ruling to remove the home and vacate the premises. In all other circumstances, if the home owner wishes to extend such period beyond 48 hours but not more than thirty days from the date of the ruling, the home owner shall prepay to the landlord an amount equal to any total amount declared by the court to be due to the landlord, as well as a pro rata share of rent for each day following the court's ruling that the mobile manufactured home owner will remain on the premises. All prepayments shall be paid by certified check, by cashier's check, or by wire transfer and shall be paid no later than 48 hours after the court ruling. 38-12-205. Termination prohibited. A tenancy or other estate at will or lease in a mobile home park manufactured home community may not be terminated solely for the purpose of making the home owner's space in the park community available for another mobile manufactured home or trailer coach. 38-12-206. Home owner meetings - assembly in common areas. Home owners shall have the right to may meet and establish a homeowners' association. Meetings of home owners or the homeowners' association relating to mobile manufactured home living and affairs in their park community common area, community hall, or recreation hall, if such a facility or similar facility exists, shall not be are not subject to prohibition by the park community management if the common area or hall is reserved according to the park community rules and such meetings are held at reasonable hours and when the facility is not otherwise in use; except that no such meetings shall be held in the streets or thoroughfares of the mobile home park manufactured home community. 38-12-207. Security deposits - legal process. (1) The owner of a mobile home park manufactured home community or his or her agents may charge a security deposit not greater than the amount of one month's rent or two month's rent for multiwide units. (2) Legal process, other than eviction, shall must be used for the collection of utility charges and incidental service charges other than those provided by the rental agreement. 38-12-208. Remedies. (1) (a) Upon granting judgment for possession by the landlord in a forcible entry and detainer action, the court shall immediately issue a writ of restitution which the landlord shall take to the sheriff. In addition, if a money judgment has been requested in the complaint and if service was accomplished by personal service, the court shall determine and enter judgment for any amounts due to the landlord and shall calculate a pro rata daily rent amount that must be paid for the manufactured home to remain in the park community. The court may rely upon information provided by the landlord or the landlord's attorney when determining the pro rata daily rent amount to be paid by the home owner. Upon receipt of the writ of restitution, the sheriff shall serve notice in accordance with the requirements of section 13-40-108, C.R.S., to the home owner of the court's decision and entry of judgment. (b) The notice of judgment shall state that, at a specified time not less than forty-eight hours from the entry of judgment if a tenancy is being terminated pursuant to section 38-12-203 (1) (f) and, in all other instances, not less than forty-eight hours from the entry of judgment, which may be extended to not more than thirty days after the entry of judgment if the home owner has prepaid by certified check, by cashier's check, or by wire transfer no later than forty-eight hours after the court ruling to the landlord an amount equal to any total amount declared by the court to be due to the landlord, as well as a pro rata share of rent for each day following the court's ruling that the mobile manufactured home owner will remain on the premises, the sheriff will return to serve a writ of restitution and superintend the peaceful and orderly removal of the mobile manufactured home under that order of court. The notice of judgment shall also advise the home owner to prepare the mobile manufactured home for removal from the premises by removing the skirting, disconnecting utilities, attaching tires, and otherwise making the mobile manufactured home safe and ready for highway travel. (c) Should the home owner fail to have the mobile manufactured home safe and ready for physical removal from the premises or should inclement weather or other unforeseen problems occur at the time specified in the notice of judgment, the landlord and the sheriff may, by written agreement, extend the time for the execution of the writ of restitution to allow time for the landlord to arrange to have the necessary work done or to permit the sheriff's execution of the writ of restitution at a time when weather or other conditions will make removal less hazardous to the mobile manufactured home. (d) If the mobile manufactured home is not removed from the landlord's land on behalf of the mobile manufactured home owner within the time permitted by the writ of restitution, then the landlord and the sheriff shall have the right to may take possession of the mobile manufactured home for the purposes of removal and storage. The liability of the landlord and the sheriff in such event shall be is limited to gross negligence or willful and