A.R.S. tit. 36 ch. 12 — Arizona Revised Statutes Title 36 Chapter 12 — Public Housing

36-1401. Definitions In this article, unless the context otherwise requires: 1. "Area of operation" includes all the territory of a city, town or county. 2. "Authority", "public housing authority", "public agency" or "housing authority" means an agency of a city, town or county created and controlled pursuant to this article. 3. "Blighted area" means an area where dwellings predominate that are detrimental to safety, health or morals because they are dilapidated or overcrowded or lack ventilation, light or sanitary facilities. 4. "Bonds" means bonds, notes, interim certificates, debentures or other obligations issued by a public housing authority, city, town or county pursuant to this article. 5. "Clerk" means the clerk of the board of supervisors, the city or town clerk or the officer charged with the duties customarily imposed on the clerk. 6. "Federal government" includes the United States, the United States department of housing and urban development or any other agency or instrumentality, corporate or otherwise, of the United States. 7. "Governing body" means the board of commissioners of a public housing authority, the common council or other legislative body of the city or town or the county board of supervisors. 8. "Housing project": (a) Means any work or undertaking: (i) To demolish, clear or remove buildings from any blighted area. Such work or undertaking may embrace the adoption of the area to public purposes, including parks or other recreational or community purposes. (ii) To provide decent, safe and sanitary urban or rural dwellings, apartments or other living accommodations for persons of low income. Such work or undertaking may include buildings, land, equipment, facilities and other real or personal property to be used for any necessary, convenient or desirable appurtenances, streets, sewers, water service, parks, site preparation, gardening, administrative, community, health, recreational, welfare or other purposes and consistent with the provision of housing pursuant to this article. (iii) To accomplish a combination of the foregoing. (b) Includes the planning and designing of buildings and improvements, the acquisition or receipt of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection therewith. 9. "Mayor" means the mayor of the city or town or the officer thereof charged with the duties customarily imposed on the mayor or executive head of a city or town. 10. "Obligee" includes any holder of bonds issued pursuant to this article, trustee or trustees for such bondholders, or lessor demising to a public housing authority, city, town or county property used in connection with a housing project, or an assignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to a contract with a public housing authority, city, town or county in regard to a housing project. 11. "Persons of low income" means persons or families who lack the amount of income that is necessary, as determined by the public housing authority, city, town or county undertaking the housing project, to enable them, without financial assistance, to live in decent, safe and sanitary dwellings without overcrowding. 12. "Real property" includes all lands, including improvements and fixtures on the land, and property of any nature appurtenant to the land, or used in connection with the land, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens. 13. "State public body" means any public housing authority, county, municipal corporation, commission, district, authority or other subdivision or public body of the state. 36-1402. Legislative finding and declaration of necessity A. It is declared that: 1. Unsanitary or unsafe dwelling accommodations exist in the various cities, towns and counties of the state and that persons of low income are required to reside in such unsanitary or unsafe accommodations. 2. Within these cities, towns and counties there is a shortage of safe or sanitary dwelling accommodations available at rents which persons of low income can afford and that they are forced to occupy overcrowded and congested dwelling accommodations. 3. The conditions specified by paragraphs 1 and 2 cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the state and impair economic values. 4. These conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection and other public services and facilities. 5. These areas cannot be cleared, developed or rehabilitated and the shortage of safe and sanitary dwellings for persons of low income cannot be relieved solely through the operation of private enterprise, and that development of housing projects for persons of low income as provided by this article will therefore not be competitive with private enterprise. 6. The clearance, planning, design and reconstruction of areas in which unsanitary or unsafe housing conditions exist and the providing of safe and sanitary dwelling accommodations for persons of low income are public uses and purposes for which public money may be spent and private property acquired by purchase, condemnation or other legal means, and that such activities are governmental functions of state concern. 7. It is in the public interest that work on projects for such purposes be commenced as soon as possible to relieve the affordable housing shortage that now constitutes an emergency. B. The necessity in the public interest for the provisions of this article is declared as a matter of legislative determination. 36-1403. Powers of municipalities A. Every public housing authority, city, town and county, in addition to other powers conferred by this article, may: 1. Within its area of operation prepare, carry out, acquire, purchase, lease, construct, reconstruct, improve, alter, extend or repair any housing project or projects or part of these projects, and operate and maintain the project or projects. For any such purpose the governing body of the public housing authority, city, town or county may appropriate money and authorize the use of any property of the public body. 2. Purchase its bonds issued pursuant to this article at a price not exceeding the principal amount of the bonds and accrued interest for the purpose of canceling these bonds. 3. Lease or rent dwellings, houses, accommodations, lands, buildings, structures or facilities embraced in a housing project and, subject to the limitations of this article, establish, collect and revise the rents or charges. 4. Own, hold and improve real or personal property. 5. Purchase, lease, obtain options on and acquire by gift, grant, bequest, devise or otherwise any real or personal property or any interest in that real or personal property. 6. Acquire by the exercise of the power of eminent domain any real property. 7. Sell, lease, exchange, transfer, assign, pledge or dispose of any real or personal property or interest in that real or personal property. 8. Procure or agree to the procurement of insurance or guarantees from the federal government of the payment of bonds or parts of bonds that are issued pursuant to this article, including the power to pay premiums on that insurance. 