It is the policy of the state that each public housing authority, city, town or county shall manage and operate its housing projects in an efficient manner to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that a public housing authority, city, town or county shall not construct or operate the project to obtain net revenue unless and to the extent that any net revenues are used only for the provision and support of low income housing and support services. To this end a public housing authority, city, town or county shall fix the rentals for dwellings in its housing projects at no higher rates than it finds necessary to produce revenues which, together with any grants or subsidies from the federal government or other sources for housing projects, will be sufficient:

1. To pay, as they become due, the principal and interest on bonds of the public housing authority, city, town or county issued under the provisions of this article.

2. To meet the cost of and to provide for maintaining and operating the projects and the provision of related support services for the tenants, including the cost of any insurance, and the administrative expenses of the public housing authority, city, town or county incurred in connection with maintaining and operating the projects and support services.

3. To create, during not less than the six years immediately succeeding the issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one year thereafter and to maintain the reserve.