That's true. It is a minor point in the context of this discussion(he mispoke). The real scary situation is that the fifth interpretation has been changed somewhat by the activist Supreme court. I totally disagree with this evolutionary change/interpretation. Basically it is an end run around the fifth.
So if the neighborhood attempts to get the Municipality to 'Take' this multi-family' I doubt they will succeed. Here is why I say it will probably fail: They might try to make this property into a small park. Depending on the neighborhood this might work. It will take enormous amount of money. Legal Cost far exceeding any benefit to the SFR owners. They could attempt to use a Taking. Where your sister has a legitimate concern depends on the neighborhood individual income of the the neighborhood. If its very high and the social standing in that neighborhood is very connected politically. they could use Code Enforcement as a cudgel against the multi-family owner. So much so that he would sell. For the right money(to sell) or the threat of large cost to defend him/herself again could be sufficient motivation to sell. I know some wealthy people in my neighborhood who would not back down on principle.
So without knowing some major details I think your sister probably does not have anything to worry about.
Hope this makes sense.
Below is for reference only.
Q. Can eminent domain be used to take my property and give it to another private party?
A. The federal and state constitutions say that property may only be condemned for “public use.” For many years, “public use” meant that property could be taken for things like roads, schools, and public buildings. Later, courts allowed eminent domain to be used for private corporations developing public utilities, like electric companies and railroads. In the 1950’s, eminent domain became increasingly used for “slum clearance.” Once an area was declared to be a slum or “blighted,” property could be taken using eminent domain and then transferred to another private party. More recently, local governments have tried to use eminent domain to transfer land to other private parties. Whether and under what circumstances courts will allow this use of eminent domain is a matter of state law. Several states permit condemnations for economic development, but some do not. You should consult with an experienced eminent domain lawyer in your state to determine if the condemnation threatening your property is legal.
