Alabama Attorney General Opinion 1979-0110

CHARLES A. A. GRADDICK ATTORNEY GENERAL THE ATTORNEY GENERAL STATE OF ALABAMA - MONTGOMERY. ALABAMA 3613 OD ) 10 jth MAR 27 1979 Honorable Joe W. Davis Mayor City of Huntsville Post Office Box 308 Huntsville, Alabama 35804 Municipalities - Huntsville, City of The Mayor, on behalf of the City of Huntsville, may exe- cute and carry out an "Agreement for Public Body Approval of Section 312 Rehabilitation Loans." Dear Mayor Davis: This office has received your opinion request asking whether the City of Huntsville has the legal authority to authorize, execute and carry out the contract which is set out in Resolution No. 78-433, a copy of which has been provided to this office. You ask that this office specifically address the authority of the City of Huntsville to make and carry out the "defend and hold harm- less" provisions of Section 5B of the contract. As you state in your request, this office in an Opinion to Hon. Joe Davis, Mayor of Huntsville under date of December 3, 1975 confirmed the authority of the City of Huntsville to use a portion of community development grant funds received by it to make grants, loans or loan guarantees to private persons, firms or corporations for the purpose of rehabilitation of private property. You do note, however, that the December 3 opinion did not specifically refer to Section 312 of the Housing Act of 1964. The contract now presented for review by this office is entitled "Agreement for Public Body Approval of Section 312 Rehabilitation Loans" and is signed by the Mayor of the City of Hon. Joe W. Davis Page Two 'AAR 27 1979 Huntsville as the authorized representative of the City of Huntsville and the authorized representative of the Director of the Community Planning Division of the Department of Housing and Urban Development. A careful review of the agreement reveals no provisions which would conflict with state law. More specifically, there appears to be no problem arising out of the "Defend and Hold Harmless" provision of Section 5B since this provision does nothing more than require the public body, (City of Huntsville) to assume liability for its own torts and contracts. It is, therefore, the opinion of this office that the City of Huntsville and its duly authorized agents acting in its behalf have the legal authority to authorize, execute and carry out the "Agreement for Public Body Approval of Section 312 Rehabilitation Loans" as found in Resolution No. 78-433 of the City of Huntsville. I do hope that this response fully answers your question. However, if this office may be of further assistance, please do not hesitate to call on us. Very truly yours, CHARLES A. GRADDICK Attorney General By-A (La anth CAROL JEAN SMITH Assistant Attorney General CJS/dwm