NAHB Joint Efforts Successful in Minnesota Takings Case
In a key win for NAHB and private property owners, the Supreme Court on May 25 handed down a unanimous decision delivering a victory to a landowner in a takings case out of Hennepin County, Minn. The landowner, 94-year-old Geraldine Tyler, owned a condominium that accumulated approximately $2,300 in unpaid real estate taxes and $13,000 in interest and penalties. The county sold Ms. Tyler’s property for $40,000, which satisfied her $15,000 tax debt. But under Minnesota law, the county kept the $25,000 in excess proceeds as a windfall.
Ms. Tyler sued Hennepin County, alleging the seizure of the excess proceeds from the sale of her house constituted a violation of the Fifth Amendment’s takings clause and a violation of the Eighth Amendment’s prohibition on excessive fines. At the trial court level, the case was dismissed for failure to state a claim. The Eighth Circuit affirmed.
Upon review, the Supreme Court found that Ms. Tyler’s lawsuit did in fact state a plausible claim. The county keeping the excess proceeds constituted a taking.
Seizing upon points raised in NAHB’s joint amicus brief, the Supreme Court noted that while state law is an important source of property rights, it cannot be used to circumvent traditional property interests. The Supreme Court also recognized the brief’s argument that since the Magna Carta, English and American common law has required governments to return any surplus from property taken to pay tax debts.
Again agreeing with the brief, the Supreme Court acknowledged the inconsistency of Minnesota law on the issue of excess proceeds. Banks in Minnesota are required by state law to return excess proceeds from a foreclosure sale to the home owner.
Minnesota law also protects the taxpayer’s right to surplus when collecting past due taxes on income or personal property. Yet, in the context of real estate taxes, Minnesota was pocketing the excess in real estate tax sales. This inconsistency was glaring to the unanimous Supreme Court.
Lastly, the Supreme Court rejected Hennepin County’s argument that Ms. Tyler had abandoned her property by failing to pay taxes, and therefore, had no right to the excess proceeds. The Supreme Court succinctly stated the county cannot “frame... [the failure to pay taxes] …as abandonment to avoid the demands of the Takings Clause.”
This win is not only important to Ms. Tyler but to property owners nationwide. No longer can localities seize windfalls on the excess proceeds from tax sales. This case also makes clear that states cannot circumvent traditional property rights via state law.
Latest from NAHBNow
The Home Builders Association of Central Tennessee focused on expanding its footprint in previously underserved areas by appointing new charter presidents to promote membership, build relationships with local officials and provide networking opportunities in outlying counties.
Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. Only 16% of NAHB Builder members, however, reported building age-restricted housing for people age 55 or older, according to 2025 Member Census. For builders and remodelers targeting this demographic, it is important to understand the trends within this part of the housing industry.
Latest Economic News
Existing home sales rose after three months of declines as improved inventory gave buyers more negotiating power. As buyers wait for rate relief, homes are sitting on the market longer and for-sale inventory reached the highest level in over a decade.
The median age of construction workers is 42, one year older than a typical worker in the national labor force, according to NAHB analysis of the latest 2024 American Community Survey (ACS) data.
The share of new single-family homes built with individual wells and septic systems increased in 2025 compared to the previous year. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC), approximately 10% of single-family homes started in 2025 were served by individual (private) wells, and 17% relied on individual septic systems.