24 C.F.R. § 93.355
§ 93.355 Eminent domain. (24 CFR Part 93)
Operative Text
No HTF funds may be used in conjunction with property taken by eminent domain, unless eminent domain is employed only for a public use, except that, public use shall not be construed to include economic development that primarily benefits any private entity.
Under 24 CFR Part 93 § 93.355, Housing Trust Fund money cannot be paired with properties that were acquired through eminent domain unless the taking served a genuine public purpose. Critically, a taking that mainly benefits a private business or developer does not qualify as a public use under this rule, even if it was framed as economic development. The provision draws a firm line between broadly public benefits and those that flow primarily to private interests.
Plain English — not legal advice.
Property owners and managers working with HTF-assisted projects should be aware that § 93.355 restricts the use of HTF funds on any site that was acquired through eminent domain unless the condemnation was carried out for a qualifying public use. Compliant operators typically verify the acquisition history of a property before committing HTF funds and confirm that any prior eminent domain action was not primarily aimed at benefiting a private entity. Maintaining documentation of how a site was acquired is a standard part of due diligence in HTF-funded development.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 93.355 establishes that tenants living in HTF-assisted housing have an interest in knowing whether the land underlying their building was lawfully eligible for that funding. If a tenant believes HTF money was used on a property taken through eminent domain for primarily private economic benefit, they may raise that concern with their local HUD field office, a housing authority administering HTF funds, or a tenant-rights organization familiar with federal housing programs. Understanding the acquisition history of an HTF-funded property can be a starting point for exploring whether the funding was properly applied.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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