OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Eonorable Jaok .VJetdh 

County Attormy 

CaJneron count 

~rotkn6~1118, g ema8 

Dear sir: 

fqa teQuest our 

ty ‘owned br the 

8ubjeot to State and 

able en& appreoiat 

on therewith submit an 

d being Article 1269k 

cited Act creates or purports 

one from taxation: 

an authority 18 deolared to be 

6 for essential pub110 an6 governsuch property end en authority 

from all tares and epeoial assesemente 

e oounty, the State or any politioal eubdlvleion thereofi provided, however, that in lieu of 

au 

ag li ee to make payments to the city or the county or 

h taxes or speoial aseeaementa, an authority may 

any such polltloal subdivielon for Improvementa, eervluea, and raollltlee furnished by suoh olty, oounty, 

or political eubdivlaion for the benefit of e housing 

project, but in no event shall such payment6 erceell 
honorable Jack ?!elch, page 2 

the estimated cost to such city, 

subdlvlelon of the improvements, 

ties to be 80 rurnlehed.~ 

The foregoing exemption is so 

county, or polltIoel 

services, or faclllplain and unambiguous as 

. _ to remove the Instant question from tne recognized rule of 

statutory construction that tax exemptlon statutes are oonstrued most strongly against exemptions. The Intention of the 

Legleleture to create euch exemption Is too plain for argument, 

and the sole issue Involved in your lnqulry la whether or not 

tax-exemption statute is oonstltotIonnl under that portion of 

,,Artlcle VIII, Section 2, Constitution of Texas, empowering the 

-Legislature, by general laws, to exempt from taxation “public 

property used for public purposes . . .v and property held by 

“lnstltutlons of purely public oherlty,” and further providing 

that “all laws exempting property from taxation other than the 

property above mentioned shall be null and vold*I also to be 

,.consIdered in thle connection 1s Article XI, Section 9, Constltutlon 0r Texas, providing as follows: 

“The property of oountles, cities and towns, owned 

end held only for pub110 purposes, such as public 

buildings and the sites therefor. Fire engines and the 

furniture thereof, and all property used, or intended 

for extinguishing fires, public grounds and all other 

property devoted exclusively to the use and benefit 

of the public shall be exempt from forced sel3-and irom 

taxation, provided, nothing herein shell prevent the 

enforcement oP the vendors lien, the meohanlos or 

builders lien, or other liens now exlrt1ng.e 

In determining the constitutionality of, Section 22 of 

the above cited “Housing Authorltlee Law,” it first becomes 

necessary to aetemne the nature end scope of thIe measure 

with referenoe to whether the property owned by the Brownavllle 

Eoualng Authority, oreeted thereunder, comes within the Intendment and purview of the foregoing oonstltutlonel provisions 

fixing limits upon then power of the Legislature to oreete eremptlone on property for taxation. To thle end, w do not purpose 

to outline the administrative details provided by the ‘Eouelng 

Authorities Law,’ but. rather to point only to the portlone 

thereof as tend to give the Brownsville Housing Authority, created 

there der, the statue and oharaoter of an agency or lnstrumentallty 3 f the State of Texas, oreated for a public purpose, and 

to stamp the property owned thereby es “public property used 
Honorable Jack Welch, page 3 

for public purposes ,* within the meaning of the above oonstltutlonal provision. 

Section 4 of the Housing Authorities lav creates in each 

city of the State a “public body corporate and politlcn to be 

known as the “Housing Authority” of the city, to be celled into 

active existence for traneeotlng business under said law by 

proper resolution of the governing body of said cLty, baaed upon 

certain tlndlnge of a need for better housing oondltlone. Under 

section 6 of the Act the governing body of the Authority consists of flTe oommIseioners appointed by the nayor of such city, 

and the appointment, puellrIcatlone end tenure of said oonualeslonere are fixed by eeId eeotlon, including a provision that 

no COE~SaiOntr shall receive oompen8atlon for his services but 

shall only be entitled to necessary traveling expenses, incurred 

in the discharge of his duties. Section 6 provides that no 

comm.issIontr or smployee of an Authority shall acquire any 

interest direct or indlreot In any housing project or in any 

contract ior materials or services in ocmectlon therewith, 

and isctlon 8, in enumerating the statutory pavers end duties 

of the Authority, deolarte that “an Authority shell constitute 

a pub110 body corporate end polltlo, exercising pub110 end 

essential governmental functlone, and having all the powers necessary or ccnvenient to carry out and effectuate the purposes 

end provisions of this Act.” Among the powers granted is the 

-right to sue and be sued, to have a seal, and the right of perpetual sucoes6ion, to investigate into living, dw&llng, and 

houalng conditions, end the means and method6 of improving the 

same, and to enter into any and all necessary aontracts ror this 

purpose, to lease or rent any dwelllnge, houses, eto., embraced 

in any housing project, tid to own, hold or improve real end 

personal property, to eoqulro real property by the sxerolee of 

the power of eminent domain. to invest the Sunde of the Authority, and to conduct exemlnetions and lnrestlgatlone, hear testimony and take proof on any matter material to the work of 

the Authority. Section 9 of the Act declares It to be the 

Wpolloy of this State that each housing authority shall menage 

and operate it8 housing projeote In en tffloient smmbr 80 8s 

to enable it to fix the rentals for dntllIng aooommodatlons St 

the lowest possible rates coneiettnt wlth Its providing decent, 

safe, and sanitary dwelling aoco5S@ations, and that no EoUSiX@ 

Authority shall construct’ or operate eny szch projeot for profit, 05 the source of rcvenae tB the city. 

