§ 127 — Acquisition by mutual redevelopment companies

§ 127. Acquisition by mutual redevelopment companies. Anything in this\narticle to the contrary notwithstanding:\n (a) With the approval of the supervising agency, any person owning a\nproject may convey such project to a mutual redevelopment company and a\nmutual redevelopment company may be organized to acquire an existing\nproject prior to expiration of an initial tax exemption granted pursuant\nto section one hundred twenty-five, and may own, maintain, operate,\nsell, and convey such project pursuant to this article. In part payment\nof the purchase price therefor, such company may execute and deliver a\nbond and mortgage or an issue of bonds under a trust indenture, the\naggregate principal amount of which does not exceed ninety per centum of\nsuch purchase price, and which shall be secured by a first mortgage upon\nall the real property of which such project consists. Such bonds are\nhereby declared securities in which all public officers and bodies of\nthe state and of its municipal subdivisions, all insurance companies and\nassociations, all savings banks and savings institutions, including\nsavings and loan associations, executors, administrators, guardians,\ntrustees, and all other fiduciaries in the state may properly and\nlegally invest the funds within their control. The total capital created\nand bonds or debentures issued by such mutual redevelopment company\nshall not exceed the total cost of the purchase of the project and an\nallowance for working capital not greater in amount than three per\ncentum of such cost.\n (b) With the consent of the local legislative body, any initial tax\nexemption granted pursuant to section one hundred twenty-five, shall\ncontinue after conveyance of a project to a mutual redevelopment company\nfor the period of years originally provided for in the contract, or for\nthe unexpired portion thereof if such period shall have commenced,\nsubject to prior termination pursuant to section one hundred twenty-four\nor section one hundred twenty-five, and this article shall continue to\nbe applicable to such project as though such project had been initially\nundertaken by such mutual redevelopment company; provided, however, that\nnothing herein shall require the resubmission of the plan of the project\nand the contract relating thereto for approval pursuant to section one\nhundred fourteen. The contract may, with the approval of the local\nlegislative body and of the holder of the mortgage on the project, be\nmodified in a manner consistent with this section.\n