Date: 03/17/2010

Final
BILL SUMMARY for SB10-156

SENATE COMMITTEE ON JUDICIARY

Votes: View--> Action Taken:
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04:32 PM -- Senate Bill 10-156

Senator Heath, prime sponsor, presented Senate Bill 10-156. The bill provides additional protections from eviction without cause and from eviction with short notice to mobile home owners who lease space in mobile home parks. Senator Heath distributed prepared Amendment L.003 (Attachment H). Senator Heath explained his reasons for sponsoring the bill and described the negotiations undertaken concerning its provisions. He walked the committee through the bill and the amendment. He responded to questions from the committee.

100317AttachH.pdf

Senator Carroll announced that witnesses would be limited to three minutes of testimony, questions not included.

The following individuals testified regarding the bill:

04:50 PM --
Ms. Jennifer Edwards, representing the housing community of Cave Creek, testified regarding the bill. Ms. Edwards is a resident of a mobile home. She raised concerns about the provisions of the bill concerning the length of time individuals would have to vacate a mobile home property after a court-ordered eviction. Ms. Edwards provided a handout to the members of the committee, but no copies were available for the archives. She responded to questions from the committee.

04:53 PM --
Ms. Kimberly Swarts, representing Swarts Mobile Home Park, testified regarding the bill. Ms. Swarts owns a mobile home park. She discussed the history of the park. She described the problems that may arise when an individual is evicted from park properties. She indicated that nonpayment of rent is the number one reason she begins eviction proceedings against residents. She said that individuals who are evicted often become angry and destructive. Ms. Swarts responded to questions from Senator King concerning the mobile home owners in her park. Senator Heath clarified that the bill does not address mobile home owners who default on a mortgage. He stressed that, under the bill, tenants must prepay their rent in order to stay on the property after an eviction notice has been served.

05:01 PM

Ms. Swarts responded to questions from Senator Steadman and Senator Newell. Senator Lundberg discussed the time line of an eviction process. Senator Heath and Senator King discussed a potential amendment to the bill.

05:06 PM --
Ms. Barbara Trevarton, representing Cloverleaf Community, testified regarding the bill. Ms. Trevarton agreed with the testimony of the two previous witnesses. She stated that the bill would be detrimental to the maintenance of a quality manufactured home community, and therefore would also be detrimental to the individuals living in a manufactured home community. She described the notices given to tenants when rules and policies are broken. She stressed that it is only after a number of written notices are given that a notice to vacate may be served. She said that the bill's provisions to extend the amount of time that an individual would have to vacate a home would disproportionately affect the individuals who had not been asked to vacate. Ms. Trevarton then moved on to a discussion of utility repairs. She responded to questions from Senator Carroll concerning the process for moving a mobile home out of a park. Ms. Trevarton discussed the costs associated with such a move. Senator Lundberg asked about a time line that would be associated with a utility repair. Ms. Trevarton responded to questions from Senator King about the due diligence of a park owner to repair utilities. Senator Steadman asked for information about the frequency of moving mobile homes.


05:21 PM --
Mr. Dayton Mong, representing Curve Mobile Home Park, testified in opposition to the bill. He distributed a handout to the committee (Attachment I). He discussed the provisions of the bill that he believes would increase costs and decrease quality of life for residents. Senator Lundberg remarked on Mr. Mong's testimony.

100317AttachI.pdf


05:25 PM --
Mr. Larry Henderson, representing Green Acres Adult Community, testified in opposition to the bill. Mr. Henderson described his concerns with the bill. He asked the committee to vote no on the bill. Mr. Henderson responded to questions from Senator King. Senator Heath said that he agreed with Mr. Henderson's comments concerning peaceable assembly within a mobile home park; Senator Heath clarified that he did not intend to open the park up to strangers. The committee discussed the possibility of amending the bill to address Mr. Henderson's concerns on the issue of peaceable assembly within a mobile home park.


05:34 PM --
Ms. Angela Whitford, an attorney from the law firm of Sherman & Howard, testified in opposition to the bill on behalf of her client, the Rocky Mountain Home Association. She distributed a handout to the committee (Attachment J). Ms. Whitford discussed the provisions of the bill that she believes would constitute a taking and would be unconstitutional. She spoke about relocation expenses. She responded to questions from Senator Carroll concerning compensation for property rights. Senator Hudak spoke about costs that park owners currently bear compared to costs that they would bear if the bill were to pass. Ms. Whitford discussed a park owner's right to use his or her property as he or she sees fit. Discussion between Senator Hudak and Ms. Whitford continued. Senator Renfroe asked Ms. Whitford to discuss whether the provisions of a lease address issues related to the sale of the park or the removal of a home. Ms. Whitford explained that leases may vary.

