New York Laws
Article 5 - Redevelopment Companies
112 - Limitations.

§ 112. Limitations. In addition to limitations prescribed by this
article a redevelopment company shall not have power to:

1. Acquire any real property or interest therein for a project or
projects unless the supervising agency and the local legislative body
determine as provided in this article that such acquisition is necessary
or convenient for the public purpose defined in this article, and unless
any deed, lease or other instrument by which such real property or
interest therein is acquired contains a statement that the conveyance is
to a redevelopment company organized pursuant to article five of the
private housing finance law.

2. Create its capital, or issue its debentures and and bonds covering
any project undertaken by it in an amount greater in the aggregate than
the total actual final cost of such project. The actual cost of such
project shall include the cost of the lands and improvements
constituting the project and charges for financing and supervision
approved by the supervising agency, condemnation charges and interest
and other carrying charges during the period of acquisition and of
construction. The total actual final cost shall be deemed to be an
amount equal to such actual cost plus an allowance for working capital.
Such allowance for working capital shall not exceed an amount equal to
three per centum of the estimated cost or of the total actual final cost
of the project if that shall be greater than the estimated cost.

3. Enter into contracts for the payment of salaries to officers or
employees, or for the construction or for the substantial repair,
improvement or operation of projects except subject to the approval of
the supervising agency.