Se&Ion8 14, 16 end 16 of the.Aot provide reeptotively 

for the Iasuence of bonde’by .en authority for eny of it6 corpotate purposes, the form end condition8 of sale of such bonds, 

and the provisions of the truet indentures and mortgages securing 

same. Section 20 provides that all reel property of an authority 
honorable Jack Vieich, pegs 4 

shell be exempt from ls~y turd sale by virtue of en exscutlon, 

or judgment lien, sxsspt as otherwise provided ln the act, end 

Section 21 empowers an authority “to borrow money or aoospt 

grants or other finenrlel assistance from tpe Sadera Government .a 

Aa further lndloetlrs of the public purpxe to be served 

by the nBonslng Authorities Lawn and the public charaoter of 

the property o*lned or held by an authority oreatsd thereunder, 

the Legloleture, in SeOtlon 2 of the Act, mskss the following 

declaration or fact-finding: 

wSeC.’ ‘2. St’ls hereby dealared: (a) that there 

exist in the State insanitary or unsafe dwelling 

accommodations and that persons of low lnoome are 

forced to reside in such Insanitary or unsare eccommodetione; that viithln the State there is e shortage 

of safe or sanitary dwelling eooommodatione avallable et rents which person6 of low Income oan arrord 

and that suoh persons are forced to ,ocoupy ovsrorowdsd and oongested dwelling acoommodations; that the 

aforeseld oondltionr ow%e an lnorease ln end epread 

of disease end orbs end constitute a nenaoe to the 

health, safety, morals, and welrare of the residents 

of the 3tete and lupalr eoonomlc values; that these 

ocndltlons neoessitate excessive and disproportionate 

expenditures of public funds for crine prevention 

and punishment, public heelth end sarsty’, rlrT‘s.nd 

aooident proteotlon, end other public srrvlcee end 

racllltiea; (b) that these slum arees sennot be 

olearrd, nor oan’the shortago or safe an& renitary 

dwellings ror perrons of low lnoome be rrllsrsd, 

through the opention of private anterprlrr, end 

thet the construotion 0r housing projeatr ror peraons or lor income (as herein dqrlned) would therefore not bs oompetltirs with private enterprise; 

(0) that the clearanae, rsplannlng, apd rsoonrtruotlon 0r the ersas Inwhich insanitary or.unsai* 

housing oondltions~exlst end thr providing 0r sare 

and sanitary dwalllng aeeomaodatlons for perrons ot 

low fnoome are pub110 uses end purposes ior which 

pub110 money my be spent and prlvato pro 

r 

rty acquired end ere governmental funetlons of tate oonthat it 18 in the public Interest that work 

z?%eh projectsbe commenaed es soon 88 pooslbls 

ln order to relieve ~unemploymcnt which now oonstitutsr 

an emergencyi and the nooesslty in the pu,blio interest 

for the provisions hereinafter enaottd; la hereby 

declared 8s~ a metter of legislative detewlnatlon.” 
Eenoreble Jack ‘hi&, pegs 5 

It 18 true th8t logl818tlte flndlngs and detotination 

of pub118 ama are not oonoln8lro on the eourte, but they ar8 

corteinly entitled at les@t to gr88t lwrpmlat, 8inoe they relate 

to pub110 oonditione ocncrrnln~ which the Legislature, both br 

n%Oerelty end duty, must hare knom. Blook vs. Hipah, 256 P. S. 

135, 41 sup. Ct. 458, 68 L. !&d. 565; People VS. char108 

Gchw8iulor Orors, 214 bi. P. SQS, 108 b;. i. 639; Kow York City 

iiou8ing Authority ~8. bullor, 290 8. Y. SW, 1 N. 2. (2d) 15s. 

In doteroinlng what constitutea a publlo pulp088 or u8e, 

ior which publlo ruadn MY be applied, 88 oontrcl-dl8tingui8hed 

fro% a prlrato purpoee, the Court of Clrll Ap ala 

et 4 1 ~8. City or la y& r , l t al, 39 >. w. 

lowe: 

(2dfii91, *hitd%%l- 

'tie detemin&tion of whet aon8titut88 6 pub118 

purpose ir prlmrllr a leglrl8tl~ fumtloo, rubject 

to rerier by the court8 when abuood, and their deteruinaticn of that mettor 8hould not be rerareod, *ereopt In inrtanoes where the legl8latlre dsteruinatlon 

of the qw8floa I8 palpably end aunlteet4 8rbltrar 

end lnoorr8at.' Keal V. Boog-y:oott (Tax. Clr. App. T 

a49 5. h. 689, 691; walker V. City of Cinolnoatl, 21 

ohlo St. 14, 8 kc. ?.ep. i!r: Brcdhoad v. City ot rib 

waakee , 19 Ha. 624, @5 Am. Dec. Yll; Stete V. Coruell, 

53 S4‘qb. 556, 94 H. d. 89, SO L. 2. A. 515, 6&iur~. 

at. hp. 629. Jmd it there be any doubt e8 'to whether 

the purpo8e questioned be a pub118 u8e, the leglrlatire 6ekrmination tboroof 8houl.6 aontrol. Brtnm 

.v. Gaftestor,, supra; Amarillo V. Tutor, suprs~ Stet8 

t. Cornell, 8upra; tiormn v. Ky. Board of z&II., OS 

iiy. 5s9, 20 s. k. 901, 18 L. 8. A. Mb." 

