What's happening
The Eminent Domain Reform Act requires local government approval for eminent domain use, increases homeowner protections, public input, and compensation in economic development cases.
Why it matters
Requires meaningful local government approval. before eminent domain can be used, shifting power from state or quasi-governmental agencies to local elected bodies. This could make it harder for outside entities to seize property without strong local support.
Establishes new transparency and public input requirements. for economic development projects involving eminent domain, mandating a comprehensive plan, public hearings, and homeowner impact assessments. This ensures that proposed takings are subject to scrutiny and affected residents' voices are heard.
Significantly increases compensation. for homeowners and renters displaced by economic development projects, mandating at least 150% of fair market value for owners and 150% of annual rent for tenants. This raises the financial bar for taking private homes and provides greater financial security for those forced to move.
Expands the window for legal challenges. to eminent domain actions from 30 to 90 days, and grants an additional 90 days if the project scope changes. This gives property owners more time to organize and contest takings in court, strengthening their procedural rights.
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Who cares
Headline styles
Require Economic Plan for Eminent Domain
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Plan for Eminent Domain
In Assembly Committee · Judiciary · Sponsor J. Gary Pretlow
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3271
2017-2018 Regular Sessions
IN SENATE
January 20, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the public authorities law, the not-for-profit corporation law, the general municipal law and the eminent domain procedure law, in relation to eminent domain reform
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "eminent domain reform act".
§ 2. The public authorities law is amended by adding a new section 1831-b to read as follows:
§ 1831-b. Exercise of power of eminent domain; limitations. The local legislative body of each city, town, or village in which the authority seeks to exercise the power of eminent domain shall have the authority to approve or disapprove any exercise of such power by the authority. Every such local legislative body shall approve or disapprove any exercise of such power by majority vote. Where applicable in the enactment of local laws, the chief executive officer of such locality if the office of such chief executive officer is elective shall approve or disapprove such local legislative body's decision, subject to any applicable right to override.
§ 3. Paragraph (i) of section 1411 of the not-for-profit corporation law is relettered paragraph (j) and a new paragraph (i) is added to read as follows:
(i) Municipal input. The local legislative body of each city, town, or village in which any part of the real property to be acquired is located shall have the authority to approve or disapprove any corporation's use of eminent domain. Each such local legislative body shall approve or disapprove any proposed corporate use of the power of eminent domain by majority vote. Where applicable in the enactment of local
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07511-01-7
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laws, the chief executive officer of such locality if the office of such chief executive officer is elective shall approve or disapprove such governing body's decision, subject to any applicable right to override.
§ 4. The general municipal law is amended by adding a new section 858-c to read as follows:
§ 858-c. Municipal input. The governing body of each city, town, or village for whose benefit, in whole or in part, an agency is established shall have the authority to approve or disapprove any agency use of eminent domain. Each such governing body shall approve or disapprove the use of eminent domain by majority vote. Where applicable in the enactment of local laws, the chief executive officer of such locality if the office of such chief executive officer is elective shall approve or disapprove such governing body's decision, subject to any applicable right to override.
§ 5. Section 103 of the eminent domain procedure law is amended by adding two new subdivisions (H) and (I) to read as follows:
(H) "Economic development project" means any project for which acquisition of real property may be required for a public use, benefit, or purpose where such public use, benefit, or purpose is primarily for economic development and where the condemnee's real property is a home or dwelling.
(I) For the purposes of article two of this chapter:
(1) "Home" means owner-occupied residential premises consisting of not more than six dwelling units.
(2) "Dwelling" means residential premises consisting of not more than thirty dwelling units, none of which is occupied by an owner of such premises.
(3) In the case of cooperative apartment corporations, title to that portion of real property owned by a cooperative apartment corporation in which a tenant-stockholder of such corporation resides, and which is represented by his or her share or shares of stock in such corporation as determined by its or their proportional relationship to the total outstanding stock of the corporation, including that owned by the corporation, shall be deemed to be vested in such tenant-stockholder notwithstanding the number of dwelling units in such residential premises, thus qualifying a cooperative apartment as a home.
§ 6. Subdivision (B) of section 204 of the eminent domain procedure law is amended to read as follows:
(B) The condemnor, in its determination and findings, shall specify, but shall not be limited to the following:
(1) the public use, benefit or purpose to be served by the proposed public project;
(2) the approximate location for the proposed public project and the reasons for the selection of that location;
(3) the general effect of the proposed project on the environment and residents of the locality;
(4) a declaration to such effect if the primary public purpose is determined to be for economic development where one or more condemnees' homes or dwellings are to be affected; and
(5) such other factors as it considers relevant.
§ 7. The eminent domain procedure law is amended by adding a new section 204-a to read as follows:
§ 204-a. Economic development condemnation findings and homeowner protection. (A) If the condemnor determines pursuant to paragraph four of subdivision (B) of section two hundred four of this article that the primary public purpose or benefit is for economic development, the
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condemnor, in cooperation with the government of the locality in which the real property to be acquired is located shall prepare a comprehensive economic development plan for the affected area. The comprehensive economic development plan shall include, but not be limited to, the actual or expected benefits of the project, including the expected increased tax revenue or expected creation of jobs, the types of businesses or industry that will use the condemned property, and alternatives to the plan. When a draft comprehensive economic development plan is created, the condemnor, in cooperation with the government of the locality in which the real property to be acquired is located shall hold at least one public hearing to compile and analyze public input. The public hearing shall be held in accordance with the provisions of this article at a location reasonably proximate to the real property which may be acquired for such project. Thereafter, the condemnor shall complete a final comprehensive economic development plan to be submitted to the local legislative body, subject to any applicable right to override for its approval. To move forward with the project, the local legislative body must approve the plan by a majority vote, and it must also be approved by the chief executive officer of such locality if the office of such chief executive officer is elective.
(B) The condemnor shall also create a homeowner impact assessment statement. The condemnor, in the homeowner impact assessment statement, shall assess the actual harm to affected condemnees' that would lose their homes or dwellings and compare such harm with the reasonably expected community benefits, including but not limited to how the condemnor justifies the taking of the condemnees' homes or dwellings. The homeowner impact assessment statement shall be completed simultaneously with the comprehensive economic development plan under subdivision (A) of this section. The homeowner impact assessment statement shall be made widely available.
(C) In cases where a condemnee's home or dwelling is acquired for an economic development project, the condemnor shall, in addition to any other compensation requirements under this article, compensate the condemnee a minimum of one hundred fifty percent of the fair market value of the real property. Residents who are displaced by the economic development project shall also be compensated at least one hundred fifty percent of the annual rent of such dwelling.
§ 8. Subdivision (A) of section 207 of the eminent domain procedure law, as amended by chapter 356 of the laws of 1982, is amended to read as follows:
(A) Any person or persons jointly or severally, aggrieved by the condemnor's determination and findings made pursuant to section two hundred four of this article, may seek judicial review thereof by the appellate division of the supreme court, in the judicial department embracing the county wherein the proposed facility is located by the filing of a petition in such court within [thirty] ninety days after the condemnor's completion of its publication of its determination and findings pursuant to section two hundred four [herein] of this article. Such petition shall be accompanied by proof of service of a demand on the condemnor to file with said court a copy of a written transcript of the record of the proceeding before it, and a copy of its determination and findings. Upon receipt of such petition and demand, the condemnor shall forthwith deliver to the court a copy of the record and a copy of its determination and findings. The proceeding shall be heard on the record without requirement of reproduction. If such proposed public improvement is located in more than one judicial department, such proceeding may be
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brought in any one, but only one, of such departments, and all such proceedings with relation to any single public project shall be consolidated with that first filed. If the condemnor substantially alters the scope of the project or the determination and findings, then the condemnee shall have an additional ninety days from the condemnor's publication of such alteration, which publication is hereby required, to seek judicial review under this section.
§ 9. This act shall take effect on the one hundred twentieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, the not-for-profit corporation law, the general municipal law and the eminent domain procedure law, in relation to eminent domain reform
Purpose
This bill would prohibit public authorities or public benefit corporations from depositing their moneys in a banking institution with a federal or state Community Reinvestment Act rating of less than satisfactory.
Summary of provisions
Section 1 of the bill amends the public authorities law by adding a new section 2891 which specifies that, notwithstanding any other provision of this chapter, no public authority or public benefit corporation chartered by the State of New York shall deposit its moneys in a banking institution to which the Community Reinvestment Act of 1977, United States P.L. 95-128, applies unless such institution has received a record of performance no lower than satisfactory.
Section 2 of the bill sets forth the effective date.
Justification
In 1977, Congress passed the Community Reinvestment Act (CRA), a law that sought to eliminate discriminatory behavior by banks. The CRA requires banks to meet the financial needs of their communities by investing in low- to moderate-income neighborhoods. One of the CRA's most powerful tools to spur banks to return capital to the neighborhoods from which they extracted it is the CRA's focus upon neighborhood lending target compliance, as well as enforcement against banks that fail to meet federal lending guidelines. The overall goal is to encourage banks to lend in distressed communities, thereby promoting local economic development, small business and consumer lending, and homeownership.
A report by the Association for Neighborhood and Housing Development (ANHD) concerning New York City's 17 largest banks reveals that while deposits grew by more than $452 billion in 2007 and 2008, these institutions reduced community lending 20.2 percent or $560 million dollars. Furthermore, the report concludes that these banks also reduced their multi-family loans in low-income areas by nearly 25 percent, or $1.3 billion dollars. While this report may be no more than a window into a problem whose parameters are different outside of New York City, the dramatic declines in lending portrayed during a period of consumer credit crisis are distressing and endanger the prosperity and recover of New York's communities.
In New York, billions of dollars are held on deposit by public authorities and public benefit corporations, and the deposit or withholding of such funds can act as a powerful incentive for CRA compliance. This bill would further enhance CRA compliance by directing the public authorities continued or created in New York not to deposit funds in those banks that have not received a CRA rating of satisfactory or better.
Legislative history
2015-16: S.5910/A.2453 Referred to Commerce, Economic Development and Small Business 2014: A02058 (Kavanagh) - Corporations, Authorities and Commissions 2013: A02058 (Kavanagh) - Ways and Means 2012: A05947 (Kavanagh) - Ways and Means 2011: A05947 (Kavanagh) - Corporations, Authorities and Commissions 2010: A11713 (Kavanagh) - Corporations, Authorities and Commissions
Fiscal impact on the state
None.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.