State ex rel. Porterie v. Housing Authority of New Orleans

• Citation: 182 So. 725,190 La. 710
• Decision Date: 27 June 1938
• Docket Number: 34935
• Court: Supreme Court of Louisiana
• Parties: STATE ex rel. PORTERIE, Atty. Gen., v. HOUSING AUTHORITY OF NEW ORLEANS et al

182 So. 725

190 La. 710

STATE ex rel. PORTERIE, Atty. Gen., v. HOUSING AUTHORITY OF NEW ORLEANS et al

No. 34935

Supreme Court of Louisiana

June 27, 1938

Rehearing Denied July 8, 1938

Appeal from Civil District Court, Parish of Orleans; Walter L Gleason, Judge.

Proceeding by the State, on the relation of Gaston L. Porterie, Attorney General, State of Louisiana, against the Housing Authority of New Orleans and others to have it declared that Act No. 275 of 1936, known as the "Slum Clearance" or "Housing Authority" Act, is unconstitutional, and to enjoin the City and the Housing Authority from proceeding further with the project contemplated. From a judgment rejecting relator's demands and dismissing the suit, the relator appeals.

Affirmed.

Gaston L. Porterie, Atty. Gen., and James O'Connor, 1st Asst. Atty. Gen., for appellant.

William J. Guste, of New Orleans, for appellees Housing Authority of New Orleans and Commissioners of Housing Authority of New Orleans.

Henry B. Curtis, Asst. City Atty., of New Orleans, for appellees City of New Orleans and Mayor and Commissioners of City of New Orleans.

OPINION

ODOM, Justice.

The purpose of Act No. 275, page 697, of 1936, according to its title, is:

"To declare the necessity of creating public bodies corporate and politic to be known as housing authorities to engage in slum clearance and projects to provide dwelling accommodations for families of low income; to create such housing authorities in the cities having a population of more than 20,000; to define the powers and duties of housing authorities and to provide for the exercise of such powers, including acquiring property by purchase, gift or the exercise of the power of eminent domain, and including borrowing money, issuing bonds and other obligations, and giving security therefor; to confer remedies on obligees of housing authorities; to provide that housing authorities, their property and securities shall be tax exempt; to provide that the bonds of the authority shall be legal investments."

By section 4 of that act, the Legislature created in every city of the State having a population exceeding 20,000 inhabitants a public corporation or body politic to be known as "Housing Authority" of said city, to have boundaries coterminous with those of the city. It is provided, however, that such "Housing Authority" shall not transact any business or exercise such powers as are granted by the act until and unless the council of the city shall, by proper resolution, declare that there is need for such housing authority to function in said city.

This section of the act provides that, if a petition is filed, signed by twenty-five residents of the city, asserting that there is need for a housing authority and requesting that the council so declare, the council shall promptly determine whether there is need for such housing authority. It is further provided that the council shall adopt a resolution so declaring, if it shall find "(1) that unsanitary or unsafe inhabited dwelling accommodations exist in the city or (2) that there is a lack of safe or sanitary dwelling accommodations in the city available to families of low income at rentals they can afford".

It is further provided that in determining whether dwelling accommodations are unsafe or unsanitary "said council shall take into consideration the degree of overcrowding, the percentage of land covered, the light, air, space and access available to the inhabitants of such dwelling accommodations, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions exist in such buildings which endanger life or property by fire or other cause. When the council adopts a resolution as aforesaid, it shall promptly notify the Mayor of such adoption".

The Council of the City of New Orleans adopted a resolution declaring that there was need in the City for a housing authority to function therein, and notified the Mayor. Section 5 of the act provides that, upon receiving notice of the adoption of such resolution by the Council, the Mayor shall appoint five persons to serve as commissioners of said housing authority and file with the city clerk a certificate of such appointment. The power and the duties of the housing authority are vested in the commission thereof.

