(a)      For each local jurisdiction there is hereby created a public body corporate and politic to be known as the "housing authority" of the local jurisdiction or by such other name as designated in the articles of organization; provided, however, that any authority not activated prior to July 1, 1990 may not transact any business or exercise its powers until or unless:

            (1)      Articles of organization have been recommended in writing by the chief elected official and adopted in accordance with this section by a resolution or ordinance of the legislative body;

            (2)      The articles of organization have been filed with the Secretary of State; and

            (3)      The Secretary of State has issued a certificate of organization to the authority.

      (b)      The articles of organization for any authority:

            (1)      Shall state that there is a need for a housing authority to function in the local jurisdiction;

            (2)      Shall state the name of the authority, which may be "housing authority of (here insert name of local jurisdiction)" or such other name as may be designated, provided that it includes the name of the local jurisdiction;

            (3)      Shall state whether appointments of commissioners to the authority by the chief elected official require or do not require the prior approval of the legislative body;

            (4)      Shall state whether there shall be 5, 7, or 9 commissioners;

            (5)      Shall state whether commissioners shall have 3- or 5-year terms;

            (6)      Shall designate a local government official to serve as the custodian of records of the local government for the purposes of the Housing Authorities Law;

            (7)      Shall state:

                  (i)      Whether or not the authority is empowered to exercise any of the powers set forth in § 1-302 of this title; and

                  (ii)      Any conditions, restrictions, or other limitations on the exercise of such powers;

            (8)      Shall state any limitations on any powers (including elimination of any power) granted to the authority under this title or by any particular title applicable to any authority, provided that:

                  (i)      The powers of the authority shall be sufficient for the authority to comply with:

                        1.      The terms of any existing agreement between the authority and any State or federal governmental entity; and

                        2.      Any applicable federal law or regulations; and

                  (ii)      Any limitations on its powers may not be inconsistent with such agreements, laws, and regulations;

            (9)      May contain specific terms governing the operation of the authority and its housing projects, including but not limited to financial reporting, budgetary, and personnel requirements, provided that such specific terms may not add powers to the authority other than as permitted by paragraph (7) of this subsection and may not be inconsistent with:

                  (i)      The terms of any existing agreement between the authority and any State or federal governmental entity;

                  (ii)      Any applicable federal law or regulations; or

                  (iii)      This article or any other State law or regulations; and

            (10)      May not require the authority directly or indirectly to pay any of its reserves or other funds to the local government.

      (c)      The custodian of records of the local government shall file a certified copy of the written recommendation of the chief elected official and the resolution or ordinance adopting the articles of organization with the Secretary of State.

      (d)      If the Secretary of State finds that the requirements of subsection (a) of this section have been satisfied, the Secretary of State shall endorse the articles "approved" and issue a certificate of approval attached to the endorsed articles and a certificate of organization to the authority.

      (e)      Upon issuance of the certificate of approval, the articles of organization as filed are effective and are conclusively considered to have been lawfully and properly adopted.

      (f)      In any suit, action, or proceeding involving the validity or enforcement of or relating to any contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers upon issuance by the Secretary of State of a certificate of organization. A copy of such certificate of organization shall be admissible in evidence in any suit, action, or proceeding.