Eminent Domain Takings of Properties with HUD interest

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

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

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

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)

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

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

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

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

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

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

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

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@hud.gov (312) 913-8706 • Tamara.gray@hud.gov (312) 913-8306

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

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

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

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

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)

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)

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

My Contact Info Kathy Szybist kathleen.szybist@hud.gov (312) 913-8097 20

Questions?

Eminent Domain Takings of Properties with HUD interest