In the operation or management of housing projects, an authority shall at all times observe the following duties with respect to rentals and tenant selection:

1. (a) it may rent or lease the dwelling accommodations therein only to persons of low income and at rentals within the financial reach of such persons of low income;
2. (b) it may rent or lease 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 thereof without overcrowding; and

3. (c) it shall not accept any person as a tenant in any housing project, if the person or persons who would occupy the dwelling accommodations have an annual net income in excess of five (5) times, the annual rental of the quarters to be furnished such person or persons, except that in the case of families with three (3) or more minor dependents, such ratio shall not exceed six (6) to one (1). In computing the rental for the purpose of selecting tenants, there shall be included in the rental the average annual cost, as determined by the authority, to occupants of heat, water, electricity, gas, cooking range and other necessary services or facilities, whether or not the charge for such services and facilities is in fact included in the rental.

   Nothing contained in this or the preceding section shall be construed as limiting the power of authority to vest, in an obligee, the right, in the event of a default by the authority, to take possession, during the period of such default, of a housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this or the preceding section.

[50-1913, added 1967, ch. 429, sec. 403, p. 1249.]