Eminent Domain, Mortgage Backed Securities, and the Limits of the Takings Clause
Eminent domain, the “ancient prerogative of sovereign governments,” has been used countless times to seize property that is necessary for the construction times to seize property that is necessary for the construction of roads, schools, bridges, and other public-works projects. The Fifth Amendment limitation that no “private property [shall] be taken for public use, without just compensation,” is the basis of federal eminent-domain law, and most state constitutions include similar language that permits the public seizure of private property in limited circumstances. While the vast majority of eminent-domain proceedings involve the seizure of land for public-works projects, recent Supreme Court cases such as Kelo v. New London and Hawaii Housing Authority v. Midkiff show that courts allow highly unconventional eminent-domain projects, so long as the projects further a public purpose.
