Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0648.01 Bob Lackner x4350 SENATE BILL 16-057 SENATE SPONSORSHIP Kefalas, Ulibarri HOUSE SPONSORSHIP Ginal and Tyler, Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning mobile home owners who lease space in mobile home parks, and, in connection therewith, protecting the mutual property rights of mobile home owners and the owners of mobile home parks. 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.) Section 1 of the bill grants new powers to the division of housing within the department of local affairs (division) in connection with the promotion of the mutual interests of landlords and home owners within mobile home parks, pursuant to its statutory authority and subject to available appropriations. These powers include: Safeguarding and promoting the mutual interests of management or landlords and home owners; Collecting economic and demographic data annually about mobile home parks across the state, including vacancy and rental survey data, data concerning landlord-home owner disputes over alleged violations of the "Mobile Home Park Act" (act), demographic data about home owners within mobile home parks, including income levels, ages, and racial and ethnic identities, and proscribing the form of collection of such data that may include partnering with academia, the private sector, and nonprofit organizations; Providing continuing educational opportunities for landlords of, and home owners within, mobile home parks concerning their respective rights and responsibilities under the law and under any other applicable laws of the state in addition to, without limitation, information concerning the formation of home owner associations and resident-owned communities; Administering programs established by the state that are intended to safeguard and promote the maintenance, development, and success of mobile home parks across the state; Fostering collaboration with local governments; and Creating and administering 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 act. The bill requires the division to create the dispute resolution program by July 1, 2017. Section 1 of the bill further requires the division to 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 mobile home parks. The list must be made publicly available on the website of the division. Sections 4 and 5 of the bill make changes to the act as follows: Section 4 requires the management of a mobile home park to adopt reasonable written rules and regulations concerning all home owners' use and occupancy of the premises. The bill further specifies that such rules and regulations are deemed to be unreasonable and unenforceable against a home owner unless the management is able to establish that the rules satisfy a number of criteria specified in the act. In any controversy between the management and a home owner of a mobile home park arising out of the act, except for the nonpayment of rent or in cases in which the health or safety of other home owners is in imminent danger, section 5 requires the parties to submit to either mediation or another form of alternative dispute resolution prior to the filing of a forcible entry and detainer lawsuit. The choice of alternative dispute resolution methods is dependent upon agreement of the parties. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-32-725 as follows: 24-32-725. Promotion of mutual interests of landlords and home owners - mobile home parks - data collection - dispute resolution - other duties of division - legislative declaration - definitions. (1) (a) The general assembly hereby finds, determines, and declares that it is the policy of the state to collaborate with the private sector to preserve and develop affordable housing and that mobile homes, manufactured housing, and factory-built housing constitute important and effective resources to meet Colorado's affordable housing needs. By enacting this section, the general assembly intends to enhance the quality and stability of mobile home parks, to strengthen the manufactured home industry, to establish alternative dispute resolution processes, to collect and analyze relevant data, and to support resident ownership of mobile home parks as appropriate. (b) By enacting this section, 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. (c) 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) "Act" means the "Mobile Home Park Act", part 2 of article 12 of title 38, C.R.S. (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) "Mobile home park" has the same meaning as in section 38-12-201.5 (3), C.R.S. (3) Pursuant to its statutory authority and subject to available appropriations, and 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 management or landlords and home owners; (b) For the purpose of understanding trends affecting manufactured housing and mobile home parks, to collect economic and demographic data annually about mobile home parks across the state, including vacancy and rental survey data, data concerning landlord-home owner disputes over alleged violations of the act, demographic data about home owners within mobile home parks, including income levels, ages, and racial and ethnic identities, and to proscribe the form of collection of such data that includes partnering with academia, the private sector, and nonprofit organizations; (c) To provide continuing educational opportunities for landlords of, and home owners within, mobile home parks concerning their respective rights and responsibilities under the act, this part 7, and under any other applicable laws of the state in addition to, without limitation, information concerning the formation of home owner 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 mobile home parks across the state; (e) To foster collaboration with local governments to better achieve the purposes of this section; and (f) To create and administer the dispute resolution program in accordance with subsection (4) of this section. (4) (a) Not later than July 1, 2017, 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 act. (b) The program required by paragraph (a) 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. (c) 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 mobile home parks. The list required by this paragraph (c) must be made publicly available on the website of the division. SECTION 2. 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) Pursuant to its statutory authority and subject to available appropriations, 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 3. In Colorado Revised Statutes, amend 38-12-201.3 as follows: 38-12-201.3. Legislative declaration - increased availability of mobile home parks. (1) The general assembly hereby finds and declares that mobile 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, there is a need to protect mobile home owners from eviction with short notice so as to prevent mobile home 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 in their jurisdictions and to enact plans to increase the number of mobile home parks in their jurisdictions. The general assembly further encourages local governments to provide incentives to mobile home park owners to attract additional mobile home parks and to increase the viability of current parks. (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 mobile home parks, and foster the commitment to society that comes through home ownership and self-governance. (3) This part 2 shall be liberally construed to accomplish the legislative intent expressed in subsections (1) and (2) of this section. SECTION 4. In Colorado Revised Statutes, amend 38-12-214 as follows: 38-12-214. Rules and regulations. (1) The management shall adopt reasonable 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 deemed to be unreasonable and unenforceable against a home owner unless the management is able to establish that: (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 of what he must or must not do to comply. SECTION 5. In Colorado Revised Statutes, 38-12-216, amend (1) as follows: 38-12-216. Mediation, when permitted - court actions. (1) In any controversy between the management and a home owner of a mobile home park 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 must be submitted to either mediation or another form of alternative dispute resolution by either party prior to the filing of a forcible entry and detainer lawsuit, which choice of alternative dispute resolution methods is dependent upon agreement of the parties. SECTION 6. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2016, if adjournment sine die is on May 11, 2016); 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 such period, 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.