Illinois General Assembly - Full Text of HB4123
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Full Text of HB4123  98th General Assembly


Rep. Martin J. Moylan

Filed: 3/27/2014





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2    AMENDMENT NO. ______. Amend House Bill 4123 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Mobile Home Landlord and Tenant Rights Act
5is amended by changing Section 6, 6.5, 12, 18, and 21 and by
6adding Sections 6.6 and 6.7 as follows:
7    (765 ILCS 745/6)  (from Ch. 80, par. 206)
8    Sec. 6. Obligation of Park Owner to Offer Written Lease.
9Except as provided in this Act, no person shall offer a mobile
10home or lot for rent or sale in a mobile home park without
11having first exhibited to the prospective tenant or purchaser a
12copy of the lease applicable to the respective mobile home
13park, unless the prospective tenant waives this right in
15    (a) The park owner shall be required, on a date before the
16date on which the lease is signed, to offer to each present and



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1future tenant a written lease for a term of not less than 24
2months, unless the prospective tenant waives that right and the
3parties agree to a different term subject to existing leases
4which shall be continued pursuant to their terms.
5    (b) Tenants in possession on the effective date of this Act
6shall have 30 days after receipt of the offer for a written
7lease within which to accept or reject such offer; during which
8period, the rent may not be increased or any other terms and
9conditions changed, except as permitted under this Act;
10providing that if the tenant has not so elected he shall vacate
11within the 30 day period.
12    (c) The park owner shall notify his tenants in writing not
13later than 30 days after the effective date of this Act, that a
14written lease shall be available to the tenant and that such
15lease is being offered in compliance with and will conform to
16the requirements of this Act.
17    (d) The park owner shall give 90 days' notice of any rent
18increase and no rent increase shall go into effect until 90
19days after the notice. Upon receipt of the notice of the rent
20increase, a tenant shall have 30 days in which to accept or
21reject the rent increase. If the tenant rejects the rent
22increase, the tenant must notify the park owner of the date on
23which the tenant will vacate the premises, which shall be a
24date before the effective date of the rent increase.
25    (e) The park owner may provide for a specified rent
26increase 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
2agreement option to a tenant not wishing to make a long-term
3commitment if the tenant signs a written statement
4acknowledging that the park owner offered the tenant a longer
5term lease but the tenant chose instead to agree to only a
6month-to-month tenancy agreement. If the tenant declines to
7sign either a lease or a statement acknowledging that a lease
8was offered, the park owner shall sign and deliver to the
9tenant a statement to that effect. Any month-to-month tenancy
10agreement must provide a minimum of 90 days' notice to the
11tenant before any rent increase is effective.
12    (g) A prospective tenant who executes a lease pursuant to
13this Section may cancel the lease by notifying the park owner
14in writing within 3 business days after the prospective
15tenant's execution of the lease, unless the prospective tenant
16waives in writing this right to cancel the lease or waives this
17right by taking possession of the mobile home or the lot. The
18park owner shall return any security deposit or rent paid by
19the prospective tenant within 10 days after receiving the
20written cancellation.
21    (h) The maximum amount that a park owner may recover as
22damages for a tenant's early termination of a lease is the
23amount due under the lease, less any offset or mitigation
24through a re-lease.
25    (i) A tenant in possession of a mobile home or lot who is
26not subject to a current lease on the effective date of this



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1amendatory Act of the 95th General Assembly shall be offered a
2lease by the park owner within 90 days after the effective date
3of this amendatory Act of the 95th General Assembly. Tenants in
4possession on the effective date of this amendatory Act of the
595th General Assembly shall have 30 days after receipt of the
6offer for a written lease within which to accept or reject the
7offer, during which period the rent may not be increased or any
8other terms and conditions changed, except as permitted under
9this Act; provided that if the tenant has not so elected he or
10she shall vacate within the 30-day period.
11    (j) A written lease or month-to-month tenancy agreement
12under 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.)
22    (765 ILCS 745/6.5)
23    Sec. 6.5. Disclosure. A park owner must disclose in writing
24the following with every lease or sale and upon renewal of a
25lease 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
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
12once per year. The park owner must advise tenants who are
13renewing a lease of any changes in the disclosure from any
14prior disclosure. Within 10 days after the sale of a
15manufactured home community or mobile home park, the purchaser
16must provide written notice to each homeowner of the name,
17address, and telephone number of the new community or park
18owner, the name, address, and telephone number of the community
19or park owner's business headquarters, if located off-site from
20the manufactured home community or mobile home park, and any
21manager or designated agent for the manufactured home community
22or mobile home park.
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
2owner by the filing of a voluntary or involuntary petition
3under Title 11 of the United States Code, if a receiver is
4appointed by a court of competent jurisdiction in a case filed
5by or against a park owner, or if a foreclosure proceeding is
6initiated against the park property by a creditor of the park
7owner, the park owner shall provide written notice of the
8commencement of the bankruptcy, receivership, or foreclosure
9to the tenant within 30 days of the commencement of the case or
11    (b) If a trustee in bankruptcy, receiver, or foreclosing
12mortgagee contends that rent should be paid by the tenant to
13the trustee, receiver, or foreclosing mortgagee rather than to
14the park owner, the trustee, receiver, or foreclosing mortgagee
15shall provide written notice to the tenant with clear payment
16instructions 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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1the office of the custodian of the park and on the park's
2Internet website if the park has an Internet website.
3    (765 ILCS 745/12)  (from Ch. 80, par. 212)
4    Sec. 12. Lease prohibitions. No lease hereafter executed or
5currently existing between a park owner and tenant in a mobile
6home park in this State shall contain any provision:
7    (a) Permitting the park owner to charge a penalty fee for
8late payment of rent without allowing a tenant a minimum of 5
9days beyond the date the rent is due in which to remit such
11    (b) Permitting the park owner to charge an amount in excess
12of one month's rent as a security deposit;
13    (c) Requiring the tenant to pay any fees not specified in
14the lease;
15    (d) Permitting the park owner to transfer, or move, a
16mobile home to a different lot, including a different lot in
17the same mobile home park, during the term of the lease; .
18    (e) Waiving the tenant's right to a trial by jury.
19(Source: P.A. 85-607.)
20    (765 ILCS 745/18)  (from Ch. 80, par. 218)
21    Sec. 18. Security deposit; Interest.
22    (a) If the lease requires the tenant to provide any deposit
23with the park owner for the term of the lease, or any part
24thereof, said deposit shall be considered a Security Deposit.



