- House Committee Substitute -

HCS/SB 856 - This act makes various modifications the provisions of law concerning enterprise zones and development of abandoned property. The act:

(1) Changes the criteria an area must meet to qualify as an enterprise zone by reducing the minimum population floor from 4,000 to 3,000 for areas within metropolitan statistical areas;

(2) Requires the Department of Economic Development to designate an enterprise zone in Pulaski and Wright counties, the cities of Richland and Carl Junction, the village of Bel-Ridge, and, in 2005, to designate zones in Caldwell, Clinton, and DeKalb counties;

(3) Allows any Missouri not-for-profit organization to petition to have property declared abandoned and for temporary possession of the property if the organization intends to rehabilitate the property. Such organization will no longer be required to rehabilitate and use the property as low- or moderate-income housing;

(4) Allows a Missouri not-for-profit organization to petition for a sheriff's deed conveying title to the abandoned property to the organization when the rehabilitation is complete, rather than requiring that a one-year period elapse after entry of the order granting temporary possession of the property. The organization is required to file reports quarterly, rather than annually, regarding the rehabilitation of the property;

(5) Allows the owner of the property to petition the circuit court regain possession of the property from the Missouri not-for-profit organization. Possession will not be restored to the owner unless the court finds that the owner has the capacity and the resources to complete the rehabilitation. If the rehabilitation has already been completed by the organization, the court will determine appropriate compensation for the organization; and

(6) Allows an order for a petition for judicial deed to be granted if the owner does not regain actual possession of the property in the one-year period following entry of an order granting temporary possession of the property to the Missouri not-for-profit organization. The current law allows the same process but prohibits the owner from merely taking action to regain possession.

JEFF CRAVER