| 1 | 1 | | FIRSTREGULARSESSION |
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| 2 | 2 | | HOUSEBILLNO.1177 |
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| 3 | 3 | | 103RDGENERALASSEMBLY |
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| 4 | 4 | | INTRODUCEDBYREPRESENTATIVECOSTLOW. |
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| 5 | 5 | | 2538H.01I JOSEPHENGLER,ChiefClerk |
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| 6 | 6 | | ANACT |
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| 7 | 7 | | Toamendchapter442,RSMo,byaddingtheretosixnewsectionsrelatingtobinding |
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| 8 | 8 | | agreementsrunningwithland. |
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| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
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| 10 | 10 | | SectionA.Chapter442,RSMo,isamendedbyaddingtheretosixnewsections,tobe |
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| 11 | 11 | | 2knownassections442.621,442.626,442.631,442.636,442.641,and442.646,toreadas |
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| 12 | 12 | | 3follows: |
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| 13 | 13 | | 442.621.1.Sections442.621to442.646shallbeknownandmaybecitedasthe |
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| 14 | 14 | | 2"MissouriHomeowners'AssociationAct". |
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| 15 | 15 | | 3 2.Asusedinsections442.621to442.646,thefollowingtermsmean: |
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| 16 | 16 | | 4 (1)"Allocatedinterest",thecommonexpenseliabilityandvotesinthe |
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| 17 | 17 | | 5association; |
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| 18 | 18 | | 6 (2)"Assessment",thesumattributabletoeachlotandduetotheassociation |
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| 19 | 19 | | 7baseduponthelot'scommonexpenseliabilityorothermoneysowedtotheassociation |
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| 20 | 20 | | 8undersections442.621to442.646orthegoverningdocumentsoftheassociation; |
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| 21 | 21 | | 9 (3)"Association",thelotowners'association; |
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| 22 | 22 | | 10 (4)"Boardofdirectors",thegoverningbody,regardlessofname,thathasthe |
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| 23 | 23 | | 11powertoactonbehalfoftheassociationasdesignatedinthegoverningdocuments; |
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| 24 | 24 | | 12 (5)"Commonexpense",expendituresmadeby,orthefinancialliabilitiesof,the |
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| 25 | 25 | | 13associationincluding,butnotlimitedto,anyallocationtoreserves; |
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| 26 | 26 | | 14 (6)"Commonexpenseliability",liabilityforcommonexpensesallocatedtoeach |
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| 27 | 27 | | 15lot; |
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| 28 | 28 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 29 | 29 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 (7)"Commonground",anyrealproperty,otherthanalot,thatiswithina |
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| 30 | 30 | | 17plannedcommunityandthatisownedorleasedbytheassociation; |
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| 31 | 31 | | 18 (8)"Declarant",apersonorgroupofpersonsactinginconcertthat: |
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| 32 | 32 | | 19 (a)Aspartofacommonpromotionalplan,offerstodisposeoftheinterestofthe |
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| 33 | 33 | | 20personorgroupofpersonsinalotnotpreviouslydisposedof;or |
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| 34 | 34 | | 21 (b)Reservesorsucceedstoanydeclarantright; |
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| 35 | 35 | | 22 (9)"Declaration",therecordedinstrument,howeverdenominated,thatcreates |
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| 36 | 36 | | 23aplannedcommunity; |
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| 37 | 37 | | 24 (10)"Governingdocuments",thedeclaration,articlesofincorporation,bylaws, |
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| 38 | 38 | | 25andrulesandregulationsoftheassociation; |
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| 39 | 39 | | 26 (11)"Lot",aphysicalportionoftheplannedcommunitydesignatedforseparate |
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| 40 | 40 | | 27ownershiporoccupancyasdepictedontheplatsoftheplannedcommunityorasmore |
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| 41 | 41 | | 28particularlydescribedinadeclaration; |
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| 42 | 42 | | 29 (12)"Lotowner",adeclarantorotherpersonwhoownsalot,exceptthatthe |
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| 43 | 43 | | 30termshallnotincludeapersonhavinganinterestinalotsolelyassecurityforan |
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| 44 | 44 | | 31obligation; |
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| 45 | 45 | | 32 (13)"Plannedcommunity",realpropertydescribedinadeclarationthatsets |
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| 46 | 46 | | 33forththedutiesandobligationsoftheassociationandlotowners.Forthepurposesof |
