103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5584

 

Introduced 2/9/2024, by Rep. Hoan Huynh

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 745/3  from Ch. 80, par. 203
765 ILCS 745/25.1 new
765 ILCS 745/25.2 new
765 ILCS 745/25.3 new
765 ILCS 745/25.4 new
765 ILCS 745/25.5 new
765 ILCS 745/25.6 new

    Amends the Mobile Home Landlord and Tenant Rights Act. Creates a process if a mobile home park owner attempts to change the use of a mobile home park. Requires the park owner to submit a relocation plan for tenants who may be dislocated by the change and also creates a process for the tenants through their homeowners organization to buy the park. Provides that the change of use that is sought may not be approved until the park owner submits a relocation plan. Requires relocation assistance for a mobile home park with more than 10 sites to be paid to each household equaling the amount of rent for the premises, excluding taxes and utilities, paid for the 12 months immediately preceding the date the tenant vacates the premises. Exempts certain sales of the mobile home park to include, but not be limited to, foreclosure, sale to a park owner's family member, or a sale between joint tenants or tenants in common. Provides that if a park owner receives an offer to buy the park, acceptance of that offer shall be conditioned on the purchaser filing an affidavit, recorded in the land records in the county in which the property is located, affirming that: (i) the purchaser will allow continued use of the land as a mobile home park for 5 years after closing; and (ii) rent for a lot on the property will not increase by more than 10% per year for the first 3 years after the sale is complete. Provides that a purchaser's failure to file this affidavit starts a process for the homeowners association of the tenants to have an opportunity to buy the mobile home park under this Act under terms substantially similar to the proposed sale price of the mobile home park. Makes other changes.


LRB103 38689 JRC 68826 b

 

 

A BILL FOR

 

HB5584LRB103 38689 JRC 68826 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Manufactured
5Housing Modernization Act of 2024.
 
6    Section 5. The Mobile Home Landlord and Tenant Rights Act
7is amended by changing Section 3 and by adding Sections 25.1,
825.2, 25.3, 25.4, 25.5, and 25.6 as follows:
 
9    (765 ILCS 745/3)  (from Ch. 80, par. 203)
10    Sec. 3. Definitions. Unless otherwise expressly defined,
11all terms in this Act shall be construed to have their
12ordinarily accepted meanings or such meaning as the context
13therein requires.
14    (a) "Person" means any legal entity, including but not
15limited to, an individual, firm, partnership, association,
16trust, joint stock company, corporation or successor of any of
17the foregoing.
18    (b) "Manufactured home" means a factory-assembled,
19completely integrated structure designed for permanent
20habitation, with a permanent chassis, and so constructed as to
21permit its transport, on wheels temporarily or permanently
22attached to its frame, and is a movable or portable unit that

 

 

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1is (i) 8 body feet or more in width, (ii) 40 body feet or more
2in length, and (iii) 320 or more square feet, constructed to be
3towed on its own chassis (comprised of frame and wheels) from
4the place of its construction to the location, or subsequent
5locations, at which it is connected to utilities for
6year-round occupancy for use as a permanent habitation, and
7designed and situated so as to permit its occupancy as a
8dwelling place for one or more persons, and specifically
9includes a "manufactured home" as defined in subdivision (53)
10of Section 9-102 of the Uniform Commercial Code. The term
11shall include units containing parts that may be folded,
12collapsed, or telescoped when being towed and that may be
13expected to provide additional cubic capacity, and that are
14designed to be joined into one integral unit capable of being
15separated again into the components for repeated towing. The
16term excludes campers and recreational vehicles. The words
17"mobile home" and "manufactured home" are synonymous for the
18purposes of this Act.
19    (c) "Mobile Home Park" or "Park" means a tract of land or 2
20contiguous tracts of land that contain sites with the
21necessary utilities for 5 or more mobile homes or manufactured
22homes. A mobile home park may be operated either free of charge
23or for revenue purposes.
24    (d) "Park Owner" means the owner of a mobile home park and
25any person authorized to exercise any aspect of the management
26of the premises, including any person who directly or

 

 

