Any State public body shall have the same rights and powers to cooperate with housing authorities or with the Federal Government with respect to the development or administration of projects to provide safe and sanitary dwellings for persons engaged in national defense activities that such state public body has for the purpose of assisting the development or administration of slum clearance or housing projects for persons of low income: Provided, That any State public body may enter into any agreements to receive payment for any general services, facilities, works, privileges or improvements furnished by it for or in connection with any such projects: And provided further, That any city, incorporated town or borough may furnish the aforesaid cooperation to such projects located within the territorial boundaries of such city, incorporated town or borough, or within five miles thereof, and not within the boundaries of any other city, incorporated town or borough, and any State public body may furnish the aforesaid cooperation within the territorial boundaries of the State public body for any such projects located within the territorial boundaries of such State public body or within five miles of such boundaries.