Arkansas House Bill HB1695

Arkansas 2025 Regular Session

• Introduced: 3/5/25
• Refer: 3/5/25
• Report Pass: 3/19/25
• Engrossed: 3/20/25
• Refer: 3/20/25
• Report Pass: 4/7/25
• Refer: 4/9/25
• Failed: 5/5/25

Caption

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.

Impact

One significant change introduced by HB 1695 is the provision that allows municipalities to enjoin the sale of property to individuals or entities that already own tax-delinquent properties in the state. This aims to minimize the sale of real estate to those who have a history of neglecting property and not complying with municipal regulations. Furthermore, the bill gives priority to unrecorded municipal liens, which could fundamentally alter how properties are sold at public auctions, placing new responsibilities on buyers and additional considerations for municipalities seeking to recover costs.

Summary

House Bill 1695 focuses on amending laws related to municipal liens associated with neglected and tax-delinquent properties in Arkansas. This bill aims to clarify the foreclosure process for properties under municipal liens, allowing cities and towns to take more streamlined actions when property owners fail to comply with orders relating to unsafe or unsanitary conditions. By clearly outlining the steps and requirements for enforcing these liens, the bill seeks to improve the efficiency with which municipalities can address neglected properties and recover costs associated with their removal or repair.

Contention

While the aim of HB 1695 is to enhance local authority’s ability to manage neglected properties effectively, some concern has been raised regarding the potential burden placed on property owners, particularly those who might be unable to pay for the upkeep or removal of structures on their properties. Opponents argue that this bill might lead to increased foreclosures and exacerbate issues surrounding affordable housing, as municipalities could more readily impose liens and initiate foreclosure actions. The debate emphasizes the balance between community standards and the rights of property owners, making it a contentious issue among stakeholders.