| 1 | 1 | | |
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| 2 | 2 | | SECOND REGULAR SESSION |
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| 3 | 3 | | SENATE BILL NO. 1324 |
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| 4 | 4 | | 102ND GENERAL ASSEMBLY |
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| 5 | 5 | | INTRODUCED BY SENATOR MCCREERY. |
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| 6 | 6 | | 4387S.02I KRISTINA MARTIN, Secretary |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend chapter 448, RSMo, by adding thereto ten new sections relating to binding agreements |
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| 9 | 9 | | running with land. |
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| 10 | 10 | | |
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| 11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 12 | 12 | | Section A. Chapter 448, RSMo, is amended by add ing thereto 1 |
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| 13 | 13 | | ten new sections, to be known as sections 448.300, 448.305, 2 |
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| 14 | 14 | | 448.310, 448.315, 448.320, 448.325, 448.330, 448.335, 448.340, 3 |
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| 15 | 15 | | and 448.345, to read as follows:4 |
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| 16 | 16 | | 448.300. Sections 448.300 to 448.345 shall be known 1 |
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| 17 | 17 | | and may be cited as the "Mis souri Uniform Homeowners' 2 |
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| 18 | 18 | | Association Act". 3 |
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| 19 | 19 | | 448.305. Sections 448.300 to 448.345 shall apply to 1 |
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| 20 | 20 | | all planned communities; provided, however, sections 448.300 2 |
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| 21 | 21 | | to 448.345 only apply with respect to events and 3 |
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| 22 | 22 | | circumstances occurring af ter January 1, 2025, and do not 4 |
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| 23 | 23 | | invalidate existing provisions of the declaration, bylaws, 5 |
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| 24 | 24 | | articles of incorporation or plats of those planned 6 |
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| 25 | 25 | | communities. 7 |
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| 26 | 26 | | 448.310. As used in sections 448.300 to 448.345, the 1 |
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| 27 | 27 | | following terms mean: 2 |
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| 28 | 28 | | (1) "Allocated interests", the common expense 3 |
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| 29 | 29 | | liability and votes in the association; 4 |
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| 30 | 30 | | (2) "Assessment", the sum attributable to each lot and 5 |
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| 31 | 31 | | due to the association based upon the lot's common expense 6 |
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| 32 | 32 | | liability or other moneys owed to the asso ciation pursuant 7 SB 1324 2 |
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| 33 | 33 | | to sections 448.300 to 448.345 or the governing documents of 8 |
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| 34 | 34 | | the association; 9 |
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| 35 | 35 | | (3) "Association", the lot owners association; 10 |
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| 36 | 36 | | (4) "Board of directors", the governing body, 11 |
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| 37 | 37 | | regardless of name, that has the power to act on beha lf of 12 |
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| 38 | 38 | | the association as designated in the governing documents; 13 |
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| 39 | 39 | | (5) "Common ground", any real estate within a planned 14 |
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| 40 | 40 | | community which is owned or leased by the association other 15 |
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| 41 | 41 | | than a lot; 16 |
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| 42 | 42 | | (6) "Common expense", expenditures made by, or the 17 |
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| 43 | 43 | | financial liabilities of, the association including any 18 |
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| 44 | 44 | | allocation to reserves; 19 |
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| 45 | 45 | | (7) "Common expense liability", liability for common 20 |
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| 46 | 46 | | expenses allocated to each lot; 21 |
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| 47 | 47 | | (8) "Declarant", a person or group of persons acting 22 |
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| 48 | 48 | | in concert that: 23 |
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| 49 | 49 | | (a) as part of a common promotional plan, offers to 24 |
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| 50 | 50 | | dispose of the interest of the person or group of persons in 25 |
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| 51 | 51 | | a lot not previously disposed of; or 26 |
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| 52 | 52 | | (b) reserves or succeeds to any declarant right; 27 |
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| 53 | 53 | | (9) "Declaration", the recorded instrument , however 28 |
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| 54 | 54 | | denominated, that creates a planned community; 29 |
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| 55 | 55 | | (10) "Governing documents", the declaration, articles 30 |
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| 56 | 56 | | of incorporation, bylaws, and rules and regulations of the 31 |
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| 57 | 57 | | association; 32 |
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| 58 | 58 | | (11) "Lot", a physical portion of the planned 33 |
