1 Eminent Domain Takings of Properties with HUD interest Kathy Szybist Special Applications Center U.S. Dept. HUD

2 HUD & DOT Partnership HUD & DOT: Announce Interagency Partnership Task Force to Promote Sustainable Communities (3/19/09) Goal of Partnership: Coordinate efforts, investments, and strategies to assist families in gaining better access to affordable housing, more transportation options, and lower transportation costs

3 What is the Special Applications Center (SAC)? Based in Chicago “Back Office” operation in support of the Office of Public Housing’s field offices A part of the Office of Public Housing investments (OPHI) HOPE VI Mixed Finance Capital Fund MTW (Moving to Work) SAC

4 What Does SAC Do? Eminent Domain (Public Housing) Section 18 (Demolition/Disposition) De Minimis Demolition (5 units or 5%) Conversion Required Voluntary Homeownership Section 32 Section 5(h)

5 HUD’s Requirements for Eminent Domain Takings Depends on HUD’s Property Interest HUD’s Property Interest depends on HUD Program Source of Funding

6 HUD Property Interests (may trigger HUD role in e.d. taking) Public Housing: YES HOME-Funds: NO But possible grant repayment CDBG-Funds: NO FHA-Insured Single Family: NO FHA-Insured Multi-Family: Depends No: if No Use Agreement Yes: if Use Agreement HUD 202 & 811 Housing: YES Supportive-Housing Program (SHP): Yes

7 Public Housing (PH) Funded by US Housing Act of 1937 PHA holds property “in trust” for “benefit of HUD” Evidence of HUD’s property interest DOT: recorded against property DOT includes use restriction (low-income housing) (ACC) Supremacy Clause PHA may not agree to voluntary taking w/o HUD Consent NO condemnation lawsuit w/o joining HUD as party

8 Public Housing (cont.) If a government or quasi-government entity takes PH property, HUD expects all residential dwelling units to be replaced, one-for-one PHA must be made “whole” for property value and units

9 Factors Determining HUD Consent (PH) Agreement between the taking body and the PHA PHA Board support Authority of the taking body Compensation for dwelling buildings Other Laws Compensation for vacant land & non- dwelling buildings

10 Factors Determining HUD Consent (PH) (cont.) Compensation for Severance Damages Appraisal Resident consultation Relocation Environmental Site & Neighborhood Standards

11 Obtaining HUD Consent: Application Submission (PH) If PHA agrees to terms of taking, it must request HUD approval HUD’s Special Applications Center (SAC): authority to approve takings Application must be made by PHA through the Public and Indian Housing Information Center (PIC), Inventory Removals Module

12 Guidance and Forms (PH) Eminent Domain HUD PIH Notice Application Form: HUD & HUD F SAC Management: (312) (312)

13 HOME-Funded Property Authorized by Title II-Cranston-Gonzalez National Affordable Housing Act Grant Funds to States/localities Often used in partnership with nonprofits to fund construction, acquisition, and rehab of afford housing

14 HOME-Funded Property (Cont) HUD: No direct property interest Owner negotiates eminent domain taking Units: long-term affordable use restrictions If Units not used as required, MUST REPAY HUD Owner & State/locality would want as much $ as possible to repay HUD or replace units Relocation/URA Implications

15 CDBG-Funded Property Authorized by Title 1 of Housing and Community Development Act of 1974 Grant Funds to States/localities Funds may be used broadly for community & economic development activities HUD: No direct property interest Owner negotiates eminent domain taking Relocation/URA Implications

16 FHA-Insured Property (single and multi-family) HUD: No direct property interest (generally) Owner negotiates eminent domain taking UNLESS Use restrictions (HUD-imposed, often statutory) Use Agreement: recorded against property HUD: property interest Owner/taking body should contact HUD (MFH) prior to agreeing to terms of taking

17 Section 202 & 811 Housing Section 202 (Housing for low-income Elderly) Section 811 (Housing for low-income Disabled) Authorized by National Affordable Housing Act of 1990 Capital Advance /Grant funds to nonprofits Use restrictions (housing for elderly/disabled) Use Agreements: recorded against property HUD: property interest Owner/taking body should contact HUD (MFH)

18 Supportive Housing Program (SHP) Authorized by McKinney-Vento Homeless Assistance Act of 1987 Assists homeless persons Grant funds to governments & nonprofits Use Restrictions possible (e.g. acquisition) Use Agreements: recorded against property HUD: property interest Owner/taking body should contact HUD (CPD)

19 HUD Resources Public Housing Property Special Applications Center (SAC) of PIH HOME, CDBG, or SHP Property Office of Community, Planning & Dev (CPD) FHA-Insured or 202/811 Property Office of Multi-Family Housing (MFH)

20 My Contact Info Kathy Szybist (312)

Questions? 21