Property Law Keyed to Dukeminier
Hawaii Housing Authority v. Midkiff
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The condemnation process reduced the tax burden on the landowners who would face significant federal taxes if the title was conveyed by a normal sale of real estate. Tenants or lessees would file applications for condemnation and if an appropriate number of lessees requested a condemnation the state would condemn the tract. After that, the Hawaii housing authorities would sell the condemned land to the tenants or lessees who had applied for fee simple ownership. Thus, the owners would receive compensation from the sale but with a lesser tax burden.
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