The South Carolina House of Representatives recently passed a bill that would
allow hog farms next door to subdivisions, 10-story hotels on Sullivan's Island,
and invite industrial facilities into our neighborhoods. The bill that has now
moved to the Senate would take away one of our major weapons in fighting sprawl.
All of this is in the name of protecting property rights when in actuality it
will have a devastating impact on property values statewide.
House Bill 4503 would require county and municipal governments to pay
landowners if the zoning decisions they make prevent landowners from obtaining
the full speculative value of their property.
Thus, if a coastal community zoned to prevent 10-story hotels or other
communities zoned to prevent industrial facilities or hog farms next to homes,
they would have to pay off the developers using our tax dollars.
The South Carolina real estate lobby heralds H.4503 as protecting the rights
of landowners, but it does just the opposite by preventing the vast majority of
landowners from protecting the value of their homes from incompatible and
unwanted adjacent uses.
If the bill is enacted into law, municipalities and counties simply could not
risk undertaking zoning and other land use controls that might make them liable
for millions of dollars in speculative development value. H.4503 would even make
the local governments liable for the developers' attorney fees and litigation
costs in bringing the compensation lawsuits.
Ironically, zoning spread rapidly beginning in the 1920s and has remained in
continued, widespread use for the very purpose of protecting landowners'
property values as well as the community's quality of life. The added value that
zoning brings to the vast majority of landowners is not recoverable under state
law in a lawsuit by the local jurisdiction.
Nor should it be. But surely the reverse should not be enacted into law that
developers are allowed to collect millions in taxpayer dollars because they are
denied an incompatible use.
Local government is a core component of our democracy and much of what it
deals with involves land use. When environmental legislation of almost every
type passed the U.S. Congress in the 1970s, the one notable exception was in the
land use area. Such legislation was proposed, but failed because of the
overwhelming sentiment that land use should remain in the hands of local
government. The S.C. House bill would take away this local authority and place
land use decisions in the hands of any individual who cares to operate
completely at odds with the will of the community.
A recent U.S. Supreme Court decision affirming local government's right to
condemn property for economic revitalization has rightfully alarmed many
policymakers. But the General Assembly shouldn't use that as an excuse to
radically weaken our zoning laws. While it is doubtful that local governments
even have this right of condemnation in South Carolina, just to make sure, the
General Assembly is passing legislation to guarantee that they don't.
This legislation has nothing to do with H.4503's speculative compensation
requirement that would essentially end zoning and land use regulation.
The proponents of H.4503 claim it is a "takings bill" that protects against
the takings of private property. In fact, it is a "takings bill" only in the
sense that it takes away the authority of our elected local officials to protect
the rights of the vast majority of landowners.
Only one other state in the country, Oregon, has passed this radical
compensation law. In their eagerness to adopt this special interest legislation,
the South Carolina proponents of H.4503 included certain language that was
peculiarly applicable to Oregon.
Meanwhile, an article by Portland's daily newspaper states, "Three months
into Measure 37 (Oregon's compensation law), people on both sides of the new
property rights law agree on one thing: Oregon is a state in chaos." South
Carolina would be best served by the Senate rejecting the House bill and
sticking with the approach of the other 49 states.
While there are many of us who sometimes lack faith in local government
leaders, ask yourself if you'd rather have developers and real estate companies
doing the planning for our community. Behemoth beach-front hotels and pig farms
are lining up at the state's borders.
William L. Want is a law professor at the Charleston School of Law,
where he teaches land use law.