Land Use & Zoning

In Virginia, 'down-zoning' a property from commercial to agricultural may constitute a compensable taking if the owner can show:

AAny reduction in value
BThat the regulation eliminates all reasonable economic use of the property✓ Correct
CThat the rezoning was politically motivated
DOnly if the property is worth over $1 million

Explanation

Under Lucas v. South Carolina Coastal Council, a regulatory taking requiring compensation occurs when the regulation denies the owner of all economically beneficial use of the property. Mere diminution in value is generally not compensable.

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