SB2867 98TH GENERAL ASSEMBLY

LRB098 19535 HEP 54713 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2867

Introduced 2/4/2014, by Sen. Toi W. Hutchinson

SYNOPSIS AS INTRODUCED:

765 ILCS 745/3	from Ch. 80, par. 203
765 ILCS 745/6.5
765 ILCS 745/8.6 new
765 ILCS 745/8.7 new
765 ILCS 745/8.8 new
765 ILCS 745/8.9 new

Amends the Manufactured Home Landlord Tenant Rights Act. Defines "manufactured home owner" and "displaced manufactured home owner". Creates the Manufactured Home Owners Relocation Trust Fund. Provides procedures to pay a manufactured home owner displaced by a community closure and provides for required payments from a manufactured home community owner to a displaced manufactured home owner and to the Manufactured Home Owners Relocation Trust Fund. Provides that the Manufactured Home Owners Relocation Trust Fund shall be used to provide assistance for the relocation of displaced manufactured home owners and for other purposes. Makes other changes.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Manufactured Home Landlord and Tenant Rights Act is amended by changing Sections 3 and 6.5 and by adding Sections 8.6, 8.7, 8.8, and 8.9 as follows:

(765 ILCS 745/3) (from Ch. 80, par. 203)

Sec. 3. Definitions. Unless otherwise expressly defined, all terms in this Act shall be construed to have their ordinarily accepted meanings or such meaning as the context therein requires.

(a) "Person" means any legal entity, including but not limited to, an individual, firm, partnership, association, trust, joint stock company, corporation or successor of any of the foregoing.

(b) "Manufactured home" means a factory-assembled, completely integrated structure designed for permanent habitation, with a permanent chassis, and so constructed as to permit its transport, on wheels temporarily or permanently attached to its frame, and is a movable or portable unit that is (i) 8 body feet or more in width, (ii) 40 body feet or more in length, and (iii) 320 or more square feet, constructed to be towed on its own chassis (comprised of frame and wheels) from the place of its construction to the location, or subsequent locations, at which it is installed and set up according to the manufacturer's instructions and connected to utilities for year-round occupancy for use as a permanent habitation, and designed and situated so as to permit its occupancy as a dwelling place for one or more persons. The term shall include units containing parts that may be folded, collapsed, or telescoped when being towed and that may be expected to provide additional cubic capacity, and that are designed to be joined into one integral unit capable of being separated again into the components for repeated towing. The term excludes campers and recreational vehicles.

(c) "Mobile Home Park", "community", "manufactured home community", or "community" or "Park" means a tract of land or 2 contiguous tracts of land that contain sites with the necessary utilities for 5 or more mobile homes or manufactured homes. A mobile home park may be operated either free of charge or for revenue purposes.

(d) "Park Owner" or "community owner" means the owner of a mobile home park and any person authorized to exercise any aspect of the management of the premises, including any person who directly or indirectly receives rents and has no obligation to deliver the whole of such receipts to another person.

(e) "Tenant" means any person who occupies a mobile home rental unit for dwelling purposes or a lot on which he parks a mobile home for an agreed upon consideration.

(f) "Rent" means any money or other consideration given for the right of use, possession and occupancy of property, be it a lot, a mobile home, or both.

(g) "Master antenna television service" means any and all services provided by or through the facilities of any closed circuit coaxial cable communication system, or any microwave or similar transmission services other than a community antenna television system as defined in Section 11-42-11 of the Illinois Municipal Code.

(h) "Manufactured home owner" means the owner of a manufactured home.

(i) "Displaced manufactured home owner" means the owner of a manufactured home which is located on a site in a manufactured home community that is ceasing operation as described in Section 8.6.

(Source: P.A. 96-1477, eff. 1-1-11.)

