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House Moves to Block Abuse of Eminent Domain Powers
Blocking states from taking advantage of the Kelo ruling that was recently handed down by the U.S. Supreme Court, the House of Representatives has overwhelmingly and with bipartisan support approved legislation intended to protect private property owners from the government’s excessive use of their powers of eminent domain.
Widely criticized by both Republicans and Democrats in Congress, the court ruling upheld a jurisdiction's ability to take non-blighted property from private owners to accommodate new private development.
While eminent domain can be a valuable tool for rejuvenating neighborhoods, some NAHB members were concerned that the Supreme Court interpretation could be construed to allow the taking of private land earmarked for housing in favor of commercial uses that would bring in greater tax revenues.
In an attempt to remedy this situation, the House bill, approved Nov. 3, would withhold for two years all federal economic development funds from states and localities that use economic development as a rationale for property seizures.
The measure also bars the federal government from using eminent domain powers for purposes of economic development.
Consistent with NAHB policy, it continues to allow eminent domain to be used for traditional projects, such as roads, schools and utilities. Moreover, the House passed an NAHB-supported amendment to ensure that eminent domain can be used to redevelop brownfields.
More work is needed to ensure that local and state governments can continue to use eminent domain to rejuvenate blighted areas, and NAHB will be working closely with the Senate on this issue.
Companion legislation has been introduced in the Senate, but no date has been set for its consideration.
Meanwhile, approximately 34 states are also considering changes to their laws in response to the Kelo decision.
To read the legislation, click here and enter H.R. 4128 in the box at the upper left.
For more information on this issue, e-mail J.P. Delmore at NAHB, or call him at 800-368-5242 x8412; or contact Mary Lynn Pickel, x8485.
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