Full Text of HB5584 103rd General Assembly
HB5584 103RD GENERAL ASSEMBLY | | | 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. |
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 1. This Act may be referred to as the Manufactured | 5 | | Housing Modernization Act of 2024. | 6 | | Section 5. The Mobile Home Landlord and Tenant Rights Act | 7 | | is amended by changing Section 3 and by adding Sections 25.1, | 8 | | 25.2, 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, | 11 | | all terms in this Act shall be construed to have their | 12 | | ordinarily accepted meanings or such meaning as the context | 13 | | therein requires. | 14 | | (a) "Person" means any legal entity, including but not | 15 | | limited to, an individual, firm, partnership, association, | 16 | | trust, joint stock company, corporation or successor of any of | 17 | | the foregoing. | 18 | | (b) "Manufactured home" means a factory-assembled, | 19 | | completely integrated structure designed for permanent | 20 | | habitation, with a permanent chassis, and so constructed as to | 21 | | permit its transport, on wheels temporarily or permanently | 22 | | attached to its frame, and is a movable or portable unit that |
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| 1 | | is (i) 8 body feet or more in width, (ii) 40 body feet or more | 2 | | in length, and (iii) 320 or more square feet, constructed to be | 3 | | towed on its own chassis (comprised of frame and wheels) from | 4 | | the place of its construction to the location, or subsequent | 5 | | locations, at which it is connected to utilities for | 6 | | year-round occupancy for use as a permanent habitation, and | 7 | | designed and situated so as to permit its occupancy as a | 8 | | dwelling place for one or more persons, and specifically | 9 | | includes a "manufactured home" as defined in subdivision (53) | 10 | | of Section 9-102 of the Uniform Commercial Code. The term | 11 | | shall include units containing parts that may be folded, | 12 | | collapsed, or telescoped when being towed and that may be | 13 | | expected to provide additional cubic capacity, and that are | 14 | | designed to be joined into one integral unit capable of being | 15 | | separated again into the components for repeated towing. The | 16 | | term excludes campers and recreational vehicles. The words | 17 | | "mobile home" and "manufactured home" are synonymous for the | 18 | | purposes of this Act. | 19 | | (c) "Mobile Home Park" or "Park" means a tract of land or 2 | 20 | | contiguous tracts of land that contain sites with the | 21 | | necessary utilities for 5 or more mobile homes or manufactured | 22 | | homes. A mobile home park may be operated either free of charge | 23 | | or for revenue purposes. | 24 | | (d) "Park Owner" means the owner of a mobile home park and | 25 | | any person authorized to exercise any aspect of the management | 26 | | of the premises, including any person who directly or |
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| 1 | | indirectly receives rents and has no obligation to deliver the | 2 | | whole of such receipts to another person. | 3 | | (e) "Tenant" means any person who occupies a mobile home | 4 | | rental unit for dwelling purposes or a lot on which he parks a | 5 | | mobile home for an agreed upon consideration. | 6 | | (f) "Rent" means any money or other consideration given | 7 | | for the right of use, possession and occupancy of property, be | 8 | | it a lot, a mobile home, or both. | 9 | | (g) "Master antenna television service" means any and all | 10 | | services provided by or through the facilities of any closed | 11 | | circuit coaxial cable communication system, or any microwave | 12 | | or similar transmission services other than a community | 13 | | antenna television system as defined in Section 11-42-11 of | 14 | | the Illinois Municipal Code. | 15 | | (h) "Authority having jurisdiction" means the Illinois | 16 | | Department of Public Health or a unit of local government | 17 | | specifically authorized by statute, rule, or ordinance to | 18 | | enforce this Act or any other statute, rule, or ordinance | 19 | | applicable to the mobile home park or manufactured home | 20 | | community. | 21 | | (i) "Managing agent" means any person or entity | 22 | | responsible for the operation, management, or maintenance of a | 23 | | mobile home park or manufactured home community. | 24 | | (j) "Homeowners organization" means an incorporated or | 25 | | unincorporated organization, including a cooperative housing | 26 | | corporation that: (i) represents the interests of the tenants |
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| 1 | | in mobile home park; (ii) is open to all tenants residing in | 2 | | the park; (iii) is controlled by the members of the | 3 | | organization; and (iv) is comprised of tenants who lease or | 4 | | rent 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; | 6 | | 99-78, 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 | 10 | | for a change in the land use of a park, the owner shall submit, | 11 | | as part of the application, a relocation plan for park tenants | 12 | | who will be dislocated as a result of the change. | 13 | | (b) If a mobile home park owner does not submit a | 14 | | relocation plan for the park tenants or does not comply with | 15 | | the terms of an approved plan, the mobile home park owner is in | 16 | | default of the plan and the application for change of land use | 17 | | submitted under subsection (a) of this Section may not be | 18 | | approved 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, | 15 | | good faith inquiry to obtain the information required under | 16 | | subsection (c) and the information in the relocation plan is | 17 | | based on the owner's reasonable, good faith inquiry, the