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1indirectly receives rents and has no obligation to deliver the
2whole of such receipts to another person.
3    (e) "Tenant" means any person who occupies a mobile home
4rental unit for dwelling purposes or a lot on which he parks a
5mobile home for an agreed upon consideration.
6    (f) "Rent" means any money or other consideration given
7for the right of use, possession and occupancy of property, be
8it a lot, a mobile home, or both.
9    (g) "Master antenna television service" means any and all
10services provided by or through the facilities of any closed
11circuit coaxial cable communication system, or any microwave
12or similar transmission services other than a community
13antenna television system as defined in Section 11-42-11 of
14the Illinois Municipal Code.
15    (h) "Authority having jurisdiction" means the Illinois
16Department of Public Health or a unit of local government
17specifically authorized by statute, rule, or ordinance to
18enforce this Act or any other statute, rule, or ordinance
19applicable to the mobile home park or manufactured home
20community.
21    (i) "Managing agent" means any person or entity
22responsible for the operation, management, or maintenance of a
23mobile home park or manufactured home community.
24    (j) "Homeowners organization" means an incorporated or
25unincorporated organization, including a cooperative housing
26corporation that: (i) represents the interests of the tenants

 

 

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1in mobile home park; (ii) is open to all tenants residing in
2the park; (iii) is controlled by the members of the
3organization; and (iv) is comprised of tenants who lease or
4rent at least 75% of the lots in the park.
5(Source: P.A. 98-749, eff. 7-16-14; 98-1062, eff. 1-1-15;
699-78, eff. 7-20-15.)
 
7    (765 ILCS 745/25.1 new)
8    Sec. 25.1. Mobile home park relocation.
9    (a) When a mobile home park owner submits an application
10for a change in the land use of a park, the owner shall submit,
11as part of the application, a relocation plan for park tenants
12who will be dislocated as a result of the change.
13    (b) If a mobile home park owner does not submit a
14relocation plan for the park tenants or does not comply with
15the terms of an approved plan, the mobile home park owner is in
16default of the plan and the application for change of land use
17submitted under subsection (a) of this Section may not be
18approved until the owner submits and complies with a plan.
19    (c) A relocation plan for park tenants shall include:
20        (1) A complete list of park tenants, including
21    household sizes, addresses, and contact information for
22    them;
23        (2) A relocation calendar or timeline and written
24    monthly updates on the progress of the relocation;
25        (3) If the plan is for closing a park with more than 10

 

 

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1    sites, a budget reflecting the amount of relocation
2    assistance allocated by the mobile home park owner to be
3    given to each household as described in subsection (h) of
4    this Section;
5        (4) A description of the requirement that a tenant
6    provide written notice of the tenant's intention to vacate
7    the park and the timetable for the owner to pay relocation
8    assistance, as provided under subsection (h-5) of this
9    Section;
10        (5) A list of area mobile home parks with vacancies;
11    and
12        (6) A list of area companies that relocate mobile
13    homes.
14    (d) If a mobile home park owner undertakes a reasonable,
15good faith inquiry to obtain the information required under
16subsection (c) and the information in the relocation plan is
17based on the owner's reasonable, good faith inquiry, the owner
18shall not incur any liability and may not be estopped from
19obtaining possession of the premises because of a failure to
20provide accurate information in the relocation plan.
21    (e) A relocation plan may not require, as a condition of
22approval by the authority having jurisdiction of the plan or
23the change in land use submitted under subsection (a) of this
24Section, that:
25        (1) Relocation assistance be paid unless the mobile
26    home park owner sends a notice of park closure to each

 

 

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1    tenant;
2        (2) The amount of relocation assistance exceeds
     the
3    amount described in subsection (h) of this Section;
4        (3) Except as provided in subsection (h) of this
5    Section, any amount of relocation assistance be paid to a
6    tenant before possession of the premises is returned to
7    the owner; or
8        (4) The park owner assures the relocation of any
9    tenant.
10    (f) If any park owner rescinds a notice of park closure,
11the owner is not required to pay relocation assistance after
12the date the notice of rescission is sent to the tenants.
13    (g) A park owner is not required to pay relocation
14assistance to any potential tenant who, after receiving
15written notice of the application for change in land use or
16written notice of park closure, signs an agreement to rent
17premises in the park.
18    (h) If a mobile home park with more than 10 sites is
19closed, the relocation assistance paid to each household shall
20equal the amount of rent for the premises, excluding taxes and
21utilities, paid for the 12 months immediately preceding the
22date the tenant vacates the premises.
23    (h-5) The relocation assistance shall be paid in the
24following manner:
25        (1) One-half of the relocation assistance shall be
26    paid to a tenant within 30 days after the mobile home park

