News & Issues: Policy Statements

Eminent Domain

The Eminent domain issue came to the forefront of national interest in Kelo et al v. City of New London, 125 S. Ct. 2655 (2005). The United States Supreme Court decided to uphold the use of eminent domain power by the City of New London, Connecticut, for the purpose of seizing private property for a public use. Of concern is a portion of the Supreme Court's decision that suggests economic redevelopment plans may now satisfy the "public use" requirement of the 5th Amendment of the United States Constitution, from which state and local governments derive authority to take private property in exchange for just compensation. Under Kelo, state or local governments may now be permitted to lawfully take private property and transfer it to another private owner, provided the second owner is going to upgrade or improve the property's use.

In Pennsylvania, Governor Ed Rendell recently signed legislation regarding property rights into law.

Senate Bill 881, the Property Rights Protection Act, generally prohibits the taking of property for private enterprise, while maintaining the right of a government body to use eminent domain powers for public uses such as roads. The new law also redefines the standards under which a property can be declared blighted and taken for redevelopment, while also setting a time limit on the blight declaration.

House Bill 2054, a companion bill, sets a structure for the revised eminent domain code by defining the process by which properties can be condemned, outlining the process of notification, and establishing the parameters for required compensation.

In a deal that allowed the bills to be unanimously approved, legislators reached compromises that provide several exceptions. Under these exceptions, municipalities, including Philadelphia, Pittsburgh, Chester and Norristown, can still condemn properties in areas that have already been designated as blighted. The exemption expires in 2012.

Suburban REALTORS Alliance Position

We believe that a government's use of the eminent domain power should be extremely limited. In addition, the Alliance will continue to closely monitor any situation where eminent domain is utilized. The Alliance strives to protect individual property rights.