Mobile Homes: Rent Deferral Program

The Illinois Mobile Homes Landlord and Tenant Act has a Rent Deferral Program to help tenants who cannot afford a recent rent increase. 765 ILCS 745/6.4. Here’s how it works, explained in simple terms:

What Is the Rent Deferral Program?

This program allows tenants to temporarily defer (delay) paying the amount of a recent rent increase for up to one year if they prove they cannot afford it. The deferred amount must be paid later, but no interest or penalties will be added.

Who Can Use the Program?

To qualify for the program, tenants or co-tenants must meet these requirements within 30 days of receiving either a new lease or a notice of rent increase:

1. List the Mobile Home for Sale:
   • The tenant must sign a sworn affidavit (a legal promise) stating they will list their mobile home for sale with a licensed sales entity and actively try to sell it.
2. Income Limit:
   • The tenant must sign an affidavit showing the new rent will be more than 45% of their current income, including taxable and non-taxable income from all sources.
3. Provide Proof of Income:
   • The tenant must provide documents like tax returns and other paperwork to verify their income and assets.

How Long Can Tenants Stay?

• Tenants who qualify can stay in their mobile home for up to 12 months or until they sell their mobile home to a new tenant approved by the park owner, whichever happens first.
• During this time, tenants must continue paying the original rent amount (the amount before the increase).

What Happens to the Deferred Rent?

• The deferred rent is the difference between the old rent and the new, higher rent.
• This amount must be paid in full when the mobile home is sold to a new tenant.
• No extra fees, interest, or penalties will be added to the deferred rent.

Important Notes:

• Tenants must stay current on their original rent payments while participating in the program.
• If a tenant cannot meet these requirements, they will not qualify for the program.