Bill Text: MO HB704 | 2011 | Regular Session | Introduced
Bill Title: Changes the laws regarding inadequate and deficient housing as it relates to landlord-tenant actions
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2011-04-12 - Referred: Judiciary (H) [HB704 Detail]
Download: Missouri-2011-HB704-Introduced.html
FIRST REGULAR SESSION
96TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES CURLS (Sponsor) AND McCANN BEATTY (Co-sponsor).
1773L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 441.500, 441.510, 441.570, 441.590, 441.600, and 441.641, RSMo, and to enact in lieu thereof six new sections relating to landlord-tenant law.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 441.500, 441.510, 441.570, 441.590, 441.600, and 441.641, RSMo, are repealed and six new sections enacted in lieu thereof, to be known as sections 441.500, 441.510, 441.570, 441.590, 441.600, and 441.641, to read as follows:
441.500. As used in sections 441.500 to 441.643, the following terms mean:
(1) "Abatement", the removal or correction, including demolition, of any condition at a property that violates the provisions of any duly enacted building or housing code, as well as the making of such other improvements or corrections as are needed to effect the rehabilitation of the property or structure, including the closing or physical securing of the structure;
(2) "Agent", a person authorized by an owner to act for him;
(3) "Code enforcement agency", the official, agency, or board that has been delegated the responsibility for enforcing the housing code by the governing body;
(4) "Community", any county or municipality;
(5) "County", any county in the state;
(6) "Dwelling unit", premises or part thereof occupied, used, or held out for use and occupancy as a place of abode for human beings, whether occupied or vacant;
(7) "Governing body", the board, body or persons in which the powers of a community are vested;
(8) "Housing code", a local building, fire, health, property maintenance, nuisance or other ordinance which contains standards regulating the condition or maintenance of residential [buildings] property;
(9) "Local housing corporation", a not-for- profit corporation organized pursuant to the laws of the state of Missouri for the purpose of promoting housing development and conservation within a specified area of a municipality or an unincorporated area;
(10) "Municipality", any incorporated city, town, or village;
(11) "Neighborhood association", any group of persons organized for the [sole] purpose of improvement of a particular geographic area having specific boundaries within a municipality[, provided that such association is recognized by the municipality as the sole association for such purpose within such geographic area];
(12) "Notice of deficiency", a notice or other order issued by the code enforcement agency and requiring the elimination or removal of deficiencies found to exist under the housing code;
(13) "Nuisance", a violation of provisions of the applicable housing code [applying to the maintenance of the buildings or dwellings] which the code official in the exercise of reasonable discretion believes constitutes a threat to the public health, safety or welfare;
(14) "Occupant", any person occupying a dwelling unit as his or her place of residence, whether or not that person is occupying the dwelling unit as a tenant from month to month or under a written lease, undertaking or other agreement;
(15) "Owner", the record owner or owners, and the beneficial owner or owners when other than the record owner, of the freehold of the premises or lesser estate therein, a mortgagee or vendee in possession, assignee of rents, receiver, personal representative, trustee, lessee, agent, or any other person in control of a dwelling unit;
(16) "Person", any individual, corporation, association, partnership, or other entity.
441.510. 1. If any building or dwelling whether occupied or vacant is found to be in violation of building or housing codes which the county, municipality, local housing corporation or neighborhood association in the exercise of reasonable discretion believes constitutes a threat to the public health, safety or welfare, and alleges the nature of such threat in its petition, the county, municipality, local housing corporation or neighborhood association, in addition to any other remedies available to it, may apply to a court of competent jurisdiction for the appointment of a receiver to perform an abatement.
2. At least sixty days prior to the filing of an application for appointment of a receiver pursuant to sections 441.500 to 441.643, the county, municipality, local housing corporation or neighborhood association shall give written notice by regular mail to all interested parties of its intent to file the application and information relative to:
(1) The identity of the property;
(2) The violations of the building or housing codes giving rise to the application for the receiver;
(3) The name, address and telephone number of the person or department where additional information can be obtained concerning violations and their remedy; and
(4) The county, municipality, local housing corporation or neighborhood association which may seek the appointment of a receiver pursuant to sections 441.500 to 441.643 unless action is taken within sixty days by an interested party to either remedy the violation or to perform an action described in subsection 3 of this section.
3. A county, municipality, local housing corporation or neighborhood association may not apply for the appointment of a receiver pursuant to sections 441.500 to 441.643 if an interested party has commenced and is then prosecuting in a timely fashion an action or other judicial or nonjudicial proceeding to foreclose a security interest on the property, or to obtain specific performance of a land sale contract, or to forfeit a purchaser's interest under a land sale contract.
4. Notice of the application for the appointment of a receiver shall be served on all interested parties.
5. If, following the application for appointment of a receiver, one or more of the interested parties elects to correct the conditions at the property giving rise to the application for the appointment of a receiver, the party or parties shall be required to post security in an amount and character as the court deems appropriate to ensure timely performance of all work necessary to make corrections, as well as such other conditions as the court deems appropriate to effect the timely completion of the corrections by the interested party or parties.
