Bill Text: IL SB2935 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Mobile Home Landlord and Tenant Rights Act. Requires a mobile home park owner to provide written notice to the officers of the homeowners' association if the park is offered for sale including in the notice the price and terms and conditions of the sale. Provides that the mobile home owners, through their association, have the right to purchase the park if the association meets the terms of the contract within 60 days of the notice. Provides that if a contract has not been executed within that 60-day period, the park owner has no further obligations under this Act unless the owner thereafter offers the park for sale at a materially lower price than the price specified in the notice. Defines "materially lower price" as 20% or more lower than the initial offer of sale. Provides that the homeowners have 10 days to meet the terms of this lower offer. Makes a number of exemptions to this requirement. Authorizes the park owner to record in the county in which the park is located an affidavit that the owner has complied with the Act's requirements. Requires that if the homeowners wish to exercise the rights under this Act, they must form an association that must be a corporation or a not-for-profit corporation with the written consent of two-thirds of all of the mobile home owners. Makes requirements for matters to be included in the homeowners' association's articles of incorporation, bylaws, and power and duties. Makes other changes.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-01 - Placed on Calendar 2nd Reading - Short Debate [SB2935 Detail]

Download: Illinois-2023-SB2935-Engrossed.html

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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 adding Sections 6.25, 6.26, 6.27, 6.28, 6.29,
6.30, and 6.31 as follows:
(765 ILCS 745/6.25 new)
Sec. 6.25. Sale of mobile home parks; right of first
refusal.
(a) If a mobile home park owner offers a mobile home park
for sale, the owner shall provide written notice to the
officers of the homeowners' association created pursuant to
Section 6.27 of the offer stating the price and the terms and
conditions of sale.
(b) The mobile home owners, by and through a homeowners'
association as defined in Section 6.27, shall have the right
to purchase the park provided the home owners and residents
meet the price and terms and conditions of the mobile home park
owner by executing a contract with the park owner within 60
days, unless agreed to otherwise, from the date of mailing of
the notice and provided they have complied with Sections 6.27
through 6.31. If a contract between the park owner and the
association is not executed within such 60-day period, then,

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unless the park owner thereafter elects to offer the park at a
price materially lower than the price specified in the notice
provided to the officers of the homeowners' association and
residents, as the case may be, the park owner has no further
obligations under this subsection. For purposes of this
Section, a materially lower price shall be a price that is 20%
or more lower than the price specified in the notice to the
officers of the homeowners' association.
(c) If the park owner thereafter elects to offer the park
at a price materially lower than the price specified in the
notice, the homeowners, by and through the association, will
have an additional 10 days to meet the price and terms and
conditions of the park owner by executing a contract.
(d) If, within 60 days, plus any additional 10-day period,
from the mailing of the notice required in this Section, no
contract for sale signed by the association and the park owner
has been reached, the right provided in this Section to
purchase the park shall be void and of no further force and
effect.
(e) Notices required by this Section shall be in writing
and shall be delivered by placing the notice in the United
States mail addressed to the officers of the homeowners'
association. Each notice shall be deemed given upon the
deposit of the notice in the United States mail.
(f) As used in this Section, "offer" means any
solicitation made by the park owner to the general public.

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(g) This Section does not apply to:
(1) Any sale or transfer to a person who would be
included within the table of descent and distribution if
the park owner were to die intestate.
(2) Any transfer by gift, devise, or operation of law.
(3) Any transfer by a corporation or entity to an
affiliate. As used herein, "affiliate" means any
shareholder of the transferring corporation or entity; any
corporation or entity owned or controlled, directly or
indirectly, by any shareholder of the transferring
corporation; or any other corporation or entity owned or
controlled, directly or indirectly, by any shareholder of
the transferring corporation or entity.
(4) Any transfer by a partnership to any of its
partners or by an individual or group of individuals to a
partnership.
(5) Any conveyance of an interest in all or a portion
of a mobile home park incidental to the financing of such
mobile home park.
(6) Any conveyance resulting from the foreclosure of a
mortgage, deed of trust, or other instrument encumbering a
mobile home park or any deed given in lieu of foreclosure.
(7) Any sale or transfer between or among joint
tenants or tenants in common owning a mobile home park.
(8) Any exchange of a mobile home park for other real
property, whether or not the exchange also involves the

