On March 11, 2025, the New Mexico House of Representatives introduced House Bill 426, a legislative proposal aimed at enhancing the rights of residents in mobile home parks. The bill seeks to establish a framework that allows residents to have a first opportunity to purchase their mobile home park when it is put up for sale, thereby addressing concerns over displacement and community stability.

Key provisions of House Bill 426 include a requirement for park owners to notify residents of any sale offers made by third parties. If residents receive an offer that is substantially equivalent to a bona fide third-party offer, they may record an affidavit with the county clerk to certify their interest in purchasing the park. This provision is designed to empower residents and ensure they are not overlooked in the sale process.

The bill also stipulates that if an owner sells a mobile home park without complying with these provisions, they could face significant financial liability. Specifically, the owner would owe residents either $100,000 or 20% of the appraised value of the park, whichever is greater. This liability would be secured as a lien on the property, taking precedence over any third-party buyer's interest. Residents would have the authority to select a licensed real estate appraiser to determine the park's value, with the owner responsible for covering the appraisal costs.

Debate surrounding House Bill 426 has highlighted concerns from both sides. Proponents argue that the bill is a necessary step to protect vulnerable residents from sudden displacement and to promote community ownership. Critics, however, have raised concerns about the potential financial burden on park owners and the implications for the real estate market.

The economic implications of this bill could be significant, as it may influence the dynamics of mobile home park ownership and sales in New Mexico. By prioritizing resident interests, the bill aims to foster a more equitable housing environment, though it may also lead to increased tensions between owners and residents.

As the legislative process unfolds, stakeholders are closely monitoring the bill's progress, with potential amendments and further debates expected in the coming weeks. The outcome of House Bill 426 could set a precedent for similar legislation in other states, reflecting a growing trend toward enhancing tenant rights in the housing market.