BILL NUMBER: S2544
SPONSOR: MYRIE
 
TITLE OF BILL:
An act to amend the eminent domain procedure law, in relation to desig-
nating blighted property and blighted areas; to amend the New York state
urban development corporation act, in relation to the definition of
blight and substandard or insanitary area; and to amend the general
municipal law and the New York state urban development and research
corporation act, in relation to substandard and insanitary areas
 
PURPOSE:
To provide an objective, measurable standard for determining whether a
property, group of properties or an area is "blighted" in the context of
the exercise of eminent domain, as well as to narrow the definition of
"substandard or insanitary area" found in multiple provisions of the
law.
 
SUMMARY OF PROVISIONS:
Section 1 amends Section 103 of the Eminent Domain Procedure Law, "EDPL"
by adding a new subdivision (H) which defines, "blighted property" and
"blighted area".
Section 2 amends subdivision B of Section 204 of the EDPL to add a clos-
ing paragraph that requires a condemner to include findings that satisfy
the definition of "blighted property or blighted area" if the condemner
is exercising eminent domain to remedy blight.
Section 3 amends the eminent domain procedure law by adding a new
section 204-a which defines blighted property and blighted areas as a
property or group of properties that would be found to be blighted only
if they met certain detailed criteria. Certain properties are listed as
exempt from This determination, and for one property to be found blight-
ed, a majority of the individual properties would have to be found to be
blighted and represent a geographical majority of the redevelopment
area. A condemner must make written findings on the conditions that
constitute blight, and a blight declaration would be valid for up to
fifteen years.
Section 4 amends Section 206 of the eminent domain procedure law, subdi-
vision (E) as added by Chapter 468 of the laws of 1978 which allows the
condemnor an exemption from compliance with the provisions of this arti-
cle when a license, permit, or certificate or public convenience or
necessity had been obtained or other similar approval from such agency,
board, or commission.
Section 5 amends section 3 of section 1 of chapter 174 of the laws of
1968, the constitution of the New York State Urban Development Corpo-
ration Act to incorporate the definition of "blighted property" and
"blighted area".
Section 6 amends subdivision 12 of section 3 of section 1 of chapter 174
of the laws of 1968, constitution of the New York State Urban Develop-
ment Corporation Act which removes the terms "slum" and "deteriorated or
deteriorating" from the definition of "substandard or insanitary area"
Section 7 amends the second and sixth undesignated paragraphs of section
2 of section 1 of chapter 174 of the laws of 1968, constituting the New
York State Urban Development Corporation Act which removes the terms
"slum" and "deteriorated or deteriorating" from the legislative find-
ings.
Section 8 amends paragraph (d) of subdivision 6 of section 16-n of
section 1 of chapter 174 of the laws of 1968, constitution of the New
York State Urban Development Corporation Act, as added by section 2 part
C-2 of chapter 109 of the laws of 2006 which removes the term "deteri-
orated" from the types of properties subject to a municipal inventory
and assessment for in-kind contributions.
Section 9 amends section 501 of the general municipal law as added by
chapter 402 of the laws of 1961 which removes the terms "slum" and
"deteriorated or deteriorating" from the policy and purposes.
Section 10 amends subdivision 4 of Section 502 of the general municipal
law as amended by chapter 748 of the laws of 1967 which removes the
terms "slum" and "deteriorated or deteriorating" from the definition of
"substandard or insanitary area."
Section 11 amends paragraph (a) of subdivision 5 of section 510 of the
general municipal law as amended by chapter 829 of the laws of 1968
which removes "slum areas" and "deteriorated or deteriorating" from the
types of properties that can be acquired through community renewal
programs, so that blight is the sole standard.
Section 12 amends Section 520 of the general municipal law to remove
"slum" and "deteriorated or deteriorating" from the types of properties
subject to urban renewal projects.
Section 13 amends Section (1)(2) of the Urban Development and Research
Corporation Act which removes "deterioration" from the statement of
legislative findings,
Section 14 provides the effective date.
 
JUSTIFICATION:
That "private property shall not be taken for public use without just
compensation" is a right guaranteed by the New York Constitution. The
words "public use" are meant to protect property owners from the State's
power to transfer property from one private property owner to another.
Over the last decade, courts have considered the question of whether
economic development constitutes a "public use." In the most notable of
these cases, Kelo v. City of New London, the Supreme Court allowed for
the forcible transfer of property from one private owner to another in
support of economic development. This decision has prompted legislative
reform in forty-three states and it is time for New York to follow suit.
In a decision by the New York Court of Appeals addressing the use of the
eminent domain in the context of economic development, Chief Judge Lipp-
man stated that "it may be that the bar has now been set too low that
what will now pass as 'blight,' as that expression has come to be under-
stood and used by political appointees to public corporations relying
upon studies paid for by developers, should not be permitted to consti-
tute a predicate for the invasion of property rights and the razing of
homes and businesses. But any such limitation upon the sovereign power
of eminent domain as it has come to be defined in the urban renewal
context is a matter for the Legislature, not the courts." Matter of
Goldstein v. New York State Urban Dev., (2009 NY Slip op 08677) (empha-
sis added). This bill is in response to Chief Judge Lippman's invitation
to further define blight. This bill provides objective, quantifiable
standards by which to determine whether a property or area is indeed
blighted. It will ensure that condemners under the Urban Development
Corporation Act, General Municipal Law, Urban Development and Research
Corporation Act, and the Eminent Domain Procedure Law use consistent and
predictable factors related to the public's health and safety to evalu-
ate the blight status of a neighborhood. The bill requires that a major-
ity of the properties within the redevelopment area be considered
blighted and that these properties cover a majority of the geographical
area of the project.
Eminent domain can be a useful and even necessary tool for urban rede-
velopment, particularly for older built-out cities like those in New
York State. Its application, however, must balance the rights of proper-
ty owners with the need for economic development. This bill provides
much-needed standards to be used when such rights are balanced against
the need for development.
 
LEGISLATIVE HISTORY:
S2384 of 2023-24: Referred to Judiciary.
S275 of 2021-22: Referred to Judiciary.
S3136 of 2019-20: Referred to Judiciary.
S7968 of 2018: Referred to Judiciary.
S4891 of 2015-16: Referred to Judiciary.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S2544: 103 eminent domain procedure law, 204 eminent domain procedure law, 41.34 mental hygiene law, 501 general municipal law, 502 general municipal law, 502(4) general municipal law, 510 general municipal law, 510(5) general municipal law, 520 general municipal law