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payment of cash or other boot.
(9) The purchase of a mobile home park by a
governmental entity under its powers of eminent domain.
(10) The sale of any mobile home park as part of a
portfolio transaction. For purposes of this provision,
"portfolio transaction" means a sale of 2 or more mobile
home parks, other multifamily buildings, units or
properties of any type, RV parks in one transaction to one
buyer, or multiple related buyers.
(765 ILCS 745/6.26 new)
Sec. 6.26. Affidavit of compliance with statutory
requirements.
(a) A park owner may at any time record, in the official
real estate records of the county or jurisdiction where a
mobile home park is located, an affidavit in which the park
owner certifies that: (i) with reference to an offer by the
park owner for the sale of the park, the park owner has
complied with the provisions of Section 6.25; (ii)
notwithstanding the park owner's compliance with the
provisions of Section 6.25, no contract has been executed for
the sale of the park between the park owner and the park
homeowners' association; (iii) the provisions of Section 6.25
are inapplicable to a particular sale or transfer of the park
by the park owner and compliance with Section 6.25 is not
required; or (iv) a particular sale or transfer of the park is

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exempted from the provisions of this Section. Any party
acquiring an interest in a mobile home park and any and all
title insurance companies and attorneys preparing, furnishing,
or examining any evidence of title have the absolute right to
rely on the truth and accuracy of all statements appearing in
the affidavit and are under no obligation to inquire further
as to any matter or fact relating to the park owner's
compliance with the provisions of Section 6.25.
(b) It is the purpose and intention of this Section to
preserve the marketability of title to mobile home parks, and,
accordingly, the provisions of this Section shall be liberally
construed in order that all persons may rely on the record
title to mobile home parks.
(765 ILCS 745/6.27 new)
Sec. 6.27. Homeowners' associations. In order to exercise
the rights of a homeowners' association as provided in this
Act, the mobile home owners shall form an association in
compliance with this Section and Sections 6.28, 6.29, and
6.30, shall be a corporation or not-for-profit corporation and
of which not less than two-thirds of all of the mobile home
owners within the park shall have consented, in writing, to
become members or shareholders. Upon incorporation of the
association, all consenting mobile home owners in the park may
become members or shareholders. "Member" or "shareholder"
means a mobile homeowner who consents to be bound by the

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articles of incorporation, bylaws, and policies of the
incorporated homeowners' association. The association may not
have a member or shareholder who is not a bona fide owner of a
mobile home located in the park. Upon incorporation and
service of the notice described in Section 6.28, the
association shall become the representative of all the mobile
home owners in all matters relating to this Act, regardless of
whether the homeowner is a member of the association.
(765 ILCS 745/6.28 new)
Sec. 6.28. Incorporation; notification of park owner.
(a) Upon receipt of its certificate of incorporation, the
homeowners' association shall notify the park owner in writing
of the incorporation and shall advise the park owner of the
names and addresses of the officers of the homeowners'
association by personal delivery upon the park owner's
representative as designated in the lease or by certified
mail, return receipt requested. Thereafter, the homeowners'
association shall notify the park owner in writing by
certified mail, return receipt requested, of any change of
names and addresses of its president or registered agent. Upon
election or appointment of new officers or board members, the
homeowners' association shall notify the park owner in writing
by certified mail, return receipt requested, of the names and
addresses of the new officers or board members.
(b) Upon written request by the homeowners' association,

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the park owner shall notify the homeowners' association by
certified mail, return receipt requested, of the name and
address of the park owner, the park owner's agent for service
of process, and the legal description of the park. Thereafter,
in the event of a change in the name or address of the park
owner or the park owner's agent for service of process, the
park owner shall notify in writing the president or registered
agent of the homeowners' association of such change by
certified mail, return receipt requested.
(c) The homeowners' association shall file a notice of its
right to purchase the mobile home park as set forth in Section
6.25. The notice shall contain the name of the association,
the name of the park owner, and the address or legal
description of the park. The notice shall be recorded with the
county clerk in the county where the mobile home park is
located. Within 10 days of the recording, the homeowners'
association shall provide a copy of the recorded notice to the
park owner at the address provided by the park owner by
certified mail, return receipt requested.
(765 ILCS 745/6.29 new)
Sec. 6.29. Articles of incorporation. The articles of
incorporation of a homeowners' association shall provide:
(1) That the association has the power to negotiate
for, acquire, and operate the mobile home park on behalf
of the mobile home owners.

