552 – Sale or Lease of Projects.

§  552.  Sale or lease of projects.  1. An authority or a municipality
  may grant, sell, lease or convey a  project,  or  part  thereof,  either
  prior  to,  at  the  date  of,  or subsequent to the physical completion
  thereof, to a housing company, without public bidding,  public  sale  or
  public  offering,  and  a housing company may accept, purchase, lease or
  otherwise acquire such project or  part  thereof  upon  such  terms  and
  conditions  as  may be agreed upon by such authority or municipality and
  such housing company, and provided that such sale or lease and the terms
  and  conditions  thereof  shall  be  subject  (a)  in  the  case  of   a
  federally-aided  project, to the approval of the federal government; (b)
  in  the  case  of  a  state-aided  project,  to  the  approval  of   the
  commissioner;  or  (c)  in the case of municipally-aided project, to the
  approval of the supervising agency and the local  legislative  body.  In
  the  event  of  a grant, sale, lease or conveyance of a project prior to
  the physical completion thereof, the authority or municipality may agree
  to complete construction and development of such project.
2. The purchase price to be paid on or prior to the date  of  transfer
  of  title,  or upon the physical completion of the project, shall not be
  less than the amount required by the municipality or  authority  to  pay
  and  retire, or to make provision for the payment and retirement of, all
  bonds, notes  and  other  obligations  issued  by  the  municipality  or
  authority to finance the project cost.
3.  An  authority or a municipality which has granted, sold, leased or
  conveyed a project or part thereof to a housing company may reenter  all
  or  part  of such project in the manner provided in section five hundred
  four of this chapter.
4. The sale or lease  of  a  project  to  a  housing  company  may  be
  conditioned on the inclusion in the certificate of incorporation of such
  housing  company of a provision that no dividends or interest be paid on
  all or any issues of stock or debentures.
5. The parties to any lease or conveyance effecting the transfer of  a
  publicly-assisted  project  to  a housing company, executed prior to the
  effective date hereof, may amend such lease or conveyance in  accordance
  with the provisions of this article.