100317AttachJ.pdf


05:44 PM --
Ms. Betty Carney, representing herself as a real estate broker and as a park owner, testified in opposition to the bill. Ms. Carney described her experience with mobile home parks and with the real estate industry. She said that it would be a last resort to tear out a mobile home park. Ms. Carney responded to questions from Senator Newell about whether Denver is attempting to close mobile home parks. Discussion continued concerning the process for handling complaints about mobile home parks. Senator Hudak asked for clarification concerning Ms. Carney's reasons for opposing the bill. Ms. Carney stated that she does not think that the bill is necessary and she does not think that all owners should be punished because of the actions of some. Discussion continued between Senator Hudak and Ms. Carney. Senator Heath commented on Ms. Carney's testimony.


05:53 PM --
Mr. Mirko "MJ" Vukovich, representing the Colorado Real Estate and Investment Company, testified in opposition to the bill. Mr. Vukovich described the effects of the economy on his business and discussed his concerns with the effects of the bill.


05:56 PM --
Mr. Scott Van Ramshorst, representing American Family Communities, LLC, testified in opposition to the bill. He said that the bill was not written with a true understanding of the nuances of the operations of a mobile home community. He expressed his concerns that the bill would protect "bad" residents, and that the negative impacts of such protection would be felt by "good" residents. He stated that an eviction for a rule violation is often a last resort. He described situations when it is imperative to be able to evict a resident to protect the safety of other residents. He expressed his belief that the bill rests on a flawed assumption that mobile homes cannot be moved. Mr. Van Ramshorst responded to questions from Senator Newell concerning practices in other states on this issue. He said that the bill is the most restrictive legislation in any of the states with which he is familiar. Discussion continued concerning whether and how the bill could be improved to address the concerns of property owners. Senator Heath remarked that not all owners operate as well as Mr. Van Ramshorst's company.


06:02 PM --
Mr. David Lentz, representing Green Courte Partners, LLC and American Land Lease, Inc., testified in opposition to the bill. Mr. Lentz stated that his businesses aim to provide affordable, quality housing. He discussed the effects of the economy on his businesses. He said that if this bill had been in effect previously, his businesses might have decided not to invest in properties in Colorado. He expressed his belief that the bill would affect his business' ability to invest, provide quality affordable housing, and make rational decisions concerning properties. He expressed his support for the comments of the previous witness.


06:06 PM --
Mr. John Muhr, representing Franklin and El Morro Mobile Home Parks, testified in opposition to the bill. Mr. Muhr described his family's involvement in mobile home parks and spoke about his family's efforts to keep costs down for residents. He noted that not all costs for residents are under the park owner's control, such as utility costs. He said that the bill would pass costs on to owners and therefore to tenants. Mr. Muhr responded to questions from Senator Hudak and from Senator King.


06:11 PM --
Mr. Tom Trim, representing himself as the owner of a mobile home park, testified in opposition to the bill. He discussed the provision of the bill requiring a park owner to purchase all the homes in the park in the event of redevelopment. He expressed his belief that this provision would keep owners from opening any new parks, and would lead to the deterioration of existing parks. Senator Heath responded to Mr. Trim's testimony.


06:16 PM --
Ms. Meghan Pfanstiel, representing the Rocky Mountain Home Association, testified in opposition to the bill. She distributed a packet of letters to the committee (Attachment K). She described her concerns with the bill and addressed previous committee questions. Senator King asked Ms. Pfanstiel to comment on whether any park owner in the state feels that the current balance between owners and tenants needs to be addressed. Ms. Pfanstiel discussed the statewide mobile home park vacancy rate of 16 percent; she suggested that the high vacancy rate has led owners to work to help their residents. Senator Newell asked whether the bill could be amended to a point where the Rocky Mountain Home Association could be neutral or supportive of the bill. The committee discussed the negotiations leading to the bill.

100317AttachK.pdf


06:24 PM --
Mr. Grady Hunt, representing American Land Lease, testified in opposition to the bill. Mr. Hunt described his concerns with the bill. He responded to questions from Senator Hudak. Mr. Hunt stated that the existing laws pertaining to this issue work very well.


06:26 PM --
Ms. Sherry Armstrong, representing the American Mobile Home Association, testified in support of the bill. Ms. Armstrong discussed existing laws pertaining to this issue. She said that the residents of mobile home parks are homeowners and have property rights. She spoke about the movement of mobile homes.


