An authority shall not exercise the authority conferred upon municipalities or communities by this chapter until after the local governing body shall have adopted a resolution finding that:

1. (1) One or more slum or blighted areas shall exist in such municipality or community; and
2. (2) The rehabilitation, conservation, redevelopment or a combination thereof, of such area or areas is necessary in the interest of the public health, safety, morals or welfare of the residents of such municipality or community.

48 Del. Laws, c. 345, § 6; 31 Del. C. 1953, § 4518; 55 Del. Laws, c. 292, § 5