(a) Except in the case of a limited profit housing company or a limited dividend housing company organized under the provisions of articles 2 and 4, respectively, of the Private Housing Finance Law, the agency may designate one or more sponsors as “qualified and eligible”. A designation shall not carry with it any preference. If only one sponsor is designated for the whole project, or for a particular parcel, publication of notice of availability of Redeveloper's Statement for Public Disclosure shall precede approval of the designation by the governing body.

(b) In addition to sponsors designated by the agency as qualified and eligible, the governing body may submit the names of other interested sponsors to the agency for its determination as to whether they are qualified and eligible.

(c) The governing body may thereafter proceed to approve the designated sponsor as qualified and eligible, by ordinance or resolution. The governing body may not approve a sponsor not designated as qualified and eligible by the agency.

(d) Such “designation” or approval may take place at any time after the approval of the urban renewal plan by the planning commission and the governing body, establishment of the “rules and procedures”, and filing such rules and procedures with the commissioner, without regard to whether or not acquisition has yet taken place.