§ 12-401. Statement of policy

   (a) In general. -- It is State policy that an authority:

   (1) shall manage and operate its housing projects efficiently to enable it to fix the rent for housing units at the lowest rates consistent with its providing decent, safe, and sanitary housing units and meeting the financial needs under subsection (b) of this section; but

   (2) may not operate for profit or as a source of revenue to the political subdivision.

(b) Rental rates. -- An authority shall fix the rents for housing units in its housing projects at rates no higher than it finds necessary to produce revenues that with all other available money, revenue, income, and receipts will be sufficient to:

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

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

   (3) (i) create during a period of at least 6 years right after it issues any bonds, a reserve that can meet the largest principal and interest payments that will be due on the bonds in any year thereafter; and

      (ii) maintain the reserve;

   (4) create reserves for operations, emergencies, renovations, replacements, and the repayment of debt; and

   (5) create funds necessary or desirable to:

      (i) subsidize rents;

      (ii) develop or operate housing projects; or

      (iii) operate or provide services located in housing projects or that otherwise benefit their residents.

HISTORY: An. Code 1957, art. 44A, § 1-401; 2006, ch. 63, § 2.