FIRSTREGULARSESSION
HOUSEBILLNO.1177
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECOSTLOW.
2538H.01I JOSEPHENGLER,ChiefClerk
ANACT
Toamendchapter442,RSMo,byaddingtheretosixnewsectionsrelatingtobinding
agreementsrunningwithland.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter442,RSMo,isamendedbyaddingtheretosixnewsections,tobe
2knownassections442.621,442.626,442.631,442.636,442.641,and442.646,toreadas
3follows:
442.621.1.Sections442.621to442.646shallbeknownandmaybecitedasthe
2"MissouriHomeowners'AssociationAct".
3 2.Asusedinsections442.621to442.646,thefollowingtermsmean:
4 (1)"Allocatedinterest",thecommonexpenseliabilityandvotesinthe
5association;
6 (2)"Assessment",thesumattributabletoeachlotandduetotheassociation
7baseduponthelot'scommonexpenseliabilityorothermoneysowedtotheassociation
8undersections442.621to442.646orthegoverningdocumentsoftheassociation;
9 (3)"Association",thelotowners'association;
10 (4)"Boardofdirectors",thegoverningbody,regardlessofname,thathasthe
11powertoactonbehalfoftheassociationasdesignatedinthegoverningdocuments;
12 (5)"Commonexpense",expendituresmadeby,orthefinancialliabilitiesof,the
13associationincluding,butnotlimitedto,anyallocationtoreserves;
14 (6)"Commonexpenseliability",liabilityforcommonexpensesallocatedtoeach
15lot;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 16 (7)"Commonground",anyrealproperty,otherthanalot,thatiswithina
17plannedcommunityandthatisownedorleasedbytheassociation;
18 (8)"Declarant",apersonorgroupofpersonsactinginconcertthat:
19 (a)Aspartofacommonpromotionalplan,offerstodisposeoftheinterestofthe
20personorgroupofpersonsinalotnotpreviouslydisposedof;or
21 (b)Reservesorsucceedstoanydeclarantright;
22 (9)"Declaration",therecordedinstrument,howeverdenominated,thatcreates
23aplannedcommunity;
24 (10)"Governingdocuments",thedeclaration,articlesofincorporation,bylaws,
25andrulesandregulationsoftheassociation;
26 (11)"Lot",aphysicalportionoftheplannedcommunitydesignatedforseparate
27ownershiporoccupancyasdepictedontheplatsoftheplannedcommunityorasmore
28particularlydescribedinadeclaration;
29 (12)"Lotowner",adeclarantorotherpersonwhoownsalot,exceptthatthe
30termshallnotincludeapersonhavinganinterestinalotsolelyassecurityforan
31obligation;
32 (13)"Plannedcommunity",realpropertydescribedinadeclarationthatsets
33forththedutiesandobligationsoftheassociationandlotowners.Forthepurposesof
34sections442.621to442.646,nocooperative,timeshare,orcondominiumisaplanned
35community,exceptthatacooperative,timeshare,orcondominiummaybepartofa
36plannedcommunity,oradeclarationmayexpresslyprovidethatacooperative,
37timeshare,orcondominiumshallbeaplannedcommunitysubjecttosections442.621to
38442.646.
442.626.1.Sections442.621to442.646shallapplytoallplannedcommunities
2andalleventsandcircumstancesrelatedtosuchplannedcommunitiesoccurringonand
3afterJanuary1,2026.
4 2.Sections442.621to442.646shallnotbeconstruedtoinvalidateexisting
5provisionsofthedeclaration,bylaws,articlesofincorporation,orplatsofsuchplanned
6communities.
7 3.Nothinginsections442.621to442.646shallimpact,hinder,impair,alter,or
8affecttherightsofadeclaranttoadminister,develop,construct,conveyanyrights
9relatedtodevelopmentrightsordeclarantrights,orconveyrealpropertysubjecttothe
10declaration,including,butnotlimitedto,theauthoritytoalterthehousingproductor
11style,removeoraddrealpropertyfromortotheplannedcommunity,orconverta
12portionoftheplannedcommunityfromalottocommongroundorfromcommon
13groundtoalot.
