New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 13 - LIMITED DIVIDEND AND NONPROFIT HOUSING CORPORATIONS AND ASSOCIATIONS AND URBAN RENEWAL ENTITIES › Appendix - APPENDIX

Current through Register Vol. 56, No. 14, July 15, 2024
Limited-Dividend Nonprofit Housing Corporations or
				Associations Law
N.J.S.A. 55:16-1 et seq.
The Limited-Dividend Nonprofit Housing Corporations or
				Associations Law, P.L. 1949, c. 184 (N.J.S.A. 55:16-1 et seq.), was repealed,
				effective April 17, 1992, by the Long Term Tax Exemption Law, P.L. 1991, c. 431
				(40A:20-1 et seq.). However, as noted
				in the New Jersey Statutes Annotated in the notes to
				40A:20-1, section 20, paragraph b. of
				the Long Term Tax Exemption Law provided that "an urban renewal entity organized and
				operating under a law repealed by P.L. 1991, c. 431 shall not be affected by that
				repeal."
Notwithstanding the fact that limited-dividend and
				nonprofit housing corporations and associations organized under P.L. 1949, c. 184
				continue to be subject to that law, the New Jersey Statutes Annotated no longer
				contains its text. In order to make the text readily accessible to the public, the
				Department is publishing it as an appendix to this chapter.
N.J.S.A. 55:16-1 Short title
This act may be cited and referred to as the "Limited-Dividend
				Nonprofit Housing Corporations or Associations Law."
Extension of the duration of College Towers as a limited dividend
				housing corporation past the date of expiration of the tax exemption was proper;
				former N.J.S.A. 55:16-18 allows municipalities to grant tax exemptions to housing
				corporations and associations that have been established under the Limited-Dividend
				Nonprofit Housing Corporations or Associations Law, but the LD Law does not make any
				such granting of tax exemption a prerequisite to either the establishment or the
				continued existence of any such housing corporation or association. College Towers
				v. Bureau of Homeowner Protection, Dep't of Community Affairs, OAL Dkt. No. CAF
				10533-06, 2007 N.J. AGEN LEXIS 847, Final Decision (December 31, 2007).
College Towers continues to exist as a limited dividend housing
				corporation, subject to the regulatory authority of the Department of Community
				Affairs under the Limited-Dividend Nonprofit Housing Corporations or Associations
				Law, and will continue to do so unless and until such time as it may be released
				from that regulatory authority in accordance with former N.J.S.A. 55:16-22; its
				continued existence is consistent with the broad construction of the LD law mandated
				by former N.J.S.A. 55:16-21 and with the strong public policy of this State favoring
				the preservation of existing affordable housing. College Towers v. Bureau of
				Homeowner Protection, Dep't of Community Affairs, OAL Dkt. No. CAF 10533-06, 2007
				N.J. AGEN LEXIS 847, Final Decision (December 31, 2007).
55:16-2 Legislative determination of necessity
It is hereby declared that there is a severe housing shortage in the
				State; that there are places in many municipalities of the State where dwellings
				lack proper sanitary facilities and are in need of major repairs or unfit for
				residential use; that these conditions are detrimental to the health, safety,
				morals, welfare and reasonable comfort of the people of the State; that these
				conditions reduce economic values and impair private investments and public
				revenues; that the improvement of these conditions requires the production of new
				dwellings at rents which the families who need housing can afford; that the creation
				of the agencies, associations and corporations hereinafter described, is necessary
				and desirable for this purpose; that the provision of housing to make possible and
				to assist the clearance, planning, development or redevelopment of blighted areas,
				as proposed in this act, is a public purpose and a public use for which public money
				may be spent and private property acquired; and that the necessity in the public
				interest for the provisions hereinafter enacted is hereby declared as a matter of
				legislative determination.
55:16-3 Definitions
The following terms wherever used or referred to in this act shall
				have the following respective meanings, unless a different meaning clearly appears
				from the context:
(1) The term "authority"
			 means the public housing and development authority in the Department of Community
			 Affairs.
(2) The term "administrator"
			 means the Commissioner of Community Affairs, who is and shall be the administrator
			 of the public housing and development authority.
(3) The term "council" means the Commissioner of
			 Community Affairs.
(4) The term
			 "municipality" shall mean any city of any class, any town, township, village,
			 borough, or any municipal subdivision of the State.
