Alabama Attorney General Opinion 1979-0036

# THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 79-00036 CHARLES A. GRADDICK ATTORNEY GENERAL January 22, 1979 file # 32 Roger W. Kirby, Esquire City Attorney City of Gadsden P.O. Box 267 Gadsden, Alabama 35902 City of Gadsden may use Community Development Funds to establish rebate program for rehabilitation of private homes. Dear Mr. Kirby: Acknowledgement is made of your request for an opinion concerning the use of Community Development Block Grant Program funds by the City of Gadsden. You set out the following matter: Under the Community Development Block Grant Program of the Housing and Urban Development Department among the possible uses of funds are for "rehabilitation of buildings and im- provements (including interim assistance, and financing public or private acquisition for rehabilitation, and rehabilitation, of pri- vately owned properties)" and building code enforcement in deteriorated or deteriorating areas which with the public improvements and ser- vices the decline of the area may be arrested. See 42 U.S.C.S. Section 5304 (a) (3), (4); and 43 F. Reg. No. 41, Section 570.202, March 1, 1978. Upon that statutory basis the City of Gadsden proposes to establish a rebate program whereby the City housing personnel would inspect a house and advise the homeowner what improvements would qualify, the homeowner would have the work done and pay for it; then he would submit evidence of such payment to the City; and the City would use these funds to rebate up to 50% of the cost or a maximum of $3,000 per home. The City would do no work itself on the homes. Roger W. Kirby, Esquire January 22, 1979 Page 2 The question upon which we desire your opinion is whether such a program would violate Section 94 of the Alabama Constitution. It is the opinion of the Attorney General that the City of Gadsden may establish the rebate program set out in your letter under the Community Development Block Grant law and the rules and regulations set out by the federal department of Housing and Urban Development. The statute authorizing Community Development Block Grant funds found at U.S.C.S. and U.S.C.A. Title 42, Section 5304 (a) (3) and (4) and further regulations found at 43 Federal Register No. 41, Section 570.202, March 1, 1978, provide for the use of the funds for rehabilitation of private dwellings. This office has ruled in several opinions that the granting of Community Development funds to persons for rehabilitation of privately owned property does not violate Section 94 of the Constitution of Alabama 1901. Opinions to Honorable George C. Seibels, Jr., Mayor of the City of Birmingham, dated May 15, 1975 and Honorable Charles B. Paul of Geneva, dated November 24, 1975. As stated in the opinion to Mayor Seibels, the Supreme Court of Alabama in an Opinion of the Justices, 254 Ala. 343, 48 So. 2d 757 held that a statute authorizing the use of federal Community Development funds by a private enterprise or public agency did not violate Section 94 of the Constitution of Alabama 1901. The Attorney General went on to say that the Opinion of the Justices and the authorities stated therein would allow the City of Birmingham to use federal funds to make grants or loans to private persons. Therefore, the City of Gadsden may establish the Community Development Block Grant fund rebate described in your letter. If our office can be of further assistance, please do not hesitate to contact us. Very truly yours, CHARLES A. GRADDICK Attorney General By- Lynda F. Knight LYNDA F. KNIGHT Assistant Attorney General