Glenwood Springs City Council voted Thursday to move forward with a $1.5 million contribution from the city’s 2C workforce housing fund to help residents of Mountain Mobile Home Park form a cooperative and buy the land beneath their homes.

The 40-unit park, located along U.S. Highway 6 adjacent to Bighorn Toyota, was recently listed for $4.5 million. More than half of its residents earn less than 20% of the area median income, according to city Housing Development Manager Kevin Reyes.

If purchased by a private investor, Reyes warned, the park could face significant rent hikes or redevelopment. Currently, there are no zoning protections or deed restrictions in place to prevent either scenario.

“To avoid that outcome, the residents formed a cooperative and are working with a nonprofit from the Front Range called Thistle,” Reyes said during the meeting. “Their goal is to convert the park into what’s known as a resident-owned community.”

Under that model — often referred to as a ROC — residents continue to own their individual mobile homes but gain collective ownership of the land through a cooperative structure. They vote on park decisions, elect a board, and work with third-party property management and training support to ensure stable, long-term operations.

A race against the clock

The $1.5 million in city funding would help close a financial gap in the acquisition and help ensure affordability over time. The purchase must be finalized by Aug. 5 under Colorado’s “opportunity to purchase” law, which grants mobile home park residents 120 days to match any third-party offer when their park is listed for sale.

According to Elizabeth Cheney, a portfolio impact manager with Thistle, 38 of the 40 households in the park have already opted into the cooperative, now formally called Glen Valley Cooperative. That exceeds Thistle’s 80% participation threshold for supporting ROC conversions.

“This is a big lift,” Cheney told the council. “It’s a completely volunteer-run effort. I’ve met with the Glen Valley board every week for the past 15 weeks. They’re stepping up because they care about preserving their community.”

Cheney and colleague Tim Townsend explained that Thistle operates as a certified technical assistance provider under the ROC USA network — the only nonprofit organization in the country that offers dedicated financing and support for resident-owned mobile home communities.

Thistle and ROC USA Capital provide template bylaws, financial modeling, and low-interest lending options. The city’s proposed contribution would function as a forgivable loan, helping reduce monthly lot rents for residents by offsetting higher-interest debt.

Protecting affordability

Council members expressed broad support for the concept but spent more than two hours scrutinizing the deal’s structure, financial risks, and long-term sustainability.

“I think it’s a great idea,” Councilor David Townsley said. “But we need to be careful. We’re using public money, and we need to make sure we know exactly what the return is — and that it’s protected.”

Councilor Ray Schmahl, who ultimately voted against the motion, said he struggled with the potential for future problems and a lack of guarantees.

“It’s difficult,” Schmahl said. “We’re trying to say we’re going to keep the world the way it is now in 30 years with this mechanism. But we don’t know what will happen. We’re trusting that it works.”

Thistle representatives acknowledged that not all ROC conversions have been successful. Two communities in Cañon City went into default after a breakdown in resident engagement and financial accountability. In response, Thistle raised its engagement threshold from 51% to 80% to ensure long-term viability.

Townsend emphasized that Glen Valley has already exceeded that mark.

“From the beginning, the residents here have taken ownership of the process,” he said. “And we continue to train and support them not just through closing, but for years afterward.”

City protections and conditions

City staff, including Reyes and Community and Economic Development Director Hannah Klausman, told council that the city’s contribution would be structured with legal safeguards. City Attorney Karl Hanlon said staff could draft a deed restriction or similar mechanism requiring the park to remain both resident-owned and owner-occupied in perpetuity — conditions that would extend beyond the 30-year life of the loan.

“If they dissolve the cooperative or sell to an outside investor, the loan becomes due,” Hanlon said. “This isn’t just a donation. It’s a forgivable loan tied to clear, enforceable conditions.”

Council also discussed the possibility of including a workforce housing preference in the final agreement. While 22 of the 40 current households already include Glenwood Springs workers, councilors emphasized the importance of aligning the investment with the original intent of the 2C ballot measure, which funds projects meant to support the city’s workforce housing goals.

“If this is workforce housing funding, we need to make sure the housing is, in fact, for our workforce,” Councilor Erin Zalinski said.

Hanlon and Reyes said the city could include language in the loan terms that would prioritize future buyers who live or work in Glenwood Springs, as well as annual reporting and compliance checks similar to those required of other 2C-funded projects like Canyon Vista (formerly Glenwood Gardens) and the L3 development.

Financial details

The $1.5 million city contribution will be split into two installments. The first, up to $750,000, would be disbursed at or near closing. The second would be available no earlier than September, when additional 2C revenue is expected to become available. Thistle confirmed that the cooperative would take out a short-term bridge loan to cover the full closing cost, repaid once the city’s second tranche is issued.

The project’s financial pro forma, included in council packets, estimates an average lot rent increase of $135 per month for residents with the full city contribution factored in — compared to much steeper increases under market-rate ownership.

The city’s per-unit investment of roughly $37,500 compares favorably to other 2C projects. According to Klausman, subsidies for similar units at Canyon Vista and the L3 apartments near Glenwood Meadows have reached up to $150,000 per household.

“This is a screaming deal in today’s market,” Councilor Sumner Schachter said. “We’re getting long-term affordability, ownership, and stability — and it’s being led by the residents themselves.”

Next steps

The motion to proceed with the $1.5 million contribution passed 6-1, with Schmahl voting no. Schachter made the motion, which included provisions for staff to draft and return with final documents for council approval.

Resident Sam Sullivan, president of Glen Valley Cooperative, thanked the council for its support.

“When we found out our park was for sale, it was stressful and scary,” Sullivan said. “These funds will help keep our community together and keep people in their homes. We love it here, and we’re grateful for the opportunity.”

Final legal agreements are expected to come back before council in June or early July, ahead of the scheduled closing date on Aug. 5.