New York Laws
Article 6 - Urban Redevelopment Corporations
206 - Limitations of Redevelopment Corporations.

§ 206. Limitations of redevelopment corporations. No redevelopment
corporation shall:

1. Undertake any clearance, reconstruction, improvement, alteration or
construction in connection with any development until the certificates
of approval required by section two hundred three of this article have
been issued;

2. Change, alter, amend, add to or depart from the development plan
until the planning commission or the supervising agency, as the case may
be, has issued a certificate of approval of that portion of such change,
alteration, amendment, addition or departure relevant to the
determination required to be made by it as set forth in section two
hundred three of this article;

3. After a development has been commenced, sell, transfer or assign
any real property in the development area without first obtaining the
consent of the supervising agency;

4. Undertake more than one development;

5. Pay interest on its income debentures, if any, except out of net
earnings which would have been applicable to the payment of dividends on
its capital stock if there were no such income debentures;

6. Pay as compensation for services to, or enter into contracts for
the payment of compensation for services to, its officers or employees
in an amount greater than the limit thereon contained in the development
plan, or in default thereof, then in an amount greater than the
reasonable value of the services performed or to be performed by such
officers or employees;

7. Lease an entire building or improvement in the development area to
any person or corporation without obtaining the approval of the
supervising agency, which may be withheld only if the lease is being
made for the purpose of evading the provisions of this article;

8. Mortgage any of its real property without obtaining the approval of
the supervising agency;

9. Make any guarantee without obtaining the approval of the
supervising agency;

10. Dissolve without obtaining the approval of the supervising agency,
which may be given upon such conditions as the supervising agency may
deem necessary or appropriate to the protection of the interest of the
city in the proceeds of the sale of the real property acquired by
condemnation as provided in subdivision two of section two hundred five
of this article, such approval to be endorsed on the certificate of
dissolution and such certificate not to be filed in the department of
state in the absence of such endorsement;

11. Reorganize without obtaining the approval of the supervising
agency.