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See some of Saul Fenchel's eminent domain articles covering various subjects in Eminent Domain Condemnation.

What is "Condemnation Blight"?

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A concept which is often confused with the “de facto” taking is “condemnation blight.” They are different concepts. A de facto taking is where the actions of the government (or inactions – such as refusal to grant development approvals) become so damaging to the property that it is equivalent to a taking (i.e., a “de facto” taking). If there is a “de facto” taking, just compensation must be paid.

In contrast, a “condemnation blight” is where the property as of vesting date was depreciated in value by the condemnor’s prior announcement (and related conduct) in respect to the condemnation. Where there is a showing of “condemnation blight” the Court will adjust the amount of just compensation upward to offset the government action depressing the value. This is often accomplished by the Court utilizing a date prior to the vesting date when the property was not adversely affected.

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