Legislation
SECTION 71
Sale or lease of projects to limited dividend corporations
Municipal Housing Authorities (MHA) CHAPTER ROOT, ARTICLE 5
* § 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.
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.