Effective 28 Aug 1985

441.650. Master-metered multitenant dwelling, defined — heat-related utility service, delinquency, maintenance of service, how — receivership, when, procedure. — 1. For purposes of this section:

(1) A "delinquency" exists when the owner, or his agent, of a master-metered multitenant dwelling fails to pay for heat-related utility services for such dwelling for such a period of time that the utility has lawfully provided to the owner or residents of the dwelling a written notice that heat-related utility service is subject to termination, and while the cause for such notice still exists;

(2) "Electrical corporation" refers to an electrical corporation as defined in section 386.020;

(3) "Gas corporation" refers to a gas corporation as defined in section 386.020;

(4) "Heat-related utility service" refers to service provided by a gas corporation or an electrical corporation which is necessary to the proper function and operation of the space-heating equipment in a dwelling;

(5) "Master-metered multitenant dwelling" refers to a residential dwelling containing two or more separate residential units, where heat-related utility services are measured by a common meter in a single building, or heat-related utility services are measured by individual meters with the owner responsible for payment for such utility services; and

(6) "Owner" refers to the record owner or owners of the premises, an assignee of rents, lessee, agent, or any other person responsible for payment for heat-related utility service provided to the premises.

2. At least five days prior to termination of heat-related utility services to a master-metered multitenant dwelling, the gas corporation or electrical corporation shall notify the tenants of that dwelling of the existence of the delinquency, and of the tenants' right to initiate the receivership procedure by posting written notice in common areas of that dwelling in a location and manner likely to provide actual notice to such tenants.

3. Upon a delinquency at a master-metered multitenant dwelling which receives heat-related utility service from a gas corporation or electrical corporation, the gas corporation or electrical corporation or any tenant of the master-metered multitenant building may petition the associate circuit court of the county in which the dwelling is located for the appointment of a receiver of rents for use and occupancy of the affected dwelling. If the petition is filed by any tenant, such tenant shall immediately advise the gas corporation or electrical corporation in writing of the filing of such petition. Upon the filing of a petition in an associate circuit court stating that the heat-related utility service to a master-metered multitenant dwelling is delinquent, the court shall act as follows:

(1) Within two days of the filing of the petition, the court shall issue an order to show cause why a receiver should not be appointed, which order shall be served upon the owner and upon the gas corporation or electrical corporation involved in the delinquency in a manner reasonably calculated to give notice of the initiation of the receivership procedure;

(2) Within four days after the issuance of the order to show cause, the court shall hold a hearing and issue an order granting or denying the petition;

(3) Upon a finding that a delinquency exists, and that the rentals at the master-metered multitenant dwelling are likely to be sufficient to cover the items specified in paragraphs (a) and (b) of subdivision (4) of subsection 5 of this section, the court shall appoint a receiver in accordance with sections 515.240 to 515.260*, who shall be a person at least twenty-one years of age and who shall not be the owner of the dwelling which is the subject of the petition for receivership.

4. Gas corporations and electrical corporations shall not terminate heat-related utility service to a master-metered multitenant dwelling due to nonpayment for utility service if a petition for a receivership related to its service filed pursuant to this section is before an associate circuit court and, if the petition has been filed by a tenant, the gas corporation or electrical corporation has received at least twenty-four hours prior written notice of the filing of such petition, or if a receivership related to its service is in existence pursuant to this section.

5. Upon appointment of a receiver pursuant to this section, the receiver shall:

(1) Notify the tenants of the master-metered multitenant dwelling, by posting written notices in common areas of the dwelling, of the following information:

(a) The fact that the court has appointed a receiver;

(b) The identity and address of the receiver;

(c) The means by which the receiver can be contacted; and

(d) The manner by which rental payments shall be made;

(2) Provide written notice to the gas corporation or electrical corporation which provides the service involved in the receivership of the following information:

(a) The fact that the court has appointed a receiver;

(b) The identity and address of the receiver; and

(c) The means by which the receiver can be contacted;

(3) Diligently seek to collect all rents or payments for use or occupancy of the master-metered multitenant dwelling from the tenants of the dwelling subject to the receivership;

(4) Promptly disburse proceeds from the receivership according to the following priority:

(a) First, the receiver shall pay all reasonable costs of the receivership as approved by the court;

(b) Second, the receiver shall pay for the heat-related utility service or services provided on or after the creation of the receivership;

(c) Third, amounts remaining after consideration of paragraphs (a) and (b) of this subdivision shall be utilized to reimburse the petitioner(s) for receivership for reasonable attorneys' fees and other reasonable costs and expenses incurred by such petitioner(s);

(d) Fourth, if any amount is owed by the owner for the heat-related utility service or services related to the creation of the receivership for service provided prior to the creation of the receivership, then one-half of any amount remaining after the payment of amounts under paragraphs (a), (b), and (c) of this subdivision shall be paid toward such amounts; and

(e) Fifth, amounts remaining after compliance with paragraphs (a), (b), (c), and (d) of this subdivision shall be paid to the owner.

6. The owner of a master-metered multitenant dwelling for which a receiver has been appointed under this section shall be liable to the receiver for all reasonable costs incurred by the receiver, as determined by the court to be due the receiver.

7. A receivership established under this section shall be terminated if any of the following circumstances occur:

(1) During any three-month period the proceeds paid from the receivership do not cover the items described in paragraphs (a) and (b) of subdivision (4) of subsection 5 of this section for the most similar corresponding three-month period;

(2) The gas corporation or electrical corporation, at a hearing, shows that the reasonably expected proceeds from a receivership will not cover the reasonably expected costs of the receivership plus the reasonably expected costs of continuing to provide heat-related utility service;

(3) Less than seventy-five percent of the tenants pay their rents for two consecutive rent payment periods; or

(4) All outstanding amounts owed the gas corporation or electrical corporation have been paid.

­­Upon the occurrence of the termination of a receivership pursuant to this subsection, the receiver shall make a complete accounting to the court, including a written statement of the reason for the termination of the receivership.

8. A gas corporation or electrical corporation that provides heat-related utility service which is the cause of a receivership created under this section, or the owner of the master-metered multitenant dwelling ** which is subject to such receivership, may, at any time:

(1) Petition the court for termination of the receivership on the grounds that the reasonably expected proceeds of the receivership will not cover the reasonably expected costs of the receivership plus the reasonably expected cost of continuing to provide heat-related utility service; or

(2) Petition the court for a change of receiver due to the failure of the existing receiver to promptly pay petitioner appropriate amounts or for failing to properly carry out other required duties.

­­A gas corporation or electrical corporation that provides such heat-related utility service may also petition the court for termination of the receivership on any of the grounds set forth in subsection 7 of this section. The court shall hold a hearing and render a decision on any petition filed under this subsection within thirty days of the receipt of the petition and shall provide reasonable written notice of such a hearing by mailing notice of the hearing at least six days prior to the hearing to any gas corporation, electrical corporation, owner and tenant involved in the receivership or by any other method designed to provide written notice to such persons and corporations at least four days prior to the hearing.

9. Any owner who collects, or attempts to collect, any rent or payment for use or occupancy from any tenant of a master-metered multitenant dwelling which is subject to an order appointing a receiver pursuant to this section shall be found, after due notice and hearing, to be in contempt of court.

10. Except for the limitations on termination of service expressly stated in subsection 4 of this section, this section shall in no way limit the rights of gas corporations and electrical corporations to recover amounts lawfully owed to them.

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(L. 1985 S.B. 294 § 1)

*Sections 515.240 to 515.260 were repealed by S.B. 578, 2016.

**Word "for" appears here in original rolls.