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HomeMy WebLinkAboutMeasure 37 Proposed by Initiative Petition MEASURE 37 GOVERNMENTS MUST PAY OWNERS, OR FORGO ENFORCEMENT, W:HEN CERTAIN LAND USE RESTRICTIONS REDUCE PROPERTY VALUE RESULT OF IIYESII VOTE: "Yes" vote requires that governments. pay owners, or forgo enforcement by repealing, changing, not applying restrictions, when certain land use restrictions reduce owners' property value. RESULT OF IINO" VOTE: "No" vote rejects requiring that governments pay owners or forgo enforcement by repealing, changing, not applying restrictions, when certain land use restrictions reduce property value. SUMMARY: Currently, Oregon Constitution requires government(s) to pay owner "just compensation" when condemning private property or taking it by other action, including laws precluding all substantial beneficial or economically viable use. Measure enacts statute requiring that when state, city, county, metropolitan service district enacts. or enforces land use regulation that restricts use of private real property or interest thereon, government rnust pay owner reduction in fair market value of affected property interest, or forgo enforcement. Governments may repeal, change, or not apply restrictions in lieu of payment; if compensation not timely paid, owner not subject to restrictions. Applies to restrictions enacted after "family member" (defined) acquired property. Creates civil right of action including attorney fees. Provides no new revenue source for payments. Certain exceptions. Other provisions. ESTIMATE OF FINANCIAL IMPACT: The measure would require state administrative expenditures to respond to claims for compensation of between $18 million and $44 million per year. The measure may require compensation to landowners. The amount of state expenditures needed to pay claims for compensation cannot be determined. There is no financial effect on state revenues. 'The measure w01;1ld require l<?cal government administrative expenditures to respond. to claims for compensation of between $46 million and $300 million per year. . The measure may require compensation to landowners. The amount of local govermnent expenditures needed to pay claims for compensation cannot be determined. The effect of the measure on local government revenues cannot be determined. November 2,2004 General Election Ballot Measure 37 Explanatory S1tatement: Ballot ~lIeasure 37 adds a new statute to ORS chapter 197. As specified in the measure, the owner of private real property is entitled to receive just compensation when a land use regulation is enacted after the owner or a family member became the owner of the property if the regulation restricts the use of the property and reduces its fair market value. If a property owner proves that a land use regulation restricts the use of the owner's property, and reduces its value then the government responsible for the regulation will have a choice: pay the owner of the property an amount equal to the reduction in value or modify, change or not apply the regulation to the owner's property. The measure allows the state, county, city or metropolitan service district to adopt procedures for processing claims for compensation, but prohibits those procedures from being treated as a prerequisite to the filing of a elaim in circuit court. The measure does not apply to commonly and historically recognized public nuisances, public health and saf(~ty regulations, regulations required to comply with federal law, and regulations restricting or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing. The measure specifies that compensation is due if the regulation remains in force 180 days after the owner makes written demand for compensation. After that time, the present owner may file an action in the circuit court in the county in which the property is located. The measure also specifies that the present owner is entitled to reasonable attorney fees, expenses, costs and other disbursements reasonably incurred to collect compensation. The measure provides no new revenue source for payments, if any, required under this measure. The measure defines several terms that are used in the statute including "family member" which is defined as wift~, husband, son, daughter, mother, father, brother, brother-in-law, sister, sister-in-law, son- in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew, stepparent, stepchild, grandparent, or grandchild of the owner of the property, an estate of any of the foregoing family members, or a legal entity owned by anyone or combination of these family members or the owner of the property .