 

 

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1    owner receives written notice of:
2            (A) The tenant's intention to vacate the park; and
3            (B) The date on which the tenant will return
4        possession of the premises to the park owner; and
5        (2) One-half of the relocation assistance shall be
6    paid to a tenant within 30 days after the tenant returns
7    possession of the premises to the owner.
8    (i) If a tenant fails to return possession of the premises
9by removing the mobile home from the premises on or before the
10date specified in the tenant's notice of intention to vacate,
11the tenant shall forfeit the balance of any relocation
12assistance due unless the park owner agrees in writing to a
13different date.
14    (j) The local governing body of the county or municipal
15corporation in which a mobile home park is located may provide
16additional relocation assistance to tenants.
17    (k) A mobile home park owner is not responsible for any
18payments made under subsection (j).
 
19    (765 ILCS 745/25.2 new)
20    Sec. 25.2. Applicability; exemptions.
21    (a) The requirements of this Act apply separately to each
22substantially different offer to sell or to purchase a mobile
23home park.
24    (b) This Act does not apply to the potential sale of a
25mobile home park if:

 

 

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1    (1) A mortgagee, grantee, or other secured party has
2    foreclosed on the mobile home park and the mortgagee,
3    grantee, or secured party is selling the mobile home park:
4        (A) At a foreclosure sale; or
5        (B) After purchasing the mobile home park at a
6        foreclosure sale;
7    (2) The park owner is selling the mobile home park to:
8        (A) A family member of the park owner; or
9        (B) A trust whose beneficiaries are family members of
10        the park owner;
11    (3) The park owner is a partnership, limited liability
12    company, or similar business entity and the sale is to one
13    or more of the partners or members of the business entity;
14    (4) The conveyance of an interest in the mobile home park
15    is incidental to the financing of the mobile home park;
16    (5) The sale of the mobile home park is between joint
17    tenants or tenants in common;
18    (6) The sale of the mobile home park is a result of the
19    exercise of the power of eminent domain;
20    (7) The sale of the mobile home park involves a merger,
21    recapitalization, or similar transaction where:
22        (A) At least one of the park owners before the
23        transaction remains an owner after the transaction;
24        and
25        (B) The park owner files an affidavit, recorded in the
26        land records in the county in which the property is

 

 

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1        located, affirming that the park owner will allow
2        continued use of the land as a mobile home park for at
3        least 6 months after the date the transaction is
4        finalized; or
5    (8) The sale of the mobile home park involves:
6        (A) A like-kind exchange; or
7        (B) A sale of more than one home in the park to a
8        single purchaser.
 
9    (765 ILCS 745/25.3 new)
10    Sec. 25.3. Purchase of a mobile home park.
11    (a) If a park owner receives an offer to purchase the park,
12acceptance of that offer shall be conditioned on the purchaser
13filing an affidavit, recorded in the land records in the
14county in which the property is located, affirming that:
15        (1) The purchaser will allow continued use of the land
16    as a mobile home park for 5 years after the date the
17    purchase is finalized; and
18        (2) Rent for a lot on the property will not increase by
19    more than 10% per year for the first 3 years after the date
20    the purchase is finalized.
21    (b) If the purchaser fails to file an affidavit in
22accordance with subsection (a) of this Section, acceptance by
23the park owner of the offer to purchase the park shall be
24conditioned on the park owner:
25        (1) Providing notice of the terms of the offer or the

 

 

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1    contract that the park owner has conditionally accepted
2    to:
3            (A) Each tenant in the mobile home park;
4            (B) The Illinois Housing Development Authority;
5        and
6            (C) The authority having jurisdiction; and
7        (2) Providing the tenants with the opportunity to
8    purchase the mobile home park in accordance with Section
9    25.4 of this Act.
10    (c) The notice required under subsection (b) of this
11Section shall:
12        (1) Be posted in a public area of the mobile home park;
13        (2) Be sent by registered or certified mail to the
14    homeowners organization; and
15        (3) Include the following information:
16            (A) The price and material terms and conditions of
17        the offer that the park owner has conditionally
18        accepted for the sale of the mobile home park with
19        copies of any documents evidencing the price and terms
20        and conditions;
21            (B) A statement indicating that the tenants,
22        through a homeowners organization, may purchase the
23        mobile home park by submitting an offer within 60 days
24        of the mailing date of the notice, containing
25        substantially similar material terms to the offer that
26        the park owner has conditionally accepted; and

