In the operation or management of housing projects, the authority shall at all times observe the following duties with respect to rentals and tenant selections: (1) it may rent or lease the dwelling accommodations of housing projects only to persons who lack the amount of income necessary (as determined by the housing authority undertaking the project) to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding; and (2) it may rent or lease to a tenant dwelling accommodations only at rentals within the financial reach of that person; provided, that an 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.
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