(a) No governing body of a city or other municipality shall adopt a resolution as provided in § 13-20-415 or § 13-20-503 declaring that there is a need for a housing authority, other than a housing authority established by such municipality, to exercise its powers within such municipality, unless a public hearing has first been held by the governing body and unless the governing body has found in substantially the following terms:
(1) Unsanitary or unsafe inhabitated dwelling accommodations exist in such municipality or there is a shortage of safe or sanitary dwelling accommodations in such municipality available to persons of low income at rentals they can afford; and
(2) These conditions can be best remedied through the exercise of the aforementioned housing authority's powers within the territorial boundaries of such municipality;
(b) During the time that, pursuant to these findings, a housing authority has outstanding, or is under contract to issue, any evidence of indebtedness for a project within the city or other municipality, no other housing authority may undertake a project within such municipality without the consent of the housing authority which has such outstanding indebtedness or obligation.
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