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.

House Bill 1695 clarifies the foreclosure process for properties subject to municipal liens, directly affecting municipalities, property owners, and other lienholders. The bill allows municipalities to establish priority for unrecorded municipal liens and outlines how proceeds from property sales are distributed based on lien priority. It requires municipalities to name all record lienholders in foreclosure actions where they claim priority; otherwise, the unnamed lienholder's claim remains on the property. Additionally, the bill enables municipalities to petition to set aside the sale of property to certain persons.