HB1177 2 14 4.Nothinginsections442.621to442.646shallimpact,hinder,impair,alter,or
15affecttherightsofaholderofasecurityinterestinrealpropertywithinaplanned
16community,providedthatthesecurityinterestisrecordedpriortorecordingofthe
17declarationoranymodificationsoramendmentstothedeclaration.
18 5.Exceptasexpresslyprovidedinsections442.621to442.646,theeffectofsuch
19sectionsshallnotbevariedbyagreement,andrightsconferredbysuchsectionsshallnot
20bewaived.
21 6.Forallpurposes,eachlotconstitutesaseparateparcelofrealpropertyand
22shallbeseparatelyassessedandtaxedconsistentwithsuchparcel'srestricteduse.The
23personalpropertyofanassociation,ifany,shallnotbesubjecttotaxationunderchapter
24137,andcommongroundshallnotbesubjecttoseparateassessmentortaxation.
442.631.1.Unlessadeclarationotherwiseprovides,consentofthedeclarantis
2requiredforanyamendmenttoanygoverningdocumentthatwouldimpact,hinder,
3impair,alter,oraffecttherightsofadeclaranttoadminister,develop,construct,convey
4anyrightsrelatedtodevelopmentrightsordeclarantrights,orconveyrealproperty
5subjecttothedeclaration,including,butnotlimitedto,theauthoritytoalterthe
6housingproductorstyle,removeoraddrealpropertyfromortotheplanned
7community,orconvertaportionoftheplannedcommunityfromalottocommon
8groundorfromcommongroundtoalot.
9 2.Thedeclarationmaybeamendedundertheproceduresascontainedinthe
10declaration.
11 3.Ifadeclarationissilent,aplannedcommunityhasmultipledeclarationswith
12differingamendmentprocedures,oranyprovisioninadeclarationspecifyinga
13percentagelargerthansixty-sevenpercentofthevotesintheassociationtoamendthe
14declarationisherebydeclaredvoidascontrarytopublicpolicy,anduntilamended,
15suchprovisionshallbedeemedtospecifyapercentageofsixty-sevenpercentofthevotes
16intheassociationortheloweroftheconflictingpercentagesifoneormoreisbelow
17sixty-sevenpercent.
18 4.Aunanimousvoteofthelotownersisrequiredtoamendanydeclarationto
19changetheallocatedinterestofalot.Aunanimousvoteofthelotownersisnotrequired
20tochangeoraddarestrictionthatmaybemoreburdensome.
21 5.Noactiontochallengethevalidityofanamendmenttothedeclarationshallbe
22broughtmorethanoneyearaftertheamendmenttothedeclarationisrecorded.
23 6.Ifanamendmenttothedeclarationisproposedbytheboardofdirectorsand
24aninsufficientnumberofvotesareobtainedtodecidethequestionwithinninetydaysof
25distributingtheamendmenttothelotowners,thedeclarationmaybeamendedifthe
26associationprovidesanoticetoalllotownerscontainingacopyoftheproposed
HB1177 3 27amendmentandastatementthattheproposedamendmentwillbedeemedapprovedby
28thatlotownerunlessone-thirdofthevotesintheassociationsubmitavotetorejectthe
29proposedamendmentwithinsixtydaysofthedateofthenotice.
30 7.Theboardofdirectorsisauthorizedtoamendgoverningdocumentstocorrect
31draftingortechnicalerrors.
