Struck = removed from the bill ·
added = the amendment's new text.
StrickenHall languageof wouldthe beHouse deletedof fromRepresentatives and95th underlinedGeneral languageAssembly would- beRegular addedSession, to2025 presentAmendment law.Form ______________________________________________________________________ Subtitle of House Bill 1695 TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN;
StateTO ofALLOW ArkansasA AsMUNICIPALITY Engrossed:TO ENJOIN THE SALE OF PROPERTY TO CERTAIN PERSONS;
H3/17/25 S4/8/25 95th General Assembly A Bill Regular Session, 2025 HOUSE BILL 1695 5 By:
Representatives J.
Richardson, Andrews, Hudson By:
Senator Crowell 8 For An Act To Be Entitled 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 PETITION TO SET ASIDE 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.
Subtitle 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;
BE______________________________________________________________________ ITAmendment ENACTEDNo. BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION1 1.to House Bill 1695 Amend House Bill 1695 as originally introduced:
Page 1, line 13, delete "ENJOIN" and substitute "PETITION TO SET ASIDE" AND Delete the subtitle in its entirety and substitute:
"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." AND Immediately after the enacting clause, add an additional section to read as follows:
"SECTION 1.
and to eliminate, fill up, or remove stagnant pools of water or any other unsanitary thing, place, *JLL189*or 04-08-2025condition 11:19:05which JLL189might Asbecome Engrossed:a breeding place for mosquitoes, flies, and germs harmful to the health of the community, after the town or city has provided therefor by an ordinance to that effect.
H3/17/25(b) S4/8/25A HB1695city of the first class, a city of the second class, or conditionan which*.JLL297* mightJLL297 become- a03-11-2025 breeding05:20:17 placePage for1 mosquitoes,of flies,4 andincorporated germstown harmfulmay toorder the healthremoval ofor razing of, or remove or raze, buildings or houses that in the community,opinion afterof the city council or town council have become dilapidated, unsightly, unsafe, unsanitary, obnoxious, or citydetrimental hasto providedthe thereforpublic bywelfare anand shall provide by ordinance tothe thatmanner effect.of removing and making these removals." AND Page 2, delete line 20, and substitute the following:
(b)"(2) AThe citytown ofor the first class, a city of the second class, or an incorporated town mayshall orderfile the removallien orwith razingthe of,circuit orcourt removecounty orrecorder" raze,AND buildingsPage or2, housesline that27, indelete the"circuit opinionclerk" ofand thesubstitute city"circuit councilclerk orcounty townrecorder" councilAND havePage become3, dilapidated,delete unsightly,lines unsafe,22 unsanitary,and obnoxious,23, or detrimental to the public welfare and shallsubstitute provide by ordinance the mannerfollowing: of removing and making these removals.
SECTION"record 2.in the office of the county recorder within thirty (30) days of the satisfaction of the lien." AND Page 4, line 13, delete "laws;" and substitute "laws;
Arkansasand" CodeAND §Page 14-54-903(b),4, concerningline the16, refusaldelete of"property;" aand propertysubstitute owner"property." toAND complyPage with4, adelete municipalline notice17, relatedand tosubstitute neglectedthe property,following: is amended to read as follows:
(b)(1)"(iv)(a) IfWhen thea ownercommissioner orappointed lienholderunder ofsubdivision any(a)(1)(B)(ii) lotof orthis othersection realhas propertyset withinthe antime incorporatedand townplace orof citya neglectspublic orsale refuses to remove, abate, or eliminate any condition under ansubdivision ordinance(a)(1)(B)(iii)(b) passedof bythis section, the city or town asthat providedpetitioned infor §the 14-54-901,sale afterof havingthe beenproperty givenunder sevensubdivision (7)(a)(1)(B)(i) days'of noticethis insection writingshall toprovide donotice so,of then the townsale or city may do whatever is necessary to correct the conditionowner andof tothe chargeproperty theat costthe" thereofAND toPage the4, ownerdelete oflines the21 lotsand or22, otherand realsubstitute property.the following:
(2)"(b) A city or town incurringis costsnot underrequired subdivisionto (b)(1)notify ofa" thisAND sectionPage may4, collectdelete thelines costs24 fromthrough the26, ownerand ofsubstitute the lotfollowing: or other real property in the manner provided for the collection of a civil judgment.
SECTION"this 3.subdivision (a)(1)(B)(iv).
