Section 356D-31 - Rentals and tenant selection(a) In the operation or management of federal public housing projects, the authority , acting directly or by an agent or agents , at all times shall observe the following duties with respect to rentals and tenant selection: (1) The authority may establish maximum limits of annual net income for tenant selection in any public housing project, less any exemptions as may be authorized by federal regulations pertaining to public housing. The authority may agree to conditions as to tenant eligibility or preference required by the federal government pursuant to federal law in any contract for financial assistance with the authority; (2) The authority may rent or lease the dwelling units therein only at rentals within the financial reach of persons who lack the amount of income that the authority determines to be necessary to obtain safe, sanitary, and uncongested dwelling accommodations within the area of operation of the authority and to provide an adequate standard of living; and(3) The authority may rent or lease to a tenant a dwelling consisting of the number of rooms , but no greater number , than the authority deems necessary to provide safe and sanitary accommodations to the proposed occupants thereof, without overcrowding.(b) Nothing in this part shall be construed as limiting the power of the authority to:(1) Vest in an obligee the right, in the event of a default by the authority, to take possession of a public housing project or cause the appointment of a receiver thereof, free from all the restrictions imposed by this part with respect to rentals, tenant selection, manner of operation, or otherwise; or(2) Vest in obligees the right, in the event of a default by the authority, to acquire title to a public housing project or the property mortgaged by the authority, free from all the restrictions imposed by this part.Amended by L 2023, c 99,§ 1, eff. 6/21/2023.Amended by L 2013, c 148,§ II-2, eff. 7/1/2013. L 2006, c 180 , pt of §2 .