December 31. 1986
Honorable Gary Thompson Opinion No. JM-610
Chairman
Committee on County Affairs Re: Construction of section 6a. of
Texas Bouse of Representatives article 1269k. V.T.C.S., which ad-
P. 0. Box 2910 dresses conflicts of interest by
Austin, Texas 78769 employees of housing authorities
Dear Representative Thompson:
You inquire about the conflict of interest provision applicable
to employees of a county housing authority established under article
1269k. V.T.C.S. You ask:
IS it a violation under article 1269k,
V.T.C.S. . . . for an employee of a housing
authority to serve as a consultant or bookkeeper
for another housing authority?
Is it a violation of the above-referenced
statute for an employee of a housing authority to
own a home included in another housing project
(outside of the jurisdiction of the authority for
whom he works)?
Article 1269k. V.T.C.S.. authorizes each county of the state to
establish "a public body corporate and politic to be known as the
'housing authority' of the county. . . ." V.T.C.S. art. 1269k. 523a.
A housing authority has the following powers, among others:
Within its area of operation: to prepare,
carry out, acquire, lease, and operate housing
projects: to provide for the construction, recon-
struction, improvement, alteration, or repair of
any housing project or any part thereof.
V.T.C.S. art. 1269k. 08(b).
Unless a different meaning appears from the context,
'[blousing [plroject' shall mean any work or
undertaking: (1) to demolish, clear, or remove
buildings from any slum area; such work or
undertaking may embrace the adaption of such area
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Honorable Gary Thompson - Page 2 (~11~610)
to public purposes, including parks or other
recreational or community purposes; or (2) to
provide decent, safe, and sanitary urban or rural
dwellings, apartments, or other living accomda-
tious for persons of low income; such work or
undertaking may include buildings, land, equip-
ment , facilities, and other real or personal
property for necessary, convenient, or desirable
appurtenances, streets, sewers, water service,
parks, site preparation, gardening, administra-
tive, colmmlnity. health, recreational, educa-
tional, welfare, or other purposes; or (3) to
accomplish a combination of the foregoing. The
tens 'housing project' also may be applied to the
planning of the buildings and improvements. the
acquisition of property, the demolition of
existing structures. the construction, reconstruc-
tion, alteration, and repair of the Improvements
and all other work in connection therewith.
V.T.C.S. art. 1269k, $3(i). In some provisions of article 1269k.
V.T.C.S., "housing project" is used in a narrower sense, to refer to a
multi-unit dwelling constructed by a housing authority. - Id. §§6(a),
8(c). 9, 10.
A board of commissioners appointed by the county commissioners
court exercises the powers of a county housing authority. V.T.C.S.
art. 1269k. 595, 23a. The housing authority is empowered to employ
technical experts and other .employees as it nay require and to
delegate to its agents or employees such powers as it deems proper.
V.T.C.S. art. 1269k, 15.
The Rousing Authorities Law, since its enactment in 1937, has
prohibited coserlssionersand employees of an authority from acquiring
"any interest, direct or indirect, in any housing project. . . ."
Acts 1937, 45th Leg.. ch. 462, $6. at 1148. The conflict of interest
provision was amended in 1983 by House Bill No. 1505 of the Sixty-
eighth Legislature. Sections 6 and 6a of article 1269k now read as
follows:
Sec. 6. Interested Commissioners. (a) No
commissioner of an authority shall own. acquire,
or control any interest, direct or indirect, in
any housing project or in any property included or
planned to be included in any project. Nor shall
he have any interest, direct or indirect, in any
contract or proposed contract for:
(1) the sale of land to be used for a housing
project;
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Honorable Gary Thompson - Page 3 (JM-610)
(2) the construction of a housing project; or
(3) the sale of materials or services to be
furuished or used in connection with any housing
project. Nor shall he have any dealings for
pecuniary gain with any housing project.
Bowever. it is not unlawful for a coamissioner:
(1) to manage a housing project or to own,
acquire, or control a management company rendering
management services to a housing project;
(2) to continue to own or control any interest
in a housing project held by the commissioner
prior to his term as comaissioner; or
(3) to own, acquire, or control any interest
in or have any dealings with a housing project
over which the cowaissioner's housing authority
has no jurisdiction.
(b) If any commissioner of an authority
manages, owns, acquires, or controls an interest,
direct or indirect, in any property included or
planned to be included in any housing project, or
if any conmissioner has any other dealings for
pecuniary gain with any housing project, he shall
imnediately disclose the sane in writing to the
authority. The disclosure shall be entered upon
the minutes of the authority. Failure to so
disclose such interest shall constitute misconduct
of office.
