This claim is exaggerated/misleading. The news article provided, from Reason Magazine, discusses how the government buys and "seizes" homes in flood-prone areas. The context behind this claim is related to property damage caused by natural disasters, particularly hurricanes/flooding, and how the government responds with specific attention to private property and property damage. Specific attention the the mandatory portion actually stems from a specific case from Harris County in Texas. This can be seen here:
https://www.hud.gov/press/press_releases_media_advisories/hud_no_24_217 from the direct source from the Department of Housing and Urban Development press release. This original discussion in Reason Magazine does provide a lot of information that is accurate and relevant to the overall case, but the specific claim of the government seizing property is misleading from this specific instance where we can see more information directly to the relevant case. The original claim then has a lot of context missing so that's where this exaggeration/misleading occurs.
