HB5938 Summary: Manufactured Homes as Real Property

• Establishes the "Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act" providing a statutory procedure to convert manufactured homes permanently affixed to real property into real property that can be conveyed and mortgaged like traditional real estate.

• Requires owners to file an affidavit of affixation with the county recorder documenting that the home is affixed to a permanent foundation (wheels, axles, and hitch removed; anchored to foundation; connected to utilities), certified by a licensed appraiser, engineer, or installer.

• Mandates surrender of the manufactured home's Manufacturer's Statement of Origin or certificate of title to the Secretary of State upon completion of the affixation process, preventing dual titling as both personal property and real property.

• Allows owners to sever a home from real property by filing an affidavit of severance with the county, which returns the home to personal property status and requires reissuance of a vehicle title.

• Amends multiple Illinois statutes including the Property Tax Code, Vehicle Code, Banking Act, and Interest Act to recognize permanently affixed manufactured homes as real property eligible for real estate financing, mortgages, and taxation as improvements to land.