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| 47 | 47 | | 34sections442.621to442.646,nocooperative,timeshare,orcondominiumisaplanned |
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| 48 | 48 | | 35community,exceptthatacooperative,timeshare,orcondominiummaybepartofa |
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| 49 | 49 | | 36plannedcommunity,oradeclarationmayexpresslyprovidethatacooperative, |
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| 50 | 50 | | 37timeshare,orcondominiumshallbeaplannedcommunitysubjecttosections442.621to |
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| 51 | 51 | | 38442.646. |
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| 52 | 52 | | 442.626.1.Sections442.621to442.646shallapplytoallplannedcommunities |
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| 53 | 53 | | 2andalleventsandcircumstancesrelatedtosuchplannedcommunitiesoccurringonand |
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| 54 | 54 | | 3afterJanuary1,2026. |
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| 55 | 55 | | 4 2.Sections442.621to442.646shallnotbeconstruedtoinvalidateexisting |
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| 56 | 56 | | 5provisionsofthedeclaration,bylaws,articlesofincorporation,orplatsofsuchplanned |
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| 57 | 57 | | 6communities. |
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| 58 | 58 | | 7 3.Nothinginsections442.621to442.646shallimpact,hinder,impair,alter,or |
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| 59 | 59 | | 8affecttherightsofadeclaranttoadminister,develop,construct,conveyanyrights |
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| 60 | 60 | | 9relatedtodevelopmentrightsordeclarantrights,orconveyrealpropertysubjecttothe |
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| 61 | 61 | | 10declaration,including,butnotlimitedto,theauthoritytoalterthehousingproductor |
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| 62 | 62 | | 11style,removeoraddrealpropertyfromortotheplannedcommunity,orconverta |
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| 63 | 63 | | 12portionoftheplannedcommunityfromalottocommongroundorfromcommon |
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| 64 | 64 | | 13groundtoalot. |
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| 65 | 65 | | HB1177 2 14 4.Nothinginsections442.621to442.646shallimpact,hinder,impair,alter,or |
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| 66 | 66 | | 15affecttherightsofaholderofasecurityinterestinrealpropertywithinaplanned |
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| 67 | 67 | | 16community,providedthatthesecurityinterestisrecordedpriortorecordingofthe |
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| 68 | 68 | | 17declarationoranymodificationsoramendmentstothedeclaration. |
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| 69 | 69 | | 18 5.Exceptasexpresslyprovidedinsections442.621to442.646,theeffectofsuch |
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| 70 | 70 | | 19sectionsshallnotbevariedbyagreement,andrightsconferredbysuchsectionsshallnot |
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| 71 | 71 | | 20bewaived. |
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| 72 | 72 | | 21 6.Forallpurposes,eachlotconstitutesaseparateparcelofrealpropertyand |
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| 73 | 73 | | 22shallbeseparatelyassessedandtaxedconsistentwithsuchparcel'srestricteduse.The |
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| 74 | 74 | | 23personalpropertyofanassociation,ifany,shallnotbesubjecttotaxationunderchapter |
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| 75 | 75 | | 24137,andcommongroundshallnotbesubjecttoseparateassessmentortaxation. |
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| 76 | 76 | | 442.631.1.Unlessadeclarationotherwiseprovides,consentofthedeclarantis |
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| 77 | 77 | | 2requiredforanyamendmenttoanygoverningdocumentthatwouldimpact,hinder, |
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| 78 | 78 | | 3impair,alter,oraffecttherightsofadeclaranttoadminister,develop,construct,convey |
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| 79 | 79 | | 4anyrightsrelatedtodevelopmentrightsordeclarantrights,orconveyrealproperty |
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| 80 | 80 | | 5subjecttothedeclaration,including,butnotlimitedto,theauthoritytoalterthe |
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| 81 | 81 | | 6housingproductorstyle,removeoraddrealpropertyfromortotheplanned |
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| 82 | 82 | | 7community,orconvertaportionoftheplannedcommunityfromalottocommon |
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| 83 | 83 | | 8groundorfromcommongroundtoalot. |
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| 84 | 84 | | 9 2.Thedeclarationmaybeamendedundertheproceduresascontainedinthe |
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| 85 | 85 | | 10declaration. |
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| 86 | 86 | | 11 3.Ifadeclarationissilent,aplannedcommunityhasmultipledeclarationswith |
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| 87 | 87 | | 12differingamendmentprocedures,oranyprovisioninadeclarationspecifyinga |