(5) The term "governing body" shall mean, in the
			 case of a municipality, the common council, or the board of commissioners, or the
			 body managing its affairs.
(6) The term
			 "housing project" or "project" shall mean any work or undertaking to provide decent,
			 safe, and sanitary dwellings for families in need of housing; such undertaking may
			 include any buildings, land (including demolition, clearance or removal of buildings
			 from land), equipment, facilities, or other real or personal properties or interests
			 therein which are necessary, convenient or desirable appurtenances of said
			 undertaking, such as, but not limited to, streets, sewers, water, utilities, parks;
			 site preparations; landscaping, and administrative, community, health, recreational,
			 educational, welfare, commercial, or other facilities, or to provide any part or
			 combination of the foregoing. The term "housing project" or "project" shall be
			 deemed to include veteran housing projects constructed under the authority of an act
			 entitled "An act providing for housing for veterans of World War II and other people
			 of the State and declaring an emergency in respect thereto" ( P.L. 1946,
			 c.323).
(7) The term "housing
			 corporation" means any private, limited-dividend or nonprofit housing corporation
			 organized in accordance with the provisions of this act.
(8) The term "bonds" shall mean any bonds, notes,
			 interim certificates, debentures, or obligations issued pursuant to the provisions
			 of this act.
(9) The term "Federal
			 government" means the United States of America or any department, administration,
			 authority, instrumentality, agency, agent or officer thereof, or any corporation
			 created thereby.
(10) The term "State"
			 means the State of New Jersey or any department, authority, agency or officer
			 thereof.
(11) The term "gross shelter
			 rent" shall mean the gross rent or carrying charge less the cost of utilities
			 furnished by the project. These utilities shall include gas and electricity if
			 supplied by the project; cost of heating fuel; cost of water supplied and sewage
			 charges, if any.
(12) The term "housing
			 association" means any limited-dividend or nonprofit partnership, limited
			 partnership, limited partnership association, trust, single proprietorship or other
			 unincorporated association organized in accordance with the provisions of this act (
			 P.L. 1967, c.112) or the act to which this is a supplement ( P.L. 1949, c.184).
55:16-4 Purposes of housing corporations or
				associations
Housing corporations or housing associations may be organized in the
				manner provided by this act to acquire, construct, alter, maintain, and operate
				housing projects for the purpose of providing accommodations for families in need of
				housing and for development or redevelopment of blighted areas, when authorized by
				the authority.
55:16-5 Limit on dividends; disposition of surplus on
				dissolution
Every stockholder of a housing corporation shall be deemed, by
				subscription to or the receipt of stock therein, to have agreed that he shall at no
				time receive from the corporation in repayment of his investment any sums in excess
				of the face value of the investment plus cumulative dividends at a rate not to
				exceed 8% per annum and any person having any proprietary interest in any housing
				association shall by reason of his participation therein be deemed to have agreed
				that he shall at no time receive as a return on his investment any sums in excess of
				the face value of the investment plus a cumulative return thereon in the aggregate
				at a rate not to exceed 8% per annum computed from the initial date in which moneys
				were paid over or property delivered in consideration for the proprietary interest
				of the investor. Upon the dissolution of any such housing corporation or housing
				association, any surplus in excess of such amounts shall be paid to the State of New
				Jersey; provided, however, that the authority may enter into agreements with any
				municipality where tax exemption is provided pursuant to section 18 of this act with
				respect to any project or projects of such housing corporation or association for
				the distribution to and apportionment of said surplus between the State and the
				municipality.
55:16-5.1 "Surplus" defined
As used in section 5 of the act to which this act is a supplement,
				and as used in any statute amendatory of or supplementary to said act, the term
				"surplus" shall not be deemed to include any increase in assets of any
				limited-dividend housing corporation or housing association organized in accordance
				with the provisions of said act or any supplement thereto, by reason of reduction of
				mortgage, by amortization or similar payments or realized from the sale or
				disposition of any assets of a housing corporation or housing association to the
				extent such surplus can be attributed to any increase in market value of any real
				property or tangible personalty accruing during the period such assets were owned
				and held by any such housing corporation or housing association.
55:16-6 Formation of housing corporation; certificate;
				contents
Any three or more persons of the State may form a housing
				corporation for the aforesaid purpose by making, signing, acknowledging and filing a
				certificate as required for other corporations formed under Title 14, Corporations,
				General, of the Revised Statutes, which certificate shall contain the following
				matters:
(1) The name of the proposed
			 housing corporation.
