(1) There is hereby created within the state treasury the Idaho workforce housing fund that will consist of such sums as may be appropriated by the legislature for the purpose of providing financial assistance for workforce housing development.
(2)  The association is hereby appointed as the administrative entity for the Idaho workforce housing fund and will be responsible for creating an allocation plan. Consistent with the allocation plan and availability of funding, the association will request funding from the state treasurer at such times and in such amounts necessary to invest in the development of workforce housing. In creating the allocation plan, the association shall adhere to the following guiding principles:
(a)  Funding allocated from the Idaho workforce housing fund shall be used for the purpose of gap financing.
(b)  Preference shall be given to developments that include a commitment on the part of a local government to match, in whole or in part, the funds allocated by the association. A local match may include but shall not be limited to money, fee waivers, in-kind services, donation of assets, the provision of infrastructure, or a combination thereof.
(c)  The association shall set aside no less than twenty percent (20%) of all moneys allocated to the Idaho workforce housing fund for use in rural areas, as defined in section 67-9003, Idaho Code. If, after a period of two (2) years, any portion of these funds remains unused in rural areas, the balance shall become available to all communities.