Section 26-B. Just compensation as including loss of mortgage financing  


Latest version.
  • Notwithstanding any inconsistent provisions of law, whenever property is
      taken pursuant to the  power  of  eminent  domain  (whether  denominated
      condemnation,  appropriation or otherwise) just compensation required by
      the state constitution shall include an amount sufficient to  compensate
      for  the  loss  of existing mortgage financing if such property was used
      prior to taking primarily as a residence however, such amount shall  not
      exceed  fifteen  thousand dollars. In computing the amount of such loss,
      the following shall be considered: (a) the difference  in  the  interest
      rate  payable  on the existing mortgage from that prevailing at the date
      of taking in the area where the property is  located  for  new  mortgage
      loans  on similar types of property to similar borrowers; (b) the length
      of time from the  date  of  taking  to  the  maturity  of  the  existing
      mortgage,  and (c) the prevailing costs to similar mortgage borrowers on
      similar types of property at the date of taking in the  area  where  the
      property  is  located of obtaining and closing a new mortgage loan in an
      amount equal to the unpaid principal balance of the existing mortgage.