9. Except for federal lands or lands that belong to a registered Indian tribe, enter on any lands, buildings or property for the purpose of making surveys, soundings and examinations in connection with the planning or construction, or both, of a housing project. 10. Insure or provide for insurance for housing projects of the public housing authority, city, town or county against such risks as the governing board, council or commission of the public housing authority, city, town or county deems advisable. 11. Arrange or contract for furnishing by a person, company or agency, public or private, of services, privileges, works or facilities for or in connection with a housing project or the occupants of a housing project and include in any construction contract let in connection with a housing project stipulations requiring the contractor and subcontractors to comply with employment requirements, including those in the constitution and laws of the state, as to minimum wages and maximum hours of labor, and with any conditions that the federal government attaches to its financial aid to the project. 12. Within its area of operation: (a) Investigate living, dwelling and housing conditions and the means and methods of improving such conditions. (b) Determine where blighted areas exist or where there is a shortage of decent, safe and sanitary dwelling accommodations for persons of low income. (c) Make studies and recommendations relating to the problem of clearing, planning, designing and reconstructing blighted areas, and the problem of providing dwelling accommodations for persons of low income, and cooperate with the state or any political subdivision of this state in actions taken in connection with these problems. (d) Engage in research, studies and experimentation on the subject of housing. 13. Exercise all or any part or combination of powers granted by this article. B. A county shall not initiate a housing project within the boundaries of a city or town unless authorized by resolution of the governing body of the city or town. C. To obtain low income tax credits, a county, city, town or public housing authority may, pursuant to section 11-952, jointly exercise powers prescribed in this article, including the joint submission of an application for low income tax credits for one or more projects, on a cooperative basis with one another or may jointly form a nonprofit corporation that may exercise the powers prescribed in this article. D. A public housing authority established pursuant to this article shall be a tax-levying public improvement district for all the purposes of article XIII, section 7 of the constitution of Arizona and has the powers, privileges and immunities specifically granted by law, provided that a public housing authority may not levy or otherwise charge a tax or other assessment against the taxpayers of the jurisdiction establishing the public housing authority. 36-1404. Housing authority; employees A. Every city, town or county, in addition to other powers conferred by this article, may, by proper resolution of its governing body, create as an agent of that city, town or county a housing authority of the city, town or county. The city, town or county may delegate to that authority its power to acquire, own, maintain and dispose of real estate and appurtenances to real estate and to construct, maintain, operate and manage a housing project or projects and, notwithstanding the foregoing enumeration, may delegate to the authority any or all of the powers conferred on the city, town or county by this article, including the power to borrow money, issue bonds and acquire real property through the exercise of eminent domain. However, public housing authorities that act and exist under the control of a city, town or county may exercise eminent domain or issue bonds only on and pursuant to specific, formal case by case project preapproval from the governing body of that city, town or county. B. If the governing body of a city or town adopts a resolution as provided by subsection A, it shall promptly notify the mayor of the adoption. As directed by that resolution, the mayor shall appoint at least five persons as commissioners of the authority. If the board of supervisors adopts a resolution as provided in subsection A, the board, consistent with that resolution, shall thereafter appoint at least five persons as commissioners of the authority. The commissioners first appointed shall be designated to serve for staggered terms of one, two and three years from the date of their appointment, but thereafter commissioners shall be appointed for a term of office of four years. Vacancies from causes other than expiration of term shall be filled for the unexpired term only. A commissioner of an authority shall not hold any other office or employment of the city, town or county for which the authority is created. A commissioner shall hold office until the commissioner’s successor has been appointed and has qualified. A certificate of appointment or reappointment of a commissioner shall be filed with the appropriate city, town or county clerk, and the certificate shall be conclusive evidence of the due and proper appointment of the commissioner. A commissioner shall not receive compensation for the commissioner’s services but is eligible to receive reimbursement for necessary expenses, including travel, incurred in the discharge of the commissioner’s duties. The governing body of a city, town or county may elect by majority vote to provide that each council member or the mayor, while rightfully holding that office, shall automatically be and act as a commissioner of that government's public housing authority. C. Powers delegated by a city, town or county to an authority are vested in the commissioners. A majority of the authorized number of commissioners constitutes a quorum for all purposes including conducting the business of the authority and exercising its powers. If the meeting is duly noticed and a quorum is present, action may be taken by the authority on a vote of a majority of the commissioners present. The mayor or board of supervisors shall designate which of the commissioners shall be chairman and vice-chairman, respectively. The governing body of a city, town or county that creates a housing authority may authorize the authority to employ a secretary, who shall also be executive director, and technical experts and other officers, attorneys, agents and employees, permanent and temporary, as the authority requires, to determine their qualifications, duties and compensation, and to delegate to one or more of them powers or duties as the authority deems proper. A city, town, county or authority that has in place an appropriate and sufficient housing department or appropriate and sufficient authority staff, by a resolution of its governing body, may authorize and direct that the department or authority staff provide any executive, administrative, fiscal or technical experts and other officers, attorneys, independent contractors, agents and employees to another city, town, county or authority as may be necessary or desirable to the achievement of the purposes and powers prescribed in this article. D. Meetings of the public housing commissions are subject to the public meetings laws. 36-1405. Removal of commissioner A. A commissioner may be removed by the mayor or board of supervisors for inefficiency, neglect of duty or misconduct in office. The commissioner shall be removed only after he has been given a copy of the charges at least ten days prior to the hearing and has had an opportunity to be heard in person or by counsel. B. