N.Y. Private Housing Finance Law § 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.