Springfield Hous. Auth. v. Overaker

• Citation: 390 Ill. 403,61 N.E.2d 373
• Decision Date: 23 May 1945
• Docket Number: No. 28527.,28527.
• Parties: SPRINGFIELD HOUSING AUTHORITY v. OVERAKER, County Clerk, et al.
• Court: Illinois Supreme Court

390 Ill. 403

61 N.E.2d 373

SPRINGFIELD HOUSING AUTHORITY

v.OVERAKER, County Clerk, et al.

No. 28527.

Supreme Court of Illinois.

May 23, 1945.

Appeal from Circuit Court, Sangamon County; Lawrence E. Stone, judge.

Action by the Springfield Housing Authority against M. B. Overaker, County Clerk, and others to restrain defendants from attempting to collect any taxes against certain homes in a low-rent housing project. From a decree for plaintiff, the defendants prosecute a direct appeal; the revenue being involved.

Affirmed.

John W. Curren, State's Atty., and Thomas W. Hoopes, both of Springfield, for appellants.

Hugh J. Dobbs and Montgomery S. Winning, both of Springfield, for appellee.

WILSON, Justice.

The plaintiff, the Springfield Housing Authority, filed its amended complaint in the circuit court of Sangamon county against the defendants, M. B. Overaker, the county clerk and ex officio assessor of Capitol township, and John R. Jones, the county treasurer and ex officio collector for the township, to restrain them from extending, collecting, or attempting to collect any taxes levied against the John Hay Homes for the years 1943, 1944, and so long as they remain a low rent housing project under the Housing Authorities Act. Ill.Rev.Stat.1943, chap. 67 1/2, par. 1 et seq. Injunction is a proper remedy where a property owner alleges that a tax is levied upon property not subject to taxation. City of Mattoon v. Graham, 386 Ill. 180, 53 N.E.2d 955. Defendants interposed a motion to dismiss the complaint. Their motion was overruled, and a decree was entered finding that plaintiff is a municipal corporation and its property public grounds actually and exclusively used for public and municipal purposes; that it is a public charity and its property actually and exclusively used for charitable and governmental purposes, and not leased or otherwise used with a view to profit, and that it is an incorporated branch and division of the city of Springfield and, hence, an agency and instrumentality of the government of the city, rendering its property the property of the city. For these reasons, plaintiff's property was adjudged exempt from the assessment or payment of taxes, and defendants were restrained from extending any taxes for the year 1943 against the property designated as John Hay Homes, situated within the city of Springfield and, also, for the year 1944, or any subsequent year so long as the property shall be and remain a low rent housing project under the Housing Authorities Act. From this decree, the defendants prosecute a direct appeal, the revenue being involved.

From the pleadings it appears that in May, 1939, and continuing thereafter, plaintiff, organized and existing under the Housing Authorities Act, undertook the development of a low rent housing project known as John Hay Homes. In 1940, it acquired real estate which has been at all times since owned, occupied and used as a low rent housing project. At the time of acquisition, there were located on the premises 174 old, dilapidated shacks, unfit for human habitation, but, however, occupied by low income families as living quarters, many of these families being in indigent circumstances and supported by public charity. Upon the acquisition of the property, plaintiff caused the shacks to be torn down and 599 dwelling units, known as the John Hay Homes, were erected thereon. In addition, plaintiff has opened streets and alleys on the premises and has dedicated them to public use. It has constructed recreation centers, a public sewer system, a street lighting system, a water distribution system, a central heating plant and a transmission system for use in connection with the operation of the project. From a day prior to January 1, 1943, the premises, together with the improvements, have been used and occupied as a low rent housing project. Since the construction of the project, and because of the housing units provided thereby, plaintiff has caused not less than 222 shacks in Springfield, unfit for human habitation, to be torn down, in addition to the 174 which previously had been located on the premises. Plaintiff's intention is to cause the elimination of other housing units in the city until the total number of unfit housing units eliminated equals the number of units provided in the project. Throughout the entire period of its operation, plaintiff has operated the project in the manner directed by the Housing Authorities Act, and has provided decent, safe and sanitary housing facilities for low income families, at rentals commensurate with their incomes. As a result, the project produces insufficient income to pay the cost of its operation, except for contributions and grants made by the Federal government. Plaintiff alleges that the erection and operation of the homes have eliminated a slum area in Springfield and that, on the other hand, habitable living quarters have been furnished persons whose incomes were otherwise insufficient to provide quarters other than shacks unfit for human habitation and which were a fire hazard, and that the project has eliminated living conditions detrimental to the health of persons living in the slum area and to the general health of the community, and tending to produce immorality, and both adult and juvenile delinquency. These allegations are abundantly supported by affidavits attached to and made a part of the complaint.

Additional facts and circumstances merit mention. The plaintiff entered into an agreement with the city of Springfield by which it agreed to the payment of an annual service charge, based upon the aggregate shelter rents, for the services and facilities to be furnished the project in lieu of taxes, pursuant to section 29 of the Housing Authorities Act, Ill.Rev.Stat.1943, chap. 67 1/2, par. 27b, which provides for the payment of five per cent of the gross shelter rents in lieu of taxes, unless a different amount has been agreed upon between the housing authority and the city, village, incorporated town or county for which the housing authority was created. Supplementing section 29, section 5b of the Housing Cooperation Law, Ill.Rev.Stat.1943, chap. 67 1/2, par. 32b, provides that any city, village, incorporated town or county for which a housing authority has been created may enter into such agreements with its respective housing authority. The board of review of Sangamon county assessed plaintiff's real estate for the year 1943, although it had been omitted in 1940, 1941 and 1942, and had not been assessed by the assessor of Capitol township for 1943. For the year 1939, $4200 was paid as taxes and, for the year 1943, $5648.90 was tendered in lieu of taxes.

Section 3 of article IX of our constitution Smith-Hurd Stats. ordains: ‘The property of the state, counties, and other municipal corporations, both real and personal, and such other property as may be used exclusively for agricultural and horticultural societies, for school, religious, cemetery and charitable purposes, may be exempted from taxation; but such exemption shall be only by general law.’ Conformably to the authority granted, the General Assembly has exempted from taxation ‘all property of institutions of public charity, all property of beneficent and charitable organizations, * * * when such property is actually and exclusively used for such charitable or beneficent purposes, and not leased or otherwise used with a view of profit.’ Ill.Rev.Stat.1943, chap. 120, par. 500. Krause v. Peoria Housing Authority, 370 Ill. 356, 19 N.E.2d 193, holds that property of a housing authority, organized under the Housing Authorities Act, is entitled to a general exemption from taxation as a public charity under the quoted provisions of the seventh paragraph of section 19 of the ...