Rhode Island § 45-27-16 - Housing Authority Bonds and Obligations

§ 45-27-16. Obligations in federal contracts.

In addition to the powers conferred upon the authority by other provisions of chapters 25 — 27 of this title, the authority is empowered to borrow money or accept grants from the federal government for or in aid of any housing project which the authority is authorized to undertake, to take over any land acquired by the federal government for the construction or operation of a housing project, to take over or lease or manage any housing project constructed or owned by the federal government, and to these ends, to enter into contracts, mortgages, trust indentures, leases, or other agreements that the federal government may require, including agreements that the federal government has the right to supervise and approve the construction, maintenance, and operation of the housing project. In any contract with the federal government for annual contributions to an authority, the authority may obligate itself (which obligation shall be specifically enforceable and not constitute a mortgage, notwithstanding any other laws) to convey to the federal government possession of or title to the project to which the contract relates, upon the occurrence of a substantial default (as defined in the contract) with respect to the covenants or conditions to which the authority is subject. The contract may further provide that in the case of a conveyance, the federal government may complete, operate, manage, lease, convey, or otherwise deal with the project in accordance with the terms of the contract; provided, that the contract requires that, as soon as practicable after the federal government is satisfied that all defaults with respect to the project have been cured and that the project will be operated in accordance with the terms of the contract, the federal government shall reconvey to the authority the project as then constituted. It is the purpose and intent of chapters 25 — 27 of this title to authorize every authority to do any and all things necessary to secure the financial aid and the cooperation of the federal government in the undertaking, construction, maintenance, and operation of any housing project which the authority is empowered to undertake.