Supreme Court Allows Property Rights Plaintiffs to Go Directly to Federal Court

Legal
Published

In a huge victory for NAHB and its members, the U.S. Supreme Court today reversed a long-standing land use decision that made it nearly impossible for property owners to bring a Fifth Amendment takings claim in federal court.

In 1985, the Supreme Court issued a decision, referred to as the Williamson County decision, that forced land use plaintiffs to first go through years of expensive state administrative and/or court proceedings prior to bringing a "takings" claim in federal court. Local governments would often use the decision to their advantage to tire out property owners. In addition, once a property owner finally filed a case in federal court, government defendants would use the prior state court decision as leverage to throw out the federal case.

Today, in Knick v. Township of Scott, the Supreme Court ruled that "the state-litigation requirement [in Williamson] imposes an unjustifiable burden on takings plaintiffs, conflicts with the rest of [the Court’s] jurisprudence, and must be overruled. A property owner has an actionable Fifth Amendment takings claim when the government takes his property without paying for it."

This means that rather than going through expensive and drawn-out state court proceedings, a land use plaintiff can bring a takings claim in federal court as soon as the taking occurs.

Over the past 34 years, NAHB has pursued multiple avenues to overturn Williamson County, in the form of litigation, amicus briefs and efforts to find a congressional fix. NAHB wrote legislation that passed the House on two occasions and has filed briefs in countless lawsuits on this issue. In fact, NAHB submitted one of just three amicus briefs encouraging the Supreme Court to take the Knick case.

At the merits stage, longtime NAHB member Frank Kottschade participated in an amicus brief, and Legal Action Committee member Tim Hollister wrote an amicus brief on behalf of the House Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties.

The road to this victory has been the result of unyielding effort by the NAHB membership and staff. For more information, contact Tom Ward at 800-368-5242 x8230.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Remodeling
Aug 10, 2026
Three States Drive Over 20% of Remodeling Activity, NAHB Research Finds

California, Texas and Florida continue to account for the largest shares of remodeling activity nationwide, according to first quarter results from NAHB’s State Projections of Remodeling (SPR). The SPR offers a quarterly state-by-state analysis of remodeling activity based on total dollar volume, market share and changes in remodeling spending.

Awards
Aug 07, 2026
Nominate Outstanding Members for 2027 National Housing Center Awards

The National Housing Center Board of Governors is seeking nominations for NAHB’s two highest honors: Membership in the National Housing Hall of Fame and the Exemplary Service in Home Building award. Nominations must be submitted by Sept. 4, 2026.

View all

Latest Economic News

Economics
Aug 07, 2026
U.S. Labor Market Softens in July

The U.S. labor market weakened in July, with nonfarm payrolls down 23,000 and downward revisions cutting another 103,000 jobs from May and June.

Economics
Aug 06, 2026
Multifamily Developer Confidence Weakens in Second Quarter

Confidence in the market for new multifamily housing weakened year-over-year in the second quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices.

Economics
Aug 06, 2026
Mortgage Rates Climb Again as Iran Conflict Re-escalates

Re-escalation of the conflict in Iran pushed mortgage rates higher in July. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.54% in July, up 5 basis points (bps) over June. Since the conflict in the Middle East began, the 30-year mortgage rate has climbed by almost 50 bps.