§ 54B-192. Urban renewal projects.
§ 54B‑192. Urbanrenewal projects.
(a) A State associationmay invest in the initial purchase and development, or the purchase orcommitment to purchase after completion, of unimproved residential realproperty or improved residential real property for sale or rental, includingprojects for the reconstruction, rehabilitation or rebuilding of residentialproperties to meet the minimum standards of health and occupancy prescribed byappropriate local authorities, and the provision of accommodations for retailstores, shops and other community services which are reasonably incident tosuch housing projects. No such investment shall be made under the provisions ofthis section without the prior approval of the Commissioner of Banks. TheCommissioner of Banks may approve such investment under the provisions of thissection only when the association shows:
(1) That the associationhas adequate assets available for such an investment;
(2) That the amount ofthe proposed investment does not exceed ninety percent (90%) of the reasonablemarket value of the property or interest therein; and
(3) Reserved.
(4) That the proposedproject is to be located in an area, including any contiguous area acquiredincidentally thereto, determined by the Commissioner of Banks to be an urbanrenewal, redevelopment, blighted or conservation area, or any similar areaprovided for by the laws of this State or of the United States, or localordinances for slum clearance, conservation, blighted area clearance,redevelopment, urban renewal or of a similar nature or purpose.
(b) Nothing hereincontained shall prohibit a State association from developing or building onland acquired by it under any other provisions of this Chapter; nor shall aState association be prohibited from completing the construction of buildingspursuant to any construction loan contract where the borrower has failed tocomply with the terms of such contract. (1981, c. 282, s. 3; 2001‑193, s. 16.)