the board of estimates has been satisfied as to the financial and legal ability of such lessees or grantees to carry out the purposes of the statute. (h) Michigan: Municipalities are authorized to acquire the fee-simple title in real property by purchase, gift, exchange, condemnation or otherwise, and such property as will not be used for public purposes shall be sold, leased or exchanged to private persons, companies, corporations, or urban redevelopment corporations for use in accordance with the limitations and conditions provided in the redevelopment plan. (i) New York: Municipal corporations are authorized to acquire by purchase, gift, devise, lease, condemnation or otherwise, real property necessary for or incidental to the clearance, replanning, reconstruction, and neighborhood rehabilitation of substandard and insanitary areas. No reference is made to the subject of disposition of such property. (j) Pennsylvania: An authority is authorized to assemble, purchase, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property from any person, firm, corporation, municipality, or government, and to acquire real property by eminent domain. It may sell, lease or otherwise transfer, with approval of the local governing body, any redevelopment area as an entirety to a single redeveloper or in parts to several redevelopers. (k) Wisconsin: Cities are empowered to acquire real property by purchase, exchange, gift, dedication, or eminent domain; and after it has been assembled to lease or sell such property. Planning commissions are also authorized, with approval of the local legislative body, to lease or sell parts of project areas. 2. Issuance of obligations (a) Alabama: A redevelopment agency is authorized to borrow money upon its bonds (including refunding bonds), notes, warrants, debentures, or other evidences of indebtedness and to secure same by pledge of any income or revenues of the agency. Bonds shall mature within 60 years and bear interest at a rate not exceeding 6 per centum per annum. (b) California: With the approval of the State commissioner of corporations, a redevelopment agency may issue bonds (including refunding bonds), payable from income and revenues, including funds made available by the Federal or State Governments. (c) Colorado: Bonds or debentures (either with or without general municipal liability) may be issued by a redevelopment authority and secured by mortgage or the proceeds of rent from the property; but general liability bonds may be issued only after being authorized in the manner provided by general law or municipal charter. (d) Connecticut: Any municipality may issue bonds for the purposes of the statute in accordance with its charter or the statutory provisions governing the creation of debt. (e) Illinois: The statute is silent with respect to the issuance of obligations. However, it appropriates $10,000,000 from State funds to carry out the purposes of the statute. (f) Indiana: The statute is silent with respect to the issuance of obligations, but does provide for the annual levying of special taxes upon real and personal property to provide funds for carrying out the purposes of the statute. (g) Maryland: The statute authorizes the commission to "petition for and accept" loans or grants of money from any source. (h) Michigan: Municipalities are authorized to issue genera obligation bonds or revenue bonds, or negotiable promissory notes for the purpose of providing funds for carrying out the purposes of the statute. But all such bonds or notes issued shall be subject to the approval of the municipal finance commission. (i) New York: No specific statutory reference. (j) Pennsylvania: An authority may, with approval of the department of internal affairs, issue bonds under the procedure set forth in the statutes. Bonds may be secured by a pledge of any revenues, including grants of contributions from the State or Federal Government, or any agency thereof, or by mortgage of any property of the authority. They shall bear interest at a rate not exceeding 6 per centum per annum. (k) Wisconsin: No specific statutory reference, but the city is authorized to "accept grants or other financial assistance". 3. Encumbering of property (a) Alabama: A redevelopment agency has no power to mortgage any of its real or personal property, except when a project is financed in whole or in part by a government it has power to mortgage all or any part of its property, real or personal, then owned or thereafter acquired. (b) California: A redevelopment agency is authorized to encumber any of its property by mortgage, deed of trust, or otherwise. (c) Colorado: The property of a rehabilitation authority may be mortgaged. (d) Connecticut: No reference is made to the mortgaging of property by a redevelopment agency, but it may, in order to secure financial aid from the Federal Government, obligate itself in any contract to convey to the Federal Government the project to which such contract relates upon the occurrence of a substantial default. (e) Illinois: No specific statutory reference, but may be affected by the "Housing Authorities Act," approved May 8, 1945. (f) Indiana: No specific statutory reference. Pennsylvania: An authority is authorized to mortgage all or any part of its real or personal property then owned or thereafter acquired to secure payment of its bonds or other obligations. (k) Wisconsin: No express reference is made to mortgages, but a city "may do all things necessary to comply with the conditions attached" to grants or loans from the Federal, State, or county governments. 