It is declared to be the policy of this state that each city shall manage and operate its housing projects and affordable housing programs in an efficient manner so as to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations and that no city shall construct or operate any housing project for profit. To this end, a city shall set the rental rates for dwellings in the housing projects it manages and operates at no higher rates than it finds to be necessary in order to produce revenues that, together with any grants or subsidies from the federal government or other sources for housing projects, will be sufficient:

A. to pay, as they become due, the principal and interest on the bonds or other obligations of the city issued under the Municipal Housing Law;

B. to meet the cost of and to provide for maintaining and operating the housing projects and affordable housing programs, including the cost of any insurance, the administrative expenses of the city incurred in connection with the housing projects and affordable housing programs and the funding of any operational reserves as the authority deems appropriate;

C. to fund such reserves to secure the payment of its bonds as the authority deems appropriate or convenient; and

D. to allow private, profit-making entities to enter into agreements with the authority, and such agreements shall not be deemed to affect the nonprofit status of the authority or conflict with the intent of the creation of the authority.

History: 1953 Comp., § 14-46-9, enacted by Laws 1965, ch. 300; 1989, ch. 50, § 3; 2009, ch. 226, § 8.

The 2009 amendment, effective April 7, 2009, after "housing projects", added "and affordable housing programs".

The 1989 amendment, effective June 16, 1989, in the undesignated introductory paragraph deleted "or as a source of revenue" at the end of the first sentence and inserted "it manages and operates" in the second sentence; inserted "or other obligations" in Subsection A; added all of the language in Subsection B following "connection"; rewrote Subsection C, which formerly read: "to create, during not less than six years immediately succeeding its issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on such bonds in any one year thereafter and to maintain such reserve"; added subsection D; and made minor stylistic changes throughout the section.