(2) The purposes
			 for which it is formed, which shall be to acquire, construct, maintain and operate
			 housing projects as authorized under this act.
(3) Its duration, which shall not be more than 50
			 years.
(4) The amount, value, and number
			 of shares, all having a par value, of its capital stock with limitations thereon,
			 including the limitation that dividends on the stock shall not exceed 8% per annum
			 except to the extent that such dividends shall not have been paid in a previous
			 year, or years, of operation, in which case stockholders may be paid such deficiency
			 without interest out of any surplus earned in any succeeding years.
(5) The names and addresses of subscribers to
			 stock in the corporation and the number of shares to be issued to each.
(6) A provision that no real property of the
			 corporation shall be sold, transferred, encumbered or assigned except under and
			 pursuant to the provisions of this act and the regulations of the authority issued
			 hereunder.
(7) Any other provisions, not
			 inconsistent with this act or other law for the regulation of the business and the
			 conduct of the affairs of the housing corporation.
(8) A declaration that the housing corporation has
			 been organized to serve a public purpose and use; that its operations shall be
			 directed to providing for and making possible the clearance, planning, development
			 or redevelopment of blighted areas; and that it will at all times be subject to the
			 supervision and control of the authority.
55:16-7 Approval of certificate or amendment by
				Authority
No such certificate or amendment thereof shall be filed until the
				same, with all its conditions, limitations and provisions, shall have first been
				approved by the Authority, as evidenced by a certificate of the Authority annexed
				thereto.
55:16-8 Right, powers and privileges of housing
				corporations
Every housing corporation organized under this act, subject to the
				conditions and restrictions herein, and the regulations of the authority approved by
				the council, shall have the following rights, powers and privileges:
(1) To have succession by its corporate name for
			 the period limited in its certificate of incorporation or any amendment
			 thereto.
(2) To sue and be sued in its
			 corporate name.
(3) To have and use a
			 common seal and to alter same at pleasure.
(4) To have a capital stock of such amount and
			 number of shares as may be provided in the certificate of incorporation or any
			 amendment thereto and to increase or decrease its capital stock.
(5) To acquire, own, use, convey, sell, contract,
			 encumber, lease and otherwise dispose of and deal in real or personal property or
			 any interest therein.
(6) To borrow
			 money at such rate of interest, not to exceed the lawful rate set pursuant to
			 chapter 55 of the laws of 1968, to mortgage or pledge its property, both real and
			 personal, and to secure the payment of its obligations.
(7) To pay dividends on its capital stock at a
			 rate not to exceed 8 per annum and to pay or to provide for the payment of its debts
			 and other obligations.
(8) To elect
			 officers, appoint agents, engage employees, define their duties and fix their
			 compensation.
(9) To enter into
			 contracts for the purchase, acquisition, construction, reconstruction, maintenance,
			 operation and management of housing projects and for the purchase of equipment,
			 materials and supplies, necessary or incidental to these purposes.
(10) To lease, sell or exchange all of its
			 corporate assets with the consent of 2/3 of all the outstanding capital stock of the
			 corporation at any annual meeting or at any special meeting called for that
			 purpose.
(11) To accept loans or grants
			 from the Federal Government, the State or any municipal subdivision thereof in aid
			 of housing projects owned or to be acquired or constructed by the
			 corporation.
(12) To make by-laws not
			 inconsistent with the laws of the State for the administration of the business and
			 interests of such corporation and to amend the same.
(13) To cease doing business in this State and to
			 surrender its charter.
(14) To obtain,
			 or aid in obtaining, from the Federal Government, any insurance or guarantee or
			 commitment therefore, as to, or for, the payment or repayment of interest or
			 principal, or both, or any part thereof, on any loan or other extension of credit,
			 or any instrument evidencing or securing the same, obtained or to be obtained or
			 entered into by it; and to enter into any agreement, contract or any other
			 instrument whatsoever with respect to any such insurance or guarantee.
(15) To have and exercise all the powers necessary
			 and convenient to carry into effect the purpose for which the corporation is formed.
The authority may make the exercise of any of the rights, powers and
				privileges of housing corporations set forth in this section subject to its prior
				approval.
55:16-8.1 Discrimination
For all of the purposes of the act to which this act is a
				supplement, no person shall, because of race, religious principles, color, national
				origin or ancestry, be subject to any discrimination.
