A plan for North Las Vegas to get into the real estate game, using eminent domain to seize some specific home loans in the city, was voted down during Wednesday night meeting of the City Council.
Council members voted unanimously to terminate an agreement with Mortgage Resolution Partners (MRP).
The controversial move has been approved by five small communities in California and rejected by Chicago and San Bernardino.
Plenty of North Las Vegas homeowners are underwater on their home loans and in bad need of relief. The plan's proponents claimed eminent domain would have gotten those who needed it most out of bad mortgages and kept the city from missing out on property taxes.
Only a few thousand homeowners in North Las Vegas would have qualified. The plan was opposed by the Greater Las Vegas Association of Realtors (GLVAR).
"The last thing the community of North Las Vegas needs is a reckless program like this that jeopardizes private property rights and hurts the entire community with the mere possibility of helping a small segment of it," GLVAR's Sean Fellows told FOX5 earlier this summer.
GLVAR President Dave Tina, along with the Nevada Association of Realtors, released a statement to FOX5 on Wednesday which reads, in part:
"On behalf of the more than 11,000 members of the Greater Las Vegas Association of Realtors, I'm pleased that the North Las Vegas City Council reconsidered its previous position and voted to back away from this misguided plan to misuse its power of eminent domain to seize mortgages from local homeowners. Like many others who opposed this scheme, GLVAR members believed all along that this would have been bad public policy, and likely illegal."
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