SB2935 EngrossedLRB103 38596 JRC 68732 b

1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Mobile Home Landlord and Tenant Rights Act
5is amended by adding Sections 6.25, 6.26, 6.27, 6.28, 6.29,
66.30, and 6.31 as follows:
7    (765 ILCS 745/6.25 new)
8    Sec. 6.25. Sale of mobile home parks; right of first
10    (a) If a mobile home park owner offers a mobile home park
11for sale, the owner shall provide written notice to the
12officers of the homeowners' association created pursuant to
13Section 6.27 of the offer stating the price and the terms and
14conditions of sale.
15    (b) The mobile home owners, by and through a homeowners'
16association as defined in Section 6.27, shall have the right
17to purchase the park provided the home owners and residents
18meet the price and terms and conditions of the mobile home park
19owner by executing a contract with the park owner within 60
20days, unless agreed to otherwise, from the date of mailing of
21the notice and provided they have complied with Sections 6.27
22through 6.31. If a contract between the park owner and the
23association is not executed within such 60-day period, then,



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1unless the park owner thereafter elects to offer the park at a
2price materially lower than the price specified in the notice
3provided to the officers of the homeowners' association and
4residents, as the case may be, the park owner has no further
5obligations under this subsection. For purposes of this
6Section, a materially lower price shall be a price that is 20%
7or more lower than the price specified in the notice to the
8officers of the homeowners' association.
9    (c) If the park owner thereafter elects to offer the park
10at a price materially lower than the price specified in the
11notice, the homeowners, by and through the association, will
12have an additional 10 days to meet the price and terms and
13conditions of the park owner by executing a contract.
14    (d) If, within 60 days, plus any additional 10-day period,
15from the mailing of the notice required in this Section, no
16contract for sale signed by the association and the park owner
17has been reached, the right provided in this Section to
18purchase the park shall be void and of no further force and
20    (e) Notices required by this Section shall be in writing
21and shall be delivered by placing the notice in the United
22States mail addressed to the officers of the homeowners'
23association. Each notice shall be deemed given upon the
24deposit of the notice in the United States mail.
25    (f) As used in this Section, "offer" means any
26solicitation made by the park owner to the general public.



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



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1    payment of cash or other boot.
2        (9) The purchase of a mobile home park by a
3    governmental entity under its powers of eminent domain.
4        (10) The sale of any mobile home park as part of a
5    portfolio transaction. For purposes of this provision,
6    "portfolio transaction" means a sale of 2 or more mobile
7    home parks, other multifamily buildings, units or
8    properties of any type, RV parks in one transaction to one
9    buyer, or multiple related buyers.
10    (765 ILCS 745/6.26 new)
11    Sec. 6.26. Affidavit of compliance with statutory
13    (a) A park owner may at any time record, in the official
14real estate records of the county or jurisdiction where a
15mobile home park is located, an affidavit in which the park
16owner certifies that: (i) with reference to an offer by the
17park owner for the sale of the park, the park owner has
18complied with the provisions of Section 6.25; (ii)
19notwithstanding the park owner's compliance with the
20provisions of Section 6.25, no contract has been executed for
21the sale of the park between the park owner and the park
22homeowners' association; (iii) the provisions of Section 6.25
23are inapplicable to a particular sale or transfer of the park
24by the park owner and compliance with Section 6.25 is not
25required; or (iv) a particular sale or transfer of the park is



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1exempted from the provisions of this Section. Any party
2acquiring an interest in a mobile home park and any and all
3title insurance companies and attorneys preparing, furnishing,
4or examining any evidence of title have the absolute right to
5rely on the truth and accuracy of all statements appearing in
6the affidavit and are under no obligation to inquire further
7as to any matter or fact relating to the park owner's
8compliance with the provisions of Section 6.25.
9    (b) It is the purpose and intention of this Section to
10preserve the marketability of title to mobile home parks, and,
11accordingly, the provisions of this Section shall be liberally
12construed in order that all persons may rely on the record
13title to mobile home parks.
14    (765 ILCS 745/6.27 new)
15    Sec. 6.27. Homeowners' associations. In order to exercise
16the rights of a homeowners' association as provided in this
17Act, the mobile home owners shall form an association in
18compliance with this Section and Sections 6.28, 6.29, and
196.30, shall be a corporation or not-for-profit corporation and
20of which not less than two-thirds of all of the mobile home
21owners within the park shall have consented, in writing, to
22become members or shareholders. Upon incorporation of the
23association, all consenting mobile home owners in the park may
24become members or shareholders. "Member" or "shareholder"
25means a mobile homeowner who consents to be bound by the



