HCS SB 235 -- MANUFACTURED HOMES, SAWMILLS, AND LENDING
INSTITUTIONS

SPONSOR:  Cunningham (Jones, 117)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Institutions by a vote of 13 to 0.

This substitute changes the laws regarding manufactured homes,
classification of sawmills, and lending institution services.

CONVERSION OF MANUFACTURED HOMES TO REAL PROPERTY (Sections
137.115, 362.105, 365.020, 365.200, 369.229, 370.300, 400.9-303,
400.9-311, 408.015, 408.250, 436.350, 441.005, 442.010, 442.015,
513.010, 700.010, 700.111, 700.320, 700.360, 700.375, 700.525,
and 700.630, RSMo)

The substitute establishes procedures for converting a
manufactured home to real property or from real property back to
personal property.  In its main provisions, the substitute:

(1)  Requires a manufactured home to be permanently affixed to a
permanent foundation to qualify as real property and requires an
affidavit to the affixation;

(2)  Requires the owner to notify the county assessor when a
manufactured home is converted to real property or back to
personal property and requires the certificate of title to be
filed with the Director of the Department of Revenue;

(3)  Allows a manufactured home once deemed to be real estate to
be governed by the laws applicable to real estate; and

(4)  Requires an affidavit of severance when a manufactured home
is removed from its permanent foundation stating the property
description and any information that could affect the validity of
the title of the manufactured home or the existence of a security
interest or lien.

MANUFACTURED HOMES (Sections 700.100, 700.330, 700.350, 700.370,
700.385, and 700.526 - 700.529)

The substitute changes the laws regarding manufactured homes.  In
its main provisions, the substitute:

(1)  Authorizes the Missouri Public Service Commission to
suspend, revoke, or place on probation the license of a
manufactured home dealer for failure to obtain a written notice
signed and dated by the purchaser of a used manufactured home or
modular unit which states that the commission does not regulate
the setup of used manufactured homes and modular units;

(2)  Allows the owner of a manufactured home who owns the home as
joint tenants with the right of survivorship or as tenants by the
entirety to receive, upon application and payment of a fee, a
certificate of ownership in beneficiary form from the Department
of Revenue to transfer ownership upon death to the beneficiaries
with the right of survivorship or as tenants by the entirety;

(3)  Allows the owner to revoke the certificate of ownership or
change beneficiaries.  The certificate may be revoked by the sale
of the home or by filing an application to reissue the
certificate with no designation or a different designation of a
beneficiary;

(4)  Requires the department director to issue a new certificate
of ownership to the surviving owners or beneficiaries upon proof
of an owner's death, surrender of the outstanding certificate,
and payment of a fee;

(5)  Requires lienholders to notify the department director
within 10 business days of any release of a lien if an electronic
certificate of ownership is being held by the department
director;

(6)  Requires the holder of any security interest in a
manufactured home to verify that he or she has paid all past due
rent which the holder is obligated to pay to the landowner if the
home was repossessed;

(7)  Specifies what determines an abandoned manufactured home
that is located on another person's property;

(8)  Changes the process for enforcing liens for unpaid rent
against a manufactured home.  Landowners must provide the
homeowner notice prior to enforcing the lien and give him or her
the opportunity to pay any rent owed.  The notice must advise the
owner of his or her legal rights to contest the lien; and if the
owner does not redeem the home within 30 days from the date of
mailing the notice and no petition has been filed to contest the
lien within 10 days of the receipt of the notice, the real
property owner may apply for a lien title;

(9)  Authorizes the real property owner to begin proceedings to
sell a home within 30 days of receipt of the lien title;

(10)  Requires the homeowner to be given at least 20 days' notice
of the sale of a home;

(11)  Specifies how the proceeds of the sale are to be
distributed;

(12)  Allows homeowners to contest liens brought by the real
property owners by filing a petition in the appropriate associate
circuit court; and

(13)  Prohibits perfected lienholders or homeowners of abandoned
manufactured homes located on property which is being leased from
removing the home until the landlord is paid any rent owed.

CLASSIFICATION OF SAWMILLS FOR PROPERTY TAXES (Section 137.016)

The substitute classifies sawmills and planing mills as defined
in the United States Department of Labor's Standard Industrial
Classification Manual as agricultural and horticultural property
instead of commercial property for property taxation purposes.

LENDING INSTITUTION SERVICES (Sections 408.052, 408.094, 408.140,
408.233, and 408.300)

The substitute allows lending institutions to sell deficiency
waiver addendums, guaranteed asset protections, or similar
products purchased as part of a loan transaction with collateral
at the borrower's option if the cost of the product is disclosed
in the loan contract.

Lenders may offer, sell, and finance automobile club memberships,
home and auto security plans, and other plans and services that
benefit a borrower.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2010, FY
2011, and FY 2012.  Estimated Cost on Other State Funds of $0 in
FY 2010, $0 to $20,313 in FY 2011, and $0 to $20,313 in FY 2012.

PROPONENTS:  Supporters say that the bill will help consumers who
purchase manufactured homes by allowing it to be treated as real
property so that lenders will allow mortgage loans to be made.
Currently, manufactured homes are treated as personal property so
you cannot get a mortgage.

Testifying for the bill were Senator Cunningham; Missouri Land
Title Association; Missouri Association of Realtors; Missouri
Manufactured Housing Association; Recorders' Association of
Missouri; Missouri Financial Services Association; Mortgage
Bankers Association of Missouri; and Missouri Bankers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am