§ 574-a. Municipal housing development fund. 1. A municipality may
create and establish a revolving fund to be known as the "municipal
housing development fund." Such a revolving fund shall be created and
established in the supervising agency.

2. There shall be paid into such municipal housing development fund
(a) any moneys appropriated and made available by the municipality for
the purposes of such fund, (b) notwithstanding the provisions of the
local finance law or any other provision of law, any moneys received in
repayment of advances made from such fund, and (c) any other moneys
which may be available for the purpose of such fund from any other
source or sources.

3. Any moneys held in such municipal housing development fund not
required for immediate disbursement may be invested, at the discretion
of the supervising agency, in obligations of the state or the United
States government or obligations the principal and interest of which are
guaranteed by the state or the United States government. Any income or
interest earned by, or increment to, such municipal housing development
fund shall be added to the moneys held in such fund for the purposes
herein provided.