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(2) For the conversion of the mobile home park once
acquired to a condominium, a cooperative, a subdivision
form of ownership, or another type of ownership.
Upon acquisition of the property, the association, by
action of its board of directors, shall be the entity that: (A)
creates a condominium, cooperative, or subdivision; (B) is
responsible for offers of sale or lease; or (C) if the home
owners choose a different form of ownership, the entity that
owns the record interest in the property is responsible for
the operation of property.
(765 ILCS 745/6.30 new)
Sec. 6.30. Bylaws of homeowners' associations.
(a) The directors of the association and the operation
shall be governed by the bylaws.
(b) The bylaws shall provide and, if they do not, shall be
deemed to include, the following provisions:
(1) The form of administration of the association
shall be described, providing for the titles of the
officers and for a board of directors and specifying the
powers, duties, manner of selection and removal, and
compensation, if any, of officers and board members.
Unless otherwise provided in the bylaws, the board of
directors shall be composed of 5 members. The board of
directors shall elect a president, secretary, and
treasurer who shall perform the duties of those offices

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customarily performed by officers of corporations, and
these officers shall serve without compensation and at the
pleasure of the board of directors. The board of directors
may elect and designate other officers and grant them
those duties it deems appropriate.
(2) All other administrative and governance
requirements to be included in the bylaws shall be as set
forth in the Common Interest Community Association Act.
(765 ILCS 745/6.31 new)
Sec. 6.31. Powers and duties of homeowners' association.
(a) An association may contract, sue, or be sued with
respect to the exercise or nonexercise of its powers. For
these purposes, the powers of the association include, but are
not limited to, the maintenance, management, and operation of
the park property.
(b) The powers and duties of an association include those
set forth in this Act and those set forth in the articles of
incorporation and bylaws and any recorded declarations or
restrictions encumbering the park property, if not
inconsistent with this Act.
(c) An association has the power to make, levy, and
collect assessments and to lease, maintain, repair, and
replace the common areas upon purchase of the mobile home
park.
(d) The association shall maintain the following items,

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when applicable, which constitute the official records of the
association:
(1) A copy of the association's articles of
incorporation and each amendment to the articles of
incorporation.
(2) A copy of the bylaws of the association and each
amendment to the bylaws.
(3) A copy of the written rules or policies of the
association and each amendment to the written rules or
policies.
(4) The approved minutes of all meetings of the
members of an association and meetings open for members of
the board of directors, and committees of the board, which
minutes must be retained within this State for at least 5
years.
(5) A current roster of all members and their mailing
addresses and lot identifications. The association shall
also maintain the e-mail addresses and the numbers
designated by members for receiving notice sent by
electronic transmission of those members consenting to
receive notice by electronic transmission. The e-mail
addresses and numbers provided by members to receive
notice by electronic transmission shall be removed from
association records when consent to receive notice by
electronic transmission is revoked. The association is not
liable for an erroneous disclosure of the e-mail address

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or the number for receiving electronic transmission of
notices.
(6) All of the association's insurance policies or
copies thereof, which must be retained within this State
for at least 5 years after the expiration date of the
policy.
(7) A copy of all contracts or agreements to which the
association is a party, including, without limitation, any
written agreements with the park owner, lease, or other
agreements or contracts under which the association or its
members has any obligation or responsibility, which must
be retained within this State for at least 5 years after
the expiration date of the contract or agreement.
(8) The financial and accounting records of the
association, kept according to good accounting practices.
All financial and accounting records must be maintained
within this State for at least 5 years. The financial and
accounting records must include:
(A) Accurate, itemized, and detailed records of
all receipts and expenditures.
(B) A current account and a periodic statement of
the account for each member, designating the name and
current address of each member who is obligated to pay
dues or assessments, the due date and amount of each
assessment or other charge against the member, the
date and amount of each payment on the account, and the

