or county. In the other 5 States, they are applicable only to the largest city or cities in the State.

All of these laws require that before a project may be undertaken by a redevelopment corporation, detailed plans for its location, construction, and operation must be approved by one or more designated agencies of the municipality, including generally its planning commission. The detailed plans of the project must usually include a description of the land and buildings to be acquired, the dwelling, recreational and other structures and open spaces to be provided, anticipated costs and method of financing, a statement of the approximate rentals to be charged, and data to show that the project will not cause undue hardship to families then living in the area to be affected by the project. Additional public controls and regulations are provided by all of the laws, including usually a limitation on the amount of dividends a redevelopment corporation may pay each year, restrictions designed to prevent the transfer of a project for a use not intended by the law, and the general supervision of a redevelopment corporation's finances and financing operations by a designated agency of the municipality.

All of the laws provide for assistance through the power of eminent domain for projects of redevelopment corporations, authorizing the exercise of the power either by the corporations themselves or by municipalities for the corporations. The laws generally authorize public and private agencies and fiduciaries to invest their funds in obligations of a redevelopment corporation and to sell or lease property to be used for a project of a redevelopment corporation and accept stock or obligations of the corporation in exchange. Over half of the laws authorize, in widely varying degrees, some form of partial tax exemption, or exemption from increased assessment for tax purposes, of projects of redevelopment corporations. Some of the laws provide for other public assistance to such projects, including certain financial assistance and the furnishing of streets, parks and other public works and facilities.

II. CITATIONS TO LAWS

(a) Illinois: Laws of 1941, pages 431 to 460, H. B. 179.

(b) Indiana: Laws of 1943, chapter 307.

(c) Kansas: Laws of 1943, chapter 118.

(d) Kentucky: Acts of 1942, chapter 36.

(e) Massachusetts: Laws of 1945, chapter 654.

(f) Michigan: Public and local acts of 1941, No. 205, as amended by public acts of 1945, Act No. 102.

(g) Minnesota: Laws of 1945, chapter 493.

(h) Missouri: Laws of 1943, H. B. 239.

(1) New Jersey: Laws of 1944, chapter 169.

() New York:2 (1) Laws of 1942, chapter 845, as amended by laws of 1943, chapter 234. (2) Laws of 1941, chapter 892.

(k) Wisconsin: Laws of 1943, chapter 333, as amended by chapter 475, laws of 1945.

III. SHORT TITLES OF LAWS

(a) Illinois: "The Neighborhood Redevelopment Corporation Law."

(b) Indiana: None.

(c) Kansas: "Urban Redevelopment Law."

(d) Kentucky: None.

(e) Massachusetts: None.

(f) Michigan: "Urban Redevelopment Corporation Law."

(a) Minnesota: "The Neighborhood Redevelopment Corporation Law."

(h) Missouri: "Urban Redevelopment Corporation Act.'

(i) New Jersey: "Redevelopment Companies Law."

New York: (1) 1942 law-"Redevelopment Companies Law." (2) 1941

law "Urban Redevelopment Corporation Law."

(k) Wisconsin: "Urban Redevelopment Law."

2 New York has two separate statutes, one enacted in 1941 and one in 1942, having the same general purpose but with the following differences: (1) The 1941 law does not provide that insurance companies can organize, or cause to be organized, redevelopment companies and purchase and hold the stock of such companies. (2) The 1941 law authorizes a city to grant tax exemption to projects of a redevelopment company for a period of not more than 10 years, instead of a period of not more than 25 years as provided in the 1942 redevelopment companies law. (3) The 1941 law does not provide that a redevelopment company can at any time elect to pay the total amount of all such tax exemption with interest and thereby become free of all restrictions and public controls applicable to tax-exempt projects. Both these laws are discussed in greater detail in this part and for purposes of convenience are referred to as the 1941 law and 1942 law, respectively.

IV. MUNICIPALITIES AND COUNTIES TO WHICH LAWS ARE APPLICABLE

(a) Illinois: Any city, village, or incorporated town.

(b) Indiana: Any city, town, or county.

(c) Kansas: Any city which now has or shall hereafter have a population of 110,000 or more (which has the effect of limiting the present application of the law to Kansas City and Wichita).

(d) Kentucky: Any city of the first class (which has the effect of limiting the present application of the law to Louisville).

(e) Massachusetts: Any city or town.

(f) Michigan: Any city which now has or shall hereafter have a population of 150,000 or more.

(g) Minnesota: Any city of the first class (which has the effect of limiting the present application of the law to Duluth City, Minneapolis, and St. Paul).

