Rep. Martin J. Moylan
Filed: 3/27/2014
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1 | AMENDMENT TO HOUSE BILL 4123
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2 | AMENDMENT NO. ______. Amend House Bill 4123 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Mobile Home Landlord and Tenant Rights Act | ||||||
5 | is amended by changing Section 6, 6.5, 12, 18, and 21 and by | ||||||
6 | adding Sections 6.6 and 6.7 as follows:
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7 | (765 ILCS 745/6) (from Ch. 80, par. 206)
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8 | Sec. 6. Obligation of Park Owner to Offer Written Lease. | ||||||
9 | Except as provided in this Act, no person
shall offer a mobile | ||||||
10 | home or lot for rent or sale in a mobile home park
without | ||||||
11 | having first exhibited to the prospective tenant or purchaser a
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12 | copy of the lease applicable to the respective mobile home | ||||||
13 | park, unless the prospective tenant waives this right in | ||||||
14 | writing.
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15 | (a) The park owner shall be required, on a date before the | ||||||
16 | date on which the lease is signed, to offer to each present and
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1 | future tenant a written lease for a term of not less than 24 | ||||||
2 | months,
unless the prospective tenant waives that right and the | ||||||
3 | parties agree to a different term subject to existing leases
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4 | which shall be continued pursuant to their terms.
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5 | (b) Tenants in possession on the effective date of this Act | ||||||
6 | shall
have 30 days after receipt of the offer for a written | ||||||
7 | lease within which
to accept or reject such offer; during which | ||||||
8 | period, the rent may not be
increased or any other terms and | ||||||
9 | conditions changed, except as permitted
under this Act; | ||||||
10 | providing that if the tenant has not so elected he shall
vacate | ||||||
11 | within the 30 day period.
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12 | (c) The park owner shall notify his tenants in writing not | ||||||
13 | later
than 30 days after the effective date of this Act, that a | ||||||
14 | written lease
shall be available to the tenant and that such | ||||||
15 | lease is being offered in
compliance with and will conform to | ||||||
16 | the requirements of this Act.
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17 | (d) The park owner shall give 90 days' notice of any rent | ||||||
18 | increase and no rent increase shall go into effect until 90 | ||||||
19 | days after the notice. Upon receipt of the notice of the rent | ||||||
20 | increase, a tenant shall have 30 days in which to accept or | ||||||
21 | reject the rent increase. If the tenant rejects the rent | ||||||
22 | increase, the tenant must notify the park owner of the date on | ||||||
23 | which the tenant will vacate the premises, which shall be a | ||||||
24 | date before the effective date of the rent increase. | ||||||
25 | (e) The park owner may provide for a specified rent | ||||||
26 | increase between the first and second years of the lease. |
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1 | (f) The park owner may offer a month-to-month tenancy | ||||||
2 | agreement option to a tenant not wishing to make a long-term | ||||||
3 | commitment if the tenant signs a written statement | ||||||
4 | acknowledging that the park owner offered the tenant a longer | ||||||
5 | term lease but the tenant chose instead to agree to only a | ||||||
6 | month-to-month tenancy agreement. If the tenant declines to | ||||||
7 | sign either a lease or a statement acknowledging that a lease | ||||||
8 | was offered, the park owner shall sign and deliver to the | ||||||
9 | tenant a statement to that effect. Any month-to-month tenancy | ||||||
10 | agreement must provide a minimum of 90 days' notice to the | ||||||
11 | tenant before any rent increase is effective. | ||||||
12 | (g) A prospective tenant who executes a lease pursuant to | ||||||
13 | this Section may cancel the lease by notifying the park owner | ||||||
14 | in writing within 3 business days after the prospective | ||||||
15 | tenant's execution of the lease, unless the prospective tenant | ||||||
16 | waives in writing this right to cancel the lease or waives this | ||||||
17 | right by taking possession of the mobile home or the lot. The | ||||||
18 | park owner shall return any security deposit or rent paid by | ||||||
19 | the prospective tenant within 10 days after receiving the | ||||||
20 | written cancellation. | ||||||
21 | (h) The maximum amount that a park owner may recover as | ||||||
22 | damages for a tenant's early termination of a lease is the | ||||||
23 | amount due under the lease, less any offset or mitigation | ||||||
24 | through a re-lease. | ||||||
25 | (i) A tenant in possession of a mobile home or lot who is | ||||||
26 | not subject to a current lease on the effective date of this |
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1 | amendatory Act of the 95th General Assembly
shall be offered a | ||||||
2 | lease by the park owner within 90 days after the effective date | ||||||
3 | of this amendatory Act of the 95th General Assembly. Tenants in | ||||||
4 | possession on the effective date of this amendatory Act of the | ||||||
5 | 95th General Assembly
shall have 30 days after receipt of the | ||||||
6 | offer for a written lease within which to accept or reject the | ||||||
7 | offer, during which period the rent may not be increased or any | ||||||
8 | other terms and conditions changed, except as permitted under | ||||||
9 | this Act; provided that if the tenant has not so elected he or | ||||||
10 | she shall vacate within the 30-day period.