(765 ILCS 745/6.5)

Sec. 6.5. Disclosure. A park owner must disclose in writing the following with every lease or sale and upon renewal of a lease of a mobile home or lot in a mobile home park:

(1) the rent charged for the mobile home or lot in the past 5 years;

(2) the community park owner's responsibilities with respect to the mobile home or lot;

(3) information regarding any fees imposed in addition to the base rent;

(4) information regarding late payments;

(5) information regarding any privilege tax that is applicable;

(6) information regarding security deposits, including the right to the return of security deposits and interest as provided in Section 18 of this Act; and

(7) information on a 3-year rent increase projection which includes the 2 years of the lease and the year immediately following. The basis for such rent increases may be a fixed amount, a "not to exceed" amount, a formula, an applicable index, or a combination of these methodologies as elected by the park owner. These increases may be in addition to all the non-controllable expenses including, but not limited to, property taxes, government assessments, utilities, and insurance;

(8) the name, address, and telephone number of the owner and any manager of the manufactured home community; and

(9) information regarding the Manufactured Home Owners Relocation Trust Fund.

The park owner must update the written disclosure at least once per year. The park owner must advise tenants who are renewing a lease of any changes in the disclosure from any prior disclosure.

(Source: P.A. 95-383, eff. 1-1-08.)

(765 ILCS 745/8.6 new)

Sec. 8.6. Cessation of community operation.

(a) The owner of a manufactured home community that is ceasing operation must pay 50% of the following sums to the Manufactured Home Owners Relocation Trust Fund:

(1) the relocation expense allowance under Section 8.8 of this Act; and

(2) at the displaced manufactured home owner's election, the relocation costs to relocate the manufactured home as defined by subsection (b) of this Section, or the payment for an abandoned home as defined by Section 8.8 of this Act.

(b) Relocation costs shall include the costs of disconnecting and moving the home to a different community or other location selected by the displaced manufactured home owner within a 100 mile radius of the community and reconnecting the home with all hook-ups so that it is substantially in the same condition as before the move, with any required and comparable appurtenances.

(c) The appraised value of the manufactured home shall be the fair market value of the home and any existing appurtenances but excluding the value of the underlying land, determined by an independent appraiser agreed to by the community owner and the displaced manufactured home owner. In making the determination, the appraiser shall assess the fair market value based on the price that a willing and able buyer intending to reside in the home would pay for the home and any existing appurtenances, but excluding the value of the underlying land, and shall assume that the home is and will continue to be located on a lot which is leased in a duly licensed manufactured home community, with all hook-ups and existing appurtenances in place for use and occupancy by the resident.

(d) A displaced manufactured home owner shall not be entitled to compensation when:

(1) the community owner moves the manufactured home to another space in the manufactured home community, or to another manufactured home community acceptable to the displaced manufactured home owner, at the community owner's expense;

(2) the displaced manufactured home owner is vacating the premises and has informed the community owner or manager before notice of the change in use has been given; or

(3) the displaced manufactured home owner or the person residing in the manufactured home is the defendant in a pending eviction action for non-payment of lot rent on the mailing date of the notice of community closure; provided that if a judgment for possession of the premises is not entered in favor of the community owner, this exception does not apply.

(e) The owner of a manufactured home community shall notify in writing each tenant and, if a home owners association has been established, the directors of the association, of any application for a change in zoning of all or a portion of the manufactured home community within 5 days after the filing for such a zoning change with the zoning authority. The tenants are entitled to all rights under State and local zoning laws, rules, and regulations that are extended to owners of neighboring land. Any zoning change approved without the notice required by this Section is void.

(f) The closure statement in the community closure notice required by Section 8.5 of this Act must include the following language in a font no smaller than 14-point: "YOU MAY BE ENTITLED TO COMPENSATION FROM THE MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE ILLINOIS DEPARTMENT OF PUBLIC HEALTH."

(765 ILCS 745/8.7 new)

Sec. 8.7. Manufactured Home Owners Relocation Trust Fund.

(a) There is created the Manufactured Home Relocation Trust Fund. The Illinois Department of Public Health shall use the Manufactured Home Owners Relocation Trust Fund to provide assistance for the relocation of displaced manufactured home owners. All interest earned from the investment or deposit of moneys in the Manufactured Home Owners Relocation Trust Fund must be deposited into the Fund.

