Any public land suitable for residential use, including single-family, multiple-family, apartment, cluster, and row housing and situated in a locality suitable for the general type of residential construction anticipated by the board of land and natural resources, may be subdivided and improved in accordance with this part; provided that any such lands being subdivided for single-family residence shall be subdivided into lots of not less than five thousand square feet and not more than fifteen thousand square feet. The subdivision shall comply with appropriate county or city and county zoning and subdivision requirements; provided that the board may put in such other improvements as may be necessary or desirable. The lots in the subdivision may be leased by the board under residential leases without public auction to persons qualified thereunder, without public notice or advertising, other than as required by this part.