wanton disregard of the property rights of the home owner. The responsibility to prevent freezing and to prevent wind and weather damage to the mobile manufactured home lies exclusively with those persons who have a property interest in the mobile manufactured home; except that the landlord may take appropriate action to prevent freezing, to prevent wind and weather damage, and to prevent damage caused by vandals. (e) Reasonable removal and storage charges and the costs associated with preventing damage caused by wind, weather, or vandals can be paid by any party in interest. Those charges will run with the mobile manufactured home, and whoever ultimately claims the mobile manufactured home will owe that sum to the person who paid it. (2) (a) Prior to the issuance of said writ of restitution, the court shall make a finding of fact based upon evidence or statements of counsel that there is or is not a security agreement on the mobile manufactured home being subjected to the writ of restitution. A written statement on the mobile manufactured home owner's application for tenancy with the landlord that there is no security agreement on the mobile manufactured home shall be constitutes prima facie evidence of the nonexistence of such security agreement. (b) In those cases where the court finds there is a security agreement on the mobile manufactured home subject to the writ of restitution and where that holder of the security agreement can be identified with reasonable certainty, then, upon receipt of the writ of restitution, the plaintiff shall promptly inform the holder of such security agreement as to the location of the mobile manufactured home, the name of the landlord who obtained the writ of restitution, and the time when the mobile manufactured home will be is subject to removal by the sheriff and the landlord. (3) The remedies provided in part 1 of this article and article 40 of title 13, C.R.S., except as inconsistent with this part 2, shall be are applicable to this part 2. 38-12-209. Entry fees prohibited - entry fee defined - security deposit - court costs - definition. (1) The owner of a mobile home park manufactured home community, or the agent of such owner, shall neither pay to nor receive from an owner or a seller of a mobile manufactured home an entry fee of any type as a condition of tenancy in a mobile home park manufactured home community. (2) As used in this section, "entry fee" means any fee paid to or received from an owner of a mobile home park manufactured home community or his or her agent except for: (a) Rent; (b) A security deposit against actual damages to the premises or to secure rental payments, which deposit shall not be greater than the amount allowed under this part 2. Subsequent to July 1, 1979, security deposits will remain the property of the home owner, and they shall be deposited into a separate trust account by the landlord to be administered by the landlord as a private trustee. For the purpose of preserving the corpus, the landlord will not commingle the trust funds with other money, but he or she is permitted to keep the interest and profits thereon as his or her compensation for administering the trust account. (c) Fees charged by any state, county, town, or city governmental agency; (d) Utilities; (e) Incidental reasonable charges for services actually performed by the mobile home park manufactured home community owner or his or her agent and agreed to in writing by the home owner. (3) The trial judge may award court costs and attorney fees in any court action brought pursuant to any provision of this part 2 to the prevailing party upon finding that the prevailing party undertook the court action and legal representation for a legally sufficient reason and not for a dilatory or unfounded cause. (4) The management or the resident may bring a civil action for violation of the rental agreement or any provision of this part 2 in the appropriate court of the county in which the park manufactured home community is located. Either party may recover actual damages or, the court may in its discretion award such equitable relief as it deems necessary, including the enjoining of either party from further violations. 38-12-210. Closed communities prohibited. (1) The owner of a mobile home park manufactured home community or his or her agent shall not require as a condition of tenancy in a mobile home park manufactured home community that the prospective home owner has purchased a mobile manufactured home from any particular seller or from any one of a particular group of sellers. (2) Such owner or agent shall not give any special preference in renting to a prospective home owner who has purchased a mobile manufactured home from a particular seller. (3) A seller of mobile manufactured homes shall not require as a condition of sale that a purchaser locate in a particular mobile home park manufactured home community or in any one of a particular group of mobile home parks manufactured home communities. (4) The owner or operator of a mobile home park manufactured home community shall treat all persons equally in renting or leasing available space. Notwithstanding the foregoing, nothing in this subsection (4) shall be construed to preclude