(b) Moneys in the Manufactured Home Owners Relocation Trust Fund may be used only:

(1) to pay the administrative costs of the Fund, including expenses associated with the annual audit required under subsection (g) of this Section; and

(2) to carry out the objectives of assisting displaced manufactured home owners when the community owner intends to change the use of all or part of the land on which the manufactured home community is located.

(c) After notifying the tenants in a community owner's manufactured home community that the community owner intends to cease operation of all or part of the community pursuant to Section 8.5 of this Act, if the community owner does not cease operation of all or the designated part of the community within 3 years after the date of the notification, or if the Illinois Department of Public Health finds there is prima facie evidence that the owner did not intend in good faith to change the land use, the community owner shall, within 30 days of the date that the Illinois Department of Public Health provides written notice to the community owner of the prima facie evidence determination, reimburse the Manufactured Home Relocation Trust Fund whatever moneys the Department has expended from the Manufactured Home Owners Relocation Trust Fund with respect to that manufactured home community, along with an amount that is equal to 2 times the amount of the interest allowed on a judgment that would have been earned on the moneys expended in the period between the time that the moneys were expended from the Manufactured Home Relocation Trust Fund until the amount is reimbursed. The date of the mailing of the notice of the prima facie evidence determination by the Illinois Department of Public Health is deemed to be the date that a community owner is notified about reimbursing the Manufactured Home Relocation Trust Fund. However, if the community owner, with due diligence, has not been able to complete the change-in-use process within 3 years, the Illinois Department of Public Health may grant a reasonable extension to the community owner to complete the process.

(d) The cap on the Manufactured Home Owners Relocation Trust Fund is $10 million. The cap may be adjusted, eliminated, or reinstated by the Illinois Department of Public Health.

(e) If the Manufactured Home Owners Relocation Trust Fund ceases to exist, the moneys in the Manufactured Home Owners Relocation Trust Fund held at the time of dissolution must be liquidated by paying the total amount of the Manufactured Home Owners Relocation Trust Fund, on a per capita basis, to each tenant of a rented lot in a manufactured home community in this State who has occupied the lot for at least the 12 months immediately prior to the time of the dissolution.

(f) Monthly fee.

(1) The Illinois Department of Public Health shall set a $1 monthly fee for deposit in the Manufactured Home Owners Relocation Trust Fund for each rented lot in a manufactured home community. The Illinois Department of Public Health may adjust, eliminate, or reinstate the assessment, and shall notify community owners and tenants of each adjustment, elimination, or reinstatement pursuant to rules. If the Illinois Department of Public Health adjusts the amount of the assessment upward, it may not exceed $3 per month.

(2) The community owner shall collect the tenant's portion of the fee on a monthly basis as additional rent. The community owner shall remit to the Manufactured Home Owners Relocation Trust Fund the tenant's fee on a monthly basis. The community owner is responsible for safeguarding all assessments it collects. A fee is not due or collectable for a vacant lot.

(3) If a lot is rented for any portion of a month, the full monthly assessment must be paid to the Manufactured Home Owners Relocation Trust Fund.

(4) If a lease contains or is subject to a capping provision which limits the amount by which rent may be increased, the Manufactured Home Owners Relocation Trust Fund assessment is deemed not to be rent for purposes of rent increases.

(g) The Manufactured Home Owners Relocation Trust Fund must be audited annually. If the State Auditor performs the audit, the Manufactured Home Owners Relocation Trust Fund shall pay to the State from the Fund the cost of the audit. The completed audit must be made available to the public by placing it on a website, by offering it as a hard copy for a fee which reflects reasonable reproduction cost, or in some other manner determined by the Illinois Department of Public Health.

(h) The Illinois Department of Public Health shall make available to the public, at least on a quarterly basis, the amount of the payment from the Manufactured Home Owners Relocation Trust Fund made to each displaced manufactured home owner, along with a description of the property related to the payment and the reason for the payment.

(i) The Illinois Department of Public Health may place a lien against the property of any community owner who is required to make any payment to the Manufactured Home Owners Relocation Trust Fund but fails to do so.

(765 ILCS 745/8.8 new)

Sec. 8.8. Relocation expense payments.

