“Property rights” often are portrayed as belonging only to the rich and powerful and protecting only the politically connected. But as we recently were reminded, this is a very inaccurate picture because property rights — as the “guardian of every other right” — form the foundation on which all other rights rest, and are “civil rights” that benefit everyone.
If we needed any more reminding, the U.S. Department of Justice recently filed a complaint in the Northern District of Ilinois against the City of Joliet under the Fair Housing Act after the City condemned an apartment complex in which 96% of the residents are African-American. The City claims it needed to take the property for “redevelopment” to alleviate blight. According to the DOJ’s press release:
The complaint, filed today in the U.S. District Court for the Northern District of Illinois, alleges that the city of Joliet violated the Fair Housing Act when it took actions to condemn the Evergreen Terrace apartment complex, which provides 356 units of affordable housing in Joliet. Due to the lack of affordable housing in and around Joliet, and because the city has failed to produce a meaningful plan to counteract the effect of eliminating 356 units of affordable housing, many of the residents would be left with nowhere in the city to live if the condemnation action is successful.
The complaint alleges that the city declared the complex blighted (relying in part on code violations) and instituted the eminent domain action on the heels of HUD’s approval of refinancing sought by the property owners that would have preserved the affordable housing. The complaint specifically alleges:
Nevertheless, the City continues to try to condemn Evergreen Terrace while neglecting to propose any realistic plan to provide sufficient adequate and affordable housing to those who would be displaced from Evergreen Terrace and knowing that there will be few, if any, opportunities for displaced families to remain in or near Joliet.
Complaint at 12, ¶ 45. The city filed the condemnation action in state court, but b]ecause the action affects property on which the United States may have an interest,” the case was removed to federal court. The DOJ will seek to consolidate the eminent domain action with the Fair Housing Act lawsuit. Here’s the DOJ’s ultimate rationale for filing the suit:
The City’s actions described herein were taken because of the race or color and of the current and prospective tenants of Evergreen Terrace. The purpose and effect of the City’s actions and proposed actions are to limit or reduce the number of Black or African-American residents residing within the City of Joliet.
Complaint at 14, ¶ 54. This sure seems to harken back to what Gideon Kanner calls the “bad old days” when “urban renewal” was often a code word for “Negro removal,” and the racial element apparently got the feds interested enough to prosecute a civil lawsuit. But it bears noting that in the absence of that element and the accompanying cause of action under federal statutes, the city’s use of eminent domain likely would not result in a ripple of judicial interest, especially in federal court.
Complaint, United States v City of Joliet (filed Aug 4 2011)