I 

109TH CONGRESS 

1ST SESSION H. R. 3315

To amend title I of the Housing and Community Development Act of 1974 

to withhold community development block grant funds from States and 

communities that do not prohibit the use of the power of eminent 

domain that involves the taking of the property from private persons 

for commercial or economic development purposes and transfer of the 

property to other private persons. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2005

Ms. WATERS (for herself, Mr. NEY, and Mr. BACHUS) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL

To amend title I of the Housing and Community Development Act of 1974 to withhold community development 

block grant funds from States and communities that 

do not prohibit the use of the power of eminent domain 

that involves the taking of the property from private 

persons for commercial or economic development purposes and transfer of the property to other private persons.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. PROHIBITION ON USE OF EMINENT DOMAIN TO 

2 OBTAIN PROPERTY FOR COMMERCIAL DE3 VELOPMENT BY PRIVATE PERSONS. 

4 Title I of the Housing and Community Development 

5 Act of 1974 is amended—

6 (1) in section 104 (42 U.S.C. 5304)—

7 (A) in subsection (b)—

8 (i) in paragraph (5), by striking 

9 ‘‘and’’ at the end; 

10 (ii) by redesignating paragraph (6) as 

11 paragraph (7); and 

12 (iii) by inserting after paragraph (5) 

13 the following new paragraph: 

14 ‘‘(6) the grantee (or, in the case of a grantee 

15 that is a unit of general local government, the State 

16 in which such unit is located) has in effect laws, reg17 ulations, or policies referred to in paragraph (1) or 

18 (2), as appropriate, of subsection (n); and’’; and 

19 (B) by adding at the end the following new 

20 subsection: 

21 ‘‘(n) PROHIBITION ON USE OF EMINENT DOMAIN TO

22 OBTAIN PROPERTY FOR COMMERCIAL DEVELOPMENT BY

23 PRIVATE PERSONS.—

24 ‘‘(1) UNITS OF GENERAL LOCAL GOVERN25 MENT.—No funds made available for grants under 

26 section 106 for fiscal year 2006 or any fiscal year 
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1 thereafter may be obligated or expended to any unit 

2 of general local government unless such unit of gen3 eral local government (or the State in which such 

4 unit of general local government is located) has in 

5 effect and is enforcing laws, regulations, or policies 

6 that prohibit the use of the power of eminent do7 main by the unit of general local government (or in 

8 the case of laws, regulations, or policies of a State, 

9 by the State and by any political subdivision of the 

10 State), that involves the taking of the property from 

11 private persons for commercial or economic develop12 ment purposes and transfer of the property to other 

13 private persons. 

14 ‘‘(2) STATES ANDOTHER GRANTEES.—No 

15 funds made available for grants under section 106 

16 for fiscal year 2006 or any fiscal year thereafter 

17 may be obligated or expended to any State, Indian 

18 tribe, or insular area unless such State, Indian tribe, 

19 or insular area has in effect and is enforcing laws, 

20 regulations, or policies that prohibit the use of the 

21 power of eminent domain by such State and by any 

22 political subdivision of the State, such Indian tribe, 

23 or such insular area, respectively, that involves the 

24 taking of the property from private persons for com25 mercial or economic development purposes and 
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1 transfer of the property to other private persons.’’; 

2 and 

3 (2) in section 106 (42 U.S.C. 5306)—

4 (A) in the last sentence of subsection 

5 (a)(1), by striking ‘‘and (k)’’ and inserting 

6 ‘‘(k), and (n)(2)’’; 

7 (B) in subsection (c), in the first sentence 

8 of paragraph (1), by striking ‘‘or (d)’’ and in9 serting ‘‘(d), or (n)(2)’’; and 

10 (C) in subsection (d)(3)(C), by striking ‘‘or 

11 (d)’’ and inserting ‘‘(d), or (n)(1)’’.

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