§ 83. Execution of housing company projects. No building or construction shall be undertaken by any housing company without the approval of the commissioner. Such approval shall be conditioned upon:

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1. The submission of a plan in such form and with such assurances as the commissioner may prescribe, to raise at least twenty per centum of the actual cost of the lands and improvements through investment in the capital of such housing company together with the sale of income debentures, where provided for by such plan; and to raise the balance by mortgage bonds which shall not exceed eighty per centum of the actual cost of the said project. The plan may provide for the raising of working capital in an amount to be approved by the commissioner not to exceed three per centum of the actual cost through investment in the capital and sale of income debentures of the housing company. Wherever reference is made in this article to cost of projects, or of buildings and improvements in projects, such cost shall include charges for financing and supervision approved by the commissioner, including a reasonable proportion to be fixed by the commissioner, of the expenses of the commissioner, applicable to the examination and supervision of the project, and carrying charges during construction required in the project, including interest on borrowed, and where approved by the commissioner, on invested capital. Notwithstanding the provisions of any other general, special or local laws, all moneys payable by the project to reimburse the commissioner for his expenses applicable to the examination and supervision of the project during construction as herein provided shall be paid to the executive department.

2. The acceptance of a designee of the commissioner as a member of the board of directors of said housing company. In the case of all mutual companies an additional director shall be designated by the commissioner at the creation of the company and shall serve from the time of such designation at least until a board of directors has been elected by the tenants entitled to occupancy in the project by reason of ownership of shares in such company. Such directors appointed by the commissioner need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or the by-laws. In the absence of fraud or bad faith the director appointed by the commissioner shall not be personally liable for the debts, obligations or liabilities of the corporation.

3. The approval by the commissioner of the plans, specifications and estimated costs of the proposed housing facilities in respect to the conformity thereof to reasonable standards of health, sanitation, safety and provision for light and air.

4. When required by the commissioner, and except in the case of a housing company which is a subsidiary of the New York state urban development corporation, created by the New York state urban development corporation act, the designation by the commissioner with respect to each project approved by him of a trustee, which shall be a banking corporation authorized to perform trust functions, and such trustee shall receive moneys received by the housing company as its capital, or as proceeds of its mortgage bonds, notes or income debentures and make payment therefrom for the acquisition of land, the construction of improvements and other items entering into cost of land and improvements upon presentation of draft, check or order signed by a proper officer or designee of the housing company and countersigned by the said commissioner or a person designated by him for said purpose. Any funds remaining in the custody of said trustee after the completion of the said project and payment or arrangement in a manner satisfactory to the commissioner for payment in full therefor shall be paid to the housing company.

5. No such project shall be approved in contravention of any planning, zoning, sanitary and building laws, ordinances and regulations applicable to the municipality in which the project is situated.

6. Notwithstanding the provisions of subdivision five hereof, no state urban development corporation project shall be approved unless it complies 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 no such project shall be approved unless it complies with the requirements of the state building construction code, formulated by the state building code council pursuant to Article 18 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.