precludes owners and operators of mobile home parks manufactured home communities from providing housing for older persons as defined in section 24-34-502 (7) (b), C.R.S. 38-12-211. Selling fees prohibited. The owner of a mobile home park manufactured home community or his or her agent shall not require payment of any type of selling fee or transfer fee by either a home owner in the park community wishing to sell his mobile home or her manufactured home to another party or by any party wishing to buy a mobile manufactured home from a home owner in the park community as a condition of tenancy in a mobile home park manufactured home community for the prospective buyer. This section shall in no way prevent the owner of a mobile home park manufactured home community or his or her agent from applying the normal park community standards to prospective buyers before granting or denying tenancy or from charging a reasonable selling fee or transfer fee for services actually performed and agreed to in writing by the home owner. Nothing in this section shall be construed to affect affects the rent charged. The owner of a mobile manufactured home shall have the right to may place a "for sale" sign on or in his mobile or her manufactured home. The size, placement, and character of such signs shall be are subject to reasonable rules and regulations of the mobile home park manufactured home community. 38-12-212. Certain types of owner-seller agreements prohibited. A seller of mobile manufactured homes shall not pay or offer cash or other consideration to the owner of a mobile home park manufactured home community or his or her agent for the purpose of reserving spaces or otherwise inducing acceptance of one or more mobile manufactured homes in a mobile home park manufactured home community. 38-12-212.3. Responsibilities of landlord of a manufactured home community - acts prohibited. (1) (a) Except as otherwise provided in this section, a landlord shall be responsible for and pay the cost of the maintenance and repair of: (I) Any sewer lines, water lines, utility service lines, or related connections owned and provided by the landlord to the utility pedestal or pad space for a mobile manufactured home sited in the park; and manufactured home community; (II) Any accessory buildings or structures, including, but not limited to, sheds and carports, owned by the landlord and provided for the use of the residents; and (III) The premises as defined in section 38-12-201.5 (5). (b) Any landlord who fails to maintain or repair the items delineated in paragraph (a) of this subsection (1) shall be responsible for and pay the cost of repairing any damage to a mobile manufactured home which results from such failure. The landlord shall ensure that all plumbing lines and connections owned and provided by the landlord to the utility pedestal or pad space for each mobile manufactured home in the mobile home park manufactured home community have plumbing that conformed to applicable law in effect at the time the plumbing was installed and that is maintained in good working order and running water and reasonable amounts of water at all times furnished to the utility pedestal or pad space and shall ensure that each pad space is connected to a sewage disposal system approved under applicable law; except that these conditions need not be met if: (I) A mobile manufactured home is individually metered and the tenant occupying the mobile manufactured home fails to pay for water services; (II) The local government in which the mobile home park manufactured home community is situated shuts off water service to a mobile manufactured home for any reason; (III) Weather conditions present a likelihood that water pipes will freeze, water pipes to a mobile manufactured home are wrapped in heated pipe tape, and the utility company has shut off electrical service to a mobile manufactured home for any reason or the heat tape malfunctions for any reason; or (IV) Running water is not available for any other reason outside the landlord's control. (c) The landlord shall give a minimum of two days' notice to a mobile manufactured home owner if the water service will be disrupted for planned maintenance. The landlord shall attempt to give a reasonable amount of notice to home owners if water service is to be disrupted for any other reasons unless conditions are such that providing the notice would result in property damage, health, or safety concerns or when conditions otherwise require emergency repair. (2) No landlord shall require a resident to assume the responsibilities outlined in subsection (1) of this section as a condition of tenancy in the mobile home park manufactured home community. (3) Nothing in this section: shall be construed as: (a) Limiting Limits the liability of a resident for the cost of repairing any damage caused by such resident to the landlord's property or other property located in the park manufactured home community; or (b) Restricting Restricts a landlord or his or her agent or a property manager from requiring a resident to comply with reasonable rules and regulations or terms of the rental agreement and any covenants binding upon the landlord or resident, including covenants running with the land which pertain to the cleanliness of such resident's lot and routine lawn and yard maintenance, exclusive of major landscaping projects. 