CHAPTER 241 - STATE HOUSING BOARD AND HOUSING AUTHORITY
AN ACT TO AMEND CHAPTER 160 OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO HOUSING, BY PROVIDING THAT HOUSING AUTHORITIES, THEIR PROPERTY AND SECURITIES SHALL BE EXEMPT FROM TAXATION AND ASSESSMENTS, BUT TO AUTHORIZE CERTAIN PAYMENTS IN LIEU OF TAXES; BY PROVIDING FOR THE EXEMPTION OF THE REAL PROPERTY OF HOUSING AUTHORITIES FROM EXECUTION SALE; AND BY PROVIDING FOR THE FORM AND SALE OF BONDS AND OTHER OBLIGATIONS OF HOUSING AUTHORITIES.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That Chapter 160 of the Revised Code of Delaware, 1935, entitled "State Housing Board and Housing Authority" be and the same is hereby amended by adding immediately after 5471, Section 48, thereof, as part of the Housing Authority Law, the following new sections, to-wit:
5471A. Sec. 48A. Tax Exemption and payments in Lieu of Taxes: The property of an authority is declared to be public property used for essential public purposes and such property and an authority shall be exempt from all taxes and assessments of the city, the county, the State or any political subdivision thereof; provided, however, that in lieu of such taxes an authority may agree to make payments to such city or county for improvements, services and facilities furnished by such city or county for the benefit of a housing project, but in no event shall such payments exceed the amount last levied as the annual tax of such city or county upon the property included in said project prior to the time of its acquisition by the authority. Bonds and other obligations of an authority are declared to be issued for an essential public and governmental purpose and to be public instrumentalities, and together with interest thereon and income there from, shall be exempt from taxes.
5471B. Sec. 48B. Exemption of Property from Execution Sale: All real property of an authority shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall judgment against an authority be a charge or lien upon its real property; provided, however, that the provisions of this section shall not apply to or limit the right of bondholders or other obligees of an authority to pursue any remedies for the enforcement of any pledge or lien given to them on its rents, fees or revenues or any mortgage of, or agreement to sell, a project or projects given as security for any bonds or other obligations of the authority.
5471C. Sec. 48C. Form and Sale of Bonds: Bonds, notes and certificates of indebtedness of an authority may be issued in one or more series, may bear such date or dates, may mature at such time or times from their respective dates, may bear interest at such rate or rates not exceeding six per centum (6%) per annum, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption, with or without a premium, may be declared or become due before the maturity date thereof, may provide for the replacement of mutilated, destroyed, stolen, or lost bonds, may be authenticated in such manner and upon compliance with such conditions, may be payable from such income of the authority upon such terms, may be secured in such manner, may provide for such rights and remedies upon their default, and may contain such other covenants, terms and conditions (including, without being limited to the foregoing) as may be provided by resolution or resolutions of the authority or any trust indenture authorized thereby. Notwithstanding the former tenor thereof, and in the absence of an express recital on the face thereof that the bonds or notes are non-negotiable, all bonds of an authority shall at all times be, and shall be treated as negotiable instruments for all purposes. Such bonds, notes and certificates shall be sold at not less than par at public sale held after notice published once at least five days prior to such sale in a newspaper having a general circulation in the city or county and in a financial newspaper published in the City of Wilmington, Delaware, or in the City of New York, New York; provided, that such bonds and other obligations may be sold to the Federal Government or any agency thereof at private sale at not less than par.
Section 2. That notwithstanding any other evidence of legislative intent, it is hereby declared to be the controlling legislative intent that if any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.
Section 3. That insofar as the provisions of this Act are inconsistent with the provisions of any other law, the provisions of this Act shall be controlling.
Section 4. That this Act shall become effective from and after its passage and approval by the Governor.
Approved April 15, 1941.