442.636.1.Anowners'associationshallbeorganizedpriortoconveyanceofthe
2firstlotintheplannedcommunity.Theassociationshallbeorganizedasamutual
3benefitnonprofitcorporationunderchapter355nolaterthanoneyearfromthedateof
4transferofcontrolfromthedeclarant.Foranassociationnotincorporatedunder
5chapter355beforeJanuary1,2026,theboardofdirectorsshallbeauthorizedtoform
6suchcorporation,andthenonprofitcorporationshallbedeemedtobethesuccessorto
7theunincorporatedassociation.Noassignmentagreementorotherlegalinstrument
8shallberequiredtoeffectuatetheassignmentofdutiesandobligations.Ifadeclaration
9containsthesameprovisionsasrequiredunderchapter355forbylawsofthe
10association,theassociationneednotadoptbylaws,exceptthattheamendment
11procedureofthedeclarationshallgovernallprovisionsofsuchdeclaration.
12 2.Aftertransitionofcontroloftheassociationfromthedeclarantunderthe
13provisionsofthedeclaration,ifanelectionoftheboardofdirectorsisnotheldbecause
14ofalackofquorumofthemembers,theboardofdirectorsshallcallaspecialmeetingof
15theassociationtoconducttheelection.Suchspecialmeetingshallhaveaquorum
16requirementoftenpercentofthevotesintheassociation.Ifsuchspecialmeetingisnot
17heldbecauseofalackofquorum,theboardofdirectorsshallcallasecondspecial
18meetingtoconducttheelectionwithnoquorumrequirement.Noactiontochallengean
19electionshallbebroughtmorethanthirtydaysfromthedateoftheelection.
20 3.Toensurethattheboardofdirectorsisnotvacatedinwholeorpart,theterm
21ofadirectorexpiresupontheelectionofareplacement.Anyprovisioninagoverning
22documentthatpurportstospecifyadatewhenatermofamemberoftheboardexpires
23isherebydeclaredvoidascontrarytopublicpolicyandisnullandvoid.
24 4.Intheabsenceofaboardofdirectors,tenpercentofthelotownersmaycalla
25specialmeetingtoconductanelectionandanyquorumrequirementshallbesuspended.
26Thenewlyelectedboardshallbedeemedtobetheboardofdirectorsoftheassociation
27unlesssuitisfiledwithinsixtydaysoftheelection.Insuchevent,acourtofcompetent
28supervisionshallappointareceiverwithexperienceinmanagementofanassociation
29duringthependencyofthecase.
442.641.1.(1)Aftertransitionofcontroloftheassociationfromthedeclarant
2undertheprovisionsofthedeclaration,theboardofdirectors,atleastannually,shall
3adoptaproposedbudgetfortheplannedcommunityforconsiderationbythelot
HB1177 4 4owners.Nolaterthanthirtydaysafteradoptionofaproposedbudget,theboardof
5directorsshallprovidetoalllotownersacopyoftheproposedbudgetincluding,butnot
6limitedto,anyreservesandastatementofthebasisuponwhichanyreservesare
7calculatedandfunded.
8 (2)Atthesametimeasthecopyoftheproposedbudgetisprovidedunder
9subdivision(1)ofthissubsection,theboardofdirectorsshallsetadateatleastfourteen
10daysafterbutnolaterthanthirtydaysafterprovidingthesummaryforameetingofthe
11lotownerstoconsiderratificationofthebudget.Unlessatsuchmeetingamajorityof
12alllotownersoranylargernumberspecifiedinthedeclarationrejectthebudget,the
13budgetshallbedeemedratifiedregardlessofwhetheraquorumispresent.Ifa
14proposedbudgetisrejected,thecurrentbudgetshallcontinueuntillotownersratifya
15subsequentbudget.
16 2.Anyprovisioninagoverningdocumentthatpurportstospecifyamaximum
17rateofassessments,oralimitationontheamountanassessmentmaybeincreased,is
18herebydeclaredvoidascontrarytopublicpolicy.Assessmentincreasesunderthis
19sectionshallnothavealimitationontheamountanassessmentmaybeincreased.