(h) Missouri: Any city which now has or shall hereafter have a population of 700,000 or more (which has the effect of limiting the present application of the act to St. Louis).3

() New Jersey. Any municipality, including any city, town, township, village, or borough or any municipality governed by a board of commissioners or an improvement commission.

(j) New York. (1) 1942 law-Any city, town, or village. (2) 1941 lawAny city.

(k) Wisconsin. Any city.

V. ORGANIZATION AND CHARACTERISTICS OF REDEVELOPMENT CORPORATIONS

(a) Illinois: A neighborhood redevelopment corporation may be organized by three or more persons filing with the secretary of state a verified statement of incorporation, which shall contain certain organizational information required by the neighborhood redevelopment corporation law, and a statement of the purposes of the corporation (which shall include the eradication, rehabilitation, and rebuilding of a slum and blighted area, subject to the supervision and regulation of the redevelopment commission of the city, village, or incorporated town where the slum and blighted area is located). The verified statement shall declare that the duration of the corporation shall not exceed 60 years. Any city, village, or incorporated town may establish a redevelopment commission to supervise and regulate neighborhood redevelopment corporations organized to operate within such municipality. A redevelopment commission shall consist of three to five members appointed for terms of 2 years by the chief executive officer of the municipality, with the advice and consent of its governing body. Such commission may hire employees and fix their compensation, subject to the approval of the city council or the president of the board of trustees of the village or town, as the case may be.

(b) Indiana: Any corporation may be organized under the Indiana General Corporation Act to exercise the rights and powers contained in the redevelopment law if its articles of incorporation shall state that: (1) Such corporation is incorporated for the purpose of acquiring a slum or blighted area for redevelopment, with a description of the community in which such area is located; (2) the dividend rate on any stock of the corporation shall not exceed 6 percent of its par amount, until the expiration of the period during which the assessed valuation of the corporation's property is limited under the redevelopment law; and (3) no stock shall be issued by the corporation except, in return for money or for property having a fair cash value equal to the par amount of the stock.

(c) Kansas: Within 10 years of the effective date of the law, a redevelopment corporation may be organized pursuant to the corporation code of the State, by three or more persons filing with the secretary of state articles of incorporation which shall be in accordance with such code, except that such articles must state that the purpose of the corporation is the formulation, construction, and operation of a redevelopment plan pursuant to the urban redevelopment law, and that the duration of the corporation shall be at least 50 years. However, before the secretary of state may furnish a certified copy of such articles of incorporation to the incorporators, he must secure approval of such articles by the State corporation commission. The commission must approve them if it finds the corporation will be organized for a public purpose, that its officers will have the requisite ability to handle the affairs of the corporation, that its plan of organization is 3 There is now pending in the State legislature a bill, senate bill No. 42, which would in effect extend the provisions of the existing statute to include cities with populations of between 350,000 and 700,000.

satisfactory, and that there is reasonable necessity for the corporation in the city in which it proposes to operate. Any such redevelopment corporation is declared to be an agency of the State.

(d) Kentucky: Within 20 years of the effective date of the redevelopment law a redevelopment corporation may be organized, pursuant to the general corporation law of the State, by three or more persons making, acknowledging, and filing articles of incorporation in accordance with such general corporation law, except that such articles must state that the purpose of the corporation is the formulation, construction, and operation of a redevelopment plan pursuant to the redevelopment law and that the duration of the corporation shall be at least 20 years. Any corporation organized pursuant to the general corporation law may become a redevelopment corporation by similarly filing amendments to its articles of incorporation so that such articles will conform to the provisions of the redevelopment law.

(e) Massachusetts: An urban redevelopment corporation may be created by three or more persons filing with the Secretary of the Commonwealth an agreement of association (in a form furnished or approved by the commissioner of corporations and taxation) with intent to form a corporation for the purpose of carrying out a project as defined in the statute, together with a certificate of the housing board of the Commonwealth that it approves the project and consents to the formation of the corporation to carry it out. Approval by the housing board is conditioned upon approval of local officials, including the planning commission, if any, after public hearing. The general corporation laws of the Commonwealth and rules and regulations made pursuant thereto shall apply to redevelopment corporations so far as consistent with the provisions of the urban redevelopment statute; provided that no stock shall be issued without par value; and corporations formed under this statute are "declared to be instrumentalities of the Commonwealth." Insurance companies, with approval of the commissioner of insurance and subject to applicable provisions of the statute, are authorized to undertake the development of "one or more projects."

