[§356D-16]  Contracts with the federalgovernment.  (a)  The authority may:

(1)  Borrow money or accept grants from the federalgovernment for or in aid of any public housing project that the authority isauthorized to undertake;

(2)  Take over any land acquired by the federalgovernment for the construction or operation of a public housing project;

(3)  Take over, lease, or manage any public housingproject constructed or owned by the federal government, and to these ends,enter into contracts, mortgages, leases, or other agreements as the federalgovernment may require, including agreements that the federal government shallhave the right to supervise and approve the construction, maintenance, andoperation of the public housing project;

(4)  Procure insurance or guarantees from the federalgovernment for the payment of any debts or parts thereof secured by mortgagesmade or held by the authority on any property included in any public housingproject;

(5)  Agree to any conditions attached to federalfinancial assistance relating to the determination of prevailing salaries orwages, payment of not less than prevailing salaries or wages, or compliancewith labor standards, in the development or administration of public housingprojects, and include in any construction contract let in connection with aproject stipulations requiring that the contractor and any subcontractorscomply with requirements as to minimum salaries or wages and maximum hours oflabor;

(6)  Comply with any conditions required by the federalgovernment in any contract for financial assistance; and

(7)  Execute contracts with the federal government.

(b)  In any contract for annual contributionswith the federal government, the authority may obligate itself to convey to thefederal government possession of or title to the public housing project towhich the contract relates, if a substantial default, as defined by contract,occurs.  Notwithstanding any other law to the contrary, this obligation shallbe specifically enforceable and shall not constitute a mortgage.

The contract may provide further that if aconveyance occurs, the federal government may complete, operate, manage, lease,convey, or otherwise deal with the project in accordance with the terms of thecontract; provided that the contract shall require that as soon as practicableafter the federal government is satisfied that all defaults with respect to theproject have been cured and that the project will thereafter be operated inaccordance with the terms of the contract, the federal government shallreconvey to the authority the project as then constituted.

(c)  It is the purpose and intent of thissection to authorize the authority to do any and all things necessary to securethe financial aid and the cooperation of the federal government in theundertaking, construction, maintenance, and operation of any public housingproject that the authority is empowered to undertake. [L 2006, c 180, pt of §2]