The Illinois General Assembly’s State Rep. Abdelnasser Rashid (D-21) has introduced a bill aimed at limiting rent increases in mobile home parks. The proposed legislation, known as the Mobile Home Tenant Protection Act, seeks to cap annual rent hikes at 3% and allows for adjustments based on the consumer price index (CPI), with a maximum increase of 5% above the initial cap starting in 2027.
Under the proposed Mobile Home Tenant Protection Act, park owners are required to provide tenants with a 90-day notice before implementing any rent increase. Additionally, the bill includes provisions to protect tenants from unfair fees. Specifically, it prohibits park owners from passing on costs related to fines, penalties, or legal fees to tenants unless these costs are directly attributable to the actions of the tenants themselves. This ensures that tenants are not unfairly burdened with expenses that are not their responsibility, providing them with greater financial stability and protection against unjust charges.
This legislation is part of a broader effort in Illinois to enhance protections for mobile home residents. Recent laws have already empowered residents by granting them the right of first refusal when their park is sold and protecting them from unfair evictions.
The bill addresses growing concerns about the impact of corporate investors purchasing mobile home parks across Illinois and nationwide, frequently followed by significant rent hikes that place financial burdens on residents.
Some Champaign County residents experienced firsthand the effects of corporate ownership when David Reynolds, an out-of-state mobile home investor, purchased about a dozen parks in the area. Residents reported substantial rent increases that threatened their ability to remain in their homes. In Mahomet, residents of Candlewood have seen annual lot rent increases double since Kodiak/Ignite purchased the property in 2021.
It’s a trend sweeping the nation. Reynolds and his business partner Frank Rolfe are leading the charge. The duo have built what they claim is the fifth largest portfolio of mobile home properties in the country, with over 280 parks in 32 states. The pair also founded Mobile Home University, which teaches investors how to purchase parks with promises of 15-40% returns on investment.
“Affordable Housing is the hottest arena in commercial real estate right now,” the Mobile Home University website says. “With over 20% of Americans trying to live on $20,000 per year or less, the demand for mobile homes has never been higher — and the big winners are the owners of the mobile home parks in which those customers reside. This trend will only continue to pick up steam in the years ahead, as evidenced by a recent interview with Warren Buffet (one of the largest owners of mobile home manufacturing and financing in the U.S.) in which he talks about the rapid speed of new U.S. household formations and the lack of housing options that they can afford. Case in point, apartment rents and occupancies have never been higher — and the U.S. average apartment rent is over $1,000 per month. You can imagine the demand in the $500 per month price category, which is the market that most mobile home parks serve.
“So how do you harness the affordable housing trend? The answer is in buying mobile home parks.”
The website features videos that discuss strategies for mobile home park owners to raise rent on tenants to pay higher land rents. This is particularly concerning because tenants often own their mobile homes but find them difficult or impossible to relocate, leaving them vulnerable to increased costs.
The proposed Mobile Home Tenant Protection Act in Illinois acknowledges the concerns and experiences of numerous individuals who have been impacted by mobile home park issues, as evidenced by the extensive list of proponents who are largely residents and community members advocating for the bill.
The bill is currently in the legislative process and will need to pass through both chambers of the General Assembly before it can be signed into law.
