9-4-610.   Profit from projects prohibited -- Criteria for determining rentals and payments.
     (1) It is declared to be the policy of this state to accomplish the public, governmental, and charitable purposes of this part that:
     (a) each authority manage and operate its housing projects in an efficient manner to enable it to provide decent, safe, and sanitary dwelling accommodations for persons of medium and low income and fix the rentals or payments for these accommodations for persons of low income at low rates; and
     (b) no authority be operated as a source of revenue to the city or county.
     (2) To this end each authority shall fix the rentals or payments for dwellings in its projects at no higher rates than it finds necessary in order to produce revenues that, together with all other available moneys, revenues, income, and receipts of the authority from whatever sources derived, including federal financial assistance necessary to maintain the low-rent character of the projects, is sufficient to:
     (a) pay, as they become due, the principal and interest on the bonds of the authority;
     (b) create and maintain reserves required to assure the payment of principal and interest as it becomes due on its bonds;
     (c) meet the cost of, and provide for, maintaining and operating the projects, including necessary reserves and the cost of any insurance, and the administrative expenses of the authority; and
     (d) make payments in lieu of taxes and, after payment in full of all obligations for which federal annual contributions are pledged, make repayments of federal and local contributions as it determines are consistent with the maintenance of the low-rent character of projects.
     (3) Rentals or payments for dwellings shall be established and the projects administered, in so far as possible, to assure that any federal financial assistance required is strictly limited to amounts and periods necessary to maintain the low-rent character of the projects.
     (4) Nothing in this section may be construed to limit the amount an authority may charge for nondwelling facilities.
     (5) All such income, together with other income and revenue, shall be used in the operation of the projects to aid in accomplishing the public, governmental, and charitable purposes of this part.

Amended by Chapter 224, 1993 General Session
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Last revised: Thursday, May 28, 2009