17-2358. Transfer of possession or title to federal government; contracts.
17-2358
17-2358. Transfer of possession or title to federal government;
contracts.
In any contract with the federal government for annual contributions to
a municipality, the municipality may obligate itself (which obligation
shall be specifically enforceable and shall not constitute a mortgage,
notwithstanding any other law) to convey to the federal government
possession of or title to the housing project to which such contract
relates, upon the occurrence of a substantial default (as defined in such
contract) with respect to the covenants or conditions to which the
municipality is subject; and such contract may further provide that in case
of such conveyance, the federal government may complete, operate, manage,
lease, convey, or otherwise deal with the housing project and funds in
accordance with the terms of such contract: Provided, That the
contract requires that, as soon as practicable after the federal government
is satisfied that all defaults with respect to the housing project have
been cured and that the housing project will thereafter be operated in
accordance with the terms of the contract, the federal government shall
reconvey to the municipality the housing project as then constituted.
History: L. 1957, ch. 132, § 22; L. 1973, ch. 96,
§ 18; July 1.