To qualify for assistance pursuant to this chapter, the PACE program shall require all of the following:

1. (a) The interest rate on the PACE bond does not exceed a percentage as determined by the authority to be appropriate.
2. (b) Minimum legal financing structure and credit underwriting criteria as determined by the authority are met.
3. (c) Proceeds of the PACE bonds are used to finance qualified energy and water efficiency, electric vehicle charging infrastructure, and clean energy improvements.
4. (d) The improvement financed is for a residential project of three units or fewer, or a commercial project that costs less than twenty-five thousand dollars ($25,000) in total.