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| 88 | 88 | | 13percentagelargerthansixty-sevenpercentofthevotesintheassociationtoamendthe |
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| 89 | 89 | | 14declarationisherebydeclaredvoidascontrarytopublicpolicy,anduntilamended, |
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| 90 | 90 | | 15suchprovisionshallbedeemedtospecifyapercentageofsixty-sevenpercentofthevotes |
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| 91 | 91 | | 16intheassociationortheloweroftheconflictingpercentagesifoneormoreisbelow |
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| 92 | 92 | | 17sixty-sevenpercent. |
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| 93 | 93 | | 18 4.Aunanimousvoteofthelotownersisrequiredtoamendanydeclarationto |
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| 94 | 94 | | 19changetheallocatedinterestofalot.Aunanimousvoteofthelotownersisnotrequired |
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| 95 | 95 | | 20tochangeoraddarestrictionthatmaybemoreburdensome. |
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| 96 | 96 | | 21 5.Noactiontochallengethevalidityofanamendmenttothedeclarationshallbe |
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| 97 | 97 | | 22broughtmorethanoneyearaftertheamendmenttothedeclarationisrecorded. |
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| 98 | 98 | | 23 6.Ifanamendmenttothedeclarationisproposedbytheboardofdirectorsand |
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| 99 | 99 | | 24aninsufficientnumberofvotesareobtainedtodecidethequestionwithinninetydaysof |
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| 100 | 100 | | 25distributingtheamendmenttothelotowners,thedeclarationmaybeamendedifthe |
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| 101 | 101 | | 26associationprovidesanoticetoalllotownerscontainingacopyoftheproposed |
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| 102 | 102 | | HB1177 3 27amendmentandastatementthattheproposedamendmentwillbedeemedapprovedby |
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| 103 | 103 | | 28thatlotownerunlessone-thirdofthevotesintheassociationsubmitavotetorejectthe |
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| 104 | 104 | | 29proposedamendmentwithinsixtydaysofthedateofthenotice. |
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| 105 | 105 | | 30 7.Theboardofdirectorsisauthorizedtoamendgoverningdocumentstocorrect |
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| 106 | 106 | | 31draftingortechnicalerrors. |
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| 107 | 107 | | 442.636.1.Anowners'associationshallbeorganizedpriortoconveyanceofthe |
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| 108 | 108 | | 2firstlotintheplannedcommunity.Theassociationshallbeorganizedasamutual |
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| 109 | 109 | | 3benefitnonprofitcorporationunderchapter355nolaterthanoneyearfromthedateof |
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| 110 | 110 | | 4transferofcontrolfromthedeclarant.Foranassociationnotincorporatedunder |
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| 111 | 111 | | 5chapter355beforeJanuary1,2026,theboardofdirectorsshallbeauthorizedtoform |
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| 112 | 112 | | 6suchcorporation,andthenonprofitcorporationshallbedeemedtobethesuccessorto |
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| 113 | 113 | | 7theunincorporatedassociation.Noassignmentagreementorotherlegalinstrument |
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| 114 | 114 | | 8shallberequiredtoeffectuatetheassignmentofdutiesandobligations.Ifadeclaration |
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| 115 | 115 | | 9containsthesameprovisionsasrequiredunderchapter355forbylawsofthe |
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| 116 | 116 | | 10association,theassociationneednotadoptbylaws,exceptthattheamendment |
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| 117 | 117 | | 11procedureofthedeclarationshallgovernallprovisionsofsuchdeclaration. |
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| 118 | 118 | | 12 2.Aftertransitionofcontroloftheassociationfromthedeclarantunderthe |
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| 119 | 119 | | 13provisionsofthedeclaration,ifanelectionoftheboardofdirectorsisnotheldbecause |
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| 120 | 120 | | 14ofalackofquorumofthemembers,theboardofdirectorsshallcallaspecialmeetingof |
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| 121 | 121 | | 15theassociationtoconducttheelection.Suchspecialmeetingshallhaveaquorum |
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| 122 | 122 | | 16requirementoftenpercentofthevotesintheassociation.Ifsuchspecialmeetingisnot |
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| 123 | 123 | | 17heldbecauseofalackofquorum,theboardofdirectorsshallcallasecondspecial |
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| 124 | 124 | | 18meetingtoconducttheelectionwithnoquorumrequirement.Noactiontochallengean |
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| 125 | 125 | | 19electionshallbebroughtmorethanthirtydaysfromthedateoftheelection. |
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| 126 | 126 | | 20 3.Toensurethattheboardofdirectorsisnotvacatedinwholeorpart,theterm |
