Land Use & Zoning

A Nebraska municipality that wants to downzone property from commercial to residential may owe the affected owner compensation if:

AThe downzoning was done for the public benefit
BThe downzoning eliminates substantially all economic value of the property (regulatory taking)✓ Correct
CThe property has been commercially used for over 10 years
DThe owner attended the public hearing and objected

Explanation

While ordinary rezoning typically requires no compensation, if the downzoning eliminates substantially all economic value (a regulatory taking), the Fifth Amendment and Nebraska constitution may require just compensation.

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