Commerce City council asks staff to study loan options to help manufactured‑home residents buy their park

Commerce City—ouncil on May 11 directed staff to produce an analysis of potential city help for residents of an at‑risk manufactured‑home community seeking to buy their park, a step proponents said could preserve affordable housing and critics warned could set a difficult fiscal precedent.

The motion, offered by Mayor Pro Tem Susan Noble and seconded by Mayor Douglas, asked staff to examine financing options and return with findings by the first council meeting in June. Noble framed the request as a targeted analysis: "The motion is for staff to provide analysis of the city providing to assist advanced manufactured home community in Commerce City in purchasing the property for resident ownership," she said.

Council debate focused on scope, structure and precedent. Council member Sandoval objected to using taxpayer dollars to benefit a narrow group, saying the request as described would use "public funds to benefit the interest of only certain 72 homeowners," and said she could not support $3.7 million in a 0 percent interest loan. Council member Trujillo and others urged development of a broader program for future cases and flagged legal and financial risks from acting without an eligibility framework.

City Manager Rogers told the council staff would conduct due diligence and explore alternatives, including assigning private activity bond (PAB) allocation to a qualifying project or working with the housing authority or a community land trust. "If willing to work with us in that partnership, that would be able to advance some of their goals," Rogers said, adding that PAB assignment would require a council resolution and confirmation of eligibility under state criteria.

City Attorney Zarzecchi told council the narrow legal question of whether the city may expend funds for affordable housing is affirmative under Colorado law but cautioned that separate legal analyses would be required for options such as an interest‑free loan or a donation.

Council voted to close debate on a procedural motion (call the question) by a 6‑to‑3 margin and subsequently approved directing staff to prepare the requested analysis. The motion does not commit the city to provide funds; it asks staff to return with analysis and recommendations, including funding options and any legal or policy considerations.

Next steps: staff will explore whether PABs or other state and nonprofit partners can be used, assess eligibility and underwriting implications, and present findings and recommended options at the first meeting in June. The council also discussed the possibility of qualifying the request more broadly if a durable city program is recommended.