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HB 1797

DCFS-ANCRA-AJ'S LAW

104th Regular Session Introduced by Nicole La Ha and 2 co-sponsors

HB 1797 empowers the Arkansas Development Finance Authority to operate independently, speeding up housing solutions and boosting economic growth by reducing red tape.

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Bill Summary · HB 1797

Summary of House Bill 1797 (Act 944)

Bill Number: HB 1797
Title: To Amend the Law Concerning the Arkansas Development Finance Authority; and to Declare an Emergency
Status: Now Act 944
Introduced: March 14, 2025
Legislative Session: 95th General Assembly, Regular Session, 2025

Purpose and Intent

House Bill 1797 aims to amend existing laws governing the Arkansas Development Finance Authority (ADFA) to enhance its operational independence and efficiency. The bill addresses the ongoing housing crisis in Arkansas, which is seen as a barrier to economic growth and job creation. By restructuring the ADFA, the bill seeks to streamline its processes and reduce bureaucratic oversight, thereby improving its ability to respond to housing and development needs.

Key Provisions

The bill includes several significant changes to the Arkansas Code:

  1. Independence from the Department of Commerce:

    • The ADFA will be transferred out of the Department of Commerce, allowing it to operate as an independent entity.

  2. Exemption from State Regulations:

    • The ADFA will be exempt from certain state regulations, including the Arkansas Administrative Procedure Act, which governs the rule-making process for state agencies.

  3. Operational Efficiency:

    • The authority will have the power to conduct various financial transactions (e.g., purchasing mortgage loans, issuing bonds) without needing prior approval from the state, thus expediting its operations.

  4. Financial Management:

    • All revenues received by the ADFA, except those from appropriations, will be classified as cash funds restricted for specific uses, exempt from public funds regulations under the Arkansas Procurement Law.

  5. Board of Directors:

    • The members of the ADFA board will serve without compensation but may be reimbursed for reasonable expenses incurred while performing their duties.

  6. Reporting Requirements:

    • The President of the ADFA will be required to report to the Legislative Council or Joint Budget Committee on any contract or procurement matters as requested.

Impact

The amendments proposed in HB 1797 are expected to:
- Enhance the ADFA's ability to address housing issues by allowing quicker decision-making and reducing bureaucratic hurdles.
- Improve economic competitiveness by enabling more efficient financing for housing and development projects.
- Affect stakeholders including local governments, housing developers, and residents in need of affordable housing.

Procedural Aspects

  • The bill was introduced on March 14, 2025, and underwent several amendments before being passed.
  • An emergency clause was adopted, allowing the bill to take effect immediately upon being signed into law.
  • The bill was enrolled and transmitted to the Governor's Office on April 16, 2025, and was officially enacted as Act 944 on April 21, 2025.

In summary, HB 1797 represents a significant shift in how the Arkansas Development Finance Authority operates, aiming to enhance its effectiveness in addressing critical housing and economic development challenges in the state.

Compiled from official sources — confirm details with the bill’s official record.

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