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1Security Deposits shall be returned in full to the tenant,
2provided that the tenant has paid all rent due in full for the
3term of the lease and has caused no actual damage to the
5    The park owner shall furnish the tenant, within 15 days
6after termination or expiration of the lease, an itemized list
7of the damages incurred upon the premises and the estimated
8cost for the repair of each item. The tenant's failure to
9object to the itemized list within 15 days shall constitute an
10agreement upon the amount of damages specified therein. The
11park owner's failure to furnish such itemized list of damages
12shall constitute an agreement that no damages have been
13incurred upon the premises and the entire security deposit
14shall become immediately due and owing to the tenant.
15    The tenant's failure to furnish the park owner a forwarding
16address shall excuse the park owner from furnishing the list
17required by this Section.
18    (b) A park owner of any park regularly containing 25 or
19more mobile homes shall pay interest to the tenant, on any
20deposit held by the park owner, computed from the date of the
21deposit at a rate equal to the interest paid by the largest
22commercial bank, as measured by total assets, having its main
23banking premises in this State on minimum deposit passbook
24savings accounts as of December 31 of the preceding year on any
25such deposit held by the park owner for more than 6 months.
26However, in the event that any portion of the amount deposited



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1is utilized during the period for which it is deposited in
2order to compensate the owner for non-payment of rent or to
3make a good faith reimbursement to the owner for damage caused
4by the tenant, the principal on which the interest accrues may
5be recomputed to reflect the reduction for the period
6commencing on the first day of the calendar month following the
8    The park owner shall, within 30 days after the end of each
912-month period, pay to the tenant any interest owed under this
10Section in cash, provided, however, that the amount owed may be
11applied to rent due if the owner and tenant agree thereto.
12    A park owner who willfully fails or refuses to pay the
13interest required by this Act shall, upon a finding by a
14circuit court that he willfully failed or refused to pay, be
15liable for an amount equal to the amount of the security
16deposit, together with court costs and a reasonable attorney's
18    (c) A park owner shall hold in trust all security deposits
19received from a tenant in a federally insured interest-bearing
20account in a bank, savings and loan association, or other
21financial institution located in this State. A security deposit
22and the interest due thereon is the property of the tenant
23until the deposit is returned to the tenant or used to
24compensate the owner in accordance with this Section, shall not
25be commingled with the assets of the owner, and shall not be
26subject to the claims of any creditor of the owner or any party



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1claiming an interest in the deposit through the owner,
2including a foreclosing mortgagee or trustee in bankruptcy.
3(Source: P.A. 88-643, eff. 1-1-95.)
4    (765 ILCS 745/21)  (from Ch. 80, par. 221)
5    Sec. 21. Remedies, Tenants. If the park owner fails to
6substantially conform to the lease agreement or fails to
7substantially comply with any code, statute, ordinance or
8regulation governing the operation of a mobile home park or the
9maintenance of the premises, the tenant may, on written notice
10to the park owner, terminate the lease and vacate the premises
11at any time during the first 30 days of occupancy. After the
12expiration of said 30 days the tenant may terminate the lease
13only if he has remained in possession in reliance upon the park
14owner's written promise to correct all or any part of the
15condition which would justify termination by the tenant under
16this Section.
17    Any condition which deprives the tenant of substantial
18benefit and enjoyment which the park owner shall fail to remedy
19within 30 days after having received notice in writing of such
20condition shall constitute grounds for the tenant to terminate
21the lease and vacate the premises. No such notice shall be
22required where the condition renders the mobile home
23uninhabitable or poses an imminent threat to the health,
24welfare and safety of any occupant.
25    If such condition was proximately caused by the willful or



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1negligent act or omission of the park owner, the tenant may
2recover any damages sustained as a result of the condition
3including, but not limited to, reasonable expenditures
4necessary to obtain adequate substitute housing while the
5mobile home is uninhabitable.
6    The tenant may sue to enforce all Sections of this Act and
7the court may award damages or grant any injunctive or other
9    The court shall award reasonable attorney's fees and costs
10to a prevailing tenant. The parties have the right to a trial
11by jury on any claims seeking damages.
12(Source: P.A. 81-1509.)".