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Public Act 103-0766 Public Act 0766 103RD GENERAL ASSEMBLY | Public Act 103-0766 | SB2935 Enrolled | LRB103 38596 JRC 68732 b |
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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, |
| 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. |
| (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 |
| 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 |
| 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 |
| 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, |
| 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. |
| (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 |
| 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, |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
| of any homeowner, to modify, move, or create any easement for | ingress and egress or for the purpose of utilities if the | easement constitutes part of or crosses the park property upon | purchase of the mobile home park. This subsection does not | authorize the association to modify or move any easement | created in whole or in part for the use or benefit of anyone | other than the members or crossing the property of anyone | other than the members, without his or her consent or approval | as required by law or the instrument creating the easement. | Nothing in this subsection affects the rights of ingress or | egress of any member of the association. |
Effective Date: 1/1/2025
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