(a) Notwithstanding any other provisions in this subchapter, it is provided that in any municipality in this state where on January 10, 1961, a housing authority has not been established or a housing authority is established but the authority has not undertaken an urban renewal project, the municipality may, if the local governing body, by resolution, determines such action to be in the public interest, elect to have the same powers with respect to urban renewal and redevelopment that are conferred on a housing authority by §§ 14-169-601 — 14-169-609, 14-169-701, and 14-169-703 — 14-169-707, to be exercised by an urban renewal agency created by § 14-169-709 or by a housing authority if one is authorized for, or subsequently established in, the municipality.
(b) In the event the local governing body makes such determination, the urban renewal agency or the housing authority, as the case may be, shall be vested with all such urban renewal powers as are conferred by this subchapter.