Community demands justice as predatory landlords ignore state law and illegally threaten eviction

Aztec, N.M. – Yesterday, six longtime residents of San Juan Mobile Home Park, an 85-lot manufactured home community in Aztec, filed a lawsuit in state district court alleging that the park’s corporate owners have imposed illegal rules, charged unlawful fees, and pursued baseless evictions in violation of New Mexico law—placing families at risk of losing their homes.

San Juan Mobile Home Park was purchased in April 2025 by Aztec MHC LLC, controlled by Capital Communities PM LLC, a Tennessee-based company that operates manufactured home parks across the country. Residents — who own their homes but rent space in the park — report that almost immediately after the sale, management began implementing unlawful changes that destabilized the community, where many families have lived for a decade or longer.

The plaintiffs — Kelly Garcia, Alicia Otto, Tami Anthony, Randy Blakley, Neil Lobato, and Jesus Benavidez — are represented by the New Mexico Center on Law and Poverty, DNA People’s Legal Services, and Treinen Law Office.

“Manufactured home communities are the backbone of affordable housing in our state,” said Riley Masse, Economic Equity Attorney at the New Mexico Center on Law and Poverty. “These residents are long-time homeowners who contribute to the strength and character of Northern New Mexico. This corporation is trying to exploit them with illegal rent increases and misinformation that preys on fear. But New Mexico law protects these families and says out-of-state park owners can’t bully residents out of their homes.”

According to the lawsuit, Capital Communities PM LLC and Aztec MHC LLC:

• Tried to impose a 73% rent increase – from $260 to $450 – within weeks of taking over the park;
• Implemented new, restrictive rules without giving the legally required 60-day notice or opportunity for resident review, including requirements for costly home repairs and upgrades on older units;
• Required residents to obtain homeowner’s insurance, which is often expensive or unavailable for aging manufactured homes;
• Attempted to force several residents to remove pets, in violation of the Mobile Home Park Act;
• Issued rule-violation notices and fees that did not meet legal requirements;
• Provided residents with new leases containing unlawful provisions; and
• Filed multiple eviction cases beginning in June 2025 and on an on-going basis, largely based on improper notices that many residents never received.

Residents say the impact was immediate. Illegal rule changes, unclear rule-violation notices, and sudden fees created significant financial pressure and placed residents at risk of eviction despite long histories of on-time payment and community involvement.

“Everyone deserves housing that is safe, stable, and free from exploitation,” said Daniela Dwyer, Litigation Director at DNA People’s Legal Services. “Access to decent and affordable housing is a crisis in New Mexico, including across San Juan County. We look forward to helping ensure the rights and dignity of residents at the San Juan Mobile Home Park are respected.”

Some community members panicked and moved out, fearing eviction due to unaffordable rent increases. Others tried to relocate their manufactured homes — a process so costly and risky that some were forced to abandon their only asset or had their homes damaged during the move.

One plaintiff, Kelly Garcia, has lived in the park for nine years while raising her daughter and caring for her young grandson with disabilities. The park filed an eviction case against her this summer without ever serving her with a notice — a case now on appeal.

Another plaintiff, Randy Blakley, was forced out of his home on October 7 after an eviction judgment based on improperly served notices — also under appeal.

Advocates say these actions are part of a growing national trend: out-of-state corporations rapidly acquiring manufactured home parks and immediately violating state law to increase profits through excessive rent hikes, misinformation, and aggressive retaliation. Last week, U.S. Senator Maggie Hassan launched an investigation into investment firms buying manufactured home parks. 

“New Mexico has strong protections for owners of manufactured homes because we believe in community, stability, and fairness. But we’re watching a national corporate playbook sweep into our state — one that puts thousands of families at risk,” added Masse. “Out-of-state investors cannot come here, disregard our laws, and destabilize homeowners who have lived in these communities for generations. This lawsuit is about stopping those predatory practices and making it clear that New Mexico will enforce its laws.”

“This is our home. We’ve raised families here. We take care of this place,” said Neil Lobato, a homeowner and plaintiff in the case. “We can’t just pack up and move. When the new corporate owners came in, they treated us like we were a problem instead of people. We’re standing up because what they’re doing is wrong, and no one else should have to go through this. We’re demanding what every New Mexican deserves: fair treatment, lawful rent, and the right to stay in our homes without harassment.”

“This is exactly why the Land of Enchantment Manufactured Homeowners’ Alliance (LEMHOA) came together,” said Joanne DeMichele, Director of LEMHOA. “What is happening in Aztec and across the country shows why there must be real accountability for investors who buy the land under people’s homes. The cost of moving a physical home is prohibitively high, making these homeowners effectively captive to the new landowners, who can then raise rents and fees and displace people. When communities become commodities, families who worked for years to become homeowners are now at risk of losing everything as multi-state corporate investors extract the little wealth these homeowners have. No one should face a pipeline from homeownership to homelessness while investors post record profits. People shouldn’t be treated this way. New Mexico law is clear, and San Juan shows why enforcement and action are urgently needed.”

The plaintiffs are asking the court to:

• Order the defendants to comply with the New Mexico Mobile Home Park Act and Unfair Practices Act including making necessary repairs and stop enforcing unlawful rules, fees, and notices;
• Compensate residents for financial harm caused by illegal fees, improper notices, and unlawful evictions; and
• Issue declaratory relief stating that the park’s current practices violate state law.

New Mexico’s Mobile Home Park Act (MHPA) provides critical protections to residents who own their homes but rent their lots. The law requires strict compliance with notice procedures when creating park rules or issuing pre-eviction notices, prohibits sudden rule changes without resident review, limits what types of fees can be imposed, and bars evictions without specific “good cause.” The Act was created in recognition of the unique vulnerability of manufactured homeowners whose homes cannot be easily relocated.The full filing can be downloaded here: https://www.nmpovertylaw.org/wp-content/uploads/2025/12/Complaint-SJMHP-2025-12-12-Endorsed.pdf