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the clerk of that city, town or county. C. This section does not apply to a commissioner who automatically holds office by virtue of being a city council member. 36-1406. Interest of municipal officer in project or property prohibited A. An officer of a public housing authority, city, town or county shall not acquire any direct or indirect interest in a housing project or in property included or planned to be included in a housing project of the public housing authority, city, town or county or have any direct or indirect interest in any contract or proposed contract for materials or services to be furnished or used in connection with a housing project. B. If an officer of a public housing authority, city, town or county owns or controls an interest directly or indirectly in property included or planned to be included in a housing project, the officer shall immediately disclose that interest in writing to the governing body of the public housing authority, city, town or county, and the disclosure shall be entered upon the minutes of the governing body. Failure to disclose the interest is misconduct in office. After making this disclosure, the officer shall not participate in any action by the city, town or county affecting the property. 36-1407. Eminent domain A. A city, town or county may acquire by the exercise of eminent domain any real property which it deems necessary for its purposes under this article after the adoption by it of a resolution declaring that the acquisition of the real property described is necessary for such purposes. A city, town or county may exercise the power of eminent domain in the manner provided by title 12, chapter 8, article 2 or 3 or in the manner provided by any other applicable statutory provisions for the exercise of the power of eminent domain. Title to property so acquired shall be taken in the name of the city, town or county. B. Property already devoted to a public use may be acquired in like manner, but property belonging to the federal government, a registered Indian tribe, the state or any political subdivision shall not be acquired without its consent. C. A public housing authority may exercise the power of eminent domain. The power of eminent domain may also be exercised on behalf of a public housing authority. This power shall only be exercised in relation to the provision of low income housing pursuant to this article. A public housing authority that acts on behalf of a city, town or county may exercise the power of eminent domain and may take property title in the name of that authority if it first obtains the written approval by resolution of the governing body that controls its acts and existence pursuant to this article. 36-1408. Use of revenues; determining rentals It is the policy of the state that each public housing authority, city, town or county shall manage and operate its housing projects in an efficient manner to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that a public housing authority, city, town or county shall not construct or operate the project to obtain net revenue unless and to the extent that any net revenues are used only for the provision and support of low income housing and support services. To this end a public housing authority, city, town or county shall fix the rentals for dwellings in its housing projects at no higher rates than it finds necessary to produce revenues which, together with any grants or subsidies from the federal government or other sources for housing projects, will be sufficient: 1. To pay, as they become due, the principal and interest on bonds of the public housing authority, city, town or county issued under the provisions of this article. 2. To meet the cost of and to provide for maintaining and operating the projects and the provision of related support services for the tenants, including the cost of any insurance, and the administrative expenses of the public housing authority, city, town or county incurred in connection with maintaining and operating the projects and support services. 3. To create, during not less than the six years immediately succeeding the issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one year thereafter and to maintain the reserve. 36-1409. Rentals and tenant selection A. In the operation or management of housing projects a public housing authority, city, town or county shall at all times observe the following duties with respect to rentals and tenant selection: 1. Unless the commissioners have determined that a mixed income project is in the community's best interests, the public housing authority, city, town or county may rent or lease the dwelling accommodations only to persons of low income and at rentals within the financial reach of such persons. 2. It may rent or lease to a tenant dwelling accommodations consisting of the number of rooms, but no greater number, which it deems necessary to provide safe and sanitary accommodations to the proposed occupants, without overcrowding. 3. It shall fix income limits for occupancy and rents after taking into consideration the family size, composition, age, disability and other factors which might affect the rent-paying ability of the person and the economic factors which affect the financial stability and solvency of the project. B. This section and section 36-1408 do not limit the power of a public housing authority, city, town or county to vest in an obligee the right, in the event of a default by the city, town or county, to take possession of and operate a housing project or to cause the appointment of a receiver, free from all the restrictions imposed by this section or section 36-1408. 