In each city and county of this state which has not previously established a housing agency or authority, there is hereby created a local housing agency. Such agency shall not be deemed to be established under the Nebraska Housing Agency Act, nor shall it be authorized to conduct any business or exercise any of its powers, unless and until the governing body of the city or county declares by resolution or ordinance that a need exists for such a local housing agency to function in such city or county and finds that there exists a shortage of decent, safe, and sanitary housing in such city or county that is available and affordable to all residents regardless of income.