55:16-9 Stocks and obligations to be issued only for money or
				property
No housing corporation shall issue stock, bonds or other obligations
				except for money or property actually received by it for its use and lawful
				purposes. No stocks, bonds or other obligations shall be issued except upon a
				valuation approved by the Authority.
55:16-9.1 Formation of housing association; certificate;
				contents
Any one or more persons of the State may form a housing association
				for the aforesaid purpose by making, signing, acknowledging and filing a certificate
				of organization, which certificate shall be filed with the office of the clerk of
				the county in which the principal place of business of said housing corporation
				shall be situated. The said certificate shall, in addition to the requirements of
				any other law to which it is subject, contain the following matters:
(1) The name of the proposed housing
			 association.
(2) The purposes for which
			 it is formed, which shall be to acquire, construct, maintain and operate housing
			 projects as authorized under this act and the act to which this is a
			 supplement.
(3) Its duration.
(4) The value and nature of each proprietary
			 interest and an agreement that the owner thereof and his or their heirs, successors
			 or assignees shall be bound to limit any return thereto to an amount not to exceed
			 8% per annum of the amount invested therein, except to the extent that such return
			 shall not have been paid in a previous year, or years, of operation, in which case
			 stockholders may be paid such deficiency without interest out of any surplus earned
			 in any succeeding years.
(5) The names
			 and addresses of any persons holding any proprietary interest and the value
			 thereof.
(6) A provision that no real
			 property of the housing association shall be sold, transferred, encumbered or
			 assigned except under and pursuant to the provisions of this act and the act to
			 which this is a supplement and the regulations of the authority issued
			 hereunder.
(7) Any other provisions, not
			 inconsistent with this act or the act to which this is a supplement or other law for
			 the regulation of the business and the conduct of the affairs of the housing
			 association.
(8) A declaration that the
			 housing association has been organized to serve a public purpose and use; that its
			 operations shall be directed to providing for and making possible the clearance,
			 planning, development or redevelopment of blighted areas; and that it will at all
			 times be subject to the supervision and control of the authority until and unless
			 released therefrom in accordance with procedures set forth in section 1 of chapter
			 69 of the laws of 1950 (C.55:16-22).
The said certificate shall be subject to approval by the authority
				as provided by section 7 of the act of which this act is amendatory and
				supplementary (C.55:16-7).
55:16-9.2 Rights, powers and privileges of housing
				association
Subject to the requirements, limitations and restrictions set forth
				in this act and the act to which this is a supplement, any housing association may
				be may be organized under the provisions governing partnerships, limited
				partnerships, or limited partnership associations, trust, single proprietorships, or
				as unincorporated business associations and, except to the extent inconsistent
				herewith, may exercise any of the powers, and enjoy any of the rights and
				privileges, provided therefore by statute or law and shall, in addition, have the
				following express powers:
(1) To enter into
			 contracts for the purchase, acquisition, construction, reconstruction, maintenance,
			 operation and management of housing projects and for the purchase of equipment,
			 materials and supplies necessary or incidental to these purposes.
(2) To lease, sell or exchange all of its capital
			 assets with the consent of at least 2/3 in value of the holders of the proprietary
			 interest in the said housing association at any meeting called to vote
			 thereon.
(3) To accept loans or grants
			 from the Federal Government, the State or any municipal subdivision thereof in aid
			 of housing projects owned or to be acquired or constructed by the
			 association.
(4) To obtain, or aid in
			 obtaining, from the Federal Government, any insurance or guarantee or commitment
			 therefore, as to, or for, the payment or repayment of interest or principal, or
			 both, or any part thereof, of any loan or other extension of credit, or any
			 instrument evidencing or securing the same, obtained or to be obtained or entered
			 into by it; and to enter into any agreement, contract or any other instrument
			 whatsoever with respect to any such insurance or guarantee.
The authority may make the exercise of any of the rights, powers and
				privileges of housing associations set forth in this section or referred to herein,
				subject to its prior approval.
55:16-9.3 Interest or obligations to be issued only for money
				or property
No interest in any housing association or obligation thereof shall
				issue or be created except for money or property actually received by it for its use
				and lawful purposes. No proprietary interest therein or other obligation shall be
				issued or created for property except upon a valuation approved by the
				Authority.
55:16-10 Public utilities, activity competitive with
				prohibited
No housing corporation or housing association shall engage in any
				activity competitive with any public utility as defined in section 48:2-13 of the
				Revised Statutes.
