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Utah Housing Finance Agency v. Smart

561 P.2d 1052 (1977)

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Utah Housing Finance Agency v. Smart

Utah Supreme Court
561 P.2d 1052 (1977)

DD

Facts

The Utah legislature created the Utah Housing Finance Agency (the agency) (plaintiff). The agency was authorized to obtain funds by issuing bonds and notes and was required to use those funds to provide financing for low- and moderate-income housing. By requiring the agency to finance low- and moderate-income housing, the legislature sought to prevent the creation of blighted areas. Additionally, the legislature stated that debt incurred by the agency through the issuance of bonds and notes was payable only out of the agency’s funds. The legislature appropriated some funds to the agency to cover its initial expenses, but the state director of finance, Herbert Smart (defendant) refused to disburse the funds, contending that the creation of the agency was unconstitutional. Subsequently, the agency brought suit, requesting a declaratory judgment that the creation of the agency was constitutional. The trial court granted the agency’s request for a declaratory judgment. Smart appealed to the Utah Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Ellett, C.J.)

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Casebooks

Housing Law

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