No need for eminent domain

The Constitution protects owners'property. If the government takes a person's property the Constitution states it must be for certain reasons. And if the property is taken for those certain reasons the Constitution states that person must be compensated. Of course those whom property is being taken may not believe they one can be fairly compensated for property that is called a home.

But, the government sees it as just a house and wants to purchase the property at the lowest cost. The City knew the owners of the Wizard would be looking to relocate their team to a bustling city. So the city decided to build this city, with promises of free money. Money from the taxpayers.

The City knew when it failed to fully disclose to residents in the area that the stadium would come to their neighborhood. The City knew when it gave the residents low ball offers for their homes.


Because of this conflict between the government and private property owners, government legislators have devised ways to circumvent the constitutional protection to harm innocence private property owners. Legislators have made it so much easier for private property to be taken without calling for eminent domain through constructive condemnation.

Constructive condemnation discouraging development in targeted areas which in turn depresses the value of the other properties in that area. The areas becomes blighted from abandonment and from the restrictive development. However some property owners remain in these neighborhoods but to oust these property owners, some states have devised others way to claim the property.

In July 2003, Indiana provided government with House Bill 1378, for taking property. The twist to this new land grab, it is not government that is taking the private property. It is the citizens claiming land in the blighted areas.

The new law encourages certain community organizations to take over deteriorating properties in their own neighborhoods.

IC 36-7-9-2
Sec. 2. As used in this chapter:
"Community organization" means a citizen's group, neighborhood association, neighborhood development corporation, or similar organization that:
(1) has specific geographic boundaries defined in its bylaws or articles of incorporation and contains at least forty (40) households within those boundaries;
(2) is a nonprofit corporation that is representative of at least twenty-five (25) households or twenty percent (20%) of the households in the community, whichever is less;
(3) is operated primarily for the promotion of social welfare and general neighborhood improvement and enhancement;
(4) has been incorporated for at least two (2) years; and
(5) is exempt from taxation under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code.

The concept is urban homesteading allowing a group rather than a single individual to take abandoned property and make the property usable. The nonprofit establishes a receivership of the property.

IC 32-30-5-7 Receiver's powers
Sec. 7. The receiver may, under control of the court or the judge:
(1) bring and defend actions;
(2) take and keep possession of the property;
(3) receive rents;
(4) collect debts; and
(5) sell property;
in the receiver's own name, and generally do other acts respecting the property as the court or judge may authorize.

The nonprofit goal is to repair unsafe buildings in their neighborhoods. that is in violation of the city's neighborhood code.

Sec. 20. (a) A court acting under section 17 of this chapter may appoint a receiver for the unsafe premises, subject to the following conditions:
(1) The purpose of the receivership must be to take possession of the unsafe premises for a period sufficient to accomplish and pay for repairs and improvements.
(2) The receiver may be a nonprofit corporation the primary purpose of which is the improvement of housing conditions in the county where the unsafe premises are located, or may be any other capable person residing in the county.
(3) Notwithstanding any prior assignments of the rents and other income of the unsafe premises, the receiver must collect and use that income to repair or remove the defects as required by the order, and may, upon approval by the court, make repairs and improvements in addition to those specified in the order or required by applicable statutes, ordinances, codes, or regulations.
(4) The receiver may make any contracts and do all things necessary to accomplish the repair and improvement of the unsafe premises.
(5) A receiver that expends money, performs labor, or furnishes materials or machinery, including the leasing of equipment or tools, for the repair of an unsafe premises may have a lien that is equal to the total expended.

The nonprofit incentive for expending money in such building are to save the building prevent further abandonment of the neighborhood, prevention of demolition of historical building and a profit if the building is sold later after repairs.

A receiver appointed to sell an unsafe premises may sell the property:
(A) to the highest bidder at auction under the same notice and sale provisions applicable to a foreclosure sale of mechanic's liens or mortgages; or
(B) for fair market value if all persons having a substantial property interest in the unsafe premises agree to the amount and procedure.
The transferee in either a public or private sale must first demonstrate the necessary ability and experience to rehabilitate the premises within a reasonable time to the satisfaction of the receiver.

after investing in these property can petition the court for sale of property. The nonprofit is given a year to bring the property into compliance with the city's code. (

d) The title to real property may be conveyed to a community organization purchasing the property as a determinable fee, with the language of the granting clause in the deed of conveyance to include the language: "The property is conveyed on the conditions that the purchaser:
(1) will list the property for sale within twelve (12) months of taking possession;
(2) will bring the residence up to minimum code standards in twelve (12) months;
(3) will carry adequate fire and liability insurance on the dwelling at all times; and
(4) will comply with any additional terms, conditions, and requirements as the agency requires before __________ (date of the deed) under IC 36-7-17.".

After that year, the nonprofit can sell the property and recoup their cost of renovation from bring the property into compliance.


The deal protects government from charges of eminent domain and prevent property from further deterioration. Individuals and their families can get into this deal as long as they remain in the property for three years.

IC 36-7-17-5
(a) A person or community organization may apply for the program by completing a bid application.
(b) The following An applicant is applicants are qualified and shall be approved to receive real property offered under this chapter: if he:
(1) A person who:
(A) is at least eighteen (18) years of age;
(2) (B) possesses the financial resources to support a loan, the necessary skills to rehabilitate the property, or a combination of both; and
(3) (C) has, including immediate family, not previously participated in the program.
(2) A community organization as described in IC 36-7-9-2.
(c) Approved applicants are entitled to receive a list of all properties
owned by the unit that are available under this chapter.
(d) Approved applicants may apply for each dwelling in which they are interested. A drawing shall be held to determine those persons applicants receiving the dwellings. Persons applying under this chapter shall receive priority over community organizations if both indicate an interest in the same dwelling. Each approved applicant person and his or her immediate family may receive only one (1) dwelling in the drawing. Each approved community organization may receive as many dwellings as the agency considers proper.

IC 36-7-17-6
The conveyance of a dwelling to an applicant under this chapter shall be made in return for a fee of one dollar ($1) or more and the execution by the applicant of an agreement with the following minimum conditions:
(1) The applicant must:
(A) if a person, reside in the dwelling as his the person's principal place of residence for a period of not less than three (3) years; or
(B) if a community organization, agree to list the dwelling for sale within twelve (12) months after possession.

For example, in Fort Wayne, Indiana a theatre called Rialto has long stood abandoned. This property was not given to a nonprofit with members from the neighborhood. The Rialto was given to a newly formed group a month after the law was passed. This group called itself the Reclamation Project. Don't be scaareed, coming soon to a neighborhood near you.