On the Overton Window podcast, Angela Erickson, vice president of research at the Foundation for Individual Rights and Expression and former senior research director at Pacific Legal Foundation, talks about the critical role of project management in the legislative fight against home equity theft. This issue affects homeowners across the United States, with devastating consequences for those who fall behind on their property taxes. Erickson gained a thorough understanding of the problem while leading a successful fight against home equity theft at Pacific Legal Foundation. 

Government can seize a property to recover unpaid taxes, sell it for more than the taxes owed, and pocket the difference.

“In all states, if you don’t pay your property taxes, the government can come and foreclose your property in order to recoup the owed property taxes,” Erickson says. “In 2019, there were about 15 states where not only could they recoup property taxes, but the government and or a private lien holder could keep all of your equity.”

In those 15 states, the government collects keeps every dollar from the sale of the foreclosed property, not just the owed taxes, effectively robbing people of their own equity in their former homes.

During her tenure at the Pacific Legal Foundation, the foundation won court cases establishing that home equity theft was unconstitutional. But this was only the first step to ending the practice.

“When courts say that something is unconstitutional, they don’t strike down laws. You actually have to bring in legislation to get that previous legislation off the books. It’s a big strategy,” Erickson says.

It was Erickson’s job to show that home equity theft was harming people. Heading a large research project would build support to end the practice. The extensive range of the project made project management a vital part of her work.

Erickson knew she had to get a comprehensive review of the governments that take home equity from people who owe property taxes, and she requested data from governments. She narrowed that focus to Arizona when its legislators expressed interest in doing something about this issue.

“Being mindful of an opportunity when you’re working on a big project — to be able to pivot your resources to execute on something smaller — is really important,” Erickson says. “That’s really only possible when you know the goal isn’t the process; it’s getting all of the thinking on how to execute something out of the way beforehand, so that when an opportunity arises or a problem arises, you can pivot quickly and respond to that.”

Erickson describes specific cases where she was able to apply this process — North Dakota, Minnesota, and Michigan. Erickson worked toward legislative change in each of these states and more, trying to end home equity theft in all of them.

Erickson’s efforts paid off with the Pacific Legal Foundation’s first big win against home equity theft. In July 2020, the Michigan Supreme Court ruled that home equity theft was a violation of property owners’ rights.

“We had taken a case up to the Minnesota Supreme Court and we had won a case in the Michigan Supreme Court,” she says. “We could feel the momentum. We could feel the Overton Window changing.”

Erickson and her team got their report out by the time the government had responded to the petition.

“Being able to get it out as quickly as possible allowed us to make this big impact at the Supreme Court,” she says. “We were able to cite that research in our reply to the court, then in our briefing to the court, along with in several amicus partners that also went to the Supreme Court in our favor.”

In May 2023, U.S. Supreme Court unanimously ruled in the Tyler vs. Hennepin County case that home equity theft was unconstitutional.

The Pacific Legal Foundation team filed for petition in the absence of Erickson, who was on maternity leave at the time. Their high-level of execution was only possible because of the extensively detailed project management work that had already been done. “Without that project management, there’s no way we would have been able to execute that on time” she says.

By fostering clear communication, adaptability, and a focus on tangible goals, project management serves as a powerful tool in effecting legislative change. As efforts continue in various states, the lessons learned from these experiences will undoubtedly shape future strategies, driving the movement toward greater equity and justice for homeowners.

Check out the conversation at the Overton Window podcast.

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