Property Owners Appeal Board Regular Meeting - July 14, 2025

The Property Owners Appeal Board met on July 14, 2025, at 11:00 a.m. at the Blue Lion, Fort Smith, Arkansas. The board elected a new chairperson, scheduled two appeal hearings for September, reviewed the preliminary 2025 delinquent lien list, and received a detailed activity report from the Neighborhood Services Department covering code enforcement, homeless encampments, and new state legislation on squatting.

Consent Calendar

• The minutes of the December 9, 2024 meeting were approved as presented (motion carried unanimously).

Discussion Items

• Selection of Chairperson 2025-2026: Board members nominated Justin Sparrow and Megan Raynor. After a motion and second for Justin Sparrow, the board voted in favor (3 ayes, 0 nays). The subsequent motion for Megan Raynor was voted down (nays). Justin Sparrow was elected chair for the term July 15, 2025 to July 14, 2026.
• Scheduling Appeal Hearings for September: The board considered available dates in September, avoiding Wednesdays (board unavailable) and dates when staff were unavailable (Sept 3 and 11). A motion to hold appeal hearings on September 4 and September 10, 2025, at 6:00 p.m. was made, seconded, and carried.
• Review of Delinquent Liens/Properties Included in 2025 Appeal Process: The preliminary list of delinquent liens as of June 30, 2025, was distributed. Statistics: 399 liens totaling $188,180.69 from 186 property owners (compared to 2024: 270 liens, $135,230.82 from 172 property owners). Staff noted that some 2023 cleanings not previously included were added due to technical issues; the city has 10 years to take action. Several liens were highlighted: (a) A couple (Bill/Bull) making $10/month payments since 2013 on a ~$1,677 lien – staff chose not to certify despite exceeding the 10-year window, due to consistent payments and the couple’s age. (b) Liens on Fort Smith Cemetery properties (Roselawn, Holy Cross, Forest Park) – staff explained these were placed to create a paper trail for city-funded abatements approved by the Board of Directors. The Cemetery Board is scheduled to address the Board of Directors on July 15, 2025, requesting the city permanently cover maintenance of these privately owned cemeteries. Discussion included the cemeteries’ trust fund (~$600,000) and inability to access principal. The board expressed that liens should remain intact unless the Board of Directors acts to waive them.
• Report of Activities of the Neighborhood Services Department: Shawn Gard, Director, presented a detailed report for 2024 and year-to-date 2025. Key points:
  • Environmental Code Violations: In 2024, 12,748 property inspections, 12,511 warnings, 13,369 follow-ups, 574 contractor abatements. In 2025 (Jan–June), 6,474 inspections, 6,394 warnings, 5,776 follow-ups, 214 abatements. Increase in inspections, warnings, and follow-ups compared to 2023 (17%, 19%, 13% respectively).
  • Property Maintenance Code Enforcement: 2024 had 280 new cases, 5,775 inspections, 186 cleared, 301 court cases. 2025 year-to-date: 81 new, 2,834 inspections, 86 cleared, 123 court cases.
  • Target Areas: In 2024, three target areas (two north side, one south side) were identified. Of 25 structures, 22 were resolved (90 structures brought into compliance overall); only 12 remain non-compliant (most in district court). The board plans to identify new areas for 2026.
  • Homeless Encampments: Encampments increased from 26 in 2023 to 29 in 2024, and already 40 in 2025 (35 cleared, 5 active). Encampments are growing larger and more sophisticated (e.g., 30 people behind FedEx on Wheeler Ave with solar panels, batter chargers). There is an estimated 30–50 person encampment at South 4th and I on the riverfront. Many individuals are coming from other states/regions (California, Ohio, Seattle, Texas, Northwest Arkansas), lured by Fort Smith’s services. Staff refer them to nonprofits, but many refuse to go to Hope Campus.
  • Squatting in Vacant Structures: Increasing problem. Examples: 1000 S. 21st (old Goodyear building) – purchased sight-unseen by out-of-state company, damaged extensively (wiring, plumbing, HVAC stolen). 416 N. D Street (old Baptist Health building) – squatters caused a fire, scheduled for demolition by owner. Staff coordinate with police to obtain orders of entry, clear structures, and board them up. Under property maintenance code, boarding can only last one year before structure must be made habitable or demolished.
  • New State Law – Act 238 (HB1049): Criminalizes unlawful squatting. First offense is a Class B misdemeanor, second offense Class A, third offense Class D felony. Allows law enforcement to remove squatters without eviction proceedings if they cannot produce a deed, lease, or rent receipt. Staff now posts state law notices on encampments and structures. This is seen as an additional tool.
  • Demolition Budget: Increased from $150,000 to $300,000 for 2025. So far in 2025, five demolitions completed, with four to five more planned.
  • Muhammad Raj property (North 8th Street, Belgrove Historic District): Under court order with daily fines; contractor hired; roof and porch being repaired. Staff noted historic district constraints.

Key Outcomes

• Justin Sparrow elected Chairperson for 2025-2026.
• Appeal hearings scheduled for September 4 and September 10, 2025, at 6:00 p.m.
• The preliminary 2025 delinquent lien list was reviewed; staff will continue verification and a final list will be prepared for the appeal hearings. No formal action taken.
• The Neighborhood Services Department report was received and discussed. No formal board action, but the board expressed appreciation and noted areas of concern (encampments, squatting, cemetery liens).
• Meeting adjourned by motion.