Section 111-B. Mortgage modification provisions for redevelopment companies in cities with a population of one million or more

1. For  purposes  of
  this   section,   "restrictive  agreement"  shall  mean  a  binding  and
  irrevocable  agreement  between  the  redevelopment  company   and   the
  supervising  agency providing that such redevelopment company for a term
  of five years from the date of such agreement (i) shall not  voluntarily
  dissolve or reconstitute pursuant to section one hundred twenty-three of
  this article, (ii) shall exercise any and all available options to renew
  any  housing  assistance  payments contract pursuant to section eight of
  the United States Housing  Act  of  nineteen  hundred  thirty-seven,  as
  amended,  and  any successor rent subsidy program, (iii) shall not cause
  such a contract  to  be  terminated  by  reason  of  such  redevelopment
  company's  noncompliance  with  any of the terms thereof, and (iv) shall
  not voluntarily cause or permit such a contract to  expire,  to  not  be
  extended, to not be renewed, or to be terminated.
    2. Notwithstanding the provisions of this article or the provisions of
  any  law, general or special, in cities with a population of one million
  or more, a redevelopment company with a federally-aided mortgage  formed
  pursuant  to  this  article  may  borrow  funds and secure the repayment
  thereof by note and  mortgage  or  any  other  manner  approved  by  the
  supervising  agency,  provided,  however,  that (a) such approval by the
  supervising agency shall be conditioned upon  a  restrictive  agreement,
  and  (b)  such  redevelopment company may not increase the rents paid by
  the tenants to pay for any such increase in  indebtedness  that  is  not
  attributable to project cost.