Sec. 24. (a) A housing authority shall manage and operate its housing projects in an efficient manner so that it may fix the rentals for dwelling accommodations at the lowest possible rates while providing decent, safe, and sanitary dwelling accommodations. The authority may not construct or operate a project for profit or as a source of revenue to the municipality or county.

(b) A housing authority may not fix the rentals for dwellings in its projects at higher rates than it finds necessary to produce revenues that, together with all other available money, revenues, income, and receipts of the authority, will be sufficient:

(1) to pay, as they become due, the principal and interest on the bonds, notes, or warrants of the authority;

(2) to meet the cost of, and to provide for, maintaining and operating the projects, including the cost of insurance and the administrative expenses of the authority;

(3) to create, during a period of not less than six (6) years immediately after its issuance of any bonds, notes, or warrants, a reserve sufficient to meet the largest principal and interest payments due on them in any one (1) year after that, and to maintain that reserve; and

(4) to accumulate reasonable reserves to cover the making of necessary repairs.

(c) This section does not limit the power of an authority to vest rights in an obligee under section 33 of this chapter free from all the restrictions imposed by this section.

[Pre-Local Government Recodification Citations: 18-7-11-9 part; 18-7-11-10 part.]

As added by Acts 1981, P.L.309, SEC.37.