[§201H-41]  Independent development ofprojects.  (a)  In any county, the corporation may develop or may enterinto agreements to develop housing projects with an eligible developer if inthe corporation's reasonable judgment a project is primarily designed for lowerincome housing.  The agreement may provide for the housing to be placed underthe control of the corporation, or to be sold by the corporation, or to be soldto the corporation as soon as the units are completed and shall contain terms,conditions, and covenants as the corporation, by rules, deems appropriate. Every agreement shall provide for the developer to furnish a performance bondin favor of the corporation, assuring the timely and complete performance ofthe housing project.  Sureties on the bond shall be satisfactory to thecorporation.

(b)  The plans and specifications for thehousing project shall:

(1)  Provide for economically integrated housing bystipulation and design;

(2)  Provide for the sale of all dwelling units in feesimple or in leasehold either to the corporation or to the purchaser and in allcases subject to all of the provisions of sections 201H-47, 201H-49, and 201H‑50excepting units sold at market price; and

(3)  Encompass the use of lands adequately suited tothe size, design, and types of occupancies designated in subsection (a),properly located for occupancy by the group for which the project was primarilydesigned, properly districted for the use intended prior to the agreement, andappropriately zoned within an urban land use district or appropriate in itssituation and surroundings for more intensive or denser zoning.

(c)  The corporation may accept and approvehousing projects independently initiated by private developers that fullycomply with subsections (a) and (b).  The corporation may review the plans,specifications, districting, and zoning of the project for the purpose ofexempting the project from all statutes, ordinances, charter provisions, andrules of any government agency relating to zoning and construction standardsfor subdivisions, development, and improvement of land and the construction,improvement, and sale of dwelling units thereon; provided that the proceduresin section 201H-38(a)(1), (2), and (3) have been satisfied. [L 2006, c 180, pt of§3]