OFFICIAL OPINION No. 14

OFFICIAL OPINION No. 14 D epartment of Community Affairs-B ucks County H ousing D evelopment Cor· poration- Use of State Housing Assistance funds under Contract H-91 to pay for legal fees, including cost of litigati on, if necessar y, is lawful. 1. Under Section 4 (d) of the Housing and Redevelopment Assistance Law of May 20, 1949, P.L. 1633, as amended, (35 P.S. §1664(d)), Contract H-91 funds may be used by the Bucks County Housing Development Corpor· ation for the payment of legal fees including the cost of litigation, should it be necessary, to react in court to the repeal of the zoning ordinance which is necessary for the proposed project qualifying for Federal funds. Honorable William H. Wilcox Secretary Department of Community Affairs Harrisburg, Pennsylvania Dear Secretary Wilcox : Harrisburg, Pa. Febuary 9, 1973 In reply to your memorandum of December 14, 1972, asking whether it would be lawful for the Bucks County Housing De- velopment Corporation to use State Housing Assistance funds under Contract H-91 to pay for legal fees "including the cost of litigation, should it become necessary for us to react in court to the repeal of the zoning ordinance .... , " you are informed that such use of those funds would be lawful. Funds under the above contract were provided in accordance with Section 4 ( d) of the Housing and Redevelopment Assistance Law of Mav 20, 1949, P. L. 1633, as amended (35 P .S. §1664(d)) which provides: "The Department is hereby authorized within the lim- itations hereinafter provided, . . . ( d) to make capital OPINIONS OF THE ATTORNEY GENERAL grants to governmental agencies or authorities, or non- profit corporations for the purpose of providing funds, which would be otherwise unavailable to initiate, apply for, administer, and execute housing projects financed under any Federal housing program .... " (Emphasis added.) 33 The above-quoted section is commonly referred to as providing "seed money" for Federal housing projects. In light of the use of the word "execute" by the Legislature; in light of the clear pur- pose of Section ( d) to provide funds necessary in order to pre- pare a project and make it eligible for Federal funds; in light of the fact that obtaining the necessary zoning for the proposed project in question is crucial to the qualification of that project for Federal funds, you are informed that Contract H-91 funds may be used by the Bucks County Housing Development Cor- poration for the payment of legal fees as described above. Sincerely yours, MARK p WIDOFF Deput11 Attorney General ISRAEL P ACKEL Attorney General