36-1409.01. Pets for elderly tenants and tenants with disabilities; exceptions; conditions; appeal procedures; definitions A. Notwithstanding any other statute, a public agency which owns, operates, manages or contracts for rental housing accommodations shall not prohibit elderly tenants or tenants with disabilities from keeping pets in their dwelling units. B. This section does not prevent a public agency which owns, operates, manages or contracts for rental housing accommodations from requiring the removal of any pet which by its conduct or condition constitutes a threat or nuisance to other occupants of the housing project. A person shall not keep a pet in violation of health statutes or under circumstances constituting cruelty to animals pursuant to section 13-2910. C. A public agency which owns, operates, manages or contracts for rental housing accommodations shall not impose any requirement which makes the keeping of a pet by an elderly tenant or tenant with a disability financially prohibitive and shall not in any case require a deposit of more than one month's rent for the keeping of a pet. This section does not relieve an elderly tenant or tenant with a disability from any liability otherwise imposed by law for damages caused by the tenant's pet. D. A public agency which owns, operates, manages or contracts for rental housing accommodations is not liable for personal or property damage caused by a pet kept in the housing project by an elderly tenant or tenant with a disability unless it is proved that its agents or employees had prior actual knowledge of a dangerous propensity of the pet or a dangerous condition created by the pet and did not take timely and reasonable measures to mitigate or protect against the perceived threat. E. A public agency which owns, operates, manages or contracts for rental housing accommodations may adopt reasonable regulations relating to pets including number of pets and neutering when appropriate and may impose conditions for the tenancy of elderly tenants or tenants with disabilities with pets different from those applicable to such tenants without pets, if these conditions are reasonably related to the presence of the pets. F. An elderly tenant or tenant with a disability or an elderly applicant or applicant with a disability for tenancy may appeal from the adoption or application of any regulation or condition adopted pursuant to this section in accordance with grievance procedures of the particular housing authority which owns, operates, manages or contracts for the rental housing accommodations established to resolve tenant disputes. A copy of the grievance procedures shall be provided to an elderly tenant or tenant with a disability or an elderly applicant or applicant with a disability for tenancy who keeps or wishes to keep a pet. G. For the purposes of this section: 1. "Elderly" means a person who is at least sixty years of age or as otherwise defined by a specific program. 2. "Person with a disability" means a person who has a physical impairment which substantially limits one or more of the person's major life activities or has a record of such an impairment or has been regarded as having such an impairment, as verified by a signed statement of a physician licensed pursuant to title 32, chapter 13 or 17. 3. "Pet" means a domesticated dog, cat, bird, fish, mouse, gerbil, hamster, turtle, guinea pig or chinchilla. 4. "Tenant" means a person who rents or resides in a dwelling unit in rental housing accommodations owned, operated, managed or contracted for by a public agency. 36-1410. Bonds; issuance; refunding; sources of payment; personal liability; debt limitation A. A public housing authority, city, town or county may issue bonds from time to time to finance in whole or in part the cost of the preparation, acquisition, purchase, lease, construction, reconstruction, improvement, alteration, extension or repair of a project or undertaking authorized by this article. A public housing authority, city, town or county may also issue refunding bonds for the purpose of paying or retiring bonds previously issued by it under authority of this article. B. In order to carry out the purposes of this article, a public housing authority, city, town or county, on proper resolution, may issue bonds on which the principal and interest are payable: 1. Exclusively from the income and revenues of the housing project financed with the proceeds of the bonds. 2. Exclusively from such income and revenues together with any gifts, grants, bequests or devises from any legal, unencumbered source or grants and contributions from the federal government. C. Neither the governing body of a public housing authority, city, town or county nor any person executing the bonds shall be liable personally on a bond by reason of the issuance thereof under authority of this article. The bonds and other obligations issued under this article shall be payable solely from the sources provided by subsection B of this section. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. D. A public housing authority shall not issue, sell, advertise or redeem bonds of any kind or take any other action pursuant to this section or sections 36-1411 through 36-1415 without first obtaining the written approval by resolution of the governing body of the city, town or county that controls the acts and existence of that authority. 36-1411. Form and sale of bonds A. Bonds of a public housing authority, city, town or county issued under this article shall be authorized by resolution of the governing body of the respective city, town or county. Such bonds may be issued in any one or more series, shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding nine per cent per annum, be in such denomination or denominations and in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, payable in such medium of payment at such place or places, and subject to such terms of redemption, with or without premium, as the resolution, its trust indenture or the bonds so issued provide. B. The bonds may be sold at public or private sale at not less than par. C. If an officer of the public housing authority, city, town or county whose signature appears on bonds or coupons ceases to be an officer before delivery of the bonds, the person's signature is still valid and sufficient for all purposes, as if the officer had remained in office until delivery. Any provision of law to the contrary notwithstanding, bonds issued pursuant to this article are fully negotiable. D. In an action or proceeding involving the validity or enforceability of a bond of a public housing authority, city, town or county or the security therefor, if a bond recites in substance that it has been issued by the public housing authority, city, town or county to aid in financing a housing project to provide dwelling accommodations for persons of low income, the bond is conclusively deemed to have been issued for a housing project of such character, and the project is conclusively deemed to have been planned, located and constructed in accordance with this article. 36-1412. Additional provisions of bonds In connection with the issuance of bonds pursuant to this article, or the incurring of obligations under leases made pursuant to this article, and in order to secure the payment of the bonds or obligations, a public housing authority, city, town or county may: 1. Pledge all or any part of the gross or net rents, fees or revenues of a housing project financed with the proceeds of the bonds, to which its rights then exist or may thereafter come into existence. 2. Covenant against pledging all or any part of the project rents, fees and revenues, or against permitting or suffering any lien on the revenues or property. 3. Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or any part of a housing project. 4. Covenant as to what other or additional debts or obligations may be incurred by it. 5. Covenant as to the bonds to be issued and as to the issuance of the bonds in escrow or otherwise and as to the use and disposition of the proceeds. 6. Provide for the replacement of lost, destroyed or mutilated bonds. 