The purpose of this post is to address the process where a governmental entity makes an offer to purchase property in contemplation of the later use of the eminent domain.
This post will address the rule that applies for offers prior to eminent domain, known as “pre-condemnation offers,” address specifics applicable to business, and then contemplate some difficult questions.
The purpose of this post is to discuss how a partial taking of your property may affect your property taxes.
Often, in an eminent domain action, there are at least two types of damages or payment required. First, the government should pay the property owner for the property actually taken.
Second, when the government takes anything less than the entire parcel, the government should also pay the property owner for any damages caused to the property left-over.
For many of us, real estate is our most valuable asset and the thing that we rely on to provide security for retirement. It is also our passion where we can use our creativity to make our mark on the world. When we receive notice that it may be the subject of an eminent domain action, however, the unknown elements of the process can be a source of great anxiety.
This article provides insight into how the eminent domain process works so that you can know what to expect and hopefully navigate the process more smoothly. The typical steps for the eminent domain process are laid out below.
The eminent domain process begins with an environmental review, negotiations with property owners, a hearing before a public entity, and then eventually, an eminent domain lawsuit. After some preliminary negotiations, a public entity will generally hold a hearing on something called a “Resolution of Necessity.” This is a formal determination by a governmental entity that a piece of private property is required for the construction of public work. Following the hearing on a resolution of necessity, the governmental entity will file a lawsuit in eminent domain.
Government Code section 54230.5 contains the “penalty” or “enforcement” provisions in the updated Surplus Land Act enacted under Assembly Bills 1255 and 1486 in 2019. Specifically, Section 54230.5 (a)(1) creates a penalty of “30 percent of the final sale price of the land sold in violation of this article for a first violation and 50 percent of any subsequent violation.” This is a serious hammer for noncompliance. A public entity may rightly be concerned, however, with ambiguities or gaps in a newly-enacted law.
Recently, in April 2021, the California Department of Housing and Community Development (HCD) released “guidelines” to provide clarity on the law to avoid the perils of non-compliance. Broadly, the Guidelines include further refinement of “definitions,” information on the “surplus land determination process,” requirements to be placed on surplus land for affordable housing, reporting requirements, and performance monitoring and penalties. These Guidelines are made available here and through HCD’s website. Since the Guidelines are too extensive to be digested in a single blog post, later posts here will digest each of the pieces and–the remaining gaps–over time. Until then, they are worth reviewing in full.
In 2019, California passed a revision to the Surplus Land Act to make more public land available for private development in order to address the State’s ongoing housing crisis.
Currently, as a result of the Legislature’s revision in 2019, the Surplus Land Act extends to any public entity within the State of California. Previously, the definition was limited to specified entities.
California Partition Law Blog