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balance due.
(C) All tax returns, financial statements, and
financial reports of the association.
(D) Any other records that identify, measure,
record, or communicate financial information.
(i) All other written records of the association not
specifically included in this Section that are related to
the operation of the association must be retained within
this State for at least 5 years or at least 5 years after
the expiration date, as applicable.
(e) The official records shall be made available to a
member for inspection or photocopying within 20 business days
after receipt by the board or its designee of a written request
submitted by certified mail, return receipt requested. The
requirements of this Section are satisfied by having a copy of
the official records available for inspection or copying in
the park or, at the option of the association, by making the
records available to a member electronically via the Internet
or by allowing the records to be viewed in electronic format on
a computer screen and printed upon request. If the association
has a photocopy machine available where the records are
maintained, it must provide a member with copies on request
during the inspection if the entire request is no more than 25
pages. An association shall allow a member or his or her
authorized representative to use a portable device, including
a smartphone, tablet, portable scanner, or any other

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technology capable of scanning or taking photographs, to make
an electronic copy of the official records in lieu of the
association's providing the member or his or her authorized
representative with a copy of such records. The association
may not charge a fee to a member or his or her authorized
representative for the use of a portable device.
(1) The failure of an association to provide access to
the records within 20 business days after receipt of a
written request submitted by certified mail, return
receipt requested, creates a rebuttable presumption that
the association willfully failed to comply with this
subsection.
(2) The association may adopt reasonable written rules
governing the frequency, time, location, notice, records
to be inspected, and manner of inspections, but may not
require a member to demonstrate a proper purpose for the
inspection, state a reason for the inspection, or limit a
member's right to inspect records to less than one
business day per month. The association may impose fees to
cover the costs of providing copies of the official
records, including the costs of copying and for personnel
to retrieve and copy the records if the time spent
retrieving and copying the records exceeds 30 minutes and
if the personnel costs do not exceed $20 per hour. The
association shall maintain an adequate number of copies of
the recorded governing documents, to ensure their

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availability to members and prospective members.
Notwithstanding this paragraph, the following records are
not accessible to members or homeowners:
(A) A record protected by the lawyer-client
privilege and a record protected by the work-product
privilege, including, but not limited to, a record
prepared by an association attorney or prepared at the
attorney's express direction that reflects a mental
impression, conclusion, litigation strategy, or legal
theory of the attorney or the association and that was
prepared exclusively for civil or criminal litigation,
for adversarial administrative proceedings, or in
anticipation of such litigation or proceedings until
the conclusion of the litigation or proceedings.
(B) E-mail addresses, telephone numbers, facsimile
numbers, emergency contact information, any addresses
for a homeowner other than as provided for association
notice requirements, and other personal identifying
information of any person, excluding the person's
name, lot designation, mailing address, and property
address. Notwithstanding the restrictions in this
subparagraph, an association may print and distribute
to homeowners a directory containing the name, park
address, and telephone number of each homeowner. A
homeowner may exclude his or her telephone number from
the directory by so requesting in writing to the

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association. The association is not liable for the
disclosure of information that is protected under this
subparagraph if the information is included in an
official record of the association and is voluntarily
provided by a homeowner and not requested by the
association.
(C) An electronic security measure that is used by
the association to safeguard data, including
passwords.
(D) The software and operating system used by the
association that allows the manipulation of data, even
if the homeowner owns a copy of the same software used
by the association. The data is part of the official
records of the association.
(f) An outgoing board or committee member must relinquish
all official records and property of the association in his or
her possession or under his or her control to the incoming
board within 5 days after the election or removal.
(g) An association has the power to purchase lots in the
park and to acquire, hold, lease, mortgage, and convey them.
(h) An association shall use its best efforts to obtain
and maintain adequate insurance to protect the association and
the park property upon purchase of the mobile home park. A copy
of each policy of insurance in effect shall be made available
for inspection by owners at reasonable times.
(i) An association has the authority, without the joinder

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