Sen. Steve Stadelman

Filed: 3/8/2024





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2    AMENDMENT NO. ______. Amend Senate Bill 2935 by replacing
3everything after the enacting clause with the following:
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



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1to purchase the park provided the home owners and residents
2meet the price and terms and conditions of the mobile home park
3owner by executing a contract with the park owner within 60
4days, unless agreed to otherwise, from the date of mailing of
5the notice and provided they have complied with Sections 6.27
6through 6.31. If a contract between the park owner and the
7association is not executed within such 60-day period, then,
8unless the park owner thereafter elects to offer the park at a
9price materially lower than the price specified in the notice
10provided to the officers of the homeowners' association and
11residents, as the case may be, the park owner has no further
12obligations under this subsection. For purposes of this
13Section, a materially lower price shall be a price that is 20%
14or more lower than the price specified in the notice to the
15officers of the homeowners' association.
16    (c) If the park owner thereafter elects to offer the park
17at a price materially lower than the price specified in the
18notice, the homeowners, by and through the association, will
19have an additional 10 days to meet the price and terms and
20conditions of the park owner by executing a contract.
21    (d) If, within 60 days, plus any additional 10-day period,
22from the mailing of the notice required in this Section, no
23contract for sale signed by the association and the park owner
24has been reached, the right provided in this Section to
25purchase the park shall be void and of no further force and



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1    (e) Notices required by this Section shall be in writing
2and shall be delivered by placing the notice in the United
3States mail addressed to the officers of the homeowners'
4association. Each notice shall be deemed given upon the
5deposit of the notice in the United States mail.
6    (f) As used in this Section, "offer" means any
7solicitation made by the park owner to the general public.
8    (g) This Section does not apply to:
9        (1) Any sale or transfer to a person who would be
10    included within the table of descent and distribution if
11    the park owner were to die intestate.
12        (2) Any transfer by gift, devise, or operation of law.
13        (3) Any transfer by a corporation or entity to an
14    affiliate. As used herein, "affiliate" means any
15    shareholder of the transferring corporation or entity; any
16    corporation or entity owned or controlled, directly or
17    indirectly, by any shareholder of the transferring
18    corporation; or any other corporation or entity owned or
19    controlled, directly or indirectly, by any shareholder of
20    the transferring corporation or entity.
21        (4) Any transfer by a partnership to any of its
22    partners or by an individual or group of individuals to a
23    partnership.
24        (5) Any conveyance of an interest in all or a portion
25    of a mobile home park incidental to the financing of such
26    mobile home park.



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1        (6) Any conveyance resulting from the foreclosure of a
2    mortgage, deed of trust, or other instrument encumbering a
3    mobile home park or any deed given in lieu of foreclosure.
4        (7) Any sale or transfer between or among joint
5    tenants or tenants in common owning a mobile home park.
6        (8) Any exchange of a mobile home park for other real
7    property, whether or not the exchange also involves the
8    payment of cash or other boot.
9        (9) The purchase of a mobile home park by a
10    governmental entity under its powers of eminent domain.
11        (10) The sale of any mobile home park as part of a
12    portfolio transaction. For purposes of this provision,
13    "portfolio transaction" means a sale of 2 or more mobile
14    home parks, other multifamily buildings, units or
15    properties of any type, RV parks in one transaction to one
16    buyer, or multiple related buyers.
17    (765 ILCS 745/6.26 new)
18    Sec. 6.26. Affidavit of compliance with statutory
20    (a) A park owner may at any time record, in the official
21real estate records of the county or jurisdiction where a
22mobile home park is located, an affidavit in which the park
23owner certifies that: (i) with reference to an offer by the
24park owner for the sale of the park, the park owner has
25complied with the provisions of Section 6.25; (ii)



