Subdivision 1.Priority for housing.

Any residential or transitional housing units that become available through a work project that is part of the program described in section 116L.364 must be allocated in the following order:

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(1) homeless targeted youth who have participated in constructing, rehabilitating, or improving the unit;

(2) homeless families with at least one dependent;

(3) other homeless individuals;

(4) other low income families and individuals; and

(5) families or individuals that receive public assistance and that do not qualify in any other priority group.

Subd. 2.Acquisition of housing units.

The eligible organization receiving a grant under section 116L.362 shall acquire property or buildings for the construction or rehabilitation of residential units at the lowest possible cost. Possible sources of property and funding include the federal Department of Housing and Urban Development, Farmers Home Administration, Minnesota Housing Finance Agency, and the local housing authority.

Subd. 3.Management of residential units.

The program must address how to manage these residential units, including the source of financing for the maintenance costs of the buildings. Any management plan must include the participation of the residents and local established neighborhood groups.