(f) Michigan: Within 10 years of the effective date of the urban redevelopment corporations law, a redevelopment corporation may be organized pursuant to the general corporation law of the State, by three or more persons filing with the corporation and securities commission a certificate which shall be in accordance with such general corporation law, except that the certificate must state that the purpose of the corporation is the formulation, construction and operation of a redevelopment plan pursuant to the urban redevelopment corporations law, and that the duration of the corporation shall be at least 20 years. Any corporation organized pursuant to the general corporation law may become a redevelopment corporation by similarly filing an appropriate certificate changing the provisions of its certificate of incorporation to conform to the provisions of the urban redevelopment corporations law.

(g) Minnesota: A neighborhood redevelopment corporation may be organized by three or more persons (who are citizens of the United States and at least two of whom are citizens of the State) filing with the Secretary of State a verified statement of incorporation, which shall contain certain organizational information required by the neighborhood redevelopment corporation law and a statement of the purposes of the corporation (which shall include the elimination of degenerative conditions and the rehabilitation and rebuilding of that development area whose redevelopment it is authorized to undertake subject to the supervision of and regulation by and pursuant to a certificate of convenience and necessity issued by the redevelopment commission. The statement shall declare that the duration of the corporation shall not exceed 60 years, and that it shall be without revivor. Any city of the first class may establish a redevelopment commission (the city planning commission may be designated to be the redevelopment commission) to supervise and regulate neighborhood redevelopment corporations authorized under the statute. A redevelopment corporation shall consist of not less than three nor more than five members appointed for terms of 2 years by the mayor of the city with the advice and consent of the governing body. Said commission may employ personnel and fix their compensation subject to the approval of the governing body of the city, and the commission shall receive such salary as may be fixed and appropriated by the governing body of the city. (h) Missouri: A redevelopment corporation may be organized pursuant to the general corporation laws of the State, by three or more persons filing in the office of the secretary of state articles of association containing certain organizational information required by the Urban Redevelopment Corporations Act, together with a certificate of the board of public service (the agency authorized to prepare a general city plan) and the public supervising agency (the board of estimate

and apportionment, or if none, an officer designated by the governing body of the city) that they approve the project for which the redevelopment corporation is to be formed and consent to the filing of the articles of association. Such articles of association must state the duration of the corporation, which must be no less than 50 years and no more than 99 years. It is to be noted that before a redevelopment corporation can be organized, its proponents must obtain the approval of the board of public service as to a rather detailed plan for the redevelopment of an area which such board finds is "substandard, submarginal, or insanitary so that the clearance, replanning, rehabilitation, or reconstruction therof is necessary," and obtain the approval of the supervising agency as to their plan for redevelopment, which latter approval is based primarily upon the supervising agency's judgment as to whether (1) the persons to be associated with the management of the redevelopment corporation during the period of at least one year, from the date of its plan of redevelopment was approved, have sufficient ability and experience and (2) the proposed method of financing the redevelopment is feasible. (i) New Jersey: A redevelopment company may be created by three or more persons signing, acknowledging, and filing with the secretary of state, and the county clerk of the county in which the principal office of the corporation is to be located, a certificate which contains certain organizational and other information and a statement of the time of duration of the company, which must be at least 25 years. Such certificate, and any certificate of amendment thereto, must be accompanied by another certificate evidencing the consent of the State department of economic development. (The redevelopment companies law uses the words "State housing authority" in lieu of "department of economic development," but the State housing authority has been abolished and its powers and functions transferred to such department by chapter 85 of the New Jersey Laws of 1944.) Insurance companies, savings banks, savings and loan associations, and building and loan associations are authorized to organize redevelopment companies pursuant to the redevelopment companies law.

(j) New York: (1) 1942 law: A redevelopment company may be created by three or more persons signing, acknowledging, and filing with the secretary of state a certificate which contains certain organizational and other information and a statement of the time of duration of the company, which must be at least 20 years. Such certificate must be accompanied by another certificate evidencing the consent of the supervising agency (which is the financial officer of the municipality, except that it is the superintendent of insurance if any of the stock of the company is to be held by insurance companies). A certificate of amendment to the certificate of incorporation may not be filed without certificates of consent from the supervising agency and the legislative body (which is the governing body, except that it is the board of estimate if any esists) of the municipality. Insurance companies are authorized to organize redevelopment companies pursuant to the redevelopment companies law.

