(1)(a) Except as provided in subsection (4) of this section, each housing agency created under the Nebraska Housing Agency Act shall include among the commissioners constituting the governing body of such local housing agency at least one commissioner who shall be known as a resident commissioner.

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(b) For purposes of this section, resident commissioner means a member of the governing board of a local housing agency whose eligibility for membership is based upon such person‘s status as a recipient of direct assistance from the agency except as otherwise provided in this section.

(2) No later than thirty days after any vacancy in the office of a resident commissioner, the local housing agency shall notify any resident advisory board or other resident organization and all adult persons directly assisted by such agency that the position of resident commissioner is open and that if any such person is interested in being considered as a candidate for the position, such person should notify the local housing agency within thirty days after such notice of the person’s willingness to be considered and to serve in the position.

(3) For a housing agency other than a housing agency established by a city of the metropolitan class, the resident commissioner shall be selected, either by an election or by appointment, as follows:

(a) The housing agency may hold an election, allowing each adult direct recipient of its assistance to vote by secret written ballot, at such time and place, or through the mail, as such agency may choose, all to be conducted within thirty days after the receipt of names of candidates as provided in subsection (2) of this section. The candidate receiving the most votes shall serve as resident commissioner;

(b) If the housing agency decides not to hold an election, the names of all persons interested who have notified the housing agency as provided in subsection (2) of this section shall be forwarded to the mayor or to the county board, as the case may be, and the resident commissioner shall be appointed from the list of names, as provided in section 71-1594, subject to confirmation as provided in section 71-1596. In the case of a regional housing agency, the regional board of commissioners shall make such an appointment from among the persons interested in such position; and

(c) If no qualified person has submitted to the local housing agency his or her name as a candidate for the position, then the mayor, county board, or regional housing agency, as the case may be, shall fill the position from among all adult persons receiving direct assistance from the agency subject to confirmation, in the case of cities and counties, pursuant to section 71-1596. If a local housing agency owns fewer than three hundred low-income housing units which, for purposes of this subdivision, does not include units of housing occupied by persons assisted under any rental assistance program and the housing agency has received no notification of interest in serving as a resident commissioner as provided in this section, no resident commissioner shall be required to be selected.

(4)(a) For a housing agency established by a city of the metropolitan class, three resident commissioners shall be selected by appointment. The mayor shall fill the positions from among all adult persons receiving direct assistance from the agency subject to confirmation pursuant to section 71-1596. At least one of the persons appointed pursuant to this subsection shall be a resident of a public housing facility that has at least fifty units. If the local housing agency owns fewer than three hundred low-income housing units which, for purposes of this subdivision, does not include units of housing occupied by persons assisted under any rental assistance program, and if the housing agency has received no notification of interest in serving as a resident commissioner, no resident commissioner shall be required to be selected.

(b) A resident commissioner of the housing authority who is required by this section to be a recipient of direct assistance of the housing agency:

(i) Shall not be construed to have a direct or indirect interest in (A) any housing agency project, (B) any property that is or will be included in any such project, or (C) any housing agency contract for materials or services; and

(ii) Who ceases to meet such requirement may continue to serve until the expiration of his or her current term but shall not be reappointed.