The director of the department of corrections and rehabilitation may participate in programs in which offenders committed to the legal and physical custody of the department may be gainfully employed or participate in an educational or other rehabilitation program either in or outside facilities under the control of the department. The director may obtain or contract with separate facilities with minimum security for housing offenders granted release privileges. In areas where facilities are not within reasonable proximity of the place of employment or training of an offender so released, the director may arrange for the housing of the offender in local confinement facilities.