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Bill > HB1695


AR HB1695

AR HB1695
To Clarify The Foreclosure Process For Property Subject To A Municipal Lien; To Allow A Municipality To Petition To Set Aside The Sale Of Property To Certain Persons; And To Provide For The Priority Of Unrecorded Municipal Liens.


summary

Introduced
03/05/2025
In Committee
04/09/2025
Crossed Over
03/20/2025
Passed
Dead
05/05/2025

Introduced Session

Potential new amendment
95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO AMEND THE LAW CONCERNING MUNICIPAL LIENS RELATED TO NEGLECTED PROPERTY AND TAX-DELINQUENT PROPERTY; TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO ENJOIN THE SALE OF PROPERTY BY THE STATE TO A PERSON THAT OWNS TAX-DELINQUENT PROPERTY IN THIS STATE; TO PROVIDE FOR THE PRIORITY OF UNRECORDED MUNICIPAL LIENS OVER OTHER UNRECORDED LIENS; AND FOR OTHER PURPOSES.

AI Summary

This bill clarifies and modifies several aspects of municipal liens and property foreclosure processes in Arkansas. The legislation expands municipalities' abilities to address neglected properties by extending timelines for filing liens (increasing from 60 to 180 days in some cases), increasing the priority lien amounts for various cleanup activities like grass cutting, boarding up properties, demolition, and environmental remediation. The bill allows cities and towns to file foreclosure actions in circuit court, potentially leading to public sales of properties, with a detailed procedure for how such sales should be conducted, including notification requirements and proceeds distribution. Additionally, the bill enables municipalities to enjoin (block) the sale of tax-delinquent property to persons who already own other tax-delinquent or liens-encumbered properties, and provides a mechanism for municipalities with unrecorded cleanup liens to claim priority status and receive funds from property sales. The changes aim to give local governments more tools to address property neglect, manage tax-delinquent properties, and recover costs associated with property maintenance and cleanup.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (4)

Last Action

Died in House Committee at Sine Die adjournment. (on 05/05/2025)

bill text


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