 

 

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1            (C) The list of organizations and county housing
2        agencies required under subsection (g) of Section
3        25.4.
4        (4) The price and terms and conditions stated in the
5    notice to the tenants must be universal and applicable to
6    all potential buyers and may not be specific to the
7    tenants or their assignees.
8        (5) Within 10 days after the date on which the park
9    owner provides notice required under this Section, the
10    park owner shall make available to the homeowners
11    organization the same information that the park owner
12    provided or would have provided to other prospective
13    purchasers.
14        (6) The park owner is not liable to any party to a real
15    estate transaction for a violation of this Section.
 
16    (765 ILCS 745/25.4 new)
17    Sec. 25.4. Allowance for homeowners organization to
18purchase the park.
19    (a) On notice of the intent to sell a mobile home park in
20accordance with Section 25.3 of this Act, a homeowners
21organization may offer to purchase the mobile home park by:
22        (1) Providing documentation to the park owner
23    indicating that at least 75% of the members of the
24    homeowners organization who reside in the mobile home
25    park, with one vote per home, have voted to purchase the

 

 

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1    mobile home park;
2        (2) Notifying the park owner of the intent to purchase
3    the mobile home park; and
4        (3) Submitting to the park owner a proposed agreement
5    to purchase the mobile home park that includes terms
6    substantially similar to the terms included in the sales
7    notice provided under Section 25.3
     of this Act.
8    (b) The homeowners organization shall send the notice of
9intent to purchase the mobile home park and the proposed
10agreement required under subsection (a) of this Section to the
11park owner by registered or certified mail.
12    (c) If the homeowner organization submits a proposed
13agreement to purchase the mobile home park in accordance
14within the 60-day period identified in this Section, the park
15owner shall consider the offer in good faith, which shall
16include a duty not to act to scuttle the proposed agreement,
17not to arbitrarily or capriciously refuse to proceed with
18negotiations, and not to engage in misconduct or dishonesty in
19the negotiations.
20    (c-5) After the expiration of the 60 days identified in
21this Section, a park owner may not be required to consider
22additional offers from the homeowners organization.
23    (d) If the mobile home park owner and the homeowners
24organization enter into an agreement for the sale of the
25mobile home park, unless the parties agree to an alternative
26period of time, the homeowners organization shall have not

 

 

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1more than 105 days after the date of the agreement to obtain
2financing and close on the purchase.
3    (e) If the homeowners organization does not obtain
4financing for the purchase or the parties fail to close on the
5purchase within the time period prescribed in subsection (d)
6of this Section, the park owner has complied with the owner's
7obligations under this Section.
8    (f) A homeowners organization may assign its rights under
9this Act to a local government, housing authority, nonprofit
10with expertise relating to housing, or the State or an agency
11of the State, for the purpose of continuing the use of the
12property as a mobile home park that will provide affordable
13housing.
14    (g) The Illinois Housing Development Authority shall
15maintain on its website a list of organizations and county
16housing agencies available to assist tenants with financing
17for the purchase of a mobile home park.
 
18    (765 ILCS 745/25.5 new)
19    Sec. 25.5. Notice of affidavit. A park owner who files an
20affidavit under Section 25.2 of this Act or a purchaser who
21files an affidavit as required under Section 25.3 of this Act
22shall, not more than 30 days after the date of the sale:
23        (1) Provide notice of the affidavit to each tenant in
24    the mobile home park by first-class mail; and
25        (2) Post a copy of the affidavit in a public area of

 

 

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1    the mobile home park.
 
2    (765 ILCS 745/25.6 new)
3    Sec. 25.6. Penalties.
4    (a) If a park owner willfully fails to comply with the
5requirements of Sections 25.1 and 25.5 of this Act, the park
6owner shall be liable to the homeowners organization in the
7amount of $10,000.
8    (b) A purchaser who files an affidavit as required under
9Section 25.3
of this Act is liable to the homeowners
10organization in the amount of $10,000 if the purchaser:
11        (1) Closes the mobile home park within 5 years after
12    the date the purchase is finalized; or
13        (2) Increases the rent for a lot on the property by
14    more than 10% per year in the first 3 years after the date
15    the purchase is finalized.