Illinois manufactured home dealers must be licensed following the passage of House Bill 1056. The legislation took effect on July 22, 2016, the day it was signed into law by Gov. Bruce Rauner.
HB 1056 introduces licensing laws for manufactured home dealers, which include the purchase of a $20,000 surety bond. The bond is dealers’ guarantee that they will pay all taxes and title and registration fees involved with the sale of manufactured homes and park homes. Manufactured home dealers have the option of submitting a certificate of deposit (CD) in the same amount instead of the surety bond, and after five years in business can substitute a certificate of insurance in place of the bond or CD.
Manufactured homes are defined as homes that are factory-assembled on a permanent chassis with no permanent foundation, transportable and unable to self-propel. They must be designed for year-round occupancy as single-family homes when connected to utilities and must have a label (seen here at the bottom of page 2) guaranteeing the manufacturer’s compliance with the U.S. Department of Housing and Urban Development’s (HUD) standards.
Manufactured home dealers’ licenses also allow them to sell park models, which are also unable to self-propel but are less than 400 square feet, built on a vehicle chassis and not intended for permanent residence. Park models must be built to comply with American National Standards Institute (ANSI) standards.
HB 1056 defines community-based manufactured home dealers separately. These individuals or entities operate a tract or tracts of land containing sites equipped with utilities for five or more manufactured homes and sell, trade or buy homes within their community and other communities. They must also become licensed and obtain a surety bond. Community-based dealers must post supplemental licenses in places they are authorized to do business that are not their main place of business.
Manufactured home dealer license applicants must submit applications to the Secretary of State, including the surety bond and the following information:
- Applicant’s name, type of business organization and any established places of business (if applicable)
- If the applicant is a corporation, sole proprietorship, partnership, limited liability company or other organization, a list of all significant organization members and their addresses
- Make or makes of manufactured homes and/or park models the applicant will sell
- The names of any manufacturer or franchised distributor the applicant has contracted to sell with and their statement confirming the contract, if applicable
- Certification from the Department of Revenue that the applicant has been approved for registration under the Retailers’ Occupation Tax Act
- $1,000 license fee for manufactured home dealers with an additional fee of $100 per business location; $500 if the application is submitted after June 15 with an additional $50 per business location
- $500 license fee for community-based manufactured home dealers or $250 if the application is submitted after June 15; additional fee of $50 per business location
- Statements from all persons holding 10% or more ownership interest in an organization confirming they have not committed violations of several Illinois laws, detailed in Section 5-101.2(c)(7), in the past three years
- Any other information required by the Secretary of State
Application requirements are detailed in HB 1056, Section 5-101.2(c). License fees are refunded if the Secretary rejects an application. Licenses must be displayed in the licensee’s main place of business and expire annually on December 31.
Contact the Division of Vehicle Services at the Office of the Secretary of State with questions about becoming a licensed manufactured home dealer. SuretyBonds.com can answer your surety bonding questions and help you purchase a bond in Illinois.