The power of
eminent domain, also referred to as condemnation, refers to the
power of the government or other quasi-governmental entity, such as
a utility company, to take private property for a public
purpose.
The law requires "just compensation" to be paid when a
taking occurs. What happens, however, when the property taken
is common area owned by a community association, property
owners' association ("POA"), or homeowners'
association ("HOA") (collectively,
"Association")?
In a subdivision or planned community managed by an Association,
the common area and elements are typically owned by the
Association. However, the individual property owners have
easement rights granting them the right to use the common area (for
example, parks, playgrounds, swimming pools, tennis courts, streets
and walkways, and other commonly shared property). An
easement is a property right that, if taken, requires the payment
of just compensation to the holder of the easement; in