ArkansasJLL297 Code- §03-11-2025 14-54-903(c)(2),05:20Amendment concerningNo. the refusal of a property owner to comply with a municipal notice related to neglected property, is amended to read as follows:
(2)1 Theto townHouse orBill city1695 orPage town2 shallof file4 the(c) lienThe withnotice theto circuitan courtowner countyrequired recorderunder nosubdivision later(a)(1)(B)(iv)(a) thanof onethis hundredsection twentyshall (120)contain daysat afterleast" theAND townPage or4, citydelete completeslines the32 clean-upand work33, onand substitute the property.following:
SECTION"sale 4.of the property by publishing an advertisement in a" AND Page 5, delete lines 2 through 31, and substitute the following:
Arkansas"subdivision Code(a)(1)(B) §of 14-54-903(i),this concerningsection shall be distributed in accordance with the refusalorder of adisbursement propertyissued ownerby tothe complycircuit withcourt." aAND municipalPage notice6, relatedline to8, neglecteddelete property,"14-56-203" isand amendedsubstitute to"14-56-203 read14-54-901(b)" asAND follows:Page 6, line 21, delete "circuit clerk" and substitute "county recorder" AND Page 6, delete lines 24 through 26, and substitute the following:
(i)"of Thethe citylien oron townthe shallrecord filein itsthe lienoffice withof the circuit clerk county recorder nowithin laterthirty than(30) sixty (60) days afterof the governingsatisfaction body of the citylien. 04-08-2025 11:19:05 JLL189 As Engrossed:
H3/17/25SECTION S4/8/2510. HB1695 or town confirms the lien amount, or if the lien is appealed, within sixty (60) days after the city or town wins on appeal.
4 SECTION 5.
Arkansas Code § 14-54-903(j)(2), concerning the refusal of a property owner to comply with a municipal notice related to neglected property, is amended to read as follows:
(2) Priority status shall be awarded to the priority clean-up lien with respect to any previously recorded lien if the court determines that such lienholder has failed to exercise its rights to foreclose its lien when the obligation it secures becomes in default or has failed to pay the costs of work undertaken by a city or town that composes the clean-up lien.
However, the amount as to which the clean-up lien shall have priority shall be the amount the court finds reasonable and is limited to:
(A) No more than one two thousand dollars ($1,000) ($2,000) for grass or weed cutting;
(B) No more than five ten thousand dollars ($5,000) ($10,000) to board and secure the property;
(C) No more than seven thousand five hundred dollars ($7,500) fifteen thousand dollars ($15,000) to demolish any structures on the property;
or (D) No more than fifteen thirty thousand dollars ($15,000) ($30,000) for environmental remediation.
SECTION 6.
Arkansas Code § 14-54-903, concerning the refusal of a property owner to comply with a municipal notice related to neglected property, is amended to add an additional subsection to read as follows:
(k) If an indebtedness filed as a lien under this section is paid and satisfied, the city or town shall enter satisfaction of the lien on the record in the office of the county recorder within thirty (30) days of the satisfaction of the lien.
SECTION 7.
Arkansas Code § 14-54-904(a)(1), concerning the manner of enforcing a lien for clearance by municipality, is amended to read as follows:
(1)(A) By an action for foreclosure in the circuit court by the city or town, or if the city or town has established a land bank, by a land 04-08-2025 11:19:05 JLL189 As Engrossed:
H3/17/25 S4/8/25 HB1695 bank that has been assigned the lien.
(B)(i) A city or town that has been granted a lien under this subchapter may:
(a)(1) File an action for foreclosure under this subdivision (a)(1) in the circuit court that has jurisdiction over the property that is subject to the lien.
(2) An action for foreclosure under this subdivision (a)(1) shall name all lienholders of record over which a city or town claims the city or town has priority as parties to the foreclosure.
(3) If a lienholder is not named as a party to a foreclosure under subdivision (a)(1)(B)(i)(a)(2) of this section, the lien held by the lienholder shall remain on the property;
and (b) Petition for the circuit court to order the sale of the property.
(ii)(a) If a city or town petitions a circuit court for the sale of property under subdivision (a)(1)(B)(i) of this section, the circuit court may order the property to be sold at a public sale.
(b) If a circuit court orders the sale of property at a public sale under subdivision (a)(1)(B)(ii)(a) of this section, the circuit court shall appoint a commissioner to oversee the sale of the property.
(iii) A commissioner appointed under subdivision (a)(1)(B)(ii)(b) of this section shall:
(a) Be responsible for conducting the public sale of the property in accordance with the order of the circuit court and any applicable laws;
and (b) Set the time and place of the public sale at a date that is at least thirty (30) days after the circuit court ordered the sale of the property.
(iv)(a) When a commissioner appointed under subdivision (a)(1)(B)(ii) of this section has set the time and place of a public sale under subdivision (a)(1)(B)(iii)(b) of this section, the city or town that petitioned for the sale of the property under subdivision (a)(1)(B)(i) of this section shall provide notice of the sale to the owner of the property at the owner's last known address and any lienholders of record at the address shown in the relevant land records of the time and place of 04-08-2025 11:19:05 JLL189 As Engrossed:
H3/17/25 S4/8/25 HB1695 the public sale of the property.
(b) A city or town is not required to notify a holder of an unrecorded lien or an unrecorded assignee of a lienholder under this subdivision (a)(1)(B)(iv).