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11 | (j) A written lease or month-to-month tenancy agreement | ||||||
12 | under this Section is not terminated solely by: | ||||||
13 | (1) the filing by or against the park owner of a case | ||||||
14 | or proceeding under Title 11 of the United States Code; | ||||||
15 | (2) the entry of a judgment or order against the park | ||||||
16 | owner or involving the park property in a foreclosure | ||||||
17 | proceeding brought by a creditor of the park owner; or | ||||||
18 | (3) the foreclosure of a property tax lien on the park | ||||||
19 | property or sale of the park property for unpaid property | ||||||
20 | taxes pursuant to Section 21-75 of the Property Tax Code. | ||||||
21 | (Source: P.A. 95-383, eff. 1-1-08.)
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22 | (765 ILCS 745/6.5) | ||||||
23 | Sec. 6.5. Disclosure. A park owner must disclose in writing | ||||||
24 | the following with every lease or sale and upon renewal of a | ||||||
25 | lease of a mobile home or lot in a mobile home park: |
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1 | (1) the rent charged for the mobile home or lot in the | ||||||
2 | past 5 years; | ||||||
3 | (2) the park owner's responsibilities with respect to | ||||||
4 | the mobile home or lot; | ||||||
5 | (3) information regarding any fees imposed in addition | ||||||
6 | to the base rent; | ||||||
7 | (4) information regarding late payments; | ||||||
8 | (5) information regarding any privilege tax that is | ||||||
9 | applicable; | ||||||
10 | (6) information regarding security deposits, including | ||||||
11 | the right to the return of security deposits and interest | ||||||
12 | as provided in Section 18 of this Act; and
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13 | (7) information on a 3-year rent increase projection | ||||||
14 | which includes the 2 years of the lease and the year | ||||||
15 | immediately following. The basis for such rent increases | ||||||
16 | may be a fixed amount, a "not to exceed" amount, a formula, | ||||||
17 | an applicable index, or a combination of these | ||||||
18 | methodologies as elected by the park owner. These increases | ||||||
19 | may be in addition to all the non-controllable expenses | ||||||
20 | including, but not limited to, property taxes, government | ||||||
21 | assessments, utilities, and insurance ; . | ||||||
22 | (8) the name, address, and telephone number of the | ||||||
23 | community or park owner and any manager or designated agent | ||||||
24 | for the manufactured home community or mobile home park; | ||||||
25 | (9) if the community or park owner has business | ||||||
26 | headquarters off-site from the manufactured home community |
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1 | or mobile home park, the name, address, and telephone | ||||||
2 | number of the community or park owner's business | ||||||
3 | headquarters; | ||||||
4 | (10) the nature of the park owner's affiliation, if | ||||||
5 | any, with the seller of any manufactured home that the | ||||||
6 | tenant is purchasing for use on the lot that the tenant is | ||||||
7 | to lease or the entity that is financing the purchase of | ||||||
8 | the home; and | ||||||
9 | (11) information contained in the notice required | ||||||
10 | under Section 6.7 of this Act. | ||||||
11 | The park owner must update the written disclosure at least | ||||||
12 | once per year. The park owner must advise tenants who are | ||||||
13 | renewing a lease of any changes in the disclosure from any | ||||||
14 | prior disclosure. Within 10 days after the sale of a | ||||||
15 | manufactured home community or mobile home park, the purchaser | ||||||
16 | must provide written notice to each homeowner of the name, | ||||||
17 | address, and telephone number of the new community or park | ||||||
18 | owner, the name, address, and telephone number of the community | ||||||
19 | or park owner's business headquarters, if located off-site from | ||||||
20 | the manufactured home community or mobile home park, and any | ||||||
21 | manager or designated agent for the manufactured home community | ||||||
22 | or mobile home park.
