HB 940 Summary

• Establishes the "Common Interest Owners Bill of Rights Act" creating 23 new sections of Missouri law (448.300-448.410) governing common interest communities with 12 or more residential units and all condominiums.

• Requires associations to organize as nonprofit corporations, adopt bylaws and budgets, hold annual meetings, maintain open executive board meetings with limited executive sessions, and provide unit owners access to association records with specified exceptions.

• Protects unit owner rights including voting by ballot or proxy, limiting executive board member terms to two consecutive terms, requiring good faith contract performance, and prohibiting restrictions on voting rights or unit access even for unpaid assessments.

• Establishes foreclosure requirements including that a unit owner must owe at least three months of assessments and refuse a payment plan before the executive board may vote to foreclose, and requires all foreclosure procedures to be commercially reasonable.

• Permits associations to suspend non-essential privileges for delinquent owners but prohibits withholding services that would endanger health or safety, limits rule adoption to matters affecting common elements or other units, and allows unit owners to remove board members or officers by majority vote.