20 3.Theassociationshallbeentitledtorecoverfromthelotowneranycostsand
21reasonableattorney'sfeesincurredinconnectionwiththecollectionofdelinquent
22assessments.Ajudgmentordecreeinanyactionbroughtunderthissectionshall
23includecostsandreasonableattorney'sfeesfortheprevailingpartywiththeamountof
24theunpaidassessmentsnottobeconsideredbythecourtindeterminingthe
25reasonablenessofsuchattorney'sfeesandcosts.Uponrequestofanyparty,the
26courtshallprovideitsbasisforitsdeterminationoftheawardofattorney'sfeesand
27costs.Anyapplicationforexecutionuponajudgmentshallincludeanypostjudgment
28attorney'sfeesandcostsincurred,whichshallberecoverableunlessotherwise
29determinedbythecourtbymotionsubmittedbytheownerwithinthirtydaysofthe
30dateofserviceofsuchapplication.
31 4.Anassociationisnotsubjecttothelimitationonthenumberofsmallclaims
32petitionsthatmaybefiledasprovidedinsubdivision(2)ofsubsection1ofsection
33482.330,andanyjudgmentthereafterentered,solongasthelotownerwaspersonally
34served,shallbeenforceableasajudgmententeredbyanassociatecircuitcourtunder
35chapter517.
36 5.Ifalotisoccupiedbyatenantandthelotownerisdelinquentinpaymentof
37assessmentsinexcessofsixtydays,theassociationmaydemandpaymentofsubsequent
38rentalpaymentsuntilthelotownerisnolongerdelinquent,theassociationreleasesthe
39tenant,orthetenantisnolongerinpossessionofthelot.Thedemandtothetenantshall
40beinwriting,withacopytothelotowner,sentviafirst-classUnitedStatesmail,postage
HB1177 5 41prepaid,orhanddelivery.Atenantisimmunefromanyclaimbythelotownerrelated
42totherenttimelypaidtotheassociationaftertheassociationhasmadewrittendemand.
43Ifthetenantfailstomakepaymenttotheassociation,theassociationmayissuenotice
44andevictunderchapter534.Thetenantdoesnot,byvirtueofpayment,haveanyrights
45ofalotownertovoteinanelectionorexaminethebooksandrecordsoftheassociation.
46 6.Aftertransitionofcontroloftheassociationundertheprovisionsofthe
47declaration,theboardofdirectorsmayproposeaspecialassessmentoranamended
48budgetsolongastheboardofdirectorsfollowstheproceduresinsubsection1ofthis
49sectionandthelotownersdonotrejectsuchspecialassessment.
50 7.Noactiontochallengeanassessmentleviedundertheproceduresprovidedfor
51inthissectionshallbebroughtmorethansixtydaysfromthefirstdatetheassessmentis
52due.
53 8.Aftertransitionofcontroloftheassociationundertheprovisionsofthe
54declaration,iftheboardofdirectorsdeterminesthataspecialassessmentisnecessaryto
55respondtoanemergencytothehealthorsafetyoflotownersoroccupants:
56 (1)Thespecialassessmentshallbecomeeffectiveimmediatelyinaccordance
57withthetermsofthevote;
58 (2)Thenoticeoftheemergencyassessmentshallbeprovidedpromptlytoalllot
59owners;and
60 (3)Theboardofdirectorsmayspendthemoneyspaidonaccountofthe
61emergencyassessmentonlyforthepurposesdescribedinthevote.
442.646.1.Ifadeclarationcompelsbindingarbitrationasprovidedinsections
2435.350to435.470,thedisclosurerequirementofsection435.460shallbeanexhibitto
3thedeclaration.
4 2.Subjecttothedeclarationandanyadditionalrequirementsorconditions,
5disputesbetweenlotownersorbetweentwoormorelotownersregardingamatter
6relatedtotheplannedcommunitymayberequiredtobesubmittedtononbinding
7disputeresolutionasaprerequisitetocommencementofajudicialproceeding.
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HB1177 6