Tbhrre an co aames in thl8 juri84lotion deter8Anfng the 

eonrtitutionallty er the Vourfng hthoritias Law,* QP the tax 

exemption fwtare thereof, bsosuaa gOv8~8Btal bowing project8 

OOn6titUti a compar~tlt*lp B8W M8B8 of re8MYlng l rl auoimt 

evil. But irm! the t8rlou8 roetare of the Z‘WSB ‘HoUSI~C: buth? 

orltlar Lar,* herelnabovo adterted to, including the oreatlon oi 

8 body polltlr and oorporete to sdmini8ter the Ad, govomod by 

ocnmirrloner8 who 8mve rithout pay, who am authorlsbed to 

8oqulre, hold end 8ell real and perronal property, to plan, 

aonstrwt, rent or 18ero hooriug projeotr for the clearance of 

rluu 8r8a8 and the providing or rare end sanitary housing aooommodatfcjn8 for parsons or low lneoke, weelrlng the pow6r of 

OEiBOBt domain to that and and authorized to i8sue bond8 in furtherance or it8 oorporets purpoae8, and to hold it8 properti88 
‘Honorable Jack Welch, page 6 

free from liens, execution, and taxation, certainly leaves no 

room to doubt that the ieglelatura of Texas has deolared ana 

committed lteelr to the propoaition that the purpose8 to be 

6e~ed by thl8 riot aro pub110 and governmental, and the property 

acquired, owned, held and used by the housing authorities 

created under the Act is public property used ror public purposes. Not only did the Legielature expressly 80 deolare, but 

theae enumerated attributes or features ot the Act are all, to 

our mind, lndiola 6t thlr pub110 and governmental purpose. 

Therefore, we would not ‘feel cowtralned, even ln the absenoe 

of authoritlea from other jurisdlotlona, to disturb this leglelatire dsolaratlon and fact-finding. ae take this poaltion 

bsoanse MI do not think it oan be controverted that legislation, 

suoh aa under oonslderatlon here, designed to alleviate the 

conditions of diseaee, inmorality and crime incident to orovided, 

unsafe and msanltary houeing conditIona, ie a proper and valid 

exercise of the reeerPed police power of the State to proteat 

the health, safety and general welfare or the publlo. 

Upon this theory, ousing Authorities Lavrs of other states 

have been fully sustained aa the exerolae of a proper governmental 

run&Ion for a valid public purpose. New York City Housing 

Authority vs. Afuller, 270 N. Y. 333, 1 N. z. (26) 163; bioh’ulty 

vs. Ovzena, 199 S. h. 425; tie118 VS. IJouslng Authority or City or 

‘iiilmington, et al, 197 S. L. 693. These casea turned upon constitutlonal and statutory provisiona, substantially identical to 

those involved here, and, although persuasive only,Je aeern 

such authorities controlling, in principle, upon the instant 

question of whether or not property held by the Brownsvillr 

i?ouslng Authority is *publlo property used for publia purposes* 

within the meaning of pertinent aonstltutional proriaiona liaiting tex exemptions to auoh property. Moreover, the laaet two 

case8 oited above are more dlreotly in point, in that the Question wae raised and determined regarding the validity and aonetitutlonality of the tax-exemption feature of the act6 under 

consideration, and the oourt, in aaah ease, held that property 

to be used In carrying out’6 alum olearanoe and low-oost housing 

projeot was municipal property within the Constltutlon and alEo 

was property ured exclwirely for publio purposes wlthfn the 

constitution, so as to be exempt from taxation. 

in our oplnlon, GeHdon 22 of Article lE6Qk, Vernon*e 

Annotated Civil Statute&, commonly known and citdd aa the *&u8lng 

.iiuthorit$es I.Rw* is a constitutional exemption rrom taxatlon, and 

property oxned by the Housing Authority of Brownsville, Texas, 
. 

lionorable Jaok ireioh., page 7 

duly oreated under eaid act as a pub110 body corporate and 

politlo, 

--under its 

and an agenoy or lnetrumentallty of the State or yexae, 

police Dow@r,.lr) "public property used ior pub110 

to exemption from State. and aounty ad 

aafd ?iouainR Authorities Law” and oontrolpurpoees, =- entltl&l 

valorem taxes under 

llng constitutional provisions. - 

Yours very truly 

ATTORNEY 0ENERk.L OF TEXAS 

BY 

APFROVEDm 28, 1940