1. Except as provided in subsection 2, no officer or employee of an agency or community who in the course of his or her duties is required to participate in the formulation of or to approve plans or policies for the redevelopment of a redevelopment area may acquire any interest in any property included within a redevelopment area within the community. If any officer or employee owns, purchases or has or acquires any direct or indirect financial interest in such property, he or she shall immediately make a written disclosure of it to the agency and the legislative body which must be entered on their minutes. Failure to disclose constitutes misconduct in office.
2. Such an officer or employee may purchase or acquire property in the redevelopment area if the officer or employee uses it for his or her residence.