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| 127 | 127 | | 21ofadirectorexpiresupontheelectionofareplacement.Anyprovisioninagoverning |
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| 128 | 128 | | 22documentthatpurportstospecifyadatewhenatermofamemberoftheboardexpires |
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| 129 | 129 | | 23isherebydeclaredvoidascontrarytopublicpolicyandisnullandvoid. |
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| 130 | 130 | | 24 4.Intheabsenceofaboardofdirectors,tenpercentofthelotownersmaycalla |
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| 131 | 131 | | 25specialmeetingtoconductanelectionandanyquorumrequirementshallbesuspended. |
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| 132 | 132 | | 26Thenewlyelectedboardshallbedeemedtobetheboardofdirectorsoftheassociation |
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| 133 | 133 | | 27unlesssuitisfiledwithinsixtydaysoftheelection.Insuchevent,acourtofcompetent |
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| 134 | 134 | | 28supervisionshallappointareceiverwithexperienceinmanagementofanassociation |
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| 135 | 135 | | 29duringthependencyofthecase. |
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| 136 | 136 | | 442.641.1.(1)Aftertransitionofcontroloftheassociationfromthedeclarant |
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| 137 | 137 | | 2undertheprovisionsofthedeclaration,theboardofdirectors,atleastannually,shall |
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| 138 | 138 | | 3adoptaproposedbudgetfortheplannedcommunityforconsiderationbythelot |
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| 139 | 139 | | HB1177 4 4owners.Nolaterthanthirtydaysafteradoptionofaproposedbudget,theboardof |
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| 140 | 140 | | 5directorsshallprovidetoalllotownersacopyoftheproposedbudgetincluding,butnot |
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| 141 | 141 | | 6limitedto,anyreservesandastatementofthebasisuponwhichanyreservesare |
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| 142 | 142 | | 7calculatedandfunded. |
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| 143 | 143 | | 8 (2)Atthesametimeasthecopyoftheproposedbudgetisprovidedunder |
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| 144 | 144 | | 9subdivision(1)ofthissubsection,theboardofdirectorsshallsetadateatleastfourteen |
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| 145 | 145 | | 10daysafterbutnolaterthanthirtydaysafterprovidingthesummaryforameetingofthe |
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| 146 | 146 | | 11lotownerstoconsiderratificationofthebudget.Unlessatsuchmeetingamajorityof |
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| 147 | 147 | | 12alllotownersoranylargernumberspecifiedinthedeclarationrejectthebudget,the |
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| 148 | 148 | | 13budgetshallbedeemedratifiedregardlessofwhetheraquorumispresent.Ifa |
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| 149 | 149 | | 14proposedbudgetisrejected,thecurrentbudgetshallcontinueuntillotownersratifya |
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| 150 | 150 | | 15subsequentbudget. |
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| 151 | 151 | | 16 2.Anyprovisioninagoverningdocumentthatpurportstospecifyamaximum |
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| 152 | 152 | | 17rateofassessments,oralimitationontheamountanassessmentmaybeincreased,is |
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| 153 | 153 | | 18herebydeclaredvoidascontrarytopublicpolicy.Assessmentincreasesunderthis |
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| 154 | 154 | | 19sectionshallnothavealimitationontheamountanassessmentmaybeincreased. |
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| 155 | 155 | | 20 3.Theassociationshallbeentitledtorecoverfromthelotowneranycostsand |
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| 156 | 156 | | 21reasonableattorney'sfeesincurredinconnectionwiththecollectionofdelinquent |
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| 157 | 157 | | 22assessments.Ajudgmentordecreeinanyactionbroughtunderthissectionshall |
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| 158 | 158 | | 23includecostsandreasonableattorney'sfeesfortheprevailingpartywiththeamountof |
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| 159 | 159 | | 24theunpaidassessmentsnottobeconsideredbythecourtindeterminingthe |
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| 160 | 160 | | 25reasonablenessofsuchattorney'sfeesandcosts.Uponrequestofanyparty,the |
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| 161 | 161 | | 26courtshallprovideitsbasisforitsdeterminationoftheawardofattorney'sfeesand |
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| 162 | 162 | | 27costs.Anyapplicationforexecutionuponajudgmentshallincludeanypostjudgment |
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| 163 | 163 | | 28attorney'sfeesandcostsincurred,whichshallberecoverableunlessotherwise |
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| 164 | 164 | | 29determinedbythecourtbymotionsubmittedbytheownerwithinthirtydaysofthe |
