HB 295 — Local Government Maintenance of a Nuisance: Compensation for Property Owners

House Bill 295 would allow for property owners to seek compensation from local governments when their property value declines or they incur expenses due to the government's failure to enforce certain laws, through the maintenance of a public nuisance. The bill is designed to hold local governments financially accountable for policies, patterns, or practicies of non-enforcement that negatively impact private property. Property owners can file claims if a local government refuses to enforce laws prohibiting public camping, loitering, obstructing thoroughfares, panhandling, drug possession, shoplifting, or public intoxication or fails to comply with state laws concerning sanctuary policies or public benefits and the local government maintains a public nuisance whereby the owner can document a reduction in value to their real property because of the local government policy. 

If a claim is approved, the government must compensate the owner based on either the documented mitigation expenses or the supposed reduction in fair market value, with payments capped at the amount of property taxes paid by the owner in the current tax year. If a claim is denied or ignored within 30 days, the owner may sue in superior court, with the burden of proof on the local government to justify its actions. Successful claimants are entitled to attorney’s fees. If a claimant submits a claim that is unsucessful, should the claimant chose to submit a second claim, and it is also unsucessful, the local government may pursue reasonable costs and fees incured by the government in defending the unsucessful claims. The bill waives sovereign immunity to allow lawsuits against local governments.