38-12-212.7. Landlord's utilities account. (1) Whenever a landlord contracts with a utility for service to be provided to a resident, the usage of which is to be measured by a master meter or other composite measurement device, such landlord shall remit to the utility all moneys collected from each resident as payment for the resident's share of the charges for such utility service within forty-five days of the landlord's receipt of payment. (2) If a landlord fails to timely remit utility moneys collected from residents as required by subsection (1) of this section, such utility may, after written demand therefor is served upon the landlord, require the landlord to deposit an amount equal to the average daily charge for the usage of such utility service for the preceding twelve months multiplied by the sum of ninety. (3) Any utility which that prevails in an action brought to enforce the provisions of this section shall be is entitled to an award of its reasonable attorney fees and court costs. 38-12-213. Rental agreement - disclosure of terms in writing. (1) The terms and conditions of a tenancy must be adequately disclosed in writing in a rental agreement by the management to any prospective home owner prior to the rental or occupancy of a mobile manufactured home space or lot. Said disclosures shall include: (a) The term of the tenancy and the amount of rent therefor, subject to the requirements of subsection (4) of this section; (b) The day rental payment is due and payable; (c) The day when unpaid rent shall be considered in default; (d) The rules and regulations of the park community then in effect; (e) The name and mailing address where a manager's decision can be appealed; and (f) All charges to the home owner other than rent. (2) Said rental agreement shall be signed by both the management and the home owner, and each party shall receive a copy thereof. (3) The management and the home owner may include in a rental agreement terms and conditions not prohibited by this part 2. (4) The terms of tenancy shall must be specified in a written rental agreement subject to the following conditions: (a) The standard rental agreement shall must be for a month-to-month tenancy. (b) Upon written request by the home owner to the landlord, the landlord shall allow a rental agreement for a fixed tenancy of not less than one year if the home owner is current on all rent payments and is not in violation of the terms of the then-current rental agreement; except that an initial rental agreement for a fixed tenancy may be for less than one year in order to ensure conformity with a standard anniversary date. A landlord shall not evict or otherwise penalize a home owner for requesting a rental agreement for a fixed period. (c) A landlord may, in the landlord's discretion, allow a lease for a fixed period of longer than one year. In such circumstances, the requirements of paragraphs (a) and (b) of this subsection (4) shall do not apply. 38-12-214. Rules and regulations. (1) The management of a manufactured home community shall adopt written rules and regulations concerning all home owners' use and occupancy of the premises. Such rules and regulations are enforceable against a home owner only if: (a) Their purpose is to promote the convenience, safety, or welfare of the home owners, protect and preserve the premises from abusive use, or make a fair distribution of services and facilities held out for the home owners generally; (b) They are reasonably related to the purpose for which they are adopted; (c) They are not retaliatory or discriminatory in nature; and (d) They are sufficiently explicit in prohibition, direction, or limitation of the home owner's conduct to fairly inform him or her of what he or she must or must not do to comply. 38-12-215. New developments - rental of sites to dealers authorized. (1) The management of a new mobile home park or manufactured housing home community development may require as a condition of leasing a mobile home site or manufactured home site for the first time such site is offered for lease that the prospective lessee has purchased a mobile home or manufactured home from a particular seller or from any one of a particular group of sellers. (2) A licensed mobile home dealer or a manufactured home dealer may, by contract with the management of a new mobile home park or manufactured housing home community development, be granted the exclusive right to first-time rental of one or more mobile home sites or manufactured home sites. 38-12-216. Mediation, when permitted - court actions. (1) In any controversy between the management and a home owner of a mobile home park manufactured home community arising out of the provisions of this part 2, except for the nonpayment of rent or in cases in which the health or safety of other home owners is in imminent danger, such controversy may be submitted to mediation by either party prior to the filing of a forcible entry and detainer lawsuit upon agreement of the parties. (2) The agreement, if one is reached, shall be presented to the court as a stipulation. Either party to the mediation may terminate the mediation process at any time without prejudice. (3) If either party subsequently violates the stipulation, the other party may apply immediately to the court for relief. 