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| 59 | 59 | | community designated for separate ownership or occupancy as 34 |
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| 60 | 60 | | depicted on the plats of the planned community or as more 35 |
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| 61 | 61 | | particularly described in a declaration; 36 |
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| 62 | 62 | | (12) "Lot owner", a declarant or other person who owns 37 |
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| 63 | 63 | | a lot excluding a person having an interest in a lot solely 38 |
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| 64 | 64 | | as security for an obligation; 39 SB 1324 3 |
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| 65 | 65 | | (13) "Planned community", real property described in a 40 |
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| 66 | 66 | | declaration that sets forth the duties and obligations of 41 |
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| 67 | 67 | | the association and lot owner. For the purposes of sections 42 |
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| 68 | 68 | | 448.300 to 448.345, neith er a cooperative, timeshare, or 43 |
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| 69 | 69 | | condominium is a planned community; provided, however, a 44 |
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| 70 | 70 | | cooperative, timeshare, or condominium may be part of a 45 |
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| 71 | 71 | | planned community. 46 |
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| 72 | 72 | | 448.315. 1. No provision in sections 448.300 to 1 |
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| 73 | 73 | | 448.345 shall impact, hinder, impair, alter, or affect the 2 |
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| 74 | 74 | | rights of a declarant to administer, develop, construct, or 3 |
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| 75 | 75 | | convey real property subject to the declaration. 4 |
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| 76 | 76 | | 2. Except as expressly provided in sections 448.300 to 5 |
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| 77 | 77 | | 448.345, the effect of these sections shall not be varied by 6 |
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| 78 | 78 | | agreements, and rights conferred by such sections shall not 7 |
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| 79 | 79 | | be waived. 8 |
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| 80 | 80 | | 448.320. Each lot constitutes for all purposes a 1 |
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| 81 | 81 | | separate parcel of real estate, and shall be separately 2 |
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| 82 | 82 | | assessed and taxed consistent with its restricted use. The 3 |
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| 83 | 83 | | personal property of an association, if any, shall not be 4 |
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| 84 | 84 | | subject to taxation under chapter 137, and common ground 5 |
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| 85 | 85 | | shall not be subject to separate assessment or taxation. 6 |
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| 86 | 86 | | 448.325. 1. Consent of the declarant i s required for 1 |
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| 87 | 87 | | any amendment to the governing documents that would impair 2 |
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| 88 | 88 | | any rights reserved by the declarant in the declaration. 3 |
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| 89 | 89 | | 2. The declaration may be amended pursuant to the 4 |
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| 90 | 90 | | procedures as contained in the declaration. 5 |
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| 91 | 91 | | 3. If a declaration is silent regarding amendment 6 |
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| 92 | 92 | | procedures, or if a planned community has multiple differing 7 |
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| 93 | 93 | | amendment procedures, or if any provision in a declaration 8 |
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| 94 | 94 | | requires a percentage larger than sixty -seven percent of the 9 |
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| 95 | 95 | | votes in the association to amend the declaration, the 10 |
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| 96 | 96 | | provision regarding amendment procedures is hereby declared 11 SB 1324 4 |
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| 97 | 97 | | void as contrary to public policy and shall be deemed to 12 |
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| 98 | 98 | | specify a percentage of sixty -seven percent of the votes in 13 |
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| 99 | 99 | | the association until the declaration is otherwise amende d. 14 |
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| 100 | 100 | | 4. A unanimous vote of the lot owners is required to 15 |
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| 101 | 101 | | amend any declaration to change the allocated interest of a 16 |
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| 102 | 102 | | lot. A unanimous vote of the lot owners is not required to 17 |
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| 103 | 103 | | change or add a restriction that may be more burdensome. 18 |
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| 104 | 104 | | 5. No action to challenge the validity of an amendment 19 |
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| 105 | 105 | | to the declaration may be brought more than one year after 20 |
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| 106 | 106 | | the amendment to the declaration is recorded. 21 |
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| 107 | 107 | | 6. If an amendment is proposed to the declaration by 22 |
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| 108 | 108 | | the board of directors and an insufficient number of votes 23 |
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| 109 | 109 | | are obtained to decide the question within ninety days of 24 |
