10-18-2024 10:32pm

Alamogordo Mobile Home Park Operator Signs AG Assurance of Discontinuance (Settlement Agreement)

Chris Edwards Editor

AlamogordoTownNews.org reports that Alamogordo Mobile Home Park Operator Signed an AG Assurance of Discontinuance (Settlement Agreement) over citizen concerns around the operations of two mobile home parks in Alamogordo.

Via a series of articles was accusations against the California property owner, Brad Dunn of failing to provide adequate care and upkeep of infrastructure to include functional gas and water lines and other basic needs.

Desert Palms and Amber Skies Mobile Home Parks in Alamogordo, has been the topic of review by authorities to include the City of Alamogordo and the New Mexico Attorney General's Office.

Per the two agreements as released by the attorney general's office is a plea style agreement that found the owner in violation of the New Mexico Unfair Practices Act regarding failure to properly maintain water services to residents, on a timely basis, and other issues mentioned.

As a part of the two agreements to avoid prosecution, Mr. Dunns Limited Liability Corporations agreed to comply with the document terms to fix alleged issues or else face prosecution against him by the AG's office. If Dunn's LLC's fails to live up to the agreement at any point in time the AG can take legal action against him.

Copies of each agreement are linked below...

Desert Palms Mobile Home Park NM Attorney General Settlement Agreement

Amber Skies Mobile Home Park. NM Attorney General Settlement Agreement

As a part of the agreement with Desert Palms residents as outined by the AG...

Pursuant to NMSA 1978, Section 8-5-2(J) and Sections 57-12-9 and -15, this Assurance of Discontinuance (“AOD”), is entered into by and between the State of New Mexico ex. rel. Raul Torrez, Attorney General, Department of Justice ("NMDOJ”), and Respondent DESERT PALMS ESTATE LLC including any and all associated entities or affiliates, trade names, trademarks, or business names by which they may be known, and all of their agents, employees, affiliates, and successors (collectively, “Respondent” or “DESERT PALMS”).

Remediation: a win for the residents...

"Remediation — As an accommodation for the loss of natural gas utility service, DESERT PALMS shall continue to provide residents with a one-third monthly rent abatement during the time that natural gas distribution lines are being repaired.
L. DESERT PALMS has provided a schedule of estimated dates by which DESERT PALMS will repair or replace its natural gas infrastructure. However, given the nature, scale. and complexity of the work involved, reasonable, unforeseen circumstances could require DESERT PALMS to revise its estimated dates of completion based on contractor estimates. In that event, DESERT PALMS shall inform its residents and the NMDOJ of the delay and provide assurances to NMDO)J that the problem is being remedied. This agreement contemplates that there could be reasonable delays not caused by or which are beyond the control of DESERT PALMS, including but not limited to delays due to contractor’s revised estimated dates of completion, labor shortages, weather, parts availability, transportation, or cther reasonable causes of delay. NMDOJ will not seek an injunction to which it thinks it is entitled under New Mexico law so long as DESERT PALMS fully complies with this AOD.
3. Complaints against DESERT PALMS are being received frequently by NMDOJ."

... Civil Penalties
DESERT PALMS agrees to make every reasonable effort to have the repairs to its natural gas infrastructure completed by the estimated date of completion, December 31, 2024. However, this agreement contemplates reasonable extensions of this estimated date of completion. This agreement contemplates that there could be reasonable delays not caused by or which are beyond the control of DESERT PALMS, including but not limited to delays due to contractor’s revised estimated dates of completion, labor shortages, weather, parts availability, transportation, or other reasonable causes of delay.

The “Civil Penalties” section of the agreement does not apply unless and until DESERT PALMS fails to abide by the terms in this AOD, including all reasonable extensions to the estimated date of completion. If DESERT PALMS fails to repair or replace its natural gas infrastructure pursuant to the terms of this AOD, and after all reasonable time extensions. given the time sensitive nature of the project and the coming winter, and efforts to repair or remediate, including repairs that extend beyond the original estimated dates of completion, and thus fails to provide natural gas utilities to its residents, then NMDOJ shall in its discretion dissolve this agreement in its entirety and proceed to commence litigation against DESERT PALMs.

Specific to the Amber Skies agreement...