(c) The notice to an owner required under subdivision (a)(1)(B)(iv)(a) of this section shall contain at least (3) The notice to an owner required under subdivision (a)(1)(B)(iii)(c)(1) of this section shall contain at least a partial or abbreviated legal description of the property, the parcel number for the property, the date of the public sale of the property, and a statement that the property will be sold if not redeemed by the date of the public sale;
and (d) Advertise the time and place of the public sale of the property by publishing an advertisement in a newspaper of general circulation in the county in which the property is located at least one (1) time a week for two (2) consecutive weeks before the public sale.
(C) Proceeds from a public sale conducted under subdivision (a)(1)(B) of this section shall be distributed based on the priority of the liens on the property in accordance with the order of disbursement issued by the circuit court.
(D) A lien that exists on property sold at a public sale that complies with the requirements stated in this section and is conducted under subdivision (a)(1)(B) of this section that is not satisfied after the distributions provided under subdivision (a)(1)(C) of this section is extinguished upon the completion of the public sale conducted under subdivision (a)(1)(B) of this section;
or SECTION 8.
Arkansas Code § 14-54-904(b)(1)(A), concerning the enforcement of a lien for clearance by municipality, is amended to read as follows:
(b)(1)(A)(i) In any situation in which a city of the first class or city of the second class or town issues an order for the removal, repair to return the structure to compliance with minimum building code standards, or razing of a building or house under the provisions of 14-56-203 14-54-901(b) and such order is not complied with by the owner of the building or house and the city or town then removes, repairs, or razes the building or house, a 04-08-2025 11:19:05 JLL189 As Engrossed:
H3/17/25 S4/8/25 HB1695 lien is granted and given against the real property for the cost of the owner of the building or house is liable for all costs incurred by the city or town related to the removal, repair, or razing of the building or house, including without limitation any administrative, legal, filing, collection, and title search costs.
(ii) A city or town may collect costs incurred under this subsection from the owner of the building or house in any manner provided for the collection of a civil judgment.
(iii) A city or town is granted a lien for the costs incurred under this subsection, which shall be filed in the office of the county recorder within one hundred twenty (120) days.
(iv) If an indebtedness filed as a lien under this subsection is paid and satisfied, the city or town shall enter satisfaction of the lien on the record in the office of the county recorder within thirty (30) days of the satisfaction of the lien.
SECTION 9.
Cities of the first class, cities of the second class, and incorporated towns may order the removal or razing of, or remove or raze, buildings or houses that in the opinion of the city council or town council have become dilapidated, unsightly, unsafe, unsanitary, obnoxious, or detrimental to the public welfare and shall provide by ordinance the manner of removing and making these removals.removals." AND Page 6, delete lines 31 and 32, and substitute the following:
SECTION"(3) 10.A city or town incorporated in this state may petition the Commissioner of State Lands to exercise his or her authority under § 26-37- 204(b) to set aside a conveyance under this section to a person or" AND Appropriately renumber the sections of the bill JLL297 - 03-11-2025 05:20Amendment No.
Arkansas1 Codeto §House 26-37-205(b)(2)(A),Bill concerning1695 thePage distribution3 of funds4 fromThe theAmendment salewas of tax-delinquent property, is amended to read as________________________________________________________________________________ follows:By:
(2)(A)Representative AfterJ. Except as provided in subdivision (b)(2)(E)(ii) of this section, after payment is made to the Commissioner of State Lands pursuant to subdivision (b)(1) of this section, the amount left in the remaining funds shall be paid to the former owners of the tax-delinquent parcel.
SECTIONRichardson 11.JLL/JLL - 03-11-2025 05:20:17 _________________________ JLL297 Chief Clerk JLL297 - 03-11-2025 05:20:17 Amendment No.
Arkansas1 Codeto §House 26-37-205(b)(2)(E),Bill concerning1695 thePage distribution4 of funds4 from the sale of tax-delinquent property, is amended to 04-08-2025 11:19:05 JLL189 As Engrossed:
H3/17/25 S4/8/25 HB1695 read as follows:
(E)(i) In the event of any dispute, claim, multiple claims of ownership, controversy regarding the release of the funds, or claim not expressly permitted under this section, the Commissioner of State Lands may require the party or parties to provide a court order to resolve the issues and to establish the party or parties entitled to the remaining funds.
(ii)(a) A city or town incorporated in this state that possesses an unrecorded clean-up lien on property under § 14-54-903(c) or § 14-54-904(b) may file a claim for the amount of the unrecorded lien in circuit court.
(b) A claim for the amount of an unrecorded lien under this subdivision (b)(2)(E)(ii) has priority status over other unrecorded liens.
(c) A court that determines the validity of a claim for the amount of an unrecorded lien under this subdivision (b)(2)(E)(ii) shall issue an order for the amount to be distributed by the Commissioner of State Lands to the city or town from the escrow fund established under subdivision (a)(6) of this section before funds may be released to the former owners of the property.
/s/J.
Richardson 7 04-08-2025 11:19:05 JLL189