HB3526 - 104th General Assembly
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| 1 | AMENDMENT TO HOUSE BILL 3526 | ||||||
| 2 | AMENDMENT NO. ______. Amend House Bill 3526, AS AMENDED, | ||||||
| 3 | by replacing everything after the enacting clause with the | ||||||
| 4 | following: | ||||||
| 5 | "Section 1. References to Act. This Act may be referred to | ||||||
| 6 | as the Mobile Home Tenant Protection Act. | ||||||
| 7 | Section 5. The Mobile Home Landlord and Tenant Rights Act | ||||||
| 8 | is amended by changing Section 9 as follows: | ||||||
| 9 | (765 ILCS 745/9) (from Ch. 80, par. 209) | ||||||
| 10 | Sec. 9. The Terms of Fees and Rents. The terms for payment | ||||||
| 11 | of rent shall be clearly set forth and all charges for | ||||||
| 12 | services, ground or lot rent, unit rent, or any other charges | ||||||
| 13 | shall be specifically itemized in the lease and in all | ||||||
| 14 | billings of the tenant by the park owner. | ||||||
| 15 | The owner shall not change the rental terms nor increase | ||||||
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| 1 | the cost of fees, except as provided herein. | ||||||
| 2 | The park owner shall not charge a transfer or selling fee | ||||||
| 3 | as a condition of sale of a mobile home that is going to remain | ||||||
| 4 | within the park unless a service is rendered. | ||||||
| 5 | Rents charged to a tenant by a park owner may be increased | ||||||
| 6 | upon the renewal of a lease. Notification of an increase shall | ||||||
| 7 | be delivered 90 days prior to expiration of the lease. Subject | ||||||
| 8 | to the provisions of paragraph (e) of Section 6 of this Act, a | ||||||
| 9 | park owner may not increase rent for a site or a lot more than | ||||||
| 10 | 3% per year or the consumer price index-u increase, whichever | ||||||
| 11 | is greater. As used in this Section, "consumer price index-u" | ||||||
| 12 | means the index published by the Bureau of Labor Statistics of | ||||||
| 13 | the United States Department of Labor that measures the | ||||||
| 14 | average change in prices of goods and services purchased by | ||||||
| 15 | all urban consumers, United States city average, all items, | ||||||
| 16 | 1982-84 = 100. | ||||||
| 17 | The provisions of this amendatory Act of the 104th General | ||||||
| 18 | Assembly do not apply to the following: (1) newly constructed | ||||||
| 19 | mobile home parks for a period of 15 years after the effective | ||||||
| 20 | date of this amendatory Act of the 104th General Assembly; and | ||||||
| 21 | (2) justified expenses limited to property tax increases, | ||||||
| 22 | major capital improvements necessary to meet the park owner's | ||||||
| 23 | warranty of habitability obligations, and utility cost | ||||||
| 24 | increases that individually or in combination cause annual | ||||||
| 25 | expenses to exceed annual revenues for the park. | ||||||
| 26 | If a park owner wishes to impose a rent increase more than | ||||||
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| 1 | the greater of 3% or the consumer price index-u increase, the | ||||||
| 2 | park owner must provide a written justification for the | ||||||
| 3 | increase that complies with this Section. The justification | ||||||
| 4 | must detail the increase in property taxes, the increase in | ||||||
| 5 | utilities, and any major capital improvement costs and certify | ||||||
| 6 | that the allowable rent increase would result in projected | ||||||
| 7 | expenses, excluding any profits, dividends, and fees paid to | ||||||
| 8 | associated entities, that exceed projected revenues. The | ||||||
| 9 | written justification must include the following: | ||||||
| 10 | "I certify that: | ||||||
| 11 | (1) the property tax increases, utility cost | ||||||
| 12 | increases, and major capital improvement costs are | ||||||
| 13 | accurate and based on written estimates or notifications | ||||||
| 14 | from government agencies or utility companies; | ||||||
| 15 | (2) these expenses plus a reasonable estimate of | ||||||
| 16 | regular expenses based on the park's previous year's | ||||||
| 17 | expenses, excluding any profits, dividends or fees paid to | ||||||
| 18 | related entities, have been calculated as projected | ||||||
| 19 | expenses; | ||||||
| 20 | (3) a reasonable estimate of revenue based on the | ||||||
| 21 | park's previous year's revenue plus the allowable rent | ||||||
| 22 | increase of the greater of 3% or the consumer price | ||||||
| 23 | index-u increase has been calculated as projected revenue; | ||||||
| 24 | (4) these projected expenses exceed the projected | ||||||
| 25 | revenue and the proposed rent increase beyond the greater | ||||||
| 26 | of 3% or the consumer price index-u increase is the | ||||||
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| 1 | minimum amount necessary to ensure projected revenue | ||||||
| 2 | equals projected expenses; | ||||||
| 3 | (5) at the end of the year in which a rent increase | ||||||
| 4 | greater than 3% or the consumer price index-u increase is | ||||||
| 5 | imposed, the park must reconcile actual expenses, minus | ||||||
| 6 | any profits, dividends or fees paid to related entities, | ||||||
| 7 | with actual revenue and return any excess revenue to | ||||||
| 8 | residents in a rebate and adjust rents to reflect what an | ||||||
| 9 | accurate projection requires; and | ||||||
| 10 | (6) clear, detailed, and dated records of all | ||||||
