Section 26-B. Special provisions with respect to state urban development corporation projects

1. No loan shall be made by  the  state,  the  New
  York  state  housing  finance  agency,  or  the  state urban development
  corporation   for   the   acquisition,   construction,   reconstruction,
  rehabilitation  or  improvement of a state urban development corporation
  project, nor shall any such project be  approved  by  the  commissioner,
  unless the commissioner finds that:
    (a)  the estimated revenues of the project will be sufficient to cover
  all probable costs of all operations and maintenance, of  fixed  charges
  and operating reserves and depreciation reserves, if any;
    (b) the plans and specifications of the project assure adequate light,
  air, sanitation and fire protection;
    (c)  the  project  is  in  conformity  with  a plan or undertaking for
  providing low rent housing facilities for persons of low income and  for
  the   clearance,  replanning,  reconstruction  or  rehabilitation  of  a
  substandard and insanitary  area  or  areas  and  for  other  facilities
  incidental   or   appurtenant   thereto   as  may  be  approved  by  the
  commissioner.
    2. Any state urban development corporation project shall  comply  with
  the   requirements   of  local  laws,  ordinances,  codes,  charters  or
  regulations   applicable   to    the    construction,    reconstruction,
  rehabilitation,  alteration or improvement of such project, except where
  the state urban development corporation, in its discretion,  finds  such
  compliance  not  feasible  or  practicable,  in which event such project
  shall comply with the requirements of the  state  building  construction
  code,  formulated by the state building code council pursuant to article
  eighteen  of  the  executive  law,  applicable  to  such   construction,
  reconstruction,  rehabilitation,  alteration  or improvement. No county,
  city, town or village shall have power to modify or change the drawings,
  plans  or   specifications   for   the   construction,   reconstruction,
  rehabilitation,  or improvement of any such project or the construction,
  plumbing, heating, lighting or other mechanical branch of work necessary
  to complete the work in question, nor to require that any  person,  firm
  or  corporation employed on any such work shall perform any such work in
  any other or different manner than  that  provided  by  such  plans  and
  specifications, nor to require that any such person, firm or corporation
  obtain   any   other   or  additional  authority,  approval,  permit  or
  certificate from such county, city, town or village as  a  condition  of
  doing such work, nor shall any condition whatever be imposed by any such
  county,  city,  town  or village in relation to the work being done, and
  the doing of any such  work  by  any  person,  firm  or  corporation  in
  accordance  with  the  terms  of such drawings, plans, specifications or
  contracts shall not subject said person,  firm  or  corporation  to  any
  liability  or penalty, civil or criminal, other than as may be stated in
  such contracts or incidental to  the  proper  enforcement  thereof;  nor
  shall  any  county, city, town or village have power to require that any
  subsidiary of the New York state urban development corporation,  or  any
  lessee  therefrom  or successor in interest thereto, obtain any other or
  additional authority, approval, permit, certificate  or  certificate  of
  occupancy  from  such  county,  city,  town or village as a condition of
  owning, using, maintaining, operating or occupying any project acquired,
  constructed,  reconstructed,  rehabilitated  or  improved  by  any  such
  subsidiary of the New York state urban development corporation.
    3. Notwithstanding any other provision of this article, in the case of
  a state urban development corporation project financed or to be financed
  by  a loan from the state urban development corporation, the corporation
  shall exercise, with respect to such project and  with  respect  to  the
  company  carrying  out  such  project,  all  of  the  powers  and duties

  exercised by the commissioner pursuant to this article with  respect  to
  projects  financed  by  the  New York state housing finance agency until
  such project, or any part thereof, is ready  for  initial  occupancy  as
  determined by the commissioner, and thereafter, upon the issuance by the
  commissioner of a certificate of assumption of supervision, such project
  shall  be subject to the supervision and control of the commissioner and
  the New York state division of  housing  and  community  renewal,  which
  shall  have  the  same  powers and responsibilities with respect to such
  project as they would have if such project were aided by a loan from the
  state or the New York state housing finance agency  under  this  article
  and  which  shall assume the additional powers and responsibilities with
  respect to such project theretofore conferred on the corporation by  law
  or  contract.  The  corporation  and  the  commissioner  of  housing and
  community renewal shall take such actions and execute such documents  as
  may be necessary to implement this subdivision.