6. In the event that no interested party elects to act pursuant to subsection 5 of this section or fails to timely perform work undertaken pursuant to subsection 5 of this section, the court shall make a determination that the property is in an unsafe or insanitary condition and appoint a receiver to complete the abatement.
7. A receiver appointed by the court pursuant to sections 441.500 to 441.643 shall not be required to give security or bond of any sort prior to appointment.
441.570. The court may, after hearing and finding the dwelling unit or building constitutes a nuisance:
(1) Appoint a receiver and direct that present and future rents due from one or more occupants be paid by the occupant or occupants with such receiver as such rents fall due; or
(2) Allow the owner a reasonable time to correct the deficiencies. Any rents paid pursuant to the provisions of this section shall be applied to the costs incurred due to the abatement and receivership. For purposes of assessing the property prior to appointment of the receiver, plaintiffs, plaintiffs' representatives, or other interested parties may be permitted entry into the property by the court at such time and on such terms as the court may deem appropriate. Upon the completion of the work required to abate the nuisance, any remaining surplus after authorized disbursements and payments of cost shall be forwarded to the owner, together with a complete accounting of the rents paid and the costs incurred.
441.590. 1. The court may, in any order entered pursuant to section 441.570:
(1) Authorize the receiver to draw upon the rents deposited [in court] to pay for the cost of necessary repairs [upon presentment to the court of the original copy of any invoice for work performed or materials purchased];
(2) Appoint the code enforcement agency, the mortgagee or other lienor of record, a local housing corporation established to promote housing development and conservation in the area in which such property that is the subject of receivership is located or, if no local housing corporation exists for such area, then the local neighborhood association, a licensed attorney or real estate broker, or any other qualified person, as a receiver provided, however, that all lienholders of record shall be given the right of first refusal to serve as receiver in the order in which their lien appears of record. In the event of the refusal of all lienholders of record to serve as receiver or in the absence of any lienholders of record, the local housing corporation that is established to promote housing development and conservation in the area in which such property that is the subject of receivership is located, if any, shall be given the right of first refusal to serve as receiver for any residential property consisting of four units or less; provided that, if no local housing corporation exists for such area, then the local neighborhood association shall be given such right of first refusal[; or
(3) Where the building is vacant, appoint the code enforcement agency, the mortgagee or other lienor of record, a local housing corporation established to promote development and conservation in the area in which such property that is the subject of receivership is located or, if no local housing corporation exists for such area, then the local neighborhood association, a licensed attorney or real estate broker, or any other qualified person, as a receiver to remove all of the housing code violations which constitute a nuisance as found by the court, except that all lienholders of record shall be given the right of first refusal to serve as receiver in the order in which their liens appear of record. In the event of the refusal of all lienholders of record to serve as receiver or in the absence of any lienholders of record, the local housing corporation that is established to promote development and conservation in the area in which such property that is the subject of receivership is located, if any, shall be given the right of first refusal to serve as receiver for any residential property consisting of four units or less; provided that, if no local housing corporation exists for such area, then the local neighborhood association shall be given such right of first refusal].
2. The court may allow a receiver reasonable and necessary expenses, payable from [the rent moneys] revenues derived from the operation, encumbrance, or sale of the premises, which shall include reasonable compensation for the receiver.
3. [No receiver appointed shall serve without bond. The amount and form of such bond shall be approved by the court and the cost of such bond shall be paid from the moneys so deposited.
4.] The receiver may, on order of the court, take possession of the property, collect all rents and profits accruing from the property, and pay all costs of management, including but not limited to all insurance premiums and all general and special real estate taxes or assessments.
[5.] 4. The receiver shall with all reasonable speed remove all of the housing code violations which constitute a nuisance as found by the court, and may make other improvements to effect a rehabilitation of the property in such fashion as is consistent with maintaining safe and habitable conditions over the remaining useful life of the property. The receiver shall have the power to let contracts therefor, in accordance with the provisions of local laws, ordinances, rules and regulations applicable to contracts.
[6.] 5. The receiver may with the approval of the circuit court borrow money against, and encumber, the property as security therefor in such amounts as may be necessary to carry out his or her responsibilities pursuant to sections 441.500 to 441.643. The circuit court may authorize the receiver to issue receiver's certificates as security against such borrowings, which certificates shall be authorized investments for banks and savings and loan associations, and other lenders, and shall constitute a first lien upon the property and its income and shall be superior to any claims of the receiver and to all prior or subsequent liens and encumbrances except taxes and assessments, and shall be enforceable as provided in subsection 8 of this section.
[7.] 6. In addition to issuance of receiver certificates, the receiver may pledge the rentals from the property and borrow or encumber the property on the strength of the rental income.
[8.] 7. Any receiver appointed pursuant to the provisions of sections 441.500 to 441.643 shall have a lien, for the expenses necessarily incurred in the execution of an order, upon the rents receivable from the premises on or in respect of which the work required by such order has been done or expenses incurred, and this lien shall have priority over all other liens and encumbrances of record upon the proceeds of the sale by the receiver of the premises and the rents receivable from the premises, except taxes, assessments, receiver's certificates, and mortgages recorded prior to October 13, 1969.
