January 29, 1975
Gene Paul Kean
State's Attorney, Minnehaha County
Minnehaha County Courthouse
Sioux Falls, South Dakota 57102
OFFICIAL OPINION NO. 75-12
Municipal Housing Commission loan authority
Dear Mr. Kean:
You have requested an official opinion on the question of whether the Sioux Falls Housing and Redevelopment Commission has the authority to make certain loans for home improvement purposes.
The loans would be for the rehabilitation of dwelling units in specified areas of the city, in order to prevent the spread of blight. The lending rates would be well below current market rates.
The question is whether the powers given the Commission by SDCL 11-7 include the power to make loans for the improvement of privately-owned housing units.
There is no specific grant of such power. Indeed, it is noteworthy that after the general powers section, there are some 15 sections, each of which grants a specific power to the Commission. SDCL 11-7-21 through 41. None of these gives the Commission the authority to make loans, although it is empowered to borrow money, SDCL 11-7-28, and to invest reserves and sinking funds, SDCL 11-7-31. In light of this long and specific enumeration of powers, no other powers should be implied. See, Sutherland, Statutory Construction, § 47.23.
This section of this chapter which gives the Commission its general power states that it "shall have all the powers necessary or convenient to carry out the purpose of this chapter. . ." SDCL 11-7-17. However, there is no specific statement of the purpose of the chapter anywhere in SDCL 11-7.
Therefore, it is necessary to examine the chapter as a whole to ascertain its purposes. The chapter defines the terms "housing project" and "redevelopment project." SDCL 11-7-4 and 5. "Project" is defined as either of these two. SDCL 11-7-1 (10).
Aside from undertaking these two types of projects, no substantive activities are authorized for the Commission. There is no section which confers general authority to engage in other ventures designed to improve the quality of housing. The powers given appear to be intended to enable the Commission to undertake housing and redevelopment projects. For instance, it has the power to lease or rent accommodations "embraced in any project." SDCL 11-7-36. Instead of the power to make improvements or help repair housing in general, the Commission is authorized to improve or repair "any project or part thereof." SDCL 11-7-21.
In conclusion, the answer to your question must be in the negative-the Commission does not have the power to make loans to improve private homes. The purpose of the Commission and of Chapter 11-7 is to establish housing and redevelopment projects, and not to improve housing generally. These projects involve clearing slum or blighted areas and providing housing for persons of low income. The loans for home improvement do not fall within the definition of a housing or redevelopment project, and such a program is not otherwise provided for by Chapter 11-7. Further, the Commission is not given the power to loan money, and it is not given the power to improve or repair dwellings except those which are in a project.
For these reasons, the proposed home improvement loan program is outside the scope of authority granted a municipal housing and redevelopment commission by South Dakota law.
Respectfully submitted,
WILLIAM J. JANKLOW
ATTORNEY GENERAL
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