(1) An authority may rent or lease the dwelling accommodations in a housing development only for housing purposes under this chapter.
(2) An authority may rent or lease to a tenant dwelling accommodations consisting only of the number of rooms that it deems necessary to provide safe and sanitary accommodations to the proposed occupants without overcrowding.
(3) The dwellings in any housing development shall be available solely for housing purposes under this chapter. Income limits for occupancy and rents shall be fixed by the authority after taking into consideration:
(a) The family size, composition, age, physical disabilities, and other factors which might affect the rent-paying ability of the family, and (b) The economic factors which affect the finance and solvency of the housing development.
(4) The authority shall issue regulations establishing eligibility requirements, consistent with the purposes and objectives of this section, for admission to and continued occupancy in its developments.
(5) Nothing contained in subsections (1), (2), (3), and (4) of this section shall limit the power of an authority to vest in an obligee of the authority the right, in the event of a default by the authority, to take possession of a housing development or cause the appointment of a receiver thereof, free from all the restrictions imposed by this section.
(6) An authority may participate in private and public developments not falling within the definition of "housing," as set forth in KRS 80.010, except that:
(a) An authority may not purchase, divide, or subdivide land except as provided in this chapter or as set forth in KRS 80.140; and (b) An authority may not develop, improve, construct upon, sell, or resell any real property except as provided in this chapter or as set forth in KRS 80.140.