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1notwithstanding the park owner's compliance with the
2provisions of Section 6.25, no contract has been executed for
3the sale of the park between the park owner and the park
4homeowners' association; (iii) the provisions of Section 6.25
5are inapplicable to a particular sale or transfer of the park
6by the park owner and compliance with Section 6.25 is not
7required; or (iv) a particular sale or transfer of the park is
8exempted from the provisions of this Section. Any party
9acquiring an interest in a mobile home park and any and all
10title insurance companies and attorneys preparing, furnishing,
11or examining any evidence of title have the absolute right to
12rely on the truth and accuracy of all statements appearing in
13the affidavit and are under no obligation to inquire further
14as to any matter or fact relating to the park owner's
15compliance with the provisions of Section 6.25.
16    (b) It is the purpose and intention of this Section to
17preserve the marketability of title to mobile home parks, and,
18accordingly, the provisions of this Section shall be liberally
19construed in order that all persons may rely on the record
20title to mobile home parks.
21    (765 ILCS 745/6.27 new)
22    Sec. 6.27. Homeowners' associations. In order to exercise
23the rights of a homeowners' association as provided in this
24Act, the mobile home owners shall form an association in
25compliance with this Section and Sections 6.28, 6.29, and



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16.30, shall be a corporation or not-for-profit corporation and
2of which not less than two-thirds of all of the mobile home
3owners within the park shall have consented, in writing, to
4become members or shareholders. Upon incorporation of the
5association, all consenting mobile home owners in the park may
6become members or shareholders. "Member" or "shareholder"
7means a mobile homeowner who consents to be bound by the
8articles of incorporation, bylaws, and policies of the
9incorporated homeowners' association. The association may not
10have a member or shareholder who is not a bona fide owner of a
11mobile home located in the park. Upon incorporation and
12service of the notice described in Section 6.28, the
13association shall become the representative of all the mobile
14home owners in all matters relating to this Act, regardless of
15whether the homeowner is a member of the association.
16    (765 ILCS 745/6.28 new)
17    Sec. 6.28. Incorporation; notification of park owner.
18    (a) Upon receipt of its certificate of incorporation, the
19homeowners' association shall notify the park owner in writing
20of the incorporation and shall advise the park owner of the
21names and addresses of the officers of the homeowners'
22association by personal delivery upon the park owner's
23representative as designated in the lease or by certified
24mail, return receipt requested. Thereafter, the homeowners'
25association shall notify the park owner in writing by



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1certified mail, return receipt requested, of any change of
2names and addresses of its president or registered agent. Upon
3election or appointment of new officers or board members, the
4homeowners' association shall notify the park owner in writing
5by certified mail, return receipt requested, of the names and
6addresses of the new officers or board members.
7    (b) Upon written request by the homeowners' association,
8the park owner shall notify the homeowners' association by
9certified mail, return receipt requested, of the name and
10address of the park owner, the park owner's agent for service
11of process, and the legal description of the park. Thereafter,
12in the event of a change in the name or address of the park
13owner or the park owner's agent for service of process, the
14park owner shall notify in writing the president or registered
15agent of the homeowners' association of such change by
16certified mail, return receipt requested.
17    (c) The homeowners' association shall file a notice of its
18right to purchase the mobile home park as set forth in Section
196.25. The notice shall contain the name of the association,
20the name of the park owner, and the address or legal
21description of the park. The notice shall be recorded with the
22county clerk in the county where the mobile home park is
23located. Within 10 days of the recording, the homeowners'
24association shall provide a copy of the recorded notice to the
25park owner at the address provided by the park owner by
26certified mail, return receipt requested.



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1    (765 ILCS 745/6.29 new)
2    Sec. 6.29. Articles of incorporation. The articles of
3incorporation of a homeowners' association shall provide:
4        (1) That the association has the power to negotiate
5    for, acquire, and operate the mobile home park on behalf
6    of the mobile home owners.
7        (2) For the conversion of the mobile home park once
8    acquired to a condominium, a cooperative, a subdivision
9    form of ownership, or another type of ownership.
10    Upon acquisition of the property, the association, by
11action of its board of directors, shall be the entity that: (A)
12creates a condominium, cooperative, or subdivision; (B) is
13responsible for offers of sale or lease; or (C) if the home
14owners choose a different form of ownership, the entity that
15owns the record interest in the property is responsible for
16the operation of property.
17    (765 ILCS 745/6.30 new)
18    Sec. 6.30. Bylaws of homeowners' associations.
19    (a) The directors of the association and the operation
20shall be governed by the bylaws.
21    (b) The bylaws shall provide and, if they do not, shall be
22deemed to include, the following provisions:
23        (1) The form of administration of the association
24    shall be described, providing for the titles of the



