What Are the Laws for Condemning a House You Own in Iowa?

This question came from one of our users:

"What are the laws about condemning a house, if I own the property?"

In Iowa, the government may condemn (or take) your property, even if you don't want to sell your property, through a process called eminent domain. Eminent domain, or condemnation, is governed by the Iowa Constitution (Article I, Section 18) and Iowa laws, such as Iowa Code Chapters 6A, 6B, and Iowa Code Section 403.7. The government must demonstrate that the "taking" of your property is for a "public use" and pay "just compensation" to you as the property owner.  

Who may condemn my property?  

State Government: The State of Iowa, through its various agencies and entities, can condemn property for public use.  

Local governments, including cities, towns, and counties, are also authorized to condemn property for public purposes, such as infrastructure projects, public facilities, housing, and other forms of economic development.  

Utilities: Public utilities, under the supervision of the Iowa Utilities Commission, may also condemn property for specific purposes related to their services.  

Other Entities: The Iowa legislature can also grant the power of eminent domain to other entities, like those involved in certain types of urban development or public improvements.  

We explore a more detailed breakdown below: 

1. Public Use and "Just Compensation": 

Under Article I Section 18 of the Iowa Constitution:  

"Private property shall not be taken for public use without just compensation first being made, or secured to be made to the owner thereof, as soon as the damages shall be assessed by a jury, who shall not take into consideration any advantages that may result to said owner on account of the improvement for which it is taken. 

• Public Use: To be valid, a taking must be for a purpose that benefits the public, such as constructing roads and bridges, eliminating "blighted" (in neglect or deteriorating) areas, public parks, low-income housing, drains, power lines, pipelines, and the like.  
• Just Compensation: To be just, the government must pay you, as the property owner, a fair price for the property being taken. The property's value is typically determined by an appraisal. The value of the appraisal is typically the most contested issue arising out of eminent domain.  

2. Iowa Laws Governing Eminent Domain: 

• Iowa Constitution, Article I, Section 18: This section of the state constitution, in part, outlines the limitations on eminent domain and the requirements of just compensation.  
• Iowa Code, Chapters 6A and 6B: These chapters grant the authority to condemn a property (6A) and outline the specific procedures for condemnation (6B), including notice requirements, negotiation processes, and the appointment of commissioners to determine compensation in disputes.  
• Iowa Code Section 403.7- Condemnation of property: This section grants a municipality (town or city) the right to acquire, by condemnation, any interest in a person's real property which includes a title in fee simple, when the municipality has deemed the taking necessary for or in connection with an urban renewal project under Chapter 403 of the Iowa Code. 

3. Negotiation and Condemnation Process: 

Negotiation: Generally, before initiating condemnation proceedings, the government is required to negotiate with the property owner to purchase the property for a fair value.  

Notice: Notice of any proposed resolution, motion, or other document authorizing the acquisition of property by eminent domain must be provided to each property owner whose property is proposed to be acquired by eminent domain, to any contract purchaser of record of the property, and to any tenant known to be occupying the property at least fourteen days prior to the date of the meeting where the eminent domain is to be considered. 

Appraisal: Typically, the government must appraise the property to determine its fair market value.  

Offer: The government will make an offer to the property owner. This may include certain expenses, such as relocation costs.  

Challenge: An owner of the property being condemned may bring an action to challenge the government's exercise of eminent domain authority or the condemnation proceedings in the district court of the county in which the private property is located. 

Condemnation Proceedings: If the parties cannot agree on the fair value of the property, the government may file a petition for condemnation in the court where the property is located.  

Commissioners: If the parties cannot agree on compensation (fair value), commissioners may be appointed to determine a fair price.  

Appeal: Either party can appeal the commissioners' decision regarding the price of the property.  

Transfer of Title: Once the compensation is determined and paid to the prior owner, the government then takes possession of the property as the new owner.  

4. Specific Scenarios: 

Urban Renewal: Cities can condemn property for urban renewal projects, including acquiring property for low-income housing or eliminating blight. Joe has property A.  The city believes that a park is needed to increase the city's urban appeal as the population is increasing, and the city currently has no public parks. They may initiate a condemnation proceeding for a public park.  

Public Nuisance: A city may condemn a residential building found to be a public nuisance and take title to the property. The property generally must be extremely dilapidated, damaged, or deteriorated to such a degree that the building is likely to collapse or become an unattractive nuisance or urban blight to the city.

Maggie has a property that is in dire need of repair to the point that it has become a hazard to the public. The city may initiate a condemnation proceeding to replace the structure with low-income housing if Maggie is unwilling to agree to a sale price.  

Disposition of Condemned Property: The government can, after taking a property, later dispose of (sell) the property, and the previous owner may have the right to repurchase the property.

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Designed for general information use only. The content above does not constitute legal advice or the formation of an attorney/client relationship.