(a) The board of trustees of the University of Tennessee and the state university and community college system, or either of them, are authorized to enter into all necessary or proper contracts with the federal government or any of its agencies, bureaus or departments, and with local housing authorities, other local agencies and others, for the undertaking and completion of urban renewal projects adjacent to the campus of any institution of higher education under the jurisdiction of the board or system pursuant to the urban renewal provisions of § 112 of Title 1 of the Federal Housing Act of 1949, or pursuant to any other act of congress heretofore or hereafter enacted.

(b)

(1) The board of trustees or the state university and community college system, or both of them, are authorized and empowered to make application to the appropriate federal, state and local agencies and authorities for funds for surveys of areas for urban renewal projects adjacent to campuses of state-supported colleges and universities and for undertaking and completing urban renewal projects that may be mutually agreed upon by the board or system and the appropriate federal, state and local agencies and authorities.

(2) The proceeds of the bonds authorized by Acts 1961, ch. 208, or any part of the proceeds as may be necessary, shall be used and expended to defray the institution's share of the net project cost and the cost of the purchase of the renewed land, as required by the federal statutes and regulations, in the event that federal matching funds shall be made available for an urban renewal project or projects.