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1    officers and for a board of directors and specifying the
2    powers, duties, manner of selection and removal, and
3    compensation, if any, of officers and board members.
4    Unless otherwise provided in the bylaws, the board of
5    directors shall be composed of 5 members. The board of
6    directors shall elect a president, secretary, and
7    treasurer who shall perform the duties of those offices
8    customarily performed by officers of corporations, and
9    these officers shall serve without compensation and at the
10    pleasure of the board of directors. The board of directors
11    may elect and designate other officers and grant them
12    those duties it deems appropriate.
13        (2) All other administrative and governance
14    requirements to be included in the bylaws shall be as set
15    forth in the Common Interest Community Association Act.
16    (765 ILCS 745/6.31 new)
17    Sec. 6.31. Powers and duties of homeowners' association.
18    (a) An association may contract, sue, or be sued with
19respect to the exercise or nonexercise of its powers. For
20these purposes, the powers of the association include, but are
21not limited to, the maintenance, management, and operation of
22the park property.
23    (b) The powers and duties of an association include those
24set forth in this Act and those set forth in the articles of
25incorporation and bylaws and any recorded declarations or



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1restrictions encumbering the park property, if not
2inconsistent with this Act.
3    (c) An association has the power to make, levy, and
4collect assessments and to lease, maintain, repair, and
5replace the common areas upon purchase of the mobile home
7    (d) The association shall maintain the following items,
8when applicable, which constitute the official records of the
10        (1) A copy of the association's articles of
11    incorporation and each amendment to the articles of
12    incorporation.
13        (2) A copy of the bylaws of the association and each
14    amendment to the bylaws.
15        (3) A copy of the written rules or policies of the
16    association and each amendment to the written rules or
17    policies.
18        (4) The approved minutes of all meetings of the
19    members of an association and meetings open for members of
20    the board of directors, and committees of the board, which
21    minutes must be retained within this State for at least 5
22    years.
23        (5) A current roster of all members and their mailing
24    addresses and lot identifications. The association shall
25    also maintain the e-mail addresses and the numbers
26    designated by members for receiving notice sent by



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1    electronic transmission of those members consenting to
2    receive notice by electronic transmission. The e-mail
3    addresses and numbers provided by members to receive
4    notice by electronic transmission shall be removed from
5    association records when consent to receive notice by
6    electronic transmission is revoked. The association is not
7    liable for an erroneous disclosure of the e-mail address
8    or the number for receiving electronic transmission of
9    notices.
10        (6) All of the association's insurance policies or
11    copies thereof, which must be retained within this State
12    for at least 5 years after the expiration date of the
13    policy.
14        (7) A copy of all contracts or agreements to which the
15    association is a party, including, without limitation, any
16    written agreements with the park owner, lease, or other
17    agreements or contracts under which the association or its
18    members has any obligation or responsibility, which must
19    be retained within this State for at least 5 years after
20    the expiration date of the contract or agreement.
21        (8) The financial and accounting records of the
22    association, kept according to good accounting practices.
23    All financial and accounting records must be maintained
24    within this State for at least 5 years. The financial and
25    accounting records must include:
26            (A) Accurate, itemized, and detailed records of



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1        all receipts and expenditures.
2            (B) A current account and a periodic statement of
3        the account for each member, designating the name and
4        current address of each member who is obligated to pay
5        dues or assessments, the due date and amount of each
6        assessment or other charge against the member, the
7        date and amount of each payment on the account, and the
8        balance due.
9            (C) All tax returns, financial statements, and
10        financial reports of the association.
11            (D) Any other records that identify, measure,
12        record, or communicate financial information.
13        (i) All other written records of the association not
14    specifically included in this Section that are related to
15    the operation of the association must be retained within
16    this State for at least 5 years or at least 5 years after
17    the expiration date, as applicable.
18    (e) The official records shall be made available to a
19member for inspection or photocopying within 20 business days
20after receipt by the board or its designee of a written request
21submitted by certified mail, return receipt requested. The
22requirements of this Section are satisfied by having a copy of
23the official records available for inspection or copying in
24the park or, at the option of the association, by making the
25records available to a member electronically via the Internet
26or by allowing the records to be viewed in electronic format on



