Bill Text: IL HB4123 | 2013-2014 | 98th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Code of Civil Procedure. Makes a technical change in the short title Section.

Spectrum: Strong Partisan Bill (Democrat 45-3)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1062 [HB4123 Detail]

Download: Illinois-2013-HB4123-Engrossed.html

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HB4123 Engrossed LRB098 15679 RPS 50710 b
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 Sections 6, 6.5, 12, 18, and 21 and by
adding Sections 6.6 and 6.7 as follows:
(765 ILCS 745/6) (from Ch. 80, par. 206)
Sec. 6. Obligation of Park Owner to Offer Written Lease.
Except as provided in this Act, no person shall offer a mobile
home or lot for rent or sale in a mobile home park without
having first exhibited to the prospective tenant or purchaser a
copy of the lease applicable to the respective mobile home
park, unless the prospective tenant waives this right in
writing.
(a) The park owner shall be required, on a date before the
date on which the lease is signed, to offer to each present and
future tenant a written lease for a term of not less than 24
months, unless the prospective tenant waives that right and the
parties agree to a different term subject to existing leases
which shall be continued pursuant to their terms.
(b) Tenants in possession on the effective date of this Act
shall have 30 days after receipt of the offer for a written
lease within which to accept or reject such offer; during which

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period, the rent may not be increased or any other terms and
conditions changed, except as permitted under this Act;
providing that if the tenant has not so elected he shall vacate
within the 30 day period.
(c) The park owner shall notify his tenants in writing not
later than 30 days after the effective date of this Act, that a
written lease shall be available to the tenant and that such
lease is being offered in compliance with and will conform to
the requirements of this Act.
(d) The park owner shall give 90 days' notice of any rent
increase and no rent increase shall go into effect until 90
days after the notice. Upon receipt of the notice of the rent
increase, a tenant shall have 30 days in which to accept or
reject the rent increase. If the tenant rejects the rent
increase, the tenant must notify the park owner of the date on
which the tenant will vacate the premises, which shall be a
date before the effective date of the rent increase.
(e) The park owner may provide for a specified rent
increase between the first and second years of the lease.
(f) The park owner may offer a month-to-month tenancy
agreement option to a tenant not wishing to make a long-term
commitment if the tenant signs a written statement
acknowledging that the park owner offered the tenant a longer
term lease but the tenant chose instead to agree to only a
month-to-month tenancy agreement. If the tenant declines to
sign either a lease or a statement acknowledging that a lease

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was offered, the park owner shall sign and deliver to the
tenant a statement to that effect. Any month-to-month tenancy
agreement must provide a minimum of 90 days' notice to the
tenant before any rent increase is effective.
(g) A prospective tenant who executes a lease pursuant to
this Section may cancel the lease by notifying the park owner
in writing within 3 business days after the prospective
tenant's execution of the lease, unless the prospective tenant
waives in writing this right to cancel the lease or waives this
right by taking possession of the mobile home or the lot. The
park owner shall return any security deposit or rent paid by
the prospective tenant within 10 days after receiving the
written cancellation.
(h) The maximum amount that a park owner may recover as
damages for a tenant's early termination of a lease is the
amount due under the lease, less any offset or mitigation
through a re-lease.
(i) A tenant in possession of a mobile home or lot who is
not subject to a current lease on the effective date of this
amendatory Act of the 95th General Assembly shall be offered a
lease by the park owner within 90 days after the effective date
of this amendatory Act of the 95th General Assembly. Tenants in
possession on the effective date of this amendatory Act of the
95th General Assembly shall have 30 days after receipt of the
offer for a written lease within which to accept or reject the
offer, during which period the rent may not be increased or any

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other terms and conditions changed, except as permitted under
this Act; provided that if the tenant has not so elected he or
she shall vacate within the 30-day period.
(j) A written lease or month-to-month tenancy agreement
under this Section is not terminated solely by:
(1) the filing by or against the park owner of a case
or proceeding under Title 11 of the United States Code;
(2) the entry of a judgment or order against the park
owner or involving the park property in a foreclosure
proceeding brought by a creditor of the park owner; or
(3) the foreclosure of a property tax lien on the park
property or sale of the park property for unpaid property
taxes pursuant to Section 21-75 of the Property Tax Code.
(Source: P.A. 95-383, eff. 1-1-08.)
(765 ILCS 745/6.5)
Sec. 6.5. Disclosure. A park owner must disclose in writing
the following with every lease or sale and upon renewal of a
lease of a mobile home or lot in a mobile home park:
(1) the rent charged for the mobile home or lot in the
past 5 years;
(2) the park owner's responsibilities with respect to
the mobile home or lot;
(3) information regarding any fees imposed in addition
to the base rent;
(4) information regarding late payments;

