In the operation or management of housing projects, a housing authority shall at all times observe the following duties with respect to rentals and tenant selection:
(1) A housing authority may rent or lease the housing only to persons of eligible income, except:
(a) If the authority owns, operates or manages the housing and a substantial number of the housing units are required to be rented or leased to persons of eligible income; or
(b) If the authority acquires an existing housing unit that houses a tenant not of eligible income, the tenant may remain in the unit at the discretion of the authority, unless the tenant is determined ineligible for reasons other than income qualification.
(2) A housing authority may rent or lease the housing at rents no higher than will provide revenue sufficient to give financial stability to the housing authority. This limitation does not apply to housing units that are owned, operated or managed as described in subsection (1) of this section if the units are not occupied by families receiving assistance from an authority. [Amended by 1973 c.672 §11; 1977 c.667 §3; 1987 c.821 §3; 1995 c.445 §11; 2007 c.606 §11]
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