17-2347.   Housing rentals and tenant admissions; non-dwellingfacilities, tenants and rental.A municipality shall

      (a)   rent or lease the dwelling accommodations in a housing project onlyto persons of low income and at rentals within the financial reach of suchpersons;

      (b)   rent or lease to a tenant such dwelling accommodations consisting ofthe number of rooms which it deems necessary to provide safe and sanitaryaccommodations to the proposed occupants thereof, without overcrowding; and

      (c)   fix income limits for occupancy and rents after taking intoconsideration the family size, composition, age, physical handicaps, andother factors which might affect the rent paying ability of the family,including the economic factors which affect the financial stability andsolvency of the project.

      In computing the rental for this purpose of admitting tenants, thereshall be included in the rental the average annual cost (as determined bythe municipality) to occupants of heat, water, electricity, gas, cookingfuel and other necessary services or facilities, whether or not the chargefor such services and facilities is included in the rental.

      A municipality shall give a preference to those persons who occupieddwellings which were razed so that a slum could be cleared or the housingproject could be constructed and to elderly persons whether or not sodisplaced, and who desire to rent or lease dwelling accommodations in suchhousing project, if such persons are otherwise qualified to rent or leasedwelling accommodations in such housing project. Notwithstanding theprovisions hereof, a municipality may agree to conditions as to tenanteligibility or preference required by the federal government pursuant tofederal law in any contract for financial assistance. Further,notwithstanding the provisions hereof, nothing herein shall be construed tolimit the amount of rental that an authority may charge or the tenants thatan authority may admit for non-dwelling facilities. All such rental,together with other income and revenue shall be used in the operation ofthe projects to aid in accomplishing the public purposes of this act.

      Nothing contained in this or the preceding section shall be construed aslimiting the power of a municipality, with respect to a housing project, tovest in an obligee the right, in the event of a default by themunicipality, to take possession or cause the appointment of a receiverthereof, free from all the restrictions imposed by this or the precedingsection.

      History:   L. 1957, ch. 132, § 11; L. 1961, ch. 121, § 3; L. 1968,ch. 70, § 2; L. 1973, ch. 96, § 7; July 1.