Sec 36-1409. Rentals and tenant selection

A. In the operation or management of housing projects a public housing authority, city, town or county shall at all times observe the following duties with respect to rentals and tenant selection:

1. Unless the commissioners have determined that a mixed income project is in the community's best interests, the public housing authority, city, town or county may rent or lease the dwelling accommodations only to persons of low income and at rentals within the financial reach of such persons.

2. It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants, without overcrowding.

3. It shall fix income limits for occupancy and rents after taking into consideration the family size, composition, age, disability and other factors which might affect the rent-paying ability of the person and the economic factors which affect the financial stability and solvency of the project.

B. This section and section 36-1408 do not limit the power of a public housing authority, city, town or county to vest in an obligee the right, in the event of a default by the city, town or county, to take possession of and operate a housing project or to cause the appointment of a receiver, free from all the restrictions imposed by this section or section 36-1408.