Section 8 of the act provides that an authority (which means a housing authority) "shall constitute a public body corporate and politic", and shall have all the powers necessary or convenient to carry out and effectuate the purpose and provisions of the act, including the following among others:

"(b) Within its area of operation: to prepare, carry out and operate housing projects; to provide for the construction, reconstruction, improvement, alteration or repair of any housing project or any part thereof; to take over by purchase, lease or otherwise any housing project undertaken by the city or by any municipality or government; and to act as agent for the city or any municipality or government in connection with the acquisition, construction, operation or management of a housing project or any part thereof. * * *

"(d) To lease or rent any dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in any housing project and to establish and revise the rents or charges therefor; to purchase, lease, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise any real or personal property or any interest therein from the city or any person, firm, corporation, municipality, or government; to acquire by the exercise of the power of eminent domain any real property; * * * to procure insurance or guarantees from the Federal Government of the payment of any debts or parts thereof (whether or not incurred by said authority) secured by mortgages on any property included in any of its housing projects; to invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement in property or securities in which savings banks may legally invest funds subject to their control; and to purchase its bonds at a price not more than the principal amount thereof and accrued interest, all bonds so purchased to be cancelled.

"(e) Within its area of operation; to investigate into living, dwelling and housing conditions and into the means and methods of improving such conditions; to determine where unsafe, or unsanitary dwelling or housing conditions exist; and to study and make recommendations concerning the plan of the city or any municipality or government in relation to the problem of clearing, replanning and reconstructing of areas in which unsafe or unsanitary dwelling or housing conditions exist, and the problem of providing dwelling accommodations for families of low income, and to co-operate with the city or any municipality or government in action taken in connection with these problems."

The Attorney General of the State, alleging that he was authorized under the terms and provisions of Section 56, Article 7, of the Constitution of Louisiana to institute andprosecute any or all suits or other proceedings as he may determine necessary for the assertion or the protection of the rights or interests of the State of Louisiana, brought the present suit, alleging that the Commissioners appointed by the Mayor of the City of New Orleans, pursuant to Act No. 275 of 1936, have organized themselves under the title of "Housing Authority of New Orleans", and, as such Housing Authority, have planned to, and are now planning to, construct within the City of New Orleans "a low-rent housing and slum clearance project" located within certain described boundaries within the City; that said Commissoners acting for the Housing Authority are threatening to acquire, both by purchase and by the exercise of the power of eminent domain, all the property within certain boundaries and "to demolish all structures thereon and to erect on said property certain structures for residential purpose which shall be leased at rentals sufficient merely to defray the maintenance and operating expenses and to discharge principal and interest on any obligations which may be incurred by said Housing Authority of New Orleans as a means of financing the acquisition of the necessary lands and the construction of dwelling units thereon."

It is further alleged that the estimated cost of said project is approximately $ 10,000,000; that, as a means of financing said project, the defendants "have entered into a contract with the United States Housing Authority (hereinafter sometimes referred to as U.S.H.A.), dated March 18, 1938, whereby the said U.S.H.A. has agreed to purchase bonds of the said Housing Authority of New Orleans in the sum of $ 8,411,000 to bear interest at the rate of 3% per annum, and to be payable serially over a period of years beginning with 1954 and ending in 1998, all as more fully appears by referring to a copy of said Loan Contract hereto annexed, and identified as 'Exhibit A'".

It is further alleged that the defendants have entered into an agreement with the City of New Orleans, represented by its Mayor and Council, "whereby the Housing Authority of New Orleans agrees to pay annually unto the City of New Orleans the sum of $ 16,000 over a period of 60 years in consideration of certain services to be rendered by the City of New Orleans and the further consideration of the City of New Orleans agreeing to relieve the Housing Authority of New Orleans and the said project from all liability for any fees, charges, or other assessments made or levied by said City for a period of sixty years".

It is further alleged that the Housing Authority through its Commissioners has entered into an agreement with the City of New Orleans ...