HB4123 Engrossed - 5 - LRB098 15679 RPS 50710 b
(5) information regarding any privilege tax that is
applicable;
(6) information regarding security deposits, including
the right to the return of security deposits and interest
as provided in Section 18 of this Act; and
(7) information on a 3-year rent increase projection
which includes the 2 years of the lease and the year
immediately following. The basis for such rent increases
may be a fixed amount, a "not to exceed" amount, a formula,
an applicable index, or a combination of these
methodologies as elected by the park owner. These increases
may be in addition to all the non-controllable expenses
including, but not limited to, property taxes, government
assessments, utilities, and insurance; .
(8) the name, address, and telephone number of the
community or park owner and any manager or designated agent
for the manufactured home community or mobile home park;
(9) if the community or park owner has business
headquarters off-site from the manufactured home community
or mobile home park, the name, address, and telephone
number of the community or park owner's business
headquarters;
(10) the nature of the park owner's affiliation, if
any, with the seller of any manufactured home that the
tenant is purchasing for use on the lot that the tenant is
to lease or the entity that is financing the purchase of

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the home; and
(11) information contained in the notice required
under Section 6.7 of this Act.
The park owner must update the written disclosure at least
once per year. The park owner must advise tenants who are
renewing a lease of any changes in the disclosure from any
prior disclosure. Within 10 days after the sale of a
manufactured home community or mobile home park, the purchaser
must provide written notice to each homeowner of the name,
address, and telephone number of the new community or park
owner, the name, address, and telephone number of the community
or park owner's business headquarters, if located off-site from
the manufactured home community or mobile home park, and any
manager or designated agent for the manufactured home community
or mobile home park.
(Source: P.A. 95-383, eff. 1-1-08.)
(765 ILCS 745/6.6 new)
Sec. 6.6. Notice of bankruptcy or foreclosure proceedings.
(a) If a bankruptcy case is commenced by or against a park
owner by the filing of a voluntary or involuntary petition
under Title 11 of the United States Code, if a receiver is
appointed by a court of competent jurisdiction in a case filed
by or against a park owner, or if a foreclosure proceeding is
initiated against the park property by a creditor of the park
owner, the park owner shall provide written notice of the

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commencement of the bankruptcy, receivership, or foreclosure
to the tenant within 30 days of the commencement of the case or
proceeding.
(b) If a trustee in bankruptcy, receiver, or foreclosing
mortgagee contends that rent should be paid by the tenant to
the trustee, receiver, or foreclosing mortgagee rather than to
the park owner, the trustee, receiver, or foreclosing mortgagee
shall provide written notice to the tenant with clear payment
instructions at least 15 days before any rent payment is due.
(765 ILCS 745/6.7 new)
Sec. 6.7. Department of Public Health violations.
(a) A park owner shall provide notice of:
(1) any violations that have been cited by the Illinois
Department of Public Health or by a local department of
public health and that have not been rectified within the
time period allotted by the citing authority; and
(2) any ongoing enforcement actions against the park.
(b) The notice required by this Section shall be posted in
the office of the custodian of the park and on the park's
Internet website if the park has an Internet website.
(765 ILCS 745/12) (from Ch. 80, par. 212)
Sec. 12. Lease prohibitions. No lease hereafter executed or
currently existing between a park owner and tenant in a mobile
home park in this State shall contain any provision:

