Waiting Periods and Report a Sale

Opportunity to Purchase

Colorado law grants home owners time to form a group and make an offer to buy the mobile home park, which is called their opportunity to purchase. This means that sellers have at least one, if not more, waiting periods they must honor after posting a notice of intent to sell.

Think of it this way: After a landlord posts a notice of intent to sell, two countdown clocks start running at the same time:

• 90 days to wait to ask for home owners’ signatures on whether they want to accept or decline the opportunity to purchase the park
• 120 days to wait for home owners to form a group and submit an offer, unless 50% declined the opportunity

If a landlord posts another notice of intent to sell because they took another triggering action, both countdowns start all over again.

90 Days After the Notice: Wait to Ask for Signatures

As a seller, you must wait for at least 90 calendar days after providing notice of your intent to sell the park to ask for home owners' intentions or signatures accepting or declining the opportunity to purchase the park.

After 90 days, sellers may request home owners’ signatures.  If sellers request signatures, they must do so using the division-approved forms, Home Owner Intent - Opportunity to Purchase Park, in English and Spanish.

Unless at least 50% of total home owners in the park return the forms and state that they are not interested in participating in an effort to buy the park, you must honor home owners’ 120-day opportunity to make an offer.

Step-by-Step Guide for the 120-Day Waiting Period

Breaking down the 120-day waiting period for park sales in Colorado, especially for mobile home parks, and detailing what constitutes good faith negotiations under the state statutes can help potential sellers navigate this period effectively. Here is a simplified step-by-step guide, with references to specific statutes that outline the rights and processes for the sale of a mobile home park.

Post Notices of Intent to Sell

As a seller, you must first issue a notice of intent to sell the mobile home park.  This notice is the starting point of the 120-day period.  It should be delivered to each home owner, the county and/or municipality and to the Division of Housing, informing them of your intention to sell the park. See section 38-12-217(1)(a), C.R.S.

Notice

Alongside the notice, you must provide comprehensive information on the terms of the sale.  This includes the legal description of the property, price, terms and conditions of the sale, any financial considerations, and other relevant details.  You may also request to keep the sale information confidential. This information helps home owners understand what’s at stake and whether they want to pursue a purchase.  See section 38-12-217(3), C.R.S.

Good Faith Negotiation Period Starts

Once home owners are informed, the 120-day period is also an opportunity for them to organize and prepare an offer, if they are interested in purchasing the park.  Good faith negotiation means that during this time, you, as the seller, engage earnestly with any proposals from the home owners.  This doesn’t necessarily mean you have to accept their offer, but you must consider it seriously and negotiate in an open and honest way.

No Unreasonable Refusal

If the home owners submit an offer to purchase the park, you cannot unreasonably refuse it.  Good faith negotiations require a willingness to arrive at terms acceptable to both parties, within reason. See section 38-12-217(5)(b)(l), C.R.S.

Engage in Transparent Communication

Throughout the negotiating process, maintain clear and transparent communication with the home owners.  Any counteroffers or negotiations should be clearly documented and shared with the home owners’ representatives to ensure transparency.

• You may enter a conditional contract with an outside individual or business. For example, the conditional contract recognizes home owners' opportunity to purchase and says the potential sale is conditioned on compliance with section 38-12-217, C.R.S.
• Home owners have the opportunity to assign their right to make an offer to buy the park to a public entity, like a local government or housing authority. If home owners enter into an assignment contract with a public entity, and other conditions in the statute are met, the public entity could have a right of first refusal to buy the park for the purpose of preserving it as long-term affordable housing. See section 38-12-217(8), C.R.S

Finalization or Moving Forward

If you reach an agreement with the home owners or their representatives, the process to finalize the sale can begin. If no agreement is reached by the end of the 120-day period, the seller can then proceed to sell the mobile home park to other buyers, but the initial offer and terms presented to the home owners must be maintained or the process starts over. See section 38-12-217(6)(b), C.R.S.

Compliance and Affidavit

After the sale concludes, regardless of the buyer, you must file an affidavit of compliance with the Division of Housing and your municipality or county, confirming adherence to the statutes governing the sale process. See section 38-12-217(11), C.R.S

By following these steps and adhering to the stipulations of section 38-17-217, C.R.S., sellers can navigate the 120-day waiting period effectively and in compliance with Colorado law, paving the way for a smooth and equitable sale process.

Report a Sale

Non-Exempt Sale: File the Affidavit of Compliance

After a sale is complete, the seller must email the program to request an affidavit demonstrating compliance with section 38-12-217, C.R.S.

The affidavit can’t be filed before the home owners’ opportunity to purchase terminates or expires. See section 38-12-217(1)(c) or (6)(a), C.R.S.

It also must be filed:

• On the division-approved form
• Within 30 calendar days after the sale or transfer of the park is final
• With the
  • Division of Housing
  • Municipality or, if the park is in an unincorporated area, the county, where the park is located

To report a non-exempt park sale, email MHPOP@state.co.us to request an Affidavit of Compliance for Mobile Home Park Sales.

After completing the affidavit, submit it.

Exempt Sale: Transfer Form

A landlord is not required to provide advance notice of their intent to sell a park or extend an opportunity to purchase to home owners if the sale or transfer of the mobile home park is to certain related family members or business entities described in section 38-12-217(12), C.R.S.

To report an exempt park sale or transfer, email MHPOP@state.co.us to request the Affidavit of Compliance for Exempt Mobile Home Park Sales/Transfers.

Submit the Affidavit of Compliance or Transfer Form

Submit the affidavit or form by:

• Email to MHPOP@state.co.us
• Fax to 720-927-2630, with a cover page noted, "Attention: Mobile Home Park Sales"
• Mail to: Colorado Division of Housing 
  Attention: Mobile Home Park Sales 
  1313 Sherman St #320 
  Denver, CO 80203 
   

Update Contact Information

Mobile home park landlords are required to update the park’s ownership and contact information for registration with the division within 30 calendar days of the sale. See section 38-12-1106(5), C.R.S., and 8 CCR 1302-15 Rule 2.6.

Sellers should review whether they need to file an affidavit or an exempt transfer form and contact staff about updating contact information as soon as possible.

Buyers should contact staff about transferring park registration accounts at MHPOP@state.co.us or 1-833-924-1147. Then, if the park:

• Isn’t due for registration renewal, buyers can fill in and submit the Contact Information Update Form in English or Spanish
• Is due for registration renewal and the previous owners didn’t already submit paperwork, buyers can update their information while registering the park