1. Prior to providing grants or loans to an eligible applicant pursuant to this article, the corporation shall determine that:

1. (a) eligible applicants can demonstrate by their past performance or other objective factors, that they are able to complete a turnkey/enhanced rental project in a timely, efficient and cost effective manner;
2. (b) the turnkey/enhanced rental project will be managed by an eligible owner or other entity who can demonstrate by its past performance or other objective factors that it is capable of effectively managing such a project for the benefit of persons of low income; and
3. (c) the eligible applicant shall not borrow any funds for the project without the prior approval of the corporation.

2. In selecting eligible applicants who will obtain grants or loans pursuant to this article, the corporation shall give preference to proposals for turnkey/enhanced rental projects which:

1. (a) will be located in an area which is experiencing a severe shortage of affordable housing for persons of low income;
2. (b) will be located in a municipality which will utilize steps to simplify or expedite processing, where applicable;
3. (c) will result in the greatest number of quality units and the lowest costs per unit; and
4. (d) will rehabilitate or construct small scale, low rise buildings.