1.    The governing body of the city or county, as appropriate, shall adopt a resolution declaring that there is need for a housing authority in the city or county if the governing body finds that unsanitary or unsafe inhabited dwelling accommodations exist in the city or county, or that there is a shortage of safe or sanitary dwelling accommodations in the city or county available to persons of low or moderate income at rentals they can afford to pay.

2.    In determining whether dwelling accommodations are unsafe or unsanitary, the governing body may take into consideration the degree of overcrowding, the percentage of land coverage, the light, air, space, and access available to the inhabitants of the dwelling accommodations, the size and arrangement of the rooms, the sanitary facilities, and the extent to which conditions which endanger life or property by fire or other causes exist in the buildings.