[§201H-40]  Housing projects; constructionand sponsorship.  (a)  The corporation, on behalf of the State or witheligible developers and contractors, shall develop real property and constructdwelling units thereon; provided that not less than ten per cent of the totalnumber of units in single-family projects consisting of fifty units or moresponsored by the corporation shall be first offered to owner‑builders orto nonprofit organizations assisting owner‑builders in the constructionof units thereon.  Qualifications for developers and contractors shall beprovided by rules adopted by the corporation in accordance with chapter 91. Any person, if qualified, may act as both the developer and the contractor.

(b)  In selecting the eligible developers or incontracting any services or materials for the purposes of this chapter, thecorporation shall not be subject to the competitive bidding laws.

(c)  If working in partnership with an eligibledeveloper, the corporation shall have sole control of the partnership, shallkeep all books of the partnership, and shall ascertain all costs of thepartnership, including the cost of services performed by any other partners,and the corporation shall audit the same.  The other partners shall performservices for the partnership under the direction of the corporation and shallbe reimbursed for all costs relating to the project as certified by thecorporation, including administrative and overhead costs.  Additionally, theother partners, upon transfer of title by the corporation to the purchaser,shall be entitled to a guaranteed gross share if the actual cost of the projectdoes not exceed the original project cost.  The gross share shall not exceedfifteen per cent of the original project cost prorated to the dwelling units,less any amount subsidized by the State. Subsidies shall include unrecovereddevelopment and land costs and any other subsidized items as defined in rulesadopted by the corporation pursuant to chapter 91.  The percentage of the shareshall be determined by the corporation by contract with the partners based uponthe nature of the services rendered by them.  For purposes of this subsection,"original project cost" means the original budget of a project asapproved by the corporation without modification at a later date.

(d)  The corporation may require thatperformance bonds be posted to the benefit of the State with suretysatisfactory to the corporation guaranteeing performance by the other partners,or the State may act as a self-insurer requiring security, if any, from theother partners, as the corporation shall deem necessary. [L 2006, c 180, pt of§3]