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VILLAGE OF DUPO v. ST. CLAIR COUNTY HOUSING AUTH.

April 5, 1966

VILLAGE OF DUPO, A MUNICIPAL CORPORATION OF THE STATE OF ILLINOIS, PLAINTIFF,
v.
ST. CLAIR COUNTY HOUSING AUTHORITY, A MUNICIPAL CORPORATION OF THE STATE OF ILLINOIS, AND PUBLIC HOUSING ADMINISTRATION, AN AGENCY OF THE UNITED STATES OF AMERICA, DEFENDANTS.



The opinion of the court was delivered by: Juergens, Chief Judge.

The Village of Dupo, a municipal corporation of the State of Illinois, filed its complaint for injunction, asking that the St. Clair County Housing Authority, a municipal corporation of the State of Illinois, and the Public Housing Administration, an agency of the United States of America, be enjoined from doing any further acts for the purpose of locating and constructing a low rent housing project in the Village of Dupo.

The cause was originally filed in the Circuit Court of St. Clair County and subsequently removed to this Court.

Both defendants have filed motion for summary judgment dismissing the complaint. These motions are for consideration.

The St. Clair County Housing Authority is a municipal corporation created for the purpose of constructing and operating low rent housing projects within its area of operation. Village of Dupo is a municipal corporation of the State of Illinois and as such is authorized to cooperate with the Housing Authority in the development, construction and operation of low rent housing projects. The Village of Dupo is within the area of operation of the St. Clair County Housing Authority. Defendant Public Housing Administration is charged with the administration of the low rent housing program established by the United States Housing Act of 1937, as amended.

It is the function of the Public Housing Authority to extend federal financial assistance to the local authorities, first by granting loans in accordance with a contract called a Preliminary Loan Contract and then by granting loans and making annual subsidies pursuant to a contract called an Annual Contributions Contract. The purpose of the work to be performed under a Preliminary Loan Contract consists of surveys and planning, architectural services and other matters of a preconstruction nature.

Before the Public Housing Administration may extend federal financial assistance to a local authority, the Act requires that certain determinations be made by local authorities and approval of the application of the local agency for preliminary loan together with other assurances.

Title 42 U.S.C.A. § 1415(7) provides in pertinent parts as follows:

    "(7) In recognition that there should be local
  determination of the need for low-rent housing to
  meet needs not being adequately met by private
  enterprise —
      "(a) The Administration shall not make any
    contract with a public housing agency for
    preliminary loans * * *, (i) unless the governing
    body of the locality involved has by resolution
    approved the application of the public housing
    agency for such preliminary loan; * *
      "(b) The Administration shall not make any
    contract for loans (other than preliminary loans)
    or for annual contributions pursuant to this
    chapter with respect to any low-rent housing
    project * * *, (i) unless the governing body of
    the locality involved has entered into an agreement
    with the public housing agency providing for the
    local cooperation required by the Administration
    pursuant to this chapter; * * *"
  Attached as Exhibit "1" to answer and counterclaim of defendant Public Housing Administration is an extract from the minutes of a regular meeting of the members of the Board of Trustees of the Village of Dupo, Illinois, held on March 5, 1962, showing the adoption of a resolution approving application for preliminary loan for low rent public housing, which is accompanied by a certificate of the Village Clerk as to the truth and correctness of the resolution and the action of the Village Board.

Exhibit "2" to the same answer and counterclaim is a copy of the resolution authorizing the execution of the Cooperation Agreement between the St. Clair County Housing Authority and the Village of Dupo, Illinois, together with the Village Clerk's Certificate of correctness and extract from the minutes of the meeting of the Board of Trustees of the Village of Dupo, showing the adoption of the resolution by the Village Board.

Attached as Exhibit A of plaintiff's memorandum in opposition to defendants' motions appears a certified copy of the minutes of the Board of Trustees of the Village of Dupo held on the 5th day of March, 1962, as taken from the minute book for the meeting of the president and members of the Board of Trustees of the Village of Dupo. These minutes disclose that a resolution authorizing the execution of the Cooperation Agreement between the St. Clair County Housing Authority and the Village of Dupo, Illinois was passed. The minutes do not however disclose that there was passed at that meeting a resolution approving application for preliminary loan for low rent public housing. An affidavit that the resolution approving application for preliminary loan for low rent public housing was not passed by the president and members of the Board of Trustees of the Village of Dupo is attached as Exhibit B to plaintiff's memorandum in opposition to defendants' motions.

On March 17, 1964, prior to filing this suit, the Board of Trustees of the Village of Dupo, Illinois, passed a resolution whereby it purported to terminate and suspend any and all housing projects theretofore commenced or to be commenced in the Village of Dupo by the St. Clair County Housing Authority. Notice of ...


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