No. 2874 VFW v. City of Milwaukee (Property Valuation)


U.S. Supreme Court

NAHB Involvement


In this case, a building was condemned by a local redevelopment authority. When a court valued the property, it applied the "undivided fee rule," which requires the court to value the fee simple interest in the property as if the property was only owned by one person. The court awarded no compensation to the building's owner and, as a result, the sole tenant also received no compensation for its leasehold interest.

The elimination of the undivided fee rule has an impact on multifamily developers whose property may be undervalued if leasehold interests are not taken into account in a condemnation. The tenant appealed this case through the Wisconsin Supreme Court and petitioned the U.S. Supreme Court for review.

NAHB submitted its amicus brief on May 5, 2010. On July 21, the U.S. Supreme Court denied the tenant's petition for certiorari.