Selling a Mobile Home Park? Colorado is Adding New Transparency Rules.

The Bottom Line

If you live in or own a mobile home park, the state is heavily expanding the rulebook. This bill caps the registration fees passed on to tenants, requires deep financial disclosures when an owner wants to sell, and stops landlords from evicting residents over code violations unless a government agency has actually issued a final order.

What This Bill Actually Does

HB26-1224 makes substantial changes to the Colorado Mobile Home Park Act, altering how parks are managed, how evictions are handled, and what happens when an owner decides to sell the property. Under current law, landlords can terminate a tenancy if a resident violates local ordinances or state laws regarding their mobile home. This bill tightens that leash: a landlord can only pursue termination if a local or state government agency has actually issued a final order finding that a violation occurred. Additionally, if a landlord is temporarily prohibited from raising rent for any reason, they are now required to send a written notice to all residents within 14 days explaining the freeze and the reason behind it.

The most extensive changes involve what happens when a park goes up for sale. When a landlord accepts an offer, they must give the residents (and the local county or municipal clerk) a massive disclosure of the park's financials and infrastructure. This goes far beyond the basic sale price. The owner must explain the basis for the purchase price, including recent appraisals, rent projections, nonpublic market data formulas, and a detailed list of the age of major infrastructure like water lines, sewer systems, and plumbing. If the buyer is an investor, the landlord must disclose any shared directors between the buyer and seller, the buyer's source of financing, and any side agreements about the distribution of sale proceeds.

Finally, the legislation protects residents who want to form a cooperative to buy the park themselves. It mandates a 90-day due diligence period baked into the existing 120-day window residents have to close a purchase. If the park is being sold to an investor as part of a larger portfolio sale (multiple properties bundled together), the landlord has to disclose any bulk discounts applied to the deal and offer that same proportional discount to the home owners. The bill explicitly requires sales to be conducted as arms-length transactions in good faith, outlawing anticompetitive practices designed to inflate the park's price just to block a resident buyout. It also caps the portion of the state's annual mobile home registration fee that a landlord can pass on to a tenant at $17 or half the fee, whichever is less.

What It Means for You

For the roughly 100,000 Coloradans living in mobile home parks, this legislation is a major upgrade to your financial predictability and housing security. The most immediate impact on your wallet is the hard cap on the state registration fee. Once this takes effect, landlords can only charge you a maximum of $17 per year to cover this state-mandated fee, ensuring you don't absorb unfair administrative costs. More importantly, your housing is more secure. You can no longer be evicted because a park manager simply claims you violated a local housing code (like having grass that is too long or an unapproved shed). Before they can terminate your lease on those grounds, a local or state government agency must actually investigate and issue a final order confirming the violation.

If your park ever goes up for sale, this bill gives you and your neighbors a genuine fighting chance to buy the land under your homes. Historically, residents trying to form a cooperative to buy their park were flying blind, guessing at the property's true value. Now, the owner must hand over the park's rent roll, three years of operating expenses, utility bills, and recent appraisals within seven calendar days of your request. You'll also know exactly how old the sewer lines, electrical infrastructure, and plumbing are before you ever make an offer, protecting you from buying a park that requires immediate, massive repairs.

The law also ensures that your community has the actual time needed to get your ducks in a row. By guaranteeing a 90-day due diligence period as part of your 120-day closing window, your resident association has the breathing room to secure financing, order independent inspections, and finalize title work. Plus, if the owner is trying to sell your park wrapped up in a multi-property mega-deal to a corporate investor, they have to pass any bulk portfolio discount on to you. It's a fundamental shift designed to level the playing field for mobile home residents who want to own their communities.

What It Means for Your Business

If you own, manage, or invest in Colorado mobile home parks, HB26-1224 introduces significant new compliance hurdles, particularly regarding property management and exit strategies. On the daily operational side, your ability to terminate leases over code violations is now tied directly to government bureaucracy. You can no longer initiate eviction proceedings for a local ordinance violation unless a state or local agency has issued a final order confirming the violation. This will likely delay your ability to remove problem tenants or force compliance on lot maintenance, as you must wait for a municipal inspector to act. Additionally, if you are ever hit with a temporary rent increase prohibition, you have a strict 14-day window to issue formal written notices to all affected tenants explaining the freeze.

The biggest operational shift occurs when you decide to sell the asset. The days of keeping your financials closely guarded during a transaction are over. If you accept a conditional offer, you are legally required to provide extensive documentation to the residents and the local government clerk. This means opening your books to show recent appraisals, nonpublic market data formulas, and maintenance records for the last three years. You must also disclose the legal entities formed for the transaction, sources of financing, and any shared directors between you and the buyer. You'll want to ensure your bookkeeping and infrastructure records are impeccable long before you list the property.

For real estate developers and institutional investors, this bill alters your acquisition strategy. Any proposed sale must be conducted as an arms-length transaction, and the state is explicitly cracking down on artificially inflating listing prices or colluding to prevent resident associations from matching an offer. Furthermore, if you are buying or selling a park as part of a larger portfolio sale, the exact percentage discount applied to the overall package must be mathematically applied to the mobile home park and offered to the residents if they submit a competing bid. You will need to work closely with your legal counsel to structure multi-asset deals, keeping in mind that residents are now guaranteed a 90-day due diligence period if they match the offer. These rules take effect August 12, 2026, assuming the legislature adjourns on schedule.

Follow the Money

For a bill that significantly rewrites real estate and property management rules, the actual cost to Colorado taxpayers is practically zero. The nonpartisan fiscal note projects no new state revenue and no new state expenditures, meaning the state doesn't need to appropriate any new taxpayer funds to make this work. The Department of Local Affairs (DOLA), the Judicial Department, and the Attorney General's office will handle any extra oversight, document review, or enforcement using their existing budgets and staff.

The only potential financial ripples would hit the court system. If the new, stricter eviction rules or the complex sale disclosure requirements lead to more civil lawsuits between park owners and tenants, the Judicial Department might see a slight bump in court fee revenue (which is subject to TABOR limits). However, the state assumes most landlords will simply comply with the new rules, keeping the financial footprint of this legislation negligible at the state level.

Where This Bill Stands

HB26-1224 is currently Signed Into Law. The latest official action came on 06/02/2026: Governor Signed.

That means the legislative process is complete and the bill is now law. The remaining questions are about implementation timing and how agencies, businesses, or local governments respond.