One of the hottest markets for modular construction in the United States is Colorado. On of the states with the most new modular construction factories being built is Colorado. And you guessed it, Colorado is also a state that won’t let modular homes into some communities.
![]() |
| Notice the full foundation |
An article in Canon City Daily Record explains how The Gold Canon Subdivision Property Owner Association filed a complaint May 20 against Colorado Springs-based Westover Homes (Westover Homes is part of Challenger Homes) alleging Westover Homes had delivered portions of two residential housing structures, violating established and recorded covenants.
The covenant reads in part, “All construction shall be new. No building previously used or constructed at another location nor any building or structure originally constructed as a mobile dwelling or structure may be moved onto a lot or building site …”
A cease and desist notice was delivered to the defendant, notifying him of the “breach of covenants and anticipated harm to the plaintiffs,” but according to the complaint, the defendant “continued its breach by having a crane lift and move the housing units onto a pre-poured foundation.”
Let’s jump back a couple of weeks when HUD Secretary Ben Carson began his campaign to bring affordable housing into all neighborhoods. HUD homes would ease the need for housing if they were allowed into subdivisions like Gold Canon in Colorado. But that’s not what is happening here.
Related Article: Is HUD’s Ben Carson About to Change New Home Construction in the US?
This is an IRC modular home being built in a community with a tight set of rules against manufactured homes implying an IRC modular home is the same as a HUD code home. Using those same community covenants, a panelized new home builder might have the same problem.
Related Article: Ben Carson Touts Modular Homes in Keynote Address at Western Governors Association
Ben Carson has spoken about this type of discrimination lately and I believe he may soon use the Fair Housing Act’s Anti-Discrimination sections to include types of houses which would discriminate against homeowners that can’t find lots to build an affordable home in certain regions.
I don’t expect this lawsuit to make national headlines but if there are enough other discrimination cases filed against a type of homes (modular, manufactured) with certain groups of people excluded from communities with similar restrictive covenants I think Ben Carson’s Agency will begin to take notice and see if the Fair Housing Act has the teeth needed to begin letting not only modular housing into closed communities but also HUD manufactured homes.
I’m not Chicken Little selling umbrellas but if might not be a bad idea to check which way the wind is blowing in DC these days.
CLICK HERE to read the entire Canon City Daily Record article










