Homeowners' Associations in Mobile Home Parks

If you live in a mobile home park, you and your neighbors have the right to form a homeowners' association (HOA). This association can play a key role in protecting your rights and even gives you an opportunity to buy the park if the owner decides to sell. Here’s what you need to know about mobile home park HOAs and how they work under Illinois law.

What Is a Homeowners' Association?

A homeowners' association is a group of mobile home residents who join together to represent their interests. Under Illinois law (765 ILCS 745/6.27), an HOA must be a not-for-profit organization, and at least two-thirds of the park's mobile homeowners must agree to become members. Once established, the HOA can act on behalf of all mobile homeowners in the park.

Right to Purchase the Park

If a park owner decides to sell, Illinois law (765 ILCS 745/6.25) gives the HOA the right of first refusal. This means:

• The park owner must notify the HOA in writing about the sale price and terms.
• The HOA has 60 days to match the offer and sign a contract to buy the park.
• If the owner lowers the price by 20% or more, the HOA gets an extra 10 days to match the new price.
• If no contract is signed within the deadline, the owner can sell to someone else.

Organizing an HOA

To form a HOA, the mobile home owners must:

1. Incorporate as a not-for-profit corporation. 765 ILCS 745/6.27. 
2. Get at least ⅔ of all the mobile home owners’ consent in writing. 765 ILCS 745/6.27. 
3. Notify the park owner in writing of its formation and provide the names and addresses of its officers. 765 ILCS 745/6.28. 
4. Adopt bylaws, which outline how the HOA will operate, including electing a board of directors. 765 ILCS 745/6.30. 
5. Maintain records, such as meeting minutes, financial documents, and membership lists. 765 ILCS 745/6.31.

Powers and Responsibilities

Once formed, the HOA can:

• Negotiate with the park owner on behalf of residents.
• Collect dues and assessments for park maintenance (if applicable).
• Sue or be sued in legal matters related to park ownership.
• Manage park operations if the HOA purchases the park.

Why Form an HOA?

A homeowners' association strengthens residents' ability to advocate for fair treatment and better living conditions. If the park goes up for sale, an HOA can help residents take control of their community and prevent sudden changes in ownership that might lead to rent increases or other unwanted changes.

If you're interested in forming an HOA in your park, talk to your neighbors and consult legal resources to ensure you meet all state requirements.