55:16-11 Authority, powers of
The Authority, subject to the approval of the council, shall have
				the power to make, amend, modify and repeal rules and regulations to effectuate the
				purposes of this act and to supervise the operation of any housing corporations or
				housing associations thereunder. The authority shall also have the power to
				supervise the planning, development and management of any housing project undertaken
				by such corporation or housing association under this act or any act supplemental
				thereto. The functions, powers and duties conferred upon the authority by this act
				shall, subject to rules and regulations referred to herein, be exercised by the
				administrator.
55:16-12 Application to authority for approval of
				project
Every corporation or housing association organized under this act,
				before purchasing, acquiring or undertaking any project herein authorized, shall
				make written application to the authority for approval thereof. Said application may
				be made at the same time as the application for the approval of its certificate of
				incorporation or, if unincorporated, certificate of organization, and shall be in
				such form, and certify as to such facts and data, as to justify approval; and shall
				contain such other information as the authority may require, including but not
				limited to:
(1) A statement by the
			 governing body of the municipality in which the project be located certifying that
			 the project will meet, or meets, an existing housing need, that it conforms to the
			 requirements of all applicable municipal ordinances, and that the governing body
			 approves of the development or acquisition of the property.
(2) A description of the project, including such
			 architectural and site plans as may be required.
(3) A statement of the cost or purchase price of
			 the project, in such detail as may be required.
(4) The source, method and amount of money to be
			 raised through the investment of private capital, setting forth the amount of stock
			 or other securities to be issued therefore.
(5) A fiscal plan for the project giving the
			 schedule of rents, the estimated expenditures for operation and maintenance,
			 payments to the municipality, either for taxes or service charges, and for interest,
			 amortization and reserves.
(6) A
			 statement showing that adequate light, air and open spaces will be provided and that
			 the project will conform to reasonable standards of safety and sanitation.
55:16-13 Approval by authority of incorporation certificate
				of organization or housing projects
The authority shall have full and complete power to hear and
				consider, or refuse to consider, all applications for incorporation as a housing
				corporation or for approval of a certificate of organization as a housing
				association under this act and all applications for housing projects to be
				purchased, acquired or undertaken by housing corporations. During or after such
				hearing, the authority shall have power to approve or disapprove any such
				incorporation or certificate of organization or housing project.
55:16-14 Approval of purchase, acquisition or construction of
				housing project
The authority shall approve the purchase, acquisition or
				construction of a housing project by a housing corporation or housing association
				only under the following conditions:
(1)
			 That the project is within an area where, under the conditions existing at the time,
			 dwellings conforming to reasonable standards of adequacy and renting at or below the
			 average rent to be charged in the project, are not being provided in sufficient
			 quantity through the ordinary operation of private enterprise.
(2) That there has been presented to the
			 authority, in such form and with such proof as it may require, a financial plan
			 covering the cost of lands and improvements and operation of the project, such as
			 shall reasonably assure the successful completion and operation of the project in
			 accordance with the purposes of this act.
55:16-15 Conditional approval; designation of trustee;
				authority of trustee
The approval of every such application may also be conditional on
				the acceptance by the housing corporation of a designee of the Authority as a member
				of the board of directors of the corporation. A further condition may be that the
				corporation shall agree to the designation of a trustee (which shall be a banking
				corporation authorized to perform trust functions) by the Authority with respect to
				any housing project approved by it. Such trustee may be authorized to receive moneys
				of the corporation obtained as proceeds of its mortgage bonds, notes, stock or other
				securities, or as rent or other income of any project, and make payment therefrom
				for acquisition of land, construction or improvements, for charges of operation and
				maintenance and for other items related to these costs, upon presentation of draft,
				check or order signed by a proper officer of the corporation and countersigned by
				the said Authority or a person designated by it for such purpose. Said trustee may
				be authorized by the Authority to act with reference to the construction of a
				project or to the operation of a project or to any combination or part
				thereof.
55:16-16 Supervision of housing corporations and
				associations
Notwithstanding the provisions of any other law to the contrary, the
				authority shall have the power to supervise housing corporations or housing
				associations and their real and personal property in the following respects:
(1) The authority may prescribe uniform systems of
			 accounts and records for housing corporations or housing associations and may
			 require them to make reports and give answers to specific questions on such forms,
			 and at such times, as maybe necessary for the purposes of this act.