8. The receiver shall file with the court quarterly reports, including a statement of all expenditures made, and all income and receipts received from the property.
9. [For the purposes of this section, "local housing corporation" shall mean only those local housing corporations established prior to August 28, 2001] A receiver appointed by the court, in addition to all necessary and customary powers, has the right of possession of the premises with authority, subject to court approval and for the purpose of abating the violations, to sell the premises to a qualified buyer in one of the following manners approved by the court:
(1) Sell the premises to the high bidder at public auction, following the same presale notice by publication provisions that apply to a foreclosure under section 443.320; such sale shall not become final until the court shall conduct an evidentiary hearing and shall approve the sale only upon a court finding that sufficient evidence is admitted into the record that the proposed buyer is capable of and has a feasible plan for abating the nuisance at the premises; or
(2) Sell the property privately to a buyer proposed by the receiver, upon terms including price proposed by the receiver and approved by the court. Such proposal shall be in the form of a motion to the court filed by the receiver. Before ordering such a sale, the court shall conduct an evidentiary hearing and shall approve the sale only upon a court finding that sufficient evidence is admitted into the record that the proposed buyer is capable of abating the nuisance at the premises and that the sale price is not less than the fair market value of the premises, and that good cause exists for all other terms of the proposal. Not less than twenty days prior to the hearing the receiver in the action shall file with the court a certification that the receiver has mailed to all defendants and all persons who then hold an interest of public record at their last known address a copy of the receiver's motion and proposal and written notice of the purpose, date, time and place of such hearing.
Proceeds from any sale of the premises by the receiver shall be disbursed by the receiver in the following order:
(a) In satisfaction of any notes and receiver certificates issued by the receiver in their order of priority;
(b) To pay for the reasonable costs of the receivership and sale;
(c) The amount due for delinquent taxes, assessments, charges, penalties, and interest owed to the state of Missouri or any political subdivision thereof, provided that, if the amount available for distribution is insufficient to pay the entire amount of those taxes, assessments, charges, penalties, and interest, the proceeds and remaining funds shall be paid to each taxing jurisdiction pro rata;
(d) To any holders of prereceivership recorded liens upon filing by any such holder with the court not less than ten days prior to the evidentiary hearing described in either subdivision (1) or (2) of this subsection evidence satisfactory to the court of the existence and amount of any debt then due and secured by such lien and the priority thereof; and
(5) All remainder to the freehold owner of the premises. A plan of disbursement shall be approved by the court prior to disbursement. Within twenty days following disbursement the receiver shall file with the court evidence of such disbursement.
10. The title in any premises that is sold at a sale ordered under this section shall be conveyed by quitclaim judicial deed, court administrator's deed or sheriff's deed, and shall be incontestable in the purchaser. Such conveyance shall operate to extinguish all existing ownership interest in, liens on, and other interest in the property, including tax and assessment liens arising during the five-year period prior to the receivership that could not be satisfied from the proceeds of the sale and the remaining funds in the receiver's possession under the distribution under subsection 9 of this section except a federal tax lien notice properly filed prior to the time of the conveyance and the easements and covenants of record running with the property that were created prior to the time of the conveyance.
11. Upon motion of the receiver, the court may stay the sale of any tax parcel to be sold under execution of a tax foreclosure judgment which is the subject of an action filed under sections 441.500 to 441.643.
12. A receiver appointed under sections 441.500 to 441.643 is not personally liable except for misfeasance or malfeasance in the performance of the functions of the office of receiver.
441.600. The receiver shall be discharged upon rendering a full and complete accounting to the court when the conditions giving rise to the receivership have been removed and the cost thereof, and all other costs authorized by sections 441.500 to 441.640, have been paid or reimbursed and any surplus money has been paid over to the owner or the mortgagee or any lienor as the court may direct. However, at any time, the receiver may be discharged upon filing his account as receiver without affecting the right of the code enforcement agency to its lien. The receiver shall be discharged upon motion of the receiver certifying that nuisance abatement or sale of the premises is not economically feasible. Upon the removal of the condition giving rise to the receivership, the owner, the mortgagee or lienor may apply for the discharge of the receiver upon payment to the receiver of all moneys expended by the receiver for removal of such condition and all other costs authorized by sections 441.500 to 441.640 which have not been paid or reimbursed.
441.641. If the court appoints a receiver to abate a nuisance pursuant to sections 441.500 to 441.643, and the holder of title to the property or any other party in interest does not take action under subsection 5 of section 441.510 or section 441.600 to regain possession of the property within [two years] one year of the appointment of the receiver, the court may, for good cause shown, declare the premises abandoned, and whether or not fully abated issue a quitclaim judicial deed, court administrator's deed or sheriff's deed transferring title to the property to the receiver, or to any not-for-profit corporation organized pursuant to law. A conveyance by quitclaim judicial deed, court administrator's deed or sheriff's deed following declaration of abandonment shall operate to extinguish all existing ownership interest in, liens on, and other interest in the property, including tax and assessment liens arising within the five-year period prior to the receivership, but excepting a federal tax lien notice properly filed prior to the time of the conveyance, and the easements and covenants of record running with the property that were created prior to the time of the conveyance.
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