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HB 1695

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.

2025 Regular Session Introduced by Wade Andrews and 3 co-sponsors

HB 1695 aimed to empower Arkansas municipalities to clarify foreclosure processes, prioritize unrecorded liens, and recover costs for neglected properties.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1695

Summary of House Bill 1695

Bill Number: HB 1695
Title: 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.
Status: Died in House Committee at Sine Die adjournment
Introduced: March 05, 2025
Sponsor: Representative J. Richardson, along with Representatives Andrews and Hudson, and Senator Crowell

Purpose and Intent

House Bill 1695 aimed to amend existing laws regarding municipal liens related to neglected and tax-delinquent properties in Arkansas. The bill sought to clarify the foreclosure process for properties subject to municipal liens, allow municipalities to petition to set aside sales of properties to certain individuals, and establish the priority of unrecorded municipal liens over other unrecorded liens.

Key Provisions

The bill included several significant amendments to the Arkansas Code, particularly focusing on the following areas:

  1. Foreclosure Process Clarification:

    • Municipalities would have the authority to file for foreclosure in circuit court for properties with municipal liens.
    • The bill mandated that all lienholders of record be named in foreclosure actions to ensure transparency and fairness.

  2. Petition to Set Aside Sales:

    • Municipalities could petition the circuit court to set aside the sale of property to individuals who own tax-delinquent properties, thereby providing a mechanism for municipalities to intervene in property sales that may not be in the public interest.

  3. Priority of Unrecorded Liens:

    • The bill established that unrecorded municipal liens would take priority over other unrecorded liens, ensuring that municipalities could recover costs associated with property maintenance and remediation.

  4. Cost Recovery:

    • The bill outlined specific limits on the amounts municipalities could recover for various types of property maintenance, including:
      • Up to $2,000 for grass or weed cutting.
      • Up to $10,000 for boarding and securing properties.
      • Up to $15,000 for demolition of structures.
      • Up to $30,000 for environmental remediation.

  5. Timelines for Filing Liens:

    • Municipalities were required to file liens within specified timeframes after completing cleanup work or confirming lien amounts, ensuring timely recovery of costs.

Impact

The proposed legislation would have primarily affected municipalities in Arkansas, providing them with enhanced tools to manage neglected properties and enforce municipal codes. Property owners, particularly those with tax-delinquent properties, would also be significantly impacted, as the bill aimed to streamline the process for municipalities to address property neglect and recover costs.

Procedural Timeline

  • March 05, 2025: Bill filed and read for the first time.
  • March 20, 2025: Passed in the House and transmitted to the Senate.
  • April 10, 2025: Returned from the Senate with amendments and passed.
  • May 05, 2025: Bill died in House Committee at Sine Die adjournment.

Despite its potential benefits for municipalities and community health, HB 1695 ultimately did not progress beyond the committee stage.

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

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