N.Y. Municipal Housing Authorities Law § 71: Sale or lease of projects to limited dividend corporations

* § 71. Sale or lease of projects to limited dividend corporations. 1.

A public limited dividend corporation may lease or purchase a project or

a part thereof from an authority. The lease or sale shall be upon such

terms including limitation of rentals, regulation of occupancy,

recapture by the authority or by the municipality, as may be agreed upon

between the corporation and the authority and approved by the board. A

municipality, subject to the right of any government or the authority

shall have the right of recapture of any property sold or leased by an

authority to a public limited dividend corporation in the manner and

upon the terms set forth in subdivision seven of section twenty-two of

this act, but without limitation as to the time of exercise thereof.

2. Any provisions in this act to the contrary notwithstanding, the

certificate of incorporation of a public limited dividend corporation

may, with the approval of the board, empower the corporation to purchase

or lease property from an authority and operate it subject to the

supervision of the board and shall provide that any surplus or excess of

the par value of the stock, together with cumulative dividends at the

rate of six per centum per annum, shall upon dissolution revert to the

authority. The capital structure of a corporation formed to purchase or

lease such property shall be entirely in the discretion of the board

except that the number of shares of stock of such corporation shall not

be less than ten. The restrictions contained in this act as to the type

of project, and the amounts to be represented by mortgage, mortgage

bonds, income debentures or stock, shall be inapplicable to a

corporation formed to purchase or lease property from an authority.

3. The authority shall have the power to appoint a director to

represent it on the board of directors of such corporation and to remove

the director appointed by it at any time with or without cause, and upon

the death, resignation or removal of such director to appoint a

successor.

* NB The text of Article 5 of the former State Housing Law (cited

herein as the "Municipal Housing Authorities Law"), as such article

existed immediately prior to its repeal pursuant to section 227 of

Chapter 808 of the Laws of 1939, is provided here for ease of reference

and historical purposes as such text continues to be applicable for the

New York City Housing Authority pursuant to the provisions of section

401 of the current Public Housing Law.