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| 110 | 110 | | distributing the amendment to the lot owners, the amendment 25 |
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| 111 | 111 | | may be made if the association provides a second notice to 26 |
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| 112 | 112 | | all lot owners containing a statement that the proposed 27 |
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| 113 | 113 | | amendment will be deemed approved by the lot owners unless 28 |
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| 114 | 114 | | one-third of the votes in the association submit a vote to 29 |
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| 115 | 115 | | reject the proposed amendment within sixty days of the date 30 |
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| 116 | 116 | | of the second notice with a copy of the proposed amendment. 31 |
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| 117 | 117 | | 7. The board of directors is authorized to amend 32 |
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| 118 | 118 | | governing documents to correct drafting or technical errors. 33 |
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| 119 | 119 | | 448.330. An owners association shall be organized 1 |
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| 120 | 120 | | prior to the conveyance of the first lot in the planned 2 |
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| 121 | 121 | | community. The association shall be incorporated as a 3 |
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| 122 | 122 | | mutual benefit nonprofit corporation under chapter 355 no 4 |
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| 123 | 123 | | later than one year from the date of transfer of the control 5 |
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| 124 | 124 | | from the declarant. For an association not incorporated 6 |
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| 125 | 125 | | under chapter 355 as of January 1, 2025, the boa rd of 7 |
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| 126 | 126 | | directors shall be authorized to form such corporation and 8 |
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| 127 | 127 | | the nonprofit corporation shall be deemed to be the 9 |
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| 128 | 128 | | successor to the unincorporated association. No assignment 10 SB 1324 5 |
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| 129 | 129 | | agreement or other legal instrument shall be required to 11 |
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| 130 | 130 | | effectuate the assignment of duties and obligations from the 12 |
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| 131 | 131 | | unincorporated association to its successor. If a 13 |
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| 132 | 132 | | declaration contains the same provisions as required under 14 |
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| 133 | 133 | | chapter 355 for bylaws of the association, the association 15 |
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| 134 | 134 | | need not adopt bylaws; provided, howeve r, the amendment 16 |
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| 135 | 135 | | procedure of the declaration shall govern all provisions of 17 |
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| 136 | 136 | | said declaration. 18 |
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| 137 | 137 | | 448.335. 1. After transition of control of the 1 |
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| 138 | 138 | | association from the declarant pursuant to the provisions of 2 |
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| 139 | 139 | | the declaration, if an elect ion of the board of directors is 3 |
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| 140 | 140 | | not held because of a lack of quorum of the members, the 4 |
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| 141 | 141 | | board of directors shall call a special meeting of the 5 |
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| 142 | 142 | | association to conduct the election. Said special meeting 6 |
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| 143 | 143 | | shall have a quorum requirement of ten percent o f the votes 7 |
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| 144 | 144 | | in the association. If said special meeting is not held 8 |
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| 145 | 145 | | because of a lack of quorum, the board of directors shall 9 |
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| 146 | 146 | | call a second special meeting to conduct the election with 10 |
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| 147 | 147 | | no quorum requirement. No action to challenge an election 11 |
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| 148 | 148 | | held in accordance with this subsection shall be brought 12 |
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| 149 | 149 | | more than thirty days after the date of the election. 13 |
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| 150 | 150 | | 2. To ensure that the board of directors is not 14 |
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| 151 | 151 | | vacated in whole or part, the term of a director shall 15 |
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| 152 | 152 | | expire only upon the election of a repl acement. Any 16 |
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| 153 | 153 | | provision in a governing document that purports to specify a 17 |
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| 154 | 154 | | date when the term of a member of the board expires is 18 |
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| 155 | 155 | | hereby declared void as contrary to public policy and null 19 |
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| 156 | 156 | | and void. 20 |
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| 157 | 157 | | 3. In the absence of a board of directors, ten percent 21 |
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| 158 | 158 | | of the lot owners may call a special meeting to conduct an 22 |
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| 159 | 159 | | election and any quorum requirement for that special meeting 23 |
