N.Y.
Municipal Housing Authorities Law Section 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.
Source:
Section 71 — Sale or lease of projects to limited dividend corporations, https://www.nysenate.gov/legislation/laws/MHA/71 (updated Sep. 22, 2014; accessed Apr. 13, 2024).
