Condemnation Blight

“Condemnation blight refers to an action that is brought by a property owner for compensation from a governmental entity that has taken the owner’s property without bringing formal condemnation proceedings. Condemnation blight brings a debilitating effect upon value of a threatened, imminent or potential condemnation. In cases where true condemnation blight is present, a claimant may introduce evidence of value prior to the onslaught of the affirmative value-depressing acts of the public authority. In addition, compensation will be based on the value of the property for the purpose of debilitating threat of condemnation.”
[Long Island Lighting Co. v. Assessor for Brookhaven, 246 A.D.2d 156 (N.Y. App. Div. 2d Dep’t 1998)].

“Condemnation blight is a reduction in the value of condemned property that results due to the prospect of eminent domain and occurs between the time that the property is first considered for public acquisition and prior to the date of the actual taking. This chapter describes situations in which condemnation blight occurs; the rationale and methods for valuation of condemnation blight; and other noninvasive takings, such as when condemnation blight affects the remainder of land not condemned and when abutting landowners whose land is adjacent to condemned land suffer a diminution or enhancement in land value.”
Julius Sackman; Russel Van Brunt; Patrick J. Rohan; and Melvin ReskinÂ