New law changes filing process for LLCs
Thanks to a new Missouri law effective Monday, Aug. 28, the City of Kansas City has a new tool to help keep rental and vacant properties from becoming potential neighborhood eyesores. Under the law, limited liability companies (LLCs) owning rental or vacant property in Kansas City must file an affidavit with the city listing the name and street address of at least one individual, not a company, who has ‘management control and responsibility’ for the property.
“The prior statute had no real ‘teeth’ to it,” said John A. Wood, assistant city manager and director of the city’s Neighborhoods and Housing Services Department (NHSD).
Wood and other city leaders made several trips to Jefferson City, speaking to lawmakers and lobbying for support of the measure. During testimony at the State Capitol, Wood talked about how difficult it was for the city to obtain contact information for out-of-state and LLC-controlled property owners. “Many of the properties were not being properly maintained and with no up to date or correct contact information, there was no way the city could insure compliance,” Wood said.
Under the law, the LLC also has an obligation to update the affidavit within 30 days if the person named in the previous affidavit is no longer responsible for management control or responsibility of the property. If the LLC does not register their property, they can face possible legal action if the City asks a court to force compliance. The Kansas City Police Department (KCPD) and the Kansas City Fire Department (KCFD) will also have access to the information.
If the law, signed by Missouri Governor Eric Greitens in July, is successful in Kansas City, it could be implemented statewide.
FAQ’S ON LLC REGISTRATION
Who has to file an LLC Affidavit?
All LLCs that own real property in Kansas City, Missouri and the property is rented/leased or unoccupied are required to file an LLC Affidavit.
Is this a new requirement?
No, the statute was originally enacted in 2001. The 2017 revisions added the requirement of a natural person and a street address.
Where do I get the affidavit?
The City Clerk’s office on the 25th floor of City Hall at 414 East 12th Street, Kansas City, Missouri 64106. A form may also be found on the Clerk’s website.
Can I just sign the affidavit or does it have to be notarized?
The affidavit must be notarized.
Who do I file the affidavit with?
The City Clerk’s office on the 25th floor of City Hall at 414 East 12th Street, Kansas City, Missouri 64106.
Can I file online?
No, the original affidavit must be filed with the City Clerk’s office on the 25th floor of City Hall at 414 East 12th Street, Kansas City, Missouri 64106. It may be mailed or dropped off during normal business hours.
Is there a fee when I file?
No, there has never been a fee to file.
If I file with the vacant property/rental property registration, do I still file an affidavit?
Yes, the affidavit is required by the Missouri Statute pursuant to RSMo. §347.048. This was revised by Senate Bill 111 and is effective August 28, 2017.
Can I list a business as the “individual with management control and responsibility”?
No, the changes require that the individual be a natural person.
Can I use a PO Box for my address in the affidavit?
No, the statutory change requires that it be a street address.
What if I already have an affidavit on file?
As long as everything in the affidavit is still current and the manager is an natural person and the address is a street address, you do not need to do anything. If, however, the manager is not a natural person and/or the address is not a street address, you need to file a new affidavit.
What if management changes?
You must file a new affidavit within 30 days of the change of management control and responsibility.
How do I know if I filed an affidavit?
Affidavits may be viewed from the City’s website and choose the tab “Departments” and the tab “City Clerk’s Office
347.048. Affidavit filing required for certain limited liability companies — fees prohibited — failure to file, remedy. — 1. (1) Any limited liability company that owns and rents or leases real property, or owns unoccupied real property, located within:
(a) Any home rule city with a population of more than four hundred thousand inhabitants which is located in more than one county; or
(b) Any home rule city with more than one hundred sixteen thousand but fewer than one hundred fifty-five thousand inhabitants;
shall file with that city’s clerk an affidavit listing the name and street address of at least one natural person who has management control and responsibility for the real property owned and leased or rented by the limited liability company, or owned by the limited liability company and unoccupied.
(2) Within thirty days following the cessation of management control and responsibility of any natural person named in an affidavit described in this section, the limited liability company shall file a successor affidavit listing the name and street address of a natural person successor.
2. No limited liability company shall be charged a fee for filing an affidavit or successor affidavit required under this section.
3. If a limited liability company required by this section to file an affidavit or a successor affidavit fails or refuses to file such completed affidavit with the appropriate clerk, any person who is adversely affected by the failure or refusal or the home rule city may petition the circuit court in the county where the property is located to direct the execution and filing of such document.
(L. 2001 S.B. 288, A.L. 2017 S.B. 111)