Committee approves bill narrowing use of eminent domain for redevelopment

At a meeting of the State and Local Government Committee, members voted to advance House Bill 444 to the Finance, Ways and Means Committee after discussion about property-rights protections and procedural safeguards.

The bill, presented by Chairman Halsey, would change statutory language from “blighted areas” to “blighted property,” preventing housing authorities or community development agencies from seizing nonblighted neighboring properties as part of a redevelopment taking. "This bill fixes that and it changes the verbiage from blighted areas to blighted property," Chairman Halsey said, adding that the bill preserves authority to use eminent domain for a specific piece of property that is truly blighted.

Supporters said the change narrows the scope of takings while keeping other redevelopment tools intact. The sponsor noted the bill still allows negotiated purchases, paying above market value, and contracts with third parties. Representative Butler, who described personal experience with a prior eminent-domain exercise, commended the bill as protecting property owners.

Several members pressed for stronger procedural protections. Representative Powell asked how the process would protect owners who are temporarily absent or otherwise delayed in curing code violations; Powell said she feared aggressive enforcement could lead to unfair takings. Halsey responded that the bill requires two notices and allows property owners to petition a court for due-process review, but acknowledged “reasonable time” is not defined in the bill.

The committee voted 19–2 to move the bill to Finance, Ways and Means.

The bill will next be considered by the Finance, Ways and Means Committee, where members may propose additional language clarifying cure periods and notice requirements.