06:30 PM --
Ms. Kit Basom, representing Dr. Richard Williams, testified in support of the bill. Dr. Williams was unable to attend the hearing. Ms. Basom distributed a letter from Dr. Williams in support of the bill (Attachment L). She read the letter to the committee. Senator Heath shared additional remarks. He commented that the provisions of the bill are not as strict as the laws in other states. Ms. Basom noted that Dr. Williams is able to provide more detailed information on laws in other states.

100317AttachL.pdf


06:35 PM --
Mr. Mark Robbins, representing himself, testified in support of the bill. He discussed the importance of the bill. He said that the current mobile home industry is not a free market system. He spoke about the disadvantages of the current land-lease model. Mr. Robbins noted that many cities and counties do not allow mobile homes to be placed on private property, which results in a long-term home on a short-term lease. He described why mobile home parks are so lucrative for investors. He expressed his hope that the playing field would be leveled.


06:39 PM --
Ms. Tanya Petty, representing Vista Village Mobile Home Park, testified in support of the bill. She spoke about her former neighbors, who she believes were unfairly evicted from their homes. She said that such evictions took place due to lack of sufficient governmental regulation. She shared the stories of several individuals who had been evicted. Ms. Petty responded to questions from Senator Carroll concerning whether a mobile home owner who is evicted is ever compensated for the loss of a residence. In response to questions from Senator Hudak, Ms. Petty stated that park owners harass, intimidate, and discriminate against residents in order to evict them. Senator King commented on Ms. Petty's testimony. Committee discussion continued.


06:45 PM --
Ms. Elizabeth Petty, representing Vista Village Mobile Home Park, testified in support of the bill. She shared the stories of friends who had been evicted from a mobile home park. She then discussed an experience related to peaceable assembly within a mobile home park. Ms. Petty responded to comments from Senator Newell.


06:50 PM --
Mr. Macon Cowles, representing the Boulder City Council, testified in support of the bill. He stated that the Boulder City Council had voted unanimously to support the bill. Mr. Cowles described the Boulder City Council's experience with a situation that would be addressed by the bill. He discussed the existing law related to mobile home parks, and explained the changes made by the bill. Senator King asked if increased regulation would make the parks more or less affordable. Mr. Cowles responded that the market is not providing adequate protection for residents of mobile homes. Discussion continued between Senator King and Mr. Cowles. Senator Renfroe asked for further clarification concerning Boulder's involvement with mobile home parks.


06:58 PM

The committee stood in a brief recess.


07:09 PM

The committee came back to order.



07:09 PM -- Mr. Sam Alschuler, representing himself, testified in support of the bill. He described his experiences as the resident of a mobile home park. He said that he would be happy to pay more for a home that was taken care of properly.


07:13 PM --
Ms. Elvia Allen, representing herself, testified in support of the bill. Ms. Allen said that the bill would provide protections to residents of mobile homes. She spoke about incidents when residents are evicted because of discrimination or for petty reasons. She stated that residents should be compensated if a mobile park owner makes changes of use to a mobile home park, because residents often invest significant funds in their mobile homes. She discussed local regulations concerning mobile home parks. Ms. Allen responded to questions from Senator Newell.


07:17 PM --
Mr. David Bye, representing himself, testified in support of the bill. He indicated that he was also testifying on behalf of Mr. Arthur Jacobs, who represents Colorado Legal Services and was unable to attend the hearing. Mr. Bye discussed his experience as a lawyer specializing in housing law. He said that the bill is an issue of property rights as well as human rights.


07:21 PM --
Ms. Kathy Haddock, representing the City of Boulder Attorney's Office, testified in support of the bill. She addressed previous questions from the committee. She stated that not all mobile park owners manage their parks as well as the owners who testified earlier. She expressed her belief that the provisions of the bill would not affect park owners who are already managing their parks well. She explained several legal issues pertaining to the management of mobile home parks. Ms. Haddock responded to questions from Senator Newell.


07:31 PM --
Mr. Greg Perley, representing himself, testified in support of the bill. He discussed the decline of his property value, which he believes is the result of intimidation by mobile home park owners. Mr. Perley responded to questions from Senator Renfroe concerning compensation for residents of mobile home parks. Senator Renfroe commented on the property rights of residents of mobile home parks.


07:42 PM --
Ms. Rita Bowman, representing herself, testified in support of the bill. She described her experiences as the resident of a mobile home park. She spoke about the difficulties of being evicted.


07:43 PM

Senator Heath provided closing remarks. He distributed prepared Amendments L.004 and L.005 (Attachments M and N, respectively). He described the amendments. Senator Carroll announced that the bill would be laid over for action only.