Commons of Lake Houston v. City of Houston

Developer of a master-planned community in a floodplain brought an inverse condemnation action against the city of Houston, alleging that the city’s amendment of a floodplain ordinance, following a historic hurricane, to require residences to be built at least two feet above the 500-year floodplain, was a regulatory taking under the State Constitution. Held that the amendment of the ordinance as an exercise of police power did not preclude regulatory takings claim; and the regulation could effect a regulatory “taking” under the State Constitution even if is intended to promote compliance with the federal flood-insurance program.