38-12-217. Notice of sale of manufactured home community - notice of change in use - definition. (1) (a) The mobile home park owner of the manufactured home community shall notify the owners of all mobile manufactured homes in the park community and the municipality in which the park community is situated or, if none, the county in which the park community is situated of his or her intent to change the use of the land comprising the park community or to sell the park community pursuant to paragraph (b) or (c) of this subsection (1), as applicable. (b) If the mobile home park owner of the manufactured home community intends to sell the park community, the notification shall be made only once for any particular contract to sell or trade and shall be by written notice mailed to each mobile manufactured home owner at the address shown on the rental agreement with the mobile home park owner of the manufactured home community at least ten days prior to the first scheduled closing for the sale or trade. (c) If the mobile home park owner of the manufactured home community intends to change the use of the land comprising the mobile home park community, the mobile home park owner of the community shall give written notice to each mobile manufactured home owner at least one hundred eighty days before the change in use will occur. The mobile home park owner of the community shall mail the written notice to each mobile manufactured home owner at the address shown on the lease or rental agreement with the mobile home park owner of the community. (2) The provisions of paragraph (b) of subsection (1) of this section shall not apply to the sale of a mobile home park manufactured home community when such sale occurs between members of an immediate family, related business entities, members and managers of a limited liability company, shareholders, officers, and directors in a corporation, trustees and beneficiaries of a trust, or partners and limited liability partners in a partnership or limited liability partnership; except that such purchasers shall not change the use of the land comprising the mobile home park manufactured home community without complying with the notice provisions of this section. For purposes of this section, "immediate family" means persons related by blood or adoption who would be entitled to inherit from the community owner under part 1 or 2 of article 11 of title 15, C.R.S. 38-12-218. Manufactured home owners - right to form a cooperative. One or more members of a homeowners' association may, at any time, form a cooperative for the purposes of offering to purchase or finance a mobile home park manufactured home community. A home owner shall must be a member of the homeowners' association in order to participate in the cooperative, and participation in the cooperative shall be is voluntary. 38-12-219. Home owners' and owner or management's rights - treatment of manufactured home as real property. (1) Every home owner and landlord shall have or management of a manufactured home community has the right to the following: (a) Protection from abuse or disregard of state or local law by the landlord or management and home owners; (b) Peaceful enjoyment of the home owner's mobile manufactured home space, free from unreasonable, arbitrary, or capricious rules and enforcement thereof; and (c) Tenancy free from harassment or frivolous lawsuits by the landlord or management and homeowners. 38-12-220. Private civil right of action. Any home owner who owns a home in a mobile home park manufactured home community where the landlord has violated any provision of this article shall have a private civil right of action against the landlord. In any such action, the home owner shall be is entitled to actual economic damages and reasonable attorney fees and costs if the home owner is successful in the action. 38-12-221. Access by counties and municipalities. Notwithstanding any other provision of law, upon a finding that the utilities in a park manufactured home community create a significant health or safety danger to park community residents, the landlord of a mobile home park manufactured home community shall grant county or municipal officers or employees access to the mobile home park manufactured home community for the purposes of investigating or conducting a study related to such danger. SECTION 2. In Colorado Revised Statutes, 13-40-110, amend (2) as follows: 13-40-110. Action - how commenced. (2) In an action for termination of a tenancy in a mobile home park manufactured home community, the complaint, in addition to the requirements of subsection (1) of this section, shall specify the particular reasons for termination as such reasons are stated in section 38-12-203, C.R.S. Such complaint shall specify the approximate time, place, and manner in which the tenant allegedly committed the acts giving rise to the complaint. If the action is based on the mobile home or mobile home manufactured home or manufactured home lot being out of compliance with the rules and regulations adopted