7. Covenant against extending the time for the payment of its bonds or interest. 8. Redeem the bonds, covenant for their redemption and provide the terms and conditions. 9. Covenant, subject to the limitations contained in this article, as to the rents and fees to be charged in the operation of a housing project or projects, the amount to be raised each year or other period of time by rents, fees and other revenues, and as to the use and disposition to be made . 10. Create or authorize the creation of special funds for monies held for construction or operating costs, debt service, reserves or other purposes and covenant as to the use and disposition of the monies held in such funds. 11. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which shall consent thereto and the manner in which such consent may be given. 12. Covenant as to the use of any or all of its real or personal property acquired pursuant to this article, and covenant as to the maintenance of such property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance monies. 13. Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation, and covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions on which the declaration and its consequences may be waived. 14. Vest in a trustee or trustees or the holders of bonds issued pursuant to this article, or any specified proportion of them, the right to enforce payment of the bonds or any covenants securing or relating to the bonds, vest in a trustee or trustees the right, in the event of a default by the public housing authority, city, town or county, to take possession of any housing project or part, and, as long as the public housing authority, city, town or county continues in default, to retain possession and use, operate and manage the project, and to collect the rents and revenues arising therefrom and to dispose of the monies in accordance with the agreement of the public housing authority, city, town or county with the trustee, provide for the powers and duties of a trustee or trustees and limit the liabilities thereof, and provide the terms and conditions on which the trustee or trustees or the holders of bonds, or any proportion of them, may enforce any covenant or rights securing or relating to the bonds. 15. Exercise all or any part or combination of the powers granted by this section, make covenants other than and in addition to the covenants expressly authorized by this section, of like or different character, and make covenants that tend to make the bonds more marketable notwithstanding that the covenants, acts or things are not enumerated in this section. 36-1413. Construction of bond provisions This article, without reference to other statutes of the state, shall constitute full authority for the authorization and issuance of bonds authorized by this article. No other law with regard to the authorization or issuance of obligations that requires a bond election or in any way impedes or restricts the carrying out of the acts authorized by this article to be done shall be construed as applying to any proceedings taken or acts done pursuant to this article. 36-1414. Certification of bonds by attorney general A. A public housing authority, city, town or county may submit to the attorney general any bonds to be issued under this article after all proceedings for issuance of the bonds have been taken. On submission of the proceedings to the attorney general, the attorney general shall examine and determine the validity of the bonds and the regularity of all connected proceedings. B. If the proceedings conform to this article and are otherwise regular in form, and if the bonds when delivered and paid for will constitute binding and legal obligations of the public housing authority, city, town or county enforceable according to the terms of the bonds, the attorney general shall certify in substance on the back of each of the bonds that it is issued in accordance with the constitution and laws of the state. 36-1415. Housing bonds as security or legal investment A. The bonds or other obligations of a public housing authority, city, town or county issued for a housing project under the authority of this article or other law of this state, or issued by any public housing authority or agency of the United States, and secured by a pledge of annual contributions to be paid by the United States government or any agency thereof, shall constitute: 1. Authorized security for the deposit of public monies. 2. Authorized security for use in compliance with any law requiring deposits of securities to be made with any public agency. 3. Legal investments for monies subject to investment, held by or under the control of any officer or public body of the state or of any political subdivision or municipal corporation. 4. Legal investments for the sinking funds, trust funds or other monies belonging to or under the control of: (a) Banks, savings banks and other persons carrying on a banking business. (b) Insurance companies and other persons carrying on an insurance business. (c) Executors, administrators, guardians, trustees or other fiduciaries. B. This article does not relieve any public officer, corporation, fiduciary or other person from the duty of exercising reasonable care in the selection of securities. 36-1416. Remedies of obligee An obligee of a city, town or county, in addition to all other rights which may be conferred on him, and subject only to contractual restrictions binding on that person, may: 1. By mandamus, or an action or proceeding at law or in equity, compel the public housing authority, city, town or county and its officers, agents or employees to perform each and every term, provision and covenant contained in any contract of the public housing authority, city, town or county with or for the benefit of the obligee and require the carrying out of any or all such covenants and agreements of the public housing authority, city, town or county and the fulfillment of all duties imposed on the public housing authority, city, town or county by this article. 2. By an action or proceeding in equity, enjoin any acts or things which are unlawful or in violation of any of the rights of the obligee of the public housing authority, city, town or county. 36-1417. Power of public body to provide additional remedies to obligee A public housing authority, city, town or county may by resolution, trust indenture, lease or other contract confer on any obligee holding or representing a specified amount in bonds, or holding a lease, the right, in addition to all rights that may otherwise be conferred on the happening of an event of default as defined in the resolution or instrument, by an action or proceeding in any court of competent jurisdiction: 1. To cause possession of any housing project or any part of a housing project to be surrendered to any such obligee, which possession may be retained by the bondholder or trustee as long as the public housing authority, city, town or county continues in default. 