Professional Documents
Culture Documents
CLERK
Indiana Supreme Court
Court of Appeals
and Tax Court
IN THE
COURT OF APPEALS OF INDIANA
Mathias, Judge.
[1] 624 Broadway, LLC appeals the trial court’s entry of summary judgment for the
the Gary Housing Authority’s exercise of eminent domain over real property
owned by 624 Broadway. 624 Broadway raises four issues for our review,
authority to take over the Gary Housing Authority in the event HUD were to
agreements.
[3] In 2013, HUD designated the Gary Housing Authority as “troubled” under
federal housing law, and, based on that designation, HUD concluded that the
Housing Authority. The Cooperative Endeavor Agreement made clear that the
HUD administrator’s role was “to serve as [the Gary Housing Authority’s]
the conditions that led to [the Gary Housing Authority’s] troubled status and
[4] In 2017, the Gary Housing Authority “sought to acquire all of the properties
within the western 600 block of Broadway [Avenue] for the purpose of building
1
HUD and the City of Gary modified the Cooperative Endeavor Agreement from time to time, and, in 2019,
they converted the agreement into a Transitional Agreement.
Appellant’s App. Vol. II p. 178. At that time, HTO Investments, LLC, owned
the real property located at 624 Broadway Avenue (“the property”). The Gary
provided under Indiana Code sections 32-24-1-1 to -17 (“Chapter 1”), and it
ordered an appraisal of the property in late 2017 and again in late 2018. Both
[5] On January 11, 2019, the Gary Housing Authority offered to purchase the
property from HTO Investments for $24,000. However, on January 15, HTO
Investments instead sold the property for $25,000 to 624 Broadway. In March,
the Gary Housing Authority performed an updated title search for the property,
which reflected 624 Broadway as the fee simple title holder. The Gary Housing
Authority then filed a complaint against 624 Broadway to acquire the property
through eminent domain. 624 Broadway filed various objections and alleged
that the Gary Housing Authority had failed to follow the proper procedures
under Chapter 1. In May, the Gary Housing Authority moved to dismiss its
[6] On August 15, the Gary Housing Authority re-initiated eminent domain
Housing Authority, adopted a resolution declaring a necessity and desire for the
Gary Housing Authority to acquire the property through eminent domain. The
the condemnation of the property. The Gary Housing Authority then published
on August 21 and August 28. The Gary Housing Authority did not mail notice
[7] However, Allen did learn of the September 19 hearing, attended it, and spoke at
it. At the conclusion of the hearing, the Gary Housing Authority confirmed the
resolution that listed 624 Broadway as the only affected property owner of the
condemnation and established a damage award of $75,000 for the taking of the
property. The September 19 resolution set a hearing date of October 17 for any
2
Chapter 2 provides an alternate procedure to Chapter 1 for a municipality exercising the power of eminent
domain. Util. Ctr., Inc. v. City of Ft. Wayne, 985 N.E.2d 731, 735 (Ind. 2013). Indiana Code section 36-7-18-
28(a)(2) permits a local housing authority to exercise the power of eminent domain under Chapter 2 in
certain circumstances.
Allen.
[8] Nonetheless, Allen learned of the October 17 hearing date, and 624 Broadway
hired an appraiser to assess the property. 624 Broadway then requested that the
Gary Housing Authority continue the October 17 hearing date for 624
Authority denied the request. On October 16, 624 Broadway filed its complaint
against the Gary Housing Authority seeking injunctive relief based on the Gary
request for damages.3 Meanwhile, on October 17, the Gary Housing Authority
his valuation of the property and determined that the property had a fair market
value of $325,000.
[9] In June 2020, the Gary Housing Authority filed is motion for summary
and also moved for summary judgment. In relevant part, 624 Broadway
3
We reject the Gary Housing Authority’s assertion that the last amended complaint did not relate back to the
October 16 filing date, and we further agree with 624 Broadway that the originally filed complaint operated
as a timely petition for judicial review from the housing authority’s October 17 decision. Thus, we need not
consider the Gary Housing Authority’s assertion that 624 Broadway’s claims were untimely.
otherwise were not supported by the law and the facts. After a hearing, the trial
court granted the Gary Housing Authority’s motion for summary judgment,
denied 624 Broadway’s motion, and entered its order as a final judgment. This
appeal ensued.