| 11 | calculations and supporting documentation must be | ||||||
| 12 | maintained by the park owner. This certification is made | ||||||
| 13 | under penalty of perjury." | ||||||
| 14 | The written justification must be signed by the park owner | ||||||
| 15 | or the managing agent of the entity that manages the mobile | ||||||
| 16 | home park. | ||||||
| 17 | If additional rent increases are justified by major | ||||||
| 18 | capital expenses that are financed in which financing payments | ||||||
| 19 | extend beyond the year in question, a park owner must include | ||||||
| 20 | in all leases the schedule of payments and the date and amount | ||||||
| 21 | that rents shall be reduced if the financing is paid off. That | ||||||
| 22 | amount must equal 12 months' payments divided by the number of | ||||||
| 23 | occupied home sites. If the park owner pays off the financing | ||||||
| 24 | early, the park owner must immediately reduce the rent by the | ||||||
| 25 | specified amount. | ||||||
| 26 | Within 90 days after the end of the year of a justified | ||||||
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| 1 | rent increase above the greater of 3% or the consumer price | ||||||
| 2 | index-u increase and the following year, the park owner must | ||||||
| 3 | reconcile actual expenses, excluding any profits, dividends, | ||||||
| 4 | or fees paid to related entities, with actual revenue and | ||||||
| 5 | return any excess revenue to residents in a rebate and adjust | ||||||
| 6 | rents to reflect what an accurate projection requires. The | ||||||
| 7 | park owner must provide a written justification of any rebate | ||||||
| 8 | and rent adjustment or lack thereof. The written justification | ||||||
| 9 | must include a copy of the justification of the rent increase | ||||||
| 10 | and the following language: | ||||||
| 11 | "I certify that after reconciling the actual expenses, | ||||||
| 12 | excluding any profits, dividends or fees paid to related | ||||||
| 13 | entities, and actual revenues compared to those projected in | ||||||
| 14 | the attached justification of the previous rent increase, any | ||||||
| 15 | revenue in excess of actual expenses is being returned to | ||||||
| 16 | residents in a rebate, and rents are being adjusted to reflect | ||||||
| 17 | what an accurate projection would have required. | ||||||
| 18 | (1) You are due a rebate of $.... that may be credited | ||||||
| 19 | toward future rent or paid to you at your preference. | ||||||
| 20 | Instructions on how to inform us of your preference are | ||||||
| 21 | included here. | ||||||
| 22 | (2) Your rent has been adjusted from $...._to $...._as | ||||||
| 23 | required by law. | ||||||
| 24 | Under penalty of perjury, as owner or managing agent, I | ||||||
| 25 | attest that I have accurately stated the basis for the rent | ||||||
| 26 | increase in this signed certification." | ||||||
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| 1 | The park owner must maintain clear, detailed, and dated | ||||||
| 2 | records of all calculations and supporting documentation for | ||||||
| 3 | projected expenses, projected revenue, property tax increases, | ||||||
| 4 | utility cost increases, major capital improvement costs, | ||||||
| 5 | actual expenses, actual revenue, rebates, and rent | ||||||
| 6 | adjustments. | ||||||
| 7 | Any park owner violating this Section commits an unlawful | ||||||
| 8 | practice under the Consumer Fraud and Deceptive Business | ||||||
| 9 | Practices Act and, in addition, is liable in a civil action for | ||||||
| 10 | treble damages or $500 per household affected, whichever is | ||||||
| 11 | greater, plus reasonable attorney's fees. | ||||||
| 12 | The park owner shall not charge or impose upon a tenant any | ||||||
| 13 | fee or increase in rent which reflects the cost to the park | ||||||
| 14 | owner of any fine, forfeiture, penalty, money damages, or fee | ||||||
| 15 | assessed or awarded by a court of law against the park owner, | ||||||
| 16 | including any attorney's fees and costs incurred by the park | ||||||
| 17 | owner in connection therewith unless the fine, forfeiture, | ||||||
| 18 | penalty, money damages, or fee was incurred as a result of the | ||||||
| 19 | tenant's actions. | ||||||
| 20 | The park owner shall not charge or impose a pet fee upon a | ||||||
| 21 | resident that owns the home, unless a service related to the | ||||||
| 22 | pet is offered by the park owner and accepted by the resident. | ||||||
| 23 | A tenant of a home owned by the park owner may be subject to | ||||||
| 24 | the imposition of a pet fee as agreed to in the lease. | ||||||
| 25 | (Source: P.A. 102-737, eff. 1-1-23.) | ||||||
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| 1 | Section 10. The Consumer Fraud and Deceptive Business | ||||||
| 2 | Practices Act is amended by adding Section 2MMMM as follows: | ||||||
| 3 | (815 ILCS 505/2MMMM new) | ||||||
| 4 | Sec. 2MMMM. Mobile home fees and rents. It is an unlawful | ||||||
| 5 | practice for a mobile home park owner or managing agent to | ||||||
| 6 | knowingly violate the provisions of Section 9 of the Mobile | ||||||
| 7 | Home Landlord and Tenant Rights Act in imposing a rent | ||||||
| 8 | increase on tenants or knowingly fail to provide accurate | ||||||
| 9 | calculations in any effort to increase rent or fail or refuse | ||||||
| 10 | to rebate rent as required.". | ||||||