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1articles of incorporation, bylaws, and policies of the
2incorporated homeowners' association. The association may not
3have a member or shareholder who is not a bona fide owner of a
4mobile home located in the park. Upon incorporation and
5service of the notice described in Section 6.28, the
6association shall become the representative of all the mobile
7home owners in all matters relating to this Act, regardless of
8whether the homeowner is a member of the association.
9    (765 ILCS 745/6.28 new)
10    Sec. 6.28. Incorporation; notification of park owner.
11    (a) Upon receipt of its certificate of incorporation, the
12homeowners' association shall notify the park owner in writing
13of the incorporation and shall advise the park owner of the
14names and addresses of the officers of the homeowners'
15association by personal delivery upon the park owner's
16representative as designated in the lease or by certified
17mail, return receipt requested. Thereafter, the homeowners'
18association shall notify the park owner in writing by
19certified mail, return receipt requested, of any change of
20names and addresses of its president or registered agent. Upon
21election or appointment of new officers or board members, the
22homeowners' association shall notify the park owner in writing
23by certified mail, return receipt requested, of the names and
24addresses of the new officers or board members.
25    (b) Upon written request by the homeowners' association,



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1the park owner shall notify the homeowners' association by
2certified mail, return receipt requested, of the name and
3address of the park owner, the park owner's agent for service
4of process, and the legal description of the park. Thereafter,
5in the event of a change in the name or address of the park
6owner or the park owner's agent for service of process, the
7park owner shall notify in writing the president or registered
8agent of the homeowners' association of such change by
9certified mail, return receipt requested.
10    (c) The homeowners' association shall file a notice of its
11right to purchase the mobile home park as set forth in Section
126.25. The notice shall contain the name of the association,
13the name of the park owner, and the address or legal
14description of the park. The notice shall be recorded with the
15county clerk in the county where the mobile home park is
16located. Within 10 days of the recording, the homeowners'
17association shall provide a copy of the recorded notice to the
18park owner at the address provided by the park owner by
19certified mail, return receipt requested.
20    (765 ILCS 745/6.29 new)
21    Sec. 6.29. Articles of incorporation. The articles of
22incorporation of a homeowners' association shall provide:
23        (1) That the association has the power to negotiate
24    for, acquire, and operate the mobile home park on behalf
25    of the mobile home owners.



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1        (2) For the conversion of the mobile home park once
2    acquired to a condominium, a cooperative, a subdivision
3    form of ownership, or another type of ownership.
4    Upon acquisition of the property, the association, by
5action of its board of directors, shall be the entity that: (A)
6creates a condominium, cooperative, or subdivision; (B) is
7responsible for offers of sale or lease; or (C) if the home
8owners choose a different form of ownership, the entity that
9owns the record interest in the property is responsible for
10the operation of property.
11    (765 ILCS 745/6.30 new)
12    Sec. 6.30. Bylaws of homeowners' associations.
13    (a) The directors of the association and the operation
14shall be governed by the bylaws.
15    (b) The bylaws shall provide and, if they do not, shall be
16deemed to include, the following provisions:
17        (1) The form of administration of the association
18    shall be described, providing for the titles of the
19    officers and for a board of directors and specifying the
20    powers, duties, manner of selection and removal, and
21    compensation, if any, of officers and board members.
22    Unless otherwise provided in the bylaws, the board of
23    directors shall be composed of 5 members. The board of
24    directors shall elect a president, secretary, and
25    treasurer who shall perform the duties of those offices