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1a computer screen and printed upon request. If the association
2has a photocopy machine available where the records are
3maintained, it must provide a member with copies on request
4during the inspection if the entire request is no more than 25
5pages. An association shall allow a member or his or her
6authorized representative to use a portable device, including
7a smartphone, tablet, portable scanner, or any other
8technology capable of scanning or taking photographs, to make
9an electronic copy of the official records in lieu of the
10association's providing the member or his or her authorized
11representative with a copy of such records. The association
12may not charge a fee to a member or his or her authorized
13representative for the use of a portable device.
14        (1) The failure of an association to provide access to
15    the records within 20 business days after receipt of a
16    written request submitted by certified mail, return
17    receipt requested, creates a rebuttable presumption that
18    the association willfully failed to comply with this
19    subsection.
20        (2) The association may adopt reasonable written rules
21    governing the frequency, time, location, notice, records
22    to be inspected, and manner of inspections, but may not
23    require a member to demonstrate a proper purpose for the
24    inspection, state a reason for the inspection, or limit a
25    member's right to inspect records to less than one
26    business day per month. The association may impose fees to



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1    cover the costs of providing copies of the official
2    records, including the costs of copying and for personnel
3    to retrieve and copy the records if the time spent
4    retrieving and copying the records exceeds 30 minutes and
5    if the personnel costs do not exceed $20 per hour. The
6    association shall maintain an adequate number of copies of
7    the recorded governing documents, to ensure their
8    availability to members and prospective members.
9    Notwithstanding this paragraph, the following records are
10    not accessible to members or homeowners:
11            (A) A record protected by the lawyer-client
12        privilege and a record protected by the work-product
13        privilege, including, but not limited to, a record
14        prepared by an association attorney or prepared at the
15        attorney's express direction that reflects a mental
16        impression, conclusion, litigation strategy, or legal
17        theory of the attorney or the association and that was
18        prepared exclusively for civil or criminal litigation,
19        for adversarial administrative proceedings, or in
20        anticipation of such litigation or proceedings until
21        the conclusion of the litigation or proceedings.
22            (B) E-mail addresses, telephone numbers, facsimile
23        numbers, emergency contact information, any addresses
24        for a homeowner other than as provided for association
25        notice requirements, and other personal identifying
26        information of any person, excluding the person's



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1        name, lot designation, mailing address, and property
2        address. Notwithstanding the restrictions in this
3        subparagraph, an association may print and distribute
4        to homeowners a directory containing the name, park
5        address, and telephone number of each homeowner. A
6        homeowner may exclude his or her telephone number from
7        the directory by so requesting in writing to the
8        association. The association is not liable for the
9        disclosure of information that is protected under this
10        subparagraph if the information is included in an
11        official record of the association and is voluntarily
12        provided by a homeowner and not requested by the
13        association.
14            (C) An electronic security measure that is used by
15        the association to safeguard data, including
16        passwords.
17            (D) The software and operating system used by the
18        association that allows the manipulation of data, even
19        if the homeowner owns a copy of the same software used
20        by the association. The data is part of the official
21        records of the association.
22    (f) An outgoing board or committee member must relinquish
23all official records and property of the association in his or
24her possession or under his or her control to the incoming
25board within 5 days after the election or removal.
26    (g) An association has the power to purchase lots in the



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1park and to acquire, hold, lease, mortgage, and convey them.
2    (h) An association shall use its best efforts to obtain
3and maintain adequate insurance to protect the association and
4the park property upon purchase of the mobile home park. A copy
5of each policy of insurance in effect shall be made available
6for inspection by owners at reasonable times.
7    (i) An association has the authority, without the joinder
8of any homeowner, to modify, move, or create any easement for
9ingress and egress or for the purpose of utilities if the
10easement constitutes part of or crosses the park property upon
11purchase of the mobile home park. This subsection does not
12authorize the association to modify or move any easement
13created in whole or in part for the use or benefit of anyone
14other than the members or crossing the property of anyone
15other than the members, without his or her consent or approval
16as required by law or the instrument creating the easement.
17Nothing in this subsection affects the rights of ingress or
18egress of any member of the association.".