§ 45-27-16 - Obligations in federal contracts.
SECTION 45-27-16
§ 45-27-16 Obligations in federalcontracts. – In addition to the powers conferred upon the authority by other provisions ofchapters 25 – 27 of this title, the authority is empowered to borrow moneyor accept grants from the federal government for or in aid of any housingproject which the authority is authorized to undertake, to take over any landacquired by the federal government for the construction or operation of ahousing project, to take over or lease or manage any housing projectconstructed or owned by the federal government, and to these ends, to enterinto contracts, mortgages, trust indentures, leases, or other agreements thatthe federal government may require, including agreements that the federalgovernment has the right to supervise and approve the construction,maintenance, and operation of the housing project. In any contract with thefederal government for annual contributions to an authority, the authority mayobligate itself (which obligation shall be specifically enforceable and notconstitute a mortgage, notwithstanding any other laws) to convey to the federalgovernment possession of or title to the project to which the contract relates,upon the occurrence of a substantial default (as defined in the contract) withrespect to the covenants or conditions to which the authority is subject. Thecontract may further provide that in the case of a conveyance, the federalgovernment may complete, operate, manage, lease, convey, or otherwise deal withthe project in accordance with the terms of the contract; provided, that thecontract requires that, as soon as practicable after the federal government issatisfied that all defaults with respect to the project have been cured andthat the project will be operated in accordance with the terms of the contract,the federal government shall reconvey to the authority the project as thenconstituted. It is the purpose and intent of chapters 25 – 27 of thistitle to authorize every 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 housing projectwhich the authority is empowered to undertake.