Standard of Review
[10] 624 Broadway appeals the trial court’s entry of summary judgment for the Gary
Housing Authority as well as the court’s denial of 624 Broadway’s motion for
well established. As our Supreme Court has made clear, “[w]e review summary
judgment de novo, applying the same standard as the trial court.” G&G Oil Co. v.
burden on the movant.” Siner v. Kindred Hosp. Ltd. P’ship, 51 N.E.3d 1184, 1187
(Ind. 2016). We draw all reasonable inferences in favor of the non-moving party
and affirm summary judgment only “if the designated evidentiary matter shows
that there is no genuine issue as to any material fact and that the moving party
is entitled to judgment as a matter of law.” Id. (quoting Ind. Trial Rule 56(C)).
prevented from having its day in court.” Id. (quoting Tankersley v. Parkview
Hosp., Inc., 791 N.E.2d 201, 203 (Ind. 2003)). Further, “[p]arties filing cross-
motions for summary judgment neither alters” our standard of review “nor
whether the moving party is entitled to judgment as a matter of law.” G&G Oil
Co., 165 N.E.3d at 86 (quoting Erie Indem. Co. v. Estate of Harris, 99 N.E.3d 625,
[12] Here, the parties’ arguments on summary judgment broadly fall into two
categories: whether the Gary Housing Authority had the lawful ability to
exercise eminent domain on these facts, and whether the manner in which the
asserts that federal law authorizing HUD to take over a troubled local housing
authority does not preempt state-law quorum and membership requirements for
seeking to exercise eminent domain first obtain the approval of the fiscal body
that created the housing authority; and that Indiana’s Housing Authorities Act,
further, that the manner in which the Gary Housing Authority exercised
eminent domain here denied 624 Broadway proper notice and an opportunity
to be heard.
[13] We conclude that 624 Broadway’s arguments regarding whether the Gary
Housing Authority had the lawful ability to exercise eminent domain fail. We
also conclude that 624 Broadway’s procedural argument under the claimed
federal statutes and regulations is not cognizable. However, we agree with 624
Broadway that the manner in which the Gary Housing Authority exercised the
power of eminent domain here violated 624 Broadway’s state statutory rights to
4
Because we resolve 624 Broadway’s procedural arguments under the Indiana Code, we need not consider
624 Broadway’s constitutional process arguments. Further, based on our disposition, we need not reach 624
Broadway’s alternative argument that the Gary Housing Authority’s taking of and award of damages for the
property are not supported by sufficient evidence.
local housing authorities. In particular, 624 Broadway first asserts that Indiana
Code section 36-7-18-5, which states that the Board of Commissioners for a
local housing authority for a city “shall” consist of “seven (7) persons,” and
from acting in the capacity of the Gary Housing Authority. Second, 624
Broadway asserts that, under Indiana Code section 36-7-18-14(1), the “approval
of the fiscal body that established” the Gary Housing Authority, the Gary
Common Council, was required before the HUD Administrator could exercise
eminent domain.
[15] 624 Broadway’s argument that the Gary Housing Authority’s exercise of
law. Under the Supremacy Clause of the United States Constitution, federal
law is “the supreme Law of the Land,” the “Laws of any state to the Contrary
notwithstanding.” U.S. Const. Art. VI, cl. 2. As the Supreme Court of the
Crosby v. Nat’l Foreign Trade Council, 530 U.S. 363, 372–73 (2000) (cleaned up).
[16] The United States Code expressly authorizes the Secretary of HUD to appoint
substantial default of its agreements with HUD. Specifically, the United States
***
responsibilities of the Secretary for the administration of all or part of the public
[17] Thus, as a matter of federal law, the HUD administrator exercised the authority
impossible for the single HUD administrator to act in the capacity of the Gary
must yield to the HUD administrator’s authority under the United States
Code.5
5
624 Broadway also asserts that the denial of the statutory quorum denied 624 Broadway its due process
rights. But 624 Broadway’s due-process argument is derivative of its assumption that the statutory quorum
requirement applies. As we reject that position, we conclude that 624 Broadway’s related due-process
argument is not supported by cogent reasoning, and we do not address it further.
U.S.C.A. § 1437d(j)(3). For example, the United States Code directs that the
the best interests of the public housing residents and families . . . for managing
all, or part, of the public housing administered by the agency or of the programs
[19] To require the Gary Common Council to approve the HUD administrator’s
exercise of his federal statutory discretion would create “an obstacle to the
Crosby, 530 U.S. at 373. Where, as here, HUD has appointed an administrator
14(1)’s requirement that the local housing authority obtain the approval of the
local fiscal body before the housing authority can exercise eminent domain is
under federal law. Thus, that requirement of Indiana law must yield to the
affirm the trial court’s entry of summary judgment for the Gary Housing
exist and the providing of safe and sanitary dwelling accommodations for
persons of low income are public uses and purposes for which public money
affordable housing.
[21] We cannot agree. The plain language of section 36-7-18-2 does not restrict a
6
The Gary Housing Authority does not assert on appeal that this argument is preempted by the HUD
administrator’s discretion under federal law.