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| 165 | 165 | | 30dateofserviceofsuchapplication. |
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| 166 | 166 | | 31 4.Anassociationisnotsubjecttothelimitationonthenumberofsmallclaims |
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| 167 | 167 | | 32petitionsthatmaybefiledasprovidedinsubdivision(2)ofsubsection1ofsection |
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| 168 | 168 | | 33482.330,andanyjudgmentthereafterentered,solongasthelotownerwaspersonally |
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| 169 | 169 | | 34served,shallbeenforceableasajudgmententeredbyanassociatecircuitcourtunder |
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| 170 | 170 | | 35chapter517. |
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| 171 | 171 | | 36 5.Ifalotisoccupiedbyatenantandthelotownerisdelinquentinpaymentof |
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| 172 | 172 | | 37assessmentsinexcessofsixtydays,theassociationmaydemandpaymentofsubsequent |
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| 173 | 173 | | 38rentalpaymentsuntilthelotownerisnolongerdelinquent,theassociationreleasesthe |
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| 174 | 174 | | 39tenant,orthetenantisnolongerinpossessionofthelot.Thedemandtothetenantshall |
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| 175 | 175 | | 40beinwriting,withacopytothelotowner,sentviafirst-classUnitedStatesmail,postage |
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| 176 | 176 | | HB1177 5 41prepaid,orhanddelivery.Atenantisimmunefromanyclaimbythelotownerrelated |
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| 177 | 177 | | 42totherenttimelypaidtotheassociationaftertheassociationhasmadewrittendemand. |
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| 178 | 178 | | 43Ifthetenantfailstomakepaymenttotheassociation,theassociationmayissuenotice |
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| 179 | 179 | | 44andevictunderchapter534.Thetenantdoesnot,byvirtueofpayment,haveanyrights |
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| 180 | 180 | | 45ofalotownertovoteinanelectionorexaminethebooksandrecordsoftheassociation. |
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| 181 | 181 | | 46 6.Aftertransitionofcontroloftheassociationundertheprovisionsofthe |
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| 182 | 182 | | 47declaration,theboardofdirectorsmayproposeaspecialassessmentoranamended |
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| 183 | 183 | | 48budgetsolongastheboardofdirectorsfollowstheproceduresinsubsection1ofthis |
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| 184 | 184 | | 49sectionandthelotownersdonotrejectsuchspecialassessment. |
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| 185 | 185 | | 50 7.Noactiontochallengeanassessmentleviedundertheproceduresprovidedfor |
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| 186 | 186 | | 51inthissectionshallbebroughtmorethansixtydaysfromthefirstdatetheassessmentis |
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| 187 | 187 | | 52due. |
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| 188 | 188 | | 53 8.Aftertransitionofcontroloftheassociationundertheprovisionsofthe |
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| 189 | 189 | | 54declaration,iftheboardofdirectorsdeterminesthataspecialassessmentisnecessaryto |
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| 190 | 190 | | 55respondtoanemergencytothehealthorsafetyoflotownersoroccupants: |
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| 191 | 191 | | 56 (1)Thespecialassessmentshallbecomeeffectiveimmediatelyinaccordance |
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| 192 | 192 | | 57withthetermsofthevote; |
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| 193 | 193 | | 58 (2)Thenoticeoftheemergencyassessmentshallbeprovidedpromptlytoalllot |
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| 194 | 194 | | 59owners;and |
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| 195 | 195 | | 60 (3)Theboardofdirectorsmayspendthemoneyspaidonaccountofthe |
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| 196 | 196 | | 61emergencyassessmentonlyforthepurposesdescribedinthevote. |
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| 197 | 197 | | 442.646.1.Ifadeclarationcompelsbindingarbitrationasprovidedinsections |
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| 198 | 198 | | 2435.350to435.470,thedisclosurerequirementofsection435.460shallbeanexhibitto |
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| 199 | 199 | | 3thedeclaration. |
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| 200 | 200 | | 4 2.Subjecttothedeclarationandanyadditionalrequirementsorconditions, |
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| 201 | 201 | | 5disputesbetweenlotownersorbetweentwoormorelotownersregardingamatter |
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| 202 | 202 | | 6relatedtotheplannedcommunitymayberequiredtobesubmittedtononbinding |
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| 203 | 203 | | 7disputeresolutionasaprerequisitetocommencementofajudicialproceeding. |
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| 204 | 204 | | âś” |
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| 205 | 205 | | HB1177 6 |
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