4. Development of site (a) Alabama: A redevelopment agency is authorized to assemble and to clear the land within a redevelopment area, retaining such buildings which have a useful life as may fit into the plan, and to grade and drain the area, install streets, sidewalks, gutters, etc., "and utilities in conformity with the plan.' (b) California: A redevelopment agency is authorized to develop as a building site or sites any real property owned or acquired by it, or to cause streets to be laid out, graded, and paved, and public utilities of every kind to be constructed and installed. (c) Colorado: A rehabilitation authority may be authorized to remove or cause to be removed some or all of the existing structures in an area, to vacate existing plats of the area and to replat the same, and to provide streets, plavgrounds, parks, and other needful public improvements. (d) Connecticut: A redevelopment agency is authorized to clear property which it acquires and make site improvements essential to preparation for its use in accordance with the redevelopment plan. (e) Illinois: The statute states that the funds granted may be applied to any "purposes necessary for clearance of slum and blight areas.' (f) Indiana: The commissioners are authorized to clear and replan the area, to arrange for needed improvements thereof, and contracts for clearance may provide that the contractor shall be entitled to retain and dispose of salvaged material as a part of the contract price or on the basis of stated prices for the amounts of materials actually salvaged. (g) Maryland: The statute states that the commission may accept loans or grants of money "for the acquisition of land and improvements comprising any redevelopment area. (h) Michigan: The statute refers to action by the municipality with respect to "the acquisition and clearance of land in a redevelopment area reserved for private uses." (i) New York: The "clearance" of substandard and insanitary areas is authorized. (j) Pennsylvania: An authority is authorized to assemble, clear, and improve any real property acquired by it for redevelopment purposes. (k) Wisconsin: Planning commissions are authorized, with the approval of the local legislative bodies, to have demolished existing structures or to clear the area, or to specify the demolition and clearance to be performed by a lessee or purchaser; also, to facilitate disposition of a project area a city has "power to include in the cost payable by it the cost of the construction of local streets and sidewalks within the area or of grading and other local public surface or subsurface facilities necessary for shaping the area as the site of the redevelopment of the area." 5. Control of land reuse (a) Alabama: The sale of property by a redevelopment agency shall be subject to covenants of use in accordance with the redevelopment plan and such covenants are to run with the land. (b) California: A redevelopment agency is authorized to obligate lessees or purchasers of land acquired by it in a redevelopment project (1) to use such land for the purposes designated in the redevelopment plan; (2) to begin the redevelopment within a specified reasonable time; and (3) to comply with such other conditions as are deemed necessary by the redevelopment agency in order to carry out the purposes of the statute. By contract the agency may make any of the purchaser's obligations, covenants, or conditions running with the land, whose breach shall cause the fee to revert to the agency. The statute provides that nothing contained in it "shall authorize such redevelopment agency to construct any of the buildings for residential, commercial, industrial, or other use contemplated by the redevelopment plan, or to acquire, without the consent of the owner, any real property on which buildings are located, where such buildings at to be continued in their present form and use under the redevelopment plan." (b) Colorado: The statute provides that it shall be the duty of an authority to keep informed as to the performance of any reconstruction agency of its obligations in the redevelopment of an area, and that the authority shall take any legal or other action deemed advisable in case the reconstruction agency shall fail in the performance of its obligations. (d) Connecticut: The statute provides that each contract for the sale or lease to a redeveloper shall provide, among other things, that the property shall be developed and used in accordance with the redevelopment plan, that all transfers of properties by the redeveloper shall be subject to the consent of the redevelopment agency. Any such contract may provide, among other