Each community-based organization shall administer any programs through a board of directors. The board is composed as follows:

A. One-third of the members of the board must be elected public officials currently holding office, or their designees, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board of appointive public officials may be counted in meeting the one-third requirement.

B. At least one-third of the members of the board must be persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served.

C. The remainder of the members of the board must be officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community.

D. No board may consist of less than nine members nor more than twenty-one members, and the total membership of each board must be divisible by three. Each member of the board selected to represent a specific geographic area within a community must reside in that area.

Rules governing elections and administrative procedures for selection of boards must be incorporated in the bylaws of the community-based organization and approved by the state administering agency.