**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

Eonorable **Jaok** .VJetdh County Attormy CaJneroncount ~rotkn6~1118,gema8 

## Dearsir:

fqa teQuest our **ty ‘** **owned br**  the 8ubjeotto 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 ee to make payments to the city or the county or lihtaxes 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 erceellhonorable 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 andvold*I also to be ,.consIdered in thle connection 1s Article XI, Section 9, Constltutlon 0r Texas, providing as follows:

“The property of oountles, cities andtowns, 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 nowexlrt1ng.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 ownedby the Brownavllle Eoualng Authority, oreeted thereunder, comes within the Intendment and purview of the foregoing oonstltutlonel provisions fixing limits upon thenpower of the Legislature to oreete eremptlone on property for taxation. Tothle 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 usedHonorable 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 andpolitlcn to be knownas 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 tlndlngeof aneed for betterhousing oondltlone. Under section 6of the Act the governing body of the Authority consists of flTeoommIseioners appointed by the nayor of such city, and the appointment, puellrIcatlone end tenure of said oonualeslonere are fixed by eeId eeotlon, including aprovision 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 6provides 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, exercisingpub110 end essential governmental functlone, and having all the powers necessary or ccnvenient to carry out and effectuate the purposes end provisions of this Act.” Amongthe powers granted is the -right to sue andbe sued, to have a seal, andthe right of perpetual sucoes6ion, to investigate into living, dw&llng, and houalng conditions, end the means andmethod6of improving the same, andto 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 propertyby the sxerolee of the power ofeminent domain. to invest the Sundeof the Authority, andto conduct exemlnetions and lnrestlgatlone, hear testimony andtake 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 enableit to fix the rentals for dntllIng aooommodatlons St the lowest possible rates coneiettnt wlth Its providing decent, safe, and sanitary dwelling aoco5S@ations, andthat 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 andmortgages securing
same. Section 20 provides that all reel property of an authorityhonorable Jack Vieich, pegs 4

shell be exempt from ls~y turdsale by virtue of en exscutlon,
or judgment lien, sxsspt as otherwise provided ln the act, end Section 21 empowers an authority “to borrow moneyor 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 Lawnand the public charaoter of the property o*lnedor held by an authority oreatsd thereunder, the Legloleture, in 

### SeOtlon2 of the **Act,** mskssthe 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 oondltionrow%e an lnorease lnendepread of disease end orbs end constitute anenaoe to the health, safety, morals, andwelrare 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 

### 0rsare **and** sanitary dwalllng aeeomaodatlons for **perrons** ot **low** fnoome are pub110 uses end purposes ior which pub110 moneymy be spent and prlvatopro r rtyacquired end ere governmental funetlons of tate oonthat it 18 in the public Interest that **work** z?%eh projectsbe commenaedes soon 88pooslbls ln order to relieve ~unemploymcntwhich nowoonstitutsr
an emergencyi andthe 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 arenot oonoln8lroon the eourte,but they **ar8** corteinly entitled **at** les@t **to** gr88t **lwrpmlat,** 8inoe they relate **to** pub110 oonditione ocncrrnln~which theLegislature,both br n%Oerelty end **duty,** must hare knom. Blook vs. Hipah, 256P. S. 135, 41 sup.Ct. 458, 68 L. !&d.565; PeopleVS. char108 Gchw8iulorOrors, 214bi.P. SQS, 108b;.i. 639; Kow **York** City iiou8ing

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

In doteroinlngwhat constitutea a publlo pulp088or u8e, iorwhich publlo

### ruadn MY be applied, 88 oontrcl-dl8tingui8hed fro% a prlratopurpoee, the **Court** of Clrll **Ap ala**  et 41~8.City orlay&r,lt al, 39 >. w. lowe: **(2dfii91,** *hitd%%l-

'tiedetemin&tion of whet aon8titut886 pub118 purpose irprlmrllr a leglrl8tl~ fumtloo, rubject **to rerier**  **by** the court8when **abuood,** and their **deter** uinaticn of thatmettor 8hould not be rerareod, *ereopt In inrtanoeswhere the legl8latlredsteruinatlon of the **qw8floa** I8palpably **end** aunlteet4 8rbltrar **end** lnoorr8at.' Keal V.Boog-y:oott (Tax. Clr. App.T a49 5. h. 689, 691;walkerV. 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; SteteV. Coruell, 53 S4‘qb.

556, 94H. d.89, SO L. 2. A. 515, 6&iur~. **at.** hp. 629. Jmd itthere **be** any doubt e8 'towhether thepurpo8e questionedbe a pub118u8e, the leglrlatire 6ekrmination tboroof 8houl.6 aontrol. Brtnm
.v.Gaftestor,,supra;AmarilloV. 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 juri84lotiondeter8Anfng 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 lrlauoimt evil. But irm! the t8rlou8 roetare ofthe **Z ‘** **WSB ‘** **HoUSI~C:** buth? orltlar Lar,*herelnabovoadterted to, includingthe oreatlonoi 8 body polltlrand **oorporete** to **sdmini8ter** the **Ad,** govomod **by** ocnmirrloner8 who 8mve rithoutpay,who am authorlsbedto 8oqulre, hold end 8ell realand perronal property, toplan, aonstrwt, rentor 18erohooriugprojeotr for the clearanceof rluu 8r8a8 and the **providing** or rare end sanitary housing aooommodatfcjn8for parsons or low lneoke, weelrlng thepow6r of OEiBOBtdomain to that and and authorized to **i8sue** bond8 in furtherance or **it8** oorporets purpoae8, and to hold it8properti88‘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, wewould 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 MIdo 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 andvalid exercise of the reeerPed police power of the State to proteat the health, safety andgeneral welfare or the publlo.

Upon this theory, ousing Authorities Lavrsof other states have been fully sustained aa the exerolae of a proper governmental run&Ion for a valid public purpose. NewYork City Housing Authority vs. Afuller, 270N. 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, 197S. 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 **liait** ing tex exemptions to auoh property. Moreover, the laaettwo 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 knownand 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 

### fromState. and aounty ad aafd ?iouainR Authorities Law”and oontrolpurpoees, =-entltl&l valorem taxes under llng constitutional provisions. - Yours very truly

**ATTORNEY** 0ENERk.L OFTEXAS

**BY**

APFROVEDm28, 1940