(a) (1) In addition to its other powers, any housing authority created by or pursuant to the Housing Authorities Act or the Supplemental Housing Authorities Act may exercise any or all of its powers within the territorial boundaries of any municipality not included in the area of operation of the housing authority for the purpose of planning, undertaking, financing, constructing, and operating housing projects within the municipality, if a resolution shall have been adopted declaring that there is a need for the housing authority to exercise its powers within the municipality by:

(A) The governing body of the municipality in which the housing authority is to exercise its powers; and

(B) Any housing authority theretofore established by the municipality and authorized to exercise its powers in it.

(2) A municipality shall have the same powers to furnish financial and other assistance to the housing authority exercising its powers within the municipality under this section as though the municipality were within the area of operation of the authority.

(b) (1) (A) No governing body of a city or other municipality shall adopt a resolution under this section declaring that there is a need for a housing authority, other than a housing authority established by the municipality, to exercise its powers within the municipality, unless a public hearing has first been held by the governing body and unless the governing body shall have found, in substantially the following terms, that:

(i) Unsanitary or unsafe inhabited dwelling accommodations exist in the municipality or that there is a shortage of safe or sanitary dwelling accommodations in the municipality available to persons of low income at rentals they can afford; and

(ii) These conditions can be best remedied through the exercise of the housing authority's powers within the territorial boundaries of the municipality.

(B) The findings shall not have the effect of establishing a housing authority for any municipality under § 14-169-207 nor of thereafter preventing the municipality from establishing a housing authority or joining in the creation of a consolidated housing authority or the increase of the area of operation of a consolidated housing authority.

(2)

(A) The clerk of the city or other municipality shall give notice of the time, place, and purpose of the public hearing at least ten (10) days prior to the date on which the hearing is to be held, in a newspaper published in the municipality. If there is no newspaper published in the municipality, then notice shall be published in a newspaper published in the state and having a general circulation in the municipality.

(B) Upon the date fixed for the public hearing, an opportunity to be heard shall be granted to all residents of the municipality and to all other interested persons.

(c) During the time that, pursuant to these findings, a housing authority has outstanding, or is under contract to issue, any evidences of indebtedness for a project within the city or other municipality, no other housing authority may undertake a project within the municipality without the consent of the housing authority which has the outstanding indebtedness or obligation.