Missouri 2022 2022 Regular Session

Missouri House Bill HB2218 Comm Sub / Analysis

Filed 01/20/2022

                    HB2218--MUNICIPALLANDREUTILIZATIONLAW
SPONSOR: O'Donnell
Thisbillmodifiesprovisionsrelatingtopropertyregulationsfor
certaincitiesandcounties. Initsmainprovisions,thebill:
(1)Addsthemaritalstatusofallgrantorstoadeedtothe
informationrequiredoneverydocumentpresentedforrecordingto
recordersofdeeds(Sections59.310and442.130,RSMo);
(2)Providesthatforanyimprovedparceloflandidentifiedas
beingvacantbySt.LouisCityoperatingundertheMunicipalLand
ReutilizationLaw,thecitycollectormust,withinnomorethantwo
yearsafterdelinquency,filesuitinthecircuitcourtagainst
suchlandsorlotstoenforcethelienofthestateandthecityas
providedundertheMunicipalLandReutilizationAct.Thefailure
ofthecollectortobringsuitwithintwoyearswillnotconstitute
adefenseorbaranactionforthecollectionoftaxes(Section
92.720);
(3)Currently,asuitfortheforeclosureofcertaintaxliens
beginsbyfilingapetitionwiththecircuitclerkandtheland
utilizationauthority. Foreachpetitionfiled,thecitycollector
mustmakeavailabletothepublicalistdetailingeachparcel
includedinthesuit(Section92.740);
(4)Addsthatforanyimprovednonhomesteadparcel,anyperson
havinganyright,titleorinterestin,orlienupon,anyparcelof
realestatemayredeemsuchparcelatanytimepriortothetimeof
theforeclosuresaleofsuchrealestatebypayingallofthesums
dueasofthedateofredemptiontothecitycollector,including
alldebtsowedtothecity(Section92.750);
(5)Providesthatthecitycollectorshallmailanoticetothe
peoplenamedinthepetitionashavinganinterestintheparcel,
orpeopleotherwiseknowntothecollector,attheaddressmost
likelytoinformthepartiesoftheproceedings(Section92.760);
(6)Providesthatthecitycollectorshallfilewiththecourtan
affidavitofcompliancewithallnoticerequirementsforthesuit
priortoanysheriff'ssale.Theaffidavitmustincludethe
identitiesofallpartiestowhomnoticewasattemptedandbywhat
means.Fornoticesreturnedundeliverable, thecollector's
affidavitmustcertifywhatadditionalattemptwasmadeandbywhat
means(Section92.765);
(7)Providesthatthereceiptofsurplusfundswillconstitutea
bartoanyclaimofright,titleorinterestin,orlienuponthe parcelofrealestatebythefundrecipient. Currently,ifthe
parcelofrealestateisauctionedoffatasheriff'sforeclosure
saleforasumgreaterthanthetotalamountnecessarytopayall
thetaxbillsincludedinthejudgment,allproceedingsinthesuit
shallbeordereddismissedastotaxesowned(Section92.775);
(8)Providesthatnolaterthan120dayspriortothesheriff's
sale,thecollectormustobtainatitleabstractorreportonany
unredeemedparcels,whichshallincludeallconveyances,liens,and
chargesagainsttherealestate,andthenamesandmailing
addressesofanyinterestedpartiesandlienholders. Additionally,
nolaterthan20dayspriortothesheriff'ssale,thecollector
mustsendnoticeofthesaletotheinterestedpartieswhichshall
includethedate,time,andplaceofthesaleaswellasother
informationasprovidedinthebill.
Thebillalsomodifiestherequirementthatthecollectorshall
sendnoticeofthesaletothepartieshavinginterestinthe
parcelnolaterthan40dayspriortothesheriff'ssale,rather
than20days.Thenoticemustbesenttotheaddressesmostlikely
toinformthepartiesoftheproceedings.
Finally,nolaterthan20dayspriortothesheriff'ssale,the
sheriffmustpostawrittennoticeontheparcelinaconspicuous
locationandattachedtoastructure. Thenoticemustdescribethe
propertyandadvisethatitisthesubjectofdelinquentlandtax
collectionproceedingsandthatitmaybesoldforthepaymentof
delinquenttaxes.Thisnoticemustalsocontainotherinformation
asprovidedinthebill.Thesheriffmustalsoattemptinperson
