The US Department of Housing and Urban Development (HUD) operates many different programs to help lower- and middle-class families find good housing. These programs range from outright ownership of housing developments to subsidizing or ensuring loans to allow people to purchase new homes. Although the agency is not opposed to the acquisition of its property by state and local governments through eminent domain, the agency is concerned when such acquisition might possibly affect its ability to accomplish its mission.
Eminent Domain and HUD-Owned Property
The most visible form of HUD intervention for most people is the property developments owned by HUD which the agency offers at reduced or no rent to families. These are often fairly large developments, and the eminent domain acquisition of these properties presents many significant challenges to the agency's mission.
First, the agency is concerned about ensuring that all of its tenants find comparable homes. For this reason, the agency will often allow state or local governments to offer HUD a swap of properties, so long as the new property meets the housing needs of its tenants. HUD will also normally provide you with moving expenses to the new location.
But HUD is also concerned about safeguarding the significant investment the government has made into a particular housing development. HUD will negotiate with state and local governments to ensure that any property swap fully compensates the agency for the full market value of the condemned development. If negotiation does not secure adequate compensation for HUD, it may ask for the Department of Justice (DOJ) to intervene on its behalf.
Eminent Domain and HUD Home Loans
Another way that HUD helps homeowners is by offering security on home loans through the Federal Housing Administration (FHA). FHA loans come with many restrictions. If you have not been in your home for very long, you may not be allowed to sell it yourself. Any eminent domain action must be negotiated through HUD.
Sometimes, the FHA may have an interest beyond just the remaining loan principle. For example, if your home was refinanced through the Hope for Homeowners (H4H) program, the FHA now owns a share in any equity and/or appreciation in your home's value. This interest starts at 100% and decreases by 10% per year until it stabilizes at 50%. This means that the government may choose to fight an eminent domain taking to protect its investment in your home, or it may not, leaving you to fight hard for less compensation.
Get More Information
Eminent domain can be a very complicated topic to understand. If you are a Florida property owner and want help understanding how (or even whether) to fight an eminent domain taking, visit the website of the < Florida Property Rights Law Firm, PA today.
About the Author:Eminent domain can be a very complicated topic to understand. If you are a Florida property owner and want help understanding how (or even whether) to fight an eminent domain taking, visit the website of the Florida Property Rights Law Firm, PA today.
