HB1399
To Amend The Law Concerning The Issuance Of Donation Deeds And Homestead Donation Deeds By The Commissioner Of State Lands.
AI-Generated Summary
This bill proposes amendments to Arkansas law concerning the issuance of donation deeds and homestead donation deeds by the Commissioner of State Lands. It revises statutes related to recovering lands held under tax title, establishing a two-year statute of limitations for such actions. The bill also modifies the enumeration of special revenues collected by the Commissioner of State Lands. A significant portion of the bill focuses on repealing and replacing the "Commissioner of State Lands Urban Homestead Act." The new provisions aim to prevent the waste of tax-forfeited urban properties by allowing their donation to specific entities for homestead development. Eligible applicants include cities, incorporated towns, community development organizations, and entities seeking low-income housing tax credits. These entities would be responsible for developing the donated land into homesteads for eligible individuals or families. The bill outlines the application process, contract requirements, and the waiver of outstanding taxes and penalties upon donation. It also introduces provisions allowing donated parcels to be used for public school development under certain conditions. Finally, it amends a statute regarding the release of overdue tax lands sold to the state under specific historical acts.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be eligible entities such as cities, incorporated towns, community development agencies, community development corporations, local initiative support corporations, housing authorities, and organizations seeking federal low-income housing tax credits. These entities would benefit from the potential acquisition of tax-forfeited urban properties at minimal cost for the purpose of developing homesteads. Ultimately, eligible low-income individuals and families seeking affordable housing would also benefit from the creation of new homestead opportunities. Additionally, public school districts and open-enrollment public charter schools may benefit by being able to acquire donated parcels for educational purposes under specific circumstances, potentially alleviating their land acquisition costs in certain areas.
Who Might Suffer?
The groups that could be negatively impacted by this bill are potential original owners or their heirs who may have lost their property due to unpaid taxes and now face an additional two-year statute of limitations to reclaim it after the bill's enactment. While the bill modifies existing statutes, the tightened timeframes for recovery could make it more challenging for individuals to prove their prior possession and reclaim their land if they were unaware of the forfeiture or previous legal processes. Furthermore, any tax lien holders or other creditors with encumbrances on properties donated under this act might find their claims complicated or their ability to recoup their debts diminished, depending on the specific terms of the donation and the waiver of outstanding taxes.