State policy on sale prices and rentals for development projects

It shall be the policy of the State that the board of land and natural resources (acting directly or by an agent or agents) shall manage and operate its development projects in an efficient manner so as to enable it to fix the rentals or prices for lands at the lowest possible rates or sales prices consistent with the purpose of this chapter; and that the board shall not construct or operate any project for profit, or as a source of revenue to the State. To this end, the board shall fix the sales prices for residential lots or rentals for lots or buildings in its projects at no higher rates or prices than it shall find to be necessary to produce revenues which (together with all other available moneys, revenues, income, and receipts of the board from whatever sources derived under the administration of this chapter) will be sufficient: (1) To pay, as the same become due, the principal and interest on the bonds of the board; (2) To meet the cost of, and to provide for, maintaining and operating the projects (including the cost of any insurance) and the administrative expenses of the board; and (3) To create 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 such reserve; provided that the rates or prices shall be at least fifteen per cent below the going market prices of comparable properties determined in accordance with generally accepted appraisal principles.