Rep. Martin J. Moylan
Filed: 3/27/2014
 
 


 




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1
AMENDMENT TO HOUSE BILL 4123




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 
14writing.

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 
10proceeding.
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 
10payment;

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 
4premises.

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 
7reduction.

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

17fee.
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 
8relief.
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.)".