2. Grants provided pursuant to this section shall be used only to fund housing development activities and other general programmatic activities to help ensure a stable system of supportive housing for vulnerable persons in the community. Reinvestment funds for supportive housing for vulnerable populations, which are general fund savings directly related to inpatient hospital and nursing home bed decertification and/or facility closure, shall be allocated annually by the commissioner based upon the following criteria:

1. (a) the efficiency and effectiveness of the use of funding for the development of adequate and accessible housing to support vulnerable persons in the community and to ensure access to supports necessary to maximize expected outcomes; and
2. (b) other relevant factors relating to the maintenance of existing supportive housing and the development of new supportive housing and associated services.

3. The commissioner shall establish an application process by which eligible applicants may apply for a grant under this section. The application shall include:

1. (a) the geographic area in which the housing/services shall be provided;
2. (b) a detailed description of the housing/services to be provided;
3. (c) a plan for the efficient and effective use of funding for the development of adequate and accessible housing to support vulnerable persons in the community;
4. (d) other relevant factors relating to the need for maintenance of existing supportive housing and the development of new supportive housing and associated services; and
5. (e) any other information that the commissioner deems relevant and appropriate.