§ 31. Mass transportation demonstration projects. The commissioner shall have power to sponsor, conduct and undertake mass transportation demonstration projects which will assist in carrying out urban transportation plans and research, including but not limited to the development of data and information of general applicability on the reduction of urban transportation needs, the improvement of mass transportation service, and the contribution of such service toward meeting total urban transportation needs at minimum cost, and in connection therewith to enter into contracts and otherwise cooperate with the federal government pursuant to section one hundred three (b) of the housing act of nineteen hundred forty-nine, as amended or section six of the urban mass transportation act of nineteen hundred sixty-four, as amended. For the purposes of this section the commissioner may enter into contracts or agreements with any person, firm, corporation or governmental agency.

Any real property which the commissioner deems necessary for the purposes of this section may be acquired and disposed of by him in the name of the people of the state of New York according to the procedure provided in the highway law for the acquisition and disposition of property for state highway purposes. The provisions of the highway law shall also control the meaning of property as used herein, the manner in which possession of such property may be obtained and the circumstances under the procedure by which it may be sold or exchanged. Adjusted claims for such acquisition and awards and judgments of the court of claims made in respect thereto shall be paid out of the state treasury from moneys available for the purposes of this section. The construction of improvements by the commissioner in connection with a demonstration project, and the design of such improvements, shall be carried on, generally, in the same manner and subject to the same provisions of law as apply to the design and construction of state highways. The department of taxation and finance is hereby designated to accept and receive all grants or advances from the federal government for the purposes of this section. All monies so accepted and received shall be deposited by the department of taxation and finance in a special fund for use exclusively for the purposes for which such grants or advances were made. Payment from the said fund shall be made upon audit and warrant of the comptroller upon vouchers approved by the commissioner. The commissioner is hereby authorized to present any claim to the federal government or any agency or official thereof with respect to the funds made available pursuant to section one hundred three (b) of the housing act of nineteen hundred forty-nine, as amended or section six of the urban mass transportation act of nineteen hundred sixty-four, as amended.