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SECTION 34860-34879

34860. When authorized by the commission, a corporation may:
(a) Borrow money from, or sell, pledge, or discount its securities
to, the Reconstruction Finance Corporation, Federal Home Loan Bank,
or any other corporation or agency established by the United States.

(b) Comply with the provisions for membership and become a member
of the Federal Home Loan Bank or any other corporation or agency
established by the United States.
(c) Comply with any regulations of the Reconstruction Finance

34861. A corporation shall not acquire any real property or
interest in it without first obtaining from the commission a
certificate approving the acquisition.

34862. Without the prior approval of the commission, a corporation
shall not sell, transfer, assign, or lease any real property to any
person, except that leases conforming to the regulations of the
commission may be made without its consent.

34863. A corporation shall not charge or accept any rental, fee, or
other charge for housing accommodations in any building constructed,
acquired, operated, sold, or managed by it in excess of the prices
prescribed by the commission.

34864. Without the prior consent of the commission, a corporation
shall not mortgage or otherwise encumber real property. It shall not
pay interest on such encumbrance in excess of an amount permitted by
the commission.

34865. A corporation shall not use any building erected or acquired
by it for other than housing purposes, except that:
(a) When permitted by law, and consented to by the commission, the
cellar and basement and the story above the cellar or basement may
be used for stores, commercial, cooperative, or community purposes.
(b) When permitted by law the roof of the building may be used for
cooperative or community purposes.

34866. A corporation shall not enter into contracts for the
construction of housing projects or for the payment of salaries to
officers or employees until the contracts have been approved by the

34867. A corporation shall not effect any reorganization, unless
authorized by the commission.

34868. A corporation shall not voluntarily dissolve or transfer all
or substantially all of its assets without first obtaining the
consent of the commission.

34869. A corporation shall not make any guaranty without the
approval of the commission.

34870. Any purchase, conveyance, contract, encumbrance, lease, or
sublease made in violation of this chapter and any transfer or
assignment of them is void.

34871. A corporation shall not start or undertake a housing project
without the approval of the commission.

34872. The commission shall not approve a housing project unless:
(a) It appears practicable to rent or sell the proposed housing
accommodations at prices not exceeding those prescribed by the
(b) The project conforms to the zoning or building ordinance of
the locality where it is located.
(c) There is submitted to and approved by the commission a
financial plan in the form and with the assurances prescribed by the
commission stating the method of making funds available for the
actual cost of the land and improvements. The plan may also provide
for the raising of working capital through the sale of its securities
in an amount to be approved by the commission, not to exceed 5
percent of the estimated cost of the project.

34873. The commission shall not approve a housing project unless
there is submitted to and approved by the commission, plans setting
(a) The area and location of the project.
(b) Plans of site development with plans, elevations, and
perspective of typical houses and groups of houses.
(c) Specifications and estimates of cost of the project.
(d) A reasonable scheme of protective restrictions and of
permanent maintenance of neighborhood and architectural control.

34874. When the commission has approved a project of a corporation
formed for the sole purpose of clearing or reconstructing slum areas,
the corporation may acquire the property necessary for the project
by gift, bequest, purchase, or eminent domain.

34875. The power of eminent domain shall not be exercised by a
corporation unless the commission has adopted a resolution of
necessity that satisfies the requirements of Article 2 (commencing
with Section 1245.210) of Chapter 4 of Title 7 of Part 3 of the Code
of Civil Procedure.

34879. It is declared that congested, unsafe, and unsanitary
housing conditions which exist in certain slum areas of this State
are a menace to the health, safety, morals, and reasonable comfort of
the residents of this State. The correction of these conditions is a
public necessity and the acquisition of property necessary to permit
the clearance and reconstruction of slum areas is declared to be a
public use within the meaning of the laws relating to proceedings in
eminent domain.


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