Eminent Domain Takings of Properties with HUD interest

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Eminent Domain Takings of Properties with HUD
interest

• Kathy Szybist
• Special Applications Center
• U.S. Dept. HUD

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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

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What is the Special Applications Center (SAC)?

• Based in Chicago
• Back Office operation in support of the Office
  of Public Housings field offices
• A part of the Office of Public Housing
  investments (OPHI)
• HOPE VI
• Mixed Finance
• Capital Fund
• MTW (Moving to Work)
• SAC

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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)

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HUDs Requirements for Eminent Domain Takings

• Depends on HUDs Property Interest
• HUDs Property Interest depends on
• HUD Program
• Source of Funding

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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

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Public Housing (PH)

• Funded by US Housing Act of 1937
• PHA holds property in trust for benefit of
  HUD
• Evidence of HUDs 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

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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

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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

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Factors Determining HUD Consent (PH) (cont.)

• Compensation for Severance Damages
• Appraisal
• Resident consultation
• Relocation
• Environmental
• Site Neighborhood Standards

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Obtaining HUD ConsentApplication Submission
(PH)

• If PHA agrees to terms of taking, it must request
  HUD approval
• HUDs 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

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Guidance and Forms (PH)

• Eminent Domain
• HUD PIH Notice 2009-01
• Application Form
• HUD 52860 HUD 52860 - F
• www.hud.gov/sac
• SAC Management
• Ainars.rodins_at_hud.gov [phone]
• Tamara.gray_at_hud.gov [phone]

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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

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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

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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

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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

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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)

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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)

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HUD Resources

• Public Housing Property
• Special Applications Center (SAC) of PIH
• http//www.hud.gov/sac
• HOME, CDBG, or SHP Property
• Office of Community, Planning Dev (CPD)
• http//www.hud/gov/cpd
• FHA-Insured or 202/811 Property
• Office of Multi-Family Housing (MFH)
• http//www.hud.gov/offices/hsg

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My Contact Info

• Kathy Szybist
• kathleen.szybist_at_hud.gov
• [phone]

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• Questions?