I. For the purposes of this subdivision, the term “private nonprofit organization” means a secular or religious organization described in section 501(c) of the Internal Revenue Code of 1986 which is exempt from taxation under subtitle A of such code. Such organization shall also have an accounting system, a voluntary board, and shall practice nondiscrimination in providing assistance.
II. No grant shall be awarded unless the commissioner makes an administrative finding of fact that the grant is primarily for the public benefit. To make a finding that the grant is primarily for public benefit, the commissioner shall find that:

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(a) With respect to grants for a new shelter or additional beds for an existing shelter:
(1) That insufficient shelter facilities exist in the area; and
(2) That the proposal will increase the supply of such facilities.
(b) With respect to grants for operations, that such assistance is needed to maintain essential services or structures under N.H. Rev. Stat. § 126-A:29.
(c) In all cases, that the shelter is for the public use and public benefit.
(d) With respect to grants for supportive and preventive services, that such assistance will enable persons assisted to obtain permanent housing and that such services are for the public use and the public benefit.
III. If the grant is to be made to a religious organization, it must have a primary effect of neither advancing nor inhibiting religion. In awarding grants under this subdivision, the department shall give substantial weight to the performance record and general stability of the grant applicant.