Washington State

Office of the Attorney General

Attorney General

Bob Ferguson

AGO 1970 NO. 24 >

(1) The provisions of Article VIII, § 7 of the Washington Constitution, relating to gifts or loans of funds or credit by a municipality, do not apply to the expenditure by a city of federal funds which have been granted to it to finance programs authorized and approved by the Secretary of Housing and Urban Development under Title I of the Demonstration Cities and Metropolitan Development Act of 1966 (80 Stat. 1255; 42 U.S.C. §§ 3301-3313).(2) To the extent that their programs are carried out in a manner consistent with the state Constitution, § 1, Chapter 77, Laws of 1970 (RCW 35.21.660) contains a sufficient grant of authority to enable all cities in this state to do all things which are necessary in order to carry out the purposes of such contracts as they may have entered into under the provisions of Title I of the Demonstration Cities and Metropolitan Development Act of 1966.