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Eminent Domain and Residential Property in California

Homes and residential land raise a particular set of questions: what the house is worth, what a new alignment does to the lot, and what relocation benefits are owed to the people living there.

What compensation covers for a home

On a whole take, compensation is the fair market value of the house and the land, measured for the highest and best use the property could lawfully be put to. Comparable sales drive the number, so which sales an appraiser chose and how they were adjusted is the first thing to examine.

Partial takes on a residential lot

Most residential acquisitions are partial. A widening takes the front of the lot, a sound wall moves closer, a driveway is relocated. The value of the strip is rarely the main issue. Damages to the remainder are, and they turn on facts a homeowner knows better than an appraiser.

  • Setback lost, so the house sits closer to the road than the zoning contemplated.
  • Driveway relocated, regraded or narrowed.
  • Mature landscaping, fencing, retaining walls or irrigation removed.
  • Noise, headlights or a wall where a garden was.
  • A remainder too small to rebuild on if the house were lost.

Relocation assistance

The California Relocation Assistance Act, Government Code sections 7260 to 7277, provides payments and advisory services to owners and to tenants who are displaced. These benefits are separate from just compensation for the property and are not deducted from it. Tenants have rights here even though they own nothing.

Owners and tenants both

A displaced tenant may be entitled to relocation benefits even where the landlord negotiates the sale. Occupancy dates matter, so record when people moved in.

Proposition 99

Approved by California voters in June 2008, Proposition 99 limits the taking of an owner occupied residence for conveyance to a private party. It does not restrict acquisitions for traditional public projects such as roads, water and transit.

Start with your situation

Where are you in the process?

Related resources

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Questions owners ask

About residential property

Will I be paid enough to buy a comparable home?

Compensation is measured by fair market value rather than replacement cost. Relocation assistance can help bridge some of the difference for displaced occupants.

What happens to my tenants?

Displaced tenants may be entitled to relocation assistance and advisory services under Government Code sections 7260 to 7277.

The agency only wants my front yard. Does that matter?

Yes. Damages to the remainder are often the larger part of the claim on a residential partial take.

Can my home be taken for a private developer?

Proposition 99 limits the taking of an owner occupied residence for conveyance to a private party.

Next step

Understand Your Next Steps

Understand what a residential acquisition should cover before you respond.

Get Help Understanding Your Situation
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