Landmark Legislation Banning Rent Gouging for Mobile Home Residents Passes Committee

SPRINGFIELD, Ill. – State Rep. Abdelnasser Rashid, D-Bridgeview, today advanced House Bill 3526 that would end rent gouging by manufactured home park landlords, bringing much needed relief to mobile home owners and renters.

The amended HB 3526 was passed by the House Housing Committee and will now go to the floor for a vote.

“Greed is rampant in the manufactured housing industry. Rent hikes of 50%, 60%, even 70% are happening at alarming rates, pushing families and seniors out of their homes,” said Rep. Abdelnasser Rashid. “One prominent investor openly compared his tenants to hostages who can do nothing about extreme rent increases. That mentality is driving mobile home residents to the brink. This bill takes urgent, targeted action to stop the most devastating rent increases before more residents lose everything to robber barons chasing maximum profit.”

HB 3526 established a reasonable, predictable framework for rent increases in manufactured home parks. It caps annual lot rent at 3% or inflation, providing stability for residents, while allowing owners to keep up with rising costs. The provisions of the bill would not apply to newly constructed mobile homes for 15 years or for justified expenses limited to property tax increases, major capital improvements, or utility cost increases.

Currently, predatory private equity firms have been buying up manufactured home parks, leading to skyrocketing rents for residents who have few alternative options. Residents typically own their homes, but rent the space the home sits on in manufactured home parks, meaning they are vulnerable to potentially losing their homes if they cannot afford spiking rents.

The manufactured housing industry is highly profitable and stable, and can absorb reasonable rent stabilization that keeps residents in their homes. Research shows that between 2004 and 2018, net operating income from mobile home parks rose by 87%, and notably never declined even during the Great Recession. An industry analysis found this sector was the only major real estate asset class with no year-over-year income declines in any year since 2000, outperforming apartments, offices, and other property types.