(1) When the governing body of any city or county, as the case may be, has determined by resolution or ordinance as set forth in section 71-1578 that it is expedient to establish a local housing agency:
(a) In the case of cities other than cities of the metropolitan class, the chief elected official of such city shall appoint at least five and not more than seven adult persons;
(b) In the case of cities of the metropolitan class, the chief elected official of such city shall appoint seven adult persons; and
(c) In the case of counties, the county board shall appoint at least five and not more than seven adult persons.
(2) All such persons shall be residents of the area of operation of the agency. If the selection of a resident commissioner is required under section 71-15,104, then at least one such person shall be a resident commissioner selected as provided in such section. Such persons so appointed shall constitute the governing body of the local housing agency and shall be called commissioners.