2. To obtain the appointment of a receiver of any housing project of the public housing authority, city, town or county, or any part of a housing project, and of the rents and profits from the housing project. If a receiver is appointed, the receiver may enter and take possession of the housing project or any part of the housing project and, as long as the public housing authority, city, town or county continues to default, operate and maintain it and collect and receive all fees, rents, revenues or other charges thereafter arising from the housing project and shall keep the monies in a separate account or accounts and apply them in accordance with the obligations of the public housing authority, city, town or county as the court directs. 3. To require the public housing authority, city, town or county and its officers and agents to account as if it and they were the trustees of an express trust. 36-1418. Property exempt from execution sale A. All real property owned or held by a public housing authority, city, town or county for the purposes of this article are exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against it nor shall any judgment against a public housing authority, city, town or county be a charge or lien on such real property. B. This section does not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given to them on rents, fees or revenues. 36-1419. Payments in lieu of taxes authorized A. When a housing project is owned and administered by a housing authority under this article, the housing authority and the city, town or county in which the project is located may agree upon payments to be made in lieu of taxes. B. Taxing authorities are authorized and directed to accept such payments and funds so collected in the same manner as other taxes are collected. 36-1420. Acceptance of federal aid A. In addition to the powers conferred on a political subdivision of this state by other provisions of this article, a public housing authority, city, town or county may borrow money or accept contributions, grants or other financial assistance from the federal government for or in aid of any housing project within its area of operation, and, to these ends, comply with such conditions, trust indentures, leases or agreements as are necessary, convenient or desirable. B. This article authorizes every public housing authority, city, town or county to do all things that are consistent with this article and that are or may be necessary, convenient or desirable to secure the financial aid or cooperation of the federal government in the undertaking, acquisition, construction, maintenance or operation of any housing project of the public housing authority, city, town or county. 36-1421. Cooperation of state public body with housing project A. For the purpose of aiding and cooperating in planning, undertaking, constructing or operating housing projects located within the area in which it is authorized to act, any state public body, with or without consideration and upon such terms as it determines, may: 1. Dedicate, sell, convey or lease any of its interest in any property or grant easements, licenses or any other rights or privileges therein to any public housing authority, city, town or county or to the federal government. 2. Cause parks, playgrounds, recreational, community, educational, water, sewer or drainage facilities, or any other works which it is otherwise empowered to undertake to be furnished adjacent to or in connection with housing projects. 3. Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets, roads, roadways, alleys, sidewalks or other places which it is otherwise empowered to undertake. 4. Cause services to be furnished for housing projects of the character which such state public body is otherwise empowered to furnish. 5. Enter into agreements with respect to the exercise by the state public body of its powers relating to the repair, elimination or closing of unsafe, unsanitary or unfit dwellings. 6. Do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction or operation of such housing projects. 7. Incur the entire expense of any public improvements made by the state public body in exercising the powers granted by this article. 8. Enter into agreements, which may extend over any period, any provision or rule of law to the contrary notwithstanding, with any public housing authority, city, town or county or authority as agent, respecting action to be taken by the state public body pursuant to any of the powers granted by this article. B. Notwithstanding any law to the contrary, a sale, conveyance, lease or agreement provided for by this section may be made by a state public body without appraisal, public notice, advertisement or public bidding. 36-1422. Cooperative agreements between municipalities Two or more cities, towns or counties, acting directly, or pursuant to this article through their public housing authorities, may join or cooperate in the exercise, jointly or otherwise, of any or all of their powers under this article for the purpose of financing, planning, owning, constructing, operating or contracting with respect to a housing project located within the area of operation of one or more of the public housing authorities, cities, towns or counties. For such purpose the governing body of a public housing authority, city, town or county may authorize one or more of the public housing authorities, cities, towns or counties so joining or cooperating with it to act in its behalf with respect to any or all of such powers. 36-1423. Bids required for construction and purchases All items of construction and all purchases of furnishings and equipment made under this article shall be by contract after call for bids. 36-1424. Supplemental nature of article The powers conferred by this article shall be in addition and supplemental to the powers conferred by any other law. 36-1425. Inconsistencies of article with other law Insofar as the provisions of this article are inconsistent with the provisions of any other law, the provisions of this article shall be controlling. 36-1471. Definitions In this article, unless the context otherwise requires: 1. "Area of operation" means the area within the territorial boundaries of the municipality. 2. "Blighted area" means an area, other than a slum area, where sound municipal growth and the provision of housing accommodations is substantially retarded or arrested in a predominance of the properties by any of the following: (a) A dominance of defective or inadequate street layout. (b) Faulty lot layout in relation to size, adequacy, accessibility or usefulness. (c) Unsanitary or unsafe conditions. (d) Deterioration of site or other improvements. (e) Diversity of ownership. (f) Tax or special assessment delinquency exceeding the fair value of the land. (g) Defective or unusual conditions of title. (h) Improper or obsolete subdivision platting. (i) The existence of conditions that endanger life or property by fire and other causes. 3. "Bonds" means any bonds, including refunding bonds, notes, interim certificates, debentures or other obligations. 4. "Clerk" means the clerk or other official of the municipality who is the custodian of the official records of the municipality. 5. "Commission" or "slum clearance and redevelopment commission" means an agency of a municipality created pursuant to section 36-1476. 