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| 160 | 160 | | shall be suspended. The newly elected board shall be deemed 24 SB 1324 6 |
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| 161 | 161 | | to be the board of directors of the association unless suit 25 |
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| 162 | 162 | | is filed within sixty days of the election held in 26 |
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| 163 | 163 | | accordance with this subsection. In the event of such suit, 27 |
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| 164 | 164 | | a court of competent jurisdiction shall appoint a receiver 28 |
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| 165 | 165 | | with experience in management of an association during the 29 |
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| 166 | 166 | | pendency of the case. 30 |
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| 167 | 167 | | 448.340. 1. After transition of control of the 1 |
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| 168 | 168 | | association from the declarant pursuant to the provisions of 2 |
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| 169 | 169 | | the declaration, the board of directors, at least annually, 3 |
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| 170 | 170 | | shall adopt a proposed budget for the planned community for 4 |
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| 171 | 171 | | consideration by the lot owners. Not later than thirty days 5 |
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| 172 | 172 | | after adoption of a proposed budget, the board of directors 6 |
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| 173 | 173 | | shall provide to all lot owners a copy of the proposed 7 |
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| 174 | 174 | | budget, including any reserves and a statement of the basis 8 |
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| 175 | 175 | | on which any reserves are calculated and funded. 9 |
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| 176 | 176 | | Simultaneously, the board of directors shall set a date, not 10 |
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| 177 | 177 | | less than fourteen days or more than thirty days after 11 |
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| 178 | 178 | | providing the summary, for a meeting of the lot owners to 12 |
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| 179 | 179 | | consider ratification of the budget. Unless at that meeting 13 |
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| 180 | 180 | | a majority of all lot owners, or a larger number if 14 |
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| 181 | 181 | | specified in the declaration, reject the budget, the budget 15 |
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| 182 | 182 | | shall be deemed ratified whether or not a quorum is 16 |
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| 183 | 183 | | present. If a proposed budget is rejected, the current 17 |
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| 184 | 184 | | budget shall remain in effect until lot owners ratify a 18 |
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| 185 | 185 | | subsequent budget. 19 |
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| 186 | 186 | | 2. Any provision in a governing document that purports 20 |
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| 187 | 187 | | to specify a maximum rate of assessments, or a limitation on 21 |
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| 188 | 188 | | the amount an assessment may be increased, is hereby 22 |
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| 189 | 189 | | declared void as contrary to public policy. 23 |
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| 190 | 190 | | 3. The association shall be entitled to recover from 24 |
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| 191 | 191 | | the lot owner any costs and reasonable attorneys' fees 25 |
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| 192 | 192 | | incurred in connection with the collection of delinquent 26 SB 1324 7 |
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| 193 | 193 | | assessments. A judgment or decree in any action brought 27 |
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| 194 | 194 | | pursuant to this section shall include costs and reasonable 28 |
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| 195 | 195 | | attorney's fees for the prevailing party with the amount of 29 |
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| 196 | 196 | | the unpaid assessments not to be considered by the court in 30 |
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| 197 | 197 | | determining the reasonableness of such attorney's fees and 31 |
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| 198 | 198 | | costs. Upon request of any party to the action, the court 32 |
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| 199 | 199 | | shall provide the basis for its determination of the award 33 |
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| 200 | 200 | | of attorney's fees and costs. Any application for execution 34 |
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| 201 | 201 | | upon a judgment shall include any post -judgment attorney's 35 |
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| 202 | 202 | | fees and costs incurred, which, unless otherwise determined 36 |
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| 203 | 203 | | by the court by motion submitted by the owner within thirty 37 |
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| 204 | 204 | | days of the date of service of such application, shall be 38 |
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| 205 | 205 | | recoverable. 39 |
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| 206 | 206 | | 4. An association is not subject to the limitation on 40 |
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| 207 | 207 | | the number of small claims petitions that may be filed as 41 |
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| 208 | 208 | | provided in subdivision (2) of subsection 1 of section 42 |
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| 209 | 209 | | 482.330, and any judgment thereafter entered, so long as the 43 |
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| 210 | 210 | | lot owner was personally served, shall be enforceable as a 44 |
