Eminent Domain and Fair Market Value in a Depressed Real Estate Market (2014)

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A-1 APPENDIX A SURVEY QUESTIONS NCHRP 20-6, STUDY TOPIC 19-01 EMINENT DOMAIN AND FAIR MARKET VALUE IN A DEPRESSED REAL ESTATE MARKET Agency Name: ________________________________________________________________________ Name of Employee: ________________________________________________________________________ Job Title: ________________________________________________________________________ Contact telephone/cell phone number: ___________________/ _____________________ Email address: _________________________________ How many years have you been with the agency? _____ NOTE: The following questions relate primarily to the nationwide financial and real estate crisis, hereinafter referred to as the “financial crisis” or the “real estate crisis,” that began approximately in 2006 or 2007 when property values began a significant decline. The decline in real estate values resulted in some property owners having “under-water” mortgages, i.e., mortgages with a balance that exceeded the value of the underlying property. Please attach additional pages as needed to respond to the survey questions. QUESTIONS 1. During the real estate crisis in any cases involving your agency or another agency on your behalf and the taking of real property for a transportation project have any property owners argued that the valuation of the property should take into consideration the effect of depressed property values because of the financial or real estate crisis? YES __ NO __ If your answer is “No,” please indicate and return the survey according to the instructions on page 5. If your answer is “Yes,” please respond to the following additional questions. 2. If your answer to question 1 is “Yes,” are there judicial, administrative, or other decisions (e.g., by the attorney general) that either accepted or rejected in whole or in part a landowner’s contention that the real estate crisis and depressed property values should be considered in determining just compensation? YES __ NO __ If your answer is “Yes,” please provide citations or, if unpublished, a copy of the decision(s) or opinion(s). __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 3. Has your state or your agency developed or revised any eminent domain policies regarding the valuation of property because of the effect of depressed property values? YES __ NO __

A-2 If your answer is “Yes,” please provide a copy of any policies with your response. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 4. During the real estate crisis have the courts in your jurisdiction developed valuation rules that take into consideration in some way the effect of the real estate crisis and depressed property values on the value of property taken by eminent domain? YES __ NO __ If your answer is “Yes,” please explain what exceptions have been created and/or applied. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 5. During the real estate crisis has the ability to value real property in your jurisdiction been affected by government intervention (e.g., efforts to reduce foreclosures) or by sell-offs of residential or business property by institutional investors, banks, or speculators? YES __ NO __ If your answer is “Yes,” please explain. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 6. If your answer to question 5 is “Yes,” have property owners in your jurisdiction also argued that such sales are not comparable sales because they are not sales conducted voluntarily or at arm’s length? YES __ NO __ If your answer is “Yes,” please explain. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 7. During the real estate crisis and in response to depressed property values, as an alternative to the comparable sales approach, have property owners or the courts resorted more frequently in your agency’s experience to either of the following: (a) the replacement cost method of valuation? YES __ NO __ (b) the income approach? YES __ NO __ If your answer is “Yes” to question 7 (a) and/or (b), please explain. If there is a memorandum or other document that is relevant to your answer, please provide, if possible, a copy. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 8. In your agency’s experience, during the real estate crisis have the courts in your jurisdiction admitted evidence of the price an owner paid for property taken by or on behalf of your agency? YES __ NO __ If your answer is “Yes,” please provide details. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________

A-3 9. During the real estate crisis has your agency or the courts in your jurisdiction permitted the use of distributive justice535 principles when determining just compensation such as by allowing compensation for an owner’s subjective or sentimental loss (e.g., the taking of an owner’s home or of a family homestead of long duration)? YES __ NO __ If your answer is “Yes,” please provide details. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ 10. During the real estate crisis and because of depressed real property values in your area has your agency voluntarily paid compensation in excess of fair market value to property owners whose property was purchased or taken for a project? YES __ NO __ If your answer is “Yes,” please identify and explain the reasons for doing so and, if possible, state whether this was an agency-wide or state-wide policy. __________________________________________________________________________________________________ ____________________________________________________________________________________________________ ____________________________________ Thank you for your cooperation and for copies of any documents provided with your reply to the survey. Please scan and provide the copies by e-mail or send on a disk. ****************************************************************************** Please return your completed survey and any documents preferably via e-mail to: The Thomas Law Firm ATTN: Larry W. Thomas 1701 Pennsylvania Avenue, N.W. Suite 300 Washington, D.C. 20006 Tel. (202) 465-5050 lwthomas@cox.net 535 Distributive justice, also referred to as compensatory justice, comparative justice, or efficiency maximization, is based on principles of equity and fairness. The distributive justice approach to just compensation is founded on the belief that resources should be shared to secure the greatest overall utility to society as a whole.