Shotts v. Hugh, No. 49686
| Court | Supreme Court of Oklahoma |
| Writing for the Court | DOOLIN; WILLIAMS |
| Citation | 551 P.2d 252 |
| Parties | Ron SHOTTS, Petitioner, v. HUGH et al., Respondents. |
| Docket Number | No. 49686 |
| Decision Date | 04 June 1976 |
Page 252
v.
HUGH et al., Respondents.
Fagin, Brown, Bush, Selvidge & Tinney, Inc., Oklahoma City, for respondents.
Ron Shotts, Oklahoma City, for petitioner.
Page 253
DOOLIN, Justice.
This case presents important questions as to the proper functions of this state through public trusts formed by the authority of 60 O.S.1971 § 176 et seq, Trusts for Furtherance of Public Functions. § 176 Provides in pertinent part:
'(a) Express trusts may be created in real or personal property, or either or both, or in any estate or interest in either or both, with the state, or any county, municipality, political or governmental subdivision, or governmental agency of the state as the beneficiary thereof by the: (1) express approval of the Governor if the State of Oklahoma or any governmental agency thereof is the beneficiary; (2) express approval of two-thirds (2/3) of the membership of the governing body of the beneficiary if the county or a political or governmental subdivision thereof is the beneficiary; (3) express approval of two-thirds (2/3) of membership of the governing body of the beneficiary if a municipality or a governmental subdivision thereof is the beneficiary and The purpose thereof may be the furtherance, or the providing of funds for the furtherance, of any authorized or proper function of the said beneficiary. * * *' (Emphasis supplied).
This action involves the Oklahoma Housing Finance Agency (Agency) a public trust created May 1, 1975 and accepted by Governor David Boren on behalf of the State of Oklahoma as its beneficiary.
The broad purpose of the trust as enumerated in the Trust Indenture is to aid the state in providing adequate housing in accord with the needs of the people of Oklahoma and to eliminate the existence of a large number of sub-standard dwellings. More specifically the trust creates a Loans to Lenders Program (Program) which furnishes financing to selected lending institutions enabling such institutions to make available to the public lower cost new mortgage loans for the construction, acquisition, rehabilitation or improvement of residential housing. Program would be funded through the proceeds from the sale of revenue bonds in the amount of $28,825,000. 1
Agency, on March 1, 1976, gave notice it was accepting applications from lending institutions throughout the state to join in Program. Two savings and loans associations elected to accept and were approved.
The terms and conditions governing the use participating institutions may make of the proceeds of the revenue bonds as set forth in Agency's official statement are as follows:
Minimum Maximum Interest
Term
Purpose of Mortgage Loan (Years) Rate
------------------------ ------- ----
1. Acquisition of 1-to-4 family dwelling 15 2% above rate on the
Loan
2. Acquisition of multi-family dwelling 15 2.5% above rate on the
Loan
3. Rehabilitation or improvement of 1-to-4 5 no restriction
family dwelling or multi-family
dwelling
4. Construction of 1-to-4 family dwelling no restri- 4% above rate on the
ction Loan
or multi-family dwelling
Further, the loans must be on owner occupied dwellings within the state including condominiums and multi-family dwellings up to 35 units. The mortgage loans may be for new construction or rehabilitation and improvement of existing structures.
Page 254
Petitioner brings this original action as a resident and taxpayer of this state on behalf of himself and all other citizens of the State of Oklahoma to enjoin the issuance of the revenue bonds alleging the issuance of said bonds to be a violation of 60 O.S.1971 § 176.
In order for Program to be valid, it must meet the guidelines of § 176 restricting the purpose of a...
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John R. Grubb, Inc. v. Iowa Housing Finance Authority, No. 2-60119
...the Act promotes a private purpose, plaintiffs cite In re Advisory Opinion, 380 Mich. 554, 158 N.W.2d 416 (1968) and Shotts v. Hugh, 551 P.2d 252 (Okla.1976). The latter case involved the device of a statutory public trust "for furtherance of public functions." The trust there involved was ......
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Goodwin, Application of, No. 53417
...Atchison, T. & S. F. R. Co. v. Johnson, 85 Okl. 161, 204 P. 910 (1922); Baker v. Braden, 165 Okl. 12, 24 P.2d 293, 294 (1933). 11 Okl., 551 P.2d 252 12 60 O.S.Supp.1976 § 178.6. 13 Authority approved maximum income of $17,500 for low-to-moderate income persons participating under the progra......
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Fun Country Development Authority, Application of, No. 50942
...holding shall not be interpreted as a challenge to such previous opinions or orders of this court. We are not unmindful of Shotts v. Hugh, 551 P.2d 252 (Okl.1976) and Morrison v. Ardmore Industrial Development Corporation, 444 P.2d 816 (Okl.1968); but point out that in these cases a justici......
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John R. Grubb, Inc. v. Iowa Housing Finance Authority, No. 2-60119
...the Act promotes a private purpose, plaintiffs cite In re Advisory Opinion, 380 Mich. 554, 158 N.W.2d 416 (1968) and Shotts v. Hugh, 551 P.2d 252 (Okla.1976). The latter case involved the device of a statutory public trust "for furtherance of public functions." The trust there inv......
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Goodwin, Application of, No. 53417
...T. & S. F. R. Co. v. Johnson, 85 Okl. 161, 204 P. 910 (1922); Baker v. Braden, 165 Okl. 12, 24 P.2d 293, 294 (1933). 11 Okl., 551 P.2d 252 12 60 O.S.Supp.1976 § 178.6. 13 Authority approved maximum income of $17,500 for low-to-moderate income persons participating under the program. It ......
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Fun Country Development Authority, Application of, No. 50942
...holding shall not be interpreted as a challenge to such previous opinions or orders of this court. We are not unmindful of Shotts v. Hugh, 551 P.2d 252 (Okl.1976) and Morrison v. Ardmore Industrial Development Corporation, 444 P.2d 816 (Okl.1968); but point out that in these cases a justici......