If the legislative body of a community approves a development plan for an area, the city or town or the redevelopment agency may cooperate with the educational institution of higher learning, hospital, private redevelopment corporation, municipal or public corporation, or authority in carrying out the approved development plan, and, for this purpose, may contract with the hospital, educational institution, corporation, or authority for the exercise of any of the powers of the city or town or the redevelopment agency. Any city or town or any redevelopment agency, educational institution of higher learning, and, when so authorized by the city or town, any educational institution of higher learning, or hospital, established and maintained by any city or town or any hospital may do all things and may take actions that may be necessary or desirable to assure that the community or the redevelopment agency obtains credit as a local grant in aid for the aggregate amount of expenditures made by any educational institution, hospital, corporation, or authority which would be eligible under title I of the Housing Act of 1949, as amended mostly omitted by 42 U.S.C. § 5316, which terminated the authority to make most grants or loans after January 1, 1975; see, however, 42 U.S.C. § 1452c.