(4 tpenaltyl
Cd) [disqualification from future public
employment].
Sec. 6a. Interested Employees. (a) &
employee of an authority shall own, acquire, or
control any interest, direct or indirect. in anp
housing project or in any property included or
planned to be included in any housing project.
Nor shall the employee own. acquire, or control
any interest, direct or indirect. in any contract
or proposed contract for:
(1) the sale of land to be used for a housing
project;
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Honorable Gary Thompson - Page 4 (JM-610)
(2) the construction of a housing project; or
(3) the sale of materials or services to be
furnished or used in connection with anv housinn
project. Nor shall the employee have any dealings
for pecuniary gain with any housing project,
except in the performance of his duties as an
employee of the housing authority.
(b) An employee who knowingly or intentionally
violates Subsection (a) of this section commits an
offense. An offense under this subsection is a
felony of the third degree.
(c) A person finally convicted under Sub-
section (b) of this section is ineligible for
future employment with the State, its political
subdivisions, or a public corporation formed under
authority of the State or a political subdivision
of the State. (Emphasis added).
Acts 1983, 68th Leg., ch. 347, 052, 3, at 1833-35.
Your questions require us to construe section 6a. This provision
bars a housing authority employee from having certain interests in 3
housing project, whether operated by the housing authority which
employs him or another housing authority. This is an unusually broad
prohibition, but it is not unique. Former article 988, V.T.C.S.. as
amended in 1981, prohibited city council members from holding another
office or an employment under 3 city government. Acts 1981, 67th
Leg., ch. 527, 12, at 2230; - see Attorney General Opinion MW-572
(1982).
A reading of section 6, which prohibits housing authority
commissioners from holding certain interests in housing projects,
supports our interpretation of section 6a. Section 6 prohibits
commissioners from having certain interests in 9 housing project,
but specifically permits interests, ownership, or dealings with "a
housing project over which the coxauissioner'shousing authority has no
jurisdiction." This exception indicates the breadth of the section 6
prohibition: absent the exception, a commissioner would be barred from
having an interest in a housing project outside the jurisdiction of
his housing authority. This and other exceptions to section 6 were
added by senate amendment to Bouse Bill No. 1505. See Bill File to 8.
B. No. 1505, 68th Leg., Legislative Reference LibraF(1983). No such
exceptions were added to the conflict of interest provision pertaining
to employees.
We will answer your second question first. Subsection 6a(a)
bars an employee from owning "any interest . . . in any housing
project. . . .v In our opinion, an employee who owns a home included
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Honorable Gary Thompson - Page 5 (JM-610)
in a housing project owus an interest in that project. An employee of
a housing authority may not own a home included in s housing
project, whether it is under the jurisdiction of the housing authority
which employs him or another housing authority.
Your first question concerus whether an employee of a housing
authority may serve as a consultant or bookkeeper for another housing
authority. Subsection 6a(a)(3) prohibits an employee from having any
interest in a contract for the sale of services to be furnished in
connection with any housing project. Nor may he have
any dealings for pecuniary gain with any housing
project, except in the performance of his duties
as an employee of the housing authority.
The powers of a housing authority are directed at providing
'housing projects," a term defined very broadly in subsection 3(i) of
article 1269k. V.T.C.S. A paid bookkeeper or consultant for a housing
authority would probably engage in work related to particular housing
projects. If he did so, he would contract to furnish bookkeeping or
consultant services to a housing project. Moreover, his work for the
housing authority would involve "dealings for pecuniary gain" with the
housing projects of that authority. A housing authority employee is
prohibited from having such interests in and dealings with housing
projects operated by another housing authority.
In our opinion, a housing authority employee could not serve
another housing authority as consultant or bookkeeper if the latter
work would relate to a housing project. But see V.T.C.S. art. 1269k.
511 (two or more authorities may co-operate in the exercise of their
powers).
SUMMARY
Section 6a of article 1269k, V.T.C.S., bars an
employee of a housing authority from serving as a
consultant or bookkeeper for another housing
authority or from owning a home included in
another housing authority.
MATTOX
Attorney General of Texas
JACK HIGRTOWER
First Assistant Attorney General
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Honorable Gary Thompson - Page 6 (JM-610)
MARY IULLRR
Executive Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Susan L. Garrison
Assistant Attorney General
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