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The family of a longtime Washington, D.C., homeowner is suing the district in a case that challenges the constitutionality of its tax foreclosure process.
The lawsuit — filed by the Pacific Legal Foundation on behalf of the Powell family — targets the District’s handling of a property that has belonged to them for decades.
Plaintiffs allege that D.C.’s tax system violated their constitutional rights by allowing hundreds of thousands of dollars in penalties, interest and fees to accrue on a property that originally owed just $41,000 in taxes.
At the center of the case is the home where Gaston and Mattie Powell raised 11 children and created what their relatives describe as a generational legacy.
After both parents died — Mattie in 1995 and Gaston Sr. in 2000 — the family home was maintained by their son Albert Powell until his death in 2020.
Following Albert’s death, attorneys say the District classified the home as “vacant,” triggering a sharp increase in annual property taxes under its vacant and blighted tax code — from $5,000 a year to $30,000.
Attempted foreclosure
When the family fell behind on payments, D.C. sold the tax debt in 2023 to a private investment firm; Clear Sky Holdings, according to the Pacific Legal Foundation.
That sale, and the District’s subsequent reclassification of the home as “blighted,” sent the family’s debt soaring.
The outstanding balance ballooned to more than $231,000 due to mounting interest, penalties and fees. In 2024, Clear Sky moved to foreclose on the property and eliminate the family’s right to reclaim it, attorneys said.
According to the lawsuit, the Powell family stands to lose a home now valued at more than $713,000 — and receive nothing in return.
“The District’s actions could strip the family of their home and every dollar of equity they have in it — an outcome the Supreme Court has already deemed unconstitutional. The U.S. Constitution protects against this overreach,” said Christina Martin, senior attorney at Pacific Legal Foundation. “The Takings Clause stops the government from taking more than what is owed without just compensation. And the Excessive Fines Clause prevents punishment that far outweighs the offense. D..C is violating both.”
The Powell family says they were never given a fair opportunity to recover the property. When they received notice in 2023 that “the property has been sold,” they believed the home was already lost.
They did not challenge the blighted classification that came later, assuming the legal battle was already over.
Legal precedent
Legal action comes in the wake of the U.S. Supreme Court’s 2023 decision in Tyler v. Hennepin County, which ruled that local governments cannot keep surplus value from seized properties after tax debts are paid.
That ruling led to thousands of Minnesota residents who lost homes over property taxes possibly being eligible for compensation from a $109 million class-action settlement fund.
Tyler v. Hennepin — also brought by the Pacific Legal Foundation — set a precedent the Powell family is now invoking.
In Washington, the vacant and blighted property tax classification allows the District to charge rates as high as $10 per $100 of assessed value.
While the District provides a six-month window for homeowners to redeem their properties after a tax sale, the Powells argue that redemption becomes impossible once fees and interest push the debt far beyond the home’s original tax liability.
“No property owner should lose the right to their wealth over minor violations or unpaid taxes,” Pacific Legal Foundation stated in its announcement of the suit. “The Powell family deserves to keep the value of their home — not watch the government steal it through excessive penalties and an unfair system.”
The D.C. Office of Tax and Revenue did not immediately respond to a request for comment.
