Property Rights/Regulatory Reform

The Issue

Private property rights advocates are concerned that federal regulatory actions diminish the value of private property and violate the "takings" clause of the Fifth Amendment to the U.S. Constitution. These actions leave landowners no recourse to receive compensation for lost value except through the courts, a painstaking process. Supporters of regulatory reform believe that regulatory agencies overstate the risks to health and the environment in order to justify aggressive regulations that result in substantial compliance costs but little actual benefit. Both property rights and regulatory reform are needed to ensure landowners are not deprived of the use of their property and that new regulations are not overly burdensome.

Position

Property Rights: NAIOP strongly supports compensating landowners whose property values are diminished as a result of regulatory action, as well as providing for faster, direct access to federal courts as a result of such action, particularly action under the Endangered Species Act and the wetlands permitting provisions in Section 404 of the Clean Water Act. A reasonable level of compensation must be granted to landowners when their property is diminished in value because of federal regulation.

Talking Points

• Landowners whose property values are diminished as a result of regulatory action should be compensated for such a taking.
• Landowners who are deprived of economic use of their property and whose property value has diminished because of a regulatory action should have faster direct access to federal courts to address their grievances.

Legislation

• Current Legislation