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(a) Permitting the park owner to charge a penalty fee for
late payment of rent without allowing a tenant a minimum of 5
days beyond the date the rent is due in which to remit such
payment;
(b) Permitting the park owner to charge an amount in excess
of one month's rent as a security deposit;
(c) Requiring the tenant to pay any fees not specified in
the lease;
(d) Permitting the park owner to transfer, or move, a
mobile home to a different lot, including a different lot in
the same mobile home park, during the term of the lease; .
(e) Waiving the tenant's right to a trial by jury.
(Source: P.A. 85-607.)
(765 ILCS 745/18) (from Ch. 80, par. 218)
Sec. 18. Security deposit; Interest.
(a) If the lease requires the tenant to provide any deposit
with the park owner for the term of the lease, or any part
thereof, said deposit shall be considered a Security Deposit.
Security Deposits shall be returned in full to the tenant,
provided that the tenant has paid all rent due in full for the
term of the lease and has caused no actual damage to the
premises.
The park owner shall furnish the tenant, within 15 days
after termination or expiration of the lease, an itemized list
of the damages incurred upon the premises and the estimated

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cost for the repair of each item. The tenant's failure to
object to the itemized list within 15 days shall constitute an
agreement upon the amount of damages specified therein. The
park owner's failure to furnish such itemized list of damages
shall constitute an agreement that no damages have been
incurred upon the premises and the entire security deposit
shall become immediately due and owing to the tenant.
The tenant's failure to furnish the park owner a forwarding
address shall excuse the park owner from furnishing the list
required by this Section.
(b) A park owner of any park regularly containing 25 or
more mobile homes shall pay interest to the tenant, on any
deposit held by the park owner, computed from the date of the
deposit at a rate equal to the interest paid by the largest
commercial bank, as measured by total assets, having its main
banking premises in this State on minimum deposit passbook
savings accounts as of December 31 of the preceding year on any
such deposit held by the park owner for more than 6 months.
However, in the event that any portion of the amount deposited
is utilized during the period for which it is deposited in
order to compensate the owner for non-payment of rent or to
make a good faith reimbursement to the owner for damage caused
by the tenant, the principal on which the interest accrues may
be recomputed to reflect the reduction for the period
commencing on the first day of the calendar month following the
reduction.

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The park owner shall, within 30 days after the end of each
12-month period, pay to the tenant any interest owed under this
Section in cash, provided, however, that the amount owed may be
applied to rent due if the owner and tenant agree thereto.
A park owner who willfully fails or refuses to pay the
interest required by this Act shall, upon a finding by a
circuit court that he willfully failed or refused to pay, be
liable for an amount equal to the amount of the security
deposit, together with court costs and a reasonable attorney's
fee.
(c) A park owner shall hold in trust all security deposits
received from a tenant in a federally insured interest-bearing
account in a bank, savings and loan association, or other
financial institution located in this State. A security deposit
and the interest due thereon is the property of the tenant
until the deposit is returned to the tenant or used to
compensate the owner in accordance with this Section, shall not
be commingled with the assets of the owner, and shall not be
subject to the claims of any creditor of the owner or any party
claiming an interest in the deposit through the owner,
including a foreclosing mortgagee or trustee in bankruptcy.
(Source: P.A. 88-643, eff. 1-1-95.)
(765 ILCS 745/21) (from Ch. 80, par. 221)
Sec. 21. Remedies, Tenants. If the park owner fails to
substantially conform to the lease agreement or fails to

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substantially comply with any code, statute, ordinance or
regulation governing the operation of a mobile home park or the
maintenance of the premises, the tenant may, on written notice
to the park owner, terminate the lease and vacate the premises
at any time during the first 30 days of occupancy. After the
expiration of said 30 days the tenant may terminate the lease
only if he has remained in possession in reliance upon the park
owner's written promise to correct all or any part of the
condition which would justify termination by the tenant under
this Section.
Any condition which deprives the tenant of substantial
benefit and enjoyment which the park owner shall fail to remedy
within 30 days after having received notice in writing of such
condition shall constitute grounds for the tenant to terminate
the lease and vacate the premises. No such notice shall be
required where the condition renders the mobile home
uninhabitable or poses an imminent threat to the health,
welfare and safety of any occupant.
If such condition was proximately caused by the willful or
negligent act or omission of the park owner, the tenant may
recover any damages sustained as a result of the condition
including, but not limited to, reasonable expenditures
necessary to obtain adequate substitute housing while the
mobile home is uninhabitable.
The tenant may sue to enforce all Sections of this Act and
the court may award damages or grant any injunctive or other

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relief.
The court shall award reasonable attorney's fees and costs
to a prevailing tenant. The parties have the right to a trial
by jury on any claims seeking damages.
(Source: P.A. 81-1509.)