17-2346.   Operation of housing projects; nonprofit; fixing rentals;non-dwelling facilities, rental.It is hereby declared to be the policy of this state that eachmunicipality shall manage and operate its housing projects in an efficientmanner so as to enable it to fix the rentals or payments for dwellingaccommodations at low rates consistent with its providing decent, safe andsanitary dwelling accommodations for persons of low income and that nomunicipality shall construct or operate any housing project for profit, oras a source of revenue to the municipality. To this end the municipalityshall fix the rentals or payments for dwellings in its projects at nohigher rates than it shall find to be necessary in order to producerevenues which (together with all other available moneys, revenues, incomeand receipts in connection with or for such projects from whatever sourcesderived, including federal financial assistance) will be sufficient

      (a)   to pay, as the same become due, the principal and interest on thebonds issued pursuant to this act;

      (b)   to create and maintain such reserves as may be required to assurethe payment of principal and interest as it becomes due on such bonds;

      (c)   to meet the cost of, and to provide for, maintaining and operatingthe projects (including necessary reserves therefor and the cost of anyinsurance and of administrative expenses); and

      (d)   to make such payments in lieu of taxes and, after payment in full ofall obligations for which federal annual contributions are pledged, to makesuch repayments of federal and local contributions as it determines areconsistent with the maintenance of the low-rent character of projects.

      Rentals or payments for dwellings shall be established and the projectsadministered insofar as possible, so as to assure that any federalfinancial assistance required shall be strictly limited to amounts andperiods necessary to maintain the low-rent character of the projects.Nothing herein shall be construed to limit the amount an authority maycharge for non-dwelling facilities. All such income, together with otherincome and revenue, shall be used in the operation of the projects to aidin accomplishing the public purposes of this act.

      History:   L. 1957, ch. 132, § 10; L. 1968, ch. 70,§ 1; L. 1973, ch. 96, § 6; July 1.