The governing body shall adopt a resolution declaring that there is need for an authority in the city, town or county, as the case may be, if it shall find:

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1.  That dwelling accommodations are occupied in such city, town or county, which are unsafe or insanitary; or

2.  That there is a shortage of safe or sanitary dwelling accommodations in such city, town or county available to veterans and other persons of low income at rentals they can afford.