Reiss on History of Eminent Domain

The Orlando Sentinel quoted me in History also Parts City, Church in Stadium Dispute  (sign in required). It reads in part,

It’s been said that you can’t fight City Hall. Still, tiny Faith Deliverance Temple is gonna try. The city of Orlando covets its property — now the final piece of the two square blocks upon which will bloom a $110 million soccer savanna for the Orlando City Lions to roam. Church officials balked. So city officials filed suit to seize the land. Goliath shoved. Now, David’s grabbed a sling.

The church has enlisted a Jacksonville property rights law firm to fight for its right to stay put. Any way you slice it, the church’s hopes rest with a judge who, in two previous eminent domain cases involving the soccer stadium, deemed that it fits the definition of a public use.

City Hall considers the stadium manna from Major League Soccer: It’ll nourish the greater community with economic development, jobs and tourism. Pastor Kinsey Shack, meanwhile, simply says her largely black flock “does not want and has not wanted to sell its property.”

It would be easy to reduce the dispute to simplistic terms: Seeing the writing on the wall, the church has fallen prey to the sin of avarice. Orlando offered $1.5 million for property worth less than half that, and most recently upped the ante to $4 million. Church leaders countered with $35 million (but later lowered it to $15 million).

To church officials, it’s simply a matter of fairness. In 2007, Orlando plunked $35 million in cash and other sweeteners into First United Methodist Church’s collection plate. It needed the land for the Dr. Phillips Center for the Performing Arts, and paid a small fortune to the largely white downtown church. In any case, church officials aren’t sweating the optics. Maybe that’s because money isn’t necessarily the root of its revolt.

An alternative motive seems rooted in history, personal and collective. In the late ’70s, Robert Lee Williams moved his wife Catherine, their four kids, and the church he’d incorporated in 1969 to West Church Street in Orlando’s mostly black Parramore neighborhood.

The teeny flock grew as he saved and collected souls through revivals. In the early ’80s, they moved to a West Church Street warehouse. With member donations, Williams bought the property, and largely through the sweat of local day laborers, they moved into a new church home in 1996. Williams died in 1997, but his wife carried on, before passing the mantle to Shack six years ago. For the Williams family, divesting the property divorces them from their community, their history.

Yet, through government strong-arming that very thing is — for blacks in particular — a sordid history as old as America. That’s according to Mindy Fullilove, a Columbia University clinical psychiatry professor in a recent report on the devastation eminent domain wreaks on black communities. “Eminent domain has become what the founding fathers sought to prevent: a tool that takes from the poor and the politically weak to give to the rich and politically powerful.”

David Reiss, a Brooklyn Law School professor, noted in an email that since early last century “local governments have a long history of using eminent domain in black communities, from so-called ‘slum clearance’ to ‘urban renewal’ to ‘blight removal.'”

Mortgage Sustainability Tool Launched

Freddie Mac has created a useful new tool, the Multi-Indicator Market Index(SM) (MiMi(SM)).The press release states that it is

a new publicly-accessible tool that monitors and measures the stability of the nation’s housing market, as well as the housing markets of all 50 states, the District of Columbia, and the top 50 metro markets.

MiMi combines proprietary Freddie Mac data with current local market data to calculate a range of equilibrium for each single-family housing market covered. Monthly, MiMi uses this data to show, at a glance, where each market stands relative to its own stable range. MiMi also indicates how each market is trending — whether it is moving closer to, or further away from, its stable range. A market can fall outside its stable range by being too weak to generate enough demand for a well-balanced housing market or by overheating to an unsustainable level of activity.

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In today’s first release of MiMi, several key findings emerged that highlight the current state of the nation’s housing market as of January 2014:

  • The national MiMi value stands at -3.08 points indicating a weak housing market overall. From December to January the national MiMi improved by 0.03 points and by 0.81 points from one year ago. The nation’s housing market is improving based on its 3-month trend of +0.17 points and moving closer to its stable and in range status. The nation’s all-time MiMi low of -4.49 was in November 2010 when the housing market was at its weakest.
  • Eleven of the 50 states plus the District of Columbia are stable and in range with North Dakota, the District of Columbia, Wyoming, Alaska, and Louisiana ranking in the top five.
  • Four of the 50 metros are stable and in range, San Antonio, Houston, Austin and New Orleans.
  • The five most improving states from December to January were Florida (+0.11), Tennessee (+0.11), Michigan (+0.09), Louisiana (+0.07), Nevada (+0.07), and Texas (+0.07). From one year ago the most improving states were Florida (+2.12), Nevada (+1.84), California (+1.26), Texas (+1.06) and D.C. (+1.05).
  • The five most improving metros were Miami (+0.11), Detroit (+0.10), Orlando (+0.09), San Antonio (+0.09), and Chicago (+0.08). From one year ago the most improving metros were Miami (+2.54), Orlando (+2.08), Riverside (+1.87), Las Vegas (+1.81), and Tampa (+1.77).
  • Overall, in January of 2014, 25 of the 50 states plus the District of Columbia are improving based on their 3-month trend and 35 of the 50 metros are improving.