CHAPTER 116

AN ACT to amend and reenact §§ 36-5, as amended, and 36-22 of the Code
of Virginia, relating to reports by housing authorities, and rentals and
tenant selection in housing projects.

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Be it enacted by the General Assembly of Virginia: oo,

1. That §§ 36-5, as amended, and 36-22 of the Code of Virginia, be
amended and reenacted as follows:

§ 36-5. At least once a year, an authority shall file with the clerk a
report of its activities for the preceding year, including a financial state-
ment and a statement of the maximum income limits for tenants in its pro-
jects and shall make recommendations with reference to such additional
legislation or other action as it deems necessary in order to carry out the
purposes of this chapter. All records of an authority shall be public
records, and shall be open to inspection by the public during all business
hours under such reasonable regulations as the authority may prescribe;
provided that the term “records” shall include only completed contracts and
transactions of the authority.

§ 36-22. In the operation or management of housing projects an
authority shall at all times observe the following duties with respect to
rentals and tenant selection: (a) it may rent or lease the dwelling ac-
commodations therein only to persons of low income and at rentals within
the financial reach of such persons of low income; (b)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 thereof, without over-
crowding; * (c) it shall not accept any person as a tenant in any housing
project if the person or persons who would occupy the dwelling accom-
modations have an aggregate annual income in excess of five times the an-
nual rental of the quarters to be furnished such person or persons, except
that in the case of families with three or more minor dependents, such ratio
shall not exceed six to one; in computing the rental for this purpose of
selecting tenants, there shall be included in the rental the average annual
cost (as determined by the authority) to occupants of heat, water, elec-
tricity, gas, cooking range and other necessary services or facilities,
whether or not the charge for such services and facilities is in fact included
in the rental; and (d) at least thirty days before establishing or changing
the aggregate annual maximum income limits for the purpose of deter-
mining what persons or families are persons of low income, an authority
shall notify the governing body of the city or county thereof.

Nothing contained in this or the preceding section shall be con-
strued as limiting the power of an authority to vest in an obligee the right,
in the event of a default by the authority, to take possession of a housing
project or cause the appointment of a receiver thereof, free from all the
restrictions imposed by this or the preceding section.