SB1779~80 Position Paper


Manufactured Home Owners Association of Illinois

I am asking for a Yes Vote for SB 1779 and SB 1780

Chief Sponsor –  Leader Laura Murphy

SB 1780

Many Manufactured Home Communities, provide housing for  500 plus families, (There are about 1,200 communities in IL) The Landlord is responsible for supplying adequate and safe water to the homes. The MHOAI organization has been contacted by homeowner’s documenting their water was not supplied to the home for many days to weeks. SB1780 legislation addresses this problem in the event the water supply is stopped for any reason. Failure of the Landlord to maintain the water supply infrastructure generally results in these long water stoppages.  In many communities water usage is included in the rent cost and are not receiving a service they are paying for.

SB 1779

Buyers in this housing market get a chattel loan. In IL if the home is placed on a person’s land, via the Sec. of State, the titled is changed to a deed allowing the buyer to get a mortgage and taxed as personal property. A buyer who purchases a manufactured home  located in a manufactured home community is given a chattel loan. With the larger development companies, the Landlord can also arrange for a home loan under a different name and this is information is not shared with the buyer. A chattel loan is a type of loan you get for a car or boat. Most times sales people do not share this type of loan information. New Homes can sell for $100,000 in this market. Sales people often use the word mortgage. At some point a manufactured home owner will want to refinance a home and then discovers they have a chattel loan and can not refinance. The buyer also finds out they do not have the legal protections that come with a mortgage.

SB 1779 would put in place disclosures that are required with the home loan.

If you have any questions feel free to contact Terry Nelson at 847-220-2692.