Some housing types and communities face unique challenges in meeting Proposition 123 compliance requirements. To account for these differences, the statute provides eligibility adjustments, compliance alternatives, and additional documentation requirements for specific cases.
Mobile Home Parks and Manufactured Homes in Park
Group Living and Special Needs Housing
Tribal Government Considerations
Rural Resort Communities
Rural resort communities that receive approval for adjusted Area Median Income (AMI) limits under C.R.S. § 29-32-105.5 must ensure that all counted projects comply with the approved AMI adjustment at the time they are counted.
For guidance on the petition process, including required documentation and eligibility criteria, visit the Colorado Division of Housing’s Rural Resort Income Limit Petition Process.
Mobile Home Parks and Manufactured Homes in Parks
Mobile home parks provide an essential source of affordable housing but are particularly vulnerable to displacement when land values rise. A manufactured home in a mobile home park may qualify under Proposition 123 in one of three ways:
- As Naturally Occurring Affordable Housing (NOAH), if the home remains naturally affordable without formal affordability restrictions.
- Through a park-wide affordability mechanism, if the entire park or a subset of units is subject to affordability protections.
- As an individually restricted affordable unit, if one or more homes within the park are subject to an affordability mechanism.
For units that do not qualify as NOAH, eligibility requires an affordability mechanism, such as a deed restriction, Land Use Restriction Agreement (LURA), or other legally binding affordability agreement. Additional affordability protections may include:
- Resident-Owned Cooperatives (ROCs), where tenants collectively own the park.
- Jurisdictional Acquisition, in which a local government or housing authority purchases the park and maintains affordability.
- Community Land Trusts (CLTs) or Non-Profit Purchases that ensure permanent affordability.
While Proposition 123 statute does not specifically reference mobile home parks, they must meet the same affordability and compliance standards outlined in C.R.S. § 29-32-105(1)(d).
Manufactured Housing in Rental Communities
Manufactured homes in mobile home parks can count toward a jurisdiction’s affordable housing commitment if they meet the following affordability standards.
- The total rent must remain affordable for households earning 60% AMI or below.
- If a resident owns the home but rents the lot, the lot rent is excluded.
- Units must have an affordability mechanism, such as a resident-owned cooperative model, housing authority purchase, or local affordability agreement.
Manufactured Housing in Ownership Communities
Manufactured homes may also count toward affordable ownership housing if they meet the following conditions:
- Homeownership costs remain affordable at 100% AMI or below.
- The home is restricted as affordable through a cooperative ownership model, jurisdictional affordability program, or CLT acquisition.
Group Living and Special Needs Housing
Certain affordable housing projects operate as group living arrangements, serving a variety of populations, including seniors, individuals with disabilities, formerly homeless individuals, and low-income workers in shared housing models. Proposition 123 allows these units to be counted toward a jurisdiction’s commitment, provided they meet affordability and lease requirements.
Eligibility for Group Living and Special Needs Housing
To qualify as affordable housing under Proposition 123, a group living facility must meet the U.S. Census Bureau’s definition of a housing unit, which requires that occupants live separately from others in the building and have direct access to their unit from the outside or through a common hall.
Additionally, qualifying group living facilities must:
- Operate as a permanent residence, excluding rentals that are considered short-term or leased for less than 30 days at a time.
- Ensure each household has a formal lease agreement or documented occupancy arrangement.
- Provide private sleeping quarters and direct access to kitchen and bathroom facilities, either within the unit or in a shared arrangement that allows for independent living, as defined by the U.S. Census Bureau’s housing unit criteria.
Tribal Government Considerations
Recognizing tribal sovereignty and the unique governance structures of tribal nations, Proposition 123 provides flexibility to ensure that tribal housing projects align with tribal governance, land use processes, and affordability requirements.
Key Considerations for Tribal Housing
Tribal governments may use tribal resolutions or council approvals in place of municipal permits, zoning approvals, or affordability agreements.
Housing developed or managed by a Tribal Housing Authority (THA) or tribally designated housing entity (TDHE) can count toward Proposition 123 compliance, provided it meets affordability criteria.
Housing on tribal trust land is subject to tribal governance and land use policies, and compliance should align with tribal legal frameworks rather than state or local regulations.