Section 12. (a) The following shall be the summary inserted in the petition described in section five:

''Section twelve of chapter forty-three C of the General Laws authorizes the legislative body to provide, by ordinance or by-law, for a consolidated department of community development which may include the redevelopment authority, the planning board, the industrial development commission, industrial development financing authority or any other municipal office or agency exercising or authorized to exercise any community or economic development activities.''

(b) Notwithstanding any other provision of law to the contrary in any city or town which accepts the provisions of this section, the legislative body, subject to all applicable provisions of the city or town charter, shall have the authority to adopt an ordinance or by-law providing for a consolidated department of community development.

(c) Any ordinance or by-law adopted pursuant to this section shall provide for (i) a director of community development who shall be appointed by and shall be responsible to the chief executive or chief administrative officer of the city or town as the ordinance or by-law shall specify, (ii) the term of office of the director of community development which shall not be less than three nor more than five years, subject to removal as may be otherwise provided in the charter of said city or town, (iii) a community development board which shall consist of five members, one of whom shall be appointed by the director of housing and community development for a term of five years, and four members who shall be appointed by the chief executive or chief administrative officer of the city or town as the ordinance or by-law shall specify, for terms of five years each, all such terms to be so arranged so that only one term expires each year.

(d) Any ordinance or by-law adopted pursuant to this section may include, but need not be limited to, providing for the inclusion through the abolishment of any of the agencies hereinafter enumerated, in whole or in part, or by placing any such agency as may be continued under the administrative control of the director of community development. Such agencies may include the redevelopment authority, the industrial development financing authority, the industrial development commission, the planning board and any other local agency which exercises or is authorized to exercise any community or economic development activity, but shall not include the housing authority.

Insofar as any power or function which is assigned to the department of community development through the abolishment of any agency under the provisions of chapter forty D, forty-one, forty-one A, one hundred and twenty-one A, one hundred and twenty-one B, or any other law relating to community or economic development, to be exercised specifically or exclusively by a multiple member body, such power or function shall be assigned to the community development board.

(e) Any ordinance or by-law adopted pursuant to this section shall provide for the appointment of all other personnel necessary to staff the department as constituted in the ordinance or by-law. Unless some other provision is made in the city or town charter for the appointment of officers and employees, the director of community development shall appoint all personnel under his direction and control subject to the approval of the appointing authority as provided for his office.