(a) The contract under which a project authorized by Section 1508.102 is encumbered must provide for the placement of the management and control of the project during the time the project is encumbered in:
(1) the governing body of the municipality; or
(2) another governing body established for that purpose by the governing body of the municipality.
(b) The governing body that manages and controls a project under Subsection (a) may:
(1) adopt rules governing the use and rental of the project and for the payment of rents and concession charges; and
(2) provide penalties for:
(A) the violation of rules adopted under Subdivision (1);
(B) the use of the project without the consent or knowledge of the authorities in charge of the project; or
(C) any interference with, trespass on, or injury to the project or the property on which the project is located.