There is hereby created a public body corporate and politic to be known as the Puerto Rico Housing Authority. There is also hereby created in each municipality of Puerto Rico a public body corporate and politic to be known as the “Municipal Housing Authority”; Provided, however, That a housing authority of a municipality shall not transact any business or exercise its powers hereunder until or unless the governing body of the municipality by proper resolution shall declare at any time hereafter that there is need for an authority to function in such municipality, and until said resolution has been approved by the Governor of Puerto Rico. The determination as to whether or not there is such need for an authority to function may by made by the governing body (a) on its own motion or (b) upon the filing of a petition signed by twenty-five (25) residents of the municipality asserting that there is need for an authority to function in such municipality and requesting that the governing body so declare.
The governing body shall adopt a resolution declaring that there is need for a housing authority in the municipality if it shall find (a) that insanitary or unsafe inhabited dwelling accommodations exist in such municipality or (b) that there is a shortage of safe or sanitary dwelling accommodations in such municipality available to persons of low income at rentals they can afford. In determining whether dwelling accommodations are unsafe or insanitary said governing body may take into consideration the degree of overcrowding, the percentage of land coverage, the light, air, space and access available to the inhabitants of such dwelling accommodations, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions exist in such buildings which endanger life or property by fire or other causes.
In any suit, action or proceeding involving the validity or enforcement of or relating to any contract of such authority, it shall be conclusively deemed to have become established and authorized to transact business and exercise its powers hereunder upon proof of the adoption of a resolution by the governing body declaring the need for the authority. Such resolution or resolutions shall be deemed sufficient if it declares that there is such need for an authority and finds in substantially the foregoing terms, no further detail being necessary, that either or both of the above enumerated conditions exist in the municipality. A copy of such resolution duly certified by the secretary shall be admissible in evidence in any suit, action or proceeding.
History —May 6, 1938, No. 126, p. 253, § 4.