Diehl v. O'Dwyer

193 Misc. 1032, 84 N.Y.S.2d 109, 1948 N.Y. Misc. LEXIS 3514
CourtNew York Supreme Court
DecidedNovember 22, 1948
StatusPublished

This text of 193 Misc. 1032 (Diehl v. O'Dwyer) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diehl v. O'Dwyer, 193 Misc. 1032, 84 N.Y.S.2d 109, 1948 N.Y. Misc. LEXIS 3514 (N.Y. Super. Ct. 1948).

Opinion

Hofstadter, J.

In this taxpayer’s action the plaintiff seeks injunctive relief and a declaratory judgment. The litigation presents the important question whether the City of New York may charge against the additional 2% debt limit for low rent housing and incidental facilities permitted by article XVIII of the State Constitution indebtedness incurred by it to acquire sites and to construct public schools thereon and to modernize public schools, which serve the residents of housing projects.

In 1938, by vote of the people, article XVIII of the Constitution was adopted. So far as here material, the article provides as follows:

" [Housing for personé of low income; slum clearance.] Section 1. Subject to the provisions of this article, the legislature may provide in such manner, by such means and upon such terms and conditions as it may prescribe for low rent housing for persons of low income as defined by law, or for the clearance, replanning, reconstruction and rehabilitation of substandard and insanitary areas, or for both such purposes, and for recreational and other facilities incidental or appurtenant thereto.”
[Powers of cities, towns and villages to contract indebtedness in aid of low rent housing and slum clearance projects; restrictions thereon.] § 4. To effectuate any of the purposes of this article, the legislature may authorize any city, town or village to contract indebtedness to an amount which shall not exceed two per centum of the average assessed valuation of the [1034]*1034real estate of such city, town or village subject to taxation, as determined by the last completed assessment roll and the four preceding assessment rolls of such city, town or village, for city, town or village taxes prior to the contracting of such indebtedness. * * * Indebtedness contracted pursuant to this article shall be excluded in ascertaining the power of a city otherwise to create indebtedness under any other section of this constitution.”

To implement article XVIII of the Constitution the Legislature in 1939 (L. 1939, ch. 808) enacted the Public Housing Law. Subdivision 13 of section 3 of this law thus defines a plan: “ * * * a plan or undertaking for the clearance, replanning and reconstruction or rehabilitation of a substandard and insanitary area or areas and for recreational and' other facilities incidental or appurtenant thereto to effectuate the purposes of article eighteen of the constitution or any other provision of the constitution delegating any similar power or providing homes for persons of low income.”

By subdivision 14 of the same section a project is defined as: “ * * * a specific work or improvement to effectuate all or any part of a plan. The term shall include the lands, buildings and improvements acquired, owned, constructed, managed or operated hereunder, to provide dwelling accommodations for persons of low income, and such stores, office and other non-housing facilities as well as social, recreational or communal facilities, as may be deemed by the authority or municipality to be incidental or appurtenant to a project.”

It becomes apparent at once that the critical words both in the Constitution and in the Public Housing Law are “ recreational and other facilities incidental or appurtenant thereto.”

Before taking up the basic contentions of the parties a brief statement of the facts out of which this litigation arises will be appropriate. The city’s 1948 capital budget contains items aggregating $13,820,000 for the modernization of various public schools, and the acquisition of sites and the construction thereon of seven public schools. The funds for these items are to be raised by use of the additional 2% debt limit for public housing permitted by the Constitution, the Public Housing Law and section 150.00 of, the Local Finance Law, instead of within the city’s general 10% debt limit. One of the schools so to be built is Public School 111 in the borough of Queens, near Queens-bridge Houses 11 Queensbridge Houses ” is a public housing development constructed, owned and operated by the New York City Housing Authority. It is a Federally aided project, having [1035]*1035been erected pursuant to a loan and subsidy contract dated August 21, 1938, with the United States Housing Authority. Construction began in 1938 and was legally completed March 15, 1940, at a total development cost, including parks and playgrounds of $13,219,823. The total estimated cost of Public School 111 is $1,990,099, of which, according to the capital budget $1,900,000 is to be charged against the housing debt limit. The board of estimate has already authorized the incurrence of indebtedness and the issuance of bonds and capital notes for the acquisition of the site and the construction of Public School 111. This is the only one of the seven schools enumerated in the 1948 capital budget above referred to for which any similar authorization has as yet been made by the board of estimate.

These seven schools, the cost of which the 1948 capital budget proposes to charge against the housing debt limit appeared in capital budgets of prior years, and in these earlier budgets their cost was chargeable against the city’s general, not the special 2% housing debt limit. The city, while maintaining that this change of policy is impervious to legal attack acknowledges frankly that the change is due to other demands which render the funds available within its 10% debt limit insufficient to meet the school needs of public housing projects and those of other areas in the city. Of course, this motivation cannot affect the decision of any question of law.

Two applications are now before the court: (1) the plaintiff’s motion for an injunction during the pendency of the action and (2) the defendants’ cross motion for summary judgment, dismissing the complaint. The plaintiff counters with a prayer pursuant to rule 113 of the Rules of Civil Practice for final judgment in his favor.

The motion for an injunction must be denied because, as will appear, the plaintiff’s ultimate right to a permanent injunction is not clearly established and there is shown no immediate danger of waste or other injury requiring the interposition of the court at this time.

The defendants at the outset challenge the plaintiff’s right to maintain an action for a declaratory judgment. They assert ■that, whether the debt incurred for these schools is charged against the general 10% debt limit or the special 2% housing debt limit, the moneys are in any case being used for a public purpose, that there is no present danger of exceeding either the 10% or the 2% limit and that the determination to charge the indebtedness for the schools and more immediately for Public [1036]*1036School 111, if erroneous, may be reviewed in a proceeding instituted under article 78 of the Civil Practice Act to compel the correction of the debt statement filed pursuant to the Local Finance Law. It seems to me, however, that the present is a proper case for a declaratory judgment. If the 2% housing debt limit is illegally invaded, the funds available for public housing are reduced by the amount of the unlawful invasion. It is a matter of public concern and in the public interest that if there is an attempted encroachment on the housing debt limit, forbidden by law, the attempt should be arrested promptly. In my opinion, therefore, this action for a declaratory judgment is maintainable in the circumstances here shown. (Cottrell v. Board of Education of City of N. Y., 181 Misc.

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Related

Nelson v. Board of Higher Education
42 N.E.2d 744 (New York Court of Appeals, 1942)
Cottrell v. Board of Education
59 N.E.2d 32 (New York Court of Appeals, 1944)
Nelson v. The Board of Higher Education
263 A.D. 144 (Appellate Division of the Supreme Court of New York, 1941)
Cottrell v. Board of Education
267 A.D. 817 (Appellate Division of the Supreme Court of New York, 1944)
Cottrell v. Board of Education
181 Misc. 645 (New York Supreme Court, 1943)

Cite This Page — Counsel Stack

Bluebook (online)
193 Misc. 1032, 84 N.Y.S.2d 109, 1948 N.Y. Misc. LEXIS 3514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diehl-v-odwyer-nysupct-1948.