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| 211 | 211 | | judgment entered by an associate circuit cour t under chapter 45 |
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| 212 | 212 | | 517. 46 |
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| 213 | 213 | | 5. If a lot is occupied by a tenant and the lot owner 47 |
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| 214 | 214 | | is delinquent in payment of assessments in excess of sixty 48 |
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| 215 | 215 | | days, the association may demand payment of subsequent 49 |
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| 216 | 216 | | rental payments until the lot owner is no longer delinque nt, 50 |
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| 217 | 217 | | the association releases the tenant from liability, or the 51 |
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| 218 | 218 | | tenant is no longer in possession of the lot. The demand to 52 |
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| 219 | 219 | | the tenant shall be in writing, with a copy to the lot 53 |
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| 220 | 220 | | owner, sent via first -class United States mail, postage pre - 54 |
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| 221 | 221 | | paid, or hand delivery. A tenant is immune from any claim 55 |
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| 222 | 222 | | by the lot owner related to rent timely paid to the 56 |
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| 223 | 223 | | association after the association has made written demand. 57 |
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| 224 | 224 | | If the tenant fails to make payment to the association, the 58 SB 1324 8 |
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| 225 | 225 | | association may issue notice and evict the tenant under 59 |
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| 226 | 226 | | chapters 534 or 535. The tenant shall not, by virtue of 60 |
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| 227 | 227 | | payment, have any rights of a lot owner to vote in an 61 |
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| 228 | 228 | | election or examine the books and records of the association. 62 |
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| 229 | 229 | | 6. After transition of control of the association 63 |
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| 230 | 230 | | pursuant to the provisions of the declaration, the board of 64 |
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| 231 | 231 | | directors may propose a special assessment or an amended 65 |
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| 232 | 232 | | budget so long as the board of directors follows the 66 |
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| 233 | 233 | | procedures in subsection 1 of this section and the lot 67 |
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| 234 | 234 | | owners do not reject it. 68 |
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| 235 | 235 | | 7. No action to challenge an assessment levied 69 |
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| 236 | 236 | | pursuant to the procedures specified in this section shall 70 |
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| 237 | 237 | | be brought more than sixty days from the first date the 71 |
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| 238 | 238 | | assessment is due. 72 |
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| 239 | 239 | | 8. After transition of control of the association 73 |
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| 240 | 240 | | pursuant to the provisions of the declaration, if the board 74 |
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| 241 | 241 | | of directors determines that a special assessment is 75 |
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| 242 | 242 | | necessary to respond to an emergency to the health or safety 76 |
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| 243 | 243 | | of lot owners or occupants: 77 |
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| 244 | 244 | | (1) The special assessment shall become effective 78 |
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| 245 | 245 | | immediately in accordance with the terms of the vote; 79 |
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| 246 | 246 | | (2) The notice of the emergency assessment shall be 80 |
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| 247 | 247 | | provided promptly to all lot owners; and 81 |
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| 248 | 248 | | (3) The board of directors may spend the funds paid on 82 |
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| 249 | 249 | | account of the emergency assessment only for the purposes 83 |
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| 250 | 250 | | described in the vote. 84 |
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| 251 | 251 | | 448.345. 1. Should a declaration compel binding 1 |
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| 252 | 252 | | arbitration as provided for in sections 435.350 to 435.470, 2 |
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| 253 | 253 | | the disclosure requirement of section 435.460 shall be 3 |
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| 254 | 254 | | included in the declaration. 4 |
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| 255 | 255 | | 2. If specified in the declaration or any other 5 |
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| 256 | 256 | | governing documents, disputes between lot owners, or between 6 SB 1324 9 |
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| 257 | 257 | | two or more lot owners regarding a matter related to the 7 |
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| 258 | 258 | | planned community, may be required to be submitted to 8 |
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| 259 | 259 | | nonbinding dispute resolution as a prerequisite to 9 |
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| 260 | 260 | | commencement of a judicial proceeding. 10 |
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| 261 | 261 | | |
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