6. "Federal government" includes the United States or any agency or instrumentality, corporate or otherwise, of the United States. 7. "Local governing body" means the council or other legislative body charged with governing the municipality. 8. "Mayor" means the mayor of a municipality or other officer or body having the duties customarily imposed upon the executive head of a municipality. 9. "Municipality" means any incorporated city or town in the state. 10. "Obligee" includes any bondholder, agents or trustees for any bondholders, or lessor demising to the municipality property used in connection with a redevelopment project, or any assignee or assignees of a lessor's interest or any part thereof, and the federal government when it is a party to any contract with the municipality. 11. "Person" means any individual, firm, partnership, corporation, company association, joint stock association or body politic, and includes any trustee, receiver, assignee or other similar representative thereof. 12. "Public body" means the state or any municipality, county, village, board, commission, authority, district or any other subdivision or public body of the state. 13. "Real property" includes all lands, including improvements and fixtures on the land, and property of any nature appurtenant to the land, or used in connection with the land, and every estate, interest and right, legal or equitable therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by the liens. 14. "Redeveloper" means any person, partnership or public or private corporation or agency which enters or proposes to enter into a redevelopment contract. 15. "Redevelopment contract" means a contract entered into between a municipality and a redeveloper for the redevelopment of an area in conformity with a redevelopment plan. 16. "Redevelopment plan" means a plan, other than a preliminary or tentative plan, for the acquisition, clearance, reconstruction, rehabilitation or future use of a redevelopment project area. 17. "Redevelopment project": (a) Means any work or undertaking: (i) To acquire slum or blighted areas or portions of these areas and lands, structures or improvements, the acquisition of which is necessary or incidental to the proper clearance or redevelopment of these areas or to the prevention of the spread or recurrence of slum conditions or conditions of blight in the area. (ii) To clear any areas by demolition or removal of existing buildings, structures, streets, utilities or other improvements thereon and to install, construct or reconstruct streets, utilities and site improvements essential to the preparation of sites for uses in accordance with a redevelopment plan. (iii) To sell, lease or otherwise make available land in areas for residential, recreational, commercial, industrial or other use or for public use or to retain land for public use, in accordance with a redevelopment plan. (b) Includes the preparation of a redevelopment plan, the planning, surveying and other work incident to a redevelopment project and the preparation of all plans and arrangements for carrying out a redevelopment project. 18. "Slum area" means an area in which both of the following are true: (a) There is a predominance of buildings or improvements, whether residential or nonresidential. (b) The public health, safety or welfare is threatened because of any of the following: (i) Dilapidated, deteriorated, aging or obsolescent buildings or improvements. (ii) The inadequate provision for ventilation, light, air, sanitation or open spaces. (iii) Overcrowding. (iv) The existence of conditions that endanger life or property by fire and other causes. 36-1472. Legislative finding and declaration of necessity It is declared: 1. That there exist in municipalities of the state slum or blighted areas which constitute a serious and growing menace, injurious and inimical to the public health, safety, morals and welfare of the residents of the state. 2. That the existence of these areas contributes substantially and increasingly to the spread of disease and crime, necessitating excessive and disproportionate expenditures of public funds for the preservation of the public health and safety, for crime prevention, correction, prosecution, punishment and the treatment of juvenile delinquency and for the maintenance of adequate police, fire and accident protection and other public services and facilities, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities and retards the provision of housing accommodations. 3. That this menace is beyond remedy and control solely by regulatory process in the exercise of the police power and cannot be dealt with effectively by the ordinary operations of private enterprise without the aids provided by this article. 4. That the acquisition of property for the purpose of eliminating the conditions or preventing recurrence of these conditions in the area, the removal of structures and improvement of sites, the disposition of the property for redevelopment and any assistance which may be given by any public body in connection with these activities are public uses and purposes for which public money may be expended and the power of eminent domain exercised. 5. That the necessity in the public interest for the provisions of this article is declared as a matter of legislative determination. 36-1473. Finding of necessity by local governing body A. A municipality shall not exercise any of the powers conferred on municipalities by this article until its local governing body adopts a resolution by a two-thirds vote finding both of the following: 1. One or more slum or blighted areas exist in the municipality. 2. The redevelopment of that area or areas is necessary in the interest of the public health, safety, morals or welfare of the residents of the municipality. B. A municipality must notify the owner of real property that is within the boundaries of a proposed redevelopment area of the time, date and location of a public meeting concerning the findings. The municipality must provide this notice by first class mail to the address stated on the most recent records of the county assessor. 36-1474. Powers of municipalities A. Every municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this article, including the following powers in addition to others granted by this article: 1. To prepare or cause to be prepared redevelopment plans and to undertake and carry out redevelopment projects within its area of operation. 2. To arrange or contract for the furnishing or repair, by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for or in connection with a redevelopment project, and anything to the contrary contained in this article or any other provision of law notwithstanding, to agree to any conditions that it deems reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of a redevelopment project, and to include in any contract let in connection with a redevelopment project, provisions to fulfill the conditions as it deems reasonable and appropriate. 