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23 | (Source: P.A. 95-383, eff. 1-1-08.) | ||||||
24 | (765 ILCS 745/6.6 new) | ||||||
25 | Sec. 6.6. Notice of bankruptcy or foreclosure proceedings. |
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1 | (a) If a bankruptcy case is commenced by or against a park | ||||||
2 | owner by the filing of a voluntary or involuntary petition | ||||||
3 | under Title 11 of the United States Code, if a receiver is | ||||||
4 | appointed by a court of competent jurisdiction in a case filed | ||||||
5 | by or against a park owner, or if a foreclosure proceeding is | ||||||
6 | initiated against the park property by a creditor of the park | ||||||
7 | owner, the park owner shall provide written notice of the | ||||||
8 | commencement of the bankruptcy, receivership, or foreclosure | ||||||
9 | to the tenant within 30 days of the commencement of the case or | ||||||
10 | proceeding. | ||||||
11 | (b) If a trustee in bankruptcy, receiver, or foreclosing | ||||||
12 | mortgagee contends that rent should be paid by the tenant to | ||||||
13 | the trustee, receiver, or foreclosing mortgagee rather than to | ||||||
14 | the park owner, the trustee, receiver, or foreclosing mortgagee | ||||||
15 | shall provide written notice to the tenant with clear payment | ||||||
16 | instructions at least 15 days before any rent payment is due. | ||||||
17 | (765 ILCS 745/6.7 new) | ||||||
18 | Sec. 6.7. Department of Public Health violations. | ||||||
19 | (a) A park owner shall provide notice of: | ||||||
20 | (1) any violations that have been cited by the Illinois | ||||||
21 | Department of Public Health or by a local department of | ||||||
22 | public health and that have not been rectified within the | ||||||
23 | time period allotted by the citing authority; and | ||||||
24 | (2) any ongoing enforcement actions against the park. | ||||||
25 | (b) The notice required by this Section shall be posted in |
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1 | the office of the custodian of the park and on the park's | ||||||
2 | Internet website if the park has an Internet website.
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3 | (765 ILCS 745/12) (from Ch. 80, par. 212)
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4 | Sec. 12. Lease prohibitions. No lease hereafter executed or | ||||||
5 | currently
existing between a park owner and tenant in a mobile | ||||||
6 | home park in this State
shall contain any provision:
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7 | (a) Permitting the park owner to charge a penalty fee for | ||||||
8 | late payment
of rent without allowing a tenant a minimum of 5 | ||||||
9 | days beyond the date the
rent is due in which to remit such | ||||||
10 | payment;
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11 | (b) Permitting the park owner to charge an amount in excess | ||||||
12 | of one month's
rent as a security deposit;
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13 | (c) Requiring the tenant to pay any fees not specified in | ||||||
14 | the lease;
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15 | (d) Permitting the park owner to transfer, or move, a | ||||||
16 | mobile home to a
different lot, including a different lot in | ||||||
17 | the same mobile home park,
during the term of the lease ; .
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18 | (e) Waiving the tenant's right to a trial by jury. | ||||||
19 | (Source: P.A. 85-607.)
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20 | (765 ILCS 745/18) (from Ch. 80, par. 218)
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21 | Sec. 18. Security deposit; Interest.
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22 | (a) If the lease requires
the tenant to provide
any deposit | ||||||
23 | with the park owner for the term of the lease, or any part | ||||||
24 | thereof,
said deposit shall be considered a Security Deposit. |
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1 | Security Deposits
shall be returned in full to the tenant, | ||||||
2 | provided that the tenant has paid
all rent due in full for the | ||||||
3 | term of the lease and has caused no actual
damage to the | ||||||
4 | premises.
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5 | The park owner shall furnish the tenant, within 15 days | ||||||
6 | after termination
or expiration of the lease, an itemized list | ||||||
7 | of the damages incurred upon
the premises and the estimated | ||||||
8 | cost for the repair of each item.
The tenant's failure to | ||||||
9 | object to the itemized list within 15 days shall
constitute an | ||||||
10 | agreement upon the amount of damages specified therein. The
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11 | park owner's failure to furnish such itemized list of damages | ||||||
12 | shall constitute
an agreement that no damages have been | ||||||
13 | incurred
upon the premises and the entire security deposit | ||||||
14 | shall become immediately
due and owing to the tenant.
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15 | The tenant's failure to furnish the park owner a forwarding | ||||||
16 | address shall
excuse the park owner from furnishing the list | ||||||
17 | required by this Section.