(2) Through its agents or employees, the authority
			 may enter upon and inspect the lands, buildings and equipment of a housing
			 corporation or housing association, including all parts thereof, and may examine all
			 books and records with reference to capital structure, income, expenditures and
			 other payments of a housing corporation or housing association.
(3) The authority may supervise the operation and
			 maintenance of any project of a housing corporation or housing association and may
			 order such repairs as may be necessary to protect the public interest or the health,
			 welfare or safety of the project occupants.
(4) The authority may fix, and alter from time to
			 time, a schedule of rents and charges for any project of a housing corporation or
			 housing association.
(5) The authority
			 may determine standards for, and may control, tenant selection by a housing
			 corporation or housing association.
(6)
			 The authority may require any housing corporation or housing association to pay to
			 the authority such fees as it may prescribe, subject to any regulations of the
			 council, in connection with the examination, inspection, supervision, auditing, or
			 other regulations of the housing corporation or housing association.
(7) The authority may order any housing
			 corporation or housing association to do, or to refrain from doing, such things as
			 may be necessary to comply with the provisions of law, the rules and regulations of
			 the authority, and the terms of any contract or agreement to which the corporation
			 or association may be a party.
(8) The
			 authority may regulate the retirement of any capital investment on the redemption of
			 stock where any such retirement or redemption, when added to the dividend or other
			 distribution, shall exceed in any one fiscal year 8% of the original face amount of
			 any investment in any housing corporation or housing association.
55:16-17 Action by authority; receiver; reorganization;
				foreclosure actions; judicial sales
The authority may institute any proceeding or action against any
				housing corporation or housing association in any court of competent jurisdiction in
				order to enforce the provisions of this act or the regulations of the authority
				thereunder approved by the council, or to foreclose its mortgage, or to protect the
				public interest, the tenants, the stockholders of the housing corporation or its
				creditors or persons holding any proprietary interest in any housing association. In
				connection with any such suit, it may apply for the appointment of a receiver to
				manage, operate, and take over the affairs of said housing corporation or housing
				association and the administrator is hereby authorized to accept appointment as
				receiver of any such housing corporation or housing association when so appointed by
				a court of competent jurisdiction.
Reorganization of any housing corporation or housing association
				shall be subject to the supervision and control of the authority and no such
				reorganization shall be had without the consent of the authority. Upon all such
				reorganizations, the amount of capitalization, including therein all stocks, income
				debentures and bonds or, in the case of a housing association, the proprietary
				interests therein, and other evidence of indebtedness shall be such as is authorized
				by the administrator which, in making his determination, shall not exceed the fair
				value of the property involved.
In any foreclosure action, other than a foreclosure action
				instituted by the authority, the authority and the municipality in which any tax
				exemption or abatement is provided any housing corporation or association, in
				addition to other necessary parties, shall be made parties defendant; and the
				authority and the municipality shall take all steps in such action necessary to
				protect the interest of the public therein, and no costs shall be awarded against
				the authority or the municipality. Subject to the terms of any applicable contract,
				agreement, guarantee or insurance entered into or obtained pursuant to subsection
				(14) of section 8 hereof, judgment of foreclosure shall not be entered unless the
				court to which application therefor is made shall be satisfied that the interest of
				the lien-holder or holders cannot be adequately secured or safeguarded except by the
				sale of the property; and, in any such proceeding, the court shall be authorized to
				make an order increasing the rentals to be charged for the housing accommodations in
				the project involved in such foreclosure, or appoint the administrator or any
				officer of the municipality in which any tax exemption or abatement with respect to
				the project is provided, as a receiver of the property, or grant such other and
				further relief as may be reasonable and proper; and, in the event of a foreclosure
				sale or other judicial sale, the property shall be sold only to a housing
				corporation or housing association which will maintain, operate and manage the
				project subject to the provisions of this act and the regulations of the authority,
				approved by the council, issued hereunder, unless the court shall find that the
				interest and principal on the obligations secured by the lien the subject of
				foreclosure cannot be earned under the limitations imposed by the provisions of this
				act and that the proceeding was brought in good faith, in which event the property
				may be sold free of limitations imposed by this act, or subject to such limitations
				as the court may deem advisable to protect the public interest.
In the event of a judgment against any housing corporation or
				housing association in any action not pertaining to the foreclosure of a mortgage,
				there shall be no sale of any of the real property of such housing corporation
				except upon 60 days' written notice to the authority. Upon receipt of such notice,
				the administrator shall take such steps as, in his judgment, may be necessary to
				protect the right of all parties.