3. Within its area of operation: (a) To purchase, lease, obtain options on, acquire by gift, grant, bequest, devise, eminent domain or otherwise, any real or personal property or any interest in the property, together with any improvements on the property, necessary or incidental to a redevelopment project. (b) To hold, improve, clear or prepare for redevelopment any such property. (c) To sell, lease, exchange, transfer, assign, subdivide, retain for its own use, mortgage, pledge, hypothecate or otherwise encumber or dispose of any real or personal property or any interest in the property in a redevelopment project. (d) To enter into contracts with redevelopers of property containing covenants, restrictions and conditions regarding the use of the property for residential, commercial, industrial, recreational or other purposes or for public purposes in accordance with a redevelopment plan and the other covenants, restrictions and conditions as the municipality deems necessary to prevent a recurrence of conditions that qualify an area as a slum or blighted area or to effectuate the purposes of this article. A municipality may not exercise the power of eminent domain unless the municipality makes a separate determination by a two-thirds vote of the local governing body that the property is critical to the project and the existing use of the property is not compatible with the proposed use and cannot be incorporated into or excluded from the proposed redevelopment project. (e) To make any of the covenants, restrictions or conditions of the foregoing contracts covenants running with the land and to provide appropriate remedies for any breach of these covenants or conditions, including the right in the municipality to terminate these contracts and any interest in the property created pursuant thereto. (f) To borrow money and issue bonds and provide security for loans or bonds. (g) To insure or provide for the insurance of any real or personal property or operations of the municipality in a redevelopment project of the municipality against any risks or hazards, including the power to pay premiums on the insurance. (h) To enter into any contracts necessary to effectuate the purposes of this article. No statutory provision with respect to the acquisition, clearance or disposition of property by public bodies shall restrict a municipality in these functions with respect to a redevelopment project, unless the legislature specifically so states. 4. To invest any redevelopment project funds held in reserves or sinking funds or any redevelopment project funds not required for immediate disbursement, in property or securities in which savings banks may legally invest funds subject to their control and to redeem the bonds that have been issued pursuant to section 36-1481 at the redemption price established therein or to purchase the bonds at less than redemption price, all bonds so redeemed or purchased to be cancelled. 5. To borrow money and to apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, county or other public body or from any sources, public or private, for the purposes of this article, to give such security as may be required and to enter into and carry out contracts in connection therewith. Notwithstanding any other law, a municipality may include in any contract for financial assistance with the federal government for a redevelopment project conditions imposed pursuant to federal law that the municipality deems reasonable and appropriate and that are not inconsistent with the purposes of this article. 6. Within its area of operation, to make or have made all surveys, appraisals, studies and plans, including the preparation of a general plan for the development of the municipality, necessary to carry out the purposes of this article and to contract or cooperate with any and all persons or agencies, public or private, to make and to carry out the surveys, appraisals, studies and plans. 7. To prepare plans and provide reasonable assistance for the relocation of families displaced from a redevelopment project area to the extent essential for acquiring possession of and clearing the area or parts of the area to permit the carrying out of the redevelopment project. 8. To appropriate funds and make expenditures necessary to carry out the purposes of this article and to make expenditures from funds obtained from the federal government without regard to any other laws pertaining to the making and approval of appropriations and expenditures. 9. To exercise all or any part or combination of powers granted by this section. B. A municipality must notify each owner of real property located within the boundaries of a proposed redevelopment project area of the time, date and location of a public meeting concerning the proposed adoption of the redevelopment plan if the municipality intends to acquire that owner's property or any interest in that property. The municipality must provide this notice by first class mail to the address stated on the most recent records of the county assessor. C. The designation of an area as a slum or blighted area terminates ten years after this designation unless substantial action has been taken to remove the slum or blighted conditions. The termination does not affect existing projects as described in section 35-701, paragraph 7, subdivision (a), item (xi) that are within that designated area. 36-1475. Delegation of powers of municipalities In undertaking redevelopment projects under this article, every municipality, by resolution of its governing body, may delegate to the slum clearance and redevelopment commission of the municipality, if any, created by it pursuant to section 36-1476, as an agent of the municipality any or all of the powers conferred upon municipalities by this article except the power to borrow money, issue bonds, acquire and dispose of real property, enter into contracts with the federal government or any public body, prepare a general plan for the development of the municipality or approve redevelopment plans. 36-1476. Slum clearance and redevelopment commission A. In addition to the other powers conferred by this article a municipality by resolution of its governing body may create a slum clearance and redevelopment commission, which shall be an agent of the municipality for the exercise of powers of the municipality under this article. B. If the governing body of a municipality adopts a resolution as described in subsection A of this section, the mayor, by and with the advice and consent of the governing body, shall appoint a board of commissioners for the slum clearance and redevelopment commission, which shall consist of five commissioners. Three of the commissioners first appointed pursuant to this article shall be designated to serve for terms of one, two and three years respectively and two commissioners shall be appointed for four years each, from the date of their appointment. After the initial appointment of commissioners, members of the commission shall be appointed for a term of office of four years, except that all vacancies shall be filled for the unexpired term. C. A commissioner is not eligible to receive compensation but is eligible to receive reimbursement of expenses. Each commissioner shall hold office until a successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the cl