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18 | (b) A park owner of any park regularly containing 25 or | ||||||
19 | more mobile
homes shall pay interest to
the tenant, on any | ||||||
20 | deposit held by the park owner, computed from the date
of the | ||||||
21 | deposit
at a rate equal to the interest paid by the largest | ||||||
22 | commercial bank,
as measured by total assets, having its main | ||||||
23 | banking premises in this State
on minimum deposit passbook | ||||||
24 | savings accounts as of December 31 of the preceding
year on any | ||||||
25 | such deposit held by the
park owner for more than 6 months.
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26 | However, in the event that any portion of the amount deposited |
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1 | is
utilized during the period for which it is deposited in | ||||||
2 | order to compensate
the owner for non-payment of rent or to | ||||||
3 | make a good faith reimbursement to
the owner for damage caused | ||||||
4 | by the tenant, the principal on which the
interest accrues may | ||||||
5 | be recomputed to reflect the reduction for the period
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6 | commencing on the first day of the calendar month following the | ||||||
7 | reduction.
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8 | The park owner shall, within 30 days after the end of
each | ||||||
9 | 12-month period, pay to the tenant any interest owed under this
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10 | Section in cash, provided, however, that the amount owed may be | ||||||
11 | applied to
rent due if the owner and tenant agree thereto.
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12 | A park owner who willfully fails or refuses to pay the | ||||||
13 | interest required
by this Act shall, upon a finding by a | ||||||
14 | circuit court that he willfully
failed or refused to pay, be | ||||||
15 | liable for an amount equal to the amount of
the security | ||||||
16 | deposit, together with court costs and a reasonable attorney's
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17 | fee. | ||||||
18 | (c) A park owner shall hold in trust all security deposits | ||||||
19 | received from a tenant in a federally insured interest-bearing | ||||||
20 | account in a bank, savings and loan association, or other | ||||||
21 | financial institution located in this State. A security deposit | ||||||
22 | and the interest due thereon is the property of the tenant | ||||||
23 | until the deposit is returned to the tenant or used to | ||||||
24 | compensate the owner in accordance with this Section, shall not | ||||||
25 | be commingled with the assets of the owner, and shall not be | ||||||
26 | subject to the claims of any creditor of the owner or any party |
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1 | claiming an interest in the deposit through the owner, | ||||||
2 | including a foreclosing mortgagee or trustee in bankruptcy.
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3 | (Source: P.A. 88-643, eff. 1-1-95.)
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4 | (765 ILCS 745/21) (from Ch. 80, par. 221)
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5 | Sec. 21. Remedies, Tenants. If the park owner fails to
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6 | substantially conform to the lease agreement or fails to | ||||||
7 | substantially
comply with any code, statute, ordinance or | ||||||
8 | regulation governing the
operation of a mobile home park or the | ||||||
9 | maintenance of the premises, the
tenant may, on written notice | ||||||
10 | to the park owner, terminate the lease and
vacate the premises | ||||||
11 | at any time during the first 30 days of occupancy.
After the | ||||||
12 | expiration of said 30 days the tenant may terminate the lease
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13 | only if he has remained in possession in reliance upon the park | ||||||
14 | owner's
written promise to correct all or any part of the | ||||||
15 | condition which would justify
termination by the tenant under | ||||||
16 | this Section.
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17 | Any condition which deprives the tenant of substantial | ||||||
18 | benefit and
enjoyment which the park owner shall fail to remedy | ||||||
19 | within 30 days after
having received notice in writing of such | ||||||
20 | condition shall constitute
grounds for the tenant to terminate | ||||||
21 | the lease and vacate the premises.
No such notice shall be | ||||||
22 | required where the condition renders the mobile
home | ||||||
23 | uninhabitable or poses an imminent threat to the health, | ||||||
24 | welfare
and safety of any occupant.
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25 | If such condition was proximately caused by the willful or |
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1 | negligent
act or omission of the park owner, the tenant may | ||||||
2 | recover any damages
sustained as a result of the condition | ||||||
3 | including, but not limited to,
reasonable expenditures | ||||||
4 | necessary to obtain adequate substitute housing
while the | ||||||
5 | mobile home is uninhabitable.
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6 | The tenant may sue to enforce all Sections of this Act and | ||||||
7 | the court
may award damages or grant any injunctive or other | ||||||
8 | relief. | ||||||
9 | The court shall award reasonable attorney's fees and costs | ||||||
10 | to a prevailing tenant. The parties have the right to a trial | ||||||
11 | by jury on any claims seeking damages.
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12 | (Source: P.A. 81-1509.)".
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