New York § 112 - 112Limitations

§ 112. 112Limitations

§ 112. Limitations. In addition to limitations prescribed by this article a redevelopment company shall not have power to: 1. Acquire any real property or interest therein for a project or projects unless the supervising agency and the local legislative body determine as provided in this article that such acquisition is necessary or convenient for the public purpose defined in this article, and unless any deed, lease or other instrument by which such real property or interest therein is acquired contains a statement that the conveyance is to a redevelopment company organized pursuant to article five of the private housing finance law. 2. Create its capital, or issue its debentures and and bonds covering any project undertaken by it in an amount greater in the aggregate than the total actual final cost of such project. The actual cost of such project shall include the cost of the lands and improvements constituting the project and charges for financing and supervision approved by the supervising agency, condemnation charges and interest and other carrying charges during the period of acquisition and of construction. The total actual final cost shall be deemed to be an amount equal to such actual cost plus an allowance for working capital. Such allowance for working capital shall not exceed an amount equal to three per centum of the estimated cost or of the total actual final cost of the project if that shall be greater than the estimated cost. 3. Enter into contracts for the payment of salaries to officers or employees, or for the construction or for the substantial repair, improvement or operation of projects except subject to the approval of the supervising agency.