HB 2237 -- Land Bank Agency

Sponsor:  LeBlanc

This bill allows the City of Kansas City to establish a land bank
agency for the management, sale, transfer, and other disposition
of tax delinquent lands and other lands in its possession in
order to return it to effective use to provide housing, new
industry, and jobs and create new revenue for the city.  The
agency must be established by order or ordinance as provided by
the city's charter and will only have authority over tax
delinquent lands and other lands in its possession located within
the city.

The agency is authorized to accept the grant of any interest in
real property made to it or to accept gifts and grant-in-aid
assistance.  It is to exercise all powers that are conferred by
Sections 141.210 - 141.982, RSMo, relating to land tax collection
law and be deemed a public corporation acting in a governmental
capacity.

Beneficiaries of the agency will be the taxing authorities that
held or owned tax bills against the respective parcel of real
estate sold to the agency at a sheriff's foreclosure sale, and
each taxing authority's respective interests in the parcel will
be to the extent and in the proportion and according to the
priorities determined by the court based on the principal amount
of their respective tax bills bore to the total principal amount
of all the tax bills described in the judgment.

The agency will be composed of three commissioners appointed by
specified officials; and each commissioner must furnish a surety
bond, if the bond is not already covered by a governmental surety
bond, in an amount of up to $25,000 to be paid out of city funds.

The agency is authorized to sue and issue deeds in its name and
operate as any other corporate body.  It can convey title to any
real estate it has sold or conveyed by general or special
warranty deed.  A deed must include the selling price and whether
the selling price represents a value equal to or greater than
two-thirds of the appraised value of the real estate.  If the
selling price is less than two-thirds of the appraised value, the
commissioners must first procure the consent of at least two
appointing authorities.  Every effort must be made to sell a
property at a price as close to its appraised value as soon as
possible.  Any property transferred at no cost to a public agency
must be agreed to unanimously by the three commissioners; and if
the property is sold or disposed of within 10 years by the public
agency, the proceeds from the sale or disposal must be returned
to the commissioners for distribution.

The agency must maintain a perpetual inventory of all acquired
real estate and classify it as for private use, for use by a
public agency, or not usable in its current condition.  All land
owned by the agency can be used as it sees fit including
consolidating the land or grouping it for economy and
convenience.

The annual budget of the agency must be prepared by December 10
and delivered to the governing body of each county or city that
appointed commissioners for its review and approval.  The bill
specifies the procedure if one of the governing bodies does not
approve the proposed budget.

If at any time there are not enough funds available to pay the
salaries and other expenses of the agency, sufficient funds will
be advanced and paid to the agency upon its requisition from the
governing bodies of which 50% will be paid by the county
commissions and 50% from the cities that appointed commissioners.
The amount cannot exceed 25% of the agency's annual budget unless
agreed to and approved by the county commissions and the cities.
These funds will be considered advances and subject to repayment
from funds subsequently collected by the agency.

A commissioner or salaried agency employee is prohibited from
receiving any compensation, emolument, or other profit from the
disposition of any lands held by the agency other than the
salaries, expenses, or emoluments provided by law.  Anyone
convicted of violating this provision will be guilty of a felony
and upon conviction be sentenced to between two and five years in
the state penitentiary.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm