House votes in favor of Eminent Domain

By a 376-38 vote on November 3, 2005, the House passed the Private Property Rights Protection Act of 2005 (H.R. 4128). The bill would punish any local government that uses its eminent domain powers to transfer privately-owned real estate to developers and investors solely to generate tax revenues or increase local employment.

The punishment: Withholding of all federal development and infrastructure-related funds to the offending local government for two full years. That means all funding for transportation, infrastructure, housing and commerce-related activities — millions of dollars in budgetary support for many municipalities.

The legislation, which is now on a fast track for Senate action, is Congress's response to the Supreme Court's decision June 23 in "Kelo v. City of New London." In that case, the court upheld New London, Conn.'s seizure of 15 houses near its waterfront for transfer to private redevelopers.

The Fifth Amendment prohibits eminent domain seizures of private property "for public use" without "just compensation." For decades "public use" was construed by courts quite literally to mean direct public ownership and use of the facilities built on seized property — hospitals, roadways, convention centers, schools and parks. But in recent years the Supreme Court has broadened the idea of "public use" to include projects that contribute to the "public benefit," even if they are privately owned.