section 36-7-18-2, and we affirm the trial court’s entry of summary judgment for
related regulations under the federal Uniform Relocation Assistance and Real
Uniform Act. But section 4602 of the Uniform Act explicitly states that section
4651 creates “no rights or liabilities and shall not affect the validity of property
Congress in enacting [section] 4602 . . . could not have been expressed more
clearly: the policies set forth in [section] 4651 are advisory only, and they create
practices.” City of Mishawaka v. Sara, 396 N.E.2d 946, 947 (Ind. Ct. App. 1979)
judgment for the Gary Housing Authority on 624 Broadway’s claims under the
exercise eminent domain over the property under the procedures of Chapter 2.7
We further note that, while 624 Broadway’s complaint and brief on appeal
substance of its claim and arguments on appeal are within Chapter 2, which
both parties acknowledge and address in their briefs. Appellant’s Br. at 40 n.1;
Appellee’s Br. at 24–28; see also Appellant’s App. Vol. II at 97–99. As our
v. State, 100 N.E.3d 258, 262 (Ind. 2018) (quotation marks omitted). As we
[24] Because eminent domain statutes are in derogation of the common law rights to
property, they “must be strictly construed, both as to the extent of the power
7
As the designated evidence establishes that the Gary Housing Authority initiated eminent domain
proceedings under Chapter 2, 624 Broadway’s alternative claim for inverse condemnation must fail. See, e.g.,
Lake Cnty. v. House, 168 N.E.3d 278, 286 (Ind. Ct. App. 2021) (noting that a claim for inverse condemnation
exists if the government takes property but fails to initiate eminent domain proceedings), trans. denied.
N.E.2d 731, 735 (Ind. 2013). As our supreme court has explained:
[25] Essential to our analysis on this issue are Indiana Code sections 32-24-2-6(b)
8
Again, a local housing authority may exercise eminent domain under Chapter 2 in certain circumstances.
I.C. § 36-7-18-28(a)(2).
The notice must name a date, at least thirty (30) days after the last
publication, at which time the board will receive or hear remonstrances
from persons interested in or affected by the proceeding.
***
(d) The notices must also name a day, at least thirty (30) days after
service of notice or after the last publication, on which the [housing
authority] will receive or hear remonstrances from owners with
regard to:
(Emphases added.)
[26] Here, the designated evidence is clear. The August 15 resolution set a
property. The Gary Housing Authority did not mail notice of its resolution to
624 Broadway’s registered agent, Allen, which failure was contrary to Indiana
of that resolution on August 28. The date of the last publication was not at least
thirty days before the September 19 hearing for remonstrances, which was also
resolution that listed 624 Broadway as the only property owner affected by the
property. The September 19 resolution set a hearing date of October 17 for any
remonstrances against the damage award. The Gary Housing Authority again
did not serve written notice of that resolution to Allen, which was contrary to
Indiana Code section 32-24-2-8(b). The Gary Housing Authority last published
notice of the resolution on October 5. The date of the last publication was not at
least thirty days before the October 17 hearing for remonstrances against that
“strictly construed, both as to the extent of the power and as to the manner of
its exercise.” Util. Ctr., Inc., 985 N.E.2d at 735. The Gary Housing Authority
did not follow the procedural notice requirements of Chapter 2 when it failed to
9
The Gary Housing Authority asserts that Indiana Code section 32-24-2-6(b)(1) and (b)(2) are disjunctive
such that notice by publication alone is sufficient under the statute. We reject that reading of the statute,
which ignores the “and” immediately before subparagraph (b)(2). Further, even if the statute were
ambiguous, our canons of construction would require us to strictly construe it for the property owner, which
would also result in applying the “and” to subparagraph (b)(2). See Util. Ctr., Inc., 985 N.E.2d at 735.
fewer than thirty days after each resolution’s date of last publication.
[29] Further, while the Gary Housing Authority suggests that its failure to serve
written notice of the resolutions on Allen was harmless as he still learned of the
two meetings and attended, we cannot agree. 624 Broadway moved to continue
the October 17 hearing to obtain its own appraisal of the property, which
motion the Gary Housing Authority denied. The Gary Housing Authority’s
failure to properly serve 624 Broadway and its failure to hold its damages
hearing no fewer than thirty days after the date of last publication contributed to
624 Broadway’s inability to obtain its own appraisal of the property prior to the
evidence of its damages at that hearing. We cannot say with confidence that,
had the Gary Housing Authority complied with Chapter 2, as it was required to
do, it would have assessed the same damage award for the property to 624
Broadway.
[30] Therefore, we reverse the trial court’s entry of summary judgment for the Gary
with Chapter 2, and we likewise reverse the court’s denial of 624 Broadway’s
genuine issue of material fact regarding whether the Gary Housing Authority
624 Broadway on its claim that the Gary Housing Authority’s administrative
taking of the property violated 624 Broadway’s procedural rights under Chapter
and to hold any further proceedings that are consistent with this opinion.
Conclusion
[31] In sum, we affirm the trial court’s entry of summary judgment for the Gary
Housing Authority on 624 Broadway’s claims under Indiana Code sections 36-
7-18-2, -5, -13, and -14(1). We also affirm the trial court’s entry of summary
judgment for the Gary Housing Authority on 624 Broadway’s claims under the
Uniform Act and associated federal regulations. However, the trial court erred
when it granted the Gary Housing Authority’s motion for summary judgment
on 624 Broadway’s claims under Chapter 2 and denied 624 Broadway’s related
motion for summary judgment on that issue. Thus, we reverse the trial court’s
judgment and remand with instructions for the court to enter summary
judgment for 624 Broadway on its claim that the Gary Housing Authority’s
of the property, and to hold any further proceedings that are consistent with this
opinion.