noticenolaterthan20dayspriortothesaletoanypersonfound
attheproperty(Section92.810);
(9)Providesthatthecitycollectorshallnotenterintoa
redemptioncontractwithrespecttoanyimprovedparcelnot
occupiedasahomestead. Onanannualbasis,thecitycollector
willmakepubliclyavailablethenumberofparcelsunderredemption
contract(Section92.815);
(10)Thecourtmuststaythesaleofanyparceltobesoldunder
foreclosureinanactionfortemporarypossessionofrealproperty
forrehabilitation, providedthatthepartywhohasbroughtsuchan
actionhas,uponorderofthecourt,paidtothecircuitcourtthe
principalamountofalllandtaxesthendueundertheforeclosure
judgmentpriortothedateofsale.Uponthegrantingbyacourt
oftemporarypossessionoftheproperty,thecourtshalldirect
paymenttothecollectorofallprincipallandtaxespaidtothe
circuitcourt.Additionally,thecourtshallorderthepermanent
extinguishment ofpenaltiesandinterestarisingfromactionsto
collectdelinquentlandtaxes. Iftheowneroftheparcelmovesforrestorationofpossession,the
ownershallpayintothecircuitcourtalllandtaxamounts
currentlydue,includingallpenalties,interest,attorney'sfees,
andcourtcostsretroactivetothedateofaccrual. Ifthecourt
ordersthepropertyberestoredtotheowner,allfundspaidonthe
principallandtaxesshallbereturnedtothepayerandallfunds
paidtothecircuitcourtbytheownerwillbepaidouttothe
collector(Section92.817);
(11)Providesthatnopersonwillbeeligibletobidatthetime
ofthesheriff'ssaleunlessthepersonhas,nolaterthan10days
beforethesaledate,demonstratedtothecollectororsheriffthat
theyarenottheownerofanyparcelofrealestateinthecity
whichissubjecttodelinquenttaxesorfees.Thecollectoror
sheriffmayrequireprospectivebidderstosubmitanaffidavit
attestingtothebidrequirementsofthisbill(Section92.825);
(12)Providesthatwithinsixmonthsafterthesheriffsellsthe
parcelofrealestate,thecourtshallsetahearingtoconfirmor
setasidetheforeclosuresale.Thecourt'sjudgmentshallinclude
aspecificfindingthatadequatenoticewasprovidedtoall
necessaryparties.
Ifthereareanysurplusfundsfromthesalethen10%ofthefunds
shallbedistributedtotheAffordableHousingTrustFundofthe
cityoritsequivalent. Thecitymayalso,byordinance,electto
allocateaportionofitsshareofthesaleproceedstowardsafund
forthepurposeofdefendingagainstclaimschallengingthe
sufficiencyofnotice.
Additionally,thisbillprovidesthatthepurchasersofthe
propertyshallagreethatintheeventoftheirfailuretoobtain
anoccupancypermitpriortoanysubsequenttransferofthe
property,theyshallpay$5,000indamageswithoutproofoflossor
damages,exceptthesedamagesshallnotconstitutealienonthe
property. Ifanypurchaserappliesforanoccupancypermitand
inspectorsdonotinspecttheparcelin120days,thecostofthe
applicationshallbededicatedtothesheriffforthepurposeof
providingnoticetointerestedparties.
Ifthesaleisnotconfirmedwithinsixmonthsafterthesale,any
set-asideofthesaleshallincludeapenaltyof25%ofthebid
amountovertheopeningbidamountandshallbepaidtothe
AffordableHousingTrustFundofthecityoritsequivalent
(Section92.840);and
(13)Modifiesprovisionsrelatingtotherecordingofasheriff's
deed.Allsuchdeedsshallberecordedwiththerecorderofdeeds withintwomonthsafterthecourtconfirmsthesale,ifno
proceedingtosetasidetheconfirmationjudgmentisbeforethe
court.Thesheriff'sdeedshallbeprimafacieevidencethatthe
suitandallproceedingsmettherequirementsoflaw.
Thebillalsorepealstheprovisionthataftertwoyearsfromthe
dateoftherecordingofthedeed,thereshallbeapresumption
thatthesuitandallproceedingsmettherequirementsoflawand
nosuitmaybefiledtoattackthevalidityoftheclaim(Sections
92.852and92.855).
ThisbillisthesameasHB2217(2022)andsimilartoSB495
(2021).