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1    customarily performed by officers of corporations, and
2    these officers shall serve without compensation and at the
3    pleasure of the board of directors. The board of directors
4    may elect and designate other officers and grant them
5    those duties it deems appropriate.
6        (2) All other administrative and governance
7    requirements to be included in the bylaws shall be as set
8    forth in the Common Interest Community Association Act.
9    (765 ILCS 745/6.31 new)
10    Sec. 6.31. Powers and duties of homeowners' association.
11    (a) An association may contract, sue, or be sued with
12respect to the exercise or nonexercise of its powers. For
13these purposes, the powers of the association include, but are
14not limited to, the maintenance, management, and operation of
15the park property.
16    (b) The powers and duties of an association include those
17set forth in this Act and those set forth in the articles of
18incorporation and bylaws and any recorded declarations or
19restrictions encumbering the park property, if not
20inconsistent with this Act.
21    (c) An association has the power to make, levy, and
22collect assessments and to lease, maintain, repair, and
23replace the common areas upon purchase of the mobile home
25    (d) The association shall maintain the following items,



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



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



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1        balance due.
2            (C) All tax returns, financial statements, and
3        financial reports of the association.
4            (D) Any other records that identify, measure,
5        record, or communicate financial information.
6        (i) All other written records of the association not
7    specifically included in this Section that are related to
8    the operation of the association must be retained within
9    this State for at least 5 years or at least 5 years after
10    the expiration date, as applicable.
11    (e) The official records shall be made available to a
12member for inspection or photocopying within 20 business days
13after receipt by the board or its designee of a written request
14submitted by certified mail, return receipt requested. The
15requirements of this Section are satisfied by having a copy of
16the official records available for inspection or copying in
17the park or, at the option of the association, by making the
18records available to a member electronically via the Internet
19or by allowing the records to be viewed in electronic format on
20a computer screen and printed upon request. If the association
21has a photocopy machine available where the records are
22maintained, it must provide a member with copies on request
23during the inspection if the entire request is no more than 25
24pages. An association shall allow a member or his or her
25authorized representative to use a portable device, including
26a smartphone, tablet, portable scanner, or any other



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1technology capable of scanning or taking photographs, to make
2an electronic copy of the official records in lieu of the
3association's providing the member or his or her authorized
4representative with a copy of such records. The association
5may not charge a fee to a member or his or her authorized
6representative for the use of a portable device.
7        (1) The failure of an association to provide access to
8    the records within 20 business days after receipt of a
9    written request submitted by certified mail, return
10    receipt requested, creates a rebuttable presumption that
11    the association willfully failed to comply with this
12    subsection.
13        (2) The association may adopt reasonable written rules
14    governing the frequency, time, location, notice, records
15    to be inspected, and manner of inspections, but may not
16    require a member to demonstrate a proper purpose for the
17    inspection, state a reason for the inspection, or limit a
18    member's right to inspect records to less than one
19    business day per month. The association may impose fees to
20    cover the costs of providing copies of the official
21    records, including the costs of copying and for personnel
22    to retrieve and copy the records if the time spent
23    retrieving and copying the records exceeds 30 minutes and
24    if the personnel costs do not exceed $20 per hour. The
25    association shall maintain an adequate number of copies of
26    the recorded governing documents, to ensure their



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



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1        association. The association is not liable for the
2        disclosure of information that is protected under this
3        subparagraph if the information is included in an
4        official record of the association and is voluntarily
5        provided by a homeowner and not requested by the
6        association.
7            (C) An electronic security measure that is used by
8        the association to safeguard data, including
9        passwords.
10            (D) The software and operating system used by the
11        association that allows the manipulation of data, even
12        if the homeowner owns a copy of the same software used
13        by the association. The data is part of the official
14        records of the association.
15    (f) An outgoing board or committee member must relinquish
16all official records and property of the association in his or
17her possession or under his or her control to the incoming
18board within 5 days after the election or removal.
19    (g) An association has the power to purchase lots in the
20park and to acquire, hold, lease, mortgage, and convey them.
21    (h) An association shall use its best efforts to obtain
22and maintain adequate insurance to protect the association and
23the park property upon purchase of the mobile home park. A copy
24of each policy of insurance in effect shall be made available
25for inspection by owners at reasonable times.
26    (i) An association has the authority, without the joinder



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1of any homeowner, to modify, move, or create any easement for
2ingress and egress or for the purpose of utilities if the
3easement constitutes part of or crosses the park property upon
4purchase of the mobile home park. This subsection does not
5authorize the association to modify or move any easement
6created in whole or in part for the use or benefit of anyone
7other than the members or crossing the property of anyone
8other than the members, without his or her consent or approval
9as required by law or the instrument creating the easement.
10Nothing in this subsection affects the rights of ingress or
11egress of any member of the association.