pursuant to section 38-12-203 (1) (c), C.R.S., the complaint shall specify that the home owner was given thirty days from the date of service or posting of the notice to quit to cure the noncompliance and that thirty days have passed and the noncompliance has not been cured. SECTION 3. In Colorado Revised Statutes, 32-1-103, amend (5) (d) and (23) (c) as follows: 32-1-103. Definitions. As used in this article, unless the context otherwise requires: (5) (d) For all elections and petitions that require ownership of real property or land, a mobile home as defined in section 38-12-201.5 (2) or 5-1-301 (29), C.R.S., or a manufactured home as defined in section 42-1-102 (106) (b), C.R.S., shall be are deemed sufficient to qualify as ownership of real property or land for the purpose of voting rights and petitions. (23) (c) For all elections and petitions that require ownership of real property or land, a mobile home as defined in section 38-12-201.5 (2) or 5-1-301 (29), C.R.S., or a manufactured home as defined in section 42-1-102 (106) (b), C.R.S., shall be are deemed sufficient to qualify as ownership of real property or land for the purpose of voting rights and petitions. SECTION 4. In Colorado Revised Statutes, amend 35-70-104.1 as follows: 35-70-104.1. Mobile home ownership - elections and petitions. Notwithstanding any other provision of this article to the contrary, for all elections and petitions that require ownership of real property or land, a mobile home as defined in section 38-12-201.5 (2) or 5-1-301 (29), C.R.S., or a manufactured home as defined in section 42-1-102 (106) (b), C.R.S., shall be are deemed sufficient to qualify as ownership of real property or land for the purpose of voting rights and petitions. SECTION 5. In Colorado Revised Statutes, 37-97-103, amend (6) as follows: 37-97-103. Mandatory use of metered water delivery and billing systems. (6) A mobile home park, as defined in section 38-12-201.5 (3) section 5-1-301 (29), C.R.S., which makes water service available to tenants but does not bill such tenants for water as a separate item is exempt from the provisions of this article. SECTION 6. In Colorado Revised Statutes, 38-12-506, amend (1) introductory portion as follows: 38-12-506. Opt-out. (1) If a dwelling unit is contained within a mobile home park manufactured home community, as defined in section 38-12-201.5 (3), or if there are four or fewer dwelling units sharing common walls or located on the same parcel, as defined in section 30-28-302 (5), C.R.S., all of which have the same owner, or if the dwelling unit is a single-family residential premises: SECTION 7. In Colorado Revised Statutes, 38-12-511, amend (1) (i) as follows: 38-12-511. Application. (1) Unless created to avoid its application, this part 5 shall not apply to any of the following arrangements: (i) Any relationship between the owner of a mobile home park manufactured home community and the owner of a mobile home manufactured home situated in the park. SECTION 8. In Colorado Revised Statutes, add 24-32-725 as follows: 24-32-725. Manufactured homes - duties - dispute resolution - manufactured home community fund - legislative declaration - definitions. (1) (a) The general assembly hereby finds, determines, and declares that it is the policy of the state to preserve affordable housing and that manufactured homes constitute an important and effective way to meet Colorado's affordable housing needs. By enacting this section, the general assembly intends to enhance the quality and stability of manufactured home communities, to preserve and strengthen the manufactured home industry, to establish alternative processes to time-consuming and costly processes for resolving disputes between landlords and home owners, to create the manufactured home community fund to assist owners of manufactured home communities and home owners in satisfying their mutual interests in the creation and preservation of strong, vibrant, and growing communities, and to encourage resident ownership of manufactured home communities, as appropriate. (b) This section is to be liberally construed to accomplish the legislative intent expressed herein. (2) As used in this section, unless the context otherwise requires: (a) "Fund" means the manufactured home community fund created in subsection (5) of this section. (b) "Home owner" has the same meaning as in section 38-12-201.5 (1), C.R.S. (c) "Management" or "landlord" has the same meaning as in section 38-12-201.5 (1.5), C.R.S. (d) "Manufactured home" has the same meaning as in section 38-12-201.5 (2), C.R.S. (e) "Manufactured home community" has the same meaning as in section 38-12-201.5 (3), C.R.S. (f) "MHCA" means the "Manufactured Home Community Act", part 2 of article 12 of title 38, C.R.S. (3) In connection with its responsibilities under this section, the division has the following powers and duties, without limitation: (a) To safeguard and promote the mutual interests of landlords or management of manufactured home communities and home owners; (b) To collect economic and demographic data annually from manufactured home communities across the state, including the amount of rent and rate of vacancy for each type of manufactured home in the community, as well