§ 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.