owner | 18 | | shall not incur any liability and may not be estopped from | 19 | | obtaining possession of the premises because of a failure to | 20 | | provide accurate information in the relocation plan. | 21 | | (e) A relocation plan may not require, as a condition of | 22 | | approval by the authority having jurisdiction of the plan or | 23 | | the change in land use submitted under subsection (a) of this | 24 | | Section, 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, | 11 | | the owner is not required to pay relocation assistance after | 12 | | the date the notice of rescission is sent to the tenants. | 13 | | (g) A park owner is not required to pay relocation | 14 | | assistance to any potential tenant who, after receiving | 15 | | written notice of the application for change in land use or | 16 | | written notice of park closure, signs an agreement to rent | 17 | | premises in the park. | 18 | | (h) If a mobile home park with more than 10 sites is | 19 | | closed, the relocation assistance paid to each household shall | 20 | | equal the amount of rent for the premises, excluding taxes and | 21 | | utilities, paid for the 12 months immediately preceding the | 22 | | date the tenant vacates the premises. | 23 | | (h-5) The relocation assistance shall be paid in the | 24 | | following 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 | 9 | | by removing the mobile home from the premises on or before the | 10 | | date specified in the tenant's notice of intention to vacate, | 11 | | the tenant shall forfeit the balance of any relocation | 12 | | assistance due unless the park owner agrees in writing to a | 13 | | different date. | 14 | | (j) The local governing body of the county or municipal | 15 | | corporation in which a mobile home park is located may provide | 16 | | additional relocation assistance to tenants. | 17 | | (k) A mobile home park owner is not responsible for any | 18 | | payments 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 | 22 | | substantially different offer to sell or to purchase a mobile | 23 | | home park. | 24 | | (b) This Act does not apply to the potential sale of a | 25 | | mobile 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, | 12 | | acceptance of that offer shall be conditioned on the purchaser | 13 | | filing an affidavit, recorded in the land records in the | 14 | | county 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 | 22 | | accordance with subsection (a) of this Section, acceptance by | 23 | | the park owner of the offer to purchase the park shall be | 24 | | conditioned 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 | 11 | | Section 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 | 18 | | purchase the park. | 19 | | (a) On notice of the intent to sell a mobile home park in | 20 | | accordance with Section 25.3 of this Act, a homeowners | 21 | | organization 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 | 9 | | intent to purchase the mobile home park and the proposed | 10 | | agreement required under subsection (a) of this Section to the | 11 | | park owner by registered or certified mail. | 12 | | (c) If the homeowner organization submits a proposed | 13 | | agreement to purchase the mobile home park in accordance | 14 | | within the 60-day period identified in this Section, the park | 15 | | owner shall consider the offer in good faith, which shall | 16 | | include a duty not to act to scuttle the proposed agreement, | 17 | | not to arbitrarily or capriciously refuse to proceed with | 18 | | negotiations, and not to engage in misconduct or dishonesty in | 19 | | the negotiations. | 20 | | (c-5) After the expiration of the 60 days identified in | 21 | | this Section, a park owner may not be required to consider | 22 | | additional offers from the homeowners organization. | 23 | | (d) If the mobile home park owner and the homeowners | 24 | | organization enter into an agreement for the sale of the | 25 | | mobile home park, unless the parties agree to an alternative | 26 | | period of time, the homeowners organization shall have not |
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| 1 | | more than 105 days after the date of the agreement to obtain | 2 | | financing and close on the purchase. | 3 | | (e) If the homeowners organization does not obtain | 4 | | financing for the purchase or the parties fail to close on the | 5 | | purchase within the time period prescribed in subsection (d) | 6 | | of this Section, the park owner has complied with the owner's | 7 | | obligations under this Section. | 8 | | (f) A homeowners organization may assign its rights under | 9 | | this Act to a local government, housing authority, nonprofit | 10 | | with expertise relating to housing, or the State or an agency | 11 | | of the State, for the purpose of continuing the use of the | 12 | | property as a mobile home park that will provide affordable | 13 | | housing. | 14 | | (g) The Illinois Housing Development Authority shall | 15 | | maintain on its website a list of organizations and county | 16 | | housing agencies available to assist tenants with financing | 17 | | for 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 | 20 | | affidavit under Section 25.2 of this Act or a purchaser who | 21 | | files an affidavit as required under Section 25.3 of this Act | 22 | | shall, 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 | 5 | | requirements of Sections 25.1 and 25.5 of this Act, the park | 6 | | owner shall be liable to the homeowners organization in the | 7 | | amount of $10,000. | 8 | | (b) A purchaser who files an affidavit as required under | 9 | | Section 25.3 | | | of this Act is liable to the homeowners | 10 | | organization 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. |
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