Section 67.1603 - This section authorizes any municipality with more than 500 but less than 300,000 inhabitants to submit the issue of creating a home equity program within that municipality to the voters. The issue may be started through either an ordinance approved by the governing body or by a petition signed by at least 5% of the registered voters. Any municipality with 300,000 or more inhabitants is authorized to submit the issue of creating a home equity program within any contiguous area of the municipality to the voters. The ballot question, and related ordinance or petition, shall include a description of the area, the name of the proposed program, and the maximum rate of property tax to be levied. The mayor may appoint a five-member advisory board and the commissioners and board members may serve three consecutive terms.

If the program is approved, the governing body of the municipality shall appoint nine commissioners to administer it.

Section 67.1606 - This section specifies procedures for including a township or ward which had been excluded from the area as approved. The excluded area must be contiguous with the approved area.

Section 67.1609 - This section provides procedures for merging two existing and contiguous home equity programs.

Section 67.1612 - This section specifies the duties and functions of a home equity program commission.

Section 67.1615 - This section specifies eligibility qualifications for membership in a home equity program. A member must be the owner of a qualified residence within the program area who continuously occupies it or who has a family member who occupies a qualified residence as a principal place of residence. An application and registration fee is required. Upon receipt of the fee, the residence is appraised to determine its guaranteed value. If approved, a certificate of participation is then issued.

Section 67.1618 - A member is guaranteed 100% of the difference if the guaranteed value is less than the selling value. Only sales made three years or more after the date the certificate was issued qualify.

Section 67.1621 - To be eligible to receive payment, a member must meet certain program guidelines. A member must file a notice of intent to sell with the governing commission and must offer the guaranteed residence for sale according to those guidelines. The governing commission may have the guaranteed residence inspected by a program appraiser and reject any offer to purchase that it considers not to be bona fide.

Section 67.1624 - A notice of intent to claim must be filed with the governing commission, and the member must provide verifiable evidence of the actual sale.

Section 67.1627 - No payments can be made until the sale has closed and title has passed or the beneficial interest has been transferred.

Section 67.1630 - This section specifies procedures for situations in which the guaranteed residence is acquired through the use of eminent domain.

Section 67.1633 - A new program appraisal can be obtained in order to establish a new certificate of participation. An increase in the guaranteed value due only to inflation cannot be made until after three years from the most recent registration date. A new guaranteed value due to home improvements can only be made if the improvements exceed $5,000.

Section 67.1636 - Certain decisions by the governing commission can be appealed by the members. In addition, a written request for arbitration may be made.

Section 67.1639 - This section establishes a guarantee fund for each home equity program to be used for payments to members and for administrative costs. Revenue for a guarantee fund comes from an annual property tax levy, with the rate not to exceed .15%. An independent audit of a guarantee fund is required annually.

Section 67.1642 - The question of whether to terminate a home equity program is to be submitted to public vote in the same manner as was the initial authorization.

Section 67.1645 - A program provides a guarantee only against specifically local adverse housing market conditions, as opposed to regional or national conditions. Economic forces such as recession or depression are excluded from the guarantee. Temporary suspension of a program is authorized.

Section 67.1648 - If a guarantee fund becomes depleted, the commission may temporarily suspend the registration of new members and borrow funds against future tax revenues. Program indebtedness or obligations cannot become obligations of the municipality or of the state of Missouri.

Section 67.1651 - This section specifies that commissioners, officers and employees have no personal liability. No cause of action for damages may be brought unless the act or omission involves willful or wanton conduct. Indemnification is authorized for program-related legal costs except for willful or wanton conduct, breach of good faith, intentional misconduct, knowing violation of the law, or when the individual derives an improper personal benefit.

Section 67.1654 - Any legal action brought under the provisions of this act must be brought within twelve months from the date of the event which is the subject of the legal action.

Section 67.1657 - This section provides an insurance set-off against the total cost of the program.

Section 67.1560 - A member can forfeit the registration fee and guarantee and withdraw from the program at any time; the member is then allowed to sell the guaranteed residence in any legal manner.

Section 67.1663 - Any violation of this act is a Class A misdemeanor.

Sections 1-18 of this act authorize the "Community Improvement District Act". The formation of community improvement districts (CIDs) is permitted in counties and cities in first and second classification counties. The Board of Aldermen in St. Louis City may establish 7 CIDs in the city. CIDs create a special benefit district to allow districts to assess and tax themselves for community improvement and services. A petition to create a CID must be approved by the governing body of a city and must specify the size, area, and duration of the district; the maximum rate of taxes which may be imposed; and the method and maximum rate of assessment.

Certain state, not-for-profit, and charitable properties are exempt from assessment, unless they voluntarily participate. Management of the CID is under the direction of a district board, which, depending upon the petition, may be appointed by the chief elected officer of the city, with the consent of the governing body, or elected by qualified voters of the district. CIDs are required to have the consent of the governing body before executing any of their powers.

District projects may include public capital improvements, certain private capital improvements, and special services. Municipalities in which a CID is located may not establish a minimum wage that exceeds the state minimum wage. The petition may also specify maximum borrowing authority, types of services supported, eligible use of funds, and other limitations.

RUSS HEMBREE