(a) If a community owner elects to cease the operation of either all or a portion of the manufactured home community, each displaced manufactured home owner who is required to relocate and who complies with the requirements of this Act is entitled to:

(1) payment from the Manufactured Home Owners Relocation Trust Fund a relocation expense allowance in the amount of $1,000 to cover the costs of suitable lodging while the manufactured home owner is relocating and the costs of security deposits and other moving expenses, payable to the displaced manufactured home owner no later than the time of departure of the displaced manufactured home owner from the manufactured home community; and

(2) at the displaced manufactured home owner's election, the displaced manufactured home owner's actual relocation costs as defined by Section 8.6 of this Act, which shall be paid as provided in subsection (e) of this Section, or the amount for an abandoned home provided by subsections (b) and (c) of this Section, which shall be paid as provided in subsection (b) of this Section.

(b) If a displaced manufactured home owner elects not to receive payment of relocation costs under subsection (a) of this Section, the displaced manufactured home owner may abandon the manufactured home in the manufactured home community and receive from the Manufactured Home Owners Relocation Trust Fund the greater of:

(1) the appraised value of the home as defined by Section 8.6 of this Act;

(2) $3,500 for a single-section home or $7,500 for a multi-section home; or

(3) the amount necessary to release any security interest in the home that was created in connection with a bona fide financing or refinancing of the home.

To be entitled to payment under paragraphs (1) or (2) of this subsection, the displaced manufactured home owner must deliver to the Illinois Department of Public Health a current title to the manufactured home duly endorsed by the owner or owners of record, valid releases of all liens shown on the title, and a tax release. Payment shall be made directly to the displaced manufactured home owner. When payment is made under paragraph (3) of this subsection, the Illinois Department of Public Health shall make the payment directly to the lien holder and shall make appropriate arrangements to obtain the title endorsed by the owner or owners of record with valid releases of all other liens shown on the title and a tax release. After receiving the title from the home owner, the Illinois Department of Public Health shall turn over title of the abandoned manufactured home to the manufactured home community owner, provided that the community owner has made the payments required by Section 8.6 of this Act. If the Illinois Department of Public Health believes that the home has resale value, it may require the manufactured home community owner to turn over to the Manufactured Home Owners Relocation Trust Fund one-half of the net proceeds from the sale of the home.

(c) The figures for single-section and multi-section manufactured homes under paragraph (2) of subsection (b) of this Section shall be adjusted every 3 years, beginning on January 1, 2016, by the percentage change since the figure was last set or adjusted in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.

(d) In order to obtain payment from the Manufactured Home Owners Relocation Trust Fund for the relocation of a manufactured home under paragraph (2) of subsection (a) of this Section, a displaced manufactured home owner must submit to the Illinois Department of Public Health, with a copy to the park owner, an application for payment which includes:

(1) a copy of the community closure notice required by Section 8.5 of this Act; and

(2) a contract with a licensed moving and installer contractor for the moving expenses for the manufactured home.

(e) The Illinois Department of Public Health shall approve or reject payment to a moving or towing contractor within 30 days after receipt of the information required by this Section, and forward a copy of the approval or rejection to the displaced manufactured home owner, with a voucher for payment if payment is approved.

(765 ILCS 745/8.9 new)

Sec. 8.9. Payment of funds to homeowners.

(a) When a payment from the Manufactured Home Owners Relocation Trust Fund to a displaced manufactured home owner is authorized by the Illinois Department of Public Health, the Illinois Department of Public Health shall issue a check in a designated amount to the named displaced manufactured home owner.

(b) If the Manufactured Home Owners Relocation Trust Fund does not have sufficient moneys to make a payment to a displaced manufactured home owner pursuant to this Act, the Illinois Department of Public Health shall issue a written promissory note to the displaced manufactured home owner for funds due and owing. A promissory note may be redeemed in order of issuance of the notes as additional moneys come into the Manufactured Home Owners Relocation Trust Fund.

(c) It is a Class A misdemeanor for a displaced manufactured home owner or his or her agent to file any notice, statement, or other document required under this Act which is false or contains a material misstatement of fact.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.