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 1

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

What is the Special Applications Center (SAC)? n n n 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) n n n HOPE VI Mixed Finance Capital Fund MTW (Moving to Work) SAC 3

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

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

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

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

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 n PHA must be made “whole” for property value and units n 8

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

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

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

Guidance and Forms (PH) n Eminent Domain n HUD PIH Notice 2009 -01 n Application Form: n HUD 52860 & HUD 52860 - F n www. hud. gov/sac n SAC Management: n n n Ainars. rodins@hud. gov (312) 913 -8706 Tamara. gray@hud. gov (312) 913 -8306 12

HOME-Funded Property n n n 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 13

HOME-Funded Property (Cont) n n n 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 14

CDBG-Funded Property n n n 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 15

FHA-Insured Property (single and multi-family) n n HUD: No direct property interest (generally) Owner negotiates eminent domain taking UNLESS n n 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 16

Section 202 & 811 Housing n n n n 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) 17

Supportive Housing Program (SHP) n n n n Authorized by Mc. Kinney-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) 18

HUD Resources n n n Public Housing Property n Special Applications Center (SAC) of PIH n http: //www. hud. gov/sac HOME, CDBG, or SHP Property n Office of Community, Planning & Dev (CPD) n http: //www. hud/gov/cpd FHA-Insured or 202/811 Property n Office of Multi-Family Housing (MFH) n http: //www. hud. gov/offices/hsg 19

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

Questions? 21