The Electric Commentary

Monday, August 15, 2005

Those who had their property seized in Kelo...

may owe back rent.


Are you kidding? Click on this link and read the entire horrifying thing. Here's a horrifying snippet:

“The New London Development Corp., the semi-public organization hired by the city to facilitate the deal, is offering residents the market rate as it was in 2000, as state law requires. That rate pales in comparison to what the units are now worth, owing largely to the relentless housing bubble that has yet to burst.

I can’t replace what I have in this market for three times [the 2000 assessment],” says Dery, 48, who works as a home delivery sales manager for the New London Day .

…. And there are more storms on the horizon. In June 2004, NLDC (New London Development Corporation) sent the seven affected residents a letter indicating that after the completion of the case, the city would expect to receive retroactive “use and occupancy” payments (also known as “rent”) from the residents.

In the letter, lawyers argued that because the takeover took place in 2000, the residents had been living on city property for nearly five years, and would therefore owe rent for the duration of their stay at the close of the trial. Any money made from tenants — some residents’ only form of income — would also have to be paid to the city.

With language seemingly lifted straight from The Goonies , NLDC’s lawyers wrote, “We know your clients did not expect to live in city-owned property for free, or rent out that property and pocket the profits, if they ultimately lost the case.” They warned that “this problem will only get worse with the passage of time,” and that the city was prepared to sue for the money if need be.


More here, from Todd Zywicki.

1 Comments:

  • The thing I've never understood is why the residents of New London don't throw the bums out -- wouldn't you think a story like this would spur huge voter turnout to elect a city council that vowed not to take people's homes?

    By Blogger MDS, at 12:40 PM  

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