things, (a) that the properties shall be maintained in accordance with the redevelopment plan; (b) that the redevelopment agency shall have the right of inspection; and (c) that the redeveloper, as security for its fulfilment of the contract, shall make a cash deposit or give a bond or other guaranty as may be deemed necessary by the redevelopment agency. (e) Illinois: See provisions of the laws applicable to lessees or grantees enumerated under 1, supra, of this section IX. (f) Indiana: The statute provides that property acquired may be disposed of "on such terms and conditions as the commissioners shall determine to be for the best interests of the city and its inhabitants." (g) Maryland: The redevelopment commission shall require in any sale or lease of land to any private person, firm, or corporation appropriate covenants and restrictions to maintain the standards of population density, property maintenance, type of land use and other standards established in the act, and such covenants and restrictions shall be made binding on subsequent transferees, purchasers, lessees, or other successors in interest. (h) Michigan: It is provided in the statute that the sale, lease, or exchange of property "shall be under terms and conditions fixed by the local legislative body and shall contain provisions that the development plan for the property shall be carried out." (i) New York: Under the terms of the statute the property acquired will be used by the municipality for the rehabilitation of substandard and insanitary areas, together with adequate provision for recreational and other facilities appurtenant thereto. (j) Pennsylvania: The statute provides that the contract between the authority and the redeveloper shall contain a statement of such continuing controls, which shall run with the land, as may be deemed necessary to effectuate the purposes of the statute, including a prohibition against discrimination in the use, sale, or lease of any property against any person because of race, color, religion, or national origin. (k) Wisconsin: Every lease or sale instrument shall provide that the lessee or purchaser shall carry out or cause to be carried out the approved project area redevelopment plan, and that no use shall be made of any land or real property involved which does not conform to the approved plan. Such instruments may include such other terms, conditions and provisions as are deemed necessary to assure conformance to the plan, including obligations of conformance with the plan which shall run with the land. In the event that maximum rentals to be charged to tenants of housing be specified, provision may be made for periodic reconsideration of such rental bases. A purchaser shall have no power to convey property without the consent and approval of the planning commission and the local legislative body, and no consent shall be given unless the grantee obligates itself or himself, including successors in interest, to carry out the provisions of the plan. No lien or other interest shall be placed upon any real property in an area by a lessee or purchaser to secure any indebtedness or obligation. 6. Control of rents (a) Alabama: The statute provides that it shall be unlawful for any person, firm, or corporation purchasing from a redevelopment agency any land for housing project purposes to rent any dwelling accommodations contained therein to any person "whose gross annual income exceeds $1,500.” (b) California: No specific statutory reference. (e) Illinois: No specific statutory reference, but see provisions of the law applicable to lessees or grantees enumerated under 1, supra, of this section IX; also, provisions of the "Housing Authorities Act" relating to rents of low-income persons. (f) Indiana: No specific reference is made to rents other than that the commissioners in offering property for sale or lease shall consider "proposed sale or rental prices" of the lessees or purchasers, including any factors which will assure the carrying out of the redevelopment plan. Maryland: No specific statutory reference. (h) Michigan: No specific statutory reference. (i) New York: No specific statutory reference. (j) Pennsylvania: The statute makes no specific reference to rents, but states that the contract with the developer shall contain such controls as may be deemed necessary to carry out the purposes of the statute. (k) Wisconsin: In the event that maximum rentals to be charged to tenants of housing are specified in lease or sale agreements, provision may be made for periodic reconsideration of such rental bases. Redevelopment plans may specify maximum rentals of any housing proposed to be provided. 7. Investment of funds (a) Alabama: A redevelopment agency may invest any of its funds not required for immediate disbursement in property or facilities in which savings banks may legally invest funds subject to their control. (b) California: A redevelopment agency may invest any of its funds in property or facilities in which savings banks may legally invest, and may purchase its bonds at a price not more than the principal amount thereof and accrued interest. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. Illinois: See Housing Authorities Act, approved May 8, 1945. However, the statute provides that "no housing authority nor land clearance commission shall reinvest or use any funds arising from the rental, sale or exchange of any property acquired with funds appropriated under this act except with the approval of the State housing board." (f) Indiana: No specific statutory reference. (i) New York: No specific statutory reference. Pennsylvania: An authority may invest its funds in such investments as may be lawful for executors, administrators, guardians, trustees, and other fiduciaries under the laws of the Commonwealth. (k) Wisconsin: No specific statutory reference. X. PROVISION FOR DISPLACED PERSONS (a) Alabama: The statute provides that in planning an area for redevelopment "there shall be no obligation upon the agency to provide equivalent housing or any housing for persons formerly residing in such area." (b) California: If the redevelopment plan provides for the displacement of any occupants of housing facilities in the area, the legislative body shall not approve it except upon the finding that adequate housing facilities are or will be made available in the community for such displaced occupants at rents comparable to those existing at the time of their displacement. The legislative body shall further be satisfied that, with respect to permanent housing facilities, other such facilities shall be made available within 3 years from the time such occupants shall be displaced and that temporary housing facilities will be made available at the time of their displacement. If persons of low income (as defined in the housing authority law) are displaced, the legislative body shall, prior to its approval of the plan, obtain and consider the recommendations of the housing authority, if any, with respect to the availability and provision of adequate housing for such persons. (c) Colorado: No specific statutory reference. (d) Connecticut: The statute states that a redevelopment agency may approve a redevelopment plan if it finds, among other things, "sufficient living accommodations are available within a reasonable distance of such area or are provided for in the redevelopment plan for families displaced by the proposed improvement, at prices or rentals within the financial reach of such families." (e) Illinois: No specific statutory reference. (f) Indiana: The statute provides that in determining the location and extent of blighted areas proposed to be acquired, the commissioners and the plan commission "shall give consideration to transitional and permanent provisions for adequate housing" for displaced residents. (g) Maryland: No specific statutory reference. * (h) Michigan: The statute reads: "No resident-owner in a development area shall be dispossessed after condemnation * * * until other adequate housing accommodations are provided * *"" It also provides that a redevelopment plan shall designate "provision for the relocation of the people living in the area." (i) New York: No specific statutory reference. Pennsylvania: The statute provides that a redevelopment area plan shall contain a statement of the extent and effect of the rehousing of families which may be made necessary by the redevelopment and the manner in which such rehousing may be accomplished; that the governing body shall not approve a redevelopment proposal unless it is satisfied that adequate provisions will be made to rehouse displaced families without undue hardship; and that the Authority may reimburse displaced occupants for their reasonable expenses of removal. (k) Wisconsin: The statute provides that in connection with every redevelopment plan the housing authority shall formulate a feasible method for the temporary relocation of displaced persons, and, in addition, the housing authority and the local legislative body "will assure that decent, safe and sanitary dwellings substantially equal in number to the number of substandard dwellings to be removed" are available, or will be provided at rents or prices within the financial reach of the income groups displaced. XI. ELIGIBILITY OF OBLIGATIONS OF REDEVELOPMENT AGENCIES FOR PRIVATE AND PUBLIC INVESTMENT (a) Alabama: The statute authorizes all persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any fund owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (b) California: The statute authorizes all persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any funds owned or controlled by them, including (but not limited to) sinking funds, insurance, investment, retirement, compensation, pension and trust funds, and funds held on deposit, for the purchase of any bonds or other obligations of a redevelopment agency. (c) Colorado: No specific statutory reference. (d) Connecticut: No specific statutory reference. () Pennsylvania: The statute does not set forth any list of funds eligible for investment in obligations of an authority, but bonds are declared to have all the qualities of negotiable instruments. (k) Wisconsin: No specific statutory reference. |