as data concerning disputes over and alleged violations of the MHCA, and to proscribe the form of collection for such data; (c) To provide continuing educational opportunities for landlords of, and home owners within, manufactured home communities concerning their respective rights and responsibilities under the MHCA, this part 34, and under any other applicable laws of the state in addition to, without limitation, information concerning the formation of homeowner associations and resident owned communities; (d) To administer programs established by the state that are intended to safeguard and promote the maintenance, development, and success of manufactured home communities across the state; (e) To foster collaboration with local governments to better achieve the purposes of this section; (f) To create and administer the dispute resolution program in accordance with subsection (4) of this section; and (g) To administer the manufactured home community fund created in paragraph (a) of subsection (5) of this section. (4) (a) By enacting this subsection (4), it is the intent of the general assembly to provide an equitable as well as a less costly and more efficient way for landlords, management, and home owners to resolve disputes that may arise between or among them. (b) Not later than July 1, 2016, the division shall create by rule in accordance with article 4 of this title a dispute resolution program that will provide landlords and home owners with a cost-effective and time-efficient process to resolve disputes concerning alleged violations of the MHCA. (c) The program required by paragraph (b) of this subsection (4) must address such matters as are appropriate for inclusion in a dispute resolution program that will best fulfill the intent of this section. (d) In addition to its duties under subsection (3) of this section, the division shall also maintain for public dissemination a list of local government agencies and community-based nonprofit organizations that are created and empowered to mediate disputes between or among landlords, management, and home owners within manufactured home communities. The list required by this paragraph (d) must be made publicly available on the web site of the division. (5) (a) There is hereby created in the state treasury the manufactured home community fund. The fund is administered by the division. The fund consists of any moneys: (I) Appropriated to the fund by the general assembly; (II) Transferred into the fund from the Colorado housing investment fund created from the attorney general's custodial funds and administered by the division of housing in the department of local affairs; (III) Transferred into the fund from the housing investment trust fund created in section 24-32-717 (1) (a), or the housing development grant fund created in section 24-32-721 (1); and (IV) Collected by the division for purposes of this section from federal grants and from other contributions, gifts, grants, and donations received from any other organization, entity, or individual, public or private. (b) The fund also consists of any fees or interest earned on any of the moneys specified in paragraph (a) of this subsection (5) that have been transferred into the fund, which moneys the division is hereby authorized and directed to solicit, accept, expend, and disburse for the purposes specified in this section. (c) Any moneys in the fund at the end of any fiscal year do not revert to the general fund. The moneys in the fund are continuously appropriated to the division for the purposes specified in this section. For any state fiscal year, no more than three percent of the moneys appropriated from the fund may be expended for the administrative costs of the division in administering the trust fund. (d) In addition to program administration as specified in paragraph (c) of this subsection (5), moneys in the fund must be used, without limitation, as follows: (I) Assist with the costs of relocation incurred by home owners in connection with a change in land use affecting a manufactured home community; (II) Provide rent subsidies to assist home owners on fixed or low incomes in meeting their rent obligations; (III) Provide low interest loans or grants to the owners of manufactured home communities or local governments for the purpose of repairing aging or broken infrastructure within manufactured home communities; (IV) Preserve and expand the inventory of manufactured housing stock; (V) Leverage money at the local level or in concert with other public or private resources to achieve any of the uses of the fund specified in this paragraph (d); and (VI) Any other uses as will, in the determination of the division, promote the objectives of this section. SECTION 9. In Colorado Revised Statutes, 24-32-705, add (1) (u) as follows: 24-32-705. Functions of division - repeal. (1) The division has the following functions: (u) To perform the powers and duties delegated to it under section 24-32-725, and to generally administer said section in a manner that promotes the legislative intent specified in section 24-32-725 (1). SECTION 10. Act subject to petition - effective date. This act takes effect September 1, 2015; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.