AGO 1996-178.

Case DateApril 09, 1996
CourtAlabama
Alabama Attorney General Opinions 1996. AGO 1996-178. 1996-178April 9, 1996Honorable Nelson R. Starkey, Jr. Member, House of Representatives District No. 1 301 North Pine Street Florence, AL 35630 Housing Authorities - Insurance - Nonprofit Corporations Alabama Public Housing Authority may enter into an agreement with other Alabama Public Housing Authorities and form a nonprofit corporation for the purpose of a self- funded insurance agreement.Dear Representative Starkey: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTIONS Is it possible for an Alabama Public Housing Authority to legally enter into an agreement with other Alabama Public Housing Authorities, form a nonprofit corporation for the purpose of a "self-funded" insurance agreement, and procure other insurance after the nonprofit trust is exceeded? 1. Is this organization subject to any insurance laws? 2. Is this a legitimate nonprofit purpose? FACTS AND ANALYSIS Code of Alabama 1975, Section 24-1-27, that relates to municipalities, and _ 24-1-66, which relates to counties, have identical provisions connected to a public housing authority, that reads in pertinent part, as follows: "(a) An authority shall constitute a public body and a body corporate and politic exercising public powers, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this article, including the following powers in addition to others granted in this article: . . . "(15) To insure or provide for the insurance of the property or operations of the authority against such risks as the authority may deem advisable . . . ." Section 24-1-116, Code of Alabama 1975, relating to cooperation between authorities, states: "Any two or more authorities may join or cooperate with one another in the exercise . . . of any or all of their powers. . . . For such purpose an authority may by resolution prescribe and authorize any other housing authority or authorities so joining or cooperating with it to act on its behalf with respect to any or all of such powers. Any authorities joining or cooperating with one another may by resolutions appoint from among the commissioners of such authorities an executive committee with full power to act on behalf of such authorities with respect to any or all of their powers...

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