N.Y. Private Housing Finance Law § 112: Limitations

§ 112. Limitations. In addition to limitations prescribed by this

article a redevelopment company shall not have power to:

1. Acquire any real property or interest therein for a project or

projects unless the supervising agency and the local legislative body

determine as provided in this article that such acquisition is necessary

or convenient for the public purpose defined in this article, and unless

any deed, lease or other instrument by which such real property or

interest therein is acquired contains a statement that the conveyance is

to a redevelopment company organized pursuant to article five of the

private housing finance law.

2. Create its capital, or issue its debentures and and bonds covering

any project undertaken by it in an amount greater in the aggregate than

the total actual final cost of such project. The actual cost of such

project shall include the cost of the lands and improvements

constituting the project and charges for financing and supervision

approved by the supervising agency, condemnation charges and interest

and other carrying charges during the period of acquisition and of

construction. The total actual final cost shall be deemed to be an

amount equal to such actual cost plus an allowance for working capital.

Such allowance for working capital shall not exceed an amount equal to

three per centum of the estimated cost or of the total actual final cost

of the project if that shall be greater than the estimated cost.

3. Enter into contracts for the payment of salaries to officers or

employees, or for the construction or for the substantial repair,

improvement or operation of projects except subject to the approval of

the supervising agency.