The board of directors of a joint authority is hereby authorized to make application and to enter into contracts for and to accept grants-in-aid and loans from the federal and state governments and their agencies for planning, acquiring, constructing, expanding, maintaining, and operating any project or facility, or participating in any research or development program, or performing any function which such joint authority may be authorized by general or local law to provide or perform.

In order to exercise the authority granted by this section, the board of directors of a joint authority may:

(1) Enter into and carry out contracts with the state or federal government or any agency or institution thereof under which such government, agency, or institution grants financial or other assistance to the joint authority;

(2) Accept such assistance or funds as may be granted or loaned by the state or federal government with or without such a contract;

(3) Agree to and comply with any reasonable conditions which are imposed upon such grants or loans; and

(4) Make expenditures from any funds so granted.