55:16-18 Exemption of project from taxation; annual service
				charge
When the governing body of any municipality in which a project of a
				housing corporation or housing association is or will be located, by resolution
				finds that the project is, or will be, an improvement made for the purposes of the
				clearance, re-planning, development or redevelopment of any blighted area (as
				defined in any law of this State) within such municipality, or for any of such
				purposes, then such project and improvement shall be exempt from all property
				taxation; provided, that in lieu of taxes, the housing corporation or housing
				association owning said project shall make to the municipality payment of an annual
				service charge for municipal services supplied to said project, in such amount, not
				exceeding the tax on the property on which the project is located for the year in
				which the undertaking of the project is commenced or 15% of the annual gross shelter
				rents obtained from the project, whichever is the greater, as may be agreed to by
				the municipality and the housing corporation or housing association and approved by
				the authority. Any exemption from taxation made pursuant to the provisions of this
				section shall not extend for a period of more than 50 years and shall only be
				effective during the period of usefulness of the project, as determined by the
				authority, and shall continue in force only while the project is owned by a housing
				corporation or housing association formed under this act and regulated by the
				authority or owned and operated by the authority.
55:16-18.1 Subsidy to corporation or association; purpose;
				ordinances
The governing body of any municipality in which a project of a
				limited-dividend housing corporation or housing association is located may, by
				ordinance, provide for the payment of money as a subsidy to such limited dividend
				housing corporation or housing association for the purpose of acquiring land for
				such project. Every such ordinance shall specify the amount or amounts of such
				payments, the time or times they are payable, and the terms and conditions of such
				payments.
55:16-19 Laws applicable to housing corporations; exemption
				from franchise and other state taxes
The provisions of law applicable to stock corporations organized
				under the laws of this State shall apply to housing corporations incorporated under
				this act, except where such provisions are in conflict herewith; provided, however,
				that the Authority may make the exercise of any rights powers and privileges
				thereunder subject to its prior approval.
Housing corporations organized under the provisions of this act
				shall be exempt from payment of any franchise or other State tax.
55:16-20 Partial invalidity
If any clause, sentence, subdivision, paragraph, section or part of
				this act be adjudged by any court of competent jurisdiction to be invalid, such
				judgment shall not affect, impair or invalidate the remainder hereof, but shall be
				confined in its operation to the clause, sentence, subdivision, paragraph, section
				or part hereof directly involved in the controversy in which said judgment shall
				have been rendered.
55:16-21 Broad interpretation of powers
The powers enumerated in this act shall be interpreted broadly to
				effectuate the purposes hereof and shall not be construed as a limitation of
				powers.
55:16-22 Release of corporation or association from
				restrictions and limitations
Notwithstanding any provision of the act to which this act ( P.L.
				1950, c.69) is supplemental to the contrary, any limited-dividend housing
				corporation or association organized in accordance with the provisions of said act
				may, at any time after the expiration of 15 years from the date of first tenant
				occupancy of any duly approved housing project of such corporation or association,
				apply to the authority for permission to be released from the restrictions and
				limitations imposed upon it under said act. The authority may approve the
				application provided it is consented to, by resolution, by the governing body of
				each municipality in which tax exemption has been granted to any housing project of
				such corporation, after a finding, by resolution of such governing body, that there
				no longer exists any housing shortage in the municipality by reason of which the
				project was originally approved. A duly certified copy of each of such resolutions
				shall be submitted to the authority. Upon the approval of such application by the
				authority, any tax exemption granted to such housing corporation or association, or
				any project or improvement thereof, shall terminate, and such corporation or
				association and the projects thereof shall not thereafter be subject to the
				restrictions and limitations imposed thereon by the act to which this act is a
				supplement. In such event, any surplus of such corporation or association then
				remaining, in excess of the amount required for the repayment of the face amount of
				investments of stockholders in the capital stock of such corporation or of persons
				holding any proprietary interest in any housing association, plus any cumulative
				dividends or return on investment at a rate not to exceed 8% per annum, shall be
				paid to the State of New Jersey; provided, however, that the authority may enter
				into agreements with any municipality where tax exemption has been provided,
				pursuant to section 18 of the act to which this act is a supplement, with respect to
				any project or projects of such housing corporation or association, for the
				distribution to, and apportionment of, said surplus between the State and the
				municipality.