Ellen Huang, a former film executive, directs the Queer Lounge, hosting events and filmmakers networking during the festival. Gay and straight celebrities including Nick Nolte, Toni Collette and Anne Heche hung out and attended parties there; for the first time in its three-year history, the lounge is an official Sundance partner.
Huang says at least 40 films with gay themes screened in Park City this year; some are overt ("Small Town Gay Bar" is about finding a gay-friendly oasis in Mississippi), while others include prominent, but not primary, gay characters ("Little Miss Sunshine"). Roles are broadening; gay characters are regular people with dilemmas everyone, gay or straight, can relate to.
"Quincea era" focuses on a pregnant Latina teen who is rejected by her family and goes to live with relatives, including a gay cousin. The hard-living, tattooed Carlos isn't exactly a stereotypical gay man, Huang said.
In "Puccini for Beginners," the protagonist finds herself in a love triangle - with a man and a woman. "Desire is mysterious. I'm just happy when people kiss; I don't really care who's kissing who," said director Maria Maggenti.
Things weren't always so good for gay film at the festival.
During a panel at the lounge, director Gus Van Sant recalled submitting his first film, "Mala Noche," to Sundance. The 1985 movie screened as a special selection at this year's festival.
"It's ironic because it was rejected [when it was first submitted] because it had a gay theme and they'd already accepted a lesbian film," Huang said.
Now, the festival looks at the quality of the film without regard to the characters' sexual orientation, said Levi Elder, a Sundance spokesman. "Film is a powerful medium that way, showing people things they're unaware of. It makes it real and nonthreatening."
But Sundance is its own world, and movies by gay filmmakers and with openly gay actors are still not accepted in mainstream Hollywood, said Huang.
"Brokeback Mountain" gives filmmakers hope that more movies with gay characters will get the green light for production. "I think it's a milestone - something that's not that low-budget, with acclaimed actors and director," Elder said. "I think people are less scared. They're more willing to take those chances. It's not separate but equal anymore. It's totally integrated. I just don't think those boundaries are there anymore."
Huang isn't quite so optimistic. "I think Hollywood is really fickle, and they think this is hot right now. If they buy a film that has a gay character or theme and it tanks, they'll blame the gay aspect," she said. "But I think it means films that are maybe under $15 million, that are art house films, may take more chances with gay characters."
Huang says "Brokeback Mountain" was "carefully crafted" to be appealing to a wide audience. For one thing, most people involved in it, including the actors and director, are heterosexual. Huang says it's still not acceptable to be an openly gay leading actor in mainstream film. She has heard agents tell their clients not to go to gay bars or otherwise indicate their true leanings.
Gay filmmakers aren't going to get a lot of support from studios, which means they struggle to make quality movies. "Hollywood is a strange, strange beast. On the one hand, it has perpetuated bad stereotypes - and now is breaking them. But behind the scenes, there's a lot of homophobia," Huang said.
There's also a reluctance on the part of gay filmmakers to make films for general audiences, she said. "We really want these filmmakers to have a broader voice. . . . Gay filmmakers need to get out of the shelter of their community."

