§ 11-3A-8 — Requirements respecting lease

A. Prior to the leasing of any housing project, the regional housing authority shall determine and find the following: (1) the amount necessary in each year to pay indebtedness proposed to fund the housing project; and (2) the amount necessary to be paid each year into any reserve funds that the regional housing authority may deem advisable to establish in connection with the retirement of any indebtedness and the maintenance of the housing project and, unless the terms under which the housing project is to be leased provide that the lessee shall maintain the housing project and carry all proper insurance with respect to it, the estimated cost of maintaining the housing project in good repair and keeping it properly insured. B. The determinations and findings of the regional housing authority required to be made in this section shall be set forth in the proceedings under which the proposed indebtedness is to be incurred. C. Prior to the incurrence of any indebtedness, the regional housing authority shall lease or sell the housing project to a lessee or purchaser under an agreement that is conditioned upon completion of the housing project and that provides for payment to the regional housing authority of rentals or payments in an amount that is found, based on the determinations and findings, to: (1) pay the indebtedness incurred to fund the housing project; (2) build up and maintain any reserve deemed by the regional housing authority to be advisable in connection with the housing project; and (3) pay the costs of maintaining the housing project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the housing project.

Legislative History

Laws 1994, ch. 132, § 8; 1995, ch. 191, § 7; 2009, ch. 48, § 7.