When we began posting about the possible use of eminent domain to acquire underwater mortgages in August 2012, we pointed out that “The Chicago City Council’s resolution calling for a hearing on the use of eminent domain to condemn underwater mortgages noted that officials in three states, including Florida, are ‘being persuaded to
State Road 82 Road Widening – Colonial/Lee Boulevard to Shawnee Road Update
The Florida Department of Transportation’s preliminary construction plans for the Colonial/Lee Boulevard to Shawnee Road segment of the State Road 82 widening project show the property locations FDOT needs at the State Road 82 and Daniels Parkway/Gunnery Road intersection. (In my March 13, 2013 post, I explained that the 23 mile-long widening project is made
State Road 82 Road Widening – Are you Ready Lee County – Part II – Shawnee Road to Alabama Road
The Florida Department of Transportation (“FDOT”) continues to move forward with its plans to widen State Road 82 along the 23-mile long stretch that runs through portions of three counties in Southwest Florida, including Lee County. Widening State Road 82 raises a number of issues that may affect area residents and motorists. Most importantly, widening
State Road 82 Road Widening – Are you Ready Lee County?
Ready or not, here comes the Florida Department of Transportation! In case you haven’t noticed, the Florida Department of Transportation (“FDOT”) plans to widen State Road 82 from two lanes to four lanes (and six lanes in some areas) on a 23-mile long portion of State Road 82 running through parts of Lee, Hendry, and
Will Local Government Use Eminent Domain to Condemn Underwater Mortgages or Homes in Florida? – Part III
I last updated you on January 29, 2013, letting you know that the Homeownership Protection Program Joint Powers Authority — the entity created by San Bernardino County and the cities of Fontana, California and Ontario, California to study, develop, and carry out the underwater mortgage condemnation plan — had decided to abandon any further
Will Local Government Use Eminent Domain to Condemn Underwater Mortgages or Homes in Florida – Part II
About six months ago, I wrote a blog post asking whether local governments would use eminent domain to condemn underwater mortgages or homes in Florida. Then, late last year, I updated the August 2012 blog post for the ABA’s Condemnation, Zoning & Land Use Litigation Committee, adding information about the actions of various political
Will Local Government Use Eminent Domain to Condemn Underwater Mortgages or Homes in Florida?
It’s no secret that the U.S. economy remains in critical condition. Florida, along with several other states, suffered more than most during the recession, and Florida continues to suffer. Florida’s economic woes stem, in part, from the “foreclosure crisis” caused by people taking on more debt than they could afford when buying homes. According to the August 9, 2012 edition of Gulfshore Business Daily, Florida had the nation’s third-highest foreclosure rate in July 2012. As reported by CNN, in some California communities, the unusually large number of foreclosures over the last few years has resulted in vacant homes, declining property values, and the corresponding loss of property tax revenues. The same holds true here in Florida and, in the absence of a replacement revenue source, local governments dependent on property tax revenues have had to cut costs and services to try to meet budgets. Faced with this situation, local governments in several parts of the country are considering the use of an unorthodox tool to solve the problems caused by “underwater” mortgages and homes — eminent domain.
It came from California…
Many people are familiar with the use of eminent domain to acquire private property for public use, such as the widening of a public road. The Wall Street Journal reported that San Bernardino County and two other California communities are considering the use of eminent domain to acquire home loans that are current, but “underwater.” (A home or loan is “underwater” if the amount owed exceeds the value of the home serving as collateral.) The City of Chicago, Illinois, and Suffolk County, New York have also considered use of eminent domain in this manner, though on August 14, 2012 Chicago’s mayor, Rahm Emanuel, announced his opposition.
How would it work?Continue Reading Will Local Government Use Eminent Domain to Condemn Underwater Mortgages or Homes in Florida?