(2) 1941 law: Within 10 years of the effective date of the urban redevelopment law, a redevelopment corporation may be organized under the stock corporation law of the State by three or more persons filing in the department of state she certificate which shall be in accordance with the stock corporation law, except that the certificate must state that the purpose of the corporation is the formulation, construction, and operation of a redevelopment plan pursuant to the urban redevelopment corporations law, that the duration of the corporation shall be perpetual, and that the corporation has been organized to serve a public purpose and shall be subject to supervision and control as provided in the statute. Any corporation organized pursuant to the stock corporations law or the general corporation law of the State may become a redevelopment corporation by similarly filling an appropriate certificate changing the provisions of its original certificate of incorporation to conform to the provisions of the urban redevelopment corporations law.

(k) Wisconsin: A redevelopment corporation may be organized pursuant to the general corporation law of the State. The urban redevelopment law provides that a redevelopment corporation is any corporation carrying out a redevelopment plan pursuant to such law, and makes the provisions of the general corporation law of the State applicable to redevelopment corporations, except where such provisions are in conflict with the provisions of the urban redevelopment law.

VI. UTILIZATION OF PUBLIC POWERS TO AID REDEVELOPMENT

1. Eminent domain

(a) Illinois: With the approval of the redevelopment commission of the municipality, a neighborhood redevelopment corporation may acquire real property by eminent domain for any of its purposes, if the corporation has first acquired

by purchase, or secured options on, 60 percent of the land in the redevelopment

area.

(b) Indiana: After the approval of a redevelopment plan and after the corporation undertaking the plan has acquired title to, or holds option upon, at least two-thirds of the land included in the area of the plan, such corporation may appropriate by eminent domain any lands or improvements in such area.

(c) Kansas: A redevelopment corporation may exercise eminent domain for any of the purposes of the urban redevelopment law, after the issuance of a certificate of approval therefor by the State corporation commission.

(d) Kentucky: Upon petition of a redevelopment corporation, the city may acquire real property by eminent domain for such corporation, after a certificate of approval has been issued by the supervising agency (which is an officer designated by the governing body of the city). The corporation must agree to pay the city all sums expended by it in the acquisition of such real property, and to secure such payment, as required by the city. In determining the value of the real property in eminent domain proceedings, evidence is admissible on the insanitary, unsafe, or substandard conditions of the premises, their illegal use, and the enhancement of rentals from such illegal use. Real property devoted to a public use may be taken by eminent domain, but no property belonging to a city or any other governmental body may be acquired without its consent.

(e) Massachusetts: A redevelopment corporation is authorized to acquire land, with the approval of the housing board, under the provisions of the general eminent domain statutes for its project purposes.

(f) Michigan: Similar to Kentucky.

(g) Minnesota: A neighborhood redevelopment corporation may exercise the power of eminent domain as provided by the general laws of the State relating thereto, but may not acquire any real property or interest therein, except by way of unexercised option, unless it shall first have obtained a certificate of convenience and necessity from the redevelopment commission (given after public hearing) that the area involved is a slum and blighted area and that the acquisition of the property and its development is necessary and convenient for the public purposes defined, and is part of the public use declared by the statute. Before any condemnation proceedings may be instituted, the corporation shall present to the redevelopment commission an application for approval which shall contain, among other things, proof that the corporation has acquired by purchase or has secured options to purchase 60 percent or more in area of the land within the development

area.

(h) Missouri: With the approval of the board of public service of the city, a redevelopment corporation may acquire real property by eminent domain for any of the purposes of the Urban Redevelopment Corporations Act. Real prop

erty devoted to a public use may be taken by the corporation by eminent domain, but no property belonging to a city or other governmental body may be acquired without its consent.

(i) New Jersey: A municipality may take real property by eminent domain for a redevelopment company, if the company has entered into a contract with the municipality which requires the company to pay to the municipality all sums to be expended in the acquisition of such real property and which provides for the manner of securing such payment. Such real property may be so acquired by the municipality even though it has been devoted to a public use and held in trust, it being expressly declared that the public use under the redevelopment companies law is a superior public use.

(j) New York: (1) 1942 law: Similar to New Jersey. (2) 1941 law: Similar to Kentucky.

(k) Wisconsin: Similar to Kentucky, except that no certificate of approval is required from a supervising agency of the city.

2. Taxation

(a) Illinois: The neighborhood redevelopment corporation law provides that, notwithstanding the functions of a neighborhood redevelopment corporation, it shall be subject to the same taxes on its assets and capital stock as are imposed on the assets and capital stock of "private corporations for profit." (b) Indiana: No specific reference in statute.

(c) Kansas: After a redevelopment plan has been approved, the redevelopment corporation may exhibit the plan to the county assessor with a map and description of all tracts to be used as public parks, playgrounds, parking spaces, public open spaces or commons, streets, boulevards or alleys, and the county assessor must certify the same to the county clerk and county treasurer who must change