HB4703 103RD GENERAL ASSEMBLY

LRB103 32788 LNS 62592 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4703

Introduced 2/6/2024, by Rep. Abdelnasser Rashid

SYNOPSIS AS INTRODUCED:

765 ILCS 745/8.5
765 ILCS 745/8.7 new

Amends the Mobile Home Landlord and Tenant Rights Act. Provides that if a park owner elects to sell, lease, or transfer either all or a portion of the mobile home park, a tenant representing 25% or more of the units in the mobile home park that are occupied by the owners of such units or one or more of the owner's family members shall have the right to make an offer to purchase the mobile home park. Requires the park owner to consider the tenant's offer and negotiate with such tenant in good faith. Sets forth exceptions.

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 Mobile Home Landlord and Tenant Rights Act is amended by changing Section 8.5 and by adding Section 8.7 as follows:

(765 ILCS 745/8.5)

Sec. 8.5. Park closure, sale, lease, or transfer Closure. If a park owner elects to cease the operation of either all or a portion of the mobile home park or elects to sell, lease, or transfer either all or a portion of the mobile home park, the tenants shall be entitled to at least 12 months' notice of such ceasing of operations or sale, lease, or transfer. If 12 months or more remain on the existing lease at the time of notice, the tenant is entitled to the balance of the term of his or her lease up to the date of the closing or sale, lease, or transfer. If less than 12 months remain in the term of his or her lease, the tenant is entitled to the balance of his or her lease plus a written month-to-month tenancy and rent must remain at the expiring lease rate to provide him or her with a full 12 months' notice.

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

(765 ILCS 745/8.7 new)

Sec. 8.7. Tenant right to purchase mobile home park.

(a) No later than 90 days after the notice provided in Section 8.5 has been received, any tenant representing 25% or more of the units in the mobile home park that are occupied by the owners of such units or one or more of the owner's family members may notify the park owner that he or she is interested in purchasing the mobile home park. The tenant shall have 365 days after the notice required under Section 8.5 has been given to purchase the mobile home park through negotiation or a method set forth in subsection (b), or, if the tenant proceeds under subsection (c) and reaches an agreement with the park owner for purchase of the park, to close on the sale.

(b) If the tenant and the park owner cannot agree upon a purchase price, the tenant shall have the right to purchase the property:

(1) if the tenant matches the essential provisions of any existing bona fide offer to purchase the park made by another potential purchaser which offer by such other purchaser the park owner is prepared to accept, if the park owner requires the tenant to pay 102% of the purchase price contained in such bona fide offer; or

(2) if there is no such offer, at a purchase price to be established by an appraiser chosen by the tenant and the park owner, and the park owner shall offer to sell the park to the tenant at such purchase price in accordance with this subsection. If the parties cannot agree upon an appraiser, either party may notify the other, in writing, of such disagreement, and the tenant shall choose an appraiser, the park owner shall choose an appraiser, and the 2 appraisers shall choose a third appraiser, which 3 appraisers shall establish a value of the mobile home park.

(c) Within the 90-day period prescribed under subsection (a), a tenant that meets the requirements of subsection (a) shall have the right to make an offer to purchase the mobile home park without following the method or invoking the rights set forth in subsection (b), in which case the tenant shall so state when presenting his or her offer to the park owner. The park owner shall have the duty to consider the tenant's offer and negotiate with such tenant in good faith.

(d) A tenant that has the right to purchase under this Section may, at his or her election, assign his or her purchase rights to the municipality where the tenant is located, the housing authority for its area, an agency of the State or a nonprofit organization for the purpose of continuing the use of the property as a mobile home park.

(e) The requirements of this Section shall apply separately to each substantially different offer to sell or purchase a mobile home park.

(f) This Section shall not apply if:

(1) the sale, lease, or transfer is to a family member of the park owner or to a trust, the beneficiaries of which are family members of the park owner;

(2) the transfer is by gift, devise, or required by operation of law;

(3) the sale, lease, or transfer is by a partnership to one or more of its partners;

(4) the conveyance of an interest in the mobile home park is incidental to the financing of such mobile home park;

(5) the lease is the lease of a lot within the mobile home park to a person who will live in a mobile home on such lot;

(6) the sale, lease, or transfer is between joint tenants or tenants in common; or

(7) the sale is made by eminent domain.