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| Public Act 103-0766
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| SB2935 Enrolled | LRB103 38596 JRC 68732 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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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:
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(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.
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(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.
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(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.
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(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.
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(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.
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(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.
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