Section 8. The construction of all buildings upon a project shall be inspected by competent persons chosen by the housing board to the extent necessary to make certain that such construction is in conformity with the application as approved. Every such corporation shall be deemed to have been organized to serve a public purpose, and shall remain at all times subject to all reasonable rules and regulations applicable to its project. All real estate acquired by any such corporation and all structures erected by it shall be deemed to be acquired or erected for the purpose of promoting the public health, safety and welfare and shall be subject to the provisions of this chapter.

If the housing board shall find that a corporation has violated any of the provisions of this chapter or the requirements thereunder with respect to the construction and financing of a project, or to the payments therefor, or that the rules and regulations applicable to a project have not been complied with, or that a project is not maintained in such a way as to carry out the purpose for which it was designed, or that strip or waste caused by unreasonable use or abuse of the buildings, structures or facilities thereon exist, it shall notify the holders of any mortgages, or mortgage bonds thereon, or the trustee, if any, for the bondholders, and it may institute a proceeding in equity in its own name for the purpose of preventing, or requiring, as the case may be, by injunction or otherwise, any such act or failure or omission to act. The remedies provided in this section shall be in addition to and not in substitution for any other available remedies.