Pursuant to NMSA 1978, Section 8-5-2(J) and Sections 57-12-9 and -15, this Assurance of Discontinuance (“AOD”), is entered into by and between the State of New Mexico ex. rel. Raul Torrez, Attorney General, Department of Justice (‘NMDOJ”), and Respondent AMBER SKIES COMMUNITY LLC including any and all associated entities or affiliates, trade names, trademarks, or business names by which they may be known, and all of their agents, employees, affiliates, and successors (collectively, “Respondent” or “AMBER SKIES”).

Remediation: a win for the residents of Amber Skies...

Background
. NMDOJ has received numerous complaints from consumers in New Mexico regarding AMBER SKIES’ business practices in which AMBER SKIES violated the New Mexico Uniform Owner-Resident Relations Act (*UORRA”) and created a nuisance by failing to provide consistent running water to its residents.

AMBER SKIES leases mobile home spaces to New Mexican consumers. Consumers complain that AMBER SKIES has failed to provide its community with consistent running water necessary for residents to safely enjoy their property.

In July of 2024, AMBER SKIES and the NMDOJ engaged in discussions regarding the various consumer complaints filed with the NUYDOJ. NMDOJ did not share or provide AMBER SKIES with copies of the specific complaints it received but rather communicated directly with AMBER SKIES management. AMBER SKIES clarified some allegations raised in the consumer complaints and provided information about the problems with the community’s water tapping saddles for the water infrastructure.

Beginning on August 9, 2024, AMBER SKIES sent a plumber to the property to begin addressing the faulty tapping saddles for the water infrastructure. Water is generally distributed from a main line, to an individual resident through a faulty tapping saddle)

AMBER SKIES has engaged a contractor to replace approximately 149 water service tapping saddles. From time to time, connecting city lines create over-pressure, causing the tapping saddles to malfunction. Not all tapping saddles have failed, and not all tapping saddles are being replaced at the
same time.

5. Many tapping saddles have already been replaced over the last ten years. By the time this work is done, most, if not all, of the tapping saddles will have been replaced.

Unless a particular resident’s tapping saddle is in the process of being replaced, the resident otherwise has water. Tapping saddle replacement for a particular home may cause water to be off in that home for up to one (1) day.

IL ATTORNEY GENERAL’S ALLEGATIONS
NMDO} asserts that if this matter were tried to conclusion, it could obtain a judgment
against Respondent affirming lability under the following statutes:
a. New Mexico Uniform Owner-

Resident Relations Act, NMSA 1978, §§ 47-8-1 to -51

AMBER SKIES leases mobile home spaces in their community and provide lessees with water through a privately-owned community water system. As a result, AMBER SKIES is an “owner” within the meaning of UORRA.
AMBER SKIES has an obligation under UORRA to comply with applicable housing codes “materially affecting the health and safety,” to supply running water and to maintain the AMBER SKIES Community and the water utility in good and safe working order.

By intermittently failing to provide running water to its residents AMBER SKIES has matenally and adversely affected the health and safety of its residents in violation of NMSA 1978, Section 47-80-20.

PROHIBITED PRACTICES
IV.
a. Prohibited Practices - The Parties to this AOD agree that the following conduct by
b
Remediation
|. If AMBER SKIES is unable to create and provide a schedule of estimated dates
Page 6 of 13
lil.

AMBER SKIES shall provide the NMDOJ and its residents with a schedule detailing estimated dates of completion for the repair or replacement of failing water distribution infrastructure.

AMBER SKIES shall contact NMDOJ in the event that AMBER SKIES fails to repair or replace failing water distribution infrastructure by the provided estimated dates of completion. AMBER SKIES shall provide its residents and the NMDOJ with an explanation for the failure in addition to an updated estimated date of completion.
In any case where the resident is a manufactured home owner, AMBER SKIES will not be held responsible for delays in water distribution infrastructure service caused by issues on the homeowner side of the water .

Remediation
|. If AMBER SKIES is unable to create and provide a schedule of estimated dates
Page 6 of 13
lil.

AMBER SKIES shall provide the NMDOJ and its residents with a schedule detailing estimated dates of completion for the repair or replacement of failing water distribution infrastructure.

AMBER SKIES shall contact NMDOJ in the event that AMBER SKIES fails to repair or replace failing water distribution infrastructure by the provided estimated dates of completion. AMBER SKIES shall provide its residents and the NMDOJ with an explanation for the failure in addition to
an updated estimated date of completion.
In any case where the resident is a manufactured home owner, AMBER SKIES will not be held responsible for delays in water distribution infrastructure service caused by issues on the homeowner side of the water line.

by which AMBER SKIES will repair or replace the faulty tapping saddles in the water infrastructure by the date of execution of this AOD, AMBER SKIES shall inform its residents and the NMDOJ of the delay and provide assurances to NMDOJ that the problem is being remedied. However, given the nature, scale, and complexity of the work involved, reasonable, unforeseen circumstances could require AMBER SKIES to revise its estimated dates of completion based on contractor estimates. In that event, AMBER SKIES shall inform its residents and the NMDOJ of the delay and provide assurances to NMDOJ that the problem is being remedied.

2. This agreement contemplates that there could be reasonable delays not caused by or which are beyond the control of AMBER SKIES, including but not limited to delays due to contractor’s revised estimated dates of completion, labor shortages, weather, parts availability, transportation, or other reasonable causes of delay.

3. NMDOJ will not seek an injunction to which it thinks it is entitled under New Mexico law so long as AMBER SKIES fully complies with this AOD.

4. According to the NMDOJ, complaints against AMBER SKIES are being received on a weekly basis. NMDOJ shall notify AMBER SKIES of any new complaints received after the execution of this AOD and shall do so within five (5) business days of the complaint being received by NMDOJ. Notice shall be provided to AMBER SKIES as set forth in Section VI. (p) below.

AMBER SKIES agrees to make every reasonable effort to have the repairs to its
water distribution infrastructure completed by the estimated date of completion...

RELEASE
By its execution of this AOD, and so long as AMBER SKIES abides by the terms of this AOD, to include reasonable extensions of the estimated date of completion, NMDOJ releases and discharges AMBER SKIES from any and all civil claims, causes of action, damages, restitution, disgorgement, fines, costs, remedies, and/or penalties NMDOJ has asserted or could have asserted against AMBER SKIES resulting from AMBER SKIES’ conduct as alleged herein up to and including the date of execution of this AOD.
b. Notwithstanding any term of this AOD, specifically reserved and excluded from the
Page 8 of 13

VI.
GENERAL TERMS
a. AMBER SKIES acknowledges they have made factual representations during the course.

of NMDO$’s investigation which were relied upon by NMDOJ in resolving its claims against’ AMBER SKIES. AMBER SKIES affirms all such representations are true, complete, and accurate to the best of their knowledge. If any such representation is later discovered to be untrue, NMDOJ explicitly reserves the right to dissolve this AOD in its entirety and commence litigation against AMBER SKIES.
Page 9 of 13

Twelle lease in Section IV(a) as to any entity or person, including AMBER SKIES, are any and all of the following:
1. Any criminal liability that any person and/or entity, including AMBER SKIES, has or may have to the State of New Mexico:
2. Any civil or administrative liability that any person and/or entity, including AMBER SKIES, has or may have to the State of New Mexico not expressly covered by the release in Section IV(a) above, including, but not limited to, any and all of the following:
.
State or federal antitrust violations:
| Federal trade practice violations, including violations of the Federal Trade
Commission’s rules and regulations: | Claims involving reporting practices; Medicaid claims, including, but not limited to, federal Medicaid drug rebate statute violations, Medicaid fraud or abuse, and/or kickback violations related to any state Medicaid program; and
State false claims violation in Section IV(a) as to any entity or person, including AMBER SKIES, are any and all of the following:

1. Any criminal liability that any person and/or entity, including AMBER SKIES, has or may have to the State of New Mexico:
2. Any civil or administrative liability that any person and/or entity, including AMBER SKIES, has or may have to the State of New Mexico not expressly covered by the release in Section IV(a) above, including, but not limited to, any and all of the following:

State or federal antitrust violations:
| Federal trade practice violations, including violations of the Federal Trade Commission’s rules and regulations: | Claims involving reporting practices; Medicaid claims, including, but not limited to, federal Medicaid drug rebate statute violations, Medicaid fraud or abuse, and/or kickback violations related to any state Medicaid program; and State false claims violation.

The NMDOJ used the New Mexico Unfair Practices Act as the tool to provide justice with the threat potential litigation paired with Unfair, deceptive, and misleading business practices which are prohibited under the Unfair Trade Practices Act.

We have reached to the office of Mr. Dunn for final comment. Please join us in learning more as this story unfolds.