Richmond Seeks Partners for Plan to Seize Mortgages Using Eminent Domain

January 13, 2014
Modesto Bee (California) 
mortgage lending news

In California, Richmond City Council members have failed to garner the supermajority of votes needed to enact a controversial plan that would use eminent domain to seize underwater mortgages and reduce the amounts borrowers owe.

Now, Richmond Mayor Gayle McLaughlin and council members who support the plan are trying a different tactic. They are hoping to partner with other communities in a joint powers authority (JPA) -- a move that would require only a simple majority of council votes.

The mayor remarked, "The other cities have to take a step forward with us. It takes a certain gumption to do it, but it's so important." Opponents have characterized the new strategy as an end-run around the democratic process. Five votes are needed by the city's seven-member council to use eminent domain on its own. However, a fifth vote in Richmond has failed to materialize. It would take only four votes of the council to